Del Mar Race Track Authority Agenda

DEL MAR RACE TRACK AUTHORITY AGENDA

March 30, 2020 11:00 a.m. by Teleconference ALL PARTIES DIAL THE FOLLOWING TOLL-FREE NUMBER 888-204-5984 PARTICIPANT CODE DIAL: 669850 Del Mar Fairgrounds Board Meeting Room 2260 Jimmy Durante Boulevard Del Mar, California

And at the Department of General Services, 707 Third Street, 8th floor West Sacramento, CA 95605

Those 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 22nd DAA General Manager, (858) 755-1161, at least five working days prior to the meeting to insure the proper arrangements can be made. The items on this agenda may be considered in any order at the discretion of the chair. To view this agenda on the Internet, visit our 22nd DAA website: www.delmarfairgrounds.com

PAGE A. Roll Call 2

B. Public Comment ----

C. Election of Officers 3

D. Approval of Minutes – March 29, 2019 Meeting (Action) 4-6

E. Financial Reports 1. 22nd DAA Financial Reports (Informational) 7-8 2. RTA Financials/Budget Approval (Informational/Action) 9-12

F. Status of Completion of 2019 Approved Projects 13-17

G. 2020 Capital Improvement Projects Budget (Informational/Action) 18-21

H. Status of Projects Funded with 2015 Bonds (Informational) 22-28

I. Other Business 1. 22nd DAA Fair Dates for 2020 – June 5 thru July 5 (Informational) ---- 2. Surfside Race Place building remodel (Informational) ----

J. Recess, if needed, to allow further State Race Track Leasing Commission actions related to this meeting

K. ADJOURNMENT 3/25/2020 10:44 AM

DEL MAR RACE TRACK AUTHORITY ROLL CALL

March 30, 2020 11:00 a.m. by Teleconference ALL PARTIES DIAL THE FOLLOWING TOLL-FREE NUMBER 888-204-5984 PARTICIPANT CODE DIAL: 669850 Del Mar Fairgrounds Board Meeting Room 2260 Jimmy Durante Boulevard Del Mar, California

Del Mar Attendees • Richard Valdez, President RTA; 22nd DAA Director (in person) • Lisa Barkett, RTA/RTLC Member; 22nd DAA Director (via teleconference) • Kathlyn Mead, RTA/RTLC Member; 22nd DAA Director • Rita Walz, Treasurer-Controller RTA; 22nd DAA CFO • Josh Caplan, Deputy Attorney General (via teleconference) • Timothy Fennell, Secretary RTA; 22nd DAA CEO • Josh Rubinstein, President Del Mar Thoroughbred Club (in person)

MEETING LOCATION/SACRAMENTO Department of General Services 707 Third Street West Sacramento, CA 95605 8th Floor Board Room

Sacramento Attendees (VIA TELECONFERENCE) • Keely Bosler, Director, Department of Finance (Chair of RTLC mtgs) o Delegate member Gayle Miller, Chief Deputy Director • Daniel Kim, Director, Dept. of General Services • Karen Ross, Secretary, Department of Food & Agriculture o Delegate member Kevin Masuhara, Deputy Secretary

Page 2 Del Mar Race Track Authority Election of Officers 2020

The election of officers shall be the first order of business at the first meeting of the Authority held in each calendar year. The President and Vice President shall be duly elected by a majority of the Authority members. Although any sitting member may be eligible for the offices of either President or Vice President, the practice of the Authority has been to elect a 22nd DAA member as President, and the Director of Finance as Vice President.

Per the Joint Powers Agreement, the Board shall appoint a Secretary. The General Manager of the District holds the Secretary position. The Chief Financial Officer of the District is designated as the Treasurer and Controller of the Authority, per the amended by-laws of the Authority.

Page 3 DEL MAR RACE TRACK AUTHORITY MINUTES - March 29, 2019

The Del Mar Race Track Authority (RTA) met on March 29, 2019 by teleconference at the 22nd District Agricultural Association (22nd DAA) Board Meeting Room, 2260 Jimmy Durante Blvd., Del Mar, CA and the Department of General Services (DGS), 707 Third Street, 8th Floor Board Room., Sacramento, CA.

A. Roll Call RTA President called the meeting to order with a quorum present at 11:38 a.m.

Members present in Del Mar • Richard Valdez, President RTA; 22nd DAA Director • Lisa Barkett, RTA/RTLC Member; 22nd DAA Director • Kathlyn Mead, RTA/RTLC Member; 22nd DAA Director (arrived late) • Rita Walz, Treasurer-Controller RTA; 22nd DAA CFO

Others present in Del Mar • Josh Caplan, Deputy Attorney General • Dustin Fuller, • Joe Harper, CEO, DMTC • Mike Ernst, CFO, DMTC • Craig Fravel, President, Breeder’s Club • Chris Jaczko, Legal Counsel, DMTC

Members present in Sacramento • Karen Finn, RTA/RTLC delegate Chair; Program Budget Manager the Dept. of Finance sitting in for Keely Bosler, Director of Finance • Jim Martone, RTA/RTLC delegate member; Chief of the Asset Management Branch of the Real Estate Services Division for Dept. of General Services • Kevin Masuhara, RTA/RTLC delegate member; Deputy Secretary for Administration and Finance for Dept. of Food & Agriculture • Timothy Fennell, Secretary RTA; 22nd DAA CEO

Others present in Sacramento • Josh Rubinstein, President Del Mar Thoroughbred Club (DMTC)

B. PUBLIC COMMENT – No Public Comment

C. ELECTION OF OFFICERS RTA/RTLC Delegate Member Lisa Barkett moved to approve the election of Richard Valdez, Vice President for the 22nd DAA Board of Directors, as RTA President; Keely Bosler, Director for DOF, as Vice President; Tim Fennell, CEO 22nd DAA, as Secretary and Rita Walz, CFO 22nd DAA, as Treasurer-Controller. RTA/RTLC Delegate Member Kathlyn Mead seconded. All were in favor and the motion passed.

Page 4 Del Mar Race Track Authority Meeting Minutes March 29, 2019 Page 2 of 4

D. APPROVAL OF MINUTES – March 26, 2018 Delegate Member Lisa Barkett moved to approve the March 26, 2018 minutes. RTA President Richard Valdez seconded. Delegate Chair Karen Finn abstained. All others were in favor and the motion carried.

E. FINANCIAL REPORTS 22nd DAA Financial Reports RTA Treasurer/Controller Walz reviewed the report on pages seven and eight of the Board packet. This report is the financial results as of December 31, 2018. The audited results are not completed.

