Loading...
09-01-20 Agenda PacketAG EN DA Poway City Council Council Chamber I 73325 Civic Center Drive I Poway, CA I 92064 September 1, 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 September 1, 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 IVlayor· Caylin Frank Deputy IVlayor· Dave Grosch Council member Barry Leonard Councilmember· John Mullin Councilmember· 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 on line. 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 21, 2020 Regular City Council Meeting Minutes 2.Resolution to Continue the Existence of a Local Emergency within the City of Poway Due to the Novel Coronavirus (COVID-19) Global Pandemic 3.Resolution Amending the City's Local Conflict of Interest Code 4.City's Investment Report as of June 30, 2020 5.Approval of Agreement with Singh Group Inc. for Dead Animal Disposal Services; RFP No. 20-022 6.Award of Contract to Savant Solutions for Managed Detection & Response (MDR) Security Services Provider; RFP No. 21-005 ORDINANCES FOR INTRODUCTION: None. ORDINANCES FOR ADOPTION: None. P BLIC HEARIN S: 7.Minor Conditional Use Permit 19-005: A Request to Keep Two Existing Seatainers and Add a ThirdSeatainer for the North Park Produce Market located at 12342 Poway Road 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: JOHN MULLIN 8. Affordable Housing Project Recommended Action: It is recommended that Council direct staff to prepare a Request for Proposals from the producers of affordable housing to suggest a project with the following guidelines: • The proposal may be for any of the three housing sites; and • The proposal should include a mix of market and income segments with approximately half of the units designed for developmentally disabled adults and the remaining targeted for veterans. 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) AD!OURNMENT State of California County of San Diego ) ) 55. ) 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 August 25, 2020 at 5:00 p.m. Said meeting to be held at 7:00 p.m., September 1, 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. ~(~ Carrie Gallagher, CMC, Interim City Clerk AGENDA REPORT CityofPoway DATE: TO: FROM: September 1, 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 21, 2020 Regular City Council Meeting Minutes Summary: The City Council Meeting Minutes submitted hereto for approval are: • July 21, 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 21, 2020 Regular City Council Meeting Minutes. Public Notification: None. Attachments: A. July 21, 2020 Regular City Council Meeting Minutes Reviewed/ Approved By: We~ Kaserman Assistant City Manager 1 of 6 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager September 1, 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 21, 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, Barry Leonard, Dave Grosch, Caylin Frank, Steve Vaus STAFF MEMBERS PRESENT City Manager Chris Hazeltine; Assistant City Manager Wendy Kaserman; City Attorney Alan Fenstermacher; Interim City Clerk Carrie Gallagher; Development Services Director Bob Manis; Finance Director Aaron Beanan; Human Resources and Risk Management Director Jodene Dunphy; Public Works Director Eric Heidemann; Fire Chief Jon Canavan (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 Deputy Mayor Frank led the Pledge of Allegiance. MOMENT OF SILENCE Mayor Vaus led a moment of silence. At this time, Mayor Vaus announced that Public Hearing Items 5 through 11 would be continued to the Regular City Council Meeting of August 4, 2020. PUBLIC COMMENT Karen and Jorge Sanchez, via email correspondence, expressed opposition to Poway Unified School District (PUSD) owning and maintaining the Poway Center for the Performing Arts (PCPA). 2 of6 September 1, 2020, Item #1 City of Poway -Minutes -July 21, 2020 Kathleen Lippitt, via email correspondence, requested Council consider a smoke-free outdoor dining policy. Jana Johnson, via teleconference, spoke regarding the Poway Center for the Performing Arts (PCPA) and requested a public workshop be held. Becky Rapp, via teleconference, requested Council support for SB 793 that would ban the sale of flavored tobacco products in California. Toby Batley, via teleconference, spoke in opposition to Poway Unified School District (PUSD) owning and operating the Poway Center for the Performing Arts (PCPA). Janet Lettang, via teleconference, spoke regarding the Poway Center for the Performing Arts (PCPA) and requested a public workshop be held. Yuri Bohlen, via teleconference, spoke regarding the Poway Center for the Performing Arts (PCPA) and supported Council holding a public workshop. CONSENT CALENDAR Motioned by Councilmember Mullin, seconded by Deputy Mayor Frank to approve Consent Calendar Items 1 through 4. 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 16, 2020 Regular City Council Meeting Minutes 2. Adoption of Resolution No. 20-060 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. Award of Contract to Parron Hall for the Mickey Cafagna Community Center Office Furniture Vendor; RFP No. 20-021 4. Award of Contract to Tri-Group Construction and Development, Inc. for the 2019-20 Corrugated Metal Pipe Annual Repair/Replace Project; Bid No. 20-012 ORDINANCES FOR INTRODUCTION None. ORDINANCES FOR ADOPTION None. 3 of6 September 1, 2020, Item #1 City of Poway -Minutes -July 21, 2020 PUBLIC HEARINGS Items 5 through 11 were removed from the agenda and continued to the August 4, 2020 Regular City Council Meeting. 