NOTICE OF MEETING The 22nd District Agricultural Association Board of Directors meeting Tuesday, April 13, 2021 1:30pm
Mission Tower via ZOOM Del Mar Fairgrounds 2260 Jimmy Durante Boulevard Del Mar, California
As permitted by Executive Order N-25-20 (issued by Governor Newsom on March 12, 2020), the Del Mar Fairgrounds (DMF) will conduct the April 13, 2021 Board Meeting via ZOOM teleconference. If you wish to attend and participate in the meeting via teleconference, accommodations will be made. Please check the DMF website later this week for updated information and instructions on how to participate in the meeting via ZOOM/teleconference.
22ND DAA BOARD OF DIRECTORS
Richard Valdez, President Don Mosier, Director Lisa Barkett, Vice President Sam Nejabat, Director G. Joyce Rowland, Vice President Frederick Schenk, Director Michael Gelfand, Director Pierre Sleiman, Director Kathlyn Mead, Director
Secretary-Treasurer 22nd DAA Counsel Carlene Moore Josh Caplan Chief Executive Officer/General Manager Office of the California Attorney General
22nd District Agricultural Association Mission Statement To manage and promote a world-class, multi-use, public assembly facility with an emphasis on agriculture, education, entertainment and recreation in a fiscally sound and environmentally conscientious manner for the benefit of all.
Persons wishing to attend the meeting and who may require special accommodations pursuant to the provisions of the Americans with Disabilities Act are requested to contact the office of the General Manager, (858) 755-1161, at least five working days prior to the meeting to insure proper arrangements can be made.
Items listed on this Agenda may be considered in any order, at the discretion of the chairperson. This Agenda, and all notices required by the California Bagley-Keene Open Meeting Act, are available on the internet at: www.delmarfairgrounds.com
BOARD OF DIRECTORS MEETING April 13, 2021 1:30 p.m. AGENDA
1. CALL TO ORDER – PRESIDENT RICHARD VALDEZ
2. ROLL CALL PAGE 3. CONSENT CALENDAR 4-10
A. Minutes, Regular Meeting, February 23, 2021 Approval 4-5 B. Minutes, Regular Meeting, March 9, 2021 Approval 6-9 C. 22nd District Agricultural Association (DAA) Contracts Approval 10
4. MANAGEMENT REPORT 11-13 The Board may take approval action on the Manager’s Report:
A. Employee Recognition – Years of Service 11 B. CEO’s Report (Informational/Action) Verbal C. Insurance Renewals (Information/Action) Verbal D. Events Report (Informational) 12 E. Homegrown Fun! Update (Informational) Verbal F. Don Diego Scholarship Foundation Report (Informational) 13
5. COMMITTEE REPORTS 14-42 The Board may take approval action on Committee Reports and New Committee Assignments:
A. Horsepark Ad Hoc Committee – Michael Gelfand, Chair 14-17 1. Committee Report (Informational/Action)
B. DMTC Liaison Committee – Richard Valdez, Chair 18-23 1. Committee Report (Informational)
C. Strategic Planning Committee – Pierre Sleiman, Chair 24 1. Committee Report (Informational/Action)
D. Contracts Oversight Committee – Richard Valdez, Chair Verbal 1. Committee report (Informational/Action)
E. Community & Government Relations Committee – Don Mosier, Chair Verbal 1. Committee Report (Informational/Action)
22nd DAA Board of Directors Meeting Agenda April 13, 2021
F. RTLC/RTA Committee – Richard Valdez, Chair 1. Report on March 30, 2021 RTLC/RTA meetings (Informational) 25-30
G. Finance Committee – Richard Valdez, Chair 31-42 1. Premier P&L Statement – February 2021 (Informational) 31 2. Financial Report (Informational) 32-33 3. 2020 CDFA Statement of Operations (Informational) --- 4. Updated 22nd DAA 2021 Operating Budget (Informational/Action) 34-41 5. Homegrown Fun! Rates (Informational/Action) 42
H. Legal Committee – Richard Valdez, Chair 1. Committee Report (Informational/Action) ---
6. PUBLIC COMMENT Speakers are requested to sign in prior to the start of the meeting and are limited to three minutes. Speaker’s time may be modified based on the number of public speakers. No speaker may cede their time to another speaker. Public comments on agenda items will be accepted during the meeting as items are addressed. Public comment on issues NOT on the current Agenda is allowed. However, no debate by the Board shall be permitted on such public comments and no action will be taken on such public comment items at this time, as law requires formal public notice prior to any action on a docket item.
7. CLOSED EXECUTIVE SESSIONS (NOT OPEN TO THE PUBLIC) Pursuant to the authority of Government Code section 11126(a), (b), and (e), the Board of Directors will meet in closed executive sessions. The purpose of these executive sessions is: A. To confer with and receive advice from legal counsel regarding potential litigation involving the 22nd DAA. Based on existing facts and circumstances, there is significant exposure to litigation against the 22nd DAA. B. To confer with counsel, discuss, and consider the following pending litigation to which the 22nd DAA is a party. Cabezuela, et al., v. 22nd District Agricultural Association, San Diego County Superior Court, Case No. 37-2020-0022179. To C.con To confer with counsel, discuss, and consider the following pending litigation to which the 22nd DAA is a party. Jerry Hollendorfer, et al., v. Del Mar Thoroughbred Club, et al., San Diego County Superior Court, Case No. 37-2019-00036284. D. To confer with counsel, discuss, and consider the following pending litigation to which the 22nd DAA is a party. Bell v. 22nd District Agricultural Association, San Diego County Superior Court, Case No. 2019-00055846.
8. RECONVENE TO OPEN SESSION A. Report on actions, if any, taken by the Board in closed executive session.
9. DIRECTORS REQUEST & CLOSING COMMENTS A. Board Communication (Informational/Action) B. 2021 – 22nd DAA Board of Directors Meeting Dates – REVISED (Informational/Action) 43
10. FOR YOUR INFORMATION A. Correspondence (Informational) 44-67
11. ADJOURNMENT
22nd DAA Board of Directors Meeting Agenda April 13, 2021
22nd DISTRICT AGRICULTURAL ASSOCIATION Board of Directors Meeting Del Mar Fairgrounds 2260 Jimmy Durante Boulevard Del Mar, CA 92014 February 23, 2021
MINUTES
The 22nd District Agricultural Association (DAA), Board of Directors met via ZOOM in the Mission Tower Building at the Del Mar Fairgrounds on February 23, 2021 at 1:30 p.m.
OFFICERS PRESENT: Richard Valdez, President Lisa Barkett, Vice President Joyce Rowland, Vice President Interim Carlene Moore, Chief Executive Officer, Secretary-Treasurer
DIRECTORS PRESENT VIA ZOOM Michael Gelfand, Kathlyn Mead, Don Mosier, Sam Nejabat, Frederick Schenk and Pierre Sleiman
DIRECTORS/OFFICERS ABSENT All Present
OTHERS PRESENT Josh Caplan, Deputy Attorney General (via ZOOM) Katie Mueller, Business Services Officer – 22nd DAA Melinda Carmichael, Business Development Officer – 22nd DAA Donna O’Leary, Executive Assistant - 22nd DAA
CALL TO ORDER President Richard Valdez called the meeting to order at 1:30 p.m. with a quorum present.
ROLL CALL All present
General Business Presentation of the winning bid for Request for Proposal No. 20-05 (Midway Master Carnival Operator for the San Diego County Fair) and consideration and vote on whether to award contract to winning bidder Interim CEO Carlene Moore reported that due to a protest there will be no awarding of the winning bid. Deputy Attorney General Josh Caplan explained in detail that because a bid protest has been filed the Board cannot take any action until the Department of General Services (DGS) has resolved the matter. Staff will look at all options for the 2021 Fair in case the matter is not resolved in a timely enough manner.
PUBLIC COMMENT Mary Talley Adam West
RECESS TO CLOSED EXECUTIVE SESSION The Board adjourned to Executive Session at 1:44 p.m.
RECONVENE TO OPEN SESSION The Board reconvened to Open Session at 5:13 p.m. President Valdez reported that the Board conferred with and received advice from counsel on the items listed on the closed-session portion of the agenda and have nothing to report.
Page 4 22nd DAA Board Meeting Minutes February 23, 2021 Page 2
DIRECTORS REQUESTS & CLOSING COMMENTS Board Committee Assignments President Richard Valdez referred to the revised committee list on page 1 of the Board packet.
ADJOURNMENT There being no further business to discuss, Director Schenk moved to adjourn the meeting. All were in favor and the meeting was adjourned 5:16 p.m.
______Carlene Moore Chief Executive Officer
Page 5
22nd DISTRICT AGRICULTURAL ASSOCIATION Board of Directors Meeting Del Mar Fairgrounds 2260 Jimmy Durante Boulevard Del Mar, CA 92014 March 9, 2021
MINUTES
The 22nd District Agricultural Association (DAA), Board of Directors met via ZOOM in the Mission Tower Building at the Del Mar Fairgrounds on March 9, 2021 at 1:30 p.m.
OFFICERS PRESENT: Richard Valdez, President Lisa Barkett, Vice President Joyce Rowland, Vice President Carlene Moore, Chief Executive Officer
DIRECTORS PRESENT VIA ZOOM Michael Gelfand, Kathlyn Mead, Don Mosier, Sam Nejabat, and Frederick Schenk
DIRECTORS/OFFICERS ABSENT Pierre Sleiman
OTHERS PRESENT Josh Caplan, Deputy Attorney General (via ZOOM) Katie Mueller, Business Services Officer – 22nd DAA Melinda Carmichael, Business Development Officer – 22nd DAA Donna O’Leary, Executive Assistant - 22nd DAA
CALL TO ORDER President Valdez called the meeting to order at 1:30 p.m. with a quorum present.
ROLL CALL Director Mead was not present for Roll Call, but arrived late. Director Sleiman had an excused absence.
Prior to the vote for the Consent Calendar, President Valdez announced that during the Board Meeting on February 23, 2021, in closed session the Board discussed the interim CEO position held by Carlene Moore. The Board with a unanimous consent appointed Carlene Moore as the official CEO of the 22nd DAA.
CONSENT CALENDAR
A. Minutes, Regular Meeting, February 9, 2021 B. 22nd District Agricultural Association (DAA) Contracts Approval
PUBLIC COMMENT Jane Cartmill
Director Gelfand moved to approve all items on the consent calendar. Director Mosier seconded the motion. President Valdez, Vice President Barkett, Vice President Rowland, Directors Gelfand, Mosier, Nejabat, and Schenk, were all in favor and the motion carried. Directors Mead and Director Sleiman had an excused absence.
MANAGEMENT REPORT
CEO’s Report CEO Carlene Moore reported that the Strategic Planning Committee met and set a date for the board’s session on Friday, April 23. The workshop will be available for the public via ZOOM and will be properly noticed per Bagley- Keene. Other Committees that met were Affordable Housing Ad Hoc and Audit and Governance. CEO Moore also gave an update on the status of the SBA Shuttered Venue Operator Grants; reported that she spoke at both the Senate and Assembly Budget Committee hearings in support of the $50 million in operating support and $10
Page 6 22nd DAA Board Meeting Minutes March 9, 2021 Page 2 million in infrastructure support for the fair industry that is included in Governor Newsom’s proposed budget; and provided an update on the promising new reopening guidelines for outdoor live events as the County progresses to less restrictive tiers.
The Center Update Business Services Officer Katie Mueller gave a PowerPoint update on The Center construction progress. Anticipated date for construction completion is the end of April with an anticipated opening this Fall, pending public health orders at the time.
Events Report Business Development Officer Melinda Carmichael reviewed the events in detail for March and April 2021 on pages 10-11 of the board packet, including highlights from the vaccination superstation which is a joint effort between the 22nd DAA, Scripps Health and the County of San Diego.
Don Diego Scholarship Foundation (DDSF) Report Executive Director Chana Mannen asked everyone to get the word out that scholarship applications are now available on their website. The last day to apply is March 29, 2021.
PUBLIC COMMENT Jane Cartmill
COMMITTEE REPORTS
HORSEPARK COMMITTEE – Michael Gelfand, Chair There was a thorough discussion regarding the pause of activities at Horsepark. CEO Carlene Moore, Supervising Environmental Planner Dustin Fuller and the District’s environmental attorney answered questions from the Board.
PUBLIC COMMENT Ali Nilforushan Dale Harvey Sara T Carla Echols-Hayes Laura DeMarco Martha Sullivan
FAIR OPERATIONS COMMITTEE – Frederick Schenk, Chair Business Services Officer Katie Mueller reviewed the report on page 13 of the Board packet regarding the plans for the San Diego County Fair presents “Homegrown Fun! that will take place June 11 through July 4. The planning will include developing a COVID-19 plan and protocols to ensure the event is in compliance. Staff recommends issuing the remainder of refunds due to would-be San Diego County Fair 2020 participants – exhibitors, performers, etc., totaling approximately $100,000. This will provide a fresh start in 2022 when the traditional San Diego County Fair returns. Director Schenk moved to approve staff’s recommendation to refund the money, with the idea that there will be a Homegrown Fun! event this summer. Director Gelfand seconded. President Valdez, Vice President Barkett, Vice President Rowland, Directors Gelfand, Mead, Mosier, Nejabat, and Schenk, were all in favor and the motion carried. Director Sleiman had an excused absence.
DMTC LIAISON COMMITTEE – Richard Valdez, Chair President of DMTC, Josh Rubinstein, said they are discussing the various attendance scenarios and operational plans for the summer race meet. They will continue to work with their medical advisers and county public health officials to ensure the safety of everyone who attends the races.
PUBLIC COMMENT Liz Jacobelly Jane Cartmill Martha Sullivan Kim Marrs
Page 7 22nd DAA Board Meeting Minutes March 9, 2021 Page 3
PUBLIC COMMENT CONTINUED ON DMTC LIAISON COMMITTEE Oscar de la Torre Leonard Miranda Maria Luisa
CONTRACTS OVERSIGHT COMMITTEE – Richard Valdez, Chair Nothing to report.
COMMUNITY RELATIONS COMMITTEE – Don Mosier, Co-Chair Director Mosier reported that the Committee met on February 16. There was discussion about upcoming fair events and some questions from Del Mar about the next steps for the affordable housing discussion. Committee members were reminded that affordable housing has been moved to the Affordable Housing Ad Hoc Committee.
FINANCE COMMITTEE – Richard Valdez, Chair Financial Report CEO Moore reviewed the financial report on pages 25-26 of the Board packet.