RTA Financials/Budget Approval RTA Treasurer/Controller Walz referred to the report on pages nine through fourteen of the Board packet.

F. STATUS OF COMPLETION OF 2018 APPROVED PROJECTS RTA Treasurer/Controller Walz referred to pages 15 – 18 of the Board packet which is the status of completion of RTA projects approved for the year 2018. There is a carry over into 2019 of approximately $334,000.

G. FIVE YEAR (2019-2023) CAPITAL IMPROVEMENT PROJECTS BUDGET RTA Treasurer/Controller Walz reviewed the proposed five year capital improvements plan for 2019 included in the Board packet on pages 19-23. The five- year capital improvement projects budget was approved by the 22nd DAA Board of Directors at their last meeting. Delegate Member Mead moved for approval of the five-year capital improvement projects budget as presented. Delegate Member Barkett seconded. All were in favor and the motion carried.

H. STATUS OF PROJECTS FUNDED WITH 2015 BONDS RTA Treasurer/Controller Walz reviewed the status of the projects funded by the 2015 Bonds included in the Board packet on pages 24 through 30. The water quality improvement project is the only holdover from 2015 and is an ongoing project. The 2015 bonds balance remaining is $41 million. The annual payment for the bonds is $3.2 million. Annual payment towards the $8.9 million loan from IBank is roughly a million.

I. OTHER BUSINESS 22ND DAA Fair Dates for 2019 – May 31 through July 4 CEO Tim Fennell gave an overview of what to expect from the 2019 San Diego County Fair.

Surfside Race Place building remodel and financing Carlene Moore, 22nd DAA Deputy General Manager, gave an update on the remodel of Surfside Race Place into a multipurpose event venue project. The project is expected to begin construction in May 2019 and be completed sometime in March

Page 5 Del Mar Race Track Authority Meeting Minutes March 29, 2019 Page 2 of 4

2020. CEO Tim Fennell added that the concert area will have a capacity for 1900 people. The facility will be open every day of the Fair and will be open during the races. Revenue will come from food and beverage, parking, concert tickets and sponsorships. Chair Finn asked when the first loan repayment is due. CFO Rita Walz reviewed the terms of the IBank loan agreement for the members.

J. RECESS if needed, to allow further State Race Track Leasing Commission actions related to this meeting. There was no further business with RTLC.

K. Adjournment – The meeting adjourned at 12:04 p.m.

Page 6 22nd District Agricultural Association Balance Sheet Unaudited

12/31/2019 12/31/2018

ASSETS

Current Assets: Cash & Cash Equivalents $5,486,680 $12,362,135 Restricted Cash - RTA 3,437,157 2,704,205 Restricted Cash -Premier 597,801 Restricted Cash - IBank WQI 3,825,813 8,900,000 Restricted Cash - IBank Ent. 10,317,176 Restricted Cash - Premier Ent. 622,473 750,000 TotalRestricted Cash Cash and Cash - F&B & JLA 336,166 268,448 Equivalents 24,623,266 24,984,788

Accounts Receivable, Net 697,931 973,397 Prepaid Expenses and Other Current Assets 731,749 586,845 Total Current Assets 26,052,946 26,545,030

Property and Equipment, Net 36,258,087 20,143,849 Deferred Outflow Pension 5,120,875 5,120,875

Total Assets $67,431,908 $51,809,754

LIABILITIES

Current Liabilities: Accounts Payable $1,935,032 $1,046,423 Deferred Revenue 1,170,864 1,036,895 Accrued Liabilities 2,444,929 1,196,687 Accrued Employee Leave 2,995,733 3,087,387 Other Current Liabilities 1,375,251 890,618 Current LT Debt - IBank WQI 364,974 354,344 Current LT Debt - IBank Ent. 302,820 Current LT Debt-Energy Loan 164,021 Total Current Liabilities 10,753,624 7,612,354

Deferred Inflow Pension 1,217,090 1,217,090 Net Pension Liability 37,344,227 33,738,365 Long Term Debt - IBank WQI 8,180,683 8,545,656 Long Term Debt -IBank Ent. 14,697,180 Long Term Debt -Premier Ent. 750,000 750,000 Total Liabilities 72,942,804 51,863,465

FUND EQUITY

Contributed Capital 44,222,421 44,222,421 Less Contributed Capital to RTA (36,670,665) (34,354,376) Retained Earnings (Deficit) (9,921,757) (9,196,151) Current Year Income/(Loss) (3,140,896) (725,606) Total Fund Equity (5,510,897) (53,712)

Total Liabilities & Fund Equity $67,431,908 $51,809,754

Page 7 22nd District Agricultural Association Statement of Operations For the Twelve Months Ending Tuesday, December 31, 2019 Unaudited Actual vs Actual Current Yr Current Yr 2019 2019 Variance Budget Prior vs Prior Yr vs Prior Yr Actual Budget Fav/(Unfav) Var % Year Fav/(Unfav) % Var Revenues Admissions - Fair $9,404,711 $10,246,348 ($841,637) (8.21%) $9,352,094 $52,617 0.56% Admissions to Concerts 2,077,562 2,002,465 75,097 3.75% 1,701,442 376,120 22.11% Carnival Rides 10,014,027 10,900,000 (885,973) (8.13%) 10,690,146 (676,119) (6.32%) Carnival Games/Space Rental 4,343,614 3,471,625 871,989 25.12% 1,006,886 3,336,728 331.39% Commercial Space 3,780,516 3,804,000 (23,484) (0.62%) 3,690,430 90,086 2.44% Concessions 4,055,701 4,325,000 (269,299) (6.23%) 4,197,733 (142,032) (3.38%) Entry Fees 707,737 973,185 (265,448) (27.28%) 883,484 (175,747) (19.89%) Food & Beverage 23,261,125 24,635,920 (1,374,795) (5.58%) 24,236,102 (974,977) (4.02%) Parking 6,220,762 7,193,627 (972,865) (13.52%) 5,751,665 469,097 8.16% Surf & Turf 2,030,661 1,804,732 225,929 12.52% 1,676,240 354,421 21.14% Sponsorships 2,403,341 2,579,332 (175,991) (6.82%) 2,346,106 57,235 2.44% Admissions - NonFair 860,250 900,000 (39,750) (4.42%) 841,631 18,619 2.21% Facility Rentals 3,892,204 3,896,776 (4,572) (0.12%) 4,002,504 (110,300) (2.76%) Reimbursement Costs 2,573,184 2,295,204 277,980 12.11% 2,822,326 (249,142) (8.83%) Admissions - OTB 54,698 66,700 (12,002) (17.99%) 115,045 (60,347) (52.46%) Track Commissions 322,427 258,400 64,027 24.78% 488,235 (165,808) (33.96%) Account Wagering 424,066 495,000 (70,934) (14.33%) 463,476 (39,410) (8.50%) Program Sales 96,914 71,000 25,914 36.50% 171,573 (74,659) (43.51%) Lottery 121,655 57,000 64,655 113.43% 116,980 4,675 4.00% Other - OTB 1,408 1,377 31 2.25% 9,070 (7,662) (84.48%) Del Mar National Horse Show 1,052,535 1,211,039 (158,504) (13.09%) 1,100,416 (47,881) (4.35%) Merchandise 808,594 907,180 (98,586) (10.87%) 886,716 (78,122) (8.81%) Leases 598,369 638,877 (40,508) (6.34%) 590,701 7,668 1.30% Interest 621,231 417,967 203,264 48.63% 389,589 231,642 59.46% Race Track 1,225,000 1,225,000 0.00% 1,225,000 0.00% Other 349,026 415,661 (66,635) (16.03%) 443,307 (94,281) (21.27%) Total Revenues $81,301,318 $84,793,415 ($3,492,097) (4.12%) $79,198,897 $2,102,421 2.65%

