Agenda 2020 04-29 Brian Pepin Peter DeHoff Michael Firenze Bernie Guzman Bob McKeon Chairman Vice Chairman Committee Member Committee Member Committee Member
Thank you for participating in your local government and the City of Poway Budget Review Committee
meetings.
Meetings | Regular Budget Review Committee meetings will be held on April 29, May 6, and May 13,
2020 at 6:00 p.m. Pursuant to the Governor’s Executive Order N-29-20, a local legislative body is
authorized to hold public meetings via teleconferencing and to make public meetings accessible
telephonically or otherwise electronically to all members of the public seeking to observe and to
address the local legislative body, during the period in which local public officials impose measures to
promote social distancing. Although these Regular Budget Review Committee meetings will be held at
the Council Chambers located at 13325 Civic Center Drive, Poway, CA 92064, the Council Chambers
will not be open to the public. Remote public participation is encouraged in one of the following ways:
To Watch Live: To Speak and Participate:
https://poway.org/brc Go to: https://poway.org/brc
To call in: (877) 853–5247
Enter Meeting ID: 963 2471 3085
Enter Participant ID provided on your computer
PLEASE NOTE: If you wish to participate, please
also read the Speakers section for detailed
instructions as it has changed.
Public Meeting Access | Residents are strongly encouraged to participate and view remotely at the
April 29, 2020 meeting via www.poway.org/brc (to speak and participate). Submission of written
comments concerning items on the agenda is encouraged.
Speakers | If viewing online or calling in via telephone, it is highly recommended to log in to the
waiting room at least 15 to 30 minutes prior to the commencement of the meeting. Persons wishing
to address the Committee on matters not on the agenda may do so under Public Comment. Those
wishing to speak on items on the agenda may do so when the item is being considered. If you wish to
speak and are joining the meeting online, please let the City Clerk know prior to the meeting or the
announcement of the item by raising your hand digitally or by submitting a chat. If you are not using
your computer’s audio, please remember to enter your Participant ID displayed on your computer
screen when prompted on the phone. If you choose to call in without logging in online and you wish
to speak on an item, you may press *9 when the Chairman asks for speakers at the time that the item
April 29, 2020 | 6 p.m.
Council Chambers | 13325 Civic Center Drive | Poway, CA | 92064
you wish to speak on is being considered. You may speak up to three (3) minutes. The Chairman may
reduce this time if there are a large number of speakers. PLEASE NOTE: Comments submitted via
email will be accepted until 3:00 p.m. of the meeting date and distributed to the Committee
Members as well as be made available online after the meeting.
Technical Support | For more information on how to connect, visit www.poway.org/meetinghelp. If
you have trouble connecting or accessing the meeting, the Information Technology team is available
to help at (858) 668-4451.
Agenda Materials | This agenda contains a brief summary of items staff and the Committee will
discuss. The Agenda and Agenda Packet are posted 72 hours prior to regular Budget Review
Committee meetings and are available for viewing on the City’s website at www.poway.org or the
Bulletin Board at the entrance of City Hall, 13325 Civic Center Drive. Sign up at www.poway.org to
receive email notifications when Budget Review Committee agendas are published online.
American Disabilities Act Title II | In compliance with the Americans with Disabilities Act of 1990,
persons with a disability may request an agenda in appropriate alternative formats as required by
Title II. Any person with a disability who requires a modification or accommodation in order to
participate in a meeting should direct such request to the City Clerk’s office 858.668.4530 at least 24
hours prior to the meeting.
CALL TO ORDER:
ROLL CALL:
PLEDGE OF ALLEGIANCE:
PUBLIC COMMENT: In accordance with State law, an item not scheduled on the agenda may be
brought forward by the general public for comment; however, the Budget Review Committee will not
be able to discuss or take action on any issue not included on the agenda. You may speak up to three
(3) minutes. Speakers have one opportunity to address the Committee under Public Comment.
