Agenda packet — Solana Beach City Council, July 15, 2026 (part 2 of 2)

2. The City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2026 and ending June 30, 2027, to pay the costs and expenses of operating, maintaining and servicing the landscaping, public lighting improvements and appurtenant facilities located within public places in the District.

3. The City Council has carefully reviewed and examined the Report in connection with the District, and the levy and collection of assessments. Based upon its review the Report, a copy of which has been presented to the City Council and which has been filed with the City Clerk, the City Council hereby finds and determines that:
a. The territory of land within the District will receive special benefits from the operation, maintenance and servicing of the landscaping, lighting, drainage and appurtenant facilities and improvements related thereto. b. The District includes all of the lands so benefited. c. The amount to be assessed upon the lands within the District, in accordance with the proposed budget for the fiscal year commencing July 1, 2026 and ending June 30, 2027, is apportioned by a formula and method that fairly distributes the net amount among all eligible parcels in proportion to the special benefits, to be received by each parcel from the improvements and services, and the assessments are levied without regard to property valuation.

4. The Report and FY 2026/27 assessments, as presented to the City Council and on file in the office of the City Clerk, are hereby confirmed as filed.

5. The City Council hereby orders the proposed improvements to be made; the improvements are briefly described as the operation, administration, maintenance and servicing of all public landscaping, lighting improvements and appurtenant facilities and expenses associated with the District, and that will be maintained by the City of Solana Beach or their designee and all such maintenance, operation and servicing of the landscaping, lighting and all appurtenant facilities shall be performed pursuant to the Act. A more complete description of the improvements is detailed in the Report and by reference this document is made part of this resolution.

6. The San Diego County Auditor shall place on the County Assessment Roll, opposite each parcel of land, the amount of levy so apportioned by the method of apportionment formula, outlined in the Report and such levies shall be collected Item K.1
Resolution 2026-084
Assess for Lighting District for FY 2026/27

Page 3 of 4 ends

at the same time and in the same manner as County taxes are collected pursuant to Chapter 4, Article 2, Section 22646 of the Act. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the City Treasurer.

7. The City Treasurer, shall deposit all money from the assessments collected by the County for the District into a fund for the Solana Beach Lighting District, and such money shall be expended to pay the costs and expenses of operating, maintaining and servicing the improvements and appurtenant facilities related thereto described above.

8. The adoption of this resolution constitutes the authorization of the District levy for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027.

9. The City Clerk or Clerk's designee is hereby authorized and directed to file the levy with the San Diego County Auditor subsequent to the adoption of this resolution.

PASSED AND ADOPTED this 15th day of July, 2026, at a regularly scheduled meeting of the by the City Council of the City of Solana Beach 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 Item K.1
City of Solana Beach
Lighting Maintenance District
Engineer’s Report
Fiscal Year 2026/27
May 18, 2026
ATTACHMENT 3
Item K.1

TABLE OF CONTENTS
Introduction................................................................................................................................................... 3 General Description of The District ............................................................................................................... 3 Designation of Zones..................................................................................................................................... 4 District Improvement.................................................................................................................................... 4 Method of Apportionment............................................................................................................................ 6 District Financing........................................................................................................................................... 6 Assessment Roll............................................................................................................................................. 6 Calculation of Assessment Fees..................................................................................................................... 7 Exhibit 1 - Streetlight Zone Map
Exhibit 2 - Derivation of Streetlight Benefit Units
Exhibit 3 - Budget 2026/27
Item K.1
City of Solana Beach Lighting Maintenance District Page 1 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
Introduction
The City of Solana Beach (“City”) Lighting Maintenance District (“District”) was formed to provide funding for operation, maintenance and servicing of all lights within the City, owned both by the City of Solana Beach and San Diego Gas and Electric as shown on the City’s Streetlight Master Plan. The City Council, pursuant to the provisions of the “Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Street and Highway Code of California” (Act), desires to levy and collect annual assessment against lots and parcels within the District beginning in the fiscal year beginning July 1, 2026, and ending June 30, 2027. The collected assessments would pay for the operation, maintenance and servicing of the public lighting improvements within the City. The proposed assessments are based on the City’s estimate for the cost for Fiscal Year (“FY”) 2026/2027 to maintain the District that provides a special benefit to properties assessed within the District. The assessment rates set for FY 2026/27, as set forth in this Engineer’s Report (“Report”), do not exceed the maximum rates established at the time the District was formed, therefore, the City and the District are not required to go through property owner ballot procedure to establish the 2026/27 assessment rates. This report describes the District boundaries and the proposed operation, maintenance and services to be assessed to the property owners located within the District. For this Report, each lot or parcel to be assessed refers to an individual property and is assigned its own Assessment Parcel Number (“APN”) by the San Diego County (“County”) Assessor’s Office as shown on the latest equalization roll of the assessor. Following the conclusion of the Public Hearing, the City Council will confirm the Report as submitted or amended and may order the collection of the assessments for FY 2026/2027.

General Description of the District
The boundaries of the District are defined as being contiguous with the boundaries of the City of Solana Beach. The properties within the District include single-family residential, multi-family residential, timeshare, multiuse, commercial and industrial parcels.

Section 22573, Landscape and Lighting Act of 1972 (“1972 Act”), requires assessments to be levied according to benefit rather than according to assessed value. This section of the 1972 Act states:
"The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The 1972 Act also provides for the classification of various areas within an assessment district into different zones where, "...by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements. A zone shall consist of all territory, which will receive substantially the Item K.1
City of Solana Beach Lighting Maintenance District Page 2 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
same degree of benefit from the improvements. An assessment district may consist of contiguous or non-contiguous areas."
Properties owned by public agencies, such as a city, county, state, or the federal government, are not assessable without the approval of the particular agency. For this reason, they are traditionally not assessed.

Designation of Zones
The District consists of two zones in the City of Solana Beach; Zone “A” and Zone “B”.

Properties within Zone “A”, which represent the majority of the parcels in the City, benefit from streetlights on six significant circulation element streets as well as streetlights on their local streets. Properties within Zone “B”, also known as “Dark Sky Zone”, do not have streetlights on their local streets. These properties benefit only from streetlights on circulation element streets and do not benefit from streetlights on local streets. A map showing the boundaries of the District and the zones is on file in the office of the City Engineer and is also attached herein as Exhibit 1.

District Improvements
The public lighting improvements to be maintained and serviced include but are not limited to the following:
 Maintenance, repair and replacement of public light poles and fixtures, including changing light bulbs, painting, photoelectric cell repair or replacement, repairing damages caused by automobile accidents and vandalism, and repairing normal deterioration caused by time and weather.
 Electrical conduit repair and replacement due to damage by vandalism and normal deterioration.
 Service-call maintenance repair and replacement including painting, replacing worn out electrical components and repairing damage due to accidents, vandalism, and normal deterioration.
 Payment of the electrical bill for the existing street lighting system.  Responding to constituent and business inquiries and complaints regarding the public lighting.

Maintenance
The City provides services and furnishes materials for the ordinary and usual maintenance, operation and servicing of public lighting improvements facilities and appurtenant facilities.

This includes inspecting lights during daylight as well as evening hours for condition assessment and performing repair, removal or replacement of all or part of any of the streetlights found to be inoperable in order to provide for the health welfare and safety of the residents in the district.

Item K.1
City of Solana Beach Lighting Maintenance District Page 3 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
Servicing
The City workforce along with assistance from private contractors provide all labor, materials, equipment and utilities necessary to maintain and operate the public lighting improvements or appurtenant facilities in order to provide adequate illumination.

City’s Streetlight System
The City’s streetlight system consists of streetlights which are owned by San Diego Gas and Electric (SDG&E) and streetlights that are owned by the City of Solana Beach. A listing (printout) showing the type, size, location and ownership of the specific streetlights in the City is on file in the Office of the City Engineer. There are currently 801 streetlights in the District of which 149 are located on circulation element streets such as Highway 101, Lomas Santa Fe Drive, Via De La Valle, Cedros Avenue, San Andres Drive, Highland Avenue and Stevens Avenue. The remaining 652 streetlights are located on local streets.

Approximately 274 streetlights are owned and maintained by SDG&E and the remaining 527 streetlights are owned and maintained by the City of Solana Beach. The City pays SDG&E for the use of their streetlights. For the purpose of this report, all lights have been analyzed regardless of ownership. Additionally, there are 247 bollard lights and 16 pedestrian pole lights on the Coastal Rail Trail that are included in the District.

Streetlight Retrofit
In April 2012, the City entered into an agreement with Chevron Energy Solution (Chevron ES) for a series of energy efficient projects, which included retrofitting all City-owned streetlights to the latest LED technology. This project replaced approximately two-thirds of the streetlights throughout the City, which included all streetlights owned and operated by the City. The remaining one-third of the streetlights were not retrofitted because they are owned and operated by SDG&E. Because of this partial ownership arrangement, streetlights in some neighborhoods remained unchanged.

Capital Improvement Projects
Since the City-owned streetlights were converted to LED fixtures in 2012, there has not been a need for a capital improvement project for the streetlights this past year.

Method of Apportionment
The 1972 Act requires that a parcel’s assessment may not exceed the reasonable cost for the proportional benefit conferred to that parcel. To establish the benefit to the individual lots or parcels within the district, an Equivalent Benefit Unit (“EBU”) system based on land use is used along with special consideration based on City’s “Dark Sky Zone”. Each parcel of land in the District was determined to have a specific land use. Each land use type was assigned a land use factor determined by trip generation rates developed by San Diego Association of Governments (SANDAG). If a land use category was not included in the SANDAG study, the Engineering Department made a determination as to its probable trip Item K.1
City of Solana Beach Lighting Maintenance District Page 4 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
generation compared to that of a single family residential and assigned a land use factor accordingly. Single-family residential units were assigned a land use factor of 1.0 regardless of its size. The theory is that all single-family residential units, regardless of parcel or house size, generate approximately the same number of trips and therefore receive the same benefit from the use of streets and their appurtenances such as streetlights. Under this method, vacant lots are assigned an EBU of zero. Exhibit 2 provides the EBU determination for all land uses within the City.

District Financing
The District will be financed by assessing a benefit assessment and by using the District’s share of 1.0 percent ad valorem tax revenues. The amount to be generated from the benefit assessment is $8.80 per benefit unit in Zone “A” and $1.62 per benefit unit in Zone “B”. As mentioned above, the total amount of revenue to be generated by assessment was calculated from a methodology, which identifies two benefit zones within the District. This methodology assumes that circulation element streetlights provide City-wide benefit and therefore properties located in Zone “B”, the Dark Sky Zone properties, are assessed for this portion of the District’s expenses only. Properties located within Zone “A” are assessed for expenses associated with the streetlights located on the circulation element streets as well as those on local streets. Both the circulation element streetlight benefit and local streetlight benefit are allotted in proportion to the Average Daily Traffic (ADT) generated by properties within the District to establish equivalent benefit charge per property. These are estimates only because the County Assessor’s information will not be available until August 2025. The City does not assess governmental agencies owning properties within the District. See Exhibit 3 for the proposed District budget.

Assessment Roll
Parcel identification, for each lot or parcel within the District shall be the parcel as shown on the County Assessor’s map for the year in which this Report is prepared. A listing of parcels assessed within the District, along with the proposed assessment amounts, has been submitted to the City Clerk, under a separate cover, and by reference is made part of this Report. Said listing of parcels to be assessed shall be submitted to the County Auditor/Controller and included on the property tax roll for each parcel in FY 2026/27. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate approved in this Report.

Therefore, if a single parcel has changed to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

Item K.1
City of Solana Beach Lighting Maintenance District Page 5 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
Calculation of Assessment Fees
Following is a calculation of assessment fees for the Solana Beach Lighting District. There are two zones in this lighting district; Zone “A” and Zone “B”.

Total streetlights on six circulation element streets 149 Total streetlights on local streets 652
Total streetlights 801
Bollard lights on Coastal Rail Trail 247
Pedestrian pole lights on Coastal Rail Trail 16
Total Benefit Units in Zone “A” 8,456
Total Benefit Units in Zone “B” 478
Assessment per Benefit Unit in Zone “A” $8.80
Assessment per Benefit Unit in Zone “B” $1.62
Total Assessment for Zone “A” $74,413
Total Assessment for Zone “B” $774
Total Assessment for the District $75,187
Item K.1
City of Solana Beach Lighting Maintenance District Page 6 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
EXHIBIT 1

STREETLIGHT ZONE MAP
Item K.1
City of Solana Beach Lighting Maintenance District Page 7 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
EXHIBIT 2

DERIVATION OF STREETLIGHT BENEFIT UNITS
Traffic generation rates are derived from a report issued by the San Diego Association of Governments (SANDAG) dated April 2002. The information in the report is based on the San Diego Traffic Generators manual. Land uses are defined by the County Assessor. Using traffic generated by single family dwellings as 10 per dwelling unit (d.u.) or 40 per acre, the derivation of Benefit Units from land use is as follows:

LAND USE BENEFIT UNITS HOW DERIVED
Vacant Land 0.0 Generateslittle or no traffic.

Assigned a value of 0.0
Residential 1.0/d.u. 10 trips/d.u.
10 trips/d.u.

Time Shares .02/Time Share 0.2 trips/time share
10 trips/d.u.

Mobilehome/Trailer Parks 0.5/Space 5 trips/d.u. orspace 10 trips/d.u.
1-3 Story Misc. Stores 10.0/Acre 400 trips/acre
40 trips/acre
4+ Story Offices/Stores 15.0/Acre 600 trips/acre
40 trips/acre
Regional Shopping Center Medical,
Dental, Animal Hospital

12.5/Acre 500 trips/acre
40 trips/acre
Community Shopping Center 17.5/Acre 700 trips/acre
40 trips/acre
Neighborhood Shopping Center 30.0/Acre 1200 trips/acre
40 trips/acre
Item K.1
City of Solana Beach Lighting Maintenance District Page 8 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
Hotel, Motel 5.0/Acre 200 trips/acre
40 trips/acre
Convalescent Hospital, Rest Home 1.0/Acre 40 trips/acre 40 trips/acre
Office Condominiums 0.5/Condo 20 trips/condo
10 trips/d.u.

Parking lot, Garage, Used Cars, Auto
Sales/Service, Service Station

7.5/Acre 300 trips/acre
40 trips/acre
Bowling Alley 7.5/Acre 300 trips/acre
40 trips/acre
Item K.1
City of Solana Beach Lighting Maintenance District Page 9 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
EXHIBIT 3

STREETLIGHT DISTRICT PROPOSED BUDGET FISCAL YEAR
2026/27
Amended Budget
2025/26
Adopted Budget
2026/27
COSTS
Energy $120,782 $125,000
Maintenance 451,993 429,309
Administration 150,594 153,931
Capital Outlay 0 0
Debt Service 70,375 70,375
Contingency Reserve 4,033,607 4,218,300
TOTAL COSTS $4,827,351 $4,996,915

FUNDING
Property Taxes $700,380 $728,335
Benefit Fees 76,500 76,500
Interest 95,135 97,989
Intergovernmental 13,904 14,225
Fund Balance 3,941,432 4,079,866
TOTAL RESOURCES $4,827,351 $4,996,915
Item K.1
COUNCIL ACTION:
_______________________________________________________________________ AGENDA ITEM # K.2.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: July 15, 2026
ORIGINATING DEPT: Engineering Department - Orelia DeBraal, Public Works Director
SUBJECT: Public Hearing to Confirm Fiscal Year 2026/27 Levies for the Coastal Rail Trail Maintenance District for FY 2026/27 BACKGROUND:

The City of Solana Beach Coastal Rail Trail Maintenance District provides services for landscaping, lighting, and trail maintenance for the Coastal Rail Trail, funding these services through a combination of City funding and benefit assessments levied on properties citywide. The District was formed under the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (1972 Act).

The 1972 Act requires that assessments be calculated in proportion to the benefit each parcel receives from District improvements. In order to collect assessments through the tax rolls, the City is required to prepare an Engineer's Report that identifies the cost of maintaining District improvements, revenues, and the proposed assessment rate for each property in the District. The City Council is required to hold a public hearing to give property owners an opportunity to review and comment on the proposed rates. Following the public hearing, the City Council will confirm the Engineer's Report and authorize assessments to be submitted to the County for collection on property tax bills.

On June 24th, 2026, the City Council adopted resolutions initiating the proceedings for the annual levy of assessments for the District; approving the preliminary Engineer’s Report; and setting a time and place for the public hearing.

The proposed FY 2026/27 assessment includes a 2.00% increase based on the approved assessment formula established at the time the District was formed, in accordance with Articles XIII A-D of the California Constitution (Proposition 218).

This item is presented to the City Council to conduct the Public Hearing and to consider Resolution 2026-081 (Attachment 1) accepting the Final CRT Maintenance District Engineer’s Report and Resolution 2026-082 (Attachment 2) ordering the levy and collection of annual assessments for the District for FY 2026/27.

Item K.2
July15, 2026
CRT District Levies-Public Hearing

Page 2 of 4 ends

DISCUSSION:

In 2006, City Council adopted Resolution 2006-019 approving the formation of the Coastal Rail Trail (CRT) Maintenance District (District) under the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (1972 Act). The District was formed to provide dedicated funding for landscaping and maintenance services for the City's 1.7-mile portion of the Coastal Rail Trail, which extends from Via de la Valle at the south City boundary north to Ocean Street near the north City boundary.

The District is funded through a combination of property owner assessments and City funding, which offsets the general benefit portion of District costs that cannot be assessed to individual properties. In addition to ongoing services, the District budget includes capital reserves for the future replacement of landscaping, irrigation, and hardscape features, along with an operating reserve of approximately 10% of maintenance costs.

When the District was formed, property owners approved the assessment formula and maximum assessment amount in the Engineering Report. The approved formula allows for an annual adjustment to the maximum assessment rate based on the lesser of the San Diego CPI-U or 2.00%, without requiring a new property owner ballot procedure. The methodology for calculating the assessment amount for each parcel is based on land use and proximity to the CRT. A single-family residential property is assigned one Equivalent Benefit Unit (EBU) as the base unit.