Expenses Payroll Related & Benefits 27,587,046 28,668,747 1,081,701 3.77% 28,731,011 1,143,965 3.98% Temporary Payroll Services 988,298 805,548 (182,750) (22.69%) 875,283 (113,015) (12.91%) Professional Services 3,076,842 3,245,033 168,191 5.18% 3,125,614 48,772 1.56% Entertainment & Show Expenses 4,674,593 3,965,075 (709,518) (17.89%) 4,242,206 (432,387) (10.19%)

Carnival Rides/Games Owner Split 8,434,558 7,881,625 (552,933) (7.02%) 5,541,001 (2,893,557) (52.22%) Food & Beverage Expense 17,690,412 18,270,856 580,444 3.18% 18,362,718 672,306 3.66% Advertising 1,132,287 1,150,800 18,513 1.61% 1,095,557 (36,730) (3.35%) Prizes/Premiums 890,595 957,657 67,062 7.00% 879,150 (11,445) (1.30%) Supplies 2,081,835 2,350,807 268,972 11.44% 2,257,540 175,705 7.78% Printing 516,223 575,600 59,377 10.32% 596,250 80,027 13.42% Parking 1,637 10,000 8,363 83.63% 1,938 301 15.53% Surf & Turf 1,439,770 1,301,663 (138,107) (10.61%) 1,245,242 (194,528) (15.62%) Transportation 402,138 445,000 42,862 9.63% 410,112 7,974 1.94% Contract Security & Medical 2,863,001 2,863,098 97 0.00% 2,627,389 (235,612) (8.97%) Telephone 130,392 148,100 17,708 11.96% 141,191 10,799 7.65% Utilities 2,565,051 2,450,283 (114,768) (4.68%) 2,507,099 (57,952) (2.31%) Repairs & Maintenance 743,822 868,518 124,696 14.36% 870,027 126,205 14.51% Insurance 1,260,185 1,307,859 47,674 3.65% 1,167,327 (92,858) (7.95%) Equipment Rental 1,431,469 1,409,937 (21,532) (1.53%) 1,398,081 (33,388) (2.39%) Other Administration 313,469 354,469 41,000 11.57% 344,042 30,573 8.89% Merchandise 383,128 416,650 33,522 8.05% 404,160 21,032 5.20% Lottery 115,559 42,600 (72,959) (171.27%) 110,987 (4,572) (4.12%) Depreciation Expense 1,412,903 1,450,000 37,097 2.56% 1,461,939 49,036 3.35% Interest/Other Expense 1,777,624 1,677,372 (100,251) (5.98%) 1,386,777 (390,846) (28.18%) Total Operating Expenses $81,912,837 $82,617,297 $704,461 0.85% $79,782,641 ($2,130,195) (2.67%)

Net Operating Income ($611,519) $2,176,118 ($2,787,636) (128.10%) ($583,744) ($27,774) (4.76%) Pledged Revenue Transferred to RTA 2,529,377 915,400 (1,613,977) (176.31%) 141,857 (2,387,520) (1,683.05%)

Net Income/(Loss) ($3,140,896) $1,260,718 ($4,401,613) (349.14%) ($725,601) ($2,415,294) (332.87%)

Potential breakage from unused Midway passes $ 542,186 $ 542,186

Total if breakage was earned $ (2,598,710) $ 1,260,718 $ (3,859,427) (306.13%) ($725,601) ($1,873,109) (258.15%)

*--In addition to the Pledged Revenues, transfers from the District to RTA as paid-in-capital include $2,316,289 in 2019, $1,871,554 in 2018, $3,134,205 in 2017, $3,145,000 in 2016, $1,278,702 in 2015, $1,165,000 in 2014, $5,240,000 in 2013, $1,090,041 in 2012, $979,874 in 2011, $1,214,625 million in 2010, $4,656,743 million in 2009, $4,078,631 in 2008, $1million in 2005, $1 million in 2004, $2 million'in 2003, and $2.5 million in 2002 (Total-to-date of $36,670,665 million).

Page 8 Race Track Authority Balance Sheet For the Twelve Months Ending December 31, 2019

12/31/2019 12/31/2018 Assets Current Assets: Cash and Cash Equivalents $143,013 $370,024 Investments -Unrestricted 614,422 1,032,196 Investments - Restricted Current 3,303,442 3,294,411 Investments - Restricted LT 3,333,092 3,327,273 Interest Receivable 3,129 6,119 Pledged Revenue Receivable 2,640 Due from RTLC 335,000 Prepaid Expenses 55,359 57,271

Total Current Assets 7,452,457 8,424,934

Property and Equipment, Net 79,028,762 82,870,623 Construction in Progress 8,132,728 8,857,358

Total Assets 94,613,947 100,152,915 ======Liabilities and Equity

Liabilities Current Liabilities: Current Portion of Long Term Bonds 1,330,000 1,275,000 Accounts Payable 357,556 538,428 Accrued Interest 491,985 504,739 Accrued Liabilities 240,910 80,606 ------Total Current Liabilities 2,420,451 2,398,773

Long Term Liabilities: Bonds payable-Long Term Bonds 38,520,000 39,850,000 Unamortized Premium 2015 Bonds 2,101,480 2,291,395 Defeased Gain on 05 Refunding 333,102 391,884 ------Total Long Term Liabilities 40,954,582 42,533,279

Total Liabilities 43,375,033 44,932,052

Fund Equity Contributed Capital 414,984 414,984 Contributed Capital from DAA 36,677,751 34,361,462 Retained Earnings 14,146,180 20,444,417

