08-04-20 Agenda PacketAG EN DA Poway City Council Council Chamber I 13325 Civic Center Drive I Poway, CA I 92064 August 4, 2020 I 7 p.m. Thank you for participating in your local government and the City of Poway council meetings. Meetings I Regular City Council meetings are held on the first and third Tuesday of the month at 7:00 p.m. Meetings I 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 this Regular City Council meeting will be held at the Council Chambers located at 13325 Civic Center Drive, Poway, CA 92064, the Council Chamber will not be open to the public. Remote public participation is encouraged in one of the following ways: To Watch Live: www.poway.org/councilmeetings To Speak and Participate: Go to: www.poway.org/meeting and join using "Computer Audio" If your electronic device has no microphone or speakers: Call: (877) 853 -5247 Enter Meeting ID: 623 291 9830 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 I Residents are strongly encouraged to participate and view remotely at the August 4, 2020 meeting livestream via www.poway.org/councilmeetings (to watch live), via www.poway.org/meeting (to speak and participate), or on Cox Communications Channel 24 and Spectrum Channel 19. Meetings are rebroadcast on Mondays, Thursdays and Fridays at 6 p.m. and Saturday and Sundays at 3 p.m. Council meeting videos are archived and available for viewing on the City's website at www.poway.org/councilmeetings. Submission of written comments concerning items on the agenda is encouraged. Speakers I 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 Steve Vaus Mayor Caylin Frank Deputy Mayor Dave Grosch Councilmember Barry Leonard Councilmembe1-John Mullin Council member
to address the Council 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 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 Mayor asks for speakers at the time that the item you wish to speak on is being considered. You may speak up to three (3) minutes. The Mayor 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 City Council as well as be made available online after the meeting. Technical Support I 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 I This agenda contains a brief summary of each item the Council will consider. The Agenda and Agenda Packet is posted seven (7) days prior to regular City Council meetings and are available for viewing on the City's website at www.poway.org. Sign up at https://poway.org/list.aspx to receive email notifications when City Council agendas are published online. Items listed on the agenda with a "#" symbol are in preparation. American Disabilities Act Title II I 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. The City Council also sits as the City of Poway Planning Commission, Poway Housing Authority, Public Financing Authority and Successor Agency to the Poway Redevelopment Agency CALL TO ORDER: ROLL CALL: PLEDGE OF ALLEGIANCE: MOMENT OF SILENCE: PRESENTATION:
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 City Council 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 Council under Public Comment. CONSENT CALENDAR: The Consent Calendar may be enacted in one motion by the Council with a Roll Call Vote without discussion unless a Councilmember, a member of the public, or City Manager requests that an item be removed for discussion. WAIVER OF ORDINANCE TEXT READING: This is a motion to waive the reading of the text of all ordinances and resolutions at this meeting. 1. Approval of the July 7, 2020 Regular City Council Meeting Minutes 2. Approval of the July 15, 2020 Special City Council Meeting Minutes 3. Resolution to Continue the Existence of a Local Emergency within the City of Poway Due to the Novel Coronavirus (COVID-19) Global Pandemic 4. Updated Investment Policy 5. Authorization to Purchase Four (4) Mid-Size Pick-ups and Three (3) Full-Size Pickups by Informal Bid ORDINANCES FOR INTRODUCTION: None. ORDINANCES FOR ADOPTION: None. PUBLIC HEARINGS: 6. Conditional Use Permit 20-002 and Development Review 20-004: A Request to Extend the Expiration Date of the Previously Approved Conditional Use Permit and Development Review to Redevelop and Expand the Existing United Oil Gas Station and Add a Carwash and Mini Mart Located at 12462 Poway Road City Manager's Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. 7. Resolution Renewing the Fire Protection Special Tax to be Collected on the Property Tax Roll for Fiscal Year 2020-21 City Manager's Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. 8. Resolution Establishing Assessments for Poway Landscape Maintenance District 83-1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 City Manager's Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution.
9. Resolution Establishing Assessments for Poway Landscape Maintenance District 86-1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 City Manager's Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. 10. Resolution Establishing Assessments for Poway Landscape Maintenance District 86-2 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 City Manager's Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. 11. Resolution Establishing Assessments for Poway Landscape Maintenance District 86-3 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 City Manager's Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. 12. Resolution Establishing Assessments for Poway Landscape Maintenance District 87-1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 City Manager's Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. 13. Resolution Establishing Assessments for Poway Landscape Maintenance District 19-1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 City Manager's Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. 14. Resolution Establishing Assessments for Poway Lighting District to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 City Manager's Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. STAFF REPORTS: None. WORKSHOPS: None. COUNCIL-INITIATED ITEMS: None. COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 -(G.C. 53232(d)) CITY MANAGER ITEMS:
CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) CLOSED SESSION: 15. Conference with Legal Counsel Existing Litigation (Gov. Code§ 54956.9(a)) Name of Case: City of Poway v. Rothbart, San Diego Superior Court Case No. 37-2016-00033532-CU-OR-CTL 16. Conference with Legal Counsel Existing Litigation (Gov. Code§ 54956.9(a)) Name of Case: Hayes v. City of Poway (United States District Court, Southern District of California) Case No. 20-cv-0799 ADIOURNMENT State of California County of San Diego ) ) ss. ) AFFIDAVIT OF POSTING I, Carrie Gallagher, CMC, Interim 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 July 28, 2020 at 5:00 p.m. Said meeting to be held at 7:00 p.m., August 4, 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. 1~1.Jlttl~ Carrie Gallagher, CMC, Interim City Clerk
AGENDA RE PO RT City of Poway CITY COUNCIL DATE: August 4, 2020 TO: Honorable Mayor and Members of the City Council FROM: Carrie Gallagher, Interim City Clerk SUBJECT: Approval of Minutes Summary: The City Council Meeting Minutes submitted hereto for approval are: • July 7, 2020 Regular City Council Meeting Minutes The Poway City Council sits as the Poway Planning Commission, the Poway Housing Authority, the Public Financing Authority, and the Successor Agency to the Poway Redevelopment Agency. Recommended Action: It is recommended that the City Council approve the July 7, 2020 Regular City Council Meeting Minutes. Public Notification: None. Attachments: A. July 7, 2020 Regular City Council Meeting Minutes Reviewed/ Approved By: Wendaserman Assistant City Manager 1 of 6 Reviewed By: Alan Fenstermacher City Attorney Approved By: c.Ze City Manager August 4, 2020, Item #1
ATTACHMENT ANOTE: These draft meeting minutes are not official until approved by the City Council at the next scheduled meeting. CITY OF POWAY CITY COUNCIL REGULAR MEETING MINUTES July 7, 2020 City Council Chambers 13325 Civic Center Drive, Poway, California (Per Government Code 54953) (Meeting Called to Order as City Council/City of Poway Planning Commission/Poway Housing Authority/Public Financing Authority and Successor Agency to the Poway Redevelopment Agency) CALL TO ORDER Mayor Vaus called the Regular Meeting to order at 7:00 p.m. ROLL CALL John Mullin (via teleconference), Barry Leonard, Dave Grosch, Caylin Frank, Steve Vaus STAFF MEMBERS PRESENT City Manager Chris Hazeltine; City Attorney Alan Fenstermacher; City Clerk Faviola Medina; Development Services Director Bob Manis; Finance Director Aaron Beanan; Public Works Director Eric Heidemann; Fire Chief Jon Canavan (Note: Hereinafter the titles Mayor, Deputy Mayor, Councilmember, City Manager, Assistant City Manager, City Attorney, City Clerk and Director of Finance shall be used to indicate Mayor/Chair, Deputy MayorNice Chair, Councilmember/Director, City Manager/Executive Director, Assistant City Manager/Assistant Executive Director, City Attorney/Counsel, City Clerk/Secretary and Director of Finance/Finance Officer.) PLEDGE OF ALLEGIANCE Councilmember Leonard led the Pledge of Allegiance. MOMENT OF SILENCE Mayor Vaus led a moment of silence. Mayor Vaus announced that at the request of the applicant, Item #11, "Pre-Development Conference 20-001, A Request to Amend the Old Coach Golf Estates Specific Plan to Allow a Resort Hotel with Up to 140 Rooms at The Maderas Golf Club", would be continued to a later date. PUBLIC COMMENT Pierra Moise with the American Lung Association requested that City Council adopt a smoke free outdoor dining ordinance. 2 of6 August 4, 2020, Item #1
City of Poway -Minutes -July 7, 2020 Yuri Bohlen thanked Mayor Vaus for the Fourth of July fireworks display. Janet Lettang spoke regarding the Poway Center for the Performing Arts operations. CONSENT CALENDAR Motioned by Councilmember Leonard, seconded by Deputy Mayor Frank to approve Consent Calendar Items 1 through 8. Motion carried by the following roll-call vote: Ayes: Noes: Abstained: Absent: Disqualified: Mullin, Leonard, Grosch, Frank, Vaus None None None None 1. Approval of the June 2, 2020 Regular City Council Meeting Minutes 2. Adoption of Resolution No. 20-059 entitled "A Resolution of the City Council of the City of Poway, California, Finding and Declaring the Continued Existence of an Emergency within the City Due to the Novel Coronavirus (COVID-19) Global Pandemic" 3. Approval of Agreement with Dudek for Environmental and Biological Fieldwork for Stormwater Maintenance Programs; RFP No. 20-019 4. Acceptance of the Valle Verde Park Playground Renovation Project; Bid No. 20-006 with Tri-Group Construction and Development, Inc., as Complete 5. Approval of First Amendment to the Agreement with waterTalent LLC, for Water Treatment Plant On-Call Temporary Staffing Services 6. Approval of Lease Agreement with Sprint PCS Assets, LLC, for cellular communications equipment on the Buehler Reservoir 7. Ratification of Agreement with American Technologies, Inc. for Cleaning, Disinfecting Service, and As-Needed Remediation Services 8. Approval of First Amendment to the Agreement with Nova Commercial Co., Inc. for Daily Cleaning and Custodial Services ORDINANCES FOR INTRODUCTION None. ORDINANCES FOR ADOPTION 9. Second Reading and Adoption of Ordinance No. 842 entitled "An Ordinance of the City of Poway, California, Approving The Farm in Poway Specific Plan (SPP) 18-001; Assessor's Parcel Numbers 273-110-07-00, 273-110-08-00 and 273-110-18-00." Kevin McNamara (Project Applicant), via teleconference, expressed support for The Farm in Poway Specific Plan. 3 of6 August 4, 2020, Item #1
City of Poway -Minutes -July 7, 2020 Motioned by Mayor Vaus, seconded by Councilmember Leonard to adopt Ordinance No. 842 entitled "An Ordinance of the City of Poway, California, Approving The Farm in Poway Specific Plan (SPP) 18-001; Assessor's Parcel Numbers 273-110-07-00, 273-110-08-00 and 273-110-18-00." Motion carried unanimously by the following vote: Ayes: Noes: Abstained: Absent: Disqualified: Mullin, Leonard, Grosch, Frank, Vaus None None None None 10. Second Reading and Adoption of Ordinance No. 843 entitled "An Ordinance of the City of Poway, California, Amending the City's Zoning and General Plan Land Use Map, Changing the Zoning and General Plan Land Use Designations from Open Space-Recreation (OS-R) to The Farm in Poway Planned Community (PC-9) with Related Amendments to the Poway Municipal Code for The Farm in Poway Specific Plan (SPP) 18-001 (Zone Change 19-001 and Zoning Ordinance Amendment 20-001 ); Assessor's Parcel Numbers 273-110-07-00, 273-110-08-00 and 273-110-18-00." No speakers. Motioned by Mayor Vaus, seconded by Deputy Mayor Frank to adopt Ordinance No. 843 entitled "An Ordinance of the City of Poway, California, Amending the City's Zoning and General Plan Land Use Map, Changing the Zoning and General Plan Land Use Designations from Open Space-Recreation (OS-R) to The Farm in Poway Planned Community (PC-9) with Related Amendments to the Poway Municipal Code for The Farm in Poway Specific Plan (SPP) 18-001 (Zone Change 19-001 and Zoning Ordinance Amendment 20-001 ); Assessor's Parcel Numbers 273-110-07-00, 273-110-08-00 and 273-110-18-00." Motion carried unanimously by the following vote: Ayes: Noes: Abstained: Absent: Disqualified: PUBLIC HEARINGS None. STAFF REPORTS Mullin, Leonard, Grosch, Frank, Vaus None None None None (Item Continued to a date uncertain) Mayor Vaus announced that at the request of the applicant, Item No. 11 would be continued to a later date. 11. Pre-Development Conference 20-001, A Request to Amend the Old Coach Golf Estates Specific Plan to Allow a Resort Hotel with Up to 140 Rooms at The Maderas Golf Club 4of6 August 4, 2020, Item #1
City of Poway -Minutes -July 7, 2020 WORKSHOPS None. COUNCIL-INITIATED ITEMS Assisting Poway Restaurants with Outdoor Seating Mayor Vaus presented the item for Council consideration to support the local business community by purchasing picnic tables to loan to restaurants in order to continue operation since current state and county regulations prohibit indoor dining. The Mayor mentioned that various Poway businesses have volunteered to donate and deliver tables to restaurants. Wolfpacks (name not provided) via email, submitted correspondence requesting consideration for ADA compliant picnic tables. Anita Edmondson, representing the Poway Chamber of Commerce, via email, submitted correspondence in support of the proposal. In response to Council inquiry, City Manager Chris Hazeltine indicated that the City currently has 10 tables in stock, however, he is currently unaware of what the demand for tables will be. Mr. Hazeltine explained that the City will attempt to accommodate as many requests for picnic tables as possible, on a first-come, first serve basis. In response to Council inquiry, Mayor Vaus clarified that the City has simplified the process for local businesses to expand outdoor operations. Council discussion ensued in support of local restaurants, and in addition, discussed sponsorship of tables by local businesses as well as the need for consideration of ADA compliant tables. Council directed staff to proceed with the purchase of picnic tables for temporary loan to Poway restaurants for the expansion of outdoor dining areas. Once the restrictions on indoor dining are lifted by the state, the City will retrieve the picnic tables and place them into service in Poway parks. CITY MANAGER ITEMS: None. COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 -(G.C. 53232(d)) Mayor Vaus noted that tonight's meeting was the final meeting for City Clerk Faviola Medina and wished her well in her new venture. CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) None. 5 of6 August 4, 2020, Item #1
City of Poway -Minutes -July 7, 2020 ADJOURNMENT The meeting adjourned at 7:26 p.m. 6 of6 Carrie Gallagher, CMC Interim City Clerk City of Poway, California August 4, 2020, Item #1
AGENDA RE PO RT City of Poway DATE: TO: FROM: August 4, 2020 Honorable Mayor and Members of the City Council Carrie Gallagher, Interim City Clerk ~ (858) 668-4535 or cgallagher@poway.org CITY COUNCIL SUBJECT: Approval of the July 15, 2020 Special City Council Meeting Minutes Summary: The City Council Meeting Minutes submitted hereto for approval are: • July 15, 2020 Special City Council Meeting Minutes The Poway City Council sits as the Poway Planning Commission, the Poway Housing Authority, the Public Financing Authority, and the Successor Agency to the Poway Redevelopment Agency. Recommended Action: It is recommended that the City Council approve the July 15, 2020 Special City Council Meeting Minutes. Public Notification: None. Attachments: A. July 15, 2020 Special City Council Meeting Minutes Reviewed/ Approved By: Assistant City Manager 1 of 4 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager August 4, 2020, Item #2
ATTACHMENT ANOTE: These draft meeting minutes are not official until approved by the City Council at the next scheduled meeting. CITY OF POWAY CITY COUNCIL SPECIAL MEETING MINUTES July 15, 2020 City Council Chambers 13325 Civic Center Drive, Poway, California (Per Government Code 54953) (Meeting Called to Order as City Council/City of Poway Planning Commission/Poway Housing Authority/Public Financing Authority and Successor Agency to the Poway Redevelopment Agency) CALL TO ORDER Mayor Vaus called the Special Meeting to order at 11 :30 a.m. ROLL CALL John Mullin (via teleconference), Barry Leonard, Dave Grosch, Caylin Frank (via teleconference), Steve Vaus STAFF MEMBERS PRESENT City Manager Chris Hazeltine; Assistant City Manager Wendy Kaserman, City Attorney Alan Fenstermacher (via teleconference); Interim City Clerk Carrie Gallagher; Director of Finance Aaron Beanan (Note: Hereinafter the titles Mayor, Deputy Mayor, Councilmember, City Manager, Assistant City Manager, City Attorney, Interim City Clerk and Director of Finance shall be used to indicate Mayor/Chair, Deputy MayorNice Chair, Councilmember/Director, City Manager/Executive Director, Assistant City Manager/Assistant Executive Director, City Attorney/Counsel, City Clerk/Secretary and Director of Finance/Finance Officer.) PLEDGE OF ALLEGIANCE Councilmember Grosch led the Pledge of Allegiance. MOMENT OF SILENCE Mayor Vaus led a moment of silence. CONSENT CALENDAR None. COUNCIL-INITIATED ITEMS: 1. Sharing Outdoor Space (SOS) Initiative Mayor Vaus presented the item for Council consideration. Mayor Vaus explained that, in response to the state's most recent shutdown of certain indoor activities, the Sharing Outdoor 2 of 4 August 4, 2020, Item #2
City of Poway -Minutes -July 15, 2020 Space (SOS) Initiative would temporarily allow commercial use of parks for the duration of the restriction on indoor activity. Mayor Vaus further explained that the use of parks would be limited to Poway-based houses of worship and fitness-oriented organizations with a current Poway business certificate and commercial insurance naming the City as an additional insured on their policy. Joe St. Lucas, via email, submitted correspondence expressing concerns for noise, parking, trash and suggested posting a list of events scheduled for each facility on the City's website. Chris Cruse, via email, submitted correspondence expressing concerns for crowds, limited parking, and enforcement of masks and physical distancing. Anita Edmondson, representing the Poway Chamber of Commerce, via teleconference, expressed support for the initiative and the City's continued efforts to support local businesses during the pandemic. Lisa Mello, owner of Mello Yoga, via teleconference, expressed interest in participating in the program and inquired about the availability of reserving a consistent scheduled space and time for her classes. Jenny Glen, owner of Signature Dance Academy, via teleconference, inquired about the process to participate in the program. KB, via teleconference, expressed concerns for crowds at Old Poway Park and inquired about reservations for private facility rentals. Council discussion ensued in support of the initiative as well as continued support for local businesses. Council spoke regarding social distancing and facial covering requirements and enforcement of County health orders. Additionally, Council inquired about the process specific to park inventory and availability. Council highlighted that the program is voluntary should a business choose to conduct its business outdoors and expressed support for temporary and easily obtained permits until the County allows these types of businesses to return indoors. In response to Council inquiry, Assistant City Manager Wendy Kaserman explained that there will be a rental application process, and insurance requirements, however, there will be no cost associated with the SOS Initiative. Ms. Kaserman further explained that staff will be prioritizing parks with ample parking and restroom facilities as well as explained that certain facilities such as Lake Poway, Blue Sky and Old Poway Park will have limited availability. She added the application process is anticipated to open later this week and that the Community Services Department will be assisting with the application process to help businesses identify the park that best meets their needs as well as park availability. She added that applicants will be responsible for their own set-up and breakdown and will be required to comply with all County Health regulations. In response to public comment, Ms. Kaserman explained that under the current County Health Order casual gatherings of non-household units are not currently allowed and, therefore, reservations for other facility rentals are not being processed at this time. Ms. Kaserman added that the SOS Initiative pertains to businesses currently allowed to operate under the County Health Order and should the Order change, the City will adjust its policies accordingly. 3 of 4 August 4, 2020, Item #2
City of Poway -Minutes -July 15, 2020 In response to Council inquiry regarding enforcement of facial coverings and social distancing, City Manager Chris Hazeltine responded that law enforcement has been provided with direction to educate and enforce County regulations as needed. Assistant City Manager Wendy Kaserman added that failure by applicants to adhere to County regulations could result in the cancellation of their use permit. In response to Council inquiry regarding park availability, Ms. Kaserman explained that the City and Poway Unified School District have two shared-use fields that are frequently used by youth day camps and Poway sports organizations. City Manager Chris Hazeltine responded that the Poway Sportsplex could be a potential option for the SOS Initiative. Council concurred to direct staff to proceed with crafting an application policy for the Sharing Outdoor Space (SOS) Initiative, to allow houses of worship and fitness-oriented organizations to conduct services and classes in public park areas, at no cost and with minimal paperwork. Staff will work to balance all current uses to accommodate this new practice. COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 -((G.C. 53232(d)) None. CITY MANAGER ITEMS: None. CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) None. ADJOURNMENT The meeting adjourned at 12:09 p.m. 4 of4 Carrie Gallagher, CMC Interim City Clerk City of Poway, California August 4, 2020, Item #2
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA RE PO RT City of Poway
August 4, 2020
Honorable Mayor and Mem� .... s of the City Council
Jon M. Canavan, Fire Chief \q_J
Jon M. Canavan, Fire Chief
(858) 668-4461 or jcanavan@poway.org
CITY COUNCIL
Resolution to Continue the Existence of a Local Emergency Within the City of
Poway Due to the Novel Coronavirus (COVID-19) Global Pandemic
The Novel Coronavirus (COVID-19) global pandemic continues to cause unprecedented impacts on all
economic and social segments of the United States. Federal, state, and county directives, mandates
_and orders to prevent, control and manage the spread of COVI D-19 have, and continue to, impact
Poway residents, businesses and visitors. On March 18, 2020, the City Council approved a resolution
proclaiming a local emergency. The adopted resolution requires the City Council to either continue
the emergency action or declare the emergency ended at each regular meeting.