22nd DAA 2021 Operating Budget - Events Approval CEO Moore presented the proposed events operating budget in detail included in the Board packet on pages 27- 33. The budget includes Premier’s operations. Director Schenk moved to approve the Events Budget. Director Gelfand seconded. President Valdez, Vice President Rowland, Directors Gelfand, Mead, Mosier, Nejabat, and Schenk, were all in favor and the motion carried. Vice President Barkett had to leave the meeting and was not present for the vote. Director Sleiman had an excused absence.
Premier P&L Statement – January 2021 General Manager of Premier Food Services, Mark Wiggins, reviewed the January food and beverage report on page 34 of the board packet.
RTA/RTLC COMMITTEE – Richard Valdez, Chair Approval of one-year Del Mar Race Track Authority (RTA) Budget for 2021 President Valdez and CEO Moore gave a detailed overview of the 2021 RTA budget included in the Board packet on pages 35-39. CEO Moore also gave an overview of what the RTA and the RTLC do and how they were formed. Director Mead moved to approve the RTA budget. Director Gelfand seconded. President Valdez, Vice President Rowland, Directors Gelfand, Mead, Mosier, Nejabat, and Schenk, were all in favor and the motion carried. Vice President Barkett had to leave the meeting and was not present for the vote. Director Sleiman had an excused absence.
PUBLIC COMMENT Martha Sullivan
LEGAL COMMITTEE – Richard Valdez, Chair President Valdez said there is nothing to report.
PUBLIC COMMENT – NON-AGENDA ITEMS Martha Sullivan Jane Cartmill
RECESS TO CLOSED EXECUTIVE SESSION The Board adjourned to Executive Session at 4:37 p.m.
RECONVENE TO OPEN SESSION The Board reconvened to Open Session at 5:32 p.m. President Valdez reported that the Board conferred with and received advice from counsel on the items listed on the closed-session portion of the agenda and have nothing to report.
DIRECTORS REQUESTS & CLOSING COMMENTS There were none.
Page 8 22nd DAA Board Meeting Minutes March 9, 2021 Page 4
ADJOURNMENT There being no further business to discuss, Director Gelfand moved to adjourn the meeting. All were in favor and the meeting was adjourned 5:32 p.m.
______Carlene Moore Chief Executive Officer
Page 9 CONTRACT APPROVAL(S) April 2021
In accordance with the requirements of the Department to Food & Agriculture, Fairs & Expositions Branch, Staff requests approval of the agreement(s) listed below:
Standard Agreements
Contract # Contractor Purpose Term Amount
$45,000.00 5/16/2021 – 5/15/2022 DAA-16-226-30 Diamond Environmental Portable Restroom, Hand Washi (Total Contract Value One Year Extension of AM #6 Services, LP Stations, Holding Tank Rentals Including One Year Five-Year Agreement Extension $300,000.00)
Page 10 Employee Recognition for “Years of Service”
Cheryl Zinniger, 20-years of service. Cheryl joined the 22nd DAA team on March 16, 2001 in our Human Resources Department. Cheryl has been an asset to the Exams and Certification function of the Human Resources Department and has handled the recruiting, exams and job analysis via CalHR for our Civil Servant positions. As roles are changing, Cheryl will continue with the exam and certification function; however, she is also expanding her role in other functional areas within Human Resources. Cheryl’s dedication, attention to detail, excellent customer service, and always going the extra mile to ensure our processes are accurate, is very much appreciated. Cheryl is a valuable member of our team, an all-around team player, always friendly and a pleasure to work with!
Page 11 CONTRACTED EVENTS EVENT DATE(S) EVENT NAME RENTAL FEE EST. STALL FEES
APRIL 2021: 4/5/2021 4/10/2021 Disaster Response Overview Program $500 4/8/2021 4/11/2021 Breed Horse Show $3,900 $4,650 4/10/2021 4/20/2021 Mainly Mozart $10,400 4/16/2021 4/18/2021 County Horse Show #3 $10,933 $4,650 4/21/2021 4/23/2021 Engineer & Land Surveyor's Exam $16,800 4/21/2021 4/25/2021 Double Feature Horse Show $19,468 $24,285
MAY 2021: 5/7/2021 5/9/2021 Queen Bee Market $7,400 5/8/2021 5/9/2021 County Horse Show #4 $10,933 $4,650 5/11/2021 5/17/2021 Spring Home and Garden Show $15,300 5/12/2021 5/17/2021 TinyFest California $15,000 5/19/2021 5/23/2021 Region One Arabian Horse Show $19,468 $30,615 5/21/2021 5/23/2021 Bridal Bazaar $6,466
SEPTEMBER 2021: 9/8/2021 9/13/2021 BMW Ultimate Driving $17,550 9/28/2021 10/4/2021 Goodguys Del Mar Nationals $49,570
OCTOBER 2021: 10/5/2021 10/6/2021 IFMA San Diego (Real Estate Trade Show) $4,000 10/6/2021 10/10/2021 Harvest Festival Original Art & Craft Show $16,800 10/8/2021 10/10/2021 The Boardroom Surf Show $8,200 10/13/2021 10/17/2021 Gem Faire $12,300 10/21/2021 10/24/2021 San Diego Open (gaming competition) $8,200
NOVERMBER 2021: 11/10/2021 11/15/2021 SnowJam $12,300
DECEMBER 2021: 12/3/2021 12/5/2021 Queen Bee Market $7,200
COVID-19 SAFETY PROTOCOLS: All promoters are required to submit a Safe Reopening Plan that complies with Social Distancing, Sanitation Protocols, and follows all guidelines established by the California Department of Public Health that are current at the time of the event.
Page 12 Don Diego Scholarship Foundation March 2021 Scholar Update
1998 Scholar Anthony Tanbakuchi Perfects the Art and Science of Success
Now a patent-holding PhD with a high-level position as Principal R&D Optical Scientist & Engineer at Albuquerque-based Sandia National Laboratories, Anthony Tanbakuchi modestly describes his ascent from his Del Mar hometown as a series of “lucky” occurrences. In reality, this brilliant, down- to-earth scientist has made his own luck.
Anthony relates, “At Torrey Pines High, I loved math and science, and had a passion for photography. I am lucky to combine art and science in my work, which involves designing optical sensors to support national security needs. Exhibiting photography at the Fair qualified me to win a $5,000 Don Diego scholarship. It was huge! My parents couldn’t afford to fund my education at Rochester Institute of Technology. After that, I was lucky to receive scholarships at RIT and later at the University of Arizona, where I earned a PhD in Optical Sciences.”
Among Anthony’s many adventures, he served as a Park Ranger in the National Parks Service, taught community college statistics, worked at Phillips Research in the Netherlands, and received a U.S. patent for his Image Sensor Defect Correction Algorithm.
Today, Anthony and his wife, Kristina Rynes, enjoy an idyllic life along the Rio Grande on a five-acre ranch they share with mules, donkeys, chickens, dogs and the occasional beef cattle.
Anthony says, “I’m very thankful to Don Diego for helping me make the important first step.”
Page 13
Item 5-A Horsepark Ad-Hoc Committee Report
Background: In December 2020, the 22nd District Agricultural Association (22nd DAA) announced a pause of equestrian uses at Horsepark. As reported at the January board meeting, and captured again in this Committee’s written report of March 9, there were a series of events that led to this decision. Correspondingly at the January board meeting, the Horsepark Ad-hoc Committee was appointed to work with staff and the community and to hold a public workshop to allow the community to express their thoughts and interests regarding Horsepark in order to allow a fuller and further discussion about regulatory requirements, fundraising interests, etc. The workshop was held on January 29, 2021.
Direction received from the board meeting on Feb. 9, 2021, was to gather additional information and provide regular updates to the board, including a better understanding of the range of cost estimates, ongoing operational costs associated with the 22nd DAA continuing to operate Horsepark, historic profit and loss of Horsepark operations and past capital investments/improvements, estimated costs for needed future capital investments/improvements including deferred maintenance, consideration for the potential changes in requirements associated with Regional Water Quality Control Board (RWQCB) permits, and to explore funding opportunities.
In addition to the written Committee Report presented at the March board meeting, the board received a copy of staff’s letter to the San Diego Regional Water Quality Control Board on March 1, 2021, seeking written clarification of storm water permit coverage requirements for Horsepark. As part of the meeting presentation, staff provided the board with a review of CAFOs, the 22nd DAA’s Waiver Application process during 2019-2020, information regarding the range of potential costs of storm water improvements at Horsepark, and a list of potential considerations for capital improvements at Horsepark.
Process and Approach: The Committee and staff continue to gather and review more information and anticipate that a comprehensive report will be presented to the full board in the summer months, including the financial information being presented along the way.
Brief History on the Acquisition of Horsepark The 22nd DAA’s 1985 Master Plan and Environmental Impact Report (EIR) identified the need to mitigate parking impacts through the acquisition of an off-site parcel that could be used for parking during the Fair. In 1991, the Showpark of San Diego (Showpark, now known as Horsepark) became available for purchase and the 22nd DAA began the process to purchase the facility. This included an appraisal of the facility and approval by the Race Track Authority/Race Track Leasing Commission (RTA/RTLC) for a $5 million line item for the potential acquisition of the facility. After two years of negotiations, a purchase price of $4.2 million was agreed upon with escrow closing on November 15, 1993. After escrow began in August 1993, the former owner of the Showpark demanded compensation for personal property and ongoing business, costs not previously included in the appraisal of Showpark. The 22nd DAA’s intentions were to continue the business activities of the facility including boarding and training of horses and
Page 14
horseshows as well as park cars and provide shuttle services during the annual San Diego County Fair. On April 13, 1996, the 22nd DAA and previous owner settled the matter for $400,000. In 1996, the total costs paid that were associated with the acquisition of the facility were $4.9 million, This included a purchase price of $4.2 million, $400,000 in the settlement, and an additional $300,000 in improvements that were made to the facility. The name of the facility has since been changed to Horsepark.
In 2005, the 22nd DAA went before the California Coastal Commission to permit, after the fact, essentially all of the structures on the site. Unbeknownst, the previous owner never sought Coastal Development Permits for the property. The permit also included plumbing all wash racks and the existing restroom to sewer, relocation of the existing water tower, and the provision of a buffer between the facility and the wetland resources of the San Dieguito River. Response from the San Diego Regional Water Quality Control Board (SD Reg. Board) On March 25, 2021, the attached letter was received from the SD Reg. Board in response to the March 1 letter of inquiry. The response confirmed that in order to have coverage under the Waiver permit, the 22nd DAA must continue implementation of the waste management measures identified in the Waiver. If the storm water management measures/best management practices required by the Waiver or not being implemented, the 22nd DAA would not be covered by the Waiver. Additionally, the response confirmed that the 22nd DAA will need to enroll Horsepark in the Industrial General Permit (IGP) for Medium CAFOs (150 – no more than 499 horses). Estimates for compliance with the IGP at this level is $3 - $4 million, Waiver plus IGP (85th percentile Storm Event (.65").
On-Going Research Staff continues to review grant funding opportunities including Prop. 1, San Diego County Water Authority and private funding sources. Most of the funding sources accept applications in two cycles annually. Grant funding available through state and local agencies prefer that environmental clearances have already been obtained; if not yet obtained, the application will receive a lower score. Additionally, these funding sources often require matching funds.
The Committee continues to meet regularly to review information and progress and provide guidance to staff, such as the ongoing gathering of indirect expenses related to Horsepark, other capital improvements that may be warranted, as well as market studies, with the intention to define a path forward for the Board’s consideration this summer. At this time, three potential outcomes may be presented to the Board for consideration: o 22nd DAA runs/operates Horsepark o Public/Private partnership o Third-party operator
A power point presentation has been prepared to supplement information provided in this report.
Environmental/Coastal Commission Review: None at this time.
Fiscal Impact: The complete fiscal impact of water quality improvements, capital improvements, and ongoing operational expenses are unknown at this time.
Page 15
San Diego Regional Water Quality Control Board
March 25, 2021
Carlene Moore In reply refer to / attn: 22nd District Agricultural Association SMARTS WDID 937M2000085:TFelix 2260 Jimmy Durante Blvd. 862412:CKomeylyan Del Mar, CA 92104-2216
Subject: 22nd DAA Stormwater Compliance – Del Mar Horse Park
Dear Ms. Moore,
The California Regional Water Quality Control Board, San Diego Region (San Diego Water Board) is aware the 22nd District Agricultural Association (22nd DAA) decided to temporarily pause equestrian operations at Horse Park while it considers how to address its water quality obligations pursuant to both the federal Clean Water Act and the California Water Code. This letter clarifies the 22nd DAA’s regulatory requirements for discharges of waste to land and stormwater discharges associated with equestrian activities at Horse Park. The following provides responses to the two questions identified in your March 1, 2021 letter.
Conditional Waivers of Waste Discharge Requirements Would the 22nd DAA, as the owner and operator of Horse Park, be deemed in compliance with Order No. R9-2019-0005 (Waiver No. 6) if it is unable to implement the Best Management Practices (ex. manure management BMP’s, drainage improvements) set forth in its enrollment application and if so, for how long?
The 22nd DAA submitted a Notice of Intent for the enrollment of the Horse Park in Waiver No. 6 on September 18, 2019. The Notice of Intent specified the current management measures and BMPs implemented at the Horse Park to comply with the provisions of Waiver No. 6. Additionally, the 22nd DAA voluntarily included in its Notice of Intent, a proposed project schedule for improvements to existing stormwater and manure BMPs. On March 27, 2020, the San Diego Water Board issued a Notice of Enrollment to the 22nd DAA for the Horse Park. If the 22nd DAA is unable to continue implementation of the current waste management measures at Horse Park that are necessary to comply with the provisions of Waiver No. 6, then the 22nd DAA would no longer be eligible for Waiver No. 6. The 22nd DAA is only eligible for Waiver No. 6 if the management measures/best management practices required are being implemented. Under this scenario, the 22nd DAA would not be covered by the Waiver. The 22nd DAA’s lack of coverage by Waiver No.
Page 16 Carlene Moore - 2 - March 25, 2021
6 would trigger the requirement to submit a Report of Waste Discharge to the San Diego Water Board for the activities at the site.
Stormwater Discharges Must the 22nd DAA, as the owner and operator of Horse Park, enroll in the Statewide Industrial General Stormwater Permit (IGP) if the 22nd DAA stables or confines between 150 and 499 horses pursuant to the time frames defined for Animal Feeding Operations (AFO); and discharges pollutants (including manure or process wastewater) into waters of the United States through a man-made ditch, pipe, or similar device referencing 40 C.F.R. § 122.23 subd. (b)(6)?