Total Fund Equity 51,238,915 55,220,863

Total Liabilites and Equity 94,613,948 100,152,915 ======

Page 9 Race Track Authority Statement of Operations For the Twelve Months Ending December 31, 2019 Unaudited

YTD YTD December December Variance Annual Actuals Budget Fav/(Unfav) Budget Revenue

RTLC Pledged Revenue DMTC Rent 390,000 2,200,000 (1,810,000) 2,200,000 District Pledged Revenue 2,529,377 923,400 1,605,977 923,400 Interest 119,194 75,000 44,194 75, 000 Other/Grant Income 6 - 6 -

Total Revenue 3,038,577 3,198,400 (159,829) 3,198,400

Page 9 Administrative Expenses: Professional Services 139,702 151,000 11,298 151,000 Insurance 81,289 83,094 1,805 83, 094 Administrative Expenses 147,534 146,212 (1,322) 146, 212

Total Administrative Expenses 368,525 380,306 11,781 380,306

Operations and Maintenance Expenses: Repairs & Maintenance 536,351 565,808 29,457 565, 808 Environmental Impact* 239,073 316,110 77,037 316, 110 Project Related Expenses* 817,478 1,861,640 1,044,162 1, 861,640

Total Ops & Maint Expense 1,592,902 2,743,558 1,150,656 2,743,558

Financing Revenues/(Expenses): Premium on Series 2005 Bonds 58,783 58,783 - 58, 783 Premium on Series 2015 Bonds 189,915 189,915 - 189, 915 Bond Interest (2,003,646) (2,003,646) - (2,003,646)

Total Interest Expense (1,754,948) (1,754,948) - (1,754,948)

Other Expenses Loss/(Gain)-Asset Disp/Impair 26,349 - 26,349 - Depreciation 5,594,345 5,580,000 (14,345) 5, 580,000

Total Other Expenses 5,620,694 5,580,000 12,004 5,580,000

Net Income\ (Loss) $ (6,298,492) $ (7,260,412) $ 961,920 $ (7,260,412) ======

*Represents amounts approved under Capital Improvement Project Recommendations for projects/equipment that are not depreciable under GAAP.

Page 10 DEL MAR RACE TRACK AUTHORITY CASH AND INVESTMENTS December 31, 2019

Cash and Cash Equivalents:

Checking Balance 51,018 Project Fund Checking Balance 61,804 Local Agency Investment Fund 30,191

Total Cash and Cash equivalents $ 143,013

Investments:

Restricted

Reserve Fund 3,333,092 Coverage Test Fund 7,267 Bond Fund 3,296,174

Unrestricted

Project Fund 544,861 Surplus Fund 69,562

Total Investments $ 7,250,957

Page 11 Del Mar Race Track Authority Proposed Budget for Administrative and Maintenance Expenses For the year 2020, with Projections for 2019

Projected Proposed Expense Category 2019 2020 Administrative Audit Services 126,214 130,000 Legal Services 3,060 3,000 Travel 598 500 Professional Services 10,428 10,000 Professional Fees- Capital Projects Bank charges 89 150 Permits & Licenses (for vehicles) 0 - Trustee Fees 1,750 1,800 Insurance-Business Interruption/Earthquake 81,289 82,400 Other Administrative Services: Payroll--Wages 102,338 102,338 Payroll taxes- ER portion 7,829 7,829 Reimbursement to 22nd DAA for Staff Expenses 34,894 34,900 Administrative expenses - - Other General Expenses 36 200 Total Administrative Expenses 368,525 373,117

Maintenance Expenses Equipment Maintenance 9,840 10,000 Elevators & Escalators Contract/ Routine Repairs 60,501 62,135 Elevators & Escalators Repairs- Outside Contract 31,684 71,000 Grandstand Supplies and Routine Maintenance 85,982 85,000 Kitchen Repairs Grandstand - - Air/ Heating/ Refrigeration Grandstand 6,931 7,500 Plumbing Repairs Grandstand 22,584 20,000 Sewer Maintenance 3,078 4,000 Structural Maintenance-Roof Repairs Grandstand - 2,500 Structural Maintenance- Building Repairs GS 628 1,000 Repairs- Electrical- Grandstand (1,434) 5,000 Repairs- Painting- Grandstand 4,789 4,000 Fire Alarms 50,922 45,000 Repairs and Maintenance- Other Buildings 29,809 30,000 Reimbursement to 22nd DAA for Staff Expenses 125,106 125,100 Hardware Maintenance- IT 31,313 18,200 Software and Licensing--IT 53,363 62,350 Supplies--IT - - Security Monitoring and Licensing 18,444 15,000 Total Maintenance Expenses 533,540 567,785

Total Admin and Maintenance Expenses 902,065 940,902

Page 12 Del Mar Race Track Authority 2018 and Prior Year Approved Projects

Status of Completion as of December 31, 2019 Page 1 3 As of January 31, 2020

Carryover Total Current Yr Previously 2019 Total Funds Expenditures Add Back Carry Approved Approved Including and Pending AP Balance Unused Over Project Name Projects Budget Carryover 12/31/2019 12/31/2019 Funds Funds Comments

Backside/Racing Program Improvements - 30,000 30, 000 28,624 1, 376 1,376 Add back funds not used in 2019

Backside/Health & Safety Improvements 239,340 239,340 239,042 298 298 Add back funds not used in 2019

Grandstand Improvements 26,800 26,800 26,729 71 71

Monitoring Least Tern Nesting Sites 15,990 140,000 155, 990 156,789 ( 799) Ongoing monitoring expense

South Lot Restoration--Phases 1 and 2 61,987 132,710 194, 697 89,424 105, 273 94,273 Ongoing project

Storm Water Management Plan 74,829 - 74, 829 47,566 27, 263 13,263 14, 000 Ongoing project

Phase One Backstretch Water Quality Improvements - - Project was funded with bonds and an I Bank loan - Annual Traffic Study 10,998 15,900 26, 898 16,583 10, 315 10,315

Five- Year Parking Study 45,132 45,132 15,546 29, 586 29,586

Stevens Creek Monitoring 27,500 27,500 25,335 2, 165 2,165 Add back funds not used in 2019

Computers/ Network Upgrades 133,500 133,500 120,031 13, 469 13,469 Add back funds not used in 2019

Facility Upgrades 75,000 1,053,500 1, 128,500 121,811 1,006,689 965,689 41,000 Exhibit hall roof contract $692,899 was with the DAA; paid in full to CCA Hold $41,000 for transformer replacements

Horsepark Improvements 100,000 100,000 69,210 30, 790 30,790 Add back funds not used in 2019

Landscaping & Grounds Improvements 135,000 135,000 135,047 ( 47)

Parking Lot Asphalt Repairs 50,000 50,000 100, 000 100, 000 100,000 Add back funds not used in 2019 - - - Telecommunications Equipement 13,500 13,500 14,999 ( 1,499)

Equipment Replacement 80,000 80,000 80,536 ( 536)

Contingency - - Total Projects 333,936 2,177,750 2, 511,686 1,187,272 1,324,414 1,261,295 55,000

3/25/20203:24 PM Del Mar Race Track Authority Funding Requested for 2019 Projects Including New/Ongoing Capital Project Allocations Status of Projects as of December 31, 2019

Racetrack/ Backside Program Improvements Requested funding of $30,000. $28,624 was spent in 2019, and $1,376 was added back.