The CPI-U for 2025 was 3.79% and staff is proposing a 2.00% increase in the per EBU amount from $8.52 to $8.68. Staff reviewed the FY 2026/27 budget and determined that the proposed increase is necessary to fund the operation and maintenance of CRT improvements for FY 2026/27. The following table shows the proposed assessment for a single-family residential parcel in each zone. Proposed assessment amounts for all land uses are included in the Engineer's Report (Attachment 4).

Zone Description
Proximity
Factor
FY 2025/26
Assessment
FY 2026/27
Assessment
2% Increase
1 Adjacent to or within a few
blocks of the CRT 3.0 $25.56 $26.04
2 Close to but not adjacent to the
CRT 2.0 $17.04 $17.36
3 East of Interstate 5, farthest
from the CRT 0.5 $4.26 $4.34
A public hearing is required to receive public testimony and confirm the Engineer's Report before assessments can be submitted to the County Auditor. City staff has notified the property owners by publishing a notice of today’s public hearing in the San Diego UnionTribune. Upon Council approval, staff will submit information to the County by August 10th to collect assessments through the tax rolls.

Item K.2
July15, 2026
CRT District Levies-Public Hearing

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CEQA COMPLIANCE STATEMENT:

Section 15301 of the State CEQA Guidelines (Class 1 — Existing Facilities) categorically exempts the "operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features involving negligible or no expansion of existing or former use." The approval of annual assessments for ongoing operation and maintenance of existing public landscaping and lighting improvements will result in negligible or no expansion of existing use.

FISCAL IMPACT:

The FY 2026/27 Approved Expenditure Budget for the Coastal Rail Trail Maintenance District is $161,743. If the proposed 2% increase is approved, the District will receive $87,417 in assessment revenue. The remaining costs of $74,326 will be funded by an interfund transfer of Measure S in the amount of $72,558 and the remaining $1,768 is expected to come from Investment Interest revenue.

Due to the timing of when assessment revenues are received from the County, it is recommended that District Operating Reserves are equal to 50% of the annual assessment revenue to ensure adequate cashflow. The recommended Operational Reserve is $43,709 and available reserves on June 30, 2026, are projected to be $40,249. To ensure adequate cash flow, the amount of the interfund transfer from Measure S can be increased by the difference of $3,460.

WORK PLAN:

While the levy of assessments is not explicitly identified in the current Work Plan, this action supports General Governance and Fiscal Responsibility by providing revenue for the annual operational budget to ensure proper operation, rehabilitation, and maintenance of the Coastal Rail Trail. Proactive and routine maintenance of landscaping, hardscape, and lighting supports the City's broader goal of maintaining reliable, safe, and resilient public infrastructure.

OPTIONS:
• Approve staff recommendation.
• Provide alternative directions.

CITY STAFF RECOMMENDATION:

Staff recommends that the City Council:

1. Adopt Resolution 2026-081, approving the Engineer's Report regarding the Coastal Rail Trail Maintenance District.

Item K.2
July15, 2026
CRT District Levies-Public Hearing

Page 4 of 4 ends

2. Adopt Resolution 2026-082, ordering the levy and collection of the annual assessments regarding the Coastal Rail Trail Maintenance District for Fiscal Year 2026/27.
_________________________
Alyssa Muto, City Manager
Attachments:

1. Resolution 2026-081

2. Resolution 2026-082

3. CRT Maintenance District Engineer’s Report for FY 2026/27 Item K.2
ATTACHMENT 1
RESOLUTION 2026-081

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOLANA BEACH, CALIFORNIA, APPROVING THE FISCAL
YEAR 2026/27 ENGINEER'S REPORT REGARDING THE

COASTAL RAIL TRAIL MAINTENANCE DISTRICT
WHEREAS, the City Council, pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (the “Act"), adopted Resolution 2026-073 on June 24, 2026 ordering the Assessment Engineer, Koppel & Gruber Public Finance, to prepare and file the Fiscal Year (FY) 2026/27 Engineer's Report for the City of Solana Beach Coastal Rail Trail Maintenance District (District); and
WHEREAS, the Assessment Engineer has prepared and filed with the City Clerk of the City of Solana Beach, California, and the City Clerk has presented to the City Council such report entitled City of Solana Beach Coastal Rail Trail Maintenance District Engineer's Report FY 2026/27 (“Report”) as required by the Act; and WHEREAS, the City Council has carefully examined and reviewed the Report as presented, considered all oral and written comments presented with respect to the District and Report at a noticed Public Hearing and has discussed any necessary or desired modifications to the Report, and is satisfied that the levy for each parcel has been calculated in accordance with the special benefits received from the operation, maintenance and services performed, as set forth in the Report.

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

1. The above recitals are true and correct.

2. The Report as presented or as modified, contains the following:
a. Description of Improvements.
b. Diagram of the District.
c. Method of Apportionment that details the method of calculating each parcel's proportional special benefits and annual assessment.

Item K.2
Resolution 2026-081
Approve Engineer’s Report for CRT Assessment District for FY 2026/27

Page 2 of 3 ends

d. The FY 2026/27 Assessment based upon the Method of Apportionment as approved by the property owners pursuant to the provision of the California Constitution Article XIIID Section 4.
e. An Assessment Range Formula for calculating annual inflationary adjustments to the initial “Maximum Assessment” (Adjusted Maximum Levy per benefit unit), also approved by the property owners. f. The FY 2026/27 Annual Budget (Costs and Expenses) and the resulting FY 2026/27 assessment (levy per benefit unit) for the fiscal year. g. The District Roll containing the levy for each Assessor's Parcel Number within the District for FY 2026/27.

3. The City Clerk is hereby directed to enter on the minutes of the City Council any and all modifications to the Report determined and approved by the City Council, and all such changes and/or modifications by reference are to be incorporated into the Report.

4. The City Council is satisfied with the Report as presented or modified, each and all of the budget items and documents as set forth therein, and is satisfied that the FY 2026/27 annual assessments contained therein are consistent with the assessments approved by the property owners and spread in accordance with the special benefits received from the improvements pursuant to the provisions of the California Constitution Article XIIID.

5. The Report is hereby approved as submitted or modified and ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

6. The City Clerk shall certify to the passage and adoption of this resolution, and the minutes of this meeting shall so reflect the presentation and approval of the Report as submitted or modified.

PASSED AND ADOPTED this 15th day of July, 2026, at a regularly scheduled meeting of the by the City council of the City of Solana Beach by the following vote:

AYES: Councilmembers -
NOES: Councilmembers -
ABSENT: Councilmembers -
ABSTAIN: Councilmembers -
Item K.2
Resolution 2026-081
Approve Engineer’s Report for CRT Assessment District for FY 2026/27

Page 3 of 3 ends

_______________________ _____
LESA HEEBNER, Mayor
APPROVED AS TO FORM: ATTEST:
______________________________ ________________________________ JOHANNA N. CANLAS, City Attorney ANGELA IVEY, City Clerk Item K.2
ATTACHMENT 2
RESOLUTION 2026-082

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOLANA BEACH, CALIFORNIA, ORDERING THE LEVY AND

COLLECTION OF ANNUAL ASSESSMENTS REGARDING THE

COASTAL RAIL TRAIL MAINTENANCE DISTRICT FOR FISCAL
YEAR 2026/27
WHEREAS, the City Council has, by previous resolutions, initiated proceedings to form and declare its intention to levy and collect annual assessments against parcels of land within the City of Solana Beach Coastal Rail Trail Maintenance District (“District”), for the Fiscal Year (FY) commencing July 1, 2026 and ending June 30, 2027 pursuant to the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (Act) to pay the costs and expenses of operating, maintaining and servicing the improvements and appurtenant facilities related thereto; and
WHEREAS, Koppel & Gruber Public Finance, the Assessment Engineer selected by the City Council, has prepared and filed with the City Clerk, and the City Clerk has presented to the City Council the Engineer’s Report entitled City of Solana Beach Coastal Rail Trail Maintenance District Engineer's Report FY 2026/27 (“Report”) in connection with the proposed levy and collection of special benefit assessment upon eligible parcels of land within the District, and the City Council did by previous resolution approve such Report; and
WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027, to pay the costs and expenses of operating, maintaining and servicing the improvements and appurtenant facilities related thereto; and WHEREAS, the City Council, following notice duly given, has held a full and fair Public Hearing on June 18, 2025, regarding the levy and collection of assessments as described in the Report prepared in connection therewith, and considered all oral and written statements, protests and communications made or filed by interested persons regarding these matters, pursuant to the Act and in accordance with the provisions of the California Constitution Article XIIID.

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

1. The above recitals are true and correct.

2. Following notice duly given, the City Council has held a full and fair public hearing regarding the levy and collection of the assessments, the Report prepared in connection therewith, and considered all oral and written statements, Item K.2
Resolution 2026-082
Assessment for CRT District for FY 2026/27

Page 2 of 4 ends

protests and communications made or filed by interested persons regarding these matters.

3. The City Council desires to levy and collect assessments against parcels of land within the District for the fiscal year commencing July 1, 2026 and ending June 30, 2027, to pay the costs and expenses of operating, maintaining and servicing the landscaping, public lighting improvements and appurtenant facilities located within public places in the District.

4. The City Council has carefully reviewed and examined the Report in connection with the District, and the levy and collection of assessments. Based upon its review of the Report, a copy of which has been presented to the City Council, and which has been filed with the City Clerk, hereby finds that the City Council determines that:
a. The territory of land within the District will receive special benefits from the operation, maintenance and servicing of the landscaping, lighting, drainage and appurtenant facilities and improvements related thereto. b. The District includes all of the lands so benefited; and c. The amount to be assessed upon the lands within the District, in accordance with the proposed budget for the fiscal year commencing July 1, 2026 and ending June 30, 2027, is apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the special benefits, to be received by each parcel from the improvements and services, and is satisfied that the assessments are levied, without regard to property valuation.

5. The Report and FY 2026/27 assessments, as presented to the City Council and on file in the office of the City Clerk, are hereby confirmed as filed.

6. The City Council hereby orders the proposed improvements to be made; the improvements are briefly described as the operation, administration, maintenance and servicing of all public landscaping, lighting improvements and appurtenant facilities and expenses associated with the District, and that will be maintained by the City of Solana Beach or their designee and all such maintenance, operation and servicing of the landscaping, lighting and all appurtenant facilities shall be performed pursuant to the Act. A more complete description of the improvements is detailed in the Report and by reference this document is made part of this resolution.

Item K.2
Resolution 2026-082
Assessment for CRT District for FY 2026/27

Page 3 of 4 ends

7. The San Diego County Auditor shall place on the County Assessment Roll, opposite each parcel of land, the amount of levy so apportioned by the method of apportionment formula, outlined in the Report and such levies shall be collected at the same time and in the same manner as County taxes are collected pursuant to Chapter 4, Article 2, Section 22646 of the Act. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the City Treasurer.

8. The City Treasurer shall deposit all money from the assessments collected by the County for the District into a fund for the Coastal Rail Trail Maintenance District, and such money shall be expended to pay the costs and expenses of operating, maintaining and servicing the improvements and appurtenant facilities related thereto described above.

9. The adoption of this resolution constitutes the authorization of the District levy for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027.

10.The City Clerk or Clerk's designee is hereby authorized and directed to file the levy with the San Diego County Auditor subsequent to the adoption of this resolution.

PASSED AND ADOPTED this 15th day of July, 2026, at a regularly scheduled meeting of the by the City Council of the City of Solana Beach 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 Item K.2
City Of Solana Beach
Coastal Rail Trail Maintenance District
Engineer’s Report
Fiscal Year 2026/2027
Date May 18, 2026
ATTACHMENT 3
Item K.2

TABLE OF CONTENTS
SECTION I. OVERVIEW ..............................................................................................1 SECTION II. PLANS AND SPECIFICATION..............................................................3 SECTION III. PROPOSED FISCAL YEAR 2026/2027 BUDGET ..................................5 A. ESTIMATED FISCAL YEAR 2026/2027 BUDGET ...............................5 B. DESCRIPTION OF BUDGET ITEMS...................................................7 SECTION IV. METHOD OF APPORTIONMENT .......................................................8 A. GENERAL ................................................................................................8 B. GENERAL BENEFIT ANALYSIS ..........................................................8 C. SPECIAL BENEFIT ANALYSIS .............................................................9 D. ASSESSMENT METHODOLOGY ....................................................... 10 E. RATES .....................................................................................................12 F. ASSESSMENT RANGE FORMULA.....................................................13 SECTION V. ASSESSMENT ROLL.............................................................................14 SECTION VI. ASSESSEMENT DIAGRAM ...................................................................15 Item K.2
City of Solana Beach Coastal Rail Trail Maintenance District Page 1 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
SECTION I. OVERVIEW
A. INTRODUCTION AND BACKGROUND
The Coastal Rail Trail (the “CRT”) is a project sponsored by the cities of Oceanside, Carlsbad, Encinitas, Solana Beach and San Diego for a multi-use pathway (bicycle facilities and pedestrian) that will ultimately extend from the San Luis Rey River in Oceanside to the Santa Fe Depot in San Diego. Each of the sponsoring cities has agreed to construct and maintain the portion of the trail that is located within their jurisdiction. The City of Solana Beach (the “City”) began construction on their portion of the CRT (“City CRT”) in August 2003 by obtaining outside grants and the City CRT was substantially completed in November of 2004.

The City CRT consists of a Class I bicycle trail that is approximately 1.7 miles long. The Solana Beach portion of the CRT starts at the south City boundary at Via de la Valle and extends north to Ocean Street near the north City boundary.

The City of Solana Beach Coastal Rail Trail Maintenance District (“District”) was formed in January 2006 in order to provide funding for the maintenance of certain public improvements including but not limited to the operation, maintenance and servicing of landscaping and public lighting improvements along the City CRT. This report constitutes the Fiscal Year 2026/2027 Engineer’s Report for the District.

The City Council pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (“Act”) and in compliance with the substantive and procedural requirements of the California State Constitution Article XIIIC and XIIID (“Proposition 218”) and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) desires to levy and collect annual assessments against lots and parcels within the District beginning in the fiscal year commencing July 1, 2026 and ending June 30, 2027 to pay for the operation, maintenance and servicing of landscaping and public lighting improvements along the City CRT. The proposed assessments are based on the City’s estimate of the costs for Fiscal Year 2026/2027 to maintain the City CRT improvements that provide a special benefit to properties assessed within the District. The assessment rates set for Fiscal Year 2026/2027 as set forth in this Engineer’s Report, do not exceed the maximum rates established at the time the District was formed, therefore, the City and the District are not required to go through a property owner ballot procedure in order to establish the 2026/2027 assessment rates.

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City of Solana Beach Coastal Rail Trail Maintenance District Page 2 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
B. CONTENTS OF ENGINEER’S REPORT
This Report describes the District boundaries and the proposed improvements to be assessed to the property owners located within the District. The Report is made up of the following sections.

SECTION I. OVERVIEW – Provides a general introduction into the Report and provides background on the District and the assessment.

SECTION II. PLANS AND SPECIFICATIONS – Contains a general description of the improvements that are maintained and serviced by the District.

SECTION III. PROPOSED FISCAL YEAR 2026/2027 BUDGET – Identifies the cost of the maintenance and services to be provided by the District including incidental costs and expenses.

SECTION IV. METHOD OF APPORTIONMENT – Describes the basis in which costs have been apportioned to lots or parcels within the District, in proportion to the special benefit received by each lot or parcel.

SECTION V. ASSESSMENT ROLL – The assessment roll identifies the maximum assessment to be levied to each lot or parcel within the District.

SECTION VI. ASSESSMENT DIAGRAM – Displays a diagram of the District showing the boundaries of the District.

For this Report, each lot or parcel to be assessed, refers to an individual property assigned its own Assessment Parcel Number (“APN”) by the San Diego County (“County”) Assessor’s Office as shown on the last equalized roll of the assessor.

Following the conclusion of the Public Hearing, the City Council will confirm the Report as submitted or amended and may order the collection of assessments for Fiscal Year 2026/2027.

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City of Solana Beach Coastal Rail Trail Maintenance District Page 3 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
SECTION II. PLANS AND SPECIFICATION
A. GENERAL DESCRIPTION OF THE DISTRICT
The boundaries of the District are defined as being contiguous with the boundaries of the City of Solana Beach. Solana Beach is located approximately thirty miles north of the City of San Diego in the north coastal area of the County. The City is bordered by the Pacific Ocean to the west, the City of Encinitas to the north, the City of Del Mar to the south and the County of San Diego to the east.

The properties within the District include single-family residential, multi-family residential, timeshare, commercial, and industrial parcels. Each parcel has been categorized into three zones based upon their general proximity to the City CRT. Please refer to Section IV D of the Report for a further explanation on the zones included within the District.

B. DESCRIPTION OF SERVICES AND IMPROVEMENTS TO BE MAINTAINED The District provides a funding mechanism for the ongoing maintenance, operation and servicing of landscaping and public lighting improvements that were installed as part of the construction of the City CRT. These improvements may include, but are not limited to, all materials, equipment, utilities, labor, and appurtenant facilities related to those improvements.

The improvements constructed as part of the project that are to be maintained and serviced by the District relate to landscaping and public lighting improvements, and are generally described as follows:
 Concrete and decomposed granite trails including landscaping, irrigation, drainage, grading, lighting, and hardscape features.
 Concrete paths, trees, plantings, lighting, irrigation, conduit, infrastructure, earthwork, trash receptacles, fencing, node structures (bus shelters, art amenities, garden nodes), drinking fountains, signage, and observation deck.
 Open space and irrigated and planted slopes located along the Trail.  Public lighting facilities within and adjacent to the City CRT.

Maintenance services will be provided by City personnel and/or private contractors. The proposed improvements to be maintained and services are generally described as follows:

Item K.2
City of Solana Beach Coastal Rail Trail Maintenance District Page 4 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026

LANDSCAPING AND APPURTENANT IMPROVEMENTS
The landscaping improvements and services to be maintained by the District include but are not limited to landscaping, planting, ground cover, shrubbery, turf, trees, irrigation and drainage systems, hardscape, fixtures, sidewalks, fencing and other appurtenant items located along and adjacent to the City CRT.