STAFF ITEMS:
1. Budget Review Committee Mission and Charter (including Brown Act)
2. Budget Process Overview
3. Approval of May 22, 2019 Regular Budget Review Committee Meeting Minutes
4. The Projected Economic Impacts of COVID-19
COMMITTEE-INITIATED ITEMS:
CITY MANAGER ITEMS:
ADJOURNMENT:
State of California )
) ss. AFFIDAVIT OF POSTING
County of San Diego )
I, Faviola Medina, CMC, City Clerk of the City of Poway, hereby declare under penalty of perjury that this notice of
a Regular Meeting as called by the City Council of the City of Poway was posted and provided on April 24, 2020 at
2:00 p.m. Said meeting to be held at 6:00 p.m., April 29, 2020, in the Poway City Council Chambers, 13325 Civic
Center Drive, Poway, California. Said notice was posted on the Bulletin Board at the entrance to City Hall.
____________________________________
Faviola Medina, CMC, City Clerk
1 of 7 April 29, 2020, Item #3
DATE: April 29, 2020
TO: Honorable Chairman and Members of the Budget Review Committee
FROM: Jenny Paglinawan, Senior Administrative Assistant
(858) 668-4433 or jpaglinawan@poway.org
SUBJECT: Approval of Minutes
Summary:
The Budget Review Committee Meeting Minutes submitted hereto for approval are:
• May 22, 2019 Regular Budget Review Committee Meeting Minutes
Recommended Action:
It is recommended that the Budget Review Committee approve the Minutes as submitted.
Public Notification:
None.
Attachments:
A. May 22, 2019 Regular Budget Review Committee Minutes
Reviewed/Approved By:
Aaron Beanan
Director of Finance
Budget Review Committee
2 of 7 April 29, 2020, Item #3
CITY OF POWAY
BUDGET REVIEW COMMITTEE MEETING
MEETING MINUTES
May 22, 2019
City Council Chambers Observation Room
13325 Civic Center Drive, Poway, California
(Per Government Code 54953)
CALL TO ORDER
Chairman Pepin called the Regular Meeting to order at order at 6:00 p.m.
ROLL CALL
Peter DeHoff, Mike Firenze (Acting), Bernie Guzman, Dan Mathson, Brian Pepin
COMMITTEE MEMBERS ABSENT
Bernie Guzman arrived at 6:02 p.m.
STAFF MEMBERS PRESENT
Chris Hazeltine. City Manager
Wendy Kaserman, Assistant City Manager
Donna Goldsmith, Director of Finance
Alex Castanares, Budget Administrator
Bob Manis, Director of Development Services
Michael Obermiller, Director of Public Works
Brad Rosen, Information Technology Manager
Jenny Paglinawan, Senior Administrative Assistant
PUBLIC ORAL COMMUNICATIONS
None.
STAFF ITEMS
1.Approval of Minutes – May 8, 2019
A motion was made by Vice Chairman DeHoff to approve the minutes, seconded by Committee
Member Mathson. Motion carried unanimously.
ATTACHMENT A
City of Poway – Minutes – March 22, 2019
3 of 7 April 29, 2020, Item #3
2. Follow-up Discussion on Department Presentations
Assistant City Manager Kaserman introduced Information Technology (IT) Manager Brad Rosen and
welcomed back Directors Bob Manis and Michael Obermiller. Chairman Pepin opened the floor for
questions and comments from Committee members to staff.
Committee Member Mathson noted a lack of data that displays trends for revenue and expenditures
following 2013. He commented that the City has little control over revenue but does have control over
expenditures and should carefully review these. He inquired whether the proposed budget is fixed as
presented. Assistant City Manager Kaserman responded that Committee recommendations are
provided to Council who ultimately direct staff to make any changes to the budget. Vice Chairman
DeHoff suggested that percentages be added and cells be color coded for each line item in the budget
pages to more easily reflect changes and indicate trends over time. Committee Member Mathson
commented that the loss of the redevelopment agency has made it difficult to distinguish trends of
fiscal years following 2013.