Yes, the 22nd DAA must file for and receive coverage under the IGP if Horse Park stables or confines between 150 and 499 horses pursuant to the time frames defined for AFOs; and discharges pollutants (including manure or process wastewater) into waters of the United States through a man-made ditch, pipe, or similar device. Pursuant to 40 C.F.R. § 122.23 subd. (b)(6), Horse Park is a medium Confined Animal Feeding Operation (CAFO). The San Diego Water Board is regulating discharges of process wastewater and stormwater from medium CAFOs under the Statewide IGP plus a site- specific nutrient management plan. This is the same regulatory process the 22nd DAA has implemented for its large CAFO located on the Fairground property west of Interstate Highway 5.
The San Diego Water Board understands the 22nd DAA is committed to compliance with both federal and State water quality laws. Further we understand the importance of Horse Park to the community. Should you have any further questions about stormwater management, please contact Laurie Walsh of the Stormwater Unit at [email protected]. Should you have any further questions about discharges of wastes to land, please contact Chehreh Komeylyan of the Groundwater Protection Unit at [email protected].
Sincerely,
David Gibson Executive Officer
cc:
Stormwater - SMARTS WDID 937M2000085:TFelix Groundwater - 862412:CKomeylyan
Page 17 3/29/2021 Del Mar Among Nation's Safest Tracks for Third Straight Year
Del Mar Thoroughbred Club
Tuesday, March 30th, 2021 ( 15 hours from now )
Return to All News
Del Mar Among Nation's Safest Tracks for Third Straight Year
For the third consecutive year, Del Mar was identified as one of the safest major racetracks in the U.S. based on annual data released Monday by The Jockey Club’s Equine Injury Database (EID).
In 2020, Del Mar saw a single catastrophic racing injury during its 27-day summer race meeting and its 15- day fall meeting combined, a rate of 0.29 per 1,000 starts. The national average for 2020 per The Jockey Club was 1.41, which is the lowest since the EID began collecting data in 2009.
The Jockey Club’s EID covers virtually all major Thoroughbred tracks in the United States, tracking fatal injuries sustained during racing programs throughout the year.
https://www.dmtc.com/media/news/del-mar-among-nations-safest-tracks-for-third-straight-year-1792 Page 18 1/3 3/29/2021 Del Mar Among Nation's Safest Tracks for Third Straight Year Over the last three years, Del Mar’s injury rate has consistently been the lowest in the country and far below the national average. In 2019, there were two fatal injuries during Del Mar’s 36-day summer/13-day fall meetings (.62 per 1,000 starts), and in 2018 there were three during its 36-day summer/16-day fall sessions (.79).
During its 2020 summer season, Del Mar had 2,357 horses start in a race. For its fall season there were 1,060 starters. Those figures equate to the track conducting 99.7% of its racing safely during the year.
The 2019 numbers were 3,219 starters meaning a 99.4% safe racing mark and the 2018 calculations were 3,832 runners for a 99.2% safety standard.
Del Mar officials attribute the track’s overall safety record to a series of reforms introduced over the last several years in cooperation with the California Horse Racing Board (CHRB) and industry stakeholders, including the Thoroughbred Owners of California (TOC). Among the measures put in place: enhancements to veterinarian inspections of runners along with the addition of veterinarians to oversee morning training; implementation of the nation’s most stringent medication policies, including increased out-of-competition testing for its horses; new rules for morning workouts including the ban of the use of riding crops during morning training; the hiring of a new director of racing surfaces and consultation with the country’s foremost track surfaces analyst, and the installation of an expert and independent Entry Review Panel to supervise all race entries with the power to force withdrawals if all safety concerns were not met.
But even in light of its stellar numbers, track officials noted the need for vigilance and continued improvements.
“We believe the results of the last three years are a reflection of our overall commitment to the safety and welfare of our athletes but we understand fully that this is an ongoing effort that requires us to continue to do everything we can to provide the safest environment possible for racing and training here,” said Del Mar CEO, Joe Harper. “This is a total team effort and we appreciate very much the hard work and cooperation of everyone involved.”
In 2019, Del Mar Thoroughbred Club was one of the founding members of the Thoroughbred Safety Coalition, an association of major U.S. racing organizations committed to meaningful safety reforms and accountability nationwide. As part of this organization, Del Mar pushed for reforms on the federal level, including the Horse Racing Integrity and Safety Act (HISA) which was passed by Congress and signed into law earlier this year.
Further, Del Mar remains fully accredited by the National Thoroughbred Racing Association’s Safety and Integrity Alliance, having recently passed its complete review of equine and track safety protocols, including injury prevention, medication testing, jockey health and safety best practices, wagering integrity and equine aftercare policies.
Del Mar will present its 82nd year of racing in 2021 beginning with a 31-day summer season that begins on Friday, July 16 and runs through Labor Day Monday, September 6. Its 15-day fall session, known as the Bing Crosby Season and this year featuring the 38th Breeders’ Cup World Championships on November 5 and 6, will kick off on November 3 and conclude November 28.
https://www.dmtc.com/media/news/del-mar-among-nations-safest-tracks-for-third-straight-year-1792 Page 19 2/3 3/29/2021 Del Mar Among Nation's Safest Tracks for Third Straight Year Below are a series of quotes from members of the Thoroughbred industry regarding Del Mar’s latest safety recognition.
Josh Rubinstein (President and COO, Del Mar Thoroughbred Club) – “When something this positive happens at the track, it is invariably a matter of a team effort. Del Mar is understandably proud of the results realized by our racing community, starting with the California Horse Racing Board, our partners at the Thoroughbred Owners of California and filtering on down to all who regularly touch and care for our horses in various ways -- our trainers, jockeys, grooms, exercise riders, hot walkers and veterinarians. We salute each and every one of them.”
Greg Ferraro (Chairman, California Horse Racing Board) – “Del Mar’s superlative safety record is a demonstration of what can be achieved through the cooperative development and implementation of regulations and activities that are designed to improve horse safety and welfare.”
Gary Fenton (Chairman, Thoroughbred Owners of California) – “Two years ago California put in place historic reforms that have resulted in significant reductions in all injuries to our equine athletes. This couldn’t have been achieved without the leadership, hard work and dedication of our partners at the Del Mar Thoroughbred Club. It’s good to see the data reinforce once again what we see every day -- DMTC’s unequivocal commitment to equine safety.”
https://www.dmtc.com/media/news/del-mar-among-nations-safest-tracks-for-third-straight-year-1792 Page 20 3/3 3/30/2021 San Diego Union-Tribune - Metro - eNewspaper
Del Mar sets standard for safety
Weston (second from right) powers to victory in last year’s Best Pal Stakes at Del Mar. ( BENOIT PHOTO) BRYCE MILLER COLUMNIST Del Mar has piled proof upon proof that it sets the gold standard for safety among major horse-racing tracks in America. That they’ve done it again, like a satisfying and significant broken record, shouts from barn roofs that the commitment to protecting horses where the turf meets the surf remains not solely a priority, but a non-negotiable expectation. The release today of the most recent equine database report from The Jockey Club — showing one racing-related fatality from 3,417 runners in 2020, the north star of the https://enewspaper.sandiegouniontribune.com/desktop/sdut/default.aspx?pubid=ee84df93-f3c1-463c-a82f-1ab095a198ca Page 21 1/3 3/30/2021 San Diego Union-Tribune - Metro - eNewspaper industry’s stars at 0.29 percent per 1,000 starts — underscores the commitment Del Mar continues to feed, water and shape. Take a bow. “It’s not just what we’ve done, but what the industry has done,” CEO Joe Harper said. “A lot of the credit goes to the horsemen and trainers themselves, changing an age-old feeling that they sometimes had about not leaving money on the table. “The game needed to change — and that happened.” There’s a decent amount of “I’d like to thank the Academy” as Harper shares the optimistic spoils of the sport’s encouraging trendline. The truth: Since a catastrophic meet in 2016, when 17 horses died, no organization has pledged to do more and produced results like Del Mar. Heads up, NFL. Pay attention, NCAA. On the thorniest matters of our sports time — from concussions to amateur athlete compensation and gender equity — words matter little. Work and real results do. “(Maximizing safety) is probably more important for Del Mar than almost anyone,” Harper said. “When you look at the slice of people who come out to the Del Mar in the summer, that might be their first trip to the race track and maybe the only race track they’ve ever been to. “They’re there for the atmosphere and the party. They don’t want see a horse die any more than we do. So yes, it means a lot.” This is not the moment to debate zero-allowance viewpoints from animal-rights advocates or counterpoints from those in the industry about the jobs racing leverages to buoy marginalized communities. The truth of that, as with most things, routinely lies somewhere in the middle, beyond the passionate polarization. Del Mar’s drumbeat related to safety has grown into something an entire sport can applaud and emulate.
Last May, I admonished the track about straying from safety-related transparency. After that, among their choices that led to safer racing were those listed as part of a larger 23- point plan — including increased veterinary scrutiny, toughening medication policies and race-surface modifications. That good-faith contract with the public demands vigilant nurturing.
Attitudes and conversations drove change at Del Mar, as well. Harper recalled sitting on a pony with one of the track’s outriders, who pointed out a subtle “tell” with a horse’s left-hind quarters area. Noticing something seemed off required a trained, veteran eye. It became the kind of culture that’s the equivalent of, “See something, say something.” To its credit, Del Mar listened. https://enewspaper.sandiegouniontribune.com/desktop/sdut/default.aspx?pubid=ee84df93-f3c1-463c-a82f-1ab095a198ca Page 22 2/3 3/30/2021 San Diego Union-Tribune - Metro - eNewspaper “It’s the little things, too,” Harper said. Del Mar’s injury rate consistently has been the lowest or near the lowest in the nation over the last three years. In 2018, the rate of fatality each 1,000 starts stood at .79. The year after, it dropped to .62 before falling yet again in 2020. The national average last year, according to The Jockey Club, stood at 1.41 — the lowest since data of this kind was first collecting in 2009. There’s always more work to be done in an industry accustomed to dodging its share of deserved and undeserved slings and arrows, Harper noted. “This isn’t just a Del Mar issue or a Santa Anita issue,” he said. “It takes everyone.” In 2019, Del Mar became a founding member of the national Thoroughbred Safety Coalition. The group pushed for things like the Horse Racing Integrity and Safety Act, which Congress signed into law earlier this year. This is not a finish line, as Del Mar wisely understands. The track continues to show it refuses to sit on its hands — or hooves. That assuredly will continue when the track’s popular summer meet begins its 31-day run July 16. That bow? They earned it.. [email protected]
https://enewspaper.sandiegouniontribune.com/desktop/sdut/default.aspx?pubid=ee84df93-f3c1-463c-a82f-1ab095a198ca Page 23 3/3
Item 5-C, Strategic Planning Committee Report
Background: In the Fall of 2019, the Strategic Planning Committee was established with the goal of updating previous long-range plans in order to provide continued guidance to the organization. In early 2020, prior to the COVID-19 pandemic, the initial focus was to revisit the previous plan as it related to events and facilities in order to set priorities, focus energy and resources, and gather public input to guide the continued work toward common goals. Along with an online questionnaire for the general public, two of the three planned public workshops were held prior to the state-wide shutdown. Since the pandemic began in March 2020 and state-wide shutdowns quickly led to the ban on mass gatherings, focus was temporarily diverted to navigating and overcoming the short-term financial crisis brought on by it. During this time, various board committees and staff continued to work on issues that will ultimately be brought into the strategic planning conversation along the feedback received during the 2020 public workshops. Now, as the 22nd DAA begins to pivot from survival to stabilization, this Committee recognizes that the lens through which previous planning efforts were being looked at has changed dramatically and will continue to evolve differently in the transition to a post-pandemic world.
Approach: The board has set the date of Friday, April 23, 2021 for a day-long strategic planning session where it will reengage its discussion and embark on efforts to systematically coordinate and align resources and actions in order to guide this organization into the foreseeable future, starting with revisiting the foundation of the 22nd District Agricultural Association - its purpose, mission and values. The meeting will be noticed in accordance with Bagley-Keene and the public is invited to attend via Zoom.
Process: Strategic planning is the process of assessing current internal and external environments, forecasting changes, formulating high level plans and approaches, and executing those plans into operational plans and actions, while continually evaluating the performance of those efforts and communications. Preparation work leading up to the planning session has included mission, vision, and values work by all members of staff with the facilitator and a forthcoming survey to board members (of which individual responses will be provided in the forthcoming report distributed prior to the planning session). The goal for April 23rd is to define the lens by which all programs, facilities, etc. will be viewed so that, working together, the board and staff are committed to the overall direction and values, creating a synergistic effect for moving forward.
Fiscal Impact: Unknown at this time.
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Item 5-F, RTLC/RTA Committee Report
Background: The State Race Track Leasing Commission (RTLC) was created by the State Legislature in 1968 with the responsibility and authority to lease the Del Mar Race Track and to oversee the expenditure of the rents received from leasing the track for the purpose of implementing a long-range, comprehensive improvement of the 22nd District Agricultural Association’s (22nd DAA) property. The Del Mar Race Track Authority (RTA) was formed in 1990 by the RTLC and the 22nd DAA for the express purpose of financing the Grandstand Replacement Project. In September 1991, the RTA authorized the issuance of $60 million aggregate principal amount of 1991 Taxable Commercial Paper Bond Anticipation Notes to finance the costs of developing, acquiring, constructing, and improving a portion of the Grandstand Replacement Project. It was completed in 1993. In April of 1993, the RTA authorized the issuance of $45 million aggregate principal amount of 1993 Tax- Exempt Commercial Paper Bond Anticipation Notes, and in July 1994 increased the aggregate principal to $50 million. The proceeds were used to fully retire the 1991 Notes and to pay for other Project costs. In 1996, the Series 1996 Bonds were issued as limited obligations of the RTA to retire the 1991 Notes and to pay for other project costs, to be repaid solely from Pledged Revenues consisting of the Race Track Net Revenues, Satellite Wagering Net Revenues, Concession Revenues, and the interest from the investment of money in various accounts or funds established under the Indenture. In order to satisfy the 2005 Series Bonds, the RTA received all proceeds from Surfside Race Place (satellite wagering), the first $2 million of food and beverage net, and all net proceeds from horse racing. The 2005 Series Bonds were refinanced and reissued with the 2015 Series Bonds, and new debt was incurred. Since 2015, in order to satisfy the 2015 Series Bonds, the RTA receives 100% of Net Horse Racing Revenues and up to $4 million of Net Concessions Revenues from the 22nd DAA (no longer receiving proceeds from satellite wagering). All food & beverage receipts and expenses are accounted for by the 22nd DAA and then the net is transferred to the RTA for the payment of bonds, if necessary. In essence, since 1996, the RTA has only had a revenue stream for the payment of bonds (through Pledged Revenues) and not an operating or other project revenue stream. As reported at the RTLC/RTA meetings on March 30, 2020, historically, and even as recently as March 9, 2021, the 22nd DAA has put forward two RTA budgets in addition to the Bond Projects (when bond funds have been available) - Administration and Maintenance Expenses Budget for ongoing operations of the Grandstand plus a Projects Budget for environmental, backstretch, and other facility improvements (again, separate from bond funds). See attached Del Mar Race Track Authority Proposed Budget for Administrative and Maintenance Expenses For the year 2021 (RTA Operating) and the Del Mar Race Track Authority Proposed Projects for 2021 (RTA Projects).