5. 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 6. 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 7. Resolution Establishing Assessments for Po111ay Landscape Maintenance District 86 2 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020 21 8. Resolution Establishing Assessments for Poi.e.<ay Landscape Maintenance District 86 3 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020 21 9. 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 10. Resolution Establishing Assessments for Poi.vay Landscape Maintenance District 19 1 to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020 21 11. Resolution Establishing Assessments for Poway Lighting District to be Collected on the San Diego County Property Tax Roll for Fiscal Year 2020 21 STAFF REPORTS 12. Resolution Adopting the Authorization to Submit an Application for Community Development Block Grant Funds -Coronavirus (CDBG-CV) to Fund Jewish Family Services Senior Food Distribution Programs Assistant City Manager Wendy Kaserman presented the report and explained that the City is eligible to receive grant funding in the amount of $91,479.09 through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Ms. Kaserman explained that the funds will be used to expand Jewish Family Services (JFS) home-delivered meal programs to seniors in Poway. She added that the City anticipates being able to provide approximately 9,629 individual meals to Poway seniors through JFS's food distribution programs. Ms. Kaserman explained that funds must be appropriated and expended by the City and thereafter, the City will seek reimbursement from the County after submitting proof of expenditures. Ms. Kaserman concluded that following approval of the City's application, staff will work collaboratively with the Poway Senior Center to promote the programs and get more seniors signed up to receive home-delivered meals. Liz Papineau, representing the Poway Senior Center, via email correspondence, expressed support of the use of CDBG-CV funds for the Foodmobile and Congregate meal program. Liz Papineau, representing the Poway Senior Center, via teleconference, expressed their continued support for staff's recommendation. 4of6 September 1, 2020, Item #1 City of Poway -Minutes -July 21, 2020 Council discussion ensued in support of using CDBG-CV funds to provide meals to the senior community of Poway. Motioned by MayorVaus, seconded by Councilmember Mullin to adopt Resolution No. 20-061 entitled "A Resolution of the City Council of the City of Poway, California, Authorizing the Submission of Application for Fiscal Year 2019-2020 Community Development Block Grant Coronavirus Funds (CBDG-CV)" and appropriate $91,479.09 from the City's General Fund Balance to the CBDG-CV Fund. Motion carried unanimously. WORKSHOPS None. COUNCIL-INITIATED ITEMS None. COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 -(G.C. 53232(d)) Councilmember Grosch gave a brief update regarding the Regional Solid Waste Association's continued efforts to reduce organic waste. CITY MANAGER ITEMS: At the request of Council, City Manager Chris Hazeltine asked City Engineer Melody Rocco for an update on the Mickey Cafagna Community Center project. Ms. Rocco reported that the framing of the multi-purpose block building is near complete and the classroom block building framing has begun. She added that the project is currently on schedule and within the project budget. City Manager Chris Hazeltine provided an update regarding the Poway Center for the Performing Arts (PCPA) and explained that per Council direction at the November 2019 City Council meeting, the City entered discussions with PUSD to potentially acquire and manage the PCPA. He further explained that per Council direction, all discussions regarding acquisition of the PCPA had to include access for community user groups and Poway OnStage. Mr. Hazeltine added that the COVID-19 pandemic has delayed discussions with the District, however, the City had recently been made aware that PUSD is planning community engagement opportunities to share their ideas and thoughts about why acquisition and management of PCPA makes sense for PUSD and its students. He concluded that following PUSD's community engagement, staff envisions an opportunity for the City to hold a workshop and share the results of PUSD's outreach. Mayor Vaus announced the creation of an ad-hoc committee comprised of Councilmember Leonard and Councilmember Grosch formed to meet with community members to discuss their ideas for how the City could potentially keep the PCPA. CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) None. 5 of6 September 1, 2020, Item #1 City of Poway -Minutes -July 21, 2020 ADJOURNMENT The meeting adjourned at 7:34 p.m. 6 of6 Carrie Gallagher, CMC Interim City Clerk City of Poway, California September 1, 2020, Item #1 September 1, 2020, Item #2DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway September 1, 2020 Honorable Mayor and Mem~s of the City Council Jon M. Canavan, Fire Chief lZ!