Committee members directed questions regarding the City’s network security and disaster recovery
systems to IT Manager Rosen. Committee Member Firenze inquired whether the City is adequately
protected from cyber-attacks. IT Manager Rosen responded that hardware and firewalls were
upgraded in the last year; the contracted vendor NextGen manages the firewalls and makes changes
in response to potential issues. He explained that risks tend to stem from staff use of technology;
further extensive training and reminders will be given, and susceptible staff will be identified and
provided further training. He further explained that the vendor SecureWorks monitors the network
and notifies staff through a ticket system of potential risks. Committee Member Guzman inquired
whether staff work at home and how the network security is maintained. IT Manager Rosen
responded that employees can access the cloud-based software through a VPN and if a security issue
arises only the computers would be affected as they are not connected to the City’s network. Vice
Chairman DeHoff stated concerns over backups and inquired how far they go back and whether they
can be used to restore systems. IT Manager responded that the City utilizes traditional tape backups
that are stored offsite weekly; the tapes are rotated through about every 6 months. Vice Chairman
DeHoff inquired how often the tapes are tested. IT Manager Rosen responded that testing is
essentially done through requests to restore files; it is less common due to data redundancy and use
of virtual servers. He further added that a citywide restoration test has not been implemented
because it is not feasible and there is not enough storage; data redundancy is in place to minimize
risk of data loss. Committee Member Guzman inquired whether security measures impact work
efficiency. IT Manager Rosen responded that staff are not impacted and do not experience delays.
Committee Member Firenze inquired whether IT is responsible for the industrial control systems and
whether these is stand alone. IT Manager Rosen responded that IT is involved in the network security
of the City’s SCADA (Supervisory Control and Data Acquisition) system but not in its daily operations.
He also responded that the system is segmented with certain controls given to specific staff and
consultants.
Chairman Pepin commented that Photoshop subscriptions exist in multiple departments. Committee
Member Mathson questioned whether the same Adobe subscriptions are needed and appropriate
for the assigned staff. IT Manager Rosen responded that he receives requests from departments,
which he vets based on the purpose, who will use the applications, and whether it is more cost-
effective to purchase individual tools versus Creative Cloud. He noted that companies have moved
City of Poway – Minutes – March 22, 2019
4 of 7 April 29, 2020, Item #3
from downloadable to subscription-based software. He explained that the City utilizes State contracts
established from competitive bidding and quote processes, which offer the best price. Committee
Member Guzman inquired whether the City utilizes Enterprise and GIMP. IT Manager Rosen
responded that it depends but the City typically uses Acrobat Pro; the Community Outreach
Coordinator utilizes GIMP. Committee Member Mathson commented on the use of licenses for Safety
Services. IT Manager Rosen responded that Adobe Illustrator is used to develop pre-plans of buildings
and that multiple firefighters update these at different stations.
Committee Members directed questions to Director Bob Manis. Vice Chairman DeHoff commented
that because the Planning Division is running $1 million in the red there should be considerations for
streamlining the regulatory process to reduce large expenditures and increase revenue. Director
Manis responded that the response is two-fold: the department is service oriented so that staff spend
time communicating with applicants, costs that cannot be recovered; secondly, the vast majority of
project review is based on flat fees, which is comparably lower than fees of surrounding areas. He
suggested a review of the fees that were last studied in 2009 and established by the Council. Vice
Chairman Pepin suggested that charges be split as line items in the budget according to specific tasks,
such as customer service and projects. Director Manis commented that this is a different perspective
he has not considered. He noted some projects are based on developer deposits against which staff
time is included in the flat fees. Chairman Pepin suggested the Committee recommend ways to
streamline projects. Director Manis responded that a significant factor of delayed projects are state-
mandated programs that the City could be audited for. He explained that the City also spends
significant time educating applicants on requirements and follows the mandated turnaround time for
plan reviews, utilizing consultants when backlogged. Committee Member Firenze inquired what
happens if the City is not compliant. Director Manis responded that the City could be assessed fines
along with the developer. He noted that an indemnification clause exists on discretionary permits, but
he was unsure whether this covered agency fines; staff will clarify with the City Attorney. Committee
Member Guzman commented that the delay may be due to the applicants’ lack of knowledge of the
process. Director Manis responded that the delay typically occurs after the entitlement (plan
conception) is approved and implementation begins but does not align with the initial design; this
results in a cycle of further review and corrections. Committee Member Firenze requested that staff
provide a list of projects that include the following categories: project; submittal date;
completion/close date. He inquired how many staff members touch the projects. Director Manis
responded that the Planner, Administrative staff, and Land Development Engineer (who is also the
Stormwater Administrator) of the department are involved in the project, which is then sent to Public
Works and Safety Services for review. Vice Chairman DeHoff commented that communication may be
an issue when developers continue to come back for clarification. Director Manis responded that a
single change to the project can have a trickle-down effect on the whole project and prompt additional
changes. He commented that staff regularly meet to review projects and offer to meet with applicants
and their engineers. Committee Member Firenze inquired whether any existing department
employees are eligible for retirement. Assistant City Manager Kaserman responded that she will need
to confirm with the Director of Humans Resources & Risk Management as to whether this information
could be provided. Director Manis responded that two employees recently retired and both vacant
positions were filled.