Page 25
The 22nd DAA has been, and continues to be, the sole revenue source responsible for RTA operating expenses and environmental and facility projects above and beyond projects funded by bonds. Regardless of Pledged Revenues, this has resulted in the annual transfer of funds from the 22nd DAA to the RTA for operating expenses Traditionally, the 22nd DAA board first approves the RTA Operating and RTA Projects budgets prior to presentation and approval by the RTA board. All bond revenue has been spent as of December 31, 2020 and all projects are complete as of the acceptance of the Water Quality Improvement project in the coming months.
Approach: After careful review and discussion with the 22nd DAA’s municipal advisor and bonds counsel, beginning with the 2021 22nd DAA Operating Budget, barring any changes to debt restructure or new debt in the future, the 22nd DAA will no longer present a separate operating budget for the RTA and will instead incorporate all operating expenses as operations of the 22nd DAA and approve capital improvement projects as part of its own budget process.
Process: Over the course of the year, 22nd DAA staff will work with the Attorney General’s Office, legal counsel to RTLC and RTA, and the auditors to properly implement this change. As the 22nd DAA has undergone quite a bit of staff turnover and is in the process of converting to a new accounting software, this change is very timely.
Fiscal Impact: Operating expenses of the grandstand and facility remains the responsibility of the 22nd DAA, as it has been historically.
Page 26 Del Mar Race Track Authority Proposed Budget for Administrative and Maintenance Expenses For the year 2021, with Projections for 2020, and Actual 2019
Actual Budgeted Projected Proposed Expense Category 2019 2020 2020 2021 Administrative Audit Services 126,214 130,000 130,000 130,000 Legal Services 3,060 3,000 4,730 5,000 Travel 598 500 0 500 Professional Services 10,428 10,000 14,667 63,000 Professional Fees- Capital Projects Bank charges 89 150 150 Permits & Licenses (for vehicles) 0 - 81 - Trustee Fees 1,750 1,800 1,800 1,800 Insurance-Business Interruption/Earthquake 81,289 82,400 92,192 93,000 Other Administrative Services: Payroll--Wages 102,338 102,338 76,754 - Payroll taxes- ER portion 7,829 7,829 5,872 - Reimbursement to 22nd DAA for Staff Expenses 34,894 34,900 29,083 34,900 Administrative expenses - - - - Other General Expenses 36 200 200 Total Administrative Expenses 368,525 373,117 355,178 328,550
Maintenance Expenses Equipment Maintenance 9,840 10,000 2,500 5,000 Elevators & Escalators Contract/ Routine Repairs 60,501 62,135 53,061 75,000 Elevators & Escalators Repairs- Outside Contract 31,684 71,000 12,883 66,944 Grandstand Supplies and Routine Maintenance 85,982 85,000 296 105,500 Kitchen Repairs Grandstand - - - - Air/ Heating/ Refrigeration Grandstand 6,931 7,500 2,119 7,000 Plumbing Repairs Grandstand 22,584 20,000 1,060 20,000 Sewer Maintenance 3,078 4,000 1,652 16,000 Structural Maintenance-Roof Repairs Grandstand - 2,500 - 2,500 Structural Maintenance- Building Repairs GS 628 1,000 - 1,000 Repairs- Electrical- Grandstand (1,434) 5,000 - 5,000 Repairs- Painting- Grandstand 4,789 4,000 648 - Fire Alarms 50,922 45,000 21,421 54,000 Repairs and Maintenance- Other Buildings 29,809 30,000 19,402 30,000 Reimbursement to 22nd DAA for Staff Expenses 125,106 125,100 104,250 - Hardware Maintenance- IT 31,313 18,200 16,067 - Software and Licensing--IT 53,363 62,350 60,461 - Supplies--IT - - 1,049 - Security Monitoring and Licensing 18,444 15,000 13,919 - Total Maintenance Expenses 533,540 567,785 310,788 387,944
Total Admin and Maintenance Expenses 902,065 940,902 665,966 716,494
Page 27 Del Mar Race Track Authority Proposed Projects for 2021 2021 Proposed Timing of Projects expenditures
Racetrack/Backside Program Improvements
Clean drains inside rails on main track $ 30,000 Q4
Racetrack/Backside Facility Health & Safety Improvements
Ongoing improvements and maintenance of backside living quarters $ 200,000 Q4
Grandstand Improvements
Restoration/Monitoring Projects
Water Quality Improvement Project Plant Operation and Pond Maintenance $ 125,000 Monthly Industrial General Permit $ 60,000 Monthly $ 185,000 Facility Upgrades
Il Palio East Patio Floor Replacement $ 18,000 Q2 Directors Room Carpet Replacement $ 25,000 Q2 $ 43,000
Landscaping and Backside Grounds Improvement (ongoing) $ 132,000 Q4
Parking Lot/Asphalt Repairs (ongoing)
Telecommunications Equipment and Upgrades
Equipment
Contingency
Grand Total of All Proposed 2021 RTA Projects $ 590,000
Add annual grandstand Maintenance/Administrative costs $ 716,494
Total funding needed from the 22nd DAA to fund 2021 proposed projects $ 1,306,494
Page 28 DEL MAR RACE TRACK AUTHORITY (RTA) AGENDA
March 30, 2021 11:00 A.M. Del Mar Fairgrounds Mission Tower via ZOOM 2260 Jimmy Durante Boulevard Del Mar, California 92014
As permitted by Executive Order N-25-20 (issued by Governor Newsom on March 12, 2020), the Del Mar Fairgrounds (DMF) will hold the Del Mar Race Track Authority Board Meeting on March 30, 2021 via ZOOM. If you wish to attend and participate in the meeting via teleconference, accommodations will be made. Please check the DMF website, www.delmarfairgrounds.com, later this week for updated information and instructions on how to participate in the meeting via ZOOM/teleconference.
Items listed on this Agenda may be considered in any order, at the discretion of the chairperson. To view this agenda on the Internet, visit our 22nd DAA website: www.delmarfairgrounds.com
A. Roll Call
B. Public Comment
C. Election of Officers
D. Approval of Minutes March 30, 2020 Meeting (Action) December 21, 2020 Meeting (Action) 1. E. 2.CLOSED EXECUTIVE SESSIONS (NOT OPEN TO THE PUBLIC) Pursuant to the authority of Government Code section 11126(a), (b), and (e), the Board of Directors will meet in closed executive session. The purpose of this closed executive session is: To confer with and receive advice from legal counsel regarding potential litigation involving the Del Mar Race Track Authority arising out of the COVID-19 pandemic. 1. Based on existing facts and circumstances, there is significant exposure to litigation against the Del Mar Race Track Authority.
F. Projects & Financial Reports 22nd DAA Financial Report(Informational) RTA Financial Report ( Informational) 1. Status of Projects Funded with 2015 Bonds (Informational) 2. Status of Completion ofAction/ 2020 Approved Projects (Informational) 3. G. 4.Other Business The Center Update (Surfside Race Place building remodel) (Informational)
H. Recess,1. if needed, to allow further State Race Track Leasing Commission actions related to this meeting
I. ADJOURNMENT
3/17/2021 6:14 PM Page 29
STATE RACE TRACK LEASING COMMISSION (RTLC) AGENDA
March 30, 2021 11:00 A.M. Del Mar Fairgrounds Mission Tower via ZOOM 2260 Jimmy Durante Boulevard Del Mar, California 92014
As permitted by Executive Order N-25-20 (issued by Governor Newsom on March 12, 2020), the Del Mar Fairgrounds (DMF) will hold the State Race Track Leasing Commission Board Meeting on March 30, 2021 via ZOOM. If you wish to attend and participate in the meeting via teleconference, accommodations will be made. Please check the DMF website, www.delmarfairgrounds.com, later this week for updated information and instructions on how to participate in the meeting via ZOOM/teleconference.
Items listed on this Agenda may be considered in any order, at the discretion of the chairperson. To view this agenda on the Internet, visit our 22nd DAA website: www.delmarfairgrounds.com
1. Roll Call
2. Public Comment
3. Approval of Minutes a. March 30, 2020 (Action)
4. Reports a. Del Mar Capital Improvement Account (Informational) b. DMTC Operating Results for 2020 (Informational) c. Racing Industry Update (Informational) d. 2021 Summer Race Meet Dates – July 16 thru September 6 (Informational) e. 2021 Fall Race Meet Dates – November 3 thru November 28 (Informational) d. 2021 Breeders’ Cup Dates – November 5-6 (Informational)
5. Recess to convene and hold the Race Track Authority meeting
6. Other Business
7. Adjournment
3/18/2020 1:59 PM Page 30 Food & Beverage Report February 2021
February 2021 Food Service Revenues were $323. Budgeted Revenues for February 2021 were $600.
Net distribution to the District for February 2021 was ($37,662) or (11648.85.%). Budgeted distribution for February 2021 was ($47,747) or (7957.8.)%.
Year-to-date 2021 distribution to the District is ($61,887) or (189.55%). The budgeted distribution for YTD 2021 was ($74,557), or (240.6%).
2021 % 2021 % 2020 % Feb-21 ACTUAL BUDGET ACTUAL
TOTAL REVENUE 323 100.00% 600 100.00% 186,647 100.00%
TOTAL COGS - 0.00% - 0.00% 41,148 22.05%
GROSS MARGIN 323 100.00% 600 100.00% 145,499 77.95%
TOTAL PAYROLL 11,747 3633.27% 14,895 2482.43% 337,171 180.65%
OPERATING EXPENSES 31,619 9779.70% 40,273 6712.23% 55,584 29.78%
NET PROFIT (43,042) -13312.98% (54,568) -9094.66% (247,256) -132.47%
CLIENT DISTRIBUTION (37,662) -11648.85% (47,747) -7957.83% (216,349) -115.91%
2021 % 2021 % 2020 % YTD ACTUAL BUDGET ACTUAL
TOTAL REVENUE 32,649 100.00% 30,992 100.00% 329,833 100.00%
TOTAL COGS (23) -0.07% (23) -0.08% 57,945 17.57%
GROSS MARGIN 32,672 100.07% 31,016 100.08% 271,888 82.43%
TOTAL PAYROLL 40,818 125.02% 43,966 141.86% 669,549 203.00%
OPERATING EXPENSES 62,582 191.68% 72,258 233.15% 111,629 33.84%
NET PROFIT (70,729) -216.63% (85,208) -274.93% (509,289) -154.41%
Y-T-D CLIENT DISTRIBUTION (61,887) -189.55% (74,557) -240.57% (445,628) -135.11%
J:\BOARD MEETINGS\Incoming Backup Materials\7 Committee Reports\F Finance_Budget\Food & Beverage Report 2021 - Feb 2021 Page 1
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Item 5-G, Finance Committee Report
Financial Report As has previously been reported, the 22nd DAA undertook a software conversion project for its accounting, payroll, and human resource management functions. Data entry into the new software began at the start of the new year and the project is well underway with timekeeping, payroll, and accounts payable activities occurring in it. The current phase includes accounts receivable which will be followed shortly by contracts and purchasing. Due to the necessity to fully reconcile all asset and liability accounts prior to closing the 2020 financial year and in order to ensure correct starting balances for all general ledger accounts going forward, there was a delay in providing the necessary information to the new software firm. In order to not delay the distribution of the monthly board packet, preliminary financial reports for January and February, along with the 2020 CDFA Statement of Operations will be sent under separate cover by Monday, April 12, 2021. As a reminder, due to the regular board meeting dates occurring early in the month, presented financial reports will continue to be one month behind, in other words February in April, March in May, etc. Contained in this packet are the supporting documentation for items 1) Premier P&L Statement, 4) Updated 22nd DAA 2021 Operating Budget, and 5) Homegrown Fun! Rates.
Background: Historically, the Network of California Fairgrounds (Network) was a self-funded industry that is part of the State’s 16 critical infrastructures of government, operating under the guidance of the California Department of Food & Agriculture (CDFA), and predicated on a business model that is almost exclusively reliant upon events and mass gatherings. The COVID-19 crisis obliterated this model due to State and local prohibitions on events and mass gatherings in order to advance public health and safety. The 22nd District Agricultural Association (22nd DAA) is the largest of the Network.
In 2020, efforts were made to mitigate this financial crisis such as reductions in permanent, temporary, and seasonal employees, termination or renegotiation of service agreements, significant reductions in energy and utility needs, and cancellation of capital improvement projects not yet underway. Throughout the year, local and state leaders were made aware of the anticipated shortfall by the end of calendar year as well as fiscal year.
For fiscal year July 1, 2020 through June 30, 2021, the Governor approved a budget augmentation under AB 75 which provided $40.3 million in General Fund support for District Agricultural Associations and Cal Expo to pay legally mandated costs that may be incurred during the state civil service layoff process. Through October 2020, the 22nd DAA received $7,524,907 in support for the payroll expenses of state civil service workers including employer portions of benefits, retirement contributions, and leave liability payouts. However, reduction in civil servant employees was not enough to overcome the devastating economic losses incurred.
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By December 2020, the 22nd DAA had amassed a liability of nearly $3 million in outstanding payables and paid nearly $500,000 in payroll expenses for the employees necessary to maintain and secure the property from becoming a public nuisance, keep the facility available to the community for emergency and natural disaster responses, and have a viable organization going forward, one that is ready to capitalize on revenue streams and opportunities. Fortunately, through the combined efforts of the Governor, state leaders, the Department of Finance, and CDFA, the 22nd DAA was notified that emergency funding support through the end of the calendar year was authorized and that negotiations for further funding through the fiscal year would resume in January.