Funds were requested to repair deteriorated spaces of lighting that are critical for safety during the early hours of morning training.

Racetrack/ Backside/ Facility Health & Safety Improvements Ongoing projects—Requested funding of $239,340. $239,042 was spent, and $298 was added back.

Due to the age of the structures on the backside of our race track, ongoing improvements are necessary. These improvements were made to ensure the safety of humans and horses through replacements of stairways, balconies, handrails, stalls and barns throughout the stable area. In addition, stable area doors / jambs were repaired or replaced. Miscellaneous upgrades were made to living quarters, tack rooms and restrooms. Testing and repairs were done as needed for all smoke detectors. Shower and sink drains throughout the barn area were “jet cleaned”. Sewer lines, wash rack storm drains and catch basins were cleaned with pumper trucks. Shed row posts were replaced throughout the stable areas.

Grandstand Improvements Requested funding of $26,800. $26,729 was spent, and $71 was added back.

In 2019, we continued our ongoing replacement of flat screen televisions throughout the Grandstand due to the corrosive sea air and normal wear and tear. In addition, we replaced broken plastic planters that act as screens to hide our back of house equipment with screens and recycled composite planters.

Least Tern Monitoring Ongoing project—carried over $15,990. Requested $140,000. $156,789 was spent.

In order to comply with the terms of our coastal development permit from the California Coastal Commission for the construction of the tunnel into the infield in the late 80’s, we must monitor four potential nesting sites for the least tern for ten years. 2020 will be our eleventh year of monitoring.

Page 14 2

South Lot Restoration—Phases One and Two Ongoing project—carried over $61,987. Requested $132,710. $89,424 was spent, and $94,273 was added back.

The South Overflow Lot Restoration project is broken into two phases. Construction on Phase 1 was approved by the California Coastal Commission in October, 2013 and began in November 2013. Phase 2 was approved in 2015 with work starting in late 2017. We are requesting an additional $79,810 for the required maintenance and monitoring work on Phase 1; and an additional $80,400 for the required maintenance and monitoring work on Phase 2 of this project.

Storm Water Management Plan Ongoing project—carried over $74,289. No funds were requested in 2019. $47,566 was spent in 2019. $13,263 was added back, and $14,000 will be carried over.

We have completed the initiation stage (5-year period) of our Storm Water Management Plan. However, completion of the initiation stage means that we are now required to complete, report, maintain and monitor all components of the plan. The yearly requirements are identified in the Plan and require extensive public outreach, education, monitoring, testing and best management practices.

Annual Traffic Study Ongoing project—carried over $10,998. $15,900 was requested in 2019. $16,583 was spent, and the balance of $10,315 was added back.

We are required by several Coastal Development Permits to conduct an annual parking and traffic study.

Five-Year Parking Study $45,132 was carried over. $15,546 was spent, and $29,586 was added back.

In addition to our annual required parking study, 2017 marked the year in which the Special Condition associated with our Consent Order was required. This requirement was the completion of a parking study that would be used to evaluate the use of the lower third of the East Overflow Lot. This first study was completed and submitted to the California Coastal Commission per permit requirements. Funds not spent were added back.

Stevens Creek Monitoring $27,500 was requested. $25,335 was spent, and $2,165 was added back.

In 2019, we purchased lighting shade to shield and shade, to the maximum extent feasible, all lighting adjacent to wetland resources along the western edge of our property. This is in compliance with our Coastal Development permit.

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Computer Hardware/ Software/ Network Upgrades Requested funding of $133,500. Spent $120,031, and added back $13,469.

Funds were requested for the replacement of our three servers. Our server solution was bought out, and will no longer be supported beyond 2020. The existing servers have neared their end of life. We replaced two in 2019, and plan to replace the third in 2020. We also purchased just the necessary replacement of computers to upgrade to Windows 10, printers, and other related equipment, including wireless access points that service the fairgrounds and our customers.

Facility Upgrades $75,000 was carried over. Requested funding of $1,053,500. $121,811 was spent. $950,000 was not spent by RTA, and $15,689 was added back. $41,000 was carried over.

The roof on one of our exhibit halls has been leaking severely during our rainy season. The current roof has had three layers of roofing placed over it since it was built in 1955. The proposed project will include removal of all layers of old roofing, asbestos abatement, replacement of any rotted substructure, and the installation of new thirty-year roofing and new rain gutters. We had requested $950,000 for this project. The contract with CFSA to manage the project was executed between the DAA and CFSA. Therefore, the DAA funded the project, and it will not appear on the RTA’s books.

Funds were requested to paint the exposed steel structures in the covered arena to address corrosion from the elements. While we had budgeted $75,000 for this project in 2018, the bids came in substantially higher than anticipated. We requested an additional $49,000 for this project, for a total of $165,000. The scope of work was limited in 2019, and only $111,000 was paid to the contractor, with the remaining funds added back.

The grandstand office and adjacent storage area for our Merchandising manager and assistant was remodeled at a cost of $8,838.

The replacement of an electrical transformer on the backstretch is being deferred to 2020, and funds will be carried over.

Horsepark Improvements Requested funding of $100,000. $69,210 spent, and $30,790 added back.

We requested funding for the ongoing replacement and renovation of the footing in the hunter show arenas at Horsepark for the safety of horses and riders who train and show there.

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Landscaping/ Backside Grounds Improvements Requested funding of $135,000. Spent $135,047.

This is an ongoing project, which covers the maintenance of the landscaping needs for the fairgrounds on a year-round basis, including the summer and fall race meets.

Parking Lot/ Asphalt Repairs and Striping $50,000 carried over. Requested funding of $50,000. Nothing spent, and funds were added back.