Recommended Action:
It is recommended that the City Council approve a resolution continuing the Proclamation of Local
Emergency authorizing the City Manager to take necessary actions to protect the public and welfare
of the City from the serious and imminent threat of COVI D-19. This action requires a four-fifths (4/5)
vote of the City Council.
Discussion:
The COVID-19 global pandemic continues to impact business, education, healthcare, military, and
social segments of the United States. COVID-19 has resulted in a swift economic slowdown and high
unemployment rates. Federal, state, and county directives, mandates, orders and guidelines have
been issued to prevent, control and manage the spread of COVID-19. While efforts are focused on re
opening the economy and relaxing restrictions, impact on Poway residents, businesses and visitors
continues. In response to the COVID-19 global pandemic, and its impact on Poway, the City Manager,
serving as Director of Emergency Services for the City of Poway, proclaimed a local emergency on
March 13, 2020. On March 18, 2020, the City Council approved Resolution No. 20-013 ratifying the
City Manager's Proclamation of Local Emergency. On April 7, April 21, May 5, May 19, June 2, June 16,
July 7 and July 21, 2020, the City Council approved to continue the emergency action. The adopted
resolution requires the City Council to either continue the emergency action or declare the emergency
ended at each regular meeting.
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August 4, 2020, Item #4DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway August 4, 2020 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ;f6 Stacey Tang, Finance Manager 6f 858-668-4426 or STang@poway.org Updated Investment Policy CITY COUNCIL Pursuant to California Government Code, Sec. 53646, and the City's Investment Policy (Policy), the Director of Finance serving in their capacity as City Treasurer is rendering the Policy to the City Council for its annual review. This Policy is an important tool for ensuring the stewardship of the City's financial resources. Staff is proposing changes to the Policy along with an updated Approved Broker/Dealers list. The Policy requires that any amendments be approved by resolution of the City Council. Recommended Action: It is recommended that the City Council adopt the resolution approving the revised Investment Policy. Discussion: The City of Poway invests its funds according to parameters set forth in the City's adopted Investment Policy. The Policy is consistent with California Government Code Section 53600, et seq. which provides standards regarding investment policies and reports, securities, and repurchase agreements for local agencies. The Policy was last modified on May 15, 2018 and reaffirmed on April 16, 2019. Since July 1, 1996, the City has worked with an investment advisor to assist in the administration of the City's investment portfolio. The current investment advisor is Insight Investment, an investment firm of BNY Mellon Investment Management. The Policy defines the role of the City's investment advisor and the procedures to be followed. The Investment Oversight Committee (Committee) comprised of the Director of Finance, the Finance Manager, and a Senior Accountant, oversees the investment of the City's funds. This Committee works with the investment advisor to ensure that the Policy is being followed. 1 of 24
August 4, 2020, Item #4Based on a review of the Policy, the Committee and the investment advisor, Insight Investment, propose adding the Supranationals asset class to the Authorized Securities and Transactions section of the Policy. A supranational is an institution owned or established by governments of two or more countries typically established by international treaties with goals to pursue specified policy objectives. Generally, the policy objectives of supranationals center around improving living standards through sustainable economic growth. Two well-known supranationals are the European Union and World Bank. The City proposes to add three supranationals, all based in Washington D.C.: 1. The International Bank for Reconstruction and Development (i.e. World Bank); 2. The International Finance Corporation; and 3. Inter-American Development Bank. These three supranationals are allowable investments under California Government Code Section 53601 (q). Expanding the City's allowable investments to include supra nationals provides several benefits. First, it will help further diversify the portfolio which is an objective of the Policy. Second, they can pay a higher yield than U.S. Treasuries. This supports the Policy objective to attain a market rate of return. Third, supra nationals add another 'safe haven' asset class to the portfolio. Safe haven assets are perceived to be safe from losses during market turmoil. Lastly, they increase access to investments similar to U.S. government sponsored enterprises (GSEs). GSEs are instrumentalities of the U.S. and quasi-governmental entities designed to enhance the flow of money to specific sectors in the U.S. economy. Two well-known GSEs are Fannie Mae and Freddie Mac. GSEs tend to offer a unique combination of high credit quality, liquidity, and cash flow. Supranationals like the World Bank are very similar to U.S. GS Es and offer the same combination of benefits, all of which support the goals of the Policy. In addition to the recommendation to add supranationals, the Committee and investment advisor also recommend making changes to the Segregation of Responsibilities and the Approved Broker/Dealers list. The recommended changes to the Segregation of Responsibilities is to align the duties with the current Finance division staffing structure. The recommended changes to the Approved Broker/Dealers list is to help ensure the City has a broad selection of credit worthy broker/dealers that can facilitate investments at competitive prices. The updated Policy is attached to the resolution as Exhibit A. A strike-out version is provided for review (Attachment B). Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The Investment Policy is designed to enhance the economic status of the City while protecting its funds. Public Notification: None. Attachments: 2 of24
August 4, 2020, Item #4Attachments: A. Resolution Amending the Investment Policy for Public Funds B. Investment Policy (Strikeout Version) Reviewed/ Approved By: Assistant City Manager 3 of24 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager
August 4, 2020, Item #4RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AMENDING THE INVESTMENT POLICY FOR PUBLIC FUNDS WHEREAS the City of Poway's Investment Policy (Policy) shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield, and diversification, and its relevance to current law and economic trends; WHEREAS, in accordance with the Policy provisions, the City of Poway has conducted a review of the Policy adopted on May 15, 2018 by Resolution No. 18-020 and reaffirmed on April 16, 2019; WHEREAS, the City of Poway proposes certain amendments to the Policy concerning the allowable investments, the segregation of responsibilities and the broker/dealers list; and WHEREAS, in accordance with the Policy provisions, amendments to the City's Policy shall be approved by resolution of the City Council; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Investment Policy, attached hereto as Exhibit A, is hereby adopted as the Investment Policy of the City of Poway and supersedes all previous versions. SECTION 2: Resolution No. 18-020 is hereby rescinded. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 4of24 ATTACHMENT A
August 4, 2020, Item #4EXHIBIT A CITY OF POWAY INVESTMENT POLICY Dated: August 4, 2020 Resolution No. 20-Page 2 The City of Poway (the City) has adopted this Investment Policy (the Policy) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the City. All City funds will be invested in accordance with this Policy and with applicable sections of the California Government Code. This Policy, dated August 4, 2020, replaces any previous Policy or investment procedures of the City. SCOPE The provisions of this Policy shall apply to all financial assets and investment activities of the City as accounted for in the City's Comprehensive Annual Financial Report. The employees' retirement and deferred compensation funds are not covered by this Policy. Also, bond reserve funds will be invested in accordance with each bond issue's indenture agreement. All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the General Fund, the Water Fund, the Sewer Fund, and other funds as budgeted or required by legislation based upon the proportion of the respective average balances relative to the total pooled balance. Investment income shall be distributed to the individual funds not less than annually. OBJECTIVES The City's funds shall be invested in accordance with all applicable City resolutions, California statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order: 1 . Preservation of capital and protection of investment principal. 2. Maintenance of sufficient liquidity to meet anticipated cash flows. 3. Attainment of a market rate of return. 4. Diversification to avoid incurring unreasonable market risks. 5 of24
August 4, 2020, Item #4DELEGATION OF AUTHORITY Resolution No. 20-Page 3 In accordance with City of Poway Resolution No. 20-xxx, the City Treasurer/Finance Department is authorized to invest the City's funds in accordance with the California Government Code Section 53607. The City's Director of Finance serves as the Treasurer. The Director of Finance may delegate the authority to conduct investment transactions and to manage the operation of the investment portfolio to other specifically authorized staff members. No person may engage in an investment transaction except as expressly provided under the terms of this Policy. The Director of Finance shall develop administrative procedures and internal controls, consistent with this Policy, for the operation of the City's investment program. Such procedures shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the City. The City may engage the support services of outside investment advisors with respect to its investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the City's financial resources. If an investment advisor is selected to help manage the investment program, a City Investment Oversight Committee shall be kept informed of the changing investment environment and any potential restructuring of the portfolio which could result. This Investment Committee shall consist of the Director of Finance, the Finance Manager, and a Senior Accountant. PRUDENCE The standard of prudence to be used for managing the City's investment program is California Government Code Section 53600.3, the prudent investor standard, which states that "when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency." The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally without risk and that the investment activities of the City are a matter of public record. Accordingly, the City recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City. The Director of Finance and authorized investment personnel acting in accordance with established procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion to the City Council and appropriate action is taken to control adverse developments. 6 of24
August 4, 2020, Item #4ETHICS AND CONFLICTS OF INTEREST Resolution No. 20-Page 4 Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City's investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall subordinate their personal investment transactions to those of the City. In addition, City Councilmembers, the Director of Finance, the Finance Manager, and the Senior Accountant shall file a Statement of Economic Interests each year as required by California Government Code Section 87203 and regulations of the Fair Political Practices Commission. AUTHORIZED SECURITIES AND TRANSACTIONS All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609, and 53630-53686. Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted. The City shall not knowingly make any investments in any institution, company, corporation, subsidiary, or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual preference, or physical disability. The City has further restricted the eligible types of securities and transactions as follows: 1. United States Treasury bills, notes, or bonds with a final maturity not exceeding five years from the date of trade settlement. There is no limit on the percentage of the portfolio that may be invested in U.S. Treasury securities. 2. Government Securities Government Securities in the aggregate shall not exceed 75% of the City's total portfolio. • Federal Instrumentality Obligations (government sponsored enterprises) with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio. • Federal Agency Obligations with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio. • Mortgage-Related Securities, including Federal Agency and Federal Instrumentality mortgage-backed securities and collateralized mortgage obligations. Such securities shall not exceed five years from the date of trade settlement and must be rated at least "AAA" by at least one Nationally Recognized Statistical Ratings Organization (NRSRO) and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in the combination of Mortgage-Related Securities and Asset-Backed Securities. 7 of24
August 4, 2020, Item #4Resolution No. 20-Page 5 3. Supranationals are United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO. No more than 30% of the City's total portfolio shall be invested pursuant to this section. 4. Corporate Securities No more than 5% of the City's portfolio shall be invested in the obligations of any one corporate issuer. Rule 144A (private placement) securities are prohibited from purchase. • Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Such securities shall have a final maturity not exceeding five years from the date of trade settlement and shall be rated at least "A", or the equivalent, by an NRSRO. No more than 30% of the City's total portfolio shall be invested in Medium-term Notes. • Asset-Backed Securities including equipment lease-backed certificates, consumer receivable pass-through certificates, or consumer-receivable-backed bonds. Such securities shall not exceed five years from the date of trade settlement and must be rated at least "AAA" by at least one NRSRO and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in Mortgage-Related Securities and Asset-Backed Securities. • Prime Commercial Paper with a maturity not exceeding 270 days from the date of trade settlement and rated at least "A-1", or the equivalent, by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph A. or sub-paragraph B. below: A. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500,000,000 and (3) have debt other than commercial paper, if any, that is rated at least "A" or the equivalent by an NRSRO. B. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated at least "A-1" or the equivalent by an NRSRO. Investment in commercial paper shall not exceed 25% of the City's total portfolio. 5. Municipal Bonds including registered notes or bonds of any of the 50 states, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the 50 states. In addition, bonds, notes, warrants, or other evidences of indebtedness of any local agency in California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. 8 of24
August 4, 2020, Item #4Resolution No. 20-Page 6 Municipal Bonds must be rated at least "A" or the equivalent by an NRSRO with maturities not exceeding five years from the date of trade settlement. No more than 5% of the City's portfolio shall be invested in the obligations of any one issuer, and the aggregate investment in municipal bonds shall not exceed 30% of the City's total portfolio. 6. Negotiable Certificates of Deposits (CDs) of commercial banks rated at least "A-1", or the equivalent, with maturities not exceeding five years from the date of trade settlement. In addition, the City may not invest in the CD of a state or federal credit union where any person with investment decision making authority at the City also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. No more than 5% of the portfolio may be invested in the CDs of any one issuer, and the aggregate investment in CDs shall not exceed 30% of the portfolio. 7. Non-negotiable Certificates of Deposit and savings deposits with a maturity not exceeding five years from the date of trade settlement, in FDIC insured state or nationally chartered banks or savings banks that qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5. Deposits in excess of the insured amount shall be secured pursuant to California Government Code Section 53651 and 53652. The City shall comply with and act to secure compliance with the security (collateralization) system specified in the Government Code Section 53649 and 53652. 8. Eligible Banker's Acceptances with a maturity not exceeding 180 days from the date of trade settlement, drawn on and accepted by a commercial bank whose senior long-term debt is rated at least "A", or the equivalent, by an NRSRO at the time of purchase. Banker's Acceptances shall be rated at least "A-1 ", or the equivalent, at the time of purchase by an NRSRO. No more than 5% of the City's total portfolio shall be invested in banker's acceptances of any one bank and the aggregate investment in banker's acceptances shall not exceed 40% of the City's total portfolio. 9. Money Market Funds registered under the Investment Company Act of 1940 that (1) are "no-load" (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in the applicable California statutes and (4) have a rating of at least "AAA", or the equivalent by at least two NRSROs. No more than 10% of the portfolio may be invested in any one fund and the aggregate investment in money market funds shall not exceed 20% of the City's total portfolio. 10. Shares of Beneficial Interest issued by a joint powers authority (e.g., CalTRUST) organized pursuant to Section 6509. 7 that invest in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment advisor that: 9 of24 (1) is registered or exempt from registration with the Securities and Exchange Commission. (2) has at least five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601 . (3) has assets under management in excess of $500,000,000.