PUBLIC LIGHTING AND APPURTENANT IMPROVEMENTS
The public lighting improvements to be maintained and serviced include but are not limited to the following, which provide public lighting directly or indirectly to the City CRT or to other public areas associated with or necessary for use of the trail:
 Maintenance, repair and replacement of public light poles and fixtures, including changing light bulbs, painting, photoelectric cell repair or replacement, and repairing damage caused by automobile accidents, vandalism, time, and weather.  Electrical conduit repair and replacement due to damage by vandalism, time and weather.
 Service-call maintenance, repair and replacement including painting, replacing worn out electrical components and repairing damage due to accidents, vandalism, and weather.
 Payment of the electrical bill for the existing street lighting system.  Responding to constituent and business inquiries and complaints regarding the public lighting.

Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of landscaping and public lighting improvements facilities and appurtenant facilities. This includes repair, removal or replacement of all or part of any of the landscaping and street lighting improvements, or appurtenant facilities; providing for the life, growth, health and beauty of landscaping improvements and for the operation of the lighting improvements.

Servicing means the furnishing of all labor, materials, equipment and utilities necessary to maintain the landscaping improvements and to maintain and operate the public lighting improvements or appurtenant facilities in order to provide adequate illumination.

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City of Solana Beach Coastal Rail Trail Maintenance District Page 5 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
SECTION III. PROPOSED FISCAL YEAR BUDGET
A. ESTIMATED FISCAL YEAR 2026/2027 BUDGET
A summary of the proposed District Fiscal Year 2026/2027 budget is summarized, by category, in Table 1 shown on the following page:

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City of Solana Beach Coastal Rail Trail Maintenance District Page 6 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
TOTAL
BUDGET

GENERAL

BENEFIT
PORTION1&2

PROPOSED FY
2026/2027

ASSESSMENT
Operating and Maintenance
Landscape, Irrigation & Hardscape Maintenance Thru an
Outside Contract (Includes Tree Trimming) $129,742 $30,591 $99,151 Utilities (Water) $34,000 $0 $34,000
Utilities (Electricity) $41,000 $41,000 $0
Trail Maintenance (DG & Concrete Paths) $1,400 $0 $1,400 Graffiti Abatement $200 $0 $200
Ballard Replacement (2) $0 $0 $0
Total Operating and Maintenance Costs $206,342 $71,591 $134,751 Capital Replacement
Landscape & Irrigation Replacement $3,600 $200 $3,400
Pedestrian/Bicycle Path Replacement $2,500 $200 $2,400
Hardscape Features Replacement (water fountain, art
work, bus shelter) $2,500 $200 $2,400
Reserves
Fiscal Year 2026/2027 Reserve Collection $0 $0 $0
Total Capital Replacement and Reserves $8,600 $600 $8,200 District Administration Costs
County SB 2557 Costs $600
County Electronic Data Processing Costs $602
City Administration/Consultant Costs $17,590
Total Administration Costs $18,792
TOTAL BUDGET $161,743
LESS OPERATING RESERVES USED IN FY2 ($74,326)
TOTAL ASSESSMENT AMOUNT $87,417
Total Parcels in the District 13,108
Total Parcels Levied 5,660
Total Equivalent Benefit Units 10,071.13
Proposed Levy Per Equivalent Benefit Unit $8.68
Inflation Percentage Applied to Proposed Levy Per EBU 2.00% Beginning Balance as of 7/1/26 $42,017
FY 2026/2027 Collection 87,417
Expenditures (161,743)
Measure S Funds - Interfund Transfer 72,558
Projected Ending Balance as of 6/30/273 $40,249
Maximum Recommended Cash Flow Reserve Amount $43,709

1. While the cost of the electricity is not 100% general benefit, the City is paying for the entire cost through other available funds and none of the cost is being allocated to the parcels located within the District.

2. The CRT landscaping cost is greater than the available funding from the District so other available funding is being utilized to cover the difference.

3. The City is developing a plan on how to utilize the operating reserves on the CRT in the future.

ADMINISTRATION COSTS

AMOUNT TO LEVY

OPERATING RESERVES
Table 1

CITY OF SOLANA BEACH

COASTAL RAIL TRAIL MAINTENANCE DISTRICT
2026/2027 BUDGET

OPERATING AND MAINTENANCE COSTS

CAPITAL REPLACEMENT AND RESERVES
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B. DESCRIPTION OF BUDGET ITEMS
The following is a brief description of the major budget categories that includes the detailed costs of maintenance and services for the District included in the table above.

OPERATING AND MAINTENANCE COSTS – This includes the costs of maintaining and servicing the landscaping and lighting improvements. This may include, but is not limited to, the costs for labor, utilities, equipment, supplies, repairs, replacements and upgrades that are required to properly maintain the items that provide a direct benefit to properties located within the District.

CAPITAL REPLACEMENT AND RESERVES – These items provide a funding source to pay for items that wear out over time, other unanticipated items not directly budgeted for and for the replacement of the landscaping, pathways and hardscape features located along and adjacent to the City CRT.

ADMINISTRATION COSTS – This includes the indirect costs not included above that are necessary to pay for administrative costs related to the District, including the levy and submittal of the assessments to the County to be placed on the Fiscal Year 2026/2027 County equalized tax roll, responding to property owner inquiries relating to the assessments and services, and any other related administrative costs.

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SECTION IV. METHOD OF APPORTIONMENT
A. GENERAL
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, which include the construction, maintenance, and servicing of landscaping and public lights and appurtenant facilities.

Streets and Highways Code Section 22573 requires that maintenance assessments be levied according to benefit rather than the assessed value.
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
In addition, Article XIIID and the Implementation Act require that a parcel’s assessment may not exceed the reasonable cost for the proportional special benefit conferred to that parcel. A special benefit is a particular and distinct benefit over and above general benefits conferred on property located within the assessment district. Article XIIID and the Implementation Act further provides that only special benefits are assessable and the City must separate the general benefits from the special benefits. They also require that publicly owned properties which specifically benefit from the improvements be assessed.

B. GENERAL BENEFIT ANALYSIS
The improvements described in Section II B of this Report are for the special benefit, enhancement and use of properties within the District. However, the City CRT was constructed as a portion of a much larger regional trail that eventually will extend from the City of Oceanside to the north to the City of San Diego to the south. Residents and property owners located in each of the cities along the trail will receive a special benefit from the construction and maintenance of the trail within their city. Residents from each of these cities will have an opportunity to use the entire trail upon completion including the portion in Solana Beach which creates a general benefit.

Additionally, included among the different property types in the City are timeshare units.

Though individuals may purchase and “own” their timeshare unit, their ownership rights are limited and temporary (typically one week per year.) Owners of timeshare units have an opportunity to use the CRT while vacationing in the City. Due to the limited ownership time-frame of timeshare owners, their special benefit is limited and thus considered as part of the general benefit similar to the general benefit to the public at large.

The general benefit portion of the assessment has been determined by looking at each participating city’s trail length as a factor or the entire trail. The City of Solana Beach’s portion of the CRT is 1.7 miles compared to the entire proposed trail length of 44.0 miles.

Comparing the length of the City CRT to the total length of the CRT results in a general benefit of 3.86%. Engineering also determined that timeshares add an additional 2.0% Item K.2
City of Solana Beach Coastal Rail Trail Maintenance District Page 9 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
general benefit impact. For rounding purposes after adding the two components (3.86% +

2.0%) the general benefit is considered to be 6.0% overall to the public at large. The budget has been allocated to parcels based on their special benefit share. In addition, the City is paying 100% of the electricity costs, totaling $29,500, for the District through funds available from other sources resulting in over 30% of the costs paid directly by the City.

C. SPECIAL BENEFIT ANALYSIS
Each of the proposed improvements and the associated costs and assessments within the District has been reviewed, identified and allocated based on special benefit pursuant to the provisions of Article XIIID, the Implementation Act, and the Streets and Highways Code Section 22573.

Proper maintenance and operation of the City CRT landscaping, hardscape, open space and public lighting provides special benefit to adjacent properties by providing community character, security, safety and vitality. Additionally, one of the purposes of the trail is to facilitate alternative transportation opportunities in order to reduce air pollution and vehicular traffic congestion which provide special benefit to the properties within the District.

TRAIL AND LANDSCAPING SPECIAL BENEFIT
Landscaping and appurtenant facilities, if well maintained, provide beautification, shade and enhancement of the desirability of the surroundings, and therefore increase property values. Specifically, they provide a sense of ownership and a common theme in the community providing aesthetic appeal, recreational and health opportunities and increased desirability of properties.

PUBLIC LIGHTING SPECIAL BENEFIT
The operation, maintenance and servicing of public lighting along and adjacent to the City CRT provide safety and security to properties along City CRT specifically as follows:
 Improved security, deterrence of crime and aid to police and fire protection.  Reduced vandalism and damage to the improvements and property.  Increased business activity to the coastal community during nighttime hours.

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City of Solana Beach Coastal Rail Trail Maintenance District Page 10 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
D. ASSESSMENT METHODOLOGY
To establish the special benefit to the individual lots or parcels within the District, an Equivalent Benefit Unit system based on land use is used along with a Zone Factor based on geographic proximity to the City CRT.

EQUIVALENT BENEFIT UNITS
Each parcel of land is assigned an Equivalent Benefit Unit in proportion to the estimated special benefit the parcel receives relative to other parcels within the District. The single family detached (“SFD”) residential property has been selected as the basic unit for calculating assessments; therefore, a SFD residential parcel equals one Equivalent Benefit Unit (“EBU”).

The EBU method of apportioning benefit is typically seen as the most appropriate and equitable assessment methodology for districts formed under the 1972 Act, as the benefit to each parcel from the improvements are apportioned as a function of land use type, size and development. A methodology has been developed to relate all other land uses to the SFD residential as described below.

EBU APPLICATION BY LAND USE:

SINGLE-FAMILY RESIDENTIAL — This land use is defined as a fully subdivided residential parcel in which a tract map has been approved and recorded. This land use is assessed 1.0 EBU per lot or parcel. This is the base value that all other land use types are compared and weighted against (i.e. Equivalent Benefit Unit or EBU).

RESIDENTIAL CONDOMINIUM — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property with individual unit ownership. This land use is assessed 1.0 EBU per dwelling unit.

MULTI-FAMILY RESIDENTIAL — This land use is defined as a fully subdivided residential parcel that has more than one residential unit developed on the property not available for individual unit ownership. This land use is assessed 0.75 EBU per dwelling unit.

PLANNED-RESIDENTIAL DEVELOPMENT — This land use is defined as any property not fully subdivided with a specific number of proposed residential lots or dwelling units to be developed on the parcel. This land use type is assessed at 1.0 EBU per planned (proposed) residential lot or dwelling unit.

COMMERCIAL/INDUSTRIAL — This land use is defined as property developed for either commercial or industrial use. This land use type is assessed at 1.0 EBU per parcel.

VACANT SINGLE-FAMILY RESIDENTIAL — This land use is defined as property currently zoned for single-family detached residential development, but a tentative or final tract map has not been submitted and/or approved. This land use is assessed at 1.0 EBU per parcel.

VACANT MULTI-FAMILY RESIDENTIAL — This land use is defined as property currently zoned for multi-family residential development, but a tentative or final tract map has not been submitted and/or approved. This land use is assessed at 0.75 EBU per parcel.

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VACANT COMMERCIAL/INDUSTRIAL — This land use is defined as property currently zoned for either commercial or industrial use. This land use is assessed at 1.0 EBU per parcel.

EXEMPT PARCELS — This land use identifies properties that are not assessed and are assigned 0.0 EBU. This land use classification may include, but is not limited, to lots or parcels identified as public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and right-of-ways including greenbelts and parkways; utility right-of-ways; common areas, sliver parcels and bifurcated lots or any other property that can not be developed; park properties and other publicly owned properties that are part of the District improvements or that have little or no improvement value. These types of parcels are considered to receive little or no benefit from the improvements and are therefore exempted from assessment.

PUBLIC OWNED PARCELS — This land use identifies properties that are not assessed and are assigned 0.0 EBU. This land use classification includes other typically non-assessed parcels that are not considered exempt parcels and may include, but is not limited, to lots or parcels identified as schools, government owned buildings, fire and police stations, and administration offices. These types of properties are considered to receive little special benefit from the improvements and any benefit that they may receive is considered to be part of the City’s general benefit contribution to the District.

ZONE FACTOR
The District was divided into three zones based on the proximity of parcels in location to the City CRT. Properties located the closest to the trail will receive a greater special benefit as compared to those parcels the farthest away. In order to calculate this into the assessment a factor is applied to each parcel according to the following Zone location.

ZONE 1 PROPERTIES – This Zone is defined as properties located adjacent to or within a few blocks of the City CRT improvements. This includes all properties that are generally located east of Acacia and Sierra Avenue and west of Rios Avenue. Parcels located in this zone use the EBU amounts derived above based on land use and then multiplied by a proximity factor of three (3).

ZONE 2 PROPERTIES – This Zone is defined as properties located close to the improvements but not adjacent to the City CRT or properties defined as Zone 1 Properties.

This includes all properties that are generally located west of Acacia Avenue and also those properties located east of Rios Avenue and west of Interstate-5. Parcels located in this zone use the EBU amounts derived above based on land use and then multiplied by a proximity factor of two (2).

ZONE 3 PROPERTIES – This Zone is defined as properties located the furthest away from the City CRT improvements. This includes all properties that are located east of Interestate5. Parcels located in this zone use the EBU amounts derived above based on land use and then multiplied by a proximity factor of 0.5.

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The following table summarizes the EBU and Zone Factors based on land use.

In order to determine the maximum annual assessment rate for each type of land use described above, the following formula is applied:

Applicable EBU * Applicable Zone Factor*Maximum Assessment Rate per 1.0 EBU=Assessment Rate per Unit/Parcel.

E. RATES
Table 3 below shows the maximum assessments rates proposed to be levied in Fiscal Year 2026/2027 by land use. Because the San Diego Consumer Price Index for All Urban Consumers (“CPI-U”) was over 2.00% for 2025 (3.79%), the maximum assessments were increased by 2.00% as allowed for in the assessment range formula discussed below.

Land Use Description
Equivalent
Benefit Units
(EBUs) Per
Zone 1
Multiplier
Zone 2
Multiplier
Zone 3
Multiplier
No. of EBUs
for Property
in Zone 1
No. of EBUs
for Property
in Zone 2
No. of EBUs
for Property
in Zone 3
Single Family Residential 1.00 Lot or Parcel 3.00 2.00 0.50 3.00 2.00 0.50 Residential Condominium 1.00 Dwelling Unit 3.00 2.00 0.50 3.00 2.00 0.50 Multi-Family Residential 0.75 Dwelling Unit 3.00 2.00 0.50 2.25 1.50 0.38 Planned Residential Development 1.00
Lot or Dwelling
Unit 3.00 2.00 0.50 3.00 2.00 0.50
Commercial/Industrial 1.00 Parcel 3.00 2.00 0.50 3.00 2.00 0.50 Vacant Single Family Residential 1.00 Parcel 3.00 2.00 0.50 3.00 2.00 0.50 Vacant Multi-Family Residential 0.75 Parcel 3.00 2.00 0.50 2.25 1.50 0.38 Vacant Commercial/Industrial 1.00 Parcel 3.00 2.00 0.50 3.00 2.00 0.50 Timeshare Units 0.00
1 week of
ownership 3.00 2.00 0.50 0.00 0.00 0.00
Exempt Parcels 0.00 Parcel 3.00 2.00 0.50 0.00 0.00 0.00 Public Owned Parcels 0.00 Parcel 3.00 2.00 0.50 0.00 0.00 0.00 Table 2

CITY OF SOLANA BEACH

COASTAL RAIL TRAIL MAINTENANCE DISTRICT

EQUIVALENT BENEFIT UNITS AND ZONE FACTOR BY LAND USE
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F. ASSESSMENT RANGE FORMULA
The purpose of establishing an Assessment Range Formula is to provide for reasonable inflationary increases to the annual assessments without requiring the District to go through an expensive balloting process required by law in order to get a small increase. On July 1, 2007 and each year thereafter, the Maximum Assessment Rate shall be increased by the lesser of Local CPI-U in the San Diego County area or 2.0%. The CPI-U used shall be as determined annually by the Bureau of Labor Statistics beginning with the CPI-U rate increase for 2006.

Beginning in the Fiscal Year 2007/2008 the Maximum Assessment may be increased using the lesser of the increase in the CPI-U from first year levy (the Assessment Range Formula) or 2.0%. This Assessment Rate Formula would be applied every fiscal year thereafter and a new Maximum Assessment will be established to include the allowable increase.

The Maximum Assessment adjusted annually by this formula is not considered an increased assessment. Although the Maximum Assessment will increase each year, the actual assessment will only reflect the necessary budgeted amounts and may remain unchanged. Increases in the budget or an increase in the rate in one year from the prior year will not require a new 218 balloting unless the rate is greater than the Maximum Assessment adjusted to reflect an increase in the CPI-U.

Land Use Description Per
Base Rate for
Zone 1
Base Rate
for Zone 2
Base Rate
for Zone 3
Single Family Residential Lot or Parcel $26.04 $17.36 $4.34 Residential Condominium Dwelling Unit $26.04 $17.36 $4.34 Multi-Family Residential Dwelling Unit $19.54 $13.02 $3.26 Planned Residential Development
Lot or Dwelling
Unit $26.04 $17.36 $4.34
Commercial/Industrial Parcel $26.04 $17.36 $4.34
Vacant Single Family Residential Parcel $26.04 $17.36 $4.34 Vacant Multi-Family Residential Parcel $19.54 $13.02 $3.26 Vacant Commercial/Industrial Parcel $26.04 $17.36 $4.34 Timeshare Units
1 week of
ownership $0.00 $0.00 $0.00
Exempt Parcels Parcel $0.00 $0.00 $0.00
Public Owned Parcels Parcel $0.00 $0.00 $0.00

COASTAL RAIL TRAIL MAINTENANCE DISTRICT

EQUIVELANT BENEFIT UNITS AND ZONE FACTOR BY LAND USE
Table 3

CITY OF SOLANA BEACH
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SECTION V. ASSESSMENT ROLL
Parcel identification, for each lot or parcel within the District shall be the parcel as shown on the County Assessor's map for the year in which this Report is prepared.