The patching, repairs and overlay of asphalt throughout the Fairgrounds as needed are all part of this ongoing project to maintain safe and smooth asphalt in parking areas as well as walkways. All work was held off in 2019.

Telecommunications Equipment & Upgrades Requested funding of $13,500. Spent $14,999.

We replaced radios and peripherals only as needed.

Equipment/ Vehicle Replacements Requested funding of $80,000. Spent $80,536.

Our old heavy-duty waste pumper truck had reached a point that it is no longer dependable and repair costs are in excess of what the vehicle is worth. We were incurring daily costs of $1,800 to $2,500 for an outside contractor to pump when our truck was being serviced. We purchased a lighter duty pumper truck, plus a separate trailer mounted unit so that we can split up the strain on the equipment and have a backup for when either is down for maintenance or repairs.

Page 17 Del Mar Race Track Authority Proposed Projects for 2020

Funding Needed 2020 to Complete Proposed Projects Timing of Projects Budgeted in 2019 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 239,340 Q4

Grandstand Improvements

Restoration/ Monitoring Projects

Monitoring least tern nesting sites 145,000 Monthly South lot restoration Phase 1 and 2 112,681 - Monthly Phase 2 MS-4 permit work 46,000 14,000 Quarterly Annual parking study 17,500 Q3 Industrial general permit 59,800 Monthly Total Restoration/ Monitoring Projects 380,981

Computers/Hardware/ Software/ Network Upgrades and Replacements

Simplivity server replacements (phase two) 75,000 Q3 PC's and monitors--replace as needed 30,000 Q1 Emergency fund for network support 5,000 Q4 Wireless access points 15,000 Q3 Total Computers/Hardware/ Software/ Network Upgrades and Replacements 125,000

Facility Upgrades

Stable fire alarm panel 40,000 Q1

Backstretch transformer replacements 41,000 Q1

Horsepark Replace footing in arenas 70,000 Q3

Landscaping and Backside Grounds Improvement (ongoing) 120,000 Q4

Parking Lot/ Asphalt Repairs (ongoing) -

Telecommunications Equipment and Upgrades

Equipment -

Contingency -

Grand Total of All Proposed 2020 RTA Projects 1,005,321

Add annual grandstand maintenance/ Administrative costs 940,902 Monthly

Add funding needed to complete 2019 projects 55,000 Q1

Total funding needed from the 22nd DAA to fund 2020 proposed projects and to complete projects budgeted in 2019 2,001,223

Projected expenditures by quarter: Q1 totals 451,096 Q2 totals 326,096 Q3 totals 503,596 Q4 totals 720,436 Total 2,001,223

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Del Mar Race Track Authority Funding Requested for 2020 Projects Including New/Ongoing Capital Project Allocations

Racetrack/ Backside Program Improvements Request funding of $30,000

Heavy rains in 2019 will require that the drainage “backbone”- inside rail of the main dirt track - be thoroughly cleaned. This project is critical to protect against flooding of the turf course.

Racetrack/ Backside/ Facility Health & Safety Improvements Ongoing projects—Request funding of $239,340

Due to the age of the structures on the backside of our race track, ongoing improvements are necessary. These improvements will be made to ensure the safety of humans and horses through replacements of stairways, balconies, handrails, stalls and barns throughout the stable area. In addition, stable area doors / jambs will be repaired or replaced. Miscellaneous upgrades will be made to living quarters, tack rooms and restrooms. Testing and repairs will be done as needed for all smoke detectors. Shower and sink drains throughout the barn area will be “jet cleaned”. Wash racks and catch basins will be cleaned.

Restoration/ Monitoring Projects Request funding of $380,981

These are ongoing projects. They are broken down as follows:

Least Tern Monitoring In order to comply with the terms of our coastal development permit from the California Coastal Commission for the construction of the tunnel into the infield in the late 80’s, we must monitor four potential nesting sites for the least terns for ten years. We have contracted these monitoring services at a cost of $145,000 for 2020.

South Overflow Lot Restoration (Phases 1 and 2) The South Overflow Lot Restoration project is broken into two phases. Construction on Phase 1 was approved by the California Coastal Commission in October, 2013 and began in November 2013. Phase 2 was approved in 2015 with work starting in late 2017. We are requesting $76,881 for the required maintenance and monitoring work on Phase 1; and $35,800 for the required maintenance and monitoring work on Phase 2 of this project.

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Phase 2 MS4 Storm Water Permit We have completed the initiation stage (5-year period) of our Storm Water Management Plan. However, with the completion of the initiation stage, we are now required to complete, report, maintain and monitor all components of the plan. The yearly requirements are identified in the Plan and require extensive public outreach, education, monitoring, testing and best management practices. The dollar amount needed to comply is $46,000.

Annual Parking/Traffic Monitoring We are required by several Coastal Development Permits to conduct an annual parking and traffic study. This study looks at key intersections in the area as well as road segments. The goal of the report is to inform Coastal staff of any issues related to 22nd DAA events and their impact to Coastal Act resources and in particular, coastal access. To comply with this effort, we are requesting funding in the amount of $17,500.

Industrial General Permit The 22nd DAA is subject to two storm water permits. The Phase 2 MS4 was discussed above. The Industrial General Permit is required for those areas on the property subject to Confined Animal Feeding Operations (i.e., areas where we house horses and livestock). This permit requires extensive storm water sampling, analysis and reporting to the Water Resources Control Board. In addition, public education/outreach is required as well as staff training. Depending on the test results of water quality sampling, additional compliance documents (response plans to reduce pollutant levels) may be required. To comply with this work effort, we are requesting $59,800.

Computer Hardware/ Software/ Network Upgrades Request funding of $125,000

Funds are requested for the replacement of the third of our three servers. Our Dell server solution was bought out by HP, and will no longer be supported beyond 2020. The existing servers are near their end of life. We replaced two in 2019, and will purchase the last one for redundancy in 2020. These servers are a hyper-converged solution that combine computing, networking and storage in to a single server solution. We have also budgeted for the necessary replacement of computers, as Windows 7 is no longer supported, printers, and other related equipment, including wireless access points that service the fairgrounds and our customers. Remaining funds will provide a contingency for network support.

Facility Upgrades Request funding of $40,000

The existing fire alarm panel in the stable area is over 30 years old. It failed in recent testing, and must be replaced to meet regulatory compliance and for the health and safety of humans and horses in our stable area.

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Horsepark Improvements Request funding of $70,000

We are requesting funding for the ongoing replacement and renovation of the footing in the hunter show arenas at Horsepark for the safety of horses and riders who train and show there, at a cost of $70,000.