Committee Member Mathson suggested a more stringent look at criteria for implementing new
software and available cost savings. Director Obermiller responded that the proposed water
management system makes regulatory reporting easier. IT Manager Rosen commented that he
City of Poway – Minutes – March 22, 2019
5 of 7 April 29, 2020, Item #3
reviews proposed items from a technology perspective. Director Manis commented that his
department is working with IT to consider existing technology before purchasing new technology.
Committee Member Firenze inquired whether energy efficiency of equipment is considered. Director
Obermiller responded that the department pumps during off-peak hours and identifies anomalies in
usage by reviewing monthly SDG&E bills. Committee Member Firenze inquired whether cybersecurity
is covered under JPIA; staff will confirm with the Risk Manager.
Committee Member Mathson inquired why the Badger Cruz Air is not reflected in the Public Works
budget and what the amount encompasses. Staff clarified that all capital-replacement equipment are
budgeted in Finance; the amounts are the estimated replacement cost based on average life of the
equipment as well as the actual amount of what has been collected. Director Obermiller commented
that the City “piggy-backs” on State contracts that were competitively bid. Committee Member
Mathson inquired how often the Badger Air Cruz is utilized and whether renting the item was
considered. Director Obermiller responded that the equipment is used daily and that staff did review
rental options and found the cost of the particular model to be $12,000/month, which did not include
delivery, maintenance and insurance fees. He mentioned that the availability of the rental was also an
issue; Pubic Works acts as a first responder to emergencies and requires equipment to be on hand at
all times. Vice Chairman DeHoff inquired whether rental cost is allocated dependent upon use. Budget
Administrator Castanares responded that rental fees are collected from the division that used the
equipment when it was capitalized. Director Obermiller added that the Badger Air Cruz is used
primarily for stormwater.
Chairman Pepin opened the floor for public comments. Chris Olps inquired whether preventative
maintenance measures where in place relative to weather conditions. Director Obermiller responded
that staff have to follow a regimented process.
3. Discuss/Develop BRC Recommendations to Council
Chairman Pepin distributed copies of the draft memo of recommendations to Council. He called for a
recess at 7:09 p.m. to allow Committee members to read through the memo.
Chairman Pepin reconvened the meeting at 7:15 p.m. and provided an overview of points outlined in
the memo. He opened the floor for comments and suggestions from the Committee members.
Committee Member Mathson suggested that amounts related to the PCPA be explicitly included in
the memo. Committee Member Firenze suggested that more actions be outlined in the memo, such
as establishing work groups or committees that can dive into the challenges with the budget, namely
those related to Development Services, Community Services PCPA project, and Public Works. Vice
Chairman DeHoff suggested that the memo specify ideas for revenue growth, such as upzoning areas
that could increase the tax revenue collected. Committee Member Guzman inquired whether the
Business Park is built out or provides a revenue stream. Assistant City Manager Kaserman responded
that while the City received use-tax from retail companies, it does not receive use-tax from a
particularly large company of the Business Park that operates differently.
Committee Member Mathson stated that public safety is a priority but questioned the need for an
additional detective. Assistant City Manager Kaserman responded that this position existed prior to
cuts in personnel, so it is being restored as opposed to being added. Chairman Pepin expressed that
he was uncomfortable with recommending the elimination of the detective from the proposed
City of Poway – Minutes – March 22, 2019
6 of 7 April 29, 2020, Item #3
budget. Committee Member Mathson suggested a hiring freeze be implemented instead of personnel
layoffs, particularly for positions vacated due to retirements. Chairman Pepin inquired what items
were cut at the time of the recession. Assistant City Manager Kaserman responded that a response to
this question would require research, but it is known that there were a handful of layoffs and
elimination of rentals; most eliminations of positions occurred as employees separated from the City.