A listing of parcels assessed within the District, along with the proposed assessment amounts, has been submitted to the City Clerk, under a separate cover, and by reference is made part of this Report. Said listing of parcels to be assessed shall be submitted to the County Auditor/Controller and included on the property tax roll for each parcel in Fiscal Year 2026/2027. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel or parcels shall be based on the method of apportionment and assessment rate approved in this Report. Therefore, if a single parcel has changed to multiple parcels, the assessment amount applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

Item K.2
City of Solana Beach Coastal Rail Trail Maintenance District Page 15 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026
SECTION VI. ASSESSMENT DIAGRAM
The parcels within the District consist of all lots, parcels and subdivisions of land located in the City. A reduced copy of the boundary map of the area is attached.

Item K.2
Item K.2
City of Solana Beach Coastal Rail Trail Maintenance District Page 16 Fiscal Year 2026/2027 Engineer’s Report 5/18/2026

CITY OF SOLANA BEACH

COASTAL RAIL TRAIL MAINTENANCE DISTRICT
Engineer’s Report
Fiscal Year 2026/2027
The undersigned respectfully submits the enclosed Report as directed by City Council.

Report Submitted By:

By: ________________________________
Scott Koppel
Koppel & Gruber Public Finance
By: ________________________________

City of Solana Beach
Austin Frisby, PE
City Engineer
Item K.2
COUNCIL ACTION:
_______________________________________________________________________ AGENDA ITEM # L.1.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: July 15, 2026
ORIGINATING DEPT: Engineering - Austin Frisby, Principal Civil Engineer | City Engineer
SUBJECT: Update on Utility Underground Districts and Award of PSA for Assessment Engineering Services related to the Pacific Ave Phase II UUD and Glenmont/Mar Vista/Marview UUD to
NV5, Inc.

BACKGROUND:

The City of Solana Beach, in coordination with SDG&E, has been advancing three Utility Undergrounding Districts (UUDs) west of Interstate 5 under SDG&E's Rule 20B program.

The projects aim to relocate overhead utility lines underground to enhance public safety and preserve coastal views. The City Council last received an update on September 25, 2024. Over the last two years, staff has been working closely with SDG&E, utility companies, and property owners to assist in the advancement of these projects.

The three districts and the corresponding boundaries are summarized below:
• Pacific Avenue – Phase II: Pacific Avenue from North Helix Avenue to Solana Vista Drive (this District includes the Fletcher Cove Community Center). • Glenmont/Mar Vista/Marview: Glenmont Drive (entire street), Mar Vista Drive (entire street), Rawl Place (entire street), Marview Drive (entire street), Ford Avenue (entire street) and Canyon Drive (from Rawl Place to Ford Avenue). • Nardo/Granados/Rios UUD: Nardo Avenue from Lomas Santa Fe Drive (LSF) to just south of Lirio Street, South Granados Avenue from LSF to south end of street, on South Rios Avenue from LSF to south end of street, Rosa Street (east end of street), Palmitas Street (entire street), Lirio Street (entire street), Corto Street (entire street), and Via de Vista (entire private street).

Under the California Streets and Highways Code, the City is required to retain an Assessment Engineer to prepare the Engineer's Report, apportion costs among benefiting properties, and provide the technical documentation necessary to establish and administer UUD assessment district proceedings.

Item L.1
July 15, 2026
Updates on Utility Undergrounding Districts and Assessment Engineering Services PSA

Page 2 of 5 ends

This item is before the City Council to provide a status update on the UUDs and for the consideration of Resolution 2026-080 (Attachment 1) Authorizing the City Manager to execute a Professional Services Agreement (PSA) with NV5 for assessment engineering services related to the Pacific Ave Phase II UUD and Glenmont/Mar Vista/Marview UUD.

DISCUSSION:

The City of Solana Beach has pursued the undergrounding of overhead utility facilities to enhance public safety, improve utility reliability, and improve the community's coastal experience. Following the completion of several utility undergrounding districts, in 2016, the City adopted an updated Utility Undergrounding Policy to assist neighborhoods of homeowners in navigating and working with SDG&E to advance projects. Under the framework, private property owners were able to initiate projects with SDG&E through resident petitions to form “Districts” and the City would provide assistance through engineering coordination and administrative support as needed with SDG&E.

The City has worked collaboratively with residents, San Diego Gas & Electric, telecommunications providers, and engineering consultants to advance several proposed underground utility districts, including Pacific Avenue Phase II, Glenmont/Mar Vista/Marview, and Nardo/Granados/Rios. Meetings are held monthly with a team of SDG&E engineers, City staff, and telecommunication utility representatives to discuss updates and share information on all three projects. Joint efforts have focused on neighborhood outreach, preliminary and final engineering, utility coordination, and assistance with easement acquisition. While the utility undergrounding process has presented numerous technical, regulatory and coordination challenges that have extended project timelines beyond what was originally projected, the City has continued to assist property owners and SDG&E toward meaningful progress in advancing the three underground utility districts through planning, design, and pre-construction activities.

The three UUDs are at different stages of the formation process. The Pacific Avenue Phase II and Glenmont/Mar Vista/Marview UUDs have advanced to the point where assessment engineering services are needed. The Nardo/Granados/Rios UUD remains in the design phase pending resolution of outstanding easements. Below is a status update on each district.

Pacific Avenue – Phase II
The Pacific Avenue Phase II UUD covers Pacific Avenue from North Helix Avenue to Solana Vista Drive, including the Fletcher Cove Community Center. This district has progressed the furthest of the three UUDs. In 2022, the second petition was completed and met the required 70% threshold as outlined in the "Steps to Forming a Private Residential Utility Underground District" brochure. Over the last couple years SDG&E has been coordinating with AT&T to execute a Joint Trench Agreement (JTA), which allows AT&T to include their facilities and construction costs within the SDG&E construction documents for competitive bidding as a single project. The City Council previously authorized allocation of funds and payment of $45,360 to AT&T to assist with the advancing of utility design. These advances to AT&T will be reimbursed to the City if the district Item L.1
July 15, 2026
Updates on Utility Undergrounding Districts and Assessment Engineering Services PSA

Page 3 of 5 ends

undergrounding moves forward. The district is currently in the final stages of design and approaching the pre-construction bid phase.

Six streetlights within the district boundaries are currently attached to wood utility poles, which would be removed as part of the undergrounding project. The City will replace these lights using proceeds from the City of Solana Beach Lighting Maintenance District, using a design consistent with the City Standard (exposed aggregate concrete poles with LED fixtures), similar to those installed on the north end of Pacific Avenue and Circle Drive.

Next Steps: The Pacific Avenue UUD is being prepared for the City Assessment Process following the final design by SDG&E to determine cost percentages to be borne by each property owner within the District. This process will be completed concurrently with SDG&E’s competitive bid process for construction. Following receipt of competitive bids, SDG&E will provide the City with a Cost Agreement for review. Subsequently, the City will assist in the initiation of the Assessment District Voting. If the Assessment District is approved, the property owners within the District are required to begin the respective onsite service lateral work in alignment with SDG&E and joint trench owners designs. All service work shall be completed prior to SDG&E’s contractor mobilizing to the site.

Following completion of the service lateral work, SDG&E’s contractor shall complete the construction process for an overhead to underground conversation. This work includes:
• Cable Pole Installation
• Civil Construction – Trenching, conduit and substructure placement, backfill, ground restoration
• Cabling & Connections
• Removal of SDG&E Overhead Lines & Equipment
• CIP Wreckout
• Removal of SDG&E Pole Stubs
• Installation/energization of streetlights
Glenmont/Mar Vista/Marview
The Glenmont/Mar Vista/Marview UUD encompasses Glenmont Drive, Mar Vista Drive, Rawl Place, Marview Drive, Ford Avenue (entire streets), and Canyon Drive from Rawl Place to Ford Avenue. This District has areas of private roads, which make it exceptionally difficult to relocate utility lines when a public road is not present along property frontages.

Over the last two years, the City has assisted SDG&E and the property owners in the successful completion of SDG&E obtaining the easements for all properties within the District. During the design phase, SDG&E identified locations requiring easements to place pad-mounted transformers and place certain overhead utility lines underground, particularly along the private street Marview Lane.

SDG&E recently completed design for this UUD and the Communications Infrastructure Providers (CIPs) are preparing their designs. Following completion of the CIPs design, and approval by SDG&E, the Glenmont/Mar Vista/Marview UUD will follow the process outlined in the Pacific Ave Phase II UUD above (see next steps).

Item L.1
July 15, 2026
Updates on Utility Undergrounding Districts and Assessment Engineering Services PSA

Page 4 of 5 ends

Nardo/Granados/Rios
The Nardo/Granados/Rios UUD includes Nardo Avenue (from Lomas Santa Fe Drive to just south of Lirio Street), South Granados Avenue, South Rios Avenue, Rosa Street (east end), Palmitas Street, Lirio Street, Corto Street (entire streets), and the south end of Via de Vista. Similar to the Glenmont UUD, this district encountered easement challenges along the private street Via de Vista, where the necessary easements could not be obtained despite extensive outreach. Over the last 2 years, City staff has been assisting SDG&E and property owners within the District in navigating the necessary easements for undergrounding of the utilities. There are three remaining easements along the private road that City staff continues to work with SDG&E on obtaining, while SDG&E continues to advance design. Currently, the SDG&E design is at the 90% level and being updated with streetlights and updated service information. Should SDG&E be unable to secure the easements as preliminarily designed, they will need to work with City staff and residents to identify alternative alignments to maintain the existing District boundary. City staff continues to meet with SDG&E staff on a monthly basis and in the community to identify alternative solutions that could be considered if necessary.

NV5 Assessment Engineering Professional Services Agreement (PSA) Under the California Streets and Highways Code, the City must retain an Assessment Engineer to prepare the Engineer's Report, apportion costs among benefiting properties, and provide technical documentation necessary to establish and administer assessment district proceedings. The Assessment Engineer also supports public outreach, responds to property owner inquiries, and provides technical assistance through public hearings and City Council proceedings.

The City Council previously approved a PSA with NV5, Inc. for these services in December 2022 (Resolution 2022-138, $32,000) and Amendment No. 1 in January 2024 (Resolution 2024-012, $88,000), for a total of $120,000. That agreement has since expired and does not provide for an extension.

Pursuant to Solana Beach Municipal Code Section 3.08.130.D, competitive selection may be waived when in the public's interest. NV5's familiarity with the UUD history and SDG&E Rule 20B procedures makes continuity the most efficient and cost-effective approach. The proposed PSA covers the Pacific Avenue Phase II and Glenmont/Mar Vista/Marview UUDs, as both are approaching the assessment phase. The Nardo/Granados/Rios UUD will be addressed under a separate future action once design is finalized.

CEQA COMPLIANCE STATEMENT:

UUD projects are exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302(d) of the State CEQA Guidelines. Notices of Exemption were filed for each of the three UUDs in December 2022.

Item L.1
July 15, 2026
Updates on Utility Undergrounding Districts and Assessment Engineering Services PSA

Page 5 of 5 ends

The execution of a Professional Services Agreement with NV5, Inc. for assessment engineering services does not constitute a "project" subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(5).

FISCAL IMPACT:

This item authorizes the City Manager to execute a PSA with NV5 for assessment engineering services for the Pacific Phase II UUD and Glenmont/Mar Vista/Marview UUD, in the amount of $83,200. There is sufficient budget in the Misc. Capital Projects – Eng – Construction Account 4596510-66600 ($88,000) available to fund this PSA.

WORK PLAN:

This project is included in the FY2026/27 Work Plan. The undergrounding of utility lines supports the City's ongoing commitment to public safety and preservation of coastal views.

OPTIONS:
• Receive update report.
• Approve Staff recommendations.
• Provide alternative direction.

CITY STAFF RECOMMENDATION:

Staff recommends that the City Council adopt Resolution 2026-080:

1. Authorizing the City Manager to execute a Professional Services Agreement for a three-year term, in an amount not to exceed $83,200, with NV5, Inc. for assessment engineering services for the Pacific Ave Phase II UUD and Glenmont/Mar Vista/Marview UUD to be charged to Account 4596510-66600.

2. Authorizing the City Treasurer to amend the FY2026/27 Adopted Budget accordingly.
_________________________
Alyssa Muto, City Manager
Attachments:

1. Resolution 2026-080 PSA with NV5 for Assessment Engineering Services Item L.1
ATTACHMENT 1
RESOLUTION 2026-080

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOLANA BEACH, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT WITH NV5, INC. FOR ASSESSMENT

ENGINEERING SERVICES ASSOCIATED WITH THE

PACIFIC AVE PHASE II AND GLENMONT/MAR

VISTA/MARVIEW UTILITY UNDERGROUND DISTRICTS
WHEREAS, in January 2024, the City Council approved Amendment No. 1 to the Professional Services Agreement (PSA) with NV5, Inc. (NV5) to perform assessment engineering services for the Glenmont/Mar Vista/Marview and Nardo/Granados/Rios Utility Underground Districts (UUD’s); and
WHEREAS, in December 2022, the City Council approved a Professional Services Agreement (PSA) with NV5, Inc. (NV5) to perform assessment engineering services for the Pacific Avenue – Phase II Utility Underground District (UUD); and WHEREAS, the PSA has since expired with no provision to extend for an additional period; and
WHEREAS, in anticipation of the need for assessment engineering services, Staff reached out to NV5 to obtain proposals for assessment engineering services for the Pacific Ave Phase II and Glenmont/Mar Vista/Marview UUD’s. The proposal for the Pacific Ave Phase II UUD is $31,200 and the proposal for the Glenmont/Mar Vista/Marview UUD is $52,000 for a total of $83,200; and WHEREAS, there is sufficient budget in the MISC CAPITALPROJECTS-ENG – Account 4596510-66600 ($88,000) from the expired PSA with NV5; and NOW, THEREFORE, the City Council of the City of Solana Beach, California, does resolve as follows:

1. That the above recitations are true and correct.

2. That the City Council authorizes the City Manager to execute a Professional Services Agreement for a three-year term, in an amount not to exceed $83,200, with NV5, Inc. for assessment engineering services for the Pacific Ave Phase II UUD and Glenmont/Mar Vista/Marview UUD to be charged to Account 4596510- 66600.

3. That the City Council authorizes the City Treasurer to amend the FY 2026/27 Adopted Budget accordingly.

Item L.1
Resolution 2026-080
PSA for Assessment Engineering Services for UUD’s (NV5)

Page 2 of 2 ends

PASSED AND ADOPTED this 15th day of July, 2026, at a regular meeting of the City Council of the City of Solana Beach, California by the following vote:

AYES: Councilmembers –
NOES: Councilmembers –
ABSTAIN: Councilmembers –
ABSENT: Councilmembers –
______________________________
LESA HEEBNER, Mayor
APPROVED AS TO FORM: ATTEST:
_____________________________ _______________________________ JOHANNA N. CANLAS, City Attorney ANGELA IVEY, City Clerk Item L.1
Utility Underground
Districts Update (Item L.1)
• Pacific Avenue – Phase II UUD
• Glenmont/Mar Vista/Marview (Glenmont) UUD
• Nardo/Granados/Rios (Nardo) UUD
City Council Meeting – July 15, 2026
Item L.1
• City of Solana Beach Engineering Department - Underground Utility District Resources • UUD Fact Booklets
https://cityofsolanabeach.ca.gov/sites/default/files/Solana%20Beach/Engineering%20%26%20Public%20Works/Utility_Under ground_Districts_-_Fact_Booklet.pdf
• Steps to Forming & Petition
https://cityofsolanabeach.ca.gov/sites/default/files/Solana%20Beach/Engineering%20%26%20Public%20Works/Utility_Under ground_Districts_-_Steps_to_Forming.pdf
• Frequently Asked Questions
https://cityofsolanabeach.ca.gov/sites/default/files/Solana%20Beach/Engineering%20%26%20Public%20Works/ENG_Utility_ Undergrounding_Petition.pdf
• Residents are encouraged to sign up to receive monthly updates on active UUD’s:
• https://lp.constantcontactpages.com/sl/3BB0hOc
Public Updates / City Website
Regular City Council Meeting
July 15, 2026 Slide 2
Utility Underground Districts Update – Item L.1
Item L.1
UUD Funding & Delivery
Regular City Council Meeting
July 15, 2026 Slide 3
Utility Underground Districts Update – Item L.1
RULE 20A
Ratepayer-Funded
• Paid with SDG&E “work credits” — no direct cost to City • Must qualify as public benefit (traffic, ADA, arterial streets) • Credits are capped and sunset by 12/31/2033
• Major Streets / Downtown / Scenic Corridors
OUR PROJECTS RULE 20B
City / Applicant-Funded
• City funds the project after initiation by property
owners/developers (Limited Reimbursement – 20 to 40%)
• Used where 20A criteria aren’t met, or 20A credits are exhausted
• Neighborhood / Smaller Corridors

DELIVERY MECHANISM
Who physically digs the trench and manages construction M
Muni (City) Trench
City’s Engineering & Capital Projects Dept. leads construction — typically when trenching is combined with street, sewer, or joint-utility work in the same cut.

S
SDG&E Contractor Trench
SDG&E designs and hires its own contractors under the
franchise agreement — the standard path for a straightforward electric-only conversion.