August 4, 2020, Item #4Resolution No. 20-Page 7 11. State of California's Local Agency Investment Fund (LAIF), pursuant to California Government Code Section 16429.1. 12. The San Diego County Investment Pool. The City may invest in this investment pool, established by the San Diego County Treasurer for the benefit of local public agencies. The foregoing list of authorized securities and transactions shall be strictly interpreted. Any deviation from this list must be preapproved by resolution of the City Council. INVESTMENT MANAGEMENT If the City has employed an external investment advisor to help manage its portfolio, the investment advisor shall be bound by the aforementioned list of authorized securities, the state and local laws and regulations that govern the investment activity of the City, and the following additional parameters. • While it is understood that occasionally it may be in the best interest of the City to take losses in its security portfolio, losses taken to increase the yield in the portfolio may only be taken if the increased yield results in the loss being recouped in one year or less. Credit-related losses on the other hand are taken to prevent potentially larger losses in the future. When possible, the investment advisor will get prior approval of the City before taking credit-related losses. In any case, the City will be notified as soon as possible about any losses taken in the portfolio. • Securities that are downgraded by one or more rating agency to below the ratings required by this Policy do not have to be sold. However, the investment advisor will immediately notify the City of the downgrade. The advisor will prepare a credit report on the downgraded security and forward it to the City. While the City entrusts its investment portfolio to the advisor, the City retains the right to ultimately make the decisions on how to invest its monies. INVESTMENT DIVERSIFICATION The City shall diversify its investments to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions or maturities. Nevertheless, the asset allocation in the investment portfolio should be flexible depending upon the outlook for the economy, the securities markets and the City's anticipated cash flow needs. PORTFOLIO MATURITIES AND LIQUIDITY To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment at least three months prior to the date of investment. 10 of 24
August 4, 2020, Item #4SELECTION OF BROKER/DEALERS Resolution No. 20-Page 8 The Finance Manager shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the City to purchase securities only from those brokers and the firms they represent. Each approved broker/dealer must possess an authorizing certificate from the California Commissioner of Corporations as required by Section 25210 of the California Corporations Code. To be eligible, a firm must meet at least one of the following criteria: 1. Be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or 2. Report voluntarily to the Federal Reserve Bank of New York, or 3. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule). The City may engage the services of investment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved broker/dealers. Such broker/dealers will comply with the selection criteria above and the list of approved firms shall be provided to the City on an annual basis or upon request. In the event that an external investment advisor is not used in the process of recommending a particular transaction in the City's portfolio, authorized broker/dealers shall attest in writing that they have received a copy of this Policy and each authorized broker/dealer shall be required to submit and annually update a City approved Broker/Dealer Information Request form that includes the firm's most recent financial statements. The City may purchase commercial paper from direct issuers even though they are not on the approved broker/dealers list as long as they meet the criteria outlined in Item 4 of the Authorized Securities and Transactions section of this Policy. COMPETITIVE TRANSACTIONS All investment transactions shall be conducted competitively with authorized broker/dealers. At least three broker/dealers shall be contacted for each transaction and their bid or offering prices shall be recorded. If the City is offered a security for which there is no other readily available competitive offering, then the Finance Manager will document quotations for comparable or alternative securities. SELECTION OF BANKS The Finance Manager shall maintain a list of FDIC insured banks approved to provide depository and other banking services for the City. To be eligible, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5 and shall secure deposits in excess of FDIC insurance coverage in accordance with California Government Code Section 53652. 11 of 24
August 4, 2020, Item #4SAFEKEEPING AND CUSTODY Resolution No. 20-Page 9 The Finance Manager shall select one or more banks to provide safekeeping and custodial services for the City. A Safekeeping Agreement approved by the City shall be executed with each custodian bank prior to utilizing that bank's safekeeping services. Custodian banks will be selected on the basis of their ability to provide services for the City's account and the competitive pricing of their safekeeping related services. The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. All securities shall be perfected in the name of the City. Sufficient evidence to title shall be consistent with modern investment, banking, and commercial practices. All deliverable securities purchased by the City will be delivered by book entry and will be held in third-party safekeeping by a City approved custodian bank or its Depository Trust Company (OTC) participant account. PORTFOLIO PERFORMANCE The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the City's investments shall be compared to the average yield on the U.S. Treasury security that most closely corresponds to the portfolio's weighted average effective maturity. When comparing the performance of the City's portfolio, its rate of return will be computed net of all fees and expenses. REPORTING Quarterly, the Director of Finance shall submit to the City Council a report of the investment earnings and performance results of the City's investment portfolio. The report shall include the following information: 1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City; 2. A description of the funds, investments, and programs; 3. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation; 4. A statement of compliance with the Investment Policy or an explanation for non-compliance; and 5. A statement of the City's ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case. 12 of 24
August 4, 2020, Item #4POLICY REVIEW Resolution No. 20-Page 10 This Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield and diversification, and its relevance to current law and economic trends. Amendments to this Policy shall be approved by resolution of the City Council. SEGREGATION OF RESPONSIBILITIES FUNCTION 1.0 Investment Policy: 1.1 Preparation and annual review of Investment Policy 1.2 Approval of Investment Policy 2.0 Investment Transactions: 2.1 Calculation of cash position 2.2 If applicable, notify investment advisor of current available cash to be invested 2.3 Investment recommendation: Determination of amount to be invested, selection of type of investment, and term of investment 2.4 Review of investment recommendation and execution of transaction 3.0 Recording of Transactions: 3.1 In investment subsidiary ledgers 3.2 In accounting records 3.3 Match investment confirmation to subsidiary ledgers 4.0 Safeguarding of Assets and Records: 4.1 Reconciliation of subsidiary records to the accounting records 4.2 Reconciliation of subsidiary records to bank statements and safekeeping records 4.3 Review of financial institutions and investment brokers' reputation and financial condition 4.4 Review of collaterals 5.0 Investment portfolio: 5.1 Preparation of investment report 5.2 Review of portfolio for compliance with stated Investment Policy 5.3 Approval of investment report 13 of 24 RESPONSIBILITY Director of Finance/ Oversight Committee City Council Sr. Accountant/Finance Mgr. Written approval by 2 members of Oversight Committee Investment Advisor/ Director of Finance/Finance Mgr. Written approval by member of Oversight Committee Sr. Accountant/Accountant Sr. Accountant/Accountant Senior Accountant Senior Accountant Senior Accountant Investment Advisor/ Oversight Committee Investment Adv./Oversight Comm. Senior Accountant Oversight Committee City Council
August 4, 2020, Item #4Resolution No. 20-Page 11 APPROVED BROKER/DEALERS The following Broker/Dealers are approved for execution of trades. Amherst Pierpont ANZ Securities Barclays Capital BB&T Securities Blaylock Van BMO Capital Markets BNP Paribas Securities BofA Securities Cantor Fitzgerald & Co. Citigroup Global Markets Credit Agricole Securities (USA) Credit Suisse Securities (USA) Daiwa Capital Markets America Deutsche Bank Securities FHN Financial Securities Goldman Sachs & Co. HSBC Securities (USA) lncapital I NTL FCStone Financial Jefferies JP Morgan Securities Keybanc Capital Markets Mizuho Securities (USA) Broker/Dealers Morgan Stanley & Co. MUFG Securities Americas NAB Securities NatWest Markets Securities Nomura Securities International Oppenheimer & Co. Piper Jaffray & Co. Raymond James & Associates RBC Capital Markets Robert W. Baird & Co. Samuel A. Ramirez & Co. Scotia Capital (USA) SMBC Nikko Securities America SG America Securities Stifel Nicolaus & Co. SunTrust Robinson Humphrey TD Securities (USA) UBS Securities US Bancorp Investments Wells Fargo Securities Vining Sparks This list of approved broker/dealers is subject to change at any time based upon periodic recommendations of the investment advisor throughout the year. 14 of 24
August 4, 2020, Item #4CITY OF POWAY STATEMENT OF INVESTMENT POLICY Dated: August 4, 2020 The City of Poway (the City) has adopted this Statement of Investment Policy (the Policy) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the City. All City funds will be invested in accordance with this Policy and with applicable sections of the California Government Code. This Policy, dated August 4, 2020, replaces any previous Policy or investment procedures of the City. SCOPE The provisions of this Policy shall apply to all financial assets and investment activities of the City as accounted for in the City's Comprehensive Annual Financial Report. The employees' retirement and deferred compensation funds are not covered by this Policy. Also, bond reserve funds will be invested in accordance with each bond issue's indenture agreement. All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the General Fund, the Water Fund, the Sewer Fund, and other funds as budgeted or required by legislation based upon the proportion of the respective average balances relative to the total pooled balance. Investment income shall be distributed to the individual funds not less than annually. OBJECTIVES The City's funds shall be invested in accordance with all applicable City resolutions, California statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order: 1. Preservation of capital and protection of investment principal. 2. Maintenance of sufficient liquidity to meet anticipated cash flows. 3. Attainment of a market rate of return. 4. Diversification to avoid incurring unreasonable market risks. 15 of 24 ATTACHMENT B
August 4, 2020, Item #4DELEGATION OF AUTHORITY In accordance with City of Poway Resolution No. 20-xxx, the City Treasurer/Finance Department is authorized to invest the City's funds in accordance with the California Government Code Section 53607. The City's Director of Finance serves as the Treasurer. The Director of Finance may delegate the authority to conduct investment transactions and to manage the operation of the investment portfolio to other specifically authorized staff members. No person may engage in an investment transaction except as expressly provided under the terms of this Policy. The Director of Finance shall develop administrative procedures and internal controls, consistent with this Policy, for the operation of the City's investment program. Such procedures shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the City. The City may engage the support services of outside investment advisors with respect to its investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the City's financial resources. If an investment advisor is selected to help manage the investment program, a City Investment Oversight Committee shall be kept informed of the changing investment environment and any potential restructuring of the portfolio which could result. This Investment Committee shall consist of the Director of Finance, the Finance Manager, and a Senior Accountant. PRUDENCE The standard of prudence to be used for managing the City's investment program is California Government Code Section 53600.3, the prudent investor standard, which states that "when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency." The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally without risk and that the investment activities of the City are a matter of public record. Accordingly, the City recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City. The Director of Finance and authorized investment personnel acting in accordance with established procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion to the City Council and appropriate action is taken to control adverse developments. 16 of 24
August 4, 2020, Item #4ETHICS AND CONFLICTS OF INTEREST Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City's investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall subordinate their personal investment transactions to those of the City. In addition, City Councilmembers, the Director of Finance, the Finance Manager, and the Senior Accountant shall file a Statement of Economic Interests each year as required by California Government Code Section 87203 and regulations of the Fair Political Practices Commission. AUTHORIZED SECURITIES AND TRANSACTIONS All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609, and 53630-53686. Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted. The City shall not knowingly make any investments in any institution, company, corporation, subsidiary, or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual preference, or physical disability. The City has further restricted the eligible types of securities and transactions as follows: 1. United States Treasury bills, notes, or bonds with a final maturity not exceeding five years from the date of trade settlement. There is no limit on the percentage of the portfolio that may be invested in U.S. Treasury securities. 2. Government Securities Government Securities in the aggregate shall not exceed 75% of the City's total portfolio. • Federal Instrumentality Obligations (government sponsored enterprises) with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio. • Federal Agency Obligations with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio. • Mortgage-Related Securities, including Federal Agency and Federal Instrumentality mortgage-backed securities and collateralized mortgage obligations. Such securities shall not exceed five years from the date of trade settlement and must be rated at least "AAA" by at least one Nationally Recognized Statistical Ratings Organization (NRSRO) and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in the combination of Mortgage-Related Securities and Asset-Backed Securities. 17 of 24
August 4, 2020, Item #43. Supranationals are United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO. No more than 30% of the City's total portfolio shall be invested pursuant to this section. M. Corporate Securities No more than 5% of the City's portfolio shall be invested in the obligations of any one corporate issuer. Rule 144A (private placement) securities are prohibited from purchase. • Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Such securities shall have a final maturity not exceeding five years from the date of trade settlement and shall be rated at least "A", or the equivalent, by an NRSRO. No more than 30% of the City's total portfolio shall be invested in Medium-term Notes. • Asset-Backed Securities including equipment lease-backed certificates, consumer receivable pass-through certificates, or consumer-receivable-backed bonds. Such securities shall not exceed five years from the date of trade settlement and must be rated at least "AAA" by at least one NRSRO and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in Mortgage-Related Securities and Asset-Backed Securities. • Prime Commercial Paper with a maturity not exceeding 270 days from the date of trade settlement and rated at least "A-1", or the equivalent, by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph A. or sub-paragraph B. below: A. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500,000,000 and (3) have debt other than commercial paper, if any, that is rated at least "A" or the equivalent by an NRSRO. B. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated at least "A-1" or the equivalent by an NRSRO. Investment in commercial paper shall not exceed 25% of the City's total portfolio. 4.-5. Municipal Bonds including registered notes or bonds of any of the 50 states, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the 50 states. In addition, bonds, notes, warrants, or other evidences of indebtedness of any local agency in California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. 18 of 24
August 4, 2020, Item #4Municipal Bonds must be rated at least "A" or the equivalent by an NRSRO with maturities not exceeding five years from the date of trade settlement. No more than 5% of the City's portfolio shall be invested in the obligations of any one issuer, and the aggregate investment in municipal bonds shall not exceed 30% of the City's total portfolio. 6. Negotiable Certificates of Deposits (CDs) of commercial banks rated at least "A-1", or the equivalent, with maturities not exceeding five years from the date of trade settlement. In addition, the City may not invest in the CD of a state or federal credit union where any person with investment decision making authority at the City also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. No more than 5% of the portfolio may be invested in the CDs of any one issuer, and the aggregate investment in CDs shall not exceed 30% of the portfolio. 7. Non-negotiable Certificates of Deposit and savings deposits with a maturity not exceeding five years from the date of trade settlement, in FDIC insured state or nationally chartered banks or savings banks that qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5. Deposits in excess of the insured amount shall be secured pursuant to California Government Code Section 53651 and 53652. The City shall comply with and act to secure compliance with the security ( collateralization) system specified in the Government Code Section 53649 and 53652. 8. Eligible Banker's Acceptances with a maturity not exceeding 180 days from the date of trade settlement, drawn on and accepted by a commercial bank whose senior long-term debt is rated at least "A", or the equivalent, by an NRSRO at the time of purchase. Banker's Acceptances shall be rated at least "A-1 ", or the equivalent, at the time of purchase by an NRSRO. No more than 5% of the City's total portfolio shall be invested in banker's acceptances of any one bank and the aggregate investment in banker's acceptances shall not exceed 40% of the City's total portfolio. 9. Money Market Funds registered under the Investment Company Act of 1940 that (1) are "no-load" (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in the applicable California statutes and (4) have a rating of at least "AAA", or the equivalent by at least two NRSROs. No more than 10% of the portfolio may be invested in any one fund and the aggregate investment in money market funds shall not exceed 20% of the City's total portfolio. 10. Shares of Beneficial Interest issued by a joint powers authority (e.g., CalTRUST) organized pursuant to Section 6509. 7 that invest in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment advisor that: (1) is registered or exempt from registration with the Securities and Exchange Commission. (2) has at least five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601 . (3) has assets under management in excess of $500,000,000. 11. State of California's Local Agency Investment Fund (LAIF), pursuant to California Government Code Section 16429.1. 19 of 24