} 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 COVID-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. COVI D-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 COVI D-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, July 21, and August 4, 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. 1 of 6 September 1, 2020, Item #2Environmental Review: This action is not subject to CEQA review. Fiscal Impact: As of August 10, 2020, City costs to respond to COVID-19 are estimated at $540,144. The total fiscal impact is unknown at this time. Per the City Council adopted General Fund Reserve policy, the City maintains a General Fund Reserve of 45 percent of the budgeted annual General Fund operating expenditures, or $20,961,853 as of June 30, 2019. Within that 45 percent, $13,974,863 is set aside for Extreme Events/Public Safety. Based upon the City's reserve policy, there are adequate reserves to cover the costs to respond to this health emergency. Further, staff believes some of the costs are recoverable under State and Federal Disaster programs. Amounts recovered under these programs will be used to replenish the General Fund reserve. Pursuant to the reserve policy, staff will return with a plan to replenish any General Fund reserves not replenished under a State or Federal Disaster program. Staff will recommend applicable budget adjustments prior to the completion of the current fiscal year. In addition to using reserves to respond to COVI D-19, on April 16, 2020, the City Council approved $2,000,000 to fund the Poway Emergency Assistance Recovery Loan (PEARL) program for small businesses. The PEARL program's goal is to offer financial assistance to small businesses located in Poway by complementing existing state and federal loan programs and to provide a financial bridge to businesses to survive the current emergency. The PEARL program funding of $2,000,000 represents approximately 14 percent of the Extreme Events/Public Safety reserve discussed above and provides loans of up to $50,000 to eligible business. As of August 11, 2020, staff has received 78 applications requesting $2,812,165 in loans. Based on staff's review, 35 loans totaling $1,385,326 have been approved. Staff has requested additional information from seven applicants in order to determine their eligibility for the program. Twenty-three loan requests were denied, and 13 businesses have chosen to withdraw their applications. The reasons cited for withdrawing an application has varied from businesses having received funding from other sources, businesses are doing better after re-opening, and others that felt the application process was too burdensome or complicated. One loan of $50,000 for a medical provider has been repaid. The reserve fund will be replenished from the repayment of PEARL loans over a three-year period following the end of the local COVID-19 emergency. This period falls within the General Fund Reserve Policy's direction to fully replenish reserves within five years of use. Public Notification: None. Attachments: A. Resolution B. Proclamation of Local Emergency 2 of 6 September 1, 2020, Item #2Reviewed/ Approved By: vJ;n Kaserman Assistant City Manager 3 of6 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager September 1, 2020, Item #2RESOLUTION NO. 20-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 WHEREAS, the Novel Coronavirus (COVID-19) global pandemic in the City of Poway, commencing on or about January 24, 2020 that creates a threat to public health and safety; WHEREAS, Government Code section 8630 and Poway Municipal Code (PMC) Section 2.12.060 empower the City Manager, acting as the Director of Emergency Services, to proclaim the existence of a local emergency when the City is affected by a public calamity, and the City Council is not in session; WHEREAS, on March 13, 2020, the City Manager, acting pursuant to Government Code section 8630 and PMC section 2.12.060, proclaimed the existence of a local emergency based on conditions of extreme peril to the health and safety of persons caused by the Novel Coronavirus (COVID-19) global pandemic; WHEREAS, on March 18, 2020, the City Council, acting pursuant to Government Code section 8630 and PMC section 2.12.065, ratified the existence of a local emergency within seven (7) days of a Proclamation of Local Emergency by the City Manager; WHEREAS, the City Council, acting pursuant to PMC section 2.12.065, approved extending the emergency declaration during regularly scheduled meetings on April 7, April 21, May 5, May 19, June 2, June 16, July 7, July 21, and August 4, 2020; WHEREAS, Public Contract Code Section 20168 provides that the City Council may pass by four-fifths (4/5) vote, a resolution declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property; WHEREAS, upon adoption of such resolution, the City Manager may expend any sum required in the emergency and report the same to the City Council in accordance with Public Contract Code Section 22050; WHEREAS, if such expenditure is ordered, the City Council shall review the emergency action at each regular meeting, to determine if there is a need to continue the action or if the Proclamation of Local Emergency may be terminated; and WHEREAS, such the Novel Coronavirus (COVID-19) global pandemic constitute an emergency within the terms of Public Contract Code Sections 20168 and 22050 which requires that the City Manager be able to act quickly and without complying with the notice and bidding procedures of the Public Contract Code to safeguard life, health, or property. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway hereby finds and declares: SECTION 1: An emergency continues to exist within the City as the result of the Novel Coronavirus (COVID-19) global pandemic; and 4of6 ATTACHMENT A September 1, 2020, Item #2Resolution No. 20-Page 2 (a) The continuing threat of the Novel Coronavirus (COVID-19) global pandemic requires that the City be able to expend public money in order to safeguard life, health, or property; (b) The City Manager, as the City's Personnel Officer, is authorized to take actions necessary to alter employee leave policies and ensure a safe and healthy workforce; (c) The City Manager is authorized to safeguard life, health, or property without complying with notice or bidding procedures; and ( d) Once such expenditure is made, the City Manager shall report the conditions to the City Council at each regular meeting, at which time the City Council shall either continue the emergency action or declare the emergency ended. SECTION 2: This Proclamation of Local Emergency and all subsequent resolutions in connection herewith shall require a four-fifths (4/5) vote of the City Council. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 1st day of September, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 5 of 6 September 1, 2020, Item #2PROCLAMATION OF LOCAL EMERGENCY WHEREAS, section 2.12.060 of the Poway Municipal Code empowers the Director of Emergency Services to proclaim the existence or threatened existence of a local emergency when the City is affected or likely to be affected by a public calamity and the City Council is not in session; WHEREAS, the City Manager, as Director of Emergency Services of the City of Poway, does hereby find that conditions of extreme peril to the safety of persons and property have arisen within the City of Poway, caused by the Novel Coronavirus (COVID-19) commencing on January 24, 2020; WHEREAS, that the City Council of the City of Poway is not in session and cannot immediately be called into session; and WHEREAS, this Proclamation of Local Emergency will be ratified by the City Council within seven days of being issued. NOW, THEREFORE, IT IS HEREBY PROCLAIMED by the Director of Emergency Services for the City of Poway, that a local emergency now exists throughout the City and that said local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council; IT IS FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency the powers, functions, and duties of the emergency organization of this City shall be those prescribed by state law, ordinances, and resolutions of this City, and by the City of Poway Emergency Plan; and IT IS FURTHER PROCLAIMED AND ORDERED that a copy of this Proclamation of Local Emergency be forwarded to the State Director of the Governor's Office of Emergency Services with a request that; 1. The State Director find the Proclamation of Local Emergency acceptable in accordance with provisions of the Natural Disaster Assistance Act; and 2. The State Director forward this Proclamation, and request for a State Proclamation and Presidential Declaration of Emergency, to the Governor of California for consideration and action. PASSED AND ADOPTED by the Director of Emergency Services for the City of Poway this 13th day of March 2020. Chr~ Director of Emergency Services 6 of6 ATTACHMENT B DATE: TO: FROM: SUBJECT: Summary: AGENDA RE PO RT City of Poway September 1, 2020 Honorable Mayor and Members of the City Council Carrie Gallagher, Interim City Clerk (858) 668-4535 or cgallagher@poway.org Resolution Amending the City's Local Conflict of Interest Code CITY COUNCIL The Political Reform Act requires every local government agency to adopt and promulgate a Local Conflict of Interest Code to provide for the filing of Statement of Economic Interests Form 700 by designating employees of the City. In accordance with Government Code section 87306.5, at the June 2, 2020 City Council meeting, Council directed staff to review the City's Conflict of Interest Code for possible amendments to reflect any added, changed or deleted positions since the last Local Conflict of Interest Code was adopted on November 7, 2018. The attached Resolution amends Exhibit A of the City's Conflict of Interest Code to address personnel changes. Recommended Action: It is recommended that the City Council adopt the Resolution amending the City's Conflict of Interest Code in accordance with Government Code Sections 87300 through 87314. Discussion: The City's Local Conflict of Interest Code (Code) adopts the standardized Fair Political Practices Commission's (FPPC) Conflict of Interest Code and any future amendments promulgated by the California Code of Regulations, Title 2, Section 18730. The Code designates positions