CPUC Rule 20A vs. 20B — and How Our Projects Get Built
Item L.1
Utility Underground Districts (Formation)
Regular City Council Meeting
July 15, 2026 Slide 4
Utility Underground Districts Update – Item L.1
STEPS 1–10
1 Obtain Informational Packet from the City
2 Form Neighborhood Committee (3–5 residents)
3 Define Proposed Boundaries (≤300 homes, 600 ft min.)
4 Meet with City Undergrounding Coordinator
2 weeks
5 Hold Neighborhood Meeting to Gauge Support
6 Circulate Petition — Need 70% of Owners
• Not a vote or commitment, but needed to show formation 7 Submit First Petition to the City
8 City Verifies Signatures
• If <70%, Signatures continue
• If 70% Met, Initial Field Meeting 2 months
9 Request Design & Consultant Funding
10 Utilities Complete Design Plans (SDG&E, AT&T, Cox)
1–2 years
P G N
Item L.1
Utility Underground Districts (Construct)
Regular City Council Meeting
July 15, 2026 Slide 5
Utility Underground Districts Update – Item L.1
STEPS 11–19
11 Neighborhood Coordinator Circulates Second Petition
• 70% again required
12 City works with Consultant for Engineer's Report
1-2 months
13 Council Accepts Engineer’s Report & Approves Resolution of Intention (Voting is Initiated)
2-4 weeks
14 City Prepares and Mails Ballots; Public Hearing & Vote Count • If 50% + 1 AND 60% Total Parcel Ballots are in favor, Council will form the Assessment District & Record with County
45 days
15 Owners Have 30-Days to Pay Assessment (In Full) or Add to Annual Property Tax Bill
30 days
16 SDG&E Solicit Bids for Construction, Begin Residential Conversions • Bids can be held for period of 1-year
4–5 months
17 Construction Commences
• Cable Pole | Trench & Conduit | Cabling & Connections | Removal of Overhead | CIP Work | Removal of Pole Stubs | Energization 6–8 months
18 Notice Sent: Connect to Underground System
180 days
19 Utilities Remove Old Poles & Wires
2–3 months
https://cityofsolanabeach.ca.gov/sites/default/files/Solana %20Beach/Engineering%20%26%20Public%20Works/Utility
_Underground_Districts_-_Steps_to_Forming.pdf
Item L.1
Residential Conversion Process
Regular City Council Meeting
July 15, 2026 Slide 6
Utility Underground Districts Update – Item L.1
1 Assessment District is Approved following Voting
2 Customer (Property Owner) Contacts SDG&E for Residential Conversion
3 Receive Service/Work Order from SDG&E for Residential Conversion • Panel/Service can require upgrade (SDG&E to determine) 4 Submit for “Individual Electrical Permit” with City Building Department • Effective 2026 Fee is $239.40 ($176.00 + $52.00 + 5%) • Provide Application, Site Plan, and Work Order from SDG&E WITHIN 1-YEAR
5 Complete Work in Accordance with Underground Point of Connection at R/W
SDG&E can hold construction bid values for a
maximum of 1-year from receipt (bid opening).

Item L.1
Pavement Management Program
1 Pacific Phase II
• 69 Parcels
• Pacific Avenue from North
Helix Avenue to Solana
Vista Drive (includes the
Fletcher Cove Community
Center).
2 Glenmont / Mar Vista /
Marview
• 100+ Parcels
• Glenmont Drive (entire
street), Mar Vista Drive
(entire street), Rawl Place
(entire
street), Marview Drive
(entire street), Ford Avenue
(entire street) and Canyon
Drive (from Rawl Place to
Ford Avenue).
3 Nardo / Granados / Rios
• 166 Parcels
• Nardo Avenue from Lomas
Santa Fe Drive (LSF) to Lirio
Street, South Granados Avenue
from LSF to south end, South
Rios Avenue from LSF to south
end of street, Rosa Street (east
end of street), Palmitas Street ,
Lirio Street, Corto Street
and Via de Vista (entire private
street).

Utility Underground Districts (UUD’s)
July 15, 2026
Utility Underground Districts Update – Item L.1
Slide 7
Completed UUD’s
• Barbara – 122 Parcels (2006)
• Marsolan – 39 Parcels (2009)
• Pacific Circle – 52 Parcels (2006)
Item L.1
Regular City Council Meeting
Pacific Avenue – Phase II UUD
Current Boundary Map
Slide 8
N
304
Fletcher Cove
Community Center
July 15, 2026
Utility Underground Districts Update – Item L.1
69 Homes in Proposed District
Item L.1
TransNet Funding
How many parcels are in the conversion boundary?
69 Parcels in Proposed District (Fletcher Cove Community Center is included)
What is the current status?
• SDG&E Design has been completed and necessary R/W
and Excavation Permit have been received.
• CIPs are finalizing design and beginning to process Joint Trench Operation (JTO).

What are the next steps?

1. City will begin assessment process once all designs are finalized.

2. SDG&E will solicit competitive bid process.

3. Assessment District Voting.

4. Customer Lateral work.

5. SDG&E construction.

What is the projected timeline?
• CIPs Final Design (1-3 months)
• Competitive Bid Process (6 months)
• Bids can be held for a 1-year period for Customer
Service Work to be completed
• Customer Service Work (Must be completed within 1-
year)
• Construction (6-9 months)
Pacific Ave Phase II
July 15, 2026
Utility Underground Districts Update – Item L.1
Slide 9
Item L.1
Regular City Council Meeting
Glenmont/
Mar Vista/
Mar View
UUD
Current
Boundary
Map
July 15, 2026 Slide 10
Utility Underground Districts Update – Item L.1
LEGEND
Original Boundary (10/2016)
Revised Boundary (11/2019)
Item L.1
TransNet Funding
How many parcels are in the conversion boundary?
100+ Parcels in Proposed District
What is the current status?
• All easements have been acquired.
• SDG&E Design has been completed, and R/W Permit
Application has been submitted for City review.
• CIPs are in design and beginning to process Joint Trench Operation (JTO).

What are the next steps?

1. City will begin assessment process once all designs are finalized.

2. SDG&E will solicit competitive bid process.

3. Assessment District Voting.

4. Customer Lateral work.

5. SDG&E construction.

What is the projected timeline?
• CIPs Final Design (2-4 months)
• Competitive Bid Process (6 months)
• Bids can be held for a 1-year period for Customer
Service Work to be completed
• Customer Service Work (Must be completed within 1-
year)
• Construction (6-9 months)
Glenmont / Mar Vista / Marview
July 15, 2026
Utility Underground Districts Update – Item L.1
Slide 11
Item L.1
Regular City Council Meeting
July 15, 2026 Slide 12
Utility Underground Districts Update – Item L.1
N
N
Nardo/
Granados/
Rios UUD
Current
Boundary
Map
Item L.1
TransNet Funding
How many parcels are in the conversion boundary?
166 Parcels in Proposed District
What is the current status?
• Easements are outstanding (1-3).
• SDG&E Design at 90% with updates to streetlights and
service information.

What are the next steps?

1. City to work with residents for necessary easements or evaluate re-design efforts to proceed without identified properties.

2. Process will follow ‘next steps’ identified in other UUDs.

What is the projected timeline?
• SDG&E Design (Pending Easement coordination or redesign) • CIPs Final Design (2-4 months)
• Competitive Bid Process (4-5 months)
• Bids can be held for a 1-year period for Customer
Service Work to be completed
• Customer Service Work (Must be completed within 1-year) • Construction (3-6 months)
Nardo / Granados / Rios
July 15, 2026
Utility Underground Districts Update – Item L.1
Slide 13
Item L.1
Anticipated Next Steps for Each District
Regular City Council Meeting
July 15, 2026 Slide 14
Utility Underground Districts Update – Item L.1
1 Pacific Phase II
• Finalize Design and Prepare
for Bidding Period
• City to return to District
Captain(s) and Inform
Councilmember (Zito)
• Discuss Voting,
Assessment, and Cash
Collection Procedures
• Review Property Owner
Lateral Work
• Assign Responsibilities
2 Glenmont / Mar Vista /
Marview
• Finalize Design and
Prepare for Bidding Period
• City to return to District
Captain(s) and Inform
Councilmember (Zito)
• Discuss Voting,
Assessment, and Cash
Collection Procedures
• Review Property Owner
Lateral Work
• Assign Responsibilities
3 Nardo / Granados / Rios
• Identify District Captains and
Inform Councilmember
(Becker)
• Continue Easement Alternative
outreach to maintain District
boundary
• Finalize Design and Prepare for
Bidding Period
Item L.1
• December 2022 Professional Services Agreement (EXPIRED) • Assessment Engineering Services for City’s Pacific Ave Phase II (2022 PSA) & Nardo / Granados / Rios UUD (2024 Amendment 1)
• Expired on January 24, 2026
• New Professional Services Agreement
• 3-Year Term with optional 1-year extension to account for UUD timelines • Pacific Ave Phase II - $31,200
• Glenmont / Mar Vista / Marview - $51,000
• TOTAL - $83,200
NV5, Inc.

Professional Services Agreement
Regular City Council Meeting
July 15, 2026 Slide 15
Utility Underground Districts Update – Item L.1
Item L.1
Regular City Council Meeting
• NV5 Proposal - $83,200
• Sufficient budget in the MISC CAPITALPROJECTS-ENG –
Account 4596510-66600 ($88,000) available to fund this PSA • From expired NV5 PSA
Fiscal Impact
July 15, 2026 Slide 16
Utility Underground Districts Update – Item L.1
Item L.1
Recommended Actions
1 Resolution 2026-080 — New NV5 PSA
Authorize the City Manager to execute a Professional Services Agreement with NV5, Inc. for assessment engineering services in the amount of $83,200 for the Pacific Ave Phase II UUD and Glenmont/Mar Vista/Marview UUD to be charged to Account 4596510-66600.
2 Budget Authorization
Authorize the City Treasurer to amend the FY 2026/27 adopted budget.

Recommendations
July 15, 2026
Utility Underground Districts Update – Item L.1
Slide 17
Item L.1
Regular City Council Meeting
Questions / Comments
July 15, 2026 Slide 18
Utility Underground Districts Update – Item L.1
Item L.1
COUNCIL ACTION:
_______________________________________________________________________ AGENDA ITEM # L.2.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: July 15, 2026
ORIGINATING DEPT: Engineering Department, Austin Frisby, Principal Civil Engineer | City Engineer
SUBJECT: Approve a Professional Services Agreement with Quality Engineering Solutions, Inc. (QES) for Citywide Pavement Condition Assessment, Five-Year Pavement Management
Program Update, and Roadway-Related Asset
Management Services. Approve Updated Resolution
Approving List of Projects for Fiscal Year 2026/27 to
Receive Road Maintenance Rehabilitation Account
Funding as Required by Senate Bill 1
BACKGROUND:

The Engineering Department is responsible for the management, condition assessment, and long-term planning of the City's pavement network. The City of Solana Beach manages approximately 46.4 centerline miles of paved roadway using a data-driven Pavement Management Program (PMP), which uses the Pavement Condition Index (PCI) to evaluate road conditions, prioritize treatments, and forecast long-term capital needs. The Department administers the PMP, coordinates annual pavement improvement projects, and ensures the City's roadway infrastructure is maintained in a safe and cost-effective manner.

Citywide pavement condition assessments are conducted on a five-year cycle; the most recent survey was completed in 2021 and the next update is now due. In addition to the pavement condition assessment, the 2026 PMP Update will develop a comprehensive roadway-related asset inventory and evaluate alternative project delivery methods to maximize cost-effectiveness and long-term value for the City's pavement investment.

Through the PMP, the Engineering Department is able to make data-driven decisions that extend the life of the City's roadway assets, minimize long-term costs, and maintain acceptable pavement conditions throughout the transportation network.

This item is before the City Council for the consideration of Resolution 2026-091 (Attachment 1) Authorizing the City Manager to execute a Professional Services Item L.2
July 15, 2026
Pavement Management Plan 2026

Page 2 of 7 ends

Agreement (PSA) with Quality Engineering Solutions, Inc. (QES) for the 2026 Citywide Pavement Condition Assessment and Five-Year Pavement Management Program Update (“2026 PMP Update") and to consider Resolution 2026-095 (Attachment 2) Amending the Resolution Approving List of Projects for Fiscal Year 2026/27 to Receive Road Maintenance Rehabilitation Account Funding as Required by Senate Bill 1.

DISCUSSION:

The City's Pavement Management Program (PMP) uses the Pavement Condition Index (PCI) — a standardized 0-to-100 numerical rating developed by the Army Corps of Engineers — to measure pavement distress, prioritize maintenance investments, and forecast long-term capital needs. A PCI of 100 represents a new or recently reconstructed pavement surface; a PCI of 0 represents a structurally failed pavement. The City's adopted minimum level of service threshold is a citywide weighted PCI of 65, below which pavement sections require overlay rehabilitation or reconstruction rather than preventive surface treatments.

Consistent with State Senate Bill 1 (SB-1, Road Repair and Accountability Act of 2017) and San Diego Regional Transportation Sales Tax (TransNet) requirements, the City is required to maintain an up-to-date PMP to remain eligible for state and regional pavement funding. The five-year update cycle represents the appropriate interval at which the City should conduct a comprehensive citywide condition reassessment, refresh the pavement management database, and develop an updated five-year Capital Improvement Program and financial plan.

The City has conducted citywide pavement condition assessments and PMP updates on an approximately five-year cycle:
• 2011 PMP: Established the City’s baseline pavement management database. • 2016 PMP: Updated the pavement condition database following five years of capital improvement and maintenance activity. The citywide weighted PCI at the time of the 2016 update was 67.0, reflecting a network in “good” condition with significant deferred rehabilitation needs across the local street network. • 2021 PMP (Most Recent): Completed by Bucknam Infrastructure Group, Inc. in September 2021. The City’s investment resulted in an improvement of the citywide weighted PCI from 67.0 in 2016, to 73.4 in 2021, reflecting a network that was improved and maintained in “very good” condition. The 2021 PMP identified a fiveyear Capital Improvement Program budget of approximately $689,000 per year to maintain current conditions, and recommended increasing annual funding to Item L.2
July 15, 2026
Pavement Management Plan 2026

Page 3 of 7 ends

approximately $1.1 million per year to raise the citywide PCI to 79.0 by fiscal year 2026.
2026 Pavement Management Program Update
The 2026 PMP update will provide the City with a comprehensive, field-verified assessment of all 332 pavement segments across the City's 46.4-mile road network. The base scope of work includes a full citywide pavement condition survey, database review and segmentation update, GIS layer creation, field data collection, development of maintenance and rehabilitation strategies, a prioritized five-year Capital Improvement Plan, annual PMP update support, and final reports and presentations to City Council.

In addition to the pavement condition assessment, the RFP also included eight optional asset inventory tasks designed to be performed concurrently with the pavement condition survey. Because the consultant's field crews will already be traversing every street in the City, capturing this additional data during the same mobilization is significantly more costeffective than procuring it separately. The optional tasks include documentation of pavement markings and striping conditions, ADA curb ramp inventory, utility access and monument locations, sign inventory, painted curb inventory, sidewalk and pathway inventory, an interactive GIS and pavement data viewing platform, and updated pavement maintenance zones.

Procurement Process
In May 2026, the City issued a Request for Proposals (RFP) to solicit proposals from qualified consultants experienced in municipal pavement management. The RFP was publicly advertised through the City's electronic procurement platform, and three responsive proposals were received by the closing date:

Proposer Base Fee Optional Tasks Fee
Total Fee (with
Optional Tasks)
Willdan Engineering $76,501.00 $374,134.00 $450,635.00
Quality Engineering
Solutions, Inc. (QES) $42,030.00 $32,157.50 $74,187.50
MDS Technologies,
Inc. (MDST) $32,750.00 $36,150.00 $68,900.00
Base scope bids ranged from $32,750 to $76,501, with total proposals including all optional tasks ranging from $68,900 to $450,635. Staff reviewed the proposed fees against previous PMP Updates and found the base fees to be slightly higher than past years, which is consistent with rising costs when adjusted for inflation.

Item L.2
July 15, 2026
Pavement Management Plan 2026

Page 4 of 7 ends

Proposals were evaluated based on firm qualifications and regional experience with municipal pavement management programs, the qualifications of proposed project personnel, the methodology and approach to field data collection and PCI analysis, familiarity with Caltrans Local Assistance and SB-1 reporting requirements, and proposed fee.

After a thorough review of all proposals, staff recommends awarding the PSA to Quality Engineering Solutions, Inc. (QES). QES demonstrated the strongest combination of technical expertise, relevant regional experience, and cost-effectiveness. The firm's proposed data collection methodology is consistent with the City's preference for technology-driven, objective PCI assessment, and their team's familiarity with San Diego region municipal pavement programs ensures efficient project execution and deliverables that meet City needs and state reporting requirements.

Staff recommends a five-year contract with QES to include the base fee of $42,030, all optional one-time tasks totaling $32,157.50, and $25,812.50 for as-needed services, for a total contract value of $100,000. The as-needed services will provide flexibility for data updates and supplemental tasks that may arise over the five-year contract term, such as additional GIS analysis, interim condition assessments for specific street segments, and supplemental reporting to support grant applications or SB-1 compliance. The City had budgeted $40,000 for the base scope; the total recommended contract value of $100,000 requires a budget appropriation of $60,000, which is included in the Fiscal Impact section of this report.

SB-1 Project List Update
On June 10, 2026, the City Council adopted Resolution 2026-063 approving the list of projects proposed to be funded by SB-1 for Fiscal Year 2026/27 and authorizing the City Engineer to submit the project list to the California Transportation Commission (CTC).

Upon review, the CTC determined that the resolution was missing two required elements that included the estimated useful life of the improvements and estimated completion schedule. The CTC has requested that the City amend the resolution to include this information to maintain eligibility for SB-1 funding.

There are no changes to the road segments and staff is presenting Resolution 2026-095 to amend Resolution 2026-063 to provide the required information. The project is anticipated to begin construction in late 2026 and be substantially complete by mid-2027.

Pavement rehabilitation and resurfacing improvements have an estimated useful life of 15 to 20 years, depending on traffic loading and ongoing maintenance.