August 4, 2020, Item #44--1-:-12. The San Diego County Investment Pool. The City may invest in this investment pool, established by the San Diego County Treasurer for the benefit of local public agencies. The foregoing list of authorized securities and transactions shall be strictly interpreted. Any deviation from this list must be preapproved by resolution of the City Council. INVESTMENT MANAGEMENT If the City has employed an external investment advisor to help manage its portfolio, the investment advisor shall be bound by the aforementioned list of authorized securities, the state and local laws and regulations that govern the investment activity of the City, and the following additional parameters. • While it is understood that occasionally it may be in the best interest of the City to take losses in its security portfolio, losses taken to increase the yield in the portfolio may only be taken if the increased yield results in the loss being recouped in one year or less. Credit-related losses on the other hand are taken to prevent potentially larger losses in the future. When possible, the investment advisor will get prior approval of the City before taking credit-related losses. In any case, the City will be notified as soon as possible about any losses taken in the portfolio. • Securities that are downgraded by one or more rating agency to below the ratings required by this Policy do not have to be sold. However, the investment advisor will immediately notify the City of the downgrade. The advisor will prepare a credit report on the downgraded security and forward it to the City. While the City entrusts its investment portfolio to the advisor, the City retains the right to ultimately make the decisions on how to invest its monies. INVESTMENT DIVERSIFICATION The City shall diversify its investments to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions or maturities. Nevertheless, the asset allocation in the investment portfolio should be flexible depending upon the outlook for the economy, the securities markets and the City's anticipated cash flow needs. PORTFOLIO MATURITIES AND LIQUIDITY To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment at least three months prior to the date of investment. 20 of 24
August 4, 2020, Item #4SELECTION OF BROKER/DEALERS The Finance Manager shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the City to purchase securities only from those brokers and the firms they represent. Each approved broker/dealer must possess an authorizing certificate from the California Commissioner of Corporations as required by Section 25210 of the California Corporations Code. To be eligible, a firm must meet at least one of the following criteria: 1. Be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or 2. Report voluntarily to the Federal Reserve Bank of New York, or 3. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule). The City may engage the services of investment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved broker/dealers. Such broker/dealers will comply with the selection criteria above and the list of approved firms shall be provided to the City on an annual basis or upon request. In the event that an external investment advisor is not used in the process of recommending a particular transaction in the City's portfolio, authorized broker/dealers shall attest in writing that they have received a copy of this Policy and each authorized broker/dealer shall be required to submit and annually update a City approved Broker/Dealer Information Request form that includes the firm's most recent financial statements. The City may purchase commercial paper from direct issuers even though they are not on the approved broker/dealers list as long as they meet the criteria outlined in Item ~ of the Authorized Securities and Transactions section of this Policy. COMPETITIVE TRANSACTIONS All investment transactions shall be conducted competitively with authorized broker/dealers. At least three broker/dealers shall be contacted for each transaction and their bid or offering prices shall be recorded. If the City is offered a security for which there is no other readily available competitive offering, then the Finance Manager will document quotations for comparable or alternative securities. SELECTION OF BANKS The Finance Manager shall maintain a list of FDIC insured banks approved to provide depository and other banking services for the City. To be eligible, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5 and shall secure deposits in excess of FDIC insurance coverage in accordance with California Government Code Section 53652. 21 of 24
August 4, 2020, Item #4SAFEKEEPING AND CUSTODY The Finance Manager shall select one or more banks to provide safekeeping and custodial services for the City. A Safekeeping Agreement approved by the City shall be executed with each custodian bank prior to utilizing that bank's safekeeping services. Custodian banks will be selected on the basis of their ability to provide services for the City's account and the competitive pricing of their safekeeping related services. The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. All securities shall be perfected in the name of the City. Sufficient evidence to title shall be consistent with modern investment, banking, and commercial practices. All deliverable securities purchased by the City will be delivered by book entry and will be held in third-party safekeeping by a City approved custodian bank or its Depository Trust Company (OTC) participant account. PORTFOLIO PERFORMANCE The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the City's investments shall be compared to the average yield on the U.S. Treasury security that most closely corresponds to the portfolio's weighted average effective maturity. When comparing the performance of the City's portfolio, its rate of return will be computed net of all fees and expenses. REPORTING Quarterly, the Director of Finance shall submit to the City Council a report of the investment earnings and performance results of the City's investment portfolio. The report shall include the following information: 1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City; 2. A description of the funds, investments, and programs; 3. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation; 4. A statement of compliance with the Investment Policy or an explanation for non-compliance; and 5. A statement of the City's ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case. 22 of 24
August 4, 2020, Item #4POLICY REVIEW This Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield and diversification, and its relevance to current law and economic trends. Amendments to this Policy shall be approved by resolution of the City Council. SEGREGATION OF RESPONSIBILITIES FUNCTION 1.0 Investment Policy: 1.1 Preparation and annual review of Investment Policy 1.2 Approval of Investment Policy 2.0 Investment Transactions: 2.1 Calculation of cash position 2.2 If applicable, notify investment advisor of current available cash to be invested 2.3 Investment recommendation: Determination of amount to be invested, selection of type of investment, and term of investment 2.4 Review of investment recommendation and execution of transaction 3.0 Recording of Transactions: 3.1 In investment subsidiary ledgers 3.2 In accounting records 3.3 Match investment confirmation to subsidiary ledgers 4.0 Safeguarding of Assets and Records: 4.1 Reconciliation of subsidiary records to the accounting records 4.2 Reconciliation of subsidiary records to bank statements and safekeeping records 4.3 Review of financial institutions and investment brokers' reputation and financial condition 4.4 Review of collaterals 5.0 Investment portfolio: 5.1 Preparation of investment report 5.2 Review of portfolio for compliance with stated Investment Policy 5.3 Approval of investment report 23 of 24 RESPONSIBILITY Director of Finance/ Oversight Committee City Council Sr. AccountanUFinance Mgr. Written approval by 2 members of Oversight Committee Investment Advisor/ Director of Finance/Finance Mgr. Written approval by member of Oversight Committee Sr. AccountanUAccountant Technician Sr. AccountanUAccountant Technician Senior Accountant Senior Accountant Senior Accountant Investment Advisor/ Oversight Committee Investment Adv./Oversight Comm. Senior Accountant Oversight Committee City Council
August 4, 2020, Item #4APPROVEDBROKE~DEALERS The following Broker/Dealers are approved for execution of trades. Amherst Pierpont ANZ Securities Bank of Montreal Barclays Capital Baylock Beal Van BB&T Securities Blaylock Van BMO Capital Markets BNP Paribas Securities BofA Securities Cantor Fitzgerald & Co. Citigroup Global Markets Commonwealth Bank of Australia Credit Agricole Securities (USA) Credit Suisse Securities (USA) Daiwa Capital Markets America Deutsche Bank Securities FHN Financial Securities Goldman Sachs & Co. HSBCJeffereis HSBC Securities (USA) lncapital INTL FCStone Financial Jefferies JP Morgan Securities Keybanc Capital Markets Merrill Lynch, Pierce, Fenner & Smith Broker/Dealers Mitsubishi Financial Group Mizuho Securities (USA) Morgan Stanley & Co. MUFG Securities Americas NAB Securities National Australia Bank NatWest Markets Securities Nomura Securities International Oppenheimer & Co. Piper Jaffray & Co. Raymond James & Associates RBC Capital Markets RBS Securities Robert W. Baird & Co. Samuel A. Ramirez & Co. Scotia Capital (USA) SMBC Nikko Securities America SG America Securities Stifel Nicolaus & Co. SunTrust Robinson Humphrey TD Securities (USA) UBS Securities US Bancorp Investments Wells Fargo Securities Vining Sparks This list of approved broker/dealers is subject to change at any time based upon periodic recommendations of the investment advisor throughout the year. 24 of 24
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT City of Poway
CITY COUNCIL
August 4, 2020
Honorable Mayor and Members of the City Council
Eric Heidemann, Director of Public Works { �
�
Will Wiley, Assistant Director of Public Works for Maintenance Operation
(858) 668-4705 or wwiley@poway.org
Authorization to Purchase Four (4) Mid-Size Pickups and Three (3) Full-Size
Pickups by Informal Bid
The City's approved Fiscal Year 2020-21 Capital Replacement Budget includes funding to purchase
four (4) mid-size and three (3) full-size pickups. Utilizing an informal competitive bid process, the City
requested quotes for four (4) mid-size pickups and three (3) full-size pickups from two (2) state-wide
cooperative contracts through the State of California Department of General Services and pricing from
local dealers. For optimal pricing, it is recommended the purchase of the above-mentioned vehicles
be made from Courtesy Chevrolet San Diego by waiving the City's formal bidding procedures and
awarding the purchase of the vehicles through an informal bid process to Courtesy Chevrolet San
Diego. The total estimated purchase price for these vehicles, upfits, sales tax, tire tax, and
documentation fees is $221,831.53.
Recommended Action:
It is recommended that City Council authorize the purchase of four (4) mid-size and three (3) full-size
pickups from Courtesy Chevrolet San Diego through an informal bid process for a total estimated cost
of $221,831.53 and authorize the City Manager to execute any necessary documents.
Discussion:
The City maintains over 125 street legal vehicles for the purpose of inspecting, maintaining and
operating City facilities, and infrastructure. Annually, several of these vehicles must be replaced as
they have met their useful life or have excessive mileage. The current budget contains funding to
replace seven (7) pickups. Five of the seven vehicles are being replaced as part of the City's capital
replacement program and two vehicles are being added to the City's fleet to support two new
positions in the Water Utilities Divisions.
The City's purchasing regulations require that product (e.g., trucks) purchases over $50,000 require a
formal bidding process. Recently, the City has not had success with vehicle purchases, when the City
1 of 3 August 4, 2020, Item #5
August 4, 2020, Item #5has undertaken a formal bidding process, because vendors are not providing proposals due to limited staff in their sales department or they cannot meet the City's vehicle specifications. In an effort to maximize cost savings, the City's Fleet Division evaluates various procurement methods that offer competitive pricing, including utilizing regional and state cooperative purchase contracts. Cooperative purchasing enables City departments to evaluate a broader range of contracting opportunities and to share resources with other jurisdictions. Cooperative purchasing programs by public entities (e.g. state, city, county, public university or school district) provide a streamlined and effective procurement option by offering lower costs through volume buying. The City has used both regional and state cooperative purchase contracts to complement its own contracting initiatives and is authorized under Section 3.28.11 O of the Poway Municipal Code, as long as the administering agency has made their purchase in a competitive manner. The City recognizes that there is a regional benefit whenever it can do business with local dealers. As a matter of due diligence, staff approached local dealers to confirm membership status with cooperative contracts or bid assistance programs and solicited informal bids from them. Neither local dealer is a part of a cooperative state or bid assistance program. Perry Ford of Poway, was non-responsive to our bid request and Poway RAM, indicated they had insufficient staff to provide a bid. Consequently, no quotes were provided. In addition to reviewing pricing from cooperative purchase contracts; the City also obtained an informal quote from Courtesy Chevrolet San Diego, which participates in General Motor's (GM's) Bid Assistance Program. Through GM's Bid Assistance Program, Courtesy Chevrolet San Diego is able to provide pricing for vehicle purchases through a streamlined procurement option for municipalities. Of the seven (7) vehicles identified for purchase, Courtesy Chevrolet San Diego is able to provide an overall lower cost compared to the State's cooperative purchasing contracts. As such, staff is requesting authorization of a purchase order to Courtesy Chevrolet San Diego for the seven (7) identified vehicles for an estimated total cost of $221,831.53. The quotes for four (4) mid-size and three (3) full-size pickups are as follows: Company Cost Rank Courtesy Chevrolet $221,831 .53 1 San Diego (GM's Bid Assistance Program) Elk Grove/Winner Chevrolet $235,080.79 2 State Contract: 1-18-23-20D Downtown Ford Sales $240,853.89 3 State Contract: 1-18-23-20A Poway RAM No Quotes Submitted N/A Perry Ford of Poway No Quotes Submitted N/A Bob Stall Chevrolet No Quotes Submitted N/A After careful evaluation of various purchasing options and pricing, staff determined that it is in the best interest of the City not to proceed with its own formal bid process or utilize the bid process of a cooperative contract, and as such, recommends the formal bidding procedures are waived for the following reasons: 1. The informal bid from Courtesy Chevrolet San Diego for the seven vehicles is less than the state cooperative purchasing contracts which itself was publicly bid; 2. The requirement of Poway Municipal Code Chapter 3.28 that the vehicle purchase be formally bid will tie up staff resources from other projects and will not likely result in a lower price for these vehicles provided the city's historical experience; and 2 of 3
August 4, 2020, Item #53. The purchasing of the seven (7) vehicles from Courtesy Chevrolet San Diego will save Poway residents tax dollars on this purchase. It is anticipated that it will take approximately three to five months for the City to take delivery of the vehicles. Upon receipt of the vehicles, staff will complete all necessary steps to get the vehicles into use, including proper registration and insurance as well as any necessary insignia, lights or additional accessories. Environmental Review: This action is not subject to California Environmental Quality Act review. Fiscal Impact: Sufficient funding is available in the Fiscal Year 2020-21 Capital Replacement Equipment Fund (115010-61040) for the purchase of four (4) mid-size and one (1) full-size pickups and in the Water Transmission/Distribution budget (402560-45600 and 402560-61040) for the purchase of two (2) full-size pickups. The total cost of these seven (7) pickups is $221,831.53. Public Notification: None. Attachments: None. Reviewed/ Approved By: W~nd aserman Assistant City Manager 3 of3 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
August 4, 2020, Item #6DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PO RT City of Poway August 4, 2020 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Service~ Oda Audish, Associate Planner ClfJA.-858-668-4661 or oaudish@poway.org CITY COUNCIL Conditional Use Permit 20-002 and Development Review 20-004: a request to extend the expiration date of the previously approved Conditional Use Permit and Development Review to redevelop and expand the existing United Oil gas station and add a carwash and mini-mart located at 12462 Poway Road. On March 6, 2018, the City Council approved Conditional Use Permit (CUP)18-004 and Development Review (DR) 16-014 to redevelop and expand an existing gas station located at 12462 Poway Road in the Poway Road Specific Plan (PRSP) Commercial General (CG) district. A revision to the CUP and DR is requested to allow the developer two additional years to obtain grading and building permits for the project. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: The project Applicant is Al Beaudette on behalf of United Pacific, who would operate the gas station. The owner of the 1.6-acre property is ARCP UO Portfolio 11, LP. The United Oil gas station occupies the southerly half of the project site while the northerly half is undeveloped. The existing development consists of six gas pumps and an approximate 1,125 square-foot building which houses the gas station attendant and an auto repair facility with two service bays. The site is bordered by Ramada Inn to the west, a vacant residentially zoned property to the north (currently under construction), an existing single-family residential development to the northeast, and Eldorado Collision Center to the east. Various commercial uses are located across Poway Road to the south. A location map is included as Attachment B. On March 6, 2018, City Council approved a request to redevelop the site and expand the gas station approximately 45 feet north into the undeveloped portion of the site as shown in Attachment C. All 1 of 25
August 4, 2020, Item #6existing structures would be demolished, and the existing auto repair use would not be reestablished. The new development would consist of a new 2,400-square-foot gas station mini-mart building and an attached 1,000-square-foot car wash. The car wash would be located behind the minimart and therefore not visible from the street. Two gas dispenser pumps would be added for a total of eight pumps that would all be located under a new 4,000-square-foot fueling station canopy. The maximum height is approximately 27 feet for both the buildings and the canopy. A new eight-foot high freestanding wall would be built along the new boundary between the expanded gas station and the remaining undeveloped portion of the lot. The proposed floor plan and building elevations are included as Attachments D and E respectively. Pursuant to the Poway Municipal Code (PMC), the approval of CUP 18-004 and DR 16-014 was valid for two years and was set to expire on March 6, 2020. Prior to the expiration date, an application was submitted for a modification to the CUP and DR that proposes to change the expiration date so that the CUP and DR will be valid for two additional years until March 6, 2022. No other changes to the CUP and DR are proposed and all conditions of CUP 18-004 and DR 16-014 will continue to be applicable except that additional conditions of approvals have been added, to reflect current state stormwater treatment requirements to capture trash at on-site storm drain inlets. Resolution Number P-18-04, approving CUP 18-004 and DR 16-014, is included as Attachment F. Environmental Review: On March 6, 2018, City Council found the project to be consistent with the PRSP as analyzed in the Environmental Impact Report prepared in conjunction with the PRSP pursuant to the California Environmental Quality Act (CEQA) and therefore, no further environmental analysis is required of the project. The biological impacts related to the project are adequately addressed by and consistent with the Poway Subarea Habitat Conservation Plan (PSHCP), the companion Implementing Agreement dated June, 1996, and associated Mitigated Negative Declaration, and further, are consistent with the analysis in the PRSP EIR Fiscal Impact: None. Public Notification: A Notice for Public Hearing was published in the Poway News Chieftain on July 23, 2020. A public notice was mailed to property owners and occupants located within 500 feet of the project site. Attachments: A. Resolution approving CUP 20-002 and DR 20-004 B. Zoning and Location Map C. Proposed Site Plan -Illustrative Site Plan D. Proposed Floor Plan E. Illustrative Building Elevations F. Resolution P-18-04, approving CUP 18-004 and DR 16-014 2 of 25
August 4, 2020, Item #6Reviewed/ Approved By: Wendyaserman Assistant City Manager 3 of 25 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