Approach: The 22nd DAA Finance Committee and executive leadership continue to work to identify means of streamlining expenses while exploring additional funding streams. Monthly revenues are still short of ongoing operating expenses and payroll. Discussions with CDFA resumed in late January to secure the ongoing financial support necessary to maintain basic and legally mandated operations and payroll through at least June 30, 2021, estimated at $9 million.
In response to that request, the 22nd DAA was notified late January to expect an announcement from CDFA within the coming weeks of the process to formally apply for, and receive, this additional funding support.
On March 17, 2021, the 22nd DAA was notified that it would be receiving additional funding support in the amount of $1,600,000 (from the Targeted Support funds) in addition to Allocation support. On March 19, CDFA announced that it has entered into the second phase of the one-time $40.3 million general fund support distribution (AB75) for the $19.3 million remaining balance. Phase II will consist of $9.6 million Allocation to all DAAs and $9.7 million DAA Target Support to those demonstrating financial need. Applications are due April 16.
Process:
On January 8, 2021, the Governor released his proposed budget for fiscal year July 1, 2021 through June 30, 2022, and it is encouraging that he has proposed $50 million in General Fund support “to continue supporting state-affiliated fairgrounds operational costs” as the continued prohibition on mass gatherings jeopardizes revenue opportunities in 2021.
While it still has many months to go before passage, the Committee will monitor the state budget process and engage this board, local and state elected officials, and the public in supporting this necessary funding to ensure that all fairgrounds be preserved and advanced for future generations as vital resources to their respective communities.
The 22nd DAA’s economic impact on the greater San Diego County region is over $680 million, including nearly 5,000 FTE jobs created from all of the activities that take place on the Del Mar Fairgrounds.
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Item 5-G-4, Finance Committee Report – 2021 Operating Budget Update
To: 22nd District Agricultural Association Board of Directors From: Carlene Moore, Chief Executive Officer Date: April 8, 2021 Subject: 2021 Operating Budget for Homegrown Fun! Program
In the wake of the global COVID-19 pandemic, 2020 was a very challenging financial year for the 22nd District Agricultural Association (22nd DAA). In March of 2020, Governor Newsom issued Executive Order N-33-20, ordering “all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors,” and prohibiting mass gatherings of any size. In the interest of public health, this board postponed the 2020 San Diego County Fair, thus eliminating the most profitable program of the 22nd DAA which set the organization on a course of extreme uncertainty as to its financial future and ability to maintain short- and long-term debt obligations.
Early efforts to mitigate the impacts included successfully obtaining a Payroll Protection Program Loan (PPP) which inserted significant cash into the organization when the pandemic first began, negotiating reductions on insurance policies, and eliminating expenses other than basic necessities. Subsequent efforts included an overall reduction in human resources of 85% fewer permanent civil service, temporary, and seasonal employees resulting in a restructure of roles and duties for those that remained. Through the combined efforts of the board, leadership, and the remaining team of dedicated employees, along with the financial assistance of the California Department of Food & Agriculture (CDFA), the 22nd DAA continues to rise to the challenges. The approach to the 2021 Operating Budget is reflective of the continued uncertainties as the worldwide pandemic lingers on and public health orders remain in effect that severely impact business operations and forecasting. As such, programmatic elements have been brought forward in budget phases. In February, the Board approved the Administration and Overhead budget that encompassed maintaining basic operations and facility maintenance and security, as well as horse racing at limited capacities. In March, the Board approved the addition of the year-round facility rental Events Program budget. Also in March, the Board approved the Race Track Authority (RTA) budget. Working within the current constraints of public health orders and prioritization of helping the community get back on track through the administration of vaccines, the attached budget now includes the 22nd DAA’s summer kick-off event, Homegrown Fun! presented by the San Diego County Fair and incorporation of the RTA budget.
2021 is a new year and the attached budget update is a step in the continued forward direction of the 22nd DAA. Page 1 of 5
Page 34 The following information provides background for the assumptions made in the preparation of the proposed Homegrown Fun! (SDCF Program) portion of the 2021 Operating Budget. This is a very different looking format than previous years, but one that can more easily guide decision-making and provide greater transparency into the operations of the 22nd DAA. This budget was prepared using Zero Based Budgeting techniques and presents the information in a Program Based Budget format. This budget expands upon basic revenues and expenses related to Horse Racing, Horsepark, Emergency Relief, Administration & Overhead, Events, and now Homegrown Fun! and RTA, in a responsible manner for anticipated activities based on current public health orders. As a reminder, the approach has been to build a budget incrementally throughout the early part of the year as the impacts of the vaccination efforts are realized and new information and direction is presented for the return of mass gathering type events later in the year. A few items remain outstanding in order to complete the 2021 Operating Budget including The Center operation, Scream Zone, a Fall festival, and adjustments to Horse Racing and food & beverage now that Governor Newsom has announced the intention to lift most restrictions as of June 15. These items will be brought forward at next month’s meeting.
Approach: The format of the 2021 Operating Budget is presented as a Program Based Budget, providing better understanding of, and insight into, revenues and expenses according to programs and functions instead of broad categories that cover multiple programs. Going forward, this format will continue to provide better financial and statistical reports, creating a greater understanding of net operations. As discussed in the RTLC/RTA Committee report, Item 5-F, the 2021 RTA budgets have been fully incorporated into this latest version of the 22nd DAA 2021 Operating Budget under the Administration & Overhead Program. New to this budget update, Homegrown Fun! (SDCF program) will provide a taste of the San Diego County Fair to the community in a fun, responsible way as we slowly emerge from the restrictions of the pandemic. All state and county public health guidelines in effect at the time will be strictly adhered to. This event will kick summer off with lots of fun learning opportunities, tasty food and beverages, retail therapy, and good old-fashioned family fun. This budget was developed with a conservative approach to revenues and more aggressively toward expenses. All admission and parking will go on sale May 1st and be available for advanced purchase only, providing the ability to control capacities and adhere to social distancing requirements. Parking is limited, so in partnership with the North Coastal Transportation District (NCTD), patrons will have the ability to purchase a pass that includes admission to the event and a bus ride all the way to the gate. For those who like to ride the coaster, NCTD’s bus will also pick up at the Solana Beach Station.
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Page 35 Revenue Assumptions: Administration & Overhead Revenue Adjustments: Government Grants & Contracts: On March 19, 2021, CDFA announced that it is entering into the second phase of the one-time $40.3 million general fund support distribution for the remaining $19.3 million balance. Phase II will consist of $9.6 million Allocation to all DAAs and $9.7 million DAA Target Support to those demonstrating financial need. Applications are due April 16.
Received $1,562,000 Allocation + $1,600,000 financial need support + anticipate additional $7,400,000 Targeted Support in Phase II (based on previous request of $9 million) RTA: The RTA does not have a revenue source other than Pledged Revenues from the net operation of horse racing and net operation of food & beverage.
Anticipate $222,017 Pledged Revenue from net operation of horse racing (DMTC 2021 budget) Homegrown Fun! (SDCF Program column) This budget takes a very conservative approach to revenues for Homegrown Fun! and assumes that 13,000 admission tickets (65% of capacity) and 5,200 (2.5 ppl/car) parking tickets will be sold per day. Capacity has been calculated at 20,000 daily based on accommodating 6’ social distancing requirements then reduced by 50% based on the current Red Tier status. Contributions & Support: Consists of anticipated historic San Diego County Fair partners and supporters, including junior livestock show awards and large exhibit space partners. A corresponding expense that will transfers the funds for vendor space is included in Expenses.
Anticipate $800,000 sponsorship, including large exhibit space vendors (approximately $380,000 value) + $10,000 JLA donations Unearned Revenue: Consists of reimbursements for expenses directly related to the production of horse shows that will be held in conjunction with Homegrown Fun!
Anticipate $22,153 stall, ambulance, manure removal, and feed & bedding fees Earned Revenue: Consists of program revenues including admission, parking, concessions, etc.
• Admissions: Assumes 13,000 tickets per day at $10 each = $2,340,000. • Parking: Assumes 4,000 vehicles per day at $12 each = $864,000. • Concessions: Estimated at 25% of adjusted gross (after deducting sales tax) on $14 per person historic food cap at 13,000 people daily = $753,103. • Vendor Fees: Consist of fees for space charged to commercial vendors for this event, including anticipated $380,000 from sponsors, daily parking, and overnight camping fees = $562,050. • Premier: Net food & beverage sales = $114,742. • Junior Livestock Show: Participation, camping, and other fees collected from exhibitors to participate in the Jr. Livestock Show, June 21-27 = $46,500. • Merchandise: 2020 San Diego County Fair branded merchandise that was previously purchased will be offered for sale during the event = $100,000. • Other Revenue: Includes two horse shows in the Arena that are typically part of the fair, plus other miscellaneous revenues = $51,867.
Anticipate $4,823,762 in admissions, parking, concessions, vendors, food & beverage, merchandise, and other miscellaneous revenues Revenues from Homegrown Fun!: $5,655,915 Page 3 of 5
Page 36 Expense Assumptions: The format includes two major categories consisting of Personnel and Other Than Personnel Service (OTPS). OTPS is further broken down into Direct Expenses, which are amounts attributed specifically to one or more programs, and Shared Expenses that cannot be attributed directly to one or more programs, but is rather shared by many and split amongst programs by FTEs, attendance, or other allocation criteria. General ledger categories represent both Direct and Shared Expenses so they will be addressed together. The difference between Direct and Shared is how the expenses are allocated to each program. Allocation methodologies will be recommended by the Finance Committee and applied at a later date.
Personnel: Full Time salaries and wages have not yet been fully allocated from Administration and Overhead to Homegrown Fun! or other Programs. Once the Finance Committee determines methodologies moving forward, further adjustments will be made, but there is no net change in Full Time Personnel at this time. Homegrown Fun! (SDCF Program column) Part Time salaries and wages have been modified to include the addition of necessary part-time employees to support Homegrown Fun! such as traffic control, parking attendants, security and medical teams, and activity coordinators. Due to hours of operation and overtime requirements, multiple positions are budgeted to cover the full schedule of activity.
Anticipate $906,792 in wages + $113,982 in fringe benefits (payroll taxes and workers comp insurance) Expenses for part-time Personnel: $1,020,773
Direct & Shared Expenses: Administration & Overhead: RTA The RTA Budget for Administrative and Maintenance Expenses and budget for Projects that were previously approved by the 22nd DAA Board at the March 9, 2021 meeting have been fully incorporated, less the transfer back from the RTA to the DAA for reimbursement of personnel expenses $34,900
Administrative expenses $328,550-34,900 + Maintenance expenses $387,944 + 2021 Project expenses $590,000 Expense increase in Administration & Overhead for former RTA-related expenses: $1,271,594 Homegrown Fun! Expenses for Homegrown Fun! are based on a fiscally responsible approach to fulfilling the goal of a well- attended, safe, family friendly event and fall into these broad categories of program expenses.
• Marketing: Primarily in the form of digital ads and social media, including upgrades to the sandiegocountyfair.com website and media monitoring services. • Guest Experience: Pipe and drape for exhibit halls, outdoor tents and canopies, light towers, fencing and floor scrubbers as well as ADA ramps and golf carts for transportation of patrons, certification of traffic controller. • Awards and Prizes: For various one day and on-the-spot contests and the Junior Livestock Show.
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Page 37 • Safety and Security: With the priority on safety and security of all patrons, includes ATV patrols, event security, K-9 services, law enforcement, portable handwashing stations and Sudsy’s Barn Handwashing Station, and personal protective equipment for employees. • Entertainment and Shows: Includes a full line-up for the entire 18-day run featuring buskers, street performers, small stage shows, and other activities such as Swifty Swine Pig Races, Extreme Dock Dog Show, Wildlife on the Farm, Giant Bugs, Sunflower Saddle Ranch Pedal Tractor Activity for Kids, Godfrey the Magician, Something Ridiculous, Jackstraws, Jazz Trio, the Make and Take Series, demonstrations, contests, and fireworks. • Junior Livestock Show: In addition to the typical operating expenses of a junior livestock auction such as brand inspectors, judges, announcers, etc., this year’s show will also be broadcast as no patrons will be allowed to attend so additional expenses for audio-visual equipment and personnel support. • Utility increases for electricity, trash, water and sewer.
Direct and Shared expenses for Homegrown Fun!: $2,730,555, of which $499,942 are shared expenses that will be allocated across programs once the allocation methodologies are confirmed by the Finance Committee
Net Operations Since Shared Expenses have not yet been fully allocated across the programs, they remain primarily in the Administration and Overhead column. In other words, once the allocation methodologies are applied to shared expenses, the net operations of each particular Program will be more clearly stated.
Next Steps Staff continues to be creative and work to bring revenue opportunities forward that are in accordance with current public health guidelines. Based on the Governor’s announcement earlier this week of intentions to lift most COVID-19 restrictions on June 15, the Finance Committee will revisit the overall budget and make recommendations as necessary or warranted.
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Page 38 Item 5-G-4.