Annual Pavement Program – Future Council Actions
Item L.2
July 15, 2026
Pavement Management Plan 2026

Page 5 of 7 ends

Upon completion of the 2026 PMP Update, the Consultant will deliver an updated citywide PCI database, a refreshed five-year Capital Improvement Program, and a priority project list identifying street segments recommended for maintenance or rehabilitation in fiscal year 2026-27 and beyond. The annual pavement program will then follow the City's standard capital project delivery process:
• City staff will use the 2026 PMP priority project list to select streets for the annual pavement maintenance contract, balancing PCI priority, zone-based maintenance equity, available funding, and project bundling efficiency (annually). • Staff will prepare construction bid documents and advertise the project publicly (2- 3 months).
• Staff will return to City Council with bid results and a recommendation to award the construction contract. Council will be asked to authorize the City Manager to execute the construction contract and approve a construction contingency (4-5 months). • Staff will return to City Council annually to provide updates on overall pavement conditions and updates to the 5-Year PMP (every 5 years).

CEQA COMPLIANCE STATEMENT:

Authorization of a Professional Services Agreement for pavement management consulting services is not a project subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378. The pavement condition assessment and planning activities authorized by this agreement are advisory in nature and do not result in a direct or reasonably foreseeable commitment to a specific course of action that would have a significant physical effect on the environment. Individual capital improvement projects identified in the resulting five-year plan will be subject to CEQA review at the time of project approval.

FISCAL IMPACT:

This item authorizes the City Manager to execute a Professional Services Agreement with QES for the 2026 Citywide Pavement Condition Assessment and Five-Year Pavement Management Program Update. The breakdown of QES costs, by task includes:

Scope Fee
Base (Tasks 1-8) $42,030.00
Item L.2
July 15, 2026
Pavement Management Plan 2026

Page 6 of 7 ends

Optional Task 4A – Pavement Marking and Striping
Condition $9,450.00
Optional Task 4B – ADA Curb Ramp Condition $3,465.00
Optional Task 4C – Utility Access Locations and
Monuments $9,450.00
Optional Task 4D – Sign Inventory $4,725.00
Optional Task 4E – Painted Curb Inventory $1,102.50
Optional Task 4F – Sidewalk/Pathway Inventory $3,465.00 Optional Task 4G – Pavement Data Viewing Platform $0.00 Optional Task 4H – Pavement Maintenance Zones $500.00
TOTAL $74,187.50
As-Needed Services $25,812.50
Total 5-Year Contract $100,000
The FY 2026 City budget appropriated $40,000 in the Gas Tax-Engineering Professional Services Fund Account (2026510.65300.L) for the pavement management update. Staff recommends that the contract be awarded for the base fee ($42,030.00), all optional onetime tasks ($32,157.50), and as-needed services ($25,812.50) for a total not to exceed price of $100,000 over five-years. There are sufficient funds available is the Gas Tax Fund to cover the additional $60,000 needed.

WORK PLAN:

The 2026 Pavement Management Program Update is included as a Transportation and Mobility priority in the Fiscal Year 2026/27 Council Work Plan, consistent with the City's five-year PMP update cycle and SB-1 compliance requirements.

OPTIONS:
• Approve staff recommendation.
• Provide alternative directions.

CITY STAFF RECOMMENDATION:

Staff recommends that the City Council adopt Resolution 2026-091:

1. Authorizing the City Manager to execute a Professional Services Agreement with Quality Engineering Solutions, Inc. (QES) for a Citywide Pavement Condition Assessment, Five-Year Pavement Management Program Update, and RoadwayRelated Asset Management Services, in a not to exceed amount of $100,000.

Item L.2
July 15, 2026
Pavement Management Plan 2026

Page 7 of 7 ends

2. Approving a Budget Appropriations increase in the amount of $60,000 to Gas TaxEngineering Professional Services Fund Account (2026510.65300.L)

3. Authorizing the City Treasurer to amend the FY 2026/27 Adopted Budget accordingly.

Staff also recommends that the City Council adopt Resolution 2026-095:

1. Amending Resolution 2026-063 to include the estimated useful life of improvements and estimated completion schedule for the FY 2026/27 SB-1 funded pavement resurfacing projects as required by the California Transportation Commission, and authorize the City Engineer to submit the updated resolution. _________________________
Alyssa Muto, City Manager
Attachments:

1. Resolution 2026-091

2. Resolution 2026-095
Item L.2
ATTACHMENT 1
RESOLUTION 2026-091

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOLANA BEACH, CALIFORNIA, AUTHORIZING THE CITY

MANAGER TO EXECUTE A PROFESSIONAL SERVICES

AGREEMENT WITH QUALITY ENGINEERING SOLUTIONS,
INC. (QES) FOR CITYWIDE PAVEMENT CONDITION

ASSESSMENT, FIVE-YEAR PAVEMENT MANAGEMENT

PROGRAM UPDATE, AND ROADWAY-RELATED ASSET

MANAGEMENT SERVICES AND AUTHORIZING RELATED

BUDGET AMENDMENTS
WHEREAS, The Engineering Department is responsible for the management, condition assessment, and long-term planning of the City's approximately 46.4 centerline miles of paved roadway; and
WHEREAS, the City manages the pavement network using a data-driven Pavement Management Program (PMP), which uses the Pavement Condition Index (PCI) to evaluate road conditions, prioritize treatments, and forecast long-term capital needs; and
WHEREAS, consistent with State Senate Bill 1 (SB-1, Road Repair and Accountability Act of 2017) and San Diego Regional Transportation Sales Tax (TransNet) requirements, the City is required to maintain an up-to-date PMP to remain eligible for state and regional pavement funding; and
WHEREAS, the City issued a Request for Proposals in May 2026, for professional consulting services to prepare the 2026 Citywide Pavement Condition Assessment and Five-Year Pavement Management Program Update, including optional services for GIS and asset management of roadway-related assets; and
WHEREAS, the City received three proposals from Willdan Engineering, Quality Engineering Solutions, Inc. (QES), and MDS Technologies, Inc. (MDST) by the proposed deadline; and
WHEREAS, proposals were evaluated based upon qualifications, experience, project approach, familiarity with applicable state and regional funding requirements, project personnel, and fee; and
WHEREAS, staff determined that QES submitted the proposal providing the best overall value to the City and is qualified to perform the required services; and NOW, THEREFORE, the City Council of the City of Solana Beach, California, does resolve as follows:

Item L.2
Resolution 2026-091
PSA for Pavement Management Plan

Page 2 of 2 ends

1. That the above recitations are true and correct.

2. That the City Council authorizes the City Manager to execute a Professional Services Agreement with Quality Engineering Solutions, Inc. (QES) for a Citywide Pavement Condition Assessment, Five-Year Pavement Management Program Update, and Roadway-Related Asset Management Services, in a not to exceed amount of $100,000.

3. That the City Council approves a Budget Appropriations increase in the amount of $60,000 to Gas Tax-Engineering Professional Services Fund Account (2026510.65300.L).

4. That the City Council authorizes the City Treasurer to amend the FY 2026/27 Adopted Budget accordingly.

PASSED AND ADOPTED this 15th day of July 2026, at a regular meeting of the City Council of the City of Solana Beach, California by the following vote:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOLANA BEACH, CALIFORNIA, ADOPTING A LIST OF
PROJECTS FOR FISCAL YEAR 2026/27 FUNDED BY SB1:

THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB1, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and
WHEREAS, the City, will receive an estimated $365,377 in RMRA funding in Fiscal Year 2026/27 from SB1; and
WHEREAS, this is the tenth year in which the City is receiving SB1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB1; and
WHEREAS, the City has undergone a robust public process to ensure public input into the City's transportation priorities and the project list; and WHEREAS, the City used a Pavement Management System to develop the SB1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community's priorities for transportation investment; and WHEREAS, the funding from 881 will help the City maintain and rehabilitate, through overlays and digouts, portions of at least nine (9) streets throughout the City this year and many similar projects into the future; and
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City's streets and roads are in good condition and this revenue will help the City increase the overall quality of the road system and over the next decade will help upgrade and improve the conditions of City streets and roads; and Item L.2
Resolution 2026-095
SB1 Project List

Page 3 of 3 ends

WHEREAS, roads included in the FY 2026/27 Pavement Management Program were selected based on Pavement Condition Index scores and field observations by City staff, including Stevens Avenue, which has been impacted from adjacent development; and
WHEREAS, in May 2026, the City approved cost sharing agreements with HG Fenton (Solana Highlands) and Shay Homes (Ocean Ranch) per Resolutions 2026-040 and 2026-041 for improvements to South Nardo Avenue, and the City's funding contribution is necessary to complete the full roadway segment; and WHEREAS, the SB1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive benefits within the City and the County.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Solana Beach, California, as follows:

1. That the foregoing recitals are true and correct.

2. That Resolution 2026-095 supersedes and replaces Resolution 2026-063, adopted on June 10, 2026, in its entirety.

3. That the City Council approves the following list of newly funded Pavement Management Program projects that will be funded in-part or solely with Fiscal Year 2026/27 SB1 Road Maintenance and Rehabilitation Account revenues. The project will rehabilitate pavement through asphalt overlays on the streets listed below. Construction is anticipated to begin in late 2026 and be substantially complete by mid-2027. Once complete, the project will extend the useful life of the road segments by 15 to 20 years.

1. Santa Alicia: from Santa Rosita to Santa Victoria

2. Santa Hidalga: from Santa Inez to Santa Queta

3. Santa Florencia: from Santa Inez to Santa Olivia

4. Highland Drive: from Solana Drive to San Andres Drive

5. Valley Avenue: from Genevieve Street to Hernandez Street and from Stevens Avenue to Via de la Valle

6. Solana Hills Drive: from Lomas Santa Fe Drive to Dell Street

7. Santa Helena: from Sun Valley Road to end at San Elijo Lagoon

8. South Nardo Avenue: from Corto Street to Stevens Avenue

9. Stevens Avenue: from South Nardo Avenue to Valley Avenue

4. That the City Council authorizes the City Engineer to submit the project list of projects for fiscal year 2026/27 funded by SB1: the Road Repair and Accountability Act of 2017 to the California Transportation Commission.

PASSED AND ADOPTED this 15th day of July, 2026, at a regularly scheduled meeting of the City Council of the City of Solana Beach, California by the following vote:

Item L.2
Resolution 2026-095
SB1 Project List

Page 3 of 3 ends

Overview
July 15, 2026
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Slide 2
Item L.2
Pavement Management Program
1 Establish Baseline
Inventory all streets and
pavement types city-wide
to determine PCI.
2 Forecast Deterioration
Model how pavement
degrades over time using
PCI data.
3 Prioritize Treatments
Select cost-effective repair
methods based on
condition.
4 Build 5-Year Project
List
Plan and fund projects to
maintain or improve the
citywide PCI.

Roads are evaluated every five years using the Pavement Condition Index (PCI).

Pavement Management Program
July 15, 2026
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Slide 3
Item L.2
Pavement Condition Index (PCI)
What is PCI?
A standardized 0–100 scale rating pavement
condition based on observed surface distress.

Lower scores indicate greater deterioration
requiring more intensive (and costly) treatments.
2021 Citywide PCI – 73.4

71.9 Arterial

74.4 Local
PCI
Range Condition
2021 % by
Street Mileage Treatment
86–100 Excellent 38.4% No Action / Routine Maintenance
71–85 Very Good 22.0% Slurry Seal / Crack Seal
56–70 Good 18.8% Slurry Seal / Thin Overlay
41–55 Fair 15.1% Mill & Overlay
26–40 Poor 4.8% Reconstruction
11–25 Very Poor 0.9% Extensive Reconstruction
0–10 Failed 0.0% Full Depth Removal & Replacement
Pavement Condition Index (PCI)
July 15, 2026
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Slide 4
Item L.2
Historical PCI Findings (2016–2021)
Slurry seal and overlay investments over the past several years have had a measurable positive effect on street conditions citywide. Similar efforts will be needed to proactively reach and maintain a "preventive maintenance" state (weighted PCI ≥ 75).

Road Class Miles
PCI
2016
PCI
2021 Change
Arterial/Collector 17.1 mi 65.5 71.9 +6.4 ▲
Local 29.2 mi 69.0 74.4 +5.4 ▲
Citywide 46.3 mi 67.0 73.4 +6.4 ▲
Target: Weighted PCI ≥ 75
Sustained investment in pavement maintenance is required to reach and hold this threshold.
66 72 69
74 67
73 60
62 64
66 68
70 72
74 76
78 2016 2021
Arterial/Collector Local Citywide
Source: Solana Beach Pavement Management Program, 2021 survey. Next citywide evaluation underway (2026).

Historical PCI (2016–2021)
July 15, 2026
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Slide 5
Item L.2
TransNet Funding
Breakdown of City’s Roadway
• 46.4 centerline miles of roadway
• 332 roadway segments
• 8.3+ million square feet of pavement
What is a PMP? Why do we need it? How often do we
complete it?
A data-driven program the City uses to evaluate pavement conditions, prioritize repairs, and plan maintenance over time.

Protects public investment, extends pavement life, and ensures transparent, objective decision making.

A Citywide analysis is conducted every 5 years, but the model is updated annually to reflect CIP Projects that have been completed.
5-Year PMP Update Process
July 15, 2026
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Slide 6
Item L.2
TransNet Funding
Base Scope of Work
Perform a Citywide pavement condition assessment, creating a database with pavement condition indexes (PCI) and
maintenance history, and preparing a recommended 5-year pavement management plan.

RFP Results
• Request for Proposals was released in May 2026 and
closed in June 2026
• City received 3 responsive proposals

1. Willdan Engineering

2. Quality Engineering Solutions, Inc.

3. MDS Technologies, Inc.

Optional Asset Management Related Tasks
A. Pavement Marking and Striping Condition
B. ADA Curb Ramp Condition
C. Utility Access Locations and Monuments
D. Sign Inventory
E. Painted Curb Inventory
F. Sidewalk/Pathway Inventory
G. Pavement Data Viewing Platform
H. Pavement Maintenance Zones
What is the projected timeline?
• Notice to Proceed – August 2026
• Citywide Evaluation – September-October 2026
• Return to Council for Updates – November 2026
• Begin Rehabilitation Program – November 2026
• Optional Tasks – Concurrent with Citywide Evaluation
• Draft PMP – Early 2027
Request for Proposals
July 15, 2026
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Slide 7
Item L.2
Optional Asset Management Related Tasks TransNet Funding July 15, 2026
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Slide 8
A
B
C
D F
E
G
H
ADA Curb Ramps
Document presence of curb ramps and note
visible deficiencies.

Sign Inventory
Collect and document location of public signs
and condition.

Pavement Data Viewer
Access to pavement data viewer platform to
calibrate pavement model.

Painted Curb
Collect and document location, color, length,
and condition of painted curb.

Pavement Marking & Striping
All pavement marking and striping along
public roadways including condition.

Pavement Zones
Prepare maintenance zones for budget
balance and PCI averaging.

Utility Access & Monuments
Collect and document location of utility
features and monuments.

Sidewalk/Pathway
Collect and document location and condition
of City access paths.

ASSET
MGMT
Item L.2
Why Asset Management Matters
Regular City Council Meeting
July 15, 2026 Slide 9
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Benefit Why It Matters
Protect Public Investment Infrastructure assets represent millions of dollars in public investment. Knowing what assets exist and their condition allows the City to maximize service life and reduce long-term replacement costs.

Prioritize Maintenance Condition-based inventories help staff identify deficiencies before they become failures, allowing limited resources to be directed where they provide the greatest benefit.

Support Grant Funding
Opportunities
Many state and federal grant programs require data-driven justification, documented asset conditions, ADA compliance information, or demonstrated maintenance needs. Asset inventories strengthen grant applications and improve competitiveness.

Improve Public Access &
Safety
Inventories of ADA curb ramps, sidewalks, pathways, signage, striping, and painted curbs help ensure infrastructure remains accessible, safe, and compliant with evolving regulations.

Enhance Transparency &
Accountability
Objective asset data allows the City to communicate infrastructure needs, justify expenditures, and demonstrate responsible stewardship of public funds.

Support Future Capital
Planning
Reliable asset data improves CIP development, budgeting, utility coordination, pavement preservation planning, and emergency response efforts.

Modern & Efficient City
Through GIS integration, information can be shared not just cross-departmentally, but within the region and among our operating agencies. This can be used to assist with public records requests, performing real-time updates in the field, and providing transparency to the general public.

Item L.2
RFP Results
Regular City Council Meeting
July 15, 2026 Slide 10
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Proposer Base Fee Optional Tasks Fee Total Fee (with Optional Tasks)
Willdan Engineering $76,501.00 $374,134.00 $450,635.00
Quality Engineering Solutions, Inc.
(QES) $42,030.00 $32,157.50 $74,187.50
MDS Technologies, Inc. (MDST) $32,750.00 $36,150.00 $68,900.00 Staff recommends executing a Professional Services Agreement (PSA) with Quality Engineering Solutions, Inc. (QES) for the Base Task, All Optional Tasks, and an As-Needed Budget.

Item L.2
Regular City Council Meeting
• Currently budgeted amount for PMP Update is $40,000
• Base Fee - $42,030.00
• Optional Tasks - $32,157.50
• As-Needed Services - $25,812.50
• TOTAL 5-Year - $100,000.00
• City Staff recommends executing a PSA for $100,000 to include Base, All Optional Tasks, and Option for As-Needed Services • Appropriate $60,000 from Gas Tax to Fund (Account No. 2026510.65300.L)
Fiscal Impact
July 15, 2026 Slide 11
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Scope Fee
Base (Tasks 1-8) $42,030.00
Optional Task 4A – Pavement Marking and
Striping Condition $9,450.00
Optional Task 4B – ADA Curb Ramp Condition $3,465.00
Optional Task 4C – Utility Access Locations and
Monuments $9,450.00
Optional Task 4D – Sign Inventory $4,725.00
Optional Task 4E – Painted Curb Inventory $1,102.50
Optional Task 4F – Sidewalk/Pathway Inventory $3,465.00 Optional Task 4G – Pavement Data Viewing
Platform $0.00
Optional Task 4H – Pavement Maintenance
Zones $500.00
PROPOSAL TOTAL $74,187.50
AS-NEEDED SERVICES $25,812.50
TOTAL 5-YEAR CONTRACT $100,000.00
Item L.2
Regular City Council Meeting
• On June 10, 2026, City Council adopted Resolution 2026-063 • Approving list of projects proposed to be funded by SB-1 for FY26-27 and authorizing City Engineer to submit the project list to California Transportation Commission (CTC)
• Upon review, the CTC determined the Resolution was missing two required elements: (1) estimated useful life of the improvements and (2) estimated completion schedule.
• No changes to road segments or amount of funding
SB-1 Project List Update
July 15, 2026 Slide 12
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Item L.2
Recommended Actions
1 Resolution 2026-091 — New QES PSA
Authorize the City Manager to execute a Professional Services Agreement with Quality Engineering Solutions, Inc. (QES) for a Citywide Pavement Condition Assessment and Five-Year Pavement Management Program Update, and Roadway Related Asset Management Services, in a not to exceed amount of $100,000.00. 2 Budget Appropriation
Approve a Budget Appropriations increase in the amount of $60,000 to Gas Tax– Professional Services Account 2026510.65300L.