required to file a Statement of Economic Interests, also known as Form 700, and assigns disclosure categories to those positions specifying the types of interests to be reported to help determine if any disqualifications exists in making or participating in making decisions on behalf of the City which may have an influence on their financial interests. The Political Reform Act requires local government agencies to review its Local Conflict of Interest Code every even-numbered year to ensure that it is accurate and current. In accordance with Government Code section 87306.5, at the June 2, 2020 City Council meeting, Council directed staff to review the City's Conflict of Interest Code for possible amendments to reflect any added, changed or deleted positions since the last Conflict of Interest Code adoption. 1 of 10 September 1, 2020, Item #3 City staff reviewed the City's current Conflict of Interest Code and determined that due to reorganization resulting in personnel changes, the list of designated positions must be updated. Exhibit A of the attached resolution represents the list of "designated employees" that are required to file Statement of Economic Interests Form 700. The proposed amendments reflect changes to position titles, positions that no longer exist, and the addition of new positions that meet the definition of a "designated employee" since the adoption of the last Local Conflict of Interest Code on November 7, 2018. The Political Reform Act defines a "designated employee" as an officer, employee or consultant whose position entails the making or participating in the making of governmental decisions that may foreseeably have a material effect on any financial interest. Exhibit B of the attached resolution defines the various categories of financial interests that must be disclosed and are assigned to a particular "designated employee" based upon their respective job duties. There are no proposed changes to these categories. The revised exhibits make up the appendix to the City's Local Conflict of Interest Code and must be adopted by resolution by the code reviewing body. The City Council serves as the code reviewing body for the City of Poway's Local Conflict of Interest Code. A strike-out version of the updated Conflict of Interest Code is provided for review as Attachment B. It should be noted that positions listed in Government Code Section 87200 (i.e. Mayor, City Councilmembers, City Manager, City Attorney and City Treasurer) are not considered "designated employees." These positions are identified and required to file Form 700 pursuant to Government Code Sections 87200 through 87210 with the Fair Political Practices Commission. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: None. Public Notification: None. Attachments: A. Resolution B. Strikeout version of Conflict of Interest Code Reviewed/ Approved By: Assistant City Manager 2 of 10 Reviewed By: Alan Fenstermacher City Attorney City Manager September 1, 2020, Item #3 RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, ADOPTING AN AMENDED CONFLICT OF INTEREST CODE UPDATING DESIGNATED EMPLOYEES AND OFFICERS AND REPEALING RESOLUTION NO. 18-067 WHEREAS, the Political Reform Act (Government Code section 81000, et seq.) requires state and local government agencies to adopt and promulgate conflict of interest codes designating employees and what financial interests must be disclosed by those employees, and prohibiting the participation by such employees in decisions in which they have a financial interest; WHEREAS, the Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730) that contains the terms of a standard conflict of interest code, which can be incorporated by reference in an agency's code. After public notice and hearing, the standard code may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act; WHEREAS, the City Council has heretofore adopted, as the Conflict of Interest Code of the City of Poway (the "City Code"), the model conflict of interest code set forth in California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission; WHEREAS, the Appendix to the City Code attached hereto as "Exhibit A" (in which officials and employees are designated) and "Exhibit B" (in which disclosure categories are set forth), which may be modified by City Council from time to time, and all of which together does constitute the Conflict of Interest Code for the City of Poway; WHEREAS, individuals holding designated positions shall file their statements of economic interests with the City Clerk, which will make the statements available for public inspection and reproduction (Gov. Code Sec. 81008). Upon receipt of the statements for the Mayor, Councilmembers, City Manager, City Treasurer and the City Attorney, the City Clerk shall make and retain copies and forward the originals to the Fair Political Practices Commission. All other statements will be retained by the City Clerk; WHEREAS, the City Council has designated those positions that are subject to the reporting requirements of the Code; WHEREAS, the Political Reform Act requires the City to review its Conflict of Interest Code biennially to determine if it is accurate or, alternatively that the code must be amended; and WHEREAS, it is necessary to amend the City's Conflict of Interest Code to reflect the deletion and addition of certain City positions. NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of Poway as follows: SECTION 1: That the above recitals are true and correct. 