August 4, 2020, Item #6RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT (CUP) 20-002 AND DEVELOPMENT REVIEW (DR) 20-004; A MODIFICATION OF CUP 18-004 AND DR 16-014 TO EXTEND THE EXPIRATION DATE FOR THE UNITED OIL GAS STATION EXPANSION AND REDEVELOPMENT PROJECT AT 12462 POWAY ROAD; ASSESSOR'S PARCEL NUMBER 317-540-75 -00 WHEREAS, on March 6, 2018, the City Council approved Conditional Use Permit (CUP) 18-004 and Development Review (DR) 16-014 for United Oil; a proposal to redevelop and expand an existing gas station located at 12462 Poway Road in the Commercial General (CG) district of the Poway Road Specific Plan (PRSP). The project involves the demolition of all existing structures, the construction of a 2,400-square-foot gas station mini-mart building, a 1,000-square-foot car wash, a 4,000-square-foot fueling station canopy, and the addition of two gas dispenser pumps; WHEREAS, on March 4, 2020, Al Beaudette on behalf of United Pacific requested approval of CUP 20-002 and DR 20-004 for a modification of the previously approved CUP and DR described above that would extend the expiration date by two years to allow the applicant additional time to complete the grading and building permit processes for the project; WHEREAS, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this application; and WHEREAS, the City Council has read and considered the agenda report for the proposed project, including the attachments, and has considered all other evidence presented at the public hearing; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The above recitals are true and correct. SECTION 2: In accordance with the California Environmental Quality Act (CEQA), the City Council on March 6, 2018 found the project to be consistent with the PRSP that was analyzed in the Environmental Impact Report (EIR) prepared in conjunction with the PRSP and therefore, no further environmental analysis is required of the project. The biological impacts related to the project are adequately addressed by and consistent with the Poway Subarea Habitat Conservation Plan, companion Implementing Agreement dated June, 1996, and associated Mitigated Negative Declaration, and further, are consistent with the analysis in the PRSP EIR. SECTION 3: The City Council hereby approves CUP 20-002 and DR 20-004 as shown on the approved plans stamped "Exhibit A" and dated August 4, 2020 on file in the Development Services Department, except as noted herein and subject to the following conditions: A. City Council Resolution P-18-04 remains in full force and effect except that the expiration date has hereby been extended by two years and Condition G-5 in Section 6 on page 5 of Resolution No. P-18-04 is amended as follows: 4 of 25 ATTACHMENT A
August 4, 2020, Item #65. Water Quality Control -Design and Construction Resolution No. 20-Page 2 The project shall comply with the City and Regional Water Quality Control Board stormwater requirements. The project is considered a Priority Development Project and will be subject to all City and State requirements. A Final Storm Water Quality Management Plan (SWQMP) prepared by a registered Civil Engineer is to be submitted and approved. a. Provide two copies of an Operation & Maintenance (O&M) plan in accordance with Chapter 16.104 of the Poway Municipal Code (PMC), and a signed PDF version. b. The applicant will be required to install trash treatment control devices inside all existing and proposed private storm drain grated inlet structures onsite. c. Property owner shall execute an approved Storm Water Management Facilities Maintenance Agreement accepting responsibility for all structural BMP maintenance, repair and replacement as outlined in the Operations and Maintenance plan. The operation and maintenance requirements shall be binding on the land throughout the life of the project as outlined in Chapter 16.104 of the PMC. SECTION 4: The approval of CUP 20-002 and DR 20-004 will expire on March 6, 2022 at 5:00 p.m., except if prior to that time a Building Permit has been issued and construction has commenced on the property, or unless prior to the expiration a request for a time extension is submitted to the Development Services Department and a time extension is subsequently granted by the City Council. SECTION 5: The parties are hereby informed that the time within which judicial review of this decision must be sought is governed by Section 1094.6 of the California Code of Civil Procedure. 5 of 25
August 4, 2020, Item #6Resolution No. 20-. Page 3 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 6 of 25
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August 4, 2020, Item #6RESOLUTION NO. P-18-04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT (CUP) 18-004, AND DEVELOPMENT REVIEW (DR) 16-014 ASSESSOR'S PARCEL NUMBER 317-540-15 and -16 WHEREAS, Conditional Use Permit (CUP) 18-004 and Development Review (DR) 16-014 were submitted by Apro, LLC., Applicant/ ARCP UO Portfolio 11, LP., Owner, to expand an existing gas station and add a car wash located at 12462 Poway Road in the Planned Community-8 (PC-8) zone and the Poway Road Specific Plan (PRSP) Commercial General (CG) district. The project involves the demolition of all existing gas station and auto repair structures, the construction of a 2,400-square-foot mini-mart, a 1,000-square-foot car wash, a 4,000-square-foot fueling station canopy, and the addition of two gas dispenser pumps; and WHEREAS, on March 6, 2018, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this application. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: Section 1: This project, which replaces an existing gas station, is consistent with the PRSP. An Environmental Impact Report (EIR) was prepared to analyze the impacts of the buildout of the PRSP, and the EIR was certified by the City Council on December 5, 2017. Technical studies were conducted, and the project was found to be consistent with the PRSP that was analyzed in the EIR and confirmed that no further environmental analysis is required or permitted pursuant to Public Resources Code Section 21166 and California Environmental Quality Act (CEQA) Guidelines Sections 15162 and 15163 because there are no substantial changes to either the project or the surrounding circumstances, nor any new information, that would allow subsequent or supplemental environmental review. The project's potential biological impacts are adequately addressed by and consistent with the City of Poway's Subarea Habitat Conservation Plan (HCP), companion Implementing Agreement dated June 1996, and associated Mitigated Negative Declaration, and further, are consistent with the analysis in the PRSP EIR. Section 2: The undeveloped portion of the project site contains disturbed Coastal Sage Scrub (CSS) as shown on the maps prepared for the HCP and as confirmed by City staff. Implementation of the project will result in habitat impacts to approximately 0.43 acres of CSS. The proposed project complies with the HCP and HCP Implementing Agreement. In accordance with the HCP, the required findings for approval of the proposed mitigation for the removal of CSS for the project are as follows: A. The mitigation is consistent with, and furthers the implementing objectives of, the HCP in that the applicant will mitigate the removal of 0.43 acres of disturbed CSS at a 1 :1 ratio through the recordation of an off-site Biological Conservation Easement (BCE) within the Mitigation Area or the payment of an In-Lieu Fee at a rate established by the City. B. The off-site habitat mitigation or the cash in-lieu payment to go towards the purchase of mitigation habitat within the Mitigation Area will enhance the long-term viability and function of the preserve system. 13 of 25 ATTACHMENT F
August 4, 2020, Item #6Resolution No. P-18-04 Page 2 C. The mitigation will be to the long-term benefit of the covered species and their habitats in that an off-site BCE within the Mitigation Area will be recorded, or a cash In-Lieu Fee will be paid to go towards the purchase of land that will have undisturbed habitat on which a BCE will be recorded. Said land will promote a meaningful addition to the assembly of a viable regional system of interconnected natural habitat resources, habitat linkages, buffers, and wildlife corridors. D. The mitigation shall foster the incremental implementation of the HCP in an effective and efficient manner in that any off-site conservation area is required to be within an identified Mitigation Area within the City. E. The mitigation will not result in a negative fiscal impact with regard to the successful implementation of the Poway Habitat Conservation Plan. Section 3: The findings, in accordance with Section 17.48.070 of the Poway Municipal Code (PMC), for CUP 18-004 to expand an existing gas station and add a car wash facility located at 12462 Poway Road in the CG district, are made as follows: A. The location, size, design, and operating characteristics of the proposed expanded use are in accord with the title and purpose of Chapter 17.48 PMC (Conditional Use Permits Regulations), the General Plan, and the development policies and standards of the City in that a gas station and car wash is allowed in the CG district with a CUP and the project has been designed consistent with design standards and guidelines of the PRSP. B. The location, size, design, and operating characteristics of the proposed use will be compatible with and will not adversely affect or be materially detrimental to adjacent uses, people, buildings, structures, or natural resources in that the project consists of an expansion an existing gas station in an architectural style that is compatible with existing commercial development and the facility that will be operated similar to the existing facility. C. The proposed use is in harmony with the scale, bulk, coverage, and density of, and is consistent with the surrounding development, in that the project consists of expansion of an existing gas station and addition of a car wash, and the facility has been designed to comply with all of the development standards of the PRSP standards. D. There are adequate public facilities, services and utilities available at the subject site to serve the proposed use. E. There will not be a harmful effect upon desirable neighborhood characteristics in that the facility is located along the Poway Road commercial corridor, the architectural style is consistent with the designs guidelines called for in the PRSP, and the operation of the existing and proposed expanded facility will be similar. Noise generated by the car wash will not exceed noise levels allowed by the PMC. F. The generation of traffic will not adversely impact the capacity and physical character of the surrounding streets and/or the Circulation Element of the General Plan in that traffic generated by the proposed gas station expansion and new car wash is similar to the traffic generated by the existing gas station and auto repair facility, the car wash will have adequate on-site space for queuing, and the existing easterly driveway would be shifted east to address the potential for conflict between the use of two new gas pumps and cars entering and exiting the site. 14 of 25
August 4, 2020, Item #6Resolution No. P-18-04 Page 3 G. The site is suitable for the type and intensity of use and development in that the project site is already developed with a gas station with auto repair service bays along a commercial corridor. The addition of gas pumps and a car wash and elimination of the service bays will not result in a significant increase in traffic. H. There will not be significant harmful effects upon environmental quality and natural resources in that habitat impacts to the site will be mitigated in accordance with the City's HCP and the operations of the car wash will be conducted within the City noise standards in that the car wash will have automatic doors that close when the car wash is in use and an 8-foot high wall will provide further noise reductions. I. There are no relevant negative impacts of the proposed use that cannot be mitigated. J. That the impacts, as described in subsections A through I of this Section, and the proposed location, size, design, and operating characteristics of the proposed use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity, nor be contrary to the adopted General Plan. K. That the proposed conditional use will comply with each of the applicable provisions of this title. Section 4: The findings for DR 16-014, in accordance with PMC 17.52.010 Purpose of Development Review, are made as follows: A. The project respects and recognizes the interdependence of land values and aesthetics to the benefit of the City in that it has been designed to be architecturally compatible and in scale with surrounding commercial development. B. The project has been designed to minimize impacts on surrounding development in that the design, and exterior finishes and colors are consistent with the PRSP standards and are compatible with the surrounding commercial buildings. Therefore, the proposed development respects the public concerns for the aesthetics of development and encourages the orderly and harmonious appearance of structures and property within the City. C. The granting of the DR would not be materially detrimental to the public health, safety, or welfare within the community since the proposed project operations of the proposed gas station facility will be similar to the existing facility and noise generated from the car wash will be within noise limits established by the PMC. D. The proposed development respects the public concerns for the aesthetics of development in that it will incorporate architecture consistent with the PRSP. E. The project will not have an adverse effect on the aesthetics, health, and safety, or an architecturally-related impact upon adjoining properties, in that the proposed development contributes to the aesthetics of the Poway Road area. F. The design of the proposed development is consistent with all elements of the Poway General Plan, as well as conforms to the applicable provisions of the Zoning Code and PRSP. 15 of 25
August 4, 2020, Item #6Resolution No. P-18-04 Page 4 Section 5: The findings, pursuant to Government Code Section 66020 for the public improvements, are needed as a result of the proposed development to protect the public health, safety, and welfare are made as follows: A. The design and improvements of the proposed development are consistent with all elements of the Poway General Plan, as well as City Ordinances, because all necessary facilities will be available to serve this project. B. The construction of public improvements is needed as a result of the proposed development to protect the public health, safety, and welfare as shown on the project plans. C. In accordance with the Poway General Plan, the project requires the payment of development impact fees, which are assessed on a pro-rata basis to finance public infrastructure improvements, which promote a safe and healthy environment for the residents of the City. Section 6: The City Council hereby approves CUP 18-004 and DR 16-014 to expand an existing gas station and add a carwash located at 12462 Poway Road in the PRSP Commercial General district, subject to the following conditions: A. The applicant shall defend, indemnify, and hold harmless the City, its agents, officers, and employees from any and all claims, actions, proceedings, damages, judgments, or costs, including attorney's fees, against the City or its agents, officers, or employees, relating to the issuance of this permit, including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, applicant shall pay all of the costs related thereto, including without limitation reasonable attorney's fees and costs. In the event of a disagreement between the City and applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter. However, the applicant shall not be required to pay or perform any settlement unless such settlement is approved by applicant. B. Approval of this CUP and DR request shall apply only to the subject project and shall not waive compliance with all sections of the Zoning Ordinance and all other applicable City Ordinances in effect at the time of Building Permit issuance. C. Within 30 days of the date of this approval, and before the issuance of any permit: (1) the applicant shall submit in writing that all conditions of approval have been read and understood; and (2) the property owner shall execute a Covenant Regarding Real Property. In order for the City to prepare the Covenant the applicant must first submit a legal description of the subject site. D. The use conditionally granted by this approval shall not be conducted in such a manner as to interfere with the reasonable use and enjoyment of surrounding uses. E. The conditions of CUP 18-004 and DR 16-014 shall remain in effect for the life of the subject use and shall run with the land and be binding upon future owners, successors, heirs, and transferees of the current property owner. 16 of 25
August 4, 2020, Item #6Resolution No. P-18-04 Page 5 F. CUP 18-004 may be subject to annual review, as determined by the Director of Development Services, for compliance with the conditions of approval and to address unresolved operational concerns that may have been raised during the prior year. G. Prior to grading, the applicant shall obtain a Grading Permit. Prior to issuance of a Grading Permit, the applicant shall comply with the following: 17 of 25 (Engineering) 1. The applicant shall complete a lot merger for all parcels and it shall be filed with the County Recorder. 2. Applicant shall incorporate Low Impact Development (LID) design features into the site development. These shall be clearly shown and identified on the site plan and be appropriately sized for the proposed level of development. 3. Submit a precise grading plan for the development prepared on a City of Poway standard sheet at a scale of 1" = 20', unless otherwise approved by the City project engineer. Submittal shall be made to the Department of Development Services Engineering Division for review and approval. The grading design shall be 100 percent complete at the time of submittal, ready for approval and issuance of permit. Incomplete submittals will not be accepted. All materials as required by Chapter 16.48 of the PMC shall be submitted. All existing and proposed easements within the project site shall be shown on the grading plans. 4. Water Quality Control -Drainage and Flood Damage Prevention A drainage study addressing the impacts of the 100-year storm event prepared by a registered Civil Engineer is to be submitted and approved. The study shall evaluate existing and proposed hydrologic and hydraulic conditions to the satisfaction of the City project engineer. 5. Water Quality Control -Design and Construction The project shall comply with the City and Regional Water Quality Control Board stormwater requirements. The project is considered a Priority Development Project and will be subject to all City and State requirements. A Storm Water Quality Management Plan (SWQMP) prepared by a registered Civil Engineer is to be submitted and approved. a. Provide two copies of an Operation & Maintenance (O&M) plan in accordance with Chapter 16.104 of the PMC, and a signed PDF version. b. Property owner shall execute an approved Storm Water Management Facilities Maintenance Agreement accepting responsibility for all structural BMP maintenance, repair and replacement as outlined in the O&M plan. The operation and maintenance requirements shall be binding on the land throughout the life of the project as outlined in Chapter 16.104 of the PMC. The project shall demonstrate compliance with the following as stated in the Uniform Closure Letter for APRO# 23 from the California Reginal Water Quality Control Board dated May 26, 2015:
August 4, 2020, Item #618 of 25 Resolution No. P-18-04 Page 6 All future construction on the project area must install post construction best management practices to control storm water runoff in compliance with the US Environmental Protection Agency Guidance Document: "Technical Guidance on Implementing the Stormwater Runoff Requirements for Federal Projects under Section 438 of the Energy Independence and Security Act." 6. The grading plans shall include a note that any contaminated soil encountered or excavated as part of subsurface construction/utility work must be managed in accordance with the applicable legal and regulatory requirements. 7. Grading securities in the amount and form described in Section 16.46 of the PMC shall be posted with the City prior to grading plan approval. This will include a minimum cash security of $2,000 in all instances. 8. The applicant shall pay the storm water pollution inspection fee according to the latest adopted master fee schedule. The current fee amount is $2,636. 9. Any private improvements within any publicly held easement or right-of-way may require an encroachment agreement as determined necessary by the City Engineer. All necessary encroachment agreements shall be approved and executed prior to grading permit issuance. A separate agreement, approved by the City Attorney, for the storm water treatment facilities installed directly above the public storm drain shall be approved and executed. 10. Following approval of the grading plans, posting of securities and fees, and receipt of four copies of the approved plans, the applicant shall attend a pre-construction meeting at the Department of Development Services. The scheduling request shall be submitted on a City standard form available from the City's project engineer. 11. Construction staking is to be installed and inspected by the Engineering Inspector prior to any clearing, grubbing or grading. As applicable, provide two copies of a written certification, signed and sealed in accordance with the Business and Professions Code, by the engineer of record stating that all protected areas have been staked in accordance with the approved plans. (Planning) 12. Prior to removal of any trees a Tree Removal Permit shall be obtained, and tree replacements provided in compliance with PMC Chapter 12.32. Prior to removal of trees during the recognized nesting season for raptors, a qualified professional shall evaluate the subject trees for nests and report the findings in writing to the City. Should a nest be located, removal of the tree shall be delayed until such time as the nest( s) have been abandoned. 13. Pursuant to the HCP, the project is required to mitigate impacts to disturbed CSS. The mitigation shall be at a 1: 1 ratio. Mitigation will be met through an off-site Biological Conservation Easement (BCE) over 0.43 acres of similar quality, unencumbered CSS habitat located within the Poway Mitigation Area or the payment of an In-Lieu Fee at a rate established by the City.