22nd District Agricultural Association
2021 Operating Budget
Horse Emergency Administration Revenue Source Total SDCF Events Racing Horsepark Relief + Overhead REVENUES Contributions & Support Corporations Sharp Copier $ 55,200 $ - $ - $ - $ - $ - $ 55,200 Other $ 810,000 $ 810,000 $ - $ - $ - $ - $ - Individual contributions Satisfaction of Prior Year Restrictions $ - PPP Loan $ - Unearned Revenues Reimbursement $ 708,985 $ 22,153 $ 724 $ 663,154 $ 22,954 $ - $ - Pledged Revenues $ 222,017 $ - $ - $ 222,017 $ - $ - $ - Government grants/contracts CDFA AB 75 $ 9,000,000 $ 9,000,000 CDFA AB 1499 $ 830,170 $ 830,170 CDFA AB 75 - UI $ 3,250,000 $ 3,250,000 CDFA SB 5 $ 1,764,000 $ 1,764,000 Scripps Health: Vaccine Super Station $ 414,000 $ 414,000 CDFA AB 75 - Allocation Phase II $ 1,562,000 $ 1,562,000 Earned Revenue Interest income $ 108,000 $ - $ - $ - $ - $ - $ 108,000 Leases $ 3,273,924 $ - $ - $ 1,650,000 $ - $ - $ 1,623,924 Food & Beverage $ 7,871,942 $ 114,742 $ 265,397 $ 7,489,102 $ 2,700 $ - $ - Payroll Reimbursement $ 138,926 $ - $ 23,288 $ 115,638 $ - $ - $ - Program Revenues $ 6,790,497 $ 4,709,020 $ 916,005 $ 360,000 805,472$ $ - $ - Miscellaneous $ - $ -
Total Revenue by Program/Function $ 36,799,661 $ 5,655,915 $ 1,205,414 $ 10,499,912 831,126$ $ 414,000 $ 18,193,294 Horse Emergency Administration Expense Source Total SDCF Events Racing Horsepark Relief + Overhead EXPENSES Personnel: Full Time Salaries/Wages $ 5,354,392 $ 523,756 $ 402,647 $ - 152,155$ $ 131,453 $ 4,144,382 Fringe $ 3,167,888 $ 309,876 $ 238,223 $ - $ 90,022 $ 77,773 $ 2,451,994 Part Time Salaries/Wages $ 1,523,303 $ 906,792 $ 310,184 $ 18,767 $ - $ 217,560 $ 70,000 Fringe $ 191,476 $ 113,982 $ 38,989 $ 2,359 $ - $ 27,347 $ 8,799 Total Personnel $ 10,237,058 $ 1,854,405 $ 990,044 $ 21,126 242,177$ $ 454,133 $ 6,675,174
Other Than Personal Service (OTPS): Direct Expenses Total Direct OTPS $ 7,815,223 $ 2,230,613 $ 41,554 $ 1,270,954 348,628$ $ 265,620 $ 3,657,854
Shared Expenses Total Shared OTPS $ 21,134,940 $ 1,087,328 $ 348,592 $ 6,962,923 166,751$ $ 51,878 $ 12,517,468
Total Expenses by Program/Function $ 39,187,221 $ 5,172,346 $ 1,380,190 $ 8,255,003 757,555$ $ 771,631 $ 22,850,496
Revenues Less Expenses $ (2,387,560) $ 483,569 $ (174,776) $ 2,244,909 $ 73,571 $ (357,631) $ (4,657,202)
Page 39 % of full Horse Emergency Administration Position or Expense Category time Budget SDCF Events Racing Horsepark Relief + Overhead Total
Personnel
# Full Time Enter Fringe Rate for FT Staff Here: 59.2% % % % % % % 1 Chief Executive Officer (Secretary-Manager VII) 100% $ 204,210 100% 100% 3 Career Executive Assignment 100% $ 533,131 33% 33% 34% 100% 1 Supervising Environmental Planner 100% $ 140,314 100% 100% 7 Staff Services Manager II - Managerial 100% $ 852,062 29% 14% 5% 52% 100% 1 Staff Services Manager II - Supervisor 100% $ 115,258 100% 100% 4 Staff Services Manager I 100% $ 419,962 25% 75% 100% 1 Staff Services Manager I (Specialist) 100% $ 104,990 100% 100% 1 Accounting Administrator II 100% $ 120,269 100% 100% 1 Telecommunications Systems Manager I - Supervisor 100% $ 110,952 100% 100% 2 IT Specialist I 100% $ 215,976 100% 100% 1 Equestrian Center Manager 100% $ 99,967 100% 0% 100% 1 Graphic Designer III 100% $ 80,628 100% 100% 5 Associate Government Programs Analyst 100% $ 386,760 100% 100% 2 Event Services Supervisor 100% $ 172,831 13% 87% 100% 2 Audio-Visual Specialist Tech 100% $ 154,704 100% 100% 1 Senior Personnel Specialist 100% $ 69,240 100% 100% 1 Plumber II 100% $ 68,892 100% 100% 1 Electrician II 100% $ 68,832 100% 100% 1 Heavy Equip Mechanic 100% $ 67,416 100% 100% 1 Satellite Facility Supervisor 100% $ 75,431 100% 100% 1 Maintenance Mechanic 100% $ 62,664 100% 100% 1 Executive Assistant 100% $ 57,804 100% 100% 1 Area Operations Supervisor CSF 100% $ 65,315 100% 100% 2 Tractor Operator-Laborer 100% $ 109,488 100% 100% 2 Bus Services Asst-Spec 100% $ 107,256 100% 100% 8 Maintenance Worker, DF 100% $ 417,504 25% 13% 63% 100% 2 Lead Security Guard 100% $ 82,056 100% 100% 10 Security Guard 100% $ 390,480 17% 83% 100% Total Full Time Salaries/Wages* $ 5,354,392 $ 523,756 $ 402,647 $ - 152,155$ $ 131,453 $ 4,144,382 100% Total Full Time Fringe $ 3,167,888 $ 309,876 $ 238,223 $ - $ 90,022 $ 77,773 $ 2,451,994 100% # Part Time Enter Fringe Rate for PT Staff Here: 12.6% % % % % % % 7 Security Guard-Unarmed $ 87,787 0% 1% 20% 0% 0% 80% 100% 5 Dispatcher $ 15,512 100% 0% 0% 0% 0% 0% 100% 6 Emergency Medical Tech $ 13,920 82% 18% 0% 0% 0% 0% 100% 42 Traffic Controller $ 263,004 22% 42% 0% 0% 36% 0% 100% 31 Cashier - Parking $ 143,920 43% 57% 0% 0% 0% 0% 100% 33 Attendant - Parking $ 240,128 18% 46% 0% 0% 37% 0% 100% 3 Traffic Controller $ 35,280 0% 0% 0% 0% 100% 0% 100% 3 Trolley Driver $ 4,116 0% 100% 0% 0% 0% 0% 100% 2 Supervisor - Dispatcher $ 10,560 89% 11% 0% 0% 0% 0% 100% 2 Supervisor - Emergency Medical Tech $ 8,840 100% 0% 0% 0% 0% 0% 100% 1 Coordinator - Emergency Medical Tech $ 5,250 100% 0% 0% 0% 0% 0% 100% 2 Nurse - Emergency Medical Tech $ 14,280 100% 0% 0% 0% 0% 0% 100% 6 Supervisor - Traffic Control $ 27,132 100% 0% 0% 0% 0% 0% 100% 3 Supervisor - Parking Attendant $ 11,220 100% 0% 0% 0% 0% 0% 100% 8 Bike Team $ 39,424 100% 0% 0% 0% 0% 0% 100% 1 Supervisor - Bike Team $ 6,156 100% 0% 0% 0% 0% 0% 100% 3 Investigator $ 8,874 100% 0% 0% 0% 0% 0% 100% 1 Administrative Assistant - Exhibits $ 9,600 100% 0% 0% 0% 0% 0% 100% 2 Administrative Assistant - Vendors $ 11,640 100% 0% 0% 0% 0% 0% 100% 1 Supervisor - Agriculture Program $ 4,410 100% 0% 0% 0% 0% 0% 100% 10 Exhibit Worker - Ag $ 16,800 100% 0% 0% 0% 0% 0% 100% 2 Exhibit Worker - HGF $ 5,600 100% 0% 0% 0% 0% 0% 100% 1 Skilled Labor - Carpenter $ 3,520 100% 0% 0% 0% 0% 0% 100% 4 Exhibit Worker - JLA $ 7,840 100% 0% 0% 0% 0% 0% 100% 1 JLA Secretary $ 1,590 100% 0% 0% 0% 0% 0% 100% 6 Laborer - Livestock $ 9,408 100% 0% 0% 0% 0% 0% 100% 4 Janitor - Livestock $ 4,480 100% 0% 0% 0% 0% 0% 100% 6 Cashier - Retail $ 14,448 100% 0% 0% 0% 0% 0% 100% 2 Supervisor - Cashier - Retail $ 7,616 100% 0% 0% 0% 0% 0% 100% 2 Supervisor - Concessions $ 7,208 100% 0% 0% 0% 0% 0% 100% 1 Auditor - Concessions $ 2,760 100% 0% 0% 0% 0% 0% 100% 8 Cart Driver - Guest Services $ 21,840 100% 0% 0% 0% 0% 0% 100% 1 Exhibit Worker - JLA $ 4,250 100% 0% 0% 0% 0% 0% 100% 8 Guest Services $ 21,224 100% 0% 0% 0% 0% 0% 100% 1 Supervisor - Guest Services $ 5,000 100% 0% 0% 0% 0% 0% 100% 3 Supervisor - Parking Cashier $ 10,506 100% 0% 0% 0% 0% 0% 100% 2 Administrative Assistant - Box Office $ 15,060 100% 0% 0% 0% 0% 0% 100% 2 Supervisor - Admissions $ 7,888 100% 0% 0% 0% 0% 0% 100% 28 Attendant - Gate $ 67,760 100% 0% 0% 0% 0% 0% 100% 2 Exhibit Worker - Sign Shop $ 4,928 68% 0% 32% 0% 0% 0% 100% 1 Public Information Officer $ 11,760 100% 0% 0% 0% 0% 0% 100% 1 Intern - Marketing $ 3,360 100% 0% 0% 0% 0% 0% 100% 3 Administrative Assistant - HR $ 8,280 100% 0% 0% 0% 0% 0% 100% 8 Laborer - Stage Hand $ 26,880 100% 0% 0% 0% 0% 0% 100% 1 Coordinator - Entertainment $ 12,036 100% 0% 0% 0% 0% 0% 100% Page 40 77 Janitor $ 155,232 100% 0% 0% 0% 0% 0% 100% 1 Skilled Labor - Equipment Operator $ 2,880 100% 0% 0% 0% 0% 0% 100% 21 Laborer $ 77,616 100% 0% 0% 0% 0% 0% 100% 10 Supervisor - Operations $ 24,480 100% 0% 0% 0% 0% 0% 100% Total Part Time Salaries/Wages $ 1,523,303 $ 906,792 $ 310,184 $ 18,767 $ - $ 217,560 $ 70,000 100% Total Part Time Fringe $ 191,476 $ 113,982 $ 38,989 $ 2,359 $ - $ 27,347 $ 8,799 100% TOTAL SALARIES/WAGES $ 6,877,695 $1,430,547 $ 712,831 $ 18,767 152,155$ $ 349,013 $ 4,214,382 TOTAL FRINGE $ 3,359,364 $ 423,858 $ 277,213 $ 2,359 $ 90,022 $ 105,120 $ 2,460,792 TOTAL PERSONNEL COSTS $10,237,058 $1,854,405 $ 990,044 $ 21,126 242,177$ $ 454,133 $ 6,675,174
# of Full Time Equivalents (FTEs) 0.87 0.72 0.00 1.13 0.35 24.94 28.00 % of all FTEs 3% 3% 0% 4% 1% 89% 100%
Non-Personnel / OTPS
Specific Expenses Advertising & Marketing $ 50,000 $ 50,000 $ - $ - $ - $ - $ - 100% Capital Improvement Projects $ 1,764,000 $ - $ - $ - $ - $ - $ 1,764,000 100% Cost of Goods Sold $ 10,650 $ 10,650 $ - $ - $ - $ - $ - 100% Dues & Subscriptions $ 31,525 $ 8,020 $ 3,770 $ - $ - $ - $ 19,735 100% Equipment Rental $ 115,710 $ 85,620 $ - $ - $ - $ 27,540 $ 2,550 100% Insurance $ 12,500 $ - $ - $ - $ 12,500 $ - $ - 100% Internet $ 68,796 $ - $ - $ 22,068 $ - $ - $ 46,728 100% Legal Expenses $ 321,353 $ 2,500 $ - $ - $ 30,000 $ - $ 288,853 100% Licenses & Permits $ 63,689 $ 720 $ 14,860 $ - $ 120 $ - $ 47,989 100% Loan Expense $ 645,886 $ - $ - $ 645,886 $ - $ - $ - 100% Office Expense $ 386,000 $ 380,000 $ 3,000 $ - $ 3,000 $ - $ - 100% Postage & Shipping $ 16,975 $ 1,350 $ - $ - $ - $ - $ 15,625 100% Printing $ 12,075 $ 12,000 $ - $ - $ - $ - $ 75 100% Professional Development $ 11,100 $ - $ - $ - $ - $ - $ 11,100 100% Professional Services $ 2,835,178 $1,564,350 $ 2,474 $ - $ 31,900 $ 161,850 $ 1,074,604 100% Promotional & Public Relations $ 12,500 $ 12,500 $ - $ - $ - $ - $ - 100% Repairs & Maintenance - General $ 320,890 $ 20,000 $ - $ - $ 24,480 $ - $ 276,410 100% Recognition & Awards $ 8,000 $ 6,000 $ - $ - $ - $ - $ 2,000 100% Reimbursable Expenses $ 258,081 $ 11,753 $ - $ - 246,328$ $ - $ - 100% Service Fees: Bank, Credit Card $ 49,698 $ 5,000 $ 5,000 $ - $ - $ - $ 39,698 100% Small Wares $ 5,200 $ 5,200 $ - $ - $ - $ - $ - 100% Supplies $ 131,290 $ 44,950 $ 6,900 $ - $ - $ 58,500 $ 20,940 100% Telephone $ 26,748 $ - $ - $ 3,000 $ 300 $ - $ 23,448 100% Travel & Transportation $ 14,900 $ 8,800 $ - $ - $ - $ - $ 6,100 100% Uniforms $ 18,000 $ - $ - $ - $ - $ - $ 18,000 100% Utilities $ 624,480 $ 1,200 $ 5,550 $ 600,000 $ - $ 17,730 $ - 100% $ - 0% Total Specific Expenses $ 7,815,223 $ 2,230,613 $ 41,554 $ 1,270,954 348,628$ $ 265,620 $ 3,657,854 100%
Shared Expenses (allocated by FTE) Cost of Goods Sold $ - 0% Dues & Subscriptions $ 775 $ 24 $ 20 $ 31 $ 10 $ 690 100% Equipment Rental $ 8,688 $ 269 $ 224 $ 349 $ 109 $ 7,737 100% Insurance $ 3,250,000 $ 100,485 $ 83,903 130,580$ $ 40,625 $ 2,894,407 100% Licenses & Permits $ 49,448 $ 1,529 $ 1,277 $ 1,987 $ 618 $ 44,038 100% Loan Expenses $ 620,000 $ 19,169 $ 16,006 $ 24,911 $ 7,750 $ 552,164 100% Printing $ 800 $ 25 $ 21 $ 32 $ 10 $ 712 100% Professional Services $ 145,965 $ 4,513 $ 3,768 $ 5,865 $ 1,825 $ 129,995 100% Supplies $ 33,850 $ 1,047 $ 874 $ 1,360 $ 423 $ 30,146 100% Telephone $ 37,212 $ 1,151 $ 961 $ 1,495 $ 465 $ 33,141 100% Uniforms $ 3,500 $ 108 $ 90 $ 141 $ 44 $ 3,117 100% $ - 0% Shared Expenses (allocated by other method) % % % % % % Advertising & Marketing $ - 100% 100% Cost of Goods Sold $ - 100% 100% Dues & Subscriptions $ 30,087 14% 6% 80% 100% Equipment Rental $ 90,371 5% 95% 100% Insurance $ 1,093,000 100% 100% Legal Expense $ 5,000 100% 100% Licenses & Permits $ 7,300 66% 34% 100% Loan Expense $ 4,439,933 100% 100% Office Expense $ 200 100% 100% Postage & Shipping $ - 100% 100% Printing $ 1,500 87% 13% 100% Professional Development $ 18,500 100% 0% 100% Professional Services $ 7,540,005 6% 3% 87% 4% 100% Promotional & Public Relations $ - 100% 100% Repairs & Maintenance - General $ 732,944 1% 55% 44% 100% Recognition & Awards $ - 100% 0% 100% Service Fees: Bank, Credit Card $ 3,650 58% 42% 100% Small Wares $ 5,000 100% 100% Supplies $ 29,112 79% 21% 0% 100% Travel & Transportation $ 500 100% 100% Utilities $ 2,987,600 15% 85% 100% 100% 100% Total Shared Expenses $ 21,134,940 $ 1,087,328 $ 348,592 $ 6,962,923 166,751$ $ 51,878 $ 12,517,468 100% Total Non-Personnel / OTPS Costs $ 28,950,163 $ 3,317,941 $ 390,146 $ 8,233,877 515,379$ $ 317,498 $ 16,175,322 100%
Total Budget by Program/Function $ 39,187,221 $ 5,172,346 $ 1,380,190 $ 8,255,003 757,555$ $ 771,631 $ 22,850,496 $ 39,187,221
Percentage of Total Expenses 100% 13% 4% 21% 2% 2% 58% 100% *Full-Time salaries & wages presented at max pay range level of which 74% of current filled positions are at that level and by year end, 78% will be due to anniversary increases; not reflective of FY20/21 9.23% reduction Fringe Benefits are legally required payroll taxes and benefits contributed by employer: payroll taxes, workers comp, retirement, medical, dental, health, vision, OPEB, health stipend Page 41
Item 5-G-5, Finance Committee Report – Homegrown Fun! Rates
Staff requests approval of the following rates for the 2021 Homegrown Fun! presented by the San Diego County Fair.