Vice Chairman DeHoff suggested increasing revenue by decreasing backlog in Development Services
and passing on liability to developers, which would allow the City to collect property tax more easily
and sooner.
n response to a committee inquiry, City Manager Hazeltine responded that the idea of a hiring freeze
is problematic; it would impact business management and service. Committee Member Mathson
suggested that with a hiring freeze the City could review the vacant positions after six months.
Committee Member Firenze commented that the City is involving itself in things and incurring liability
for risks it does not have to; the liability should be borne by the developers. He commented that this
affects revenue as developers are put off from the stringent process and unnecessary requirements
of the City, which it puts on itself. Committee Member Guzman suggested the Development Services
Department be tasked with re-engineering its process. Chairman Pepin clarified with the Committee
members that a recommendation to Council would be to pass on liability to developers and ease the
process for developers with the goal of increasing revenue. City Manager Hazeltine commented that
the City will still need to adhere to standards that maintain safety and integrity.
Committee Member Firenze suggested that the City contest outside agency mandates. Vice Chairman
DeHoff suggested that known unfunded projects be reviewed as a whole to identify particular ones
that can be “bundled” and addressed as a single project. Committee Member Guzman commented
that these unknowns are harder to control than personnel costs and suggested cuts in health benefits.
Assistant City Manager Kaserman commented that this would need to be negotiated and entered into
with a Memorandum of Understanding (MOU). Director Goldsmith added that implementing this cut
without negotiations would fall under unfair labor practices that could lead to a lawsuit against the
City. Chairman WHO? suggested that flipping employer and employee contributions to medical costs
be part of the negotiations. Committee Member Mathson suggested not hiring a detective. It was the
consensus of the Committee to include a recommendation to Council to not add new positions.
Committee Member Firenze suggested that trends and fiscal forecast be added to future budgets.
Vice Chairman DeHoff suggested that the General Fund not subsidize the Water and Sewer Funds.
Committee Member Mathson inquired what benefits part-time staff receive. Assistant City Manager
Kaserman responded that seasonal employees do not receive PERS or medical benefits. Committee
Member Mathson suggested that seasonal employees be hired on a rotating basis instead of using
contractors that require prevailing wage.
Chairman Pepin inquired from the Committee whether the redefining of how reserves are calculated
should be addressed to Council. It was the consensus of the Committee to address this to Council.
Assistant City Manager Kaserman noted that staff were given an exercise to identify essentials and
cut non-essentials from their budget, and to comment on how these cuts would impact service. She
City of Poway – Minutes – March 22, 2019
7 of 7 April 29, 2020, Item #3
added that Department heads were told this exercise may inform the development of the Fiscal Year
2020-21 budget.
The Committee members commented that they were impressed by the knowledge and work of the
staff. City Manager Hazeltine commented that he too has been impressed by the staff and their well-
intentioned efforts as true public servants.
Chairman Pepin inquired about the next process in developing the recommendations to Council, to
which Assistant City Manager Kaserman described the timeline and actions that each Committee
member needs to take.
Chairman Pepin opened the floor for public comment. Chris Olps inquired what the estimated
bottom-line dollar amount was after the exercise. Assistant City Manager Kaserman responded that
staff would need to complete a cost allocation calculation to determine this. Mr. Olps also inquired
whether funds set aside for capital replacements could be used for other purchases. Director
Goldsmith responded that the funds would first be used for the necessary items they were set aside
for, and then for other needed expenses. Mr. Olps commented that staff should look into one-time
funds and one-time unfunded costs.
Chairman Pepin thanked the Committee members, staff, and members of the public for their
participation in the Committee meetings. City Manager Hazeltine thanked the Committee members
and members of the public for their engagement and involvement.
4. Chair and Committee Member Initiated Items
None.
ADJOURNMENT
The Regular meeting adjourned at 8:29 p.m.
___________________________________
Jenny Paglinawan
Senior Administrative Assistant
City of Poway, California