August 4, 2020, Item #619 of 25 Resolution No. P-18-04 Page 7 14. In accordance with Condition Hof the Poway HCP Incidental Take Permit, a take of active California gnatcatcher nests, which includes harassment of the bird due to grading noise and vibrations from February 15 through July 1, is not permitted. The project site is located within 500 feet of CSS habitat. Therefore, grading during this time frame will only be permitted subject to the following conditions having been met to the satisfaction of the Director of Development Services: a. The applicant is hereby advised that, during grading, if active nests are found within 500 feet of the grading, the grading activity shall be stopped until such time as mitigation measures, to the satisfaction of the City and the United States Fish and Wildlife Service (USFWS,) are implemented. There is no guarantee that grading will be allowed to resume during nesting season. b. Before issuance of a Clearing/Grading Permit, if grading is to occur between February 15 and July 1, the applicant shall provide to the Planning Division a letter from a qualified biologist retained by the applicant, with a scope of work for a CSS habitat and Gnatcatcher Survey, and a report for the area to be graded and CSS habitat areas within 500 feet of such area. The biologist shall contact the USFWS to determine the appropriate survey methodology. The purpose of the survey is to determine if any active gnatcatcher nests are located in the area to be graded, or in CSS habitat within 500 feet of such area. To be considered qualified, the biologist must provide the City with a copy of a valid Gnatcatcher Recovery Permit from the USFWS. c. The scope of work shall explain the survey methodology for the biological survey and the proposed gnatcatcher nest monitoring activities during the clearing/grading operation. Should the report show, to the satisfaction of the Director of Development Services, that gnatcatcher nests are not present within the area to be graded/cleared, or within CSS habitat located within 500 feet of said area, approval may be granted to commence clearing/grading within the gnatcatcher nesting season from February 15 through July 1 . d. If gnatcatchers are nesting within the area to be graded/cleared, or within CSS habitat located within 500 feet of said area, no grading will be allowed during this time. e. The biologist must attend the City's pre-construction meeting for the project and must be present on-site during all clearing/grading activities to monitor that the clearing/ grading activities stay within the designated limits. During this period, the biologist shall also monitor and survey the habitat, on a daily basis, within the area to be cleared/graded and any habitat within 500 feet of said area for any evidence that a gnatcatcher nest(s) exists or is being built. Weekly monitoring summaries shall be submitted to the Planning Division. Should evidence of a gnatcatcher nest(s) be discovered, the grading operation shall cease in that area and be directed away from the gnatcatcher nest(s) to a location greater than 500 feet away from the nest(s).
August 4, 2020, Item #620 of 25 Resolution No. P-18-04 Page 8 f. If grading is required to stop due to the presence of active nests, the applicant shall be required to provide erosion control, to the satisfaction of the City Engineer. This paragraph must be included as a note on the cover sheet of the clearing/grading plan. g. The biologist shall provide the City with written confirmation that the limits of clearing/ grading are in accordance with the project's Biological Resource Assessment. h. Upon completion of the clearing/grading activities, the applicant's biologist shall submit to the Director of Development Services a biological monitoring report summarizing the daily observations of the biologist, including whether any gnatcatchers or evidence of active gnatcatcher nests were present during clearing and grading activities within the area and any habitat within 500 feet of said area. 15. Pursuant to the recommendations in the Archeological Resources Survey Report, prepared by Brian F. Smith and Associates, Inc. and dated December 27, 2017, for the subject property, no significant cultural resources were identified on-site. However, due to the culturally sensitive location of the property and considering that most of the natural ground surface was not visible during the survey due to existing development or presence of native vegetation, cultural resource monitoring by a qualified archaeologist shall be provided during ground disturbing activities associated with the project (including, but not limited to, proposed on-site excavation, utility trenching, or construction of stormwater improvements). The purpose of the monitoring is to ensure that if buried cultural materials are present, they will be handled in a timely and proper manner. a. Prior to issuance of a grading permit, the applicant shall provide written verification that a certified archeological monitor has been retained to implement the monitoring program. This verification shall be presented in a letter from the project archeologist to the City of Poway -Planning Division. b. The certified archeologist shall attend the pre-construction meeting with the contractors to explain and coordinate the requirements of the monitoring program. c. During the original cutting of previously undisturbed deposits, the archeological monitor shall be on-site as determined by the consulting archeologist to perform periodic inspections of the excavations. The frequency of inspections will depend upon the rate of excavation, the materials excavated, and the abundance of artifacts and features. d. Isolated and clearly non-significant deposits will be minimally documented in the field, so the monitored grading can proceed. e. In the event that previously unidentified cultural resources are discovered, the archeologist shall have the authority to divert or temporarily halt ground disturbance operations in the area of discovery to allow for the evaluation
August 4, 2020, Item #621 of 25 Resolution No. P-18-04 Page 9 of potentially significant cultural resources. If appropriate, a Native American representative may be contacted to review any discovery associated with the prehistoric occupation of this area. The archeologist shall contact the City of Poway at the time of discovery. The archeologist, in consultation with the City, shall determine the significance of the discovered resources. The City must concur with the evaluation before construction activities will be allowed to resume in the affected area. For significant cultural resources, a Research Design and Data Recovery Program to mitigate impacts shall be prepared by the consulting archeologist and approved by the City before being carried out using professional archeological methods. If any human bones are discovered, the county coroner and lead agency shall be contacted. In the event the remains are determined to be of Native American origin, the most likely descendant, as identified by the Native American Heritage Commission, shall be contacted in order to determine proper treatment and disposition of the remains. f. Before construction activities are allowed to resume in the affected area, the artifacts shall be recovered, and features recorded using professional archeological methods for an adequate artifact sample for analysis. The archaeological monitor(s) in consultation with the City shall determine the amount of material to be recovered for adequate artifact sample for analysis. g. All cultural material collected during the monitoring program shall be processed and curated according to the current professional repository standards. The collections and associated records shall be transferred, including title, to an appropriate curation facility, to be accompanied by payment of the fees necessary for permanent cu ration. h. A report documenting the field and analysis results and interpreting the artifact and research data within the research context shall be completed and submitted to the satisfaction of the City prior to the issuance of any building permits. The report shall include the required archeological forms, including but not limited to, the Department of Parks and Recreation Primary and Archaeological Site Forms. 16. Landscape and irrigation plans shall be submitted for review. The plans shall be approved prior to issuance of a building permit. The landscape and irrigation plans shall demonstrate compliance with the City of Poway Landscape and Irrigation Design Manual, Chapters 17.07 and 17.41 of the PMC, and all other applicable standards in effect at the time of landscape and irrigation plan check submittal. This includes but is not limited to the submittal of an irrigation audit report, pursuant to Section 17.41.110 of the PMC, prior to final inspections/issuance of a Certificate of Occupancy. The landscape and irrigation plan submittal are a separate submittal from other project plan check submittals and is made directly to the Planning Division. Contact the Planning Division for copies of applicable City standards, the landscape and irrigation plan submittal checklist and the plan review fee
August 4, 2020, Item #6Resolution No. P-18-04 Page 10 worksheet. Landscape and irrigation plan review fees are required and are the responsibility of the applicant. Any landscaped areas within the adjacent public right-of-way shall be permanently and fully maintained by the owner. H. The applicant shall obtain a Building Permit prior to expanding the facility. Prior to issuance of a Building Permit, the applicant shall comply with the following: 22 of 25 1. The plans shall comply with the current addition of California Building Code, Electrical Code, Mechanical Code, Plumbing Code and Title 24 at date of submittal to the Building Division for review. 2. The disabled access parking space shall meet the requirements of 118-208.3.1 of the California Building Code. The code section states: "Parking spaces complying with Section 118-502 that serve a particular building or facility shall be located on the shortest accessible route from parking to an entrance complying with Section 11 B-206.4". 3. The applicant shall contact the Poway Unified School District (858-679-2570) to verify if school impact fees are required. If required, the fees shall be paid at the rate established at Building Permit issuance. 4. The site shall be developed in accordance with the approved plans on file in the Development Services Department and the conditions contained herein. (Engineering) 5. The site shall be developed in accordance with the approved grading plans on file in the Development Services Department and the conditions contained herein. Grading of lots shall be in accordance with the Uniform Building Code, the City Grading Ordinance, the approved grading plan, the approved soils report, and grading practices acceptable to the City. 6. Erosion control shall be installed and maintained by the developer from October 1 to April 30. The developer shall maintain all erosion control devices throughout their intended life. 7. Applicant shall obtain a Grading Permit and complete rough grading of the site. The grading shall meet the approval of the Engineering Inspector and the project's geotechnical engineer. Following completion of rough grading, please submit the following: a. Three copies of certification of line and grade for the lot, prepared by the engineer of work. b. Three copies of a soil compaction report for the lot, prepared by the project's geotechnical engineer. The certification and report are subject to review and approval by the City. 8. Prior to start of any work within a City-held easement or right-of-way, a Right-of-Way Permit shall be obtained from the Engineering Division of the Development Services Department. All appropriate fees shall be paid prior to permit issuance.
August 4, 2020, Item #6Resolution No. P-18-04 Page 12 4. The applicant shall provide a detailed plan for all storage areas and a complete racking plan, when applicable. 5. In addition to other ventilation requirements, a Fire Department-approved mechanical ventilation system shall be installed when the indoor storage of vehicles or recreational vehicles occurs. 6. Northern access gate shall have a minimum unobstructed width of 12 feet when in the opened position. J. Prior to issuance of the Certificate of Occupancy: 23 of 25 1. The site shall be developed in accordance with the approved plans on file in the Development Services Department and the conditions contained herein. A final inspection from appropriate City departments will be required. (Engineering) 2. Final revisions to the Preliminary Storm Water Quality Management Plan (SWQMP) and recordation will be required. 3. All existing and proposed utilities or extension of utilities required to serve the project shall be installed underground. No extension of overhead utilities shall be permitted. 4. The drainage facilities, driveway, slope planting measures, and all utility services shall be installed, and completed by the property owner, and inspected by the Engineering Inspector for approval. All new utility services shall be placed underground. 5. The stormwater facilities shall be complete and operational prior to occupancy. 6. An adequate drainage system around the new building pad capable of handling and disposing all surface water shall be provided to the satisfaction of the Engineering Inspector. 7. The applicant shall repair, to the satisfaction of the City Engineer, any and all damages to public improvements caused by construction activity from this project. 8. Record drawings, signed by the engineer of work, shall be submitted to Development Services prior to a request of occupancy, per Section 16.52.130 of the Grading Ordinance. Record drawings shall be submitted in a manner to allow the City adequate time for review and approval prior to issuance of occupancy and release of grading securities. At least three weeks prior to a request for occupancy is recommended. All other final reports and agreements, as outlined in Section 16.52.130 of the Grading Ordinance are to be approved. (Planning) 9. Landscaping shall be installed per the approved landscape plans. If applicable, an irrigation audit report shall be submitted, pursuant to Section 17.41.110 of the PMC.
August 4, 2020, Item #6Resolution No. P-18-04 Page 13 K. With the expansion of an existing gas station and the addition of a car wash, pursuant to CUP 18-004 and DR 16-014, the following shall apply: 1. The use of the facility shall be limited to activities as described in the application. 2. The activities of the facility shall not occur in such a manner as to create adverse impacts on the circulation and parking on surrounding public streets. 3. The facility shall be operated in such a manner as to minimize any possible disruption caused by noise and shall comply with noise standards contained in Chapter 8.08 of the PMC. At no time, shall noise from any source exceed the noise standards defined in the PMC. 4. The owner or operator of the facilities shall routinely and regularly inspect the site to ensure compliance with the standards set forth in this Permit. 5. Any signs proposed for this development shall be designed and approved in conformance with the PMC and require the approval of a separate Sign Permit. 6. All landscaping, including areas within the adjacent public right-of-way, shall be adequately irrigated, and permanently and fully maintained by the owner at all times in accordance with the requirements of the City of Poway Landscape and Irrigation Design Manual. The trees shall be encouraged and allowed to retain a natural form. Pruning should be restricted to maintain the health of the trees and to protect the public safety. Trees should be trimmed or pruned as needed to develop strong and healthy trunk and branch systems. Tree maintenance and pruning shall be in accordance with "American National Standard for Tree Care Operations" latest edition (ANSI A300). Trees shall not be topped, and pruning shall not remove more than 25 percent of the trees' leaf surface. Section 7: The approval of CUP 18-004 and DR 16-014 shall expire on March 6, 2020, at 5:00 p.m. unless, prior to that time, a Building Permit has been issued and construction on the property in reliance on the CUP approval has commenced. Section 8: The parties are hereby informed that the time within which judicial review of this decision must be sought is governed by Section 1094.6 of the California Code of Civil Procedure. PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway, California, at a regular meeting this 6th day of March 2018. Steve Vaus, Mayor ATTEST: 24 of 25
August 4, 2020, Item #6Resolution No. P-18-04 Page 14 STATE OF CALIFORNIA ) ) ss COUNTY OF SAN DIEGO ) I, Nancy Neufeld, City Clerk of the City of Poway, California, do hereby certify under penalty of perjury that the foregoing Resolution No. P-18-04 was duly adopted by the City Council at a meeting of said City Council held on the 6th day of March 2018, and that it was so adopted by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: 25 of 25 CUNNINGHAM, GROSCH, LEONARD, MULLIN, VAUS NONE NONE NONE Nancy N uiii. ~ity Clerk City of Poway
August 4, 2020, Item #7DATE: TO: FROM: CONTACT: SUBJECT: Summary: August 4, 2020 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ·~ Stacey Tang, Finance Manager gf (858) 668-4426 or stang@poway.org Resolution Renewing the Fire Protection Special Tax to be Collected on the Property Tax Roll for Fiscal Year 2020-21 Consideration of a resolution renewing the Fire Protection Special Tax to be collected on the property tax roll for Fiscal Year 2020-21. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution approving the collection of the Fire Protection Special Tax on the property tax roll for Fiscal Year 2020-21. Discussion: Annually, the City collects various taxes, fees, charges, and assessments on the tax roll by following the San Diego County Auditor/Controller's procedures established for such collections. The composition of the taxes, fees, charges, and assessments varies slightly from year to year as the time span for the assessments expires or new areas and charges are added. The taxes, fees, charges, and assessments include: Fire Protection Special Tax; Weed Abatement; Landscape Maintenance District Assessments; Nuisance Abatement; and collection for the repayment of Neighborhood Loans (Water Line Improvement Assessments, and Water and Sewer Improvement Assessments). To collect these items on the tax roll, it is necessary to adopt a resolution setting the charges and to authorize staff to transmit the information to the San Diego County Clerk of the Board of Supervisors and Auditor/Controller. The following narrative explains the Fire Protection Special Tax that is to be collected via the San Diego County tax roll. A parcel-specific listing of the amounts to be collected is on file in the City Clerk's Office. 1 of 3
August 4, 2020, Item #7Fire Protection Special Tax -Voters approved the Fire Protection Special Tax on June 17, 1997 which was codified as Poway Municipal Code Chapter 3.20 via Ordinance No. 476. As a special tax, the Fire Protection Special Tax can only be used to support fire protection services, including but not limited to, the acquisition of equipment and the payment of personnel costs. For Fiscal Year 2020-21, the Fire Department has assigned an estimated 209,967 points to parcels on the tax roll. The tax rate of $3.12 per point is unchanged from Fiscal Year 2019-20. The estimated Fire Protection Special Tax to be collected on the tax roll for Fiscal Year 2020-21 is $654,971. For tax roll purposes, a not-to-exceed amount of $700,000 is authorized by the Resolution (Attachment A). The higher amount is used in the Resolution to ensure that if further additions to the tax roll are made, for properties in the business park for example, the authorized amount will not be exceeded. The amount per parcel is rounded to the nearest even whole cent. Parcels that are not listed on the property tax roll will be billed directly by the City. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The Fire Protection Special Tax helps support fire protection services provided by the Fire Department. The Fire Department's total operating budget for Fiscal Year 2020-21 is $13,447,219 while the estimated Fire Protection Special Tax to be collected is $654,971, or 4.87 percent of the total budget. While the revenue can offset all fire protection services, this revenue specifically helps offsets fire prevention operating costs of $659,265 for Fiscal Year 2020-21. Expenses exceed the revenues collected through the Fire Protection Special Tax because it did not include a voter approved inflator when it was adopted in 1997. The Fire Protection Special Tax revenue estimate for Fiscal Year 1997-98 was $535,000 which helped support a Fiscal Year 1997-98 Fire Department budget of $3,193,860, or 16. 75 percent of the total budget. In order for taxes, fees, and assessments to be collected on the tax roll for Fiscal Year 2020-21, it is necessary for the City Council to adopt a resolution authorizing this action. Public Notification: A Notice of Public Hearing was published in the Poway News Chieftain on Thursday, July 23, 2020 and Thursday, July 30, 2020. Attachments: A. Resolution renewing the Fire Protection Special Tax to be collected on the property tax roll for Fiscal Year 2020-21. Reviewed/ Approved By: We~ Kaserman Assistant City Ma nag er 2 of 3 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