Recommendations
July 15, 2026
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Slide 13
OPTIONS:

1. Approve Staff Recommendation as-is (Base + ALL Optional + AsNeeded Support).

2. Authorize the Base Scope, without Optional Tasks

3. Authorize the Base Scope, with specific Optional Tasks

4. Provide Alternative Direction
3 Budget Authorization
Authorize the City Treasurer to amend the FY 2026/27 adopted budget accordingly.

Item L.2
Recommended Actions
1 Resolution 2026-095 — Amending Resolution 2026-063
Amend Resolution 2026-063 to include the estimated useful life of improvements and estimated completion schedule for the FY26-27 SB-1/RMRA funded pavement resurfacing projects as required by the California Transportation Commission (CTC), and authorize City Engineer to submit the updated resolution.

Recommendations
July 15, 2026
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Slide 14
Item L.2
Regular City Council Meeting
Questions / Comments
July 15, 2026 Slide 15
L.2 Citywide PCI Evaluation and 5-Year PMP Update
Item L.2
COUNCIL ACTION:
_______________________________________________________________________ AGENDA ITEM # L.3.

STAFF REPORT

CITY OF SOLANA BEACH
TO: Honorable Mayor and City Councilmembers
FROM: Alyssa Muto, City Manager
MEETING DATE: July 15, 2026
ORIGINATING DEPT: City Manager’s Department
SUBJECT: Submission of a Ballot Measure Updating the Transient Occupancy (Hotel) Tax to the Voters

BACKGROUND
Earlier this year, the City conducted an extensive community survey of its residents regarding their priorities for City projects, programs and services. This survey identified several areas which residents felt were a priority. In order to fund these priority projects and services, and maintain a sustainable funding source for ongoing citywide operations, the City will need additional general fund revenue that is controlled locally. Now more than ever, we cannot depend on the State or Federal governments to take care of our local needs. A stable source of locally controlled funding can help to provide essential services to our residents and local businesses.

Solana Beach’s economy is based in strong part on visitors and tourism. Ensuring visitors who stay in local hotels and short-term lodging contribute towards addressing the impacts of tourism, is a responsible long-term approach for the City and community’s fiscal stability and quality of life.

The City has a transient occupancy (hotel) tax at the rate of 13% pursuant to Chapter 3.36 of the Solana Beach Municipal Code (“Transient Occupancy Tax”), which has not been updated in approximately 20 years. If adopted, Resolution 2026-100 will submit to the voters at the November 3, 2026 general municipal election a ballot measure that, if approved by a majority of the voters (50% + 1), would update the Transient Occupancy Tax and increase the tax rate by 1%. The increase would provide approximately $250,000 annually until ended by voters.

DISCUSSION
As stated above, the City conducted public outreach to its residents to determine their priorities as it relates to projects and services. This survey identified the following priorities:
• Keeping parks, beaches, and trails safe, clean, and well-maintained • Keep trash and pollution out of lagoons, local waterways, off beaches Item L.3
July 15, 2026
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• Keep public restrooms well-maintained and clean
• Upgrade life-saving emergency medical equipment and technology • Provide public safety services
• Provide lifeguards at local beaches
• Upgrade Marine Safety Lifeguard Center to improve emergency response, water rescue, community safety
• Provide restrooms, benches at local parks, beaches, trails, where needed • Protect Solana Beach’s long-term fiscal sustainability • Enhance community spaces
• Providing additional local parks, open space and amenities • Support the junior lifeguard program
• Expand youth & senior facilities and programs
In order to fund these priorities and other general City services, the City will need additional general fund revenue that is locally controlled. As stated above, the Transient Occupancy Tax is currently at 13% and to partly fund these priorities, the attached resolution, if adopted, would submit a ballot measure proposing to increase the rate by 1% so that the total rate is 14% and, further, proposing certain updates to the Transient Occupancy Tax (“TOT Measure”). The TOT Measure is estimated to generate approximately $250,000 annually in revenue.

Accordingly, a resolution has been prepared to submit the TOT Measure to the voters.

Pursuant to Proposition 218 requirements, this resolution requires a 2/3 vote of the City Council (i.e., 4/5 vote) to place the TOT Measure on the Tuesday, November 3, 2026, ballot.

This resolution is attached to this report for Council’s consideration and would do the following:

1. Submitting a ballot measure concerning the TOT Measure This Resolution includes the ballot question and the ordinance making the changes being proposed by the TOT Measure. The ballot question must be no more than 75 words and impartial. Because the TOT Measure involves a tax increase, it must also contain the rate, estimated revenue, and duration of the TOT Measure. Accordingly, the ballot question included with this resolution is as follows:

To provide general city services such as keeping beaches, parks, trails, and restrooms safe, clean and well-maintained; preventing trash from entering local beaches/lagoons; upgrading emergency response/safety facilities, shall City of Solana Beach’s measure updating the 20-year-old transient occupancy tax (paid only by hotel/short-term vacation rental guests as specified in ordinance) and increasing the rate by 1% be adopted, providing approximately $250,000 annually until ended by voters, with all money locally controlled?
Item L.3
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2. Requesting the San Diego County Board of Supervisors to consent and agree to consolidate the election relating to the TOT Measure with the Statewide General Election.

This resolution requests that the Board of Supervisors consent and agree to place TOT Measure appears on the ballot for the November 3, 2026, election as part of the General Municipal Election.

3. Provides for primary arguments in favor and against rebuttals, requesting an impartial analysis from the City Attorney.

The City Council will need to decide who amongst its members (or no one at all) may submit a primary argument concerning the TOT Measure. Primary arguments may only be 300 words and must be submitted to the City Clerk’s office by 5:30 p.m. on August 3, 2026.

The resolution is currently drafted to provide that all City Council members may, but are not required, to submit a primary argument. This resolution also authorizes the filing of rebuttal arguments, which may not exceed 250 words. Rebuttal arguments are due by 5:30 p.m. on August 12, 2026.

Finally, this resolution requests that the City Attorney draft an impartial analysis of the TOT Measure.

CEQA COMPLIANCE STATEMENT
The adoption of the attached resolutions and ordinance is not in-and-of-itself a “project” pursuant to the California Environmental Quality Act, Public Resources Code section 21000 et seq., including without limitation California Code of Regulations, Title 14, Sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the adoption of the resolutions and ordinance itself may have a significant effect on the environment. These resolutions and ordinance relate to a transient occupancy tax and relates to the creation of City funding mechanisms and City fiscal activities, which does not involve any commitment to any project which may result in a potentially significant physical impact on the environment.

FISCAL IMPACT
Biennial general municipal election costs are determined by the number of registered voters, the Registrar of Voter’s costs for services, and the City’s costs for its required publication notices, translations, etc. The cost to place the measure on the November ballot is estimated at approximately $55,000 based on the last estimate from the County Registrar of Voters (which would be in addition to the costs for the election based on two candidates running for each of the two offices of approximately $20,000). Currently, the Fiscal Year 2022-23 Budget allocates $65,000 towards the General Election. If the Council chooses to place the sales tax measure on the ballot, Staff will bring the actual costs, when known, back to the City Council to appropriate the funds.

Item L.3
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The Transient Occupancy Tax is currently at 13%, and if adopted, the ballot measure proposes to increase the rate by 1% so that the total rate is 14%. The TOT Measure is estimated to generate approximately $250,000 annually in revenue.

WORK PLAN N/A

OPTIONS
• Approve staff recommendation.
• Provide alternative directions.

CITY STAFF RECOMMENDATION
Recommendation: That the City Council:

1. Adopt Resolution 2026-100 submitting a ballot measure concerning the Transient Occupancy Tax (TOT) update and increase ordinance to the voters. _________________________
Alyssa Muto, City Manager
Attachments:

1. Resolution 2026-100 Submission of

2. Ordinance 545: Transient Occupancy Tax (TOT) Update and Increase Item L.3
RESOLUTION 2026-100

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SOLANA BEACH, CALIFORNIA, CALLING AND GIVING NOTICE

OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO
BE HELD ON TUESDAY, NOVEMBER 3, 2026 FOR THE

SUBMISSION TO THE VOTERS A QUESTION RELATING TO A
MEASURE UPDATING THE CITY’S TRANSIENT OCCUPANCY
(HOTEL) TAX AND INCREASING THE TRANSIENT OCCUPANCY
TAX RATE FROM 13% TO 14%; REQUESTING THE

CONSOLIDATION OF THE SAME WITH THE STATEWIDE
GENERAL ELECTION TO BE HELD ON THE SAME DATE;

SETTING FORTH RULES AND REGULATIONS FOR
ARGUMENTS RELATED TO SUCH MEASURE; AND

REQUESTING THE CITY ATTORNEY TO DRAFT AN IMPARTIAL

ANALYSIS REGARDING SUCH MEASURE
WHEREAS, the City of Solana Beach (“City”) conducted public outreach to its residents in the Spring 2026 to determine what they find to be important priorities for the City and found that the following issues are priorities for the City’s residents:

1. Keeping parks, beaches, and trails safe, clean, and well-maintained

2. Keep trash and pollution out of lagoons, local waterways, off beaches

3. Keep public restrooms well-maintained and clean

4. Upgrade life-saving emergency medical equipment and technology

5. Provide public safety services

6. Provide lifeguards at local beaches

7. Upgrade Marine Safety Lifeguard Center to improve emergency response, water rescue, community safety

8. Provide restrooms, benches at local parks, beaches, trails, where needed

9. Protect Solana Beach’s long-term fiscal sustainability

10. Enhance community spaces

11. Providing additional local parks, open space and amenities

12. Support the junior lifeguard program

13. Expand youth & senior facilities and programs; and
WHEREAS, to fund these priorities, to maintain the ongoing coastal operations, Item L.3
Resolution 2026-100
Ballot Measure Updating the Transient Occupancy Tax

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and other general City services, the City has explored additional sources of general fund revenue; and
WHEREAS, Solana Beach’s local economy is based in strong part on visitors and tourism and ensuring that visitors who stay in local hotels and short-term lodging contribute towards addressing the impacts of tourism, is a responsible long-term approach for the City and community’s fiscal stability and quality of life; and WHEREAS, the City cannot depend on the State or Federal Government to take care of local needs and a stable source of locally controlled funding can help to provide essential services for residents and local businesses; and WHEREAS, the City has a 20-year-old transient occupancy tax pursuant to Chapter 3.36 of Title 3 of the Solana Beach Municipal Code at the rate of 13% (“TOT”); and
WHEREAS, the TOT is a general tax; and
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election is to be held on November 3, 2026, for the election of Municipal Officers; and
WHEREAS, on June 24, 2026, the City Council of the City of Solana Beach called a General Municipal Election to be held on November 3, 2026 for the purpose of the election of two Members of the City Council and requested that the Board of Supervisors of the County of San Diego consent to the consolidation of such General Municipal Election with the Statewide General Election to be held on the same date (“General Municipal Election”); and
WHEREAS, the City Council desires to submit to the voters at the General Municipal Election a question relating to a ballot measure that, if approved by a majority of the voters (50% +1), amends Chapter 3.36 of Title 3 of the Solana Beach Municipal Code to update the TOT ordinance and to increase the TOT rate by 1% which will provide approximately $250,000 annually until ended by voters; and WHEREAS, this measure will provide funding to address community identified priorities such as preventing trash from entering local beaches and lagoons, keeping beaches and parks, and trails safe, clean, and well-maintained, keeping public restrooms well-maintained and clean, maintaining lifeguards at local beaches and upgrading lifesaving emergency medical equipment and technology.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Solana Beach as follows:

SECTION 1. Recitals. The above recitals are true and correct and incorporated herein as findings.

Item L.3
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SECTION 2. Environmental. The City Council hereby determines that this Resolution is not in-and-of-itself a “project” pursuant to the California Environmental Quality Act, Public Resources Code section 21000 et seq., including without limitation California Code of Regulations, Title 14, Sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the adoption of the ordinance itself may have a significant effect on the environment. This Resolution relates to a transient occupancy tax and relates to the creation of City funding mechanisms and City fiscal activities, which does not involve any commitment to any project which may result in a potentially significant physical impact on the environment.

SECTION 3. Submission of Measure. That pursuant to the requirements of the laws of the State of California relating to general law cities, there is called and ordered to be held in the City of Solana Beach, California, on Tuesday, November 3, 2026, a General Municipal Election for the purpose submitting to the voters of the City of Solana Beach a question relating to a ballot measure that, if approved by a majority of the voters (50% +1), amends Chapter 3.36 of Title 3 of the Solana Beach Municipal Code to update the Cit’s transient occupancy tax and to increase the transient occupancy tax rate by 1%, which will provide approximately $250,000 annually until ended by voters and is a general tax (“Measure”). The question relating to this Measure to be submitted to the voters is provided in Section 4 below.

SECTION 4. Question. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election on Tuesday, November 3, 2026, the following question:

YES To provide general city services such as keeping beaches, parks, trails, and restrooms safe, clean and wellmaintained; preventing trash from entering local beaches/lagoons; upgrading emergency response/safety
facilities, shall City of Solana Beach’s measure updating the 20-year-old transient occupancy tax (paid only by
hotel/short-term vacation rental guests as specified in ordinance) and increasing the rate by 1% be adopted,
providing approximately $250,000 annually until ended by voters, with all money locally controlled?
NO
Item L.3
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SECTION 5. Complete Text of Measure. That the proposed complete text of the Measure submitted to the voters is attached as Exhibit A.

SECTION 6. Vote Requirement. That the vote requirement for the Measure to pass is a majority (50%+1) of the votes cast.

SECTION 7. Form and Content. That the ballots to be used at the election shall be in form and content as required by law.

SECTION 8. Coordination. That the City Clerk is authorized, instructed and directed to coordinate with the County of San Diego Registrar to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

SECTION 9. Polls. That the polls for the election shall be open as provided in Resolution No. 2026-036 and applicable law.

SECTION 10. Applicable Law. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 11. Notice. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form, and manner as required by law.

SECTION 12. City Clerk Administration. That the City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

SECTION 13. Consolidation.
(a) That pursuant to the requirements of Elections Code Section 10403, the Board of Supervisors of the County of San Diego is hereby requested to consent and agree to the consolidation of the General Municipal Election with the Statewide General Election on Tuesday, November 3, 2026, for the purpose of submitting the Measure to the voters of the City of Solana Beach as described in this Resolution. The question relating to the Measure to be submitted to the voters is provided in Section 4 above. (b) That the County of San Diego election department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating such election, including, but not limited to, Elections Code Section 10418. (c) That the Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the Item L.3
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consolidated election.
(d) That the City of Solana Beach recognizes that additional costs will be incurred by the County of San Diego by reason of this consolidation and agrees to reimburse the County of San Diego for any costs.
(e) That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of San Diego.

SECTION 14. Arguments.
(a) Primary Arguments. That the City Council authorizes, but does not require, all members of the City Council to file (a) written argument(s) In Favor of or Against City measure(s) not exceeding 300 words, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California. The arguments may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. The arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by forms provided by the City Clerk.
(b) Rebuttal Arguments.
(i) That pursuant to Elections Code Section 9285, when the City Clerk has selected the arguments in favor and against the Measure (not exceeding 300 words each) which will be printed and distributed to the voters, the election official shall send a copy of an argument in favor of the proposition to the authors of any argument against the Measure and a copy of an argument against the Measure to the authors of any argument in favor of the Measure immediately upon receiving the arguments. (ii) The author or a majority of the authors of an argument relating to a city measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument.
(iii) A rebuttal argument may not be signed by more than five authors.
(iv) The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing primary arguments. The rebuttal arguments shall be accompanied Item L.3
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by forms provided by the City Clerk.
(v) Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.
(vi) That the provisions of this Section 14 shall apply only to the election to be held on November 3, 2026.

SECTION 15. Impartial Analysis. That the City Council directs the City Clerk to transmit a copy of the Measure to the City Attorney.
(a) The City Attorney shall prepare an impartial analysis of the Measure not exceeding 500 words showing the effect of the Measure on the existing law and the operation of the Measure.
(b) The analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the governing body of the City.
(c) In the event the entire text of the Measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point type, the following: "The above statement is an impartial analysis of Ordinance or Measure __. If you desire a copy of the ordinance or measure, please call the election official's office at 858-720-2400 or email [email protected] and a copy will be mailed or emailed at no cost to you."
(d) The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments.

SECTION 16. Implementation. The City Clerk and City Manager are authorized to take all actions as necessary to effectuate the purposes of this Resolution and the election. The City Manager is authorized to make any typographical, clerical, and nonsubstantive corrections and such other revisions as may be required to this Resolution and its exhibits/attachments.

SECTION 17. That the City Clerk shall certify to the passage and adoption of this Resolution.