Commercial Vendor Space $10.00 per square foot
Food Vendor Rent 25% of adjusted gross (after deducting sales tax)
Parking $12 per car
Admission $10 per person, kids under 5 free
NCTD Ticket Bundle $12 includes admission + Fare on the Sprinter, Coaster or Breeze
Commercial vendor space rent proposed is reflective of the 75% decrease in attendance as well as the decrease in number of spaces available in the modified footprint.
Food vendor rates are unchanged from 2019.
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2021 – 22nd DAA Board of Directors Meeting Dates PROPOSED NEW DATES, April 13, 2021 Meetings are held the second Tuesday of the month at 1:30pm. Meeting dates are subject to change.
Full Board Meeting Notice & Packet Board Meeting Date Agenda Posted Posted Wednesday, Friday, January 12 12/30/20 1/8/21 Friday February 9 Friday, 1/29/21 2/2/21 Friday March 9 Friday, 2/26/21 3/5/21 Friday April 13 Friday, 4/2/21 4/9/21 Friday May 11 Friday, 4/30/21 5/7/21
NO JUNE MEETING Friday July 13 Friday, 7/2/21 7/9/21 Friday August 10 Friday, 7/30/21 8/6/21 Friday September 14 Friday, 9/3/21 9/10/21 Friday October 12 Friday, 10/1/21 10/8/21 Friday November 9 Friday, 10/29/21 11/5/21 Friday December 14 Friday, 12/3/21 12/10/21
Page 43 Page 44
Page 45 Donna O'Leary
From: Beckie Samuels Sent: Tuesday, March 09, 2021 7:42 AM To: Donna O'Leary Subject: Del Mar Horsepark closure
To 22nd DAA Board, I want to voice my concern over the closing of the Del Mar Horsepark. I have listened in the the recent meetings and want to let you know that even though many of us are not speaking at the meetings, we have the same concerns about the closure as those that do. The horsepark has been an important part of my life here in Del Mar. I have shown my horse at Horsepark 4 times a year for the last 10 years. It is so wonderful to have this facility in our community. Other show grounds are at least an hour away, and inland where it is very hot in the summer. Del Mar is the perfect coastal location. The Fairgrounds is not able to take over all the shows which were held at Showpark, and there could not be a public riding school at the Fairgrounds. Losing this riding school leaves lots of kids no option to learn to ride. Horsepark brings a lot of horse enthusiasts spending money in our area for hotels, restaurants, shops , etc. I hope The Board takes the closure of Horsepark seriously and tries to find a solution to open it up soon. It seems there are equestrian companies that would like to rent the facility and run it responsibly, which would bring in funds to the District. Maybe an Equestrian committee of local, knowledgeable equestrians could be appointed to come up with recommendations of how to mitigate the problems and get Horsepark open. Please don’t allow Horsepark to sit and languish until it is not viable to open it again. Please know that a lot of us community members really care about this facility. Regards, Beckie Samuels
1
Page 46 Donna O'Leary
From: Carla Echols-Hayes Sent: Tuesday, March 09, 2021 11:16 AM To: Donna O'Leary Subject: email for March 9 Board meeting--to all Fairgrounds Board members
Thank you, Donna, for forwarding this email and making it part of the public record.
Dear Fairgrounds Board Members:
We have heard many times Board members say that we need an angel to reopen Horsepark. Well, the angels have arrived, on horseback.
San Diego County has long attracted top riders and trainers and their angels—known as sponsors. For example, the US Olympics horse sports committees will send only four horse-rider teams to Tokyo in dressage. All four top scoring teams reside in Southern California, and three of them—Steffen Peters, Guenter Seidel, and Nick Wagman—ride and train in San Diego.
Unfortunately, due to a pre-Covid decision to not upgrade the Horsepark warmup ring for Grand Prix required for international qualifications (approx.$50,000 for the upgrade), all of these Olympic hopefuls had to spend the last three months of 2021 in Wellington, Florida for qualifying shows. Many more San Diego County up-and-coming horse/rider teams also went to Florida for competitions across horse disciplines. This hurt businesses too.
As many of you are not that familiar with horse sports, here’s a snapshot of the economics from the American Horse Council in 2017:
ECONOMIC IMPACT OF THE UNITED STATES HORSE INDUSTRY*
As a large, economically diverse industry, the United States horse industry contributes significantly to the American economy. The following statistics are from the American Horse Council Foundation’s 2017 National Economic Impact Study.
The horse industry contributes approximately $50 billion in direct economic impact to the U.S. economy, and has a direct employment impact of 988,394 jobs. Additionally, the industry itself contributes $38 billion in direct wages, salaries, and benefits
From those direct effects, the horse industry’s contribution ripples out into other sectors of the economy. Adding these ripple effects results in an estimate of the total contribution of the horse industry to the U.S. economy of $122 billion, and a total employment impact of 1.7 million jobs.
In addition, Horsepark draws competitors from the entire West and Southwest, as well as international competitors from Latin America and Mexico. Our show visitors contribute to local lodging, food, and entertainment businesses.
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In other words, Horsepark could become a hugely successful enterprise, if properly managed by a professional show and stable operator who have maintained long-term relationships with angels. As for the angels, they place their trust in the private horse show and stable operators whom they have worked with over decades. As a government agency, 22nd DAA cannot attract this level of sponsorship.
We ask that you issue an RFP to lease Horsepark and see what opportunities the 22nd DAA has to increase profitability from Horsepark, get the property renovated by people who have a deep understanding of what’s important to build and sustain a thriving horse show and stabling venue, and pay for water remediation. The angels are waiting—who knows for how much longer.
Thank you for listening. Carla Echols-Hayes
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Page 48 Donna O'Leary
From: Edie Dwan Sent: Sunday, March 07, 2021 10:31 AM To: Donna O'Leary Subject: Del Mar Horsepark
Dear Board members,
I moved from Palo Alto to Carmel Valley four years ago because of the highly developed equestrian infrastructure in this area. Having witnessed the sell out and closure of countless horse facilities in the SF Bay Area over the past 40 years, I thought by moving to a horse intensive area like San Diego, I would have excellent access to show facilities, boarding, and trainers.
Like everyone in the large and multifaceted horse community here, I am devastated at the current closure of Del Mar Horsepark. The Horsepark is an outstanding and essential show facility in a key location. It's continuance as a show facility, with a lesson program and limited boarding, is vitally important to the health of all other training and boarding operations within 40 miles or more. People have come from Northern California, Nevada, etc., to show at our facility because of the excellent climate and well-developed infrastructure such as the covered arena and grass field. These are rare and cherished resources and worth preserving for their intended use.
Please consider with care the proposals that Friends of Del Mar Horsepark have lined up for qualified and experienced facility operators to lease the Horsepark. Any of them would do an excellent job of upgrading the facility as needed (water issues, footing, other repairs), and keeping it running as a profitable show and training facility. They have track records; they know what they are taking on. There is huge community support for the continuance of the facility. It's loss will have a long-term economic effect as our community becomes less attractive to equestrians without a nearby quality show grounds.
As has been stated before, the alternatives available with the Horsepark closure are limited and have major downsides. We already have so much in place at Horsepark. Please allow it to reopen soon under new management.
Thank you for your careful consideration, Edie Dwan
Owner of two horses boarded and trained in Carmel Valley Competitor in dressage
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Page 49 Donna O'Leary
From: Joanne Masters Sent: Monday, March 08, 2021 9:50 AM To: Donna O'Leary; Carlene Moore; Richard Valdez (SDFair); Lisa Barkett (SDFair); Frederick Schenk (SDFair); Michael Gelfand (SDFair); Kathlyn Mead (SDFair); Don Mosier (SDFair); Sam Nejabat (SDFair); Joyce Rowland (SDFair); Pierre Sleiman (SDFair) Subject: Plea to not close the Del Mar Horse Park
Dear DAA Executives and Board Members,
This area needs the Del Mar HorsePark. Not only for the revenue it contributes but for the humanitarian reasons.
During the fires in 2007 and since, this horsepark was a comfort and one of the last options for horse owners to escape the fires. When we lived in Fairbanks Ranch, the only option for our friends was to take their horses to there. It was a God send.
Additionally, this facility serves the public by providing a wonderful place for lessons, therapeutic horseback riding, prep for shows and much more. It is a wonderful location to the environmental river basin and endangered park. It is an important park of North County.
I do not know what data was used, how accurate it was or your motivation to close the park. I’m sure you did it for safety and with the data you had at the time.. However, now water data has emerged and public support has heightened.
On behalf of my entire family we request a reversal of your decision. Make all of us proud of the DAA Board.
Thank you for your consideration.
Joanne Masters and the Masters family
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Page 50 Donna O'Leary
From: Kara Nellor-Sunderland Sent: Wednesday, March 24, 2021 5:48 PM To: Donna O'Leary Subject: Save Del Mar Horsepark
Dear 22nd DAA Board Members:
I join the many others that are against the destruction of the Del Mar Horsepark. I have family members who have equestrian businesses and participate in shows and competitions. There is no other place like it and it is special to not only San Diego but Southern California.
Frankly, it is disgusting to turn this property into housing or any other development. A huge loss that can NEVER be restored.
Please save Del Mar Horsepark.
Respectfully,
Kara Sunderland
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Page 51 Page 52 Donna O'Leary
From: Laura DeMarco Sent: Saturday, March 06, 2021 5:07 PM To: Carlene Moore; Dustin Fuller; Katie Mueller; Michael Gelfand; Richard Valdez (SDFair); Don Mosier (SDFair); Kathlyn Mead (SDFair); Frederick Schenk (SDFair); Lisa Barkett (SDFair); Sam Nejabat (SDFair); Joyce Rowland (SDFair); Pierre Sleiman (SDFair); Spehn Deanna; [email protected]; [email protected]; Terry Gaasterland; Lesa Heebner; [email protected]; Gloria Todd (External); Dwight Worden; Jeff Barnouw Cc: Carla Echols-Hayes; Planning Subject: Item 5A: Del Mar Horsepark's lower water remediation costs and funding from leasing the facility to an experience equestrian operator Attachments: 638-01 Tory Walker Horsepark Letter 2021-03-05.pdf
****Important, please be sure to open attachments from trusted sources only. If there is any doubt, please contact the helpdesk first.**** Dear 22nd DAA staff and board,
To follow up on the board's request for more information, please find attached the findings and preliminary cost estimate for water remediation at Del Mar Horsepark from water engineering consultant, Tory Walker.
Walker found that Horsepark's existing infrastructure significantly protects the San Dieguito River Valley so that the cost of upgrades to meet current water quality regulations would be a maximum of $4M, far below previous estimates.
Here are some highlights from his attached report:
“…The extensive infrastructure already in place at Horsepark does much presently to protect water quality in the San Dieguito River Valley. With all wash racks already tied directly into the City of San Diego’s sanitary sewer system, it appears that no non-stormwater discharges currently leave the site; additionally, many of the roofs on the permanent stabling side of the Horsepark have downspouts that drain directly to the large swale that conveys offsite storm flows through the site…
With extensive infrastructure already in place, opportunities likely exist to optimize and enhance the Horsepark’s water quality strategies as a Medium CAFO (499 horses max.) for significantly less cost than without this infrastructure already in place…
Noting again that I have not prepared an opinion of probable cost, I do think, based on the above opinions and my 35+ years of practicing civil engineering, that implementation of the phased optimized plan for a Medium CAFO should not in any case exceed $4M, and I recommend the 22nd DAA engage Fuscoe (if they have not already done so) to evaluate feasible alternatives and estimated costs of those alternatives.”
In summary, the existing infrastructure the 22nd DAA installed at Horsepark at great cost(~$8M) in 2004-2005 was money well spent as it contributes to lowering the cost of compliance to a maximum of $4M vs. the previous $6-8M estimate.
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Page 53 This is why the San Diego Regional Water Board's Executive Officer report issued on February 10, 2021 noted that the last water quality complaint regarding Horsepark was over 14 years ago in 2007, and “The San Diego Water Board has not found any recent violations at the Horse Park nor received any recent reports of violations.”
In order to fund the TSO (Time Schedule Order) and water remediation project, Friends of Del Mar Horsepark recommend the facility be leased to a well-capitalized, knowledgeable equine operator. They can generate profits for the 22nd DAA, provide needed water remediation and facility upgrades, and operate horse shows and stabling, including the public riding school that trained generations of San Diegans how to ride and care for horses. This could also include a therapeutic riding program for children, veterans and adults since it has long been recognized that "the best thing for the inside of a person, is the outside of a horse."