August 4, 2020, Item #7RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, RENEWING THE FIRE PROTECTION SPECIAL TAX TO BE COLLECTED ON THE PROPERTY TAX ROLLS FOR FISCAL YEAR 2020-21 WHEREAS, the residents of Poway approved a Fire Protection Special Tax in 1997; WHEREAS, the City Council of the City of Poway desires to have the Fire Protection Special Tax collected on the property tax roll; and WHEREAS, pursuant to Poway Municipal Code 3.20.070 the City Clerk fixed the public hearing date as August 4, 2020 to adopt the Fire Protection Special Tax; and WHEREAS, following duly given notice, the City Council of the City of Poway did hold such public hearing, receiving, considering and evaluating public comments. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: That the not-to-exceed amount of $700,000 shall be collected on the property tax roll in the form of a Fire Protection Special Tax of $3.12 per point as authorized by Ordinance No. 476 of the City of Poway. SECTION 2: That the City Clerk is instructed to forward a certified copy of this Resolution to the Clerk of the Board of Supervisors and the Auditor/Controller of the County of San Diego. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC Interim City Clerk 3 of 3 ATTACHMENT A
August 4, 2020, Item #8DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway CITY COUNCIL August 4, 2020 Honorable Mayor and Members of the City Co~~,cil Eric Heidemann, Director of Public Works 4 ~ Will Wiley, Assistant Director of Public Works for Maintenance Operation~/ (858) 668-4 705 or wwiley@poway.org r Resolution Establishing Assessments for Poway Landscape Maintenance District 83-1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 At the City Council meeting on June 16, 2020, Council adopted Resolution No. 20-039 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 83-1 and set the public hearing for July 21, 2020; however, the item was continued to August 4, 2020. In 2018, the City initiated proceedings to form a proposed Landscape Maintenance Districted (referred to as LM D 18-1) within the boundaries of the existing LM D 83-1. The Proposed District, LMD 18-1, would have added properties that previously were not assessed, established different benefit zones, and increased the assessments currently imposed on properties in existing LMD 83-1. The Proposed District was balloted for an increase in assessments with annual cost indexing based on the annual San Diego Consumer Price Index (SD-CPI) not to exceed three (3) percent. The Proposed District had a majority protest for the increase, and consequently, failed to pass the ballot. Zones A, B and C (residential and commercial) assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rates. Service level reductions in Zones A, B and C were implemented during Fiscal Year 2018-19 to ensure District expenses did not exceed projected revenue. Zones A, B and C service levels are currently at level C and may be subject to further adjustment during Fiscal Year 2020-21 depending on frequency and magnitude of unplanned events. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. 1 of 5
August 4, 2020, Item #8Discussion: LMD 83-1 was formed on June 14, 1983, to maintain landscape improvements required as conditions of approval for the various subdivisions included within the District boundaries. Each subdivision and/or development listed below was required to annex into the District as a condition of property development either through the final map process or by Council Resolution. LM D 83-1 Zone A is comprised of the residential parcels within the following developments: TRACT PROJECT NAME TTMs 3495, 4113, 4191, 89-15 and TPM 89-18 TTM 3503 TTM 3533 TTM 3461 TTM 84-07 TTM 87-06 TTM 88-05 TTM 88-09 TPM 89-09 TPM 99-05 TTM 99-01 TTM 02-03 TPM 03-05 TTM 84-04R TTM 85-01 TTM 87-04 TTM 86-04 TTM 86-05 Rancho Arbolitos Adobe Ridge I and II The Colonies Casa Real, Unit 7 Woodland Hills Cicero-Pacific Gateway/La Manda Carmel Vista Cusick Spyglass Diroma Estates Lamagna Lamagna Country Creek Rancho Espola Park Village Midland Estates Community 16 Villas (Poway 16) LMD 83-1 Zone B is comprised of the following non-residential developments: TRACT PROJECT NAME TPM 86-03 CUP 92-05 Twin Peaks Plaza KinderCare LMD 83-1 Zone C is comprised of the residential parcels within the following development: TRACT PROJECT NAME TTM 98-06 Kentfield Estates The Fiscal Year 2020-21 assessments for Zones A, (residential), B (commercial) and C (residential) are proposed to remain at the Fiscal Year 2019-20 rates of $118.48 per benefit unit per year ($9.87 per benefit unit per month), $235.75 per benefit unit per year ($19.65 per benefit unit per month) and $496.16 per benefit unit per year ($41.35 per benefit unit per month), respectively. The rates of assessment are based on the required revenues divided by the number of benefit units within each zone as outlined in the Fiscal Year 2020-21 Engineer's Report (pgs.8-9). The City Council's approved Fiscal Year 2020-21 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. 2 of 5
August 4, 2020, Item #8Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Revenue generated from LMD 83-1 A for assessments is $164,805.68, and an estimated amount of interest of $4,500.00. General Fund contributions are in the amount of $52,397.00. Revenue generated from LMD 83-1 B for assessments is $23,226.00, and an estimated amount of interest of $2,000.00. General Fund contributions are in the amount of $13,559.00. Revenue generated from LMD 83-1 C for assessments is $12,900.16, and an estimated amount of interest of $1,220.00. General Fund contributions are in the amount of $2,821.00. Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, July 24, 2020. Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. No responses have been received regarding the proposed assessments at the time this report was written. Attachments: A. Resolution Reviewed/ Approved By: L.-----Wendy serman Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
August 4, 2020, Item #8RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT 83-1 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2020-21 WHEREAS, the City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS pursuant to the provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment Law being the "Landscape and Lighting Act of 1972" (being Part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 20-039 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Landscape Maintenance District 83-1, the Assessment Engineer to the City of Poway has submitted an Engineer's Report for the District as required by California Streets and Highways Code, Section 22565; WHEREAS, on June 16, 2020, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by the laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for three (3) zones are as follows: Zone A: Zone B: Zone C: $118.48 per benefit unit $235. 75 per benefit unit $496.16 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2020-21 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zones A, Band C of Landscape Maintenance District 83-1 are as follows: Zone A: Zone B: Zone C: $164,805.68 $ 23,226.00 $ 12,900.16 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated for Zone A as $52,397.00, for Zone Bas $13,559.00 and Zone C as $2,821.00. 4 of 5 ATTACHMENT A
August 4, 2020, Item #8Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 5 of 5
August 4, 2020, Item #9DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway CITY COUNCIL August 4, 2020 Honorable Mayor and Members of the City Cou~ Eric Heidemann, Director of Public Works 4 vy Will Wiley, Assistant Director of Public Works for Maintenance Operations (858) 668-4705 or wwiley@poway.org Resolution Establishing Assessments for Poway Landscape Maintenance District 86-1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 At the City Council meeting on June 16, 2020, Council adopted Resolution No. 20-040 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-1 and set the public hearing for July 21, 2020; however, the item was continued to August 4, 2020. In 2018, the City initiated proceedings to form a proposed Landscape Maintenance District (referred to as LMD 18-2) within the boundaries of the existing LMD 86-1. The Proposed District, LMD 18-2, would have added properties that previously were not assessed and established different benefit zones, and increased the assessments currently imposed on properties in the existing LMD 86-1. The Proposed District was balloted for an increase in assessments with annual cost indexing based on the annual San Diego Consumer Price Index (CPI) not to exceed three (3) percent. The Proposed District had a majority protest for the increase, and consequently, failed to pass the ballot. The assessments for residential Zone A are proposed to remain unchanged from the Fiscal Year 2019-20 rates. Service level reductions to level B were implemented in Zone A during Fiscal Year 2018-19 to ensure District expenses did not exceed projected revenue. Zone A service levels will continue to be subject to further adjustment during Fiscal Year 2020-21 depending on frequency and magnitude of unplanned events. Within Zone A, the Green Valley Estates Homeowners Association currently has an agreement in place with the City to maintain the rights-of-way bordering the development along Lake Poway Road. Additionally, one non-residential parcel (which makes up Zone B with current service level A), also has an agreement in place with the City to maintain the landscape improvements along the corner of Espola Road and Twin Peaks Road. As such, these parcels will not be levied. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. 1 of 5
August 4, 2020, Item #9Discussion: LMD 86-1 was formed on June 12, 1986, to maintain the landscape improvements installed in conjunction with new subdivisions within the boundaries of the District. LMD 86-1, by Zone, includes the following developments: Zone A (954 residential parcels assessed) TRACT PROJECT NAME TTMs 4090R, 4091 R, 4092R, 4093R TTM 3545 TTM 4158 TTM 84-08 TTM 87-05 TTM 89-13 TTM 89-13R TTM 89-13R TTM 89-13R TTM 98-02 TTM 99-03 MDRA 98-71 MDRA 01-38 MDRA 05-59 MDRA 04-02 TTM 00-02 TTM 02-01 PM15384 (Par 1, 2, 3 and 4) MAP 15725 ROS 4063 TTM 86-01 MDRA 04-02 TTM 87-05 TTM 88-15 Bridlewood Piedmont Park Stone Canyon Ranch The Grove Serenata Old Coach Collection The Heritage, Phase I, Unit I The Heritage, Phase I, Unit Ill The Heritage, Phase I, Unit IV North Point Vision Homes Kennedy Family Trust Wells Trust Garczynski Sedehi/Fard Malone BBA Partners Custom Homes Milpitas-Fleming Associates Seaman Gregg Huntington Gate, I and 11 Sedehi/Fard Serenata Green Valley Estates (portion of Landscape Maintenance District maintained per agreement) Zone B (one parcel maintained by LDS Poway Chapel per agreement) TRACT PROJECT NAME DR 89-19 LDS Poway Chapel The Fiscal Year 2020-21 assessments for Zone A (residential), is proposed to remain at the Fiscal Year 2019-20 rate of $243.04 per benefit unit per year ($20.25 per benefit unit per month). This rate of assessment is based on the required assessment revenues divided by the number of benefit units within Landscape Maintenance District 86-1 A as outlined in the Fiscal Year 2020-21 Engineer's Report (pg. 8). Service level reductions were implemented in Zone A during Fiscal Year 2018-19 to ensure District expenses do not exceed projected revenue. Zone A service levels will continue to be subject to further 2 of 5
August 4, 2020, Item #9adjustment during Fiscal Year 2020-21 depending on frequency and magnitude of unplanned events. Notably, within Zone A, the Green Valley Estates Homeowners Association currently has an agreement in place with the City to maintain the rights-of-way bordering the development along Lake Poway Road. Therefore, an assessment will not be levied for these parcels. Zone B (non-residential) is comprised of a single property, The Church of Latter-Day Saints. The landscape improvements are being maintained by the parcel owner under the terms of an agreement with the City. Therefore, an assessment will not be levied for this zone. The City Council's approved Fiscal Year 2020-21 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Revenue generated from Landscape Maintenance District 86-1 A assessments is $231,860.16, and interest of an estimated amount of $3,140.00. General Fund contributions are in the amount of $49,512.00. Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, July 24, 2020. Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. No responses have been received regarding the proposed assessments at the time this report was written. Attachments: A. Resolution Reviewed/ Approved By: wmdaserman Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
August 4, 2020, Item #9RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT 86-1 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2020-21 WHEREAS, the City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS pursuant to the provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment Law being the "Landscape and Lighting Act of 1972" (being Part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 20-040 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Landscape Maintenance District 86-1, the Assessment Engineer to the City of Poway has submitted an Engineer's Report for the District as required by California Streets and Highways Code, Section 22565; WHEREAS, on June 16, 2020, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by the laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Assessment Rates is as follows: Zone A: $243.04 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2020-21 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zone A of Landscape Maintenance District 86-1 is as follows: Zone A: $231,860.16 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated as $49,512.00 4of5 ATTACHMENT A
August 4, 2020, Item #9Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 5 of 5
August 4, 2020, Item #10DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway CITY COUNCIL August 4, 2020 Honorable Mayor and Members of the City Co~cil Eric Heidemann, Director of Public Works q ~ Will Wiley, Assistant Director of Public Works for Maintenance Operatio , (858) 668-4705 or wwiley@poway.org Resolution Establishing Assessments for Poway Landscape Maintenance District 86-2 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 At the City Council meeting on June 16, 2020, Council adopted Resolution No. 20-041 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-2 and set the public hearing for July 21, 2020; however, the item was continued to August 4, 2020. The Fiscal Year 2020-21, Zone A assessment rate shall remain unchanged from the Fiscal Year 2019-20 rate. Zone B balances and revenues are projected to be insufficient to maintain service level A. In order to maintain the current service level A, the Zone B assessment is proposed to be increased by the San Diego Consumer Price Index (CPI). Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: LMD 86-2 was formed on May 20, 1986, to maintain landscape improvements installed in conjunction with new subdivisions within the boundaries of the District. LMD 86-2, by Zone, includes the following developments: Zone A (110 residential parcels assessed). TRACT PROJECT NAME TTM 4185R TTM 87-12 TTM 89-03 TPM 97-15 TTM 89-05 1 of 5 Sunrise Ranch Silver Ridge (aka Poway Villas) Eagle Pointe (aka La Paz Summit) Paradise Development Southern Hills (aka Summit Estates)
August 4, 2020, Item #10Zone B (residential developments) includes the following: TRACT PROJECT NAME TTM 83-02 CUP 06-09 (M) Sycamore Creek Loma Cabrillo, LLC The Fiscal Year 2020-21 assessments for Zone A are proposed to remain at the Fiscal Year 2019-20 rates of $186.16 per benefit unit per year ($15.51 per benefit unit per month). Zone B assessments will increase to $316.10 per benefit unit per year ($26.34 per benefit unit per month) less than the maximum of $479.67. The rates of assessment are based on the required revenues divided by the number of benefit units within each Zone as outlined in the Fiscal Year 2020-21 Engineer's Report (pgs. 8-9). Ballot actions for assessment increases in Zone A failed in 1998 and 2009. As a result, it was necessary to reduce service levels during Fiscal Year 2009-10 to ensure District expenses did not exceed projected revenue. Zone A service level was reduced to level C and may be subject to further adjustment during Fiscal Year 2020-21 depending on frequency and magnitude of unplanned events. It should be noted that the five-year budget and revenue projection indicates that it may be necessary to undertake a Proposition 218 process in Zone A to request an assessment increase to meet the District's service and capital requirements in futureyears. Total revenue in Zone B (assessments, the general fund contribution and interest) is anticipated to be insufficient to offset Zone B's projected expenses this fiscal year without increasing the assessments by the San Diego Consumer Price Index (CPI). Proposition 218 balloting passed in 1998 that allowed for an annual CPI increase, if necessary. Service levels are to remain the same because of the ability to adjust assessments by the CPI. Zone B properties participated in a community-based landscape renovation project in Fiscal Years 2011-12 and 2015-16 due to the neighborhood's desire to utilize a portion of their reserve funds to reinvest in their subdivision entry signage, irrigation and landscaping. The City Council's approved Fiscal Year 2020-21 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Revenue generated from LMD 86-2A assessments is $20,477.60, and an estimated amount of interest of $650.00. General Fund contributions are in the amount of $3,435.00. Revenue generated from LMD 86-28 assessments is $53,104.80, and an estimated amount of interest of $500.00. General Fund contributions are in the amount of $3,084.00. 2 of 5
August 4, 2020, Item #10Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, July 24, 2020. Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. Correspondence has been received regarding the proposed assessments at the time this report was written. Attachments: A Resolution Reviewed/ Approved By: Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
August 4, 2020, Item #10RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT 86-2 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2020-21 WHEREAS, the City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS pursuant to the provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment Law being the "Landscape and Lighting Act of 1972" (being Part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 20-041 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Landscape Maintenance District 86-2, the Assessment Engineer to the City of Poway has submitted an Engineer's Report for the District as required by California Streets and Highways Code, Section 22565; WHEREAS, on June 16, 2020, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by the laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for two (2) zones are as follows: Zone A: $186.16 per benefit unit Zone B: $316.10 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2020-21 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zones A and B of LMD 86-2 are as follows: Zone A: $20,477.60 Zone B: $53,104.80 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated for Zone A as $3,435.00 and Zone Bas $3,084.00. 4 of 5 ATTACHMENT A
August 4, 2020, Item #10Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher CMC, Interim City Clerk 5 of 5