Landscaping/ Backside Grounds Improvements Request funding of $120,000

This is an ongoing project, which covers the maintenance of the landscaping needs for the fairgrounds on a year-round basis, including the summer and fall race meets.

Page 21 AMOUNT PROJECTS FUNDED BY BOND PROCEEDS ALLOCATED SPENT TO DATE BALANCE

Main Track Replacement/ Improvments Main Track Replacement 3,929,715 (3,929,715) - Modification of banking and grading of main track 840,603 (840,603) - Equipment to maintain new track surface 497,525 (497,525) - 5,267,843 (5,267,843) -

Video Boards Paddock & 5 Points 402,908 (402,908) - Grandstand Main Track/Entrance 812,691 (812,691) - 1,215,599 (1,215,599) -

Backstretch Improvements Living Quarters enhancements (to accommodate winter meet) 253,236 (253,236) - Racing office infrastructure 130,592 (130,592) - Recreation Hall improvements 135,073 (135,073) - Cafeteria kitchen upgrade and renovation 361,032 (361,032) - 879,933 (879,933) -

Storm Water Improvements WQI 6,547,566 (6,108,121) 439,445 Valves and grate replacements 30,961 (30,961) - 6,578,527 (6,139,082) 439,445

Sewer System/ Pump Stations Pumps, Pipes and valve replacements 39,579 (39,579) - Hilton Sewer Pump Lift Station Rehab 239,264 (239,264) - Infield Sewer Pump Lift Station Rehab 87,259 (87,259) - 366,103 (366,103) -

Grandstand Improvements Seats, Boxes & Turf Club replacements 736,727 (736,727) - Box seating vanity panel replacements 177,440 (177,440) - Patio covers & frames 67,838 (67,838) - Suite refurbishments 311,969 (311,969) - Clubhouse seating expansion 495,203 (495,203) - Deck Coatings 874,448 (874,448) - Replacement of security surveillance cameras and network 199,465 (199,465) - Broadcast/ WiFi Infrastructure 37,743 (37,743) - Paddock pavers and artificial turf 321,055 (321,055) - Replace carpet in Mission Tower 90,799 (90,799) - 3,312,687 (3,312,687) -

Elevators & Escalators Elevator Replacements/ Upgrades 1,811,031 (1,811,031) - Escalator Upgrades 106,619 (106,619) - 1,917,650 (1,917,650) -

Fire Protection Improvements to GS Switch Room 119,035 (119,035) - Improvements to Telecomm Room 53,255 (53,255) - 172,290 (172,290) -

Roof Replacements and Coatings O'Brien 4,199 (4,199) - Exhibit Hall 2,131 (2,131) - Activity Center 18,658 (18,658) - Miscellaneous Roofs 352,073 (352,073) - Infield Beam & Roof Repair 118,132 (118,132) - 495,193 (495,193) -

Restrooms Finishes, fixtures and finishes 531,604 (531,604) - Jockey Room 140,612 (140,612) - 672,216 (672,216)

Page 22 AMOUNT PROJECTS FUNDED BY BOND PROCEEDS ALLOCATED SPENT TO DATE BALANCE

Electrical/ Mechanical Improvements Main Electrical Building Switch Gear, auto switch 87,820 (87,820) - Transformer replacements carnival lot 387,726 (387,726) - Energy Efficiency Projects 491,419 (491,419) - Grandstand HVAC Replacements 641,811 (641,811) - Exhibit Hall exhaust fans 222,225 (222,225) - Bing Crosby exhaust fans 4,061 (4,061) - Activity Center new AC 686,836 (686,836) - Miscellaneous buildings/exhaust fans 12,561 (12,561) - Transformer O'Brien 64,000 (64,000) - Server Room AC 9,380 (9,380) - Fire station generator 4,696 (4,696) - 2,612,536 (2,612,536) (0)

Potable/ Recycled Water Pipe, valve replacements 130,440 (130,440) - Add new locations for recycled water 94,626 (94,626) - 225,066 (225,066) -

Asphalt Removal and Replacement Repave Solana Ramp, Main Avenue, and South Main Lot 963,770 (963,770) -

Box Office Ticket Building 165,170 (165,170) -

Fencing along Via de la Valle 155,417 (155,417) -

TOTAL 24,999,999 (24,560,555) 439,445

Page 23 Del Mar Race Track Authority Status of Projects Funded with 2015 Bonds As of March 19, 2020

Main Track Replacement / Modification of Banking and Grading Level Percentages Main Track Replacement completed in 2015 at a cost of $4,427,000; $841,000 was allocated to racing surface modifications, which were completed in 2017.

The main race track was converted from a synthetic surface to natural dirt in 2015, and equipment was purchased that was necessary to renovate and maintain the new dirt surface. The RTA was reimbursed $5 Million from bond proceeds for this project. In our ongoing efforts to provide the safest possible environment for both horses and riders, we continue to work with industry stakeholders and experts to create year-round consistency to the racing surfaces for Thoroughbred racing throughout Southern California. These efforts include, but are not limited to, modifying the banking and grading of the main track to equal the percentage levels at Santa Anita Park, Southern California’s other premier racetrack. This project was under the direction of DMTC’s new Director of Track Maintenance, Dennis Moore who is a world renowned racing surfaces expert. In addition, Dr. Mick Peterson, Director of the University of Kentucky’s Agriculture Equine Program continues to analyze and test our racing surfaces on a routine basis to ensure their composition remains at optimal safety levels.

Video Boards $1,215,600 allocated; project completed in 2017.

Video boards in the Paddock and at the five-points intersection were replaced in 2014 and the RTA was reimbursed $497,535 from bond proceeds. The existing video boards on the main track and main parking lot entrance were aged and the view quality had deteriorated. The existing video board on the trackside was dismantled and panel components were utilized at other locations on the fairgrounds. New video boards for the main track and main parking lot entrance were installed in 2017.

Backstretch Improvements $880,000 allocated; projects were completed in 2018.

In order to accommodate the winter meet, enhancements were made to living quarters on the race track backstretch. The recreation hall for backstretch employees has been remodeled. The racing office infrastructure was also improved for the benefit of trainers, owners and employees who work there. Renovations and upgrades were made to the cafeteria kitchen that serves the horsemen and backstretch workers during the race meets. Equipment was replaced and the kitchen modernized.

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Backstretch Water Quality/ Storm Water Improvement Project $6,578,500 bond funds allocated; $6,139,000 spent to date; $439,000 remaining

As part of the Consent Order permitting, we asked the Coastal Commission for approval of a second race meet to take place in the fall, beginning in 2014. To allow racing to occur in the fall when there is the potential for rain, extensive infrastructure improvements are required. The second phase studies include the design and filtration system to capture and retain the 25- year, 24-hour storm associated with Confined Animal Feeding Operations (CAFO), the designation given to the 22nd DAA based on the number of horses housed at the facility at any given time throughout the year.