SECTION 18. That the City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

PASSED, ADOPTED, AND APPROVED by the City Council of the City of Solana Beach, California, at a regular meeting thereof this 15th day of July, 2026 by the following vote to wit:

Item L.3
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AYES:

NAYS:

ABSTAIN:

ABSENT:

APPROVED:
____________________________________
Lesa Heebner, Mayor of the
City of Solana Beach, California
ATTEST:
_______________________________
Angela, City Clerk of the
City of Solana Beach, California
Item L.3
4917-2459-5892 v2
ORDINANCE 545

AN ORDINANCE OF THE CITY OF SOLANA BEACH,
CALIFORNIA, AMENDING CHAPTER 3.36 OF TITLE 3 OF

THE SOLANA BEACH MUNICIPAL CODE TO UPDATE
THE CITY’S TRANSIENT OCCUPANCY (HOTEL) TAX AND

TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE
FROM 13% TO 14%
WHEREAS, Solana Beach’s local economy is based in strong part on visitors and tourism and ensuring that visitors who stay in local hotels and short-term lodging contribute towards addressing the impacts of tourism, is a responsible long-term approach for the City and community’s fiscal stability and quality of life; and WHEREAS, the City cannot depend on the State or Federal Government to take care of local needs and a stable source of locally controlled funding can help to provide essential services for residents and local businesses; and WHEREAS, the City of Solana Beach (“City”) imposes, upon guests of hotels, motels, inns, tourist homes, and other temporary transient accommodations, a transient occupancy tax of 13% of the rent charged by an operator of such accommodations pursuant to Chapter 3.36 of Title 3 of the Solana Beach Municipal Code (“TOT”) wherein the revenue are spent as follows:

A. TOT revenue collected pursuant to Solana Beach Municipal Code (“SBMC”) Section 3.36.010(A) is used for general governmental purposes.

B. TOT revenue collected pursuant to SBMC Sections 3.36.010(B),

3.36.010(C), and 3.36.010(D) is used for the purposes described in SBMC Section 3.36.015(B); and
WHEREAS, this Ordinance increases the TOT tax rate by 1% and provides that this 1% increase is a general tax in which the revenue is to be used for general governmental purposes; and
WHEREAS, this Ordinance updates and modernizes the TOT Ordinance; and WHEREAS, the TOT is only paid by transient guests who stay in local lodging facilities, and ensures tourists pay their fair share to use and benefit from the City’s services and amenities during their stay; and
WHEREAS, TOT revenues remain in the City, are controlled by the City, and are used for unrestricted general municipal purposes; and
WHEREAS, this measure will provide funding to address community identified priorities such as preventing trash from entering local beaches and lagoons, keeping beaches, parks, and trails safe clean, and well-maintained, keeping public restrooms wellmaintained and clean, maintaining lifeguards at local beaches and upgrading life-saving Item L.3
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4917-2459-5892 v2
emergency medical equipment and technology.

NOW, THEREFORE, the People of the City of Solana Beach, California, do hereby ordain as follows:

Section 1. Findings. The recitals set forth above are true and correct, and incorporated herein as findings by this reference.

Section 2. New Solana Beach Municipal Code (“SBMC”) Section 3.36.010.5.

Section 3.36.010.5 entitled “Transient Occupancy Tax Increase of 2026” is hereby added to Chapter 3.36 of Title 3 of the Solana Beach Municipal Code as follows:

Section 3.36.010.5 Transient Occupancy Tax Increase of 2026.

Beginning on January 1, 2027, for the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of one percent of the rent charged by the operator. The tax imposed by this section shall be in addition to the tax imposed by SBMC 3.36.010.

Such tax constitutes a debt owed by the transient to the city, which is extinguished only by payment to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient’s ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the city manager may require that such tax shall be paid directly to the city manager.

Section 3. New Section 3.36.015.5. A new Section 3.36.030.5 entitled “Utilization of tax revenues from tax imposed by SMBC 3.36.010.5” is hereby added to Chapter 3.36 of Title 3 of the Solana Beach Municipal Code as follows:

Section 3.36.030.5 Utilization of tax revenues from tax imposed by SMBC 3.36.010.5.

All revenues collected pursuant to the transient occupancy tax imposed by the city under SBMC 3.36.010.5 (as adopted by Ordinance No. 545) shall be used for general governmental purposes.

Section 4. Amendment to SBMC Section 3.36.030(A). Section 3.36.030(A) of Chapter 3.36 of Title 3 of the Solana Beach Municipal Code is hereby amended in its entirety as follows:
“Hotel” means any structure or any portion of any structure occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, including any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, short-term vacation rental, lodging house, rooming house, apartment house, dormitory, public or private club, mobile Item L.3
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4917-2459-5892 v2
home or house trailer at a fixed location or other similar structure or portion thereof. “Short-term vacation rental” includes any single-family dwelling, multi-family unit, bedroom of a primary residence, accessory dwelling unit, or junior accessory dwelling unit, which is rented to a transient pursuant to this chapter.

Section 5. Amendment to SBMC Section 3.36.030(E). Section 3.36.030(E) of Chapter 3.36 of Title 3 of the Solana Beach Municipal Code is hereby amended in its entirety as follows:
“Rent” means the consideration charged, whether or not received, for the occupancy of space in a hotel, valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. For the purposes of clarity, “rent” includes any cleaning fees, resort fees, parking fees, pet fees, extra guest fees, cancellation charges, WIFI/Internet charges, and any other fees, rates and charges as part of the total “rent” charged. However, any fees, rates and charges not collected directly by the operator, including service, booking and other transaction fees charged by hosting platforms, online travel companies, and third-party booking vendors, are excluded from the definition of “rent” for purposes of this Chapter.

Section 6. Amendment to SBMC Section 3.36.040. Section 3.36.040 of Chapter

3.36 of Title 3 of the Solana Beach Municipal Code is hereby amended in its entirety as follows:

Section 3.36.040 Collection of tax.

A. Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. The amount of tax shall be separately stated from the amount of rent charged, and each transient shall receive a receipt for payment from the operator. A duplicate receipt shall be kept by the operator. No operator of a hotel shall advertise or state in any manner, whether directly or indirectly, that the tax or any part thereof will be assumed or absorbed by the operator, or that it will be added to the rent, or that, if added, any part will be refunded except in the manner provided in this chapter. If the operator collects the rent but fails to collect the tax for any reason, the operator shall be responsible for paying the tax.

B. For purposes of this Section, if the operator uses a web- or application-based hosting platform, online travel company, or third-party booking vendor that facilitates rentals and payments for hotel rentals, the hosting platform, online travel company, or third-party booking vendor shall be considered an agent of the operator for purposes of collecting and remitting the tax to the City.

Item L.3
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Section 7. Amendment to SBMC Section 3.36.110. Section 3.36.110 of Chapter

3.36 of Title 3 of the Solana Beach Municipal Code is hereby amended in its entirety as follows:

Section 3.36.110 Records and inspection.

A. It shall be the duty of every operator liable for the collection and payment to the city of any tax imposed by this chapter to keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as he may have been liable for the collection of and payment to the city, which records the city manager shall have the right to inspect at all reasonable times.

B. Pursuant to Government Code Section 50990(b), the provisions of the Short-Term Rental Facilitator Act of 2025 (commencing at California Government Code Section 50990 et seq.) shall be applicable within the City of Solana Beach’s jurisdictional boundaries.

Section 8. Conflicts with Prior Ordinances. If the provisions in this Ordinance conflict in whole or in part with any other City regulation or ordinance adopted prior to the effective date, the provisions in this Ordinance will control.

Section 9. Declarative and Clarification of Existing Law. The People of Solana Beach hereby find and determine that Sections 4 and 5 of this Ordinance are declarative of, and clarify, existing law.

Section 10. Severability. If any section, subsection, paragraph, sentence, clause, phrase or term (each a “Provision”) in this Ordinance, or any Provision’s application to any person or circumstance, is held illegal, invalid or unconstitutional by a court of competent jurisdiction, all other Provisions not held illegal, invalid or unconstitutional, or such Provision’s application to other persons or circumstances, shall not be affected. The People of the City of Solana Beach hereby declare that they would have passed this Ordinance, and each Provision therein, whether any one or more Provisions be declared illegal, invalid or unconstitutional.

Section 11. Council Authority to Amend. Pursuant to California Elections Code Section 9217, the City Council has the right and authority to amend this Ordinance to further its purposes and intent (including, but not limited to, amendment for more efficient administration as determined by the City Council) in any manner that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIIIC of the California Constitution.

Section 12. Effective Date. Pursuant to California Constitution Article XIIIC, Section (2)(b) and California Elections Code Section 9217, this Ordinance shall be considered adopted on the date that the City Council declares that the voters of the City of Solana Beach have approved the Ordinance by a vote of no less than a majority of the votes cast by the electors voting at the General Municipal Election held on Tuesday, Item L.3
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November 3, 2026, and shall go into effect ten (10) days thereafter.

Section 13. Environmental. The City finds that the adoption of this Ordinance is not in-and-of-itself a “project” pursuant to the California Environmental Quality Act, Public Resources Code section 21000 et seq., including without limitation California Code of Regulations, Title 14, Sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the adoption of this Ordinance itself may have a significant effect on the environment. This Ordinance relates to a transient occupancy tax and relates to the creation of City funding mechanisms and City fiscal activities, which does not involve any commitment to any project which may result in a potentially significant physical impact on the environment.

Section 14. Execution. The Mayor is hereby authorized to attest to the adoption of this Ordinance by signing where indicated below.

I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED by the people of the City of Solana Beach voting on the 3rd day of November, 2026.
_________________________________
Lesa Heebner
Mayor
Attest:
_________________________________
Angela Ivey
City Clerk
Item L.3
From: Jill MacDonald <[email protected]> Sent: Monday, July 13, 2026 10:32 AM
To: Lesa Heebner <[email protected]>; Jewel Edson <[email protected]>; David Zito <[email protected]>; Kristi Becker <[email protected]>
Cc: Alyssa Muto <[email protected]>; Jana Guy <[email protected]>; Angela Ivey <[email protected]>
Subject: Agenda Item L-3, July 15, 2026
Mayor and Members of the Solana Beach City Council,
I will be unable to attend the City Council meeting on Wednesday July 15 as I will be out of the country on a long planned trip with family members.

I am writing to say that I am in full support of placing an increase in the transient occupancy (hotel) tax of 1%-from 13% to 14%-on the November 3, 2026 election ballot.

The TOT tax has not been raised in approximately 20 years and if the ballot measure is passed by a majority of voters it will provide additional funds for the needs of the community as identified by residents who recently provided input on their priorities for projects and services.

Tourism is one of the City's economic drivers and the City of Solana Beach needs to keep up with the infrastructure and safety needs of both residents and visitors.

Best regards,
Jill MacDonald
Jill MacDonald
City Council Member District 4
City of Solana Beach
713-725-0502 cell
For all city related issues, please contact me at:
[email protected]
Item L.3
From:

To:

Subject:

Date:

Jennifer Kuzman
City Clerks Dept
Meeting Date: July 15, 2026 Subject: Item L.3. . Submission of a Ballot Measure Updating the Transient Occupancy (Hotel)
Wednesday, July 15, 2026 11:34:23 AM
Dear City Council Members,
This email is regarding the agenda item on this week's meeting regarding raising the TOT tax.

I would very much appreciate the following questions addressed. Thank you in advance.

1. Are you proposing that the TOT tax increase is required to cover the cost to manage and police the STRs in our community? If so, why is the current budget for this effort not sufficient?

2. Does the City currently do anything to promote/support the availability of STR's in our community or is this a way to discourage them?

3. Do you have any data to support the need for more funds devoted to city resources due to STR's?

4. If the money is not for the support and promotion of STR's, why are STR's being taxed?

5. If the money is going to sand replenishment, what percentage of this cost is being funded by STR's vs other revenue sources? Tourists enjoy the beach but so does the general population of Solana Beach.

6. Will the money go into the general fund or will it be earmarked for a certain project or designated to support/manage STR's?

7. Will any funds be used to promote tourism?

8. How do you justify being the highest tax in San Diego collected on STRs?

9. If the tax is voted down, what will you do to fund the projects/resources currently slated for the tax increase?

10. Will you be increasing the tax on hotels as well? If not, why? Thank you very much for your responses and for all the hard work you do for the City of Solana Beach.

Jennifer Kuzman
Seascape Community
Item L.3

PINNACLE HOLDINGS

H O S P I T A L I T Y
July 15, 2026
Alyssa Muto
City Manager
City of Solana Beach
635 South Highway 101
Solana Beach, CA 92075
Re: Support for the Proposed 1% Increase to the City's Transient Occupancy Tax Dear Ms. Muto:

I am writing as the owner of the Courtyard by Marriott, located at 717 South Highway 101, Solana Beach, to express my strong support for the proposed measure to increase the City's Transient Occupancy Tax (TOT) by one percent.

I offer this support with clear eyes. The TOT is an additional cost borne by our guests, and I recognize that even with this increase, Solana Beach's lodging tax would sit somewhat above those of several neighboring coastal communities. I nonetheless believe this measure is the right step for our city, for a few reasons.

First, it will help Solana Beach become fiscally stronger. A modest, visitor-supported revenue source will strengthen the City's financial position and its ability to weather economic uncertainty, without placing that burden on residents.

Second, the revenue will fund improvements that our guests directly experience and value, including a well-maintained beach and shoreline, well-kept roadways, and other capital investments that make Solana Beach the exceptional destination it is. Reinvestment in these assets benefits our guests, our business, and the broader community alike.

Third, I have genuine confidence in you and in the City Council to steward these funds prudently and transparently. The City's recent budgets reflect a disciplined and responsible approach to spending, and that track record gives me confidence that this additional revenue will be put to good and careful use.

For these reasons, I am pleased to lend my support to this measure and to the City's efforts to secure a stronger fiscal future. Please feel free to share this letter as part of the public record, and do not hesitate to contact me if I can be of any assistance.

Sincerely,
Barry Lall
Owner, Courtyard by Marriott – Solana Beach
Pinnacle Holdings
717 South Highway 101, Solana Beach, CA 92075
[email protected] t ,
Item L.3
From: CEO Chamber SB <[email protected]>
Sent: Wednesday, July 15, 2026 2:08 PM
To: Alyssa Muto <[email protected]>
Cc: Dion Akers <[email protected]>
Subject: Chamber Support for TOT Increase
Hi Alyssa,
The Solana Beach Chamber of Commerce stands in support of the proposed ballot measure to increase the Transient Occupancy Tax (TOT).

The Chamber recognizes the value this additional funding will bring to our community. It's a meaningful investment in the quality of life that makes Solana Beach such a special place to live, work, and visit, and we believe it will have a positive impact on our local business community as well.

Let us know what we can do to help support you in this initiative. Thank you both for keeping the Chamber informed and engaged throughout this process, and please don't hesitate to reach out with anything we can do.

Best,
Kimberly Jones
CEO/President
210 Plaza St, Solana Beach, CA 92075
(858) 755-4775
solonc beoch ..-C.Oil L~ 9
Item L.3
Proposed Ballot Measure
to Update Transient
Occupancy Tax (TOT)
Item L.3
Alyssa Muto, City Manager
City Council Meeting – July 15, 2026
Item L.3
What is Transient Occupancy Tax?
Who it applies to:
• Paid by visitors at hotels, motels, and vacation rentals • Applies to stays of 30 days or less
• Collected by hosts and paid directly to the City
How the community benefits:
• Enhancements to areas serving residents and visitors
including the parks, beaches, Highway 101 corridor
and Cedros Avenue.
• Sand Replenishment Projects
• Improved coastal access facilities such as stairways, parks, restrooms and public beach areas
• Provides more public art project and programs
Transient Occupancy Tax (TOT) is a Hotel Tax applied directly to transient stays.

Allows the City to generate vital public funding directly from visiting tourists rather than local property owners.

Item L.3
Background
• Last TOT adopted in 2006
• 20 years old
• Currently 13%
• 10%: General Fund
• 2%: Sand Replenishment/Coastal Access
• 1%: Business Assistance Funding
• Community survey was
conducted in February 2026
Item L.3
• Statistically Valid Survey
• 95.7% residents with a
high opinion of the quality
of life in Solana Beach
• Consistent with 2022
Survey at 95% Satisfaction
Survey of Solana Beach Residents Item L.3
Survey of Solana Beach Residents
• High Satisfaction with
City Services – 85.7%
• Nearly 9 out of 10
respondents
• Respondents in support
of TOT increase – 71%
Item L.3
Community Priorities
Residents and community members identified the following City service priorities:

Keep trash out of
our lagoons, local
waterways and off
our beaches
Keep parks,
beaches, and trails
safe, clean, and
well-maintained
Keep public
restrooms wellmaintained and
clean
Maintain lifeguards
at local beaches
Upgrade coastal
life-saving
emergency medical
equipment and
technology
Item L.3
• Beach Nourishment in 2024 Widened the Sandy Beach
• Increased Annual Funding for Streets and Sewer
Repairs
• Daily Staffing to Manage Trash/Litter Pick-up and
Restroom Cleaning
• Patrols and Clean-up of Illegal Bonfires to Keep Nails and Pollutants Off Beaches
• Regular Landscaping and Tree Maintenance at Parks
and along Roadways
• New Ramp, Railings and Additional Showers Installed
• La Colonia Master Plan Complete with Planned
Improvements
• Future Lifeguard Facility and New Safety Equipment
City Projects Funded by Hotel Tax Item L.3
• Federal and State Budgets are Facing Cuts
and Uncertainty
• City in Good Fiscal Health and Standing
• Maintain High Quality of Life
• Provide Clean Beaches and Coastal Areas
• Promote Visitor-Serving Businesses and
Amenities
• Manage City Resources, Services and
Programs
• Retain Funding for Local Control
Administrative Outlook Item L.3
• Update the City’s 20-year-old Hotel Tax to
continue to meet the needs of the community
• Create locally managed funding for citywide
and coastal operations and services
• Maintain the safety and emergency responsive
technology and facilities
• 1% will bring in approx. $250,000
City Manager Recommendation
Adopt Resolution 2026-100 to submit
a ballot for the November 3, 2026
General Election for Voter approval
updating the Transient Occupancy
(Hotel) Tax to increase the TOT 1%
Item L.3

Solana Beach City CouncilJuly 15, 2026

Solana Beach City Council
July 15, 2026