August 4, 2020, Item #11DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway CITY COUNCIL August 4, 2020 Honorable Mayor and Members of the City Cou.'\cil Eric Heidemann, Director of Public Works { ~ ~ Will Wiley, Assistant Director of Public Works for Maintenance Operation (858) 668-4705 or wwiley@poway.org Resolution Establishing Assessments for Poway Landscape Maintenance District 86-3 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 At the City Council meeting on June 16, 2020, Council adopted Resolution No. 20-042 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 86-3 and set the public hearing for July 21, 2020; however, the item was continued to August 4, 2020. Both commercial and residential assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rates. Service level reductions were implemented in Zone A during Fiscal Year 2009-10 to ensure District expenses did not exceed projected revenue. Zone A service level was reduced to level C and may be subject to further adjustment during Fiscal Year 2020-21 depending on frequency and magnitude of unplanned events. Zone B balances and revenues are projected to be sufficient to remain at service level A. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: LMD 86-3 was formed on May 20, 1986, to maintain landscape improvements installed in conjunction with new subdivisions within the boundaries of the District. LMD 86-3, by Zone, includes the following developments: Zone A (159 residential parcels assessed) 1 of 5
August 4, 2020, Item #11TRACT PROJECT NAME TM TTM TTM 3994 88-03 94-02 The Pond Sycamore Springs Poway Oaks Zone B (16 non-residential parcels; 205.936 commercial units and two multi-residential, low-income housing apartments having 40.36 units) TRACT PROJECT NAME TPM TTM 90-04 90-05 Under Bldg. Permit DR 98-07/VAR98-11 TPM 01-06 DR 05-05 Wal-Mart Creekside Plaza SteinMart Plaza Poway Hyundai Hillside Village Apartments Solara Apartments Both commercial and residential assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rates of $163.00 per benefit unit per year ($13.58 per benefit unit per month), and $75.31 per benefit unit per year ($6.28 per benefit unit per month), respectively. The rates of assessment are based on the required revenues divided by the number of benefit units within each Zone as outlined in the Fiscal Year 2020-21 Engineer's Report (pgs. 7-8). A ballot for an assessment increase in Zone A failed in 1998. As a result, it was necessary to reduce service levels to ensure District expenses did not exceed projected revenue. Zone A service level was reduced to level C and may be subject to further adjustment during Fiscal Year 2020-21, depending on frequency and magnitude of unplanned events. The five-year budget and revenue projection indicate that it may be necessary to undertake a Proposition 218 ballot in Zone A to request an assessment increase to meet the District's service and capital requirements in future years. Total revenue in Zone B (assessments, the general fund contribution and interest) is anticipated to be insufficient to offset Zone B's projected expenses this fiscal year without use of district reserves. Service levels are to remain at level A because of a sufficient reserve fund balance. A Proposition 218 ballot passed in 1998 which allows for an annual San Diego Consumer Price Index (CPI) increase, if necessary. Since the reserve balance is healthy, application of the CPI increase this fiscal year is not required. The City Council's approved Fiscal Year 2020-21 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Revenue generated from LMD 86-3A assessments is $25,917.00, and an estimated amount of interest of $1,000.00. General Fund contributions are in the amount of $1,374.00. 2 of 5
August 4, 2020, Item #11Revenue generated from LMD 86-38 assessments is $16,378.50, and an estimated amount of interest of $2,000.00. General Fund contributions are in the amount of $6,869.00. Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, July 24, 2020. Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. No responses have been received regarding the proposed assessments at the time this report was written. Attachments: A. Resolution Reviewed/ Approved By: We~aserman Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney App roved By: City Manager
August 4, 2020, Item #11RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT 86-3 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2020-21 WHEREAS, the City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS pursuant to the provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment Law being the "Landscape and Lighting Act of 1972" (being Part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 20-042 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Landscape Maintenance District 86-3, the Assessment Engineer to the City of Poway has submitted an Engineer's Report for the District as required by California Streets and Highways Code, Section 22565; WHEREAS, on June 16, 2020, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by the laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for two (2) zones are as follows: Zone A: $163.00 per benefit unit Zone B: $ 75.31 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2020-21 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zones A and B of Landscape Maintenance District 86-3 are as follows: Zone A: $25,917.00 Zone B: $16,378.50 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated for Zone A $1,374.00 as and Zone B as $6,869.00. 4 of 5 ATTACHMENT A
August 4, 2020, Item #11Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 5 of 5
August 4, 2020, Item #12DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PO RT City of Poway August 4, 2020 Honorable Mayor and Members of the City Council Eric Heidemann, Director of Public Works 1"~ CITY COUNCIL Will Wiley, Assistant Director of Public Works for Maintenance Operations (858) 668-4705 or wwiley@poway.org Resolution Establishing Assessments for Poway Landscape Maintenance District 87-1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 At the City Council meeting on June 16, 2020, Council adopted Resolution No. 20-043 declaring the intention to levy and collect assessments within Landscape Maintenance District 87-1 and set the public hearing for July 21, 2020; however, the item was continued to August 4, 2020. Assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rates. Service level reductions are being implemented to service level B during Fiscal Year 2020-21 to ensure district expenses do no exceed projected revenues. Service levels will continue to be subject to further adjustment during Fiscal Year 2020-21, depending on frequency and magnitude of unplanned events. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: LM D 87-1 was formed on January 27, 1987, to maintain landscape improvements installed in conjunction with new subdivisions within the boundaries of the District. LMD 87-1 includes the following residential developments: TRACT PROJECT NAME TTM TTM TPM TTM 1 of 4 88-04R 97-03 98-07 98-07 Rolling Hills Estates I and II Valencia Kimball Aviano/Bothwell
August 4, 2020, Item #12TPM TPM 19952 01-05 Rexford Dynasty Development Service levels will be reduced from current levels in Fiscal Year 2020-21. The assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rate of $210.68 per year ($17.56 per month) per benefit unit. On May 21, 2019, a ballot measure was passed to reorganize the existing 87-1 landscape maintenance district forming a new landscape maintenance district (19-1) by detaching 327 commercial properties. The existing residential development areas within Landscape Maintenance District 87-1 are to remain as part of the district; the current parcel assessment rate remain unchanged. The City Council's approved Fiscal Year 2020-21 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Revenue generated from Landscape Maintenance District 87-1 assessments is $41,082.60 and an estimated amount of interest of $1,300.00. General Fund contributions are in the amount of $10,105.00. Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, July 24, 2020. Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. No responses have been received regarding the proposed assessments at the time this report was written. Attachments: A. Resolution Reviewed/ Approved By: Wend ~aserman Assistant City Manager 2 of 4 Reviewed By: Alan Fenstermacher City Attorney Approved By: Chr~ City Manager
August 4, 2020, Item #12RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT 87-1 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2020-21 WHEREAS, the City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS pursuant to the provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment Law being the "Landscape and Lighting Act of 1972" (being Part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 20-043 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Landscape Maintenance District 87-1, the Assessment Engineer to the City of Poway has submitted an Engineer's Report for the District as required by California Streets and Highways Code, Section 22565; WHEREAS, on June 16, 2020, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by the laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for one (1) zone is as follows: Zone A: $210.68 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2020-21 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zone A of Landscape Maintenance District 87-1 are as follows: ZoneA: $41,082.60 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated as $10,105.00. 3 of 4 ATTACHMENT A
August 4, 2020, Item #12Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 4 of 4
August 4, 2020, Item #13DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT City of Poway CITY COUNCIL August 4, 2020 Honorable Mayor and Members of the City Cour~ Eric Heidemann, Director of Public Works ~ ~ Will Wiley, Assistant Director of Public Works for Maintenance Operation (858) 668-4705 or wwiley@poway.org Resolution Establishing Assessments for Poway Landscape Maintenance District 19-1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 At the City Council meeting on June 16, 2020, Council adopted Resolution No. 20-044 declaring the intention to levy and collect assessments within Landscape Maintenance District (LMD) 19-1 and set the public hearing for July 21, 2020; however, the item was continued to August 4, 2020. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: On May 21, 2019, a Proposition 218 ballot was passed to reorganize LMD 87-1 Landscape Maintenance District forming a new Landscape Maintenance District (LMD 19-1) by detaching 327 commercial properties. LMD 19-1 includes the following commercial developments: TRACT PROJECT NAME TTM 85-04 Pomerado Business Park I and II TTM 86-02R Tech Business Center TTM 87-13 Parkway Business Centre I and II TTM 88-04R Trident Center TTM 98-05 Parkway Business Centre Ill TTM 99-07 Legacy/Toppan DR 95-13 Watkins Terminals DR 97-47 Discovery Isle TTM 00-01 Poway Views, LLC DR 03-13 Costco/Home Depot TTM 86-02R Poway Corporate Center 1 of 4
August 4, 2020, Item #13TPM 06-04 Slough Poway 11, LLC Total revenue (assessments, the general fund contribution and interest) is anticipated to be insufficient to offset the District's projected expenses this fiscal year, 2020-21 without increasing the assessment rate by the San Diego Consumer Price Index (CPI) of 2.35 percent. Assessments are proposed to increase from $840.00 per benefit unit to $859.74 per benefit unit. Proposition 218 balloting passed in 2019 that allowed for an annual CPI increase, if necessary. Service levels are to remain the same because of the ability to adjust assessments by the CPI. The City Council's approved Fiscal Year 2020-21 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Revenue generated from LMD 19-1 assessments is $748,624.19, and interest of an estimated amount of $1,000.00. General Fund contributions are in the amount of $146,601.00. Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, July 24, 2020. Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. No responses have been received regarding the proposed assessments at the time this report was written. Attachments: A. Resolution Reviewed/ Approved By: Wendy serman Assistant City Manager 2 of 4 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager
August 4, 2020, Item #13RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LANDSCAPE MAINTENANCE DISTRICT 19-1 TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2020-21 WHEREAS, the City Council of the City of Poway desires to have Landscape Maintenance District assessments collected on the San Diego County Property Tax Roll; WHEREAS pursuant to the provisions of City of Poway Resolution No. 00-034 (Policies for Landscape Maintenance Districts) and Assessment Law being the "Landscape and Lighting Act of 1972" (being Part 2 of Division 15 of the California Streets and Highways Code}, applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 20-044 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Landscape Maintenance District 19-1, the Assessment Engineer to the City of Poway has submitted an Engineer's Report for the District as required by California Streets and Highways Code, Section 22565; WHEREAS, on June 16, 2020, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by the laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Assessment Rate for one (1) zone is as follows: Zone A: $859.74 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2020-21 San Diego County Property Tax Roll to provide for the maintenance of landscape improvements within Zone A of Landscape Maintenance District 19-1 is as follows: Zone A: $748,624.19 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated as $146,601.00. 3 of 4 ATTACHMENT A
August 4, 2020, Item #13Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 4 of 4
DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway CITY COUNCIL August 4, 2020 Honorable Mayor and Members of the City cq~~cil Eric Heidemann, Director of Public Works 4, ~ Will Wiley, Assistant Director of Public Works for Maintenance Operationt1if'.---(858) 668-4705 or wwiley@poway.org r Resolution Establishing Assessments for Poway Lighting District to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020-21 At the City Council meeting on June 16, 2020, Council adopted Resolution No. 20-045 declaring the intention to levy and collect assessments within the Poway Lighting District and set the public hearing for July 21, 2020; however, the item was continued to August 4, 2020. Assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rates; however, the District's overall revenue from assessments will increase due to land development, land use designation changes and the creation of new subdivisions. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: The City of Poway Lighting District was formed by the City Council on May 12, 1986. There are approximately 16,173 parcels in the City of Poway. The Poway Lighting District currently assesses 14,781 of these parcels. The benefit units (BUs) derived from these assessable parcels total 22,167 for Zone A, 3,652 for Zone Band 25,819 for Zone C. Zone A parcels have street lighting within their immediate vicinity and share equitably in benefit from major arterial street lighting. Zone A assessments are based on $15.00 per benefit unit per year for improved parcels and $7.50 per benefit unit per year for vacant, buildable parcels. Zone B parcels do not have benefit of immediate street lighting but share equitably in benefit from major arterial street lighting. Zone B assessments are based on $3.75 per benefit unit per year for improved parcels and $1.88 per benefit unit per year for vacant, buildable parcels. 1 of 5 August 4, 2020, Item #14
Zone C assessments, which fund the operation and maintenance of traffic signals, safety lights, flashing beacons, and lighted street name signs within the City boundaries, are collected from all assessable parcels in Poway. Improved parcels are assessed at $13.58 per benefit unit per year. Buildable parcels that are vacant are assessed at a rate of 50 percent, or $6.79 per benefit unit per year. Public parks, facilities and parking lots are not included in the district. The Fiscal Year 2020-21 assessments are based on the District's operation and maintenance expenses. Assessments are proposed to remain unchanged from the Fiscal Year 2019-20 rates. Total revenues are estimated to be $1,398,943.00, which includes $332,508.12 in Zone A Assessments, $13,662.66 in Zone B Assessments, $350,610.48 in Zone C Assessments, the annual Ad Valorem Tax, City General Benefit Contribution, and estimated interest. In addition, the District has projected ongoing increased expenses in operations and maintenance, energy administration and capital replacement costs. In Fiscal Year 2019-20, approximately 3,300 low pressure sodium (LPS) lights were converted to light emitting diodes (LEDs). As a result, $1,727,398.00 was appropriated on January 15, 2019, from the Lighting District's uncommitted fund balance of approximately $5.45 million for this project. Beginning last fiscal year, $250,000.00 will be requested each year over a five-year period to replace aging signalized intersections. At the end of the five-year period, it is estimated the District's uncommitted fund balance will be approximately $3.4 million. Each fiscal year, the capital improvement project fund commitments will be re-evaluated to ensure funding is available for unanticipated and ongoing maintenance and repair projects. The City Council's approved Fiscal Year 2020-21 Engineer's Report is on file in the Office of the City Clerk, 13325 Civic Center Drive and the Department of Public Works, 14467 Lake Poway Road, Poway, California. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Revenue generated from Lighting District assessments is $696,781.00, with general tax contributions of $472,107.00 and interest in an estimated amount of $100,000.00. General Fund contributions are in the amount of $130,055.00. Public Notification: A Notice of Public Hearing was published in the San Diego Union Tribune on Friday, July 24, 2020. Pursuant to SB 1977, Section 50078.6, all public notification requirements have been met. No responses have been received regarding the proposed assessments at the time this report was written. Attachments: A. Resolution 2 of 5 August 4, 2020, Item #14
Reviewed/ Approved By: ~Mu& ~ Wendy lef;terman Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney App roved By: City Manager August 4, 2020, Item #14
RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ESTABLISHING ASSESSMENTS FOR POWAY LIGHTING DISTRICT TO BE COLLECTED ON THE SAN DIEGO COUNTY PROPERTY TAX ROLL FOR FISCAL YEAR 2020-21 WHEREAS, the City Council of the City of Poway desires to have Lighting District assessments collected on the San Diego County Property Tax Roll; WHEREAS pursuant to the provisions of City of Poway Resolution No. 00-035 (Policies for Poway City Lighting District) and Assessment Law being the "Landscape and Lighting Act of 1972" (being Part 2 of Division 15 of the California Streets and Highways Code), applicable provisions of "Proposition 218" (being Article XIII C of the California Constitution), and provisions of the "Proposition 218 Omnibus Implementation Act" (being California Senate Bill 919), and in accordance with the Resolution of Intention, being City of Poway Resolution No. 20-045 adopted by the City Council of the City of Poway, County of San Diego, State of California, in connection with the proceedings for Poway Lighting District, the Assessment Engineer to the City of Poway has submitted an Engineer's Report for the District as required by California Streets and Highways Code, Section 22565; WHEREAS, on June 16, 2020, at a regular meeting of the Poway City Council, the amounts to be collected have been set forth in a public Engineer's Report; WHEREAS, on August 4, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to this matter; and WHEREAS, this action is authorized by the laws of the State of California. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The Assessment Rates for three (3) zones are as follows: Zone A: Zone B: Zone C: $15.00 per benefit unit $ 3. 75 per benefit unit $13.58 per benefit unit SECTION 2: The sum of assessments to be collected on the Fiscal Year 2020-21 San Diego County Property Tax Roll to provide for costs of administering, operating and maintaining the Poway Lighting District are as follows: Zone A: Zone B: Zone C: $332,508.12 $ 13,662.66 $350,610.48 SECTION 3: Under Assessment Law, the City of Poway's General Benefit Contribution has been calculated as $130,055.00. 4of5 ATTACHMENT A August 4, 2020, Item #14
Resolution No. 20-Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 4th day of August 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 5 of 5 August 4, 2020, Item #14
CLOSED SESSION:
15. Conference with Legal Counsel
Existing Litigation (Gov. Code § 54956.9(a))
Name of Case: City of Poway v. Rothbart, San Diego Superior Court
Case No. 37-2016-00033532-CU-OR-CTL
CLOSED SESSION:
16. Conference with Legal Counsel
Existing Litigation (Gov. Code § 54956.9(a))
Name of Case: Hayes v. City of Poway (United States District Court,
Southern District of California) Case No. 20-cv-0799