This project will divert storm water runoff from all CAFO designated areas of the Del Mar Fairgrounds to the proposed infield lake/wetland treatment system. Two existing lakes within the infield will be regraded with additional water quality features to accommodate the CAFO runoff. These features include liners for both lakes, re-grading of the lake berms, a constructed wetland with biological filter and a treatment plant which will all be connected through a circulation system and pump stations. The project will implement new storm drain lines to intercept discharges from CAFO areas and re-direct the discharges to a redesigned infield lake system that will have enough capacity to fully retain volumes associated with the 25-year storm event. Roof runoff from these CAFO areas will be separated and will not co- mingle with any CAFO runoff. The infield lake system will also be designed to accommodate 25-year, 24-hour discharges from the dirt track, turf track, infield and tarmac, which are not CAFO areas, but already drain to the infield lakes in existing conditions.

The proposed project will be designed to collect and retain up to 512,955 cubic feet (11.8 ac-ft.) and following treatment through the constructed wetland/treatment system, flows will either remain within the lakes or discharged out to Stevens Creek under strict discharge requirements.

The total estimated cost of this project was originally $12.5 Million, but has grown to $14.9 Million once bids were received. The project is underway, and is expected to be completed in 2021. Barnhart Reese is our General Contractor, and the project is being managed by the California Construction Authority. Bond proceeds are designated to pay for $6,548,000 toward project completion. The remainder is being funded by the District, with loan proceeds from the California Infrastructure and Economic Development Bank (I Bank).

Sewer System/ Pump Stations $366,100 allocated; completed in 2018.

This project included upgrades of pump stations, and the replacement of aging pipes, filters and valves for the Hilton pump station and the pavilion infield station.

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Grandstand Improvements $3,313,000 allocated; projects completed in 2018.

This project included refurbishment of luxury suites with new cabinetry, counter tops and furniture, replacement of seats in the boxes and in the Turf Club, replacement of vanity panels in the box seating area, patio covers and frames, expansion of clubhouse seating, coating of decks, and a new security camera surveillance network. New flat screen TV’s were installed at Turf Club tables, and new carpeting was installed in the Turf Club and Fifth Floor. An analog AV system has been updated to a digital system to provide better video quality throughout the Grandstand. The expansion of clubhouse seating was completed in 2016. Deck coatings were replaced on the most used walking surfaces. New surveillance cameras have been purchased and installed. Wireless capabilities were expanded to accommodate large event days and the enhancement of the overall customer mobile experience.

Our paddock was a natural grass oval with a concrete walkway around it. Each year, the concrete had to be covered with footing for the protection of the Thoroughbreds. This had to be installed and removed four times each year to accommodate the events before and in between the race meets. The grass required water and maintenance, particularly with the short transition between the fair and the summer race meet. We installed artificial turf and recycled rubber pavers in the Paddock area. This will reduce the need for water, and will cut down on the expense of the transitions between events in the Paddock in the future.

Elevators/ Escalators $1,918,000 allocated; projects completed in 2018.

New door contactors have been replaced on all elevators. Upgraded door assemblies have been installed on all seven elevators that include door operator, gate switch assembly, car door clutch, car door hanger and spring door closer at each landing. Remote monitoring devices have been installed on all elevators. This allows Schindler Elevator to monitor the equipment at all times. The system will page a route technician to respond to any issue that may occur. Rust remediation has been complete on all seven traction elevators. A spare drive and spare hoist motor has been purchased as a backup to help expedite repairs faster. New “soft starters” have been installed on all escalators to improve reliability and to extend the life of the equipment. Elevators 1 through 7 have been completely modernized with new motors, drives and controls.

Fire Protection $172,300 allocated; completed in 2018.

Fire suppression improvements were made to the grandstand switch room and to the Telecommunications hub.

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Roof Replacements and Coatings $495,200 allocated; completed in 2017.

Our existing roofs are in various stage of deterioration due to age and weather. Roof inspections and surveys have been conducted to determine the most critical and highest priority roofs in need of replacement. Phase I of small scale roof replacements has been completed, including smaller buildings such as office trailers, west lawn restrooms, Satellite Wagering extension roof, the fire station, and the carnival restroom. We then moved on to Phase II, which included coatings of Bing Crosby hall and deck coatings for the Grandstand.

Restrooms $672,200 allocated; completed in 2018.

Many restrooms at several locations have old, deteriorated, finishes, fixtures and are low in quality presentation to the public. We have completed renovations to some restrooms in the grandstand, the jockeys room, as well as in our older exhibit halls, Mission Tower and the infield.

Electrical/ Mechanical Improvements $2,612,500 allocated; projects completed in 2019.

Electrical projects included the replacement of transformers and the main building gear switch, as well as projects that will increase energy efficiency. Mechanical improvements included the replacement of aging HVAC units in the Grandstand, air conditioning for our Activity Center theme exhibit hall; and exhaust fans for the exhibit hall that has no air conditioning. Air conditioning was installed in the Activity Center in 2016. Transformer replacements for the west lot carnival area have been purchased and will be installed before the fair. We purchased new energy efficient LED lighting fixtures for the infield pavilion and for the Solana Ramp entrance to the backside of the fairgrounds. Additional energy efficient lighting for O’Brien Hall were installed.

Potable Water/ Recycled Water $225,000 allocated; completed in 2018.

Many of the older fresh water, pipes, valves and fitting were deteriorated and some valves did not operate properly due to corrosion. We have replaced the most critical main fresh water isolation valves, backflow devices, pipes and fittings, and added new locations for the use of recycled water.

Asphalt Removal and Replacement $963,800 allocated; completed in 2018.

The main avenue on the fairgrounds, the Solana Ramp entrance, and large portions of the main parking lot have deteriorated, cracked and broken out sections of asphalt.

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This project included the complete milling, removal, replacement, sealing and striping of the asphalt roadways at these locations.

Box Office Ticket Building Completed at a cost of $165,170

A new building at our main entrance replaced an old structure with one that is more functional, and can offer more walk-up windows to improve guest services.

Fencing along Via de la Valle $155,400 allocated; completed in 2017.

The existing chain link fencing along Via De La Valle was old, deteriorated, corroded and past its useful life. The City of Del Mar completed road and sidewalk improvements along Via De La Valle. During this construction our existing plant vegetation was removed and exposed deteriorated fencing, and compromised our secure perimeter. A new, stronger fence was designed and a city permit approval was received.

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