To give you an idea of the breadth of the equestrian community, it is estimated that there are close to 700,000 horses in California in which San Diego County has more horses per capita than any other county in the state. Our region also contains some of our nation's best horses, riders and trainers in their respective disciplines. For example, there are more than a dozen Olympic-level trainers and equestrians, some of whom will be on the US Equestrian team competing in this summer's Olympic Games in Tokyo where they are expected to return again with medals. This will inspire more local Olympic hopefuls whose dreams cannot be realized without Del Mar Horsepark, our region's only equestrian sports facility.
At least three experienced equestrian operators intend to submit proposals to lease and manage Horsepark. Each has access to the capital, discounts, sponsorships, and fundraising opportunities to make Horsepark both profitable and a world-class equestrian sports venue, well before the Olympics return to Southern California in 2028.
We look forward to the Horsepark Committee recommending that staff draft and issue a RFP at next Tuesday's board meeting.
Thanks for your consideration,
Laura DeMarco and Carla Echols-Hayes Co-Founders, Friends of Del Mar Horsepark
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March 5, 2021
CARLA HAYES, CO-FOUNDER LAURA DEMARCO, CO-FOUNDER Friends of Del Mar Horsepark
Re: Review of Del Mar Horsepark Equestrian Facility – Storm Water Quality Assessment
Dear Carla and Laura,
At your request, I have conducted an independent investigation and review of a recent decision and plans concerning the Del Mar Horsepark Equestrian Facility. My efforts focused on water quality aspects and the feasibility of returning horses and equestrian events to the Horsepark.
I met with both of you onsite to inspect and assess existing drainage patterns and infrastructure, as well as to better understand both site constraints and possible opportunities for better management of manure and stormwater. I observed existing drainage features, such as swales, culverts, drainage inlets, berms and conveyance facilities for offsite runoff. I also observed existing equestrian facilities, including permanent stalls, wash racks, and arenas, noting their proximity to both drainage facilities and sanitary sewer facilities.
I have also reviewed publicly available materials pertaining to compliance of state and federal water quality regulations at the Horsepark. These include:
• “Notice of Intent for Conditional Waiver Supplemental Technical Information” (Report) prepared September 17, 2019 by Fuscoe Engineering, Inc. • The Water Quality Control Plan for the San Diego Basin (Basin Plan), prepared by the San Diego Regional Water Quality Control Board (Water Board) • Some correspondence and meeting agendas and minutes of the 22nd District Agricultural Association (22nd DAA) • A portion of the Water Board’s Executive Officer’s Report, dated February 10, 2021
Furthermore, I have spoken with Ian Adam, the primary author of the Conditional Waiver Report and project lead at Fuscoe. I asked him about the Report, and we discussed possible
Page 55 Del Mar Horsepark March 5, 2021
constraints and opportunities for the Horsepark operating as a Medium Confined Animal Feeding Operation (CAFO), all in the context of meeting or exceeding water quality regulations.
Having concluded my independent investigation and review, I have formed some initial opinions:
1. I am satisfied that Ian Adams and Fuscoe are performing well and are more than adequately representing the 22nd DAA before the Water Board and the community. Ian has a good understanding of the water quality regulations and site constraints; given more time, I believe Fuscoe will be in a good position to bring forward and analyze feasible and cost-efficient solutions for the Horsepark as a Medium CAFO that will meet or exceed water quality regulations, as dictated by permits issued and enforced by the Water Board. 2. The extensive infrastructure already in place at Horsepark does much presently to protect water quality in the San Dieguito River Valley. With all wash racks already tied directly into the City of San Diego’s sanitary sewer system, it appears that no non- stormwater discharges currently leave the site; additionally, many of the roofs on the permanent stabling side of the Horsepark have downspouts that drain directly to the large swale that conveys offsite storm flows through the site. Isolating, or keeping separate, “non-CAFO” storm flows from production areas (i.e., the areas where horses are housed and manure is stored) that have the potential to generate pollutants associated with a CAFO is a good Site Design Best Management Practice (BMP) already being implemented. 3. With extensive infrastructure already in place, opportunities likely exist to optimize and enhance the Horsepark’s water quality strategies as a Medium CAFO for significantly less cost than without this infrastructure already in place. More investigation and research should be done toward this end, but it appears initially to be a very promising and worthwhile pursuit. 4. Further development of a comprehensive plan for Horsepark that incorporates the optimized use of existing infrastructure will provide more flexibility for separating the production areas from the remainder of the facility (non-production areas). Thus, by isolating the production areas and ensuring storm water runoff from these areas does not mix with storm water runoff from the non-production areas, the volumes of storm runoff to be treated will be manageable.
Page 2 of 3 Job # 638-01 Page 56 Del Mar Horsepark March 5, 2021
5. A comprehensive phased plan for Horsepark that prioritizes implementation beginning with the separation and isolation of production areas should be an acceptable approach that will expedite the return of equestrian events to Horsepark sooner than later. For example, containment of manure within manure storage areas that are covered and elevated on concrete pads, and then routinely removed from the site, will significantly reduce the possibility of pollutants mixing with storm water or infiltrating into the ground. Similar source control and site design BMPs can be implemented almost immediately. 6. Following implementation of source control and site design BMPs that are informed by the optimized use of existing infrastructure, pollutant control treatment BMPs can be designed, permitted and constructed in accordance with a Time Schedule Order (TSO) approved by the Water Board. Both boarding and equestrian events should be allowed under the TSO with implementation of the source control and site design BMPs. 7. While I have not prepared an opinion of probable cost for implementation of a plan that will meet regulatory compliance obligations, it is at least clear that the initial costs with the phased implementation of a TSO will not be cost-prohibitive, but would allow the 22nd DAA to generate revenue to offset costs and plan for the higher costs of pollutant control treatment BMPs. 8. Noting again that I have not prepared an opinion of probable cost, I do think, based on the above opinions and my 35+ years of practicing civil engineering, that implementation of the phased optimized plan for a Medium CAFO should not in any case exceed $4M, and I recommend the 22nd DAA engage Fuscoe (if they have not already done so) to evaluate feasible alternatives and estimated costs of those alternatives.
Please let me know if you have any questions.
Respectfully,
TORY R. WALKER, PE, CFM, LEED GA, QISP President
Page 3 of 3 Job # 638-01 Page 57 Donna O'Leary
From: Martha Sullivan Sent: Wednesday, March 10, 2021 10:46 AM Cc: Donna O'Leary Subject: Message for the Board and Staff RE 2021 Revenues from Horse Racing
Good Morning! I would like to remind the Del Mar Fairgrounds Board and Staff that the Del Mar Thoroughbred Club has touted its use of Concerts and food/wine/beer events to increase attendance at the Racetrack in the past several years. Even with these additional events, the Board and Staff know that Food & Beverage revenues have declined steadily over the past several years. So with NO such Concerts nor food/wine/beer events planned in 2021, atop the continuing uncertainties of COVID transmission, as well as the continuing negative publicity for live horse racing — the $7.5 Million revenues from Food & Beverage Sales during Horse Racing in 2021 is problematic. I strongly caution reliance on such projections.
Martha Sullivan
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Page 58 Donna O'Leary
From: Nicole Chastain Sent: Sunday, March 07, 2021 1:58 PM To: Donna O'Leary Subject: Horse facilities
Hello, Just wanted to give my 2cents in what is happening with the show and horse facilities. I’ve been there to show many times over the past 15 years. It’s a great place to show and California needs to keep its equestrian use properties. So much has been taken from ag and equestrian use already- it would be a shame to lose such a nice venue. I have heard that the on-site management that was helpful to show managers had all left or been let go and that current management may not be giving an accurate idea of the current situation there. Without proper and active on site management and someone knowledgeable about the needs of keeping a facility prepared for shows the facility won’t be successful. I hope you consider the voices of your community. Our area in Santa Barbara County just came together and saved Earl Warren and raised the funds to do so working with the blessing of the city. Hoping to show there in the future. Best Nicole Chastain Price USEF “r” Dressage and Western Dressage Judge USAWE “S” Judge USDF Certified Instructor
Sent from my iPhone
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Page 59 Donna O'Leary
From: Steven Garcia Sent: Monday, March 15, 2021 11:28 AM To: Donna O'Leary; Richard Valdez (SDFair); Lisa Barkett (SDFair); Michael Gelfand (SDFair); Frederick Schenk (SDFair); Kathlyn Mead (SDFair) Subject: Del Mar Horsepark
Attn: 22nd DAA BOARD
Please follow through and shutdown this park that exploits horses by subjecting them to serious injuries and death. You will be doing the right thing! Horses are special animals that deserve more respect than to be exploited for profit and entertainment. People are aware of this and we can do without it.
Thank you!
Steven Garcia
Sent from my iPhone
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Page 60 Donna O'Leary
From: Carla Echols-Hayes Sent: Monday, April 05, 2021 5:15 PM To: Donna O'Leary Subject: Please send to all Fairgrounds Board members Attachments: Horsepark survey monkey graphs and tables.docx
Follow Up Flag: Follow up Flag Status: Flagged
****Important, please be sure to open attachments from trusted sources only. If there is any doubt, please contact the helpdesk first.****
TO: Fairgrounds Board members
FROM: Carla Echols-Hayes, Co-Founder, Friends of Del Mar Horsepark
RE: Survey monkey sent to horse community re possible Horsepark upgrades suggested by 22nd DAA staff at March Fairgrounds Board meeting--381 respondents
Background: On March 9, 2021, Dustin Fuller presented a clear and comprehensive status report on Horsepark. In his last slide, Dustin mentioned some possible upgrades suggested by staff: paving, RV hookups to sewer lines, renovating the public restroom, replacing an electrical transformer, adding a second covered arena, and adding lighting to arenas. He ended saying that they needed feedback from the equestrian community.
Friends of Del Mar Horsepark listened and posted an anonymous Survey Monkey. We received 381 responses from the equestrian community on possible improvements at Horsepark from 22nd DAA staff and from horse professionals.
All survey data graphics are attached. For the full survey results and comments, use this link: https://www.surveymonkey.com/stories/SM-TH6FNLYC/ password—Lukeandjessie2
Questions and results:
Question 1: “How many Horsepark events have you attended in the past 10 years?”
381 respondents, 82% visited Horsepark more than 6 times in the past 10 years.
Question 2: “What capacity did you attend Horsepark?” Pick all that apply (answers overlap)
380 respondents, 77% rider/trainer, 65% friends/family, 67% horse owners, 23% professional support (vets, farriers, judges, etc.), 2% horse show organizers
Importantly, 10 horse show organizers responded
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Page 61 Question 3: “What would you suggest to improve horse and rider safety?” Rate 1. Must Have, 2. Nice to Have, 3. Not Needed
Top rating based on weighted averages--1 being most important—UPGRADE show barns—weighted average 1.66; REPLACE FOOTING in arenas—weighted average 1.70; IMPROVE DRAINAGE in show barn aisles—1.80.
Lowest ratings—Second covered arena—2.37; Replace fencing 2.23; Install lighting on arenas—2.05; Repair/paint all barns—1.98
Comments: 75 total—additional suggestions for bathrooms. Overall sentiment captured here: “Del Mar Horse Park is a lovely & treasured Equine Facility. Everything about the location is desirable. Just about everything on the above list really falls into standard & on-going up-keep, repair & maintenance of the HorsePark show grounds. Footing wears out & becomes unsafe for horses that are jumping. Proper up-keep keeps the Horse Park safe for Horses, riders, spectators, training, vendors etc. The grass Show fields are rare in California & make the grounds qualify for some of the highest-level competitions to take place there…”
Question 4: “What would you suggest to improve horse and rider safety?” Rate 1. Must Have, 2. Nice to Have, 3. Not Needed
Ratings all “Nice to Have” to “Not Needed” based on weighted averages with 2 Nice to Have: Upgrade food court—2.09; renovate east bathrooms—2.09; RV sewer hook-ups—weighted average 2.17.
Lowest ratings—Repave parking lot—2.59; Reskin VIP tent—2.48; Repave/replace existing road—2.45; Add spectator seating to Grand Prix arenas—2.18.
Comments: 45 total—23 regarding upgrades mention bathrooms closer to show barns and better food.
Question 5: “When Horsepark reopens, how likely is it that you would return for horse shows or stabling?”
98.7% of respondents said Likely
Question 6: “What secondary events could Horsepark host that would be compatible with horse events?” Comments only.
Comment trends: Of the 360 responses, most suggestions involve animal-related events as well as other uses (some suggestions include multiple types of outdoor uses):
126 comments—dog-related events, including dog shows, agility, obedience.
97 comments—group events, including concerts, weddings, corporate events, educational, retail pop-ups, festivals, outdoor sports, and Fair parking
97 comments—horse events, including clinics, demonstrations, rodeo, trick horses
34 comments—animal events, such as pet adoption, 4-H, FFA, and livestock shows
31 comments—car/garden/art/craft events—day shows
Question 7: “What else would you suggest to Horsepark current management (22nd DAA staff)?” Comments only.
Comment trends: Of the 361 responses, most comments stated re-open Horsepark, as well as suggestions to include horse professionals and improve transparency and communications:
104 comments—re-open Horsepark 2
Page 62 87 comments—management needs to include horse professionals (55 of 87) who know what the facility needs for horse shows, as well as improved communication, friendly attitudes, and transparency
66 comments—emphasizes the importance of Horsepark to the entire Southern California horse community and to the historic significance to Del Mar and San Diego County.
Excerpts: “PLEASE listen to the community and maintain an input committee that would include 22nd Ag, trainers at the park, and community members. This forum could provide incredible guidance.”
“The Del Mar Horse Park is vital as an equestrian venue to both the community and the broader region. As more and more open spaces and equestrian venues are disappearing due to development and a general loss of open spaces, the Del Mar Horse Park remains an iconic, historical and beloved site of important events for a broad range and type of equestrian events. The Horse Park keeps the connection to horse sports alive in an area of California that has been integral to the development of Equestrian sports in San Diego County, the state of California and the United States.”
“Please accept the offer of help and money and expertise of these managers/show operators and get Showpark up and running again as a premier equestrian venue and economic boost for all the local hotels and restaurants that have suffered during the pandemic.”
Thank you for listening to the horse community and please read the comments and suggestions. We think you may see some interesting and exciting ideas for rebuilding Horsepark as a community event center with horses and much more.
Carla Echols-Hayes, co-founder, Friends of Del Mar Horsepark
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