3 of 10 ATTACHMENT A September 1, 2020, Item #3 SECTION 2: That the standard FPPC Conflict of Interest Code, as set forth in Title 2 California Code of Regulations Section 18730, and as may be amended from time to time by the Fair Political Practices Commission, is incorporated by reference and constitutes the Conflict of Interest Code for the City of Poway. SECTION 3: That the list of designated positions subject to the requirements of the Conflict of Interest Code are amended as set forth in "Exhibit A" and their respective disclosure categories are set forth in "Exhibit B". SECTION 4: That the City of Poway has conducted the 2020 Biennial review of its Conflict of Interest Code, as required by the Political Reform Act, and as a result of the biennial review determined the need for an amended Conflict of Interest Code as presented in this Resolution. SECTION 5: That Resolution No. 18-067 is hereby repealed. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 1st day of September, 2020 by the following vote, to wit: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 4 of 10 September 1, 2020, Item #3 EXHIBIT A APPENDIX TO THE CITY OF POWAY CONFLICT OF INTEREST CODE: DESIGNATED POSITIONS City Employees Position/Title Disclosure Category Accountant 1, 2 Assistant City Manager 1, 2 Assistant Director of Public Works -Operations 1, 2 Assistant Director of Public Works -Utilities 1, 2 Assistant Engineer 2, 3, 4, 5 Assistant Planner 2, 3, 4, 5 Associate Civil Engineer 2,3,4, 5 Associate Planner 2,3,4, 5 Budget Administrator 1, 2 City Clerk 1, 2 City Engineer 1, 2 City Planner 2,3, 4, 5 Code Compliance Officer 2,3, 4, 5 Community Outreach Coordinator 2,3,4, 6 Community Services Manager 2,3,4, 6 Construction Maintenance Supervisor 2,3,4,6 Contract Specialist/Inspector 2, 3, 4, 6 Customer Services Supervisor 3, 6 Deputy City Attorney 1, 2 Deputy Fire Chief 2,3, 4, 5 Director of Community Services 1, 2 Director of Development Services 1, 2 Director of Finance / Treasurer Unlimited Disclosure Director of Human Resources & Risk Management 1, 2 Director of Public Works 1, 2 Economic Development Administrator 1, 2 Facilities Maintenance and Special Districts Supervisor 2,3, 4, 6 Finance Manager 1, 2 Fire Battalion Chief 2,3, 4, 5 Fire Chief 1, 2 Fire Safety Inspector 2,3, 4, 5 Fleet Maintenance Supervisor 3, 6 GIS Analyst 4, 6 Information Technology Analyst 3, 4, 6 Information Technology Manager 3,4, 6 Management Analyst 2,3,4, 6 Network and Computer Systems Administrator 3,4, 6 Parks Maintenance Supervisor 4,6 5 of 10 September 1, 2020, Item #3 City Employees Position/Title Disclosure Category Principal Civil Engineer -Utilities 2, 3, 4, 5 Public Works Operations Manager 2, 3, 4, 6 Recreation Supervisor 3, 6 Senior Accountant 1, 2 Senior Civil Engineer 2, 3, 4, 5 Senior Code Compliance Officer 2, 3, 4, 5 Senior Fire Safety Inspector 2, 3, 4, 5 Senior Human Resources Analyst 2, 3, 4, 6 Senior Management Analyst 2, 3, 4, 6 Senior Planner 2,3, 4, 5 Special Projects Engineer 2, 3, 4, 5 Utilities Administrator 2, 3, 4, 6 Utility Systems Supervisor 2, 3, 4, 6 Warehouse Associate 3, 5 Wastewater Utilities Supervisor 2, 3, 4, 6 Water Treatment Plant Supervisor 2, 3, 4, 6 Water Utilities Distribution Supervisor 2, 3, 4, 6 Boards, Committees, & Commissions Disclosure Category Budget Review Committee 1, 2 Parks & Recreation Advisory Committee 1, 2 *Poway Housing Authority Unlimited disclosure *Public Financing Authority Unlimited disclosure *Successor Agency to the Poway Redevelopment Agency Unlimited disclosure Mayor and Councilmembers hold the positions on the Authorities and Agency marked by * Consultants Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in this Code subject to the following limitation: The City Manager or his or her designee, may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that are limited in scope and thus not required to fully comply with the disclosure requirements described in this Section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as the Conflict of Interest Code. 6 of 10 September 1, 2020, Item #3 Statutory Filers; Officials Who Manage Public Investments It has been determined that the positions listed below are either officials specifically required to file statements of economic interests or are officials who manage public investments, as that term is defined in 2 California Code of Regulations, Section 18701 (b). These officials will file a Statement of Economic Interests (Form 700, all schedules) without any limitation as to disclosure categories (GC § 87200 et seq.): General Provisions Mayor Members of the City Council City Manager City Attorney Treasurer All designated employees required to submit an initial Statement of Financial Interest shall file the original with the City Clerk within thirty (30) days after the effective date of this Resolution. Initial statements shall cover the period of the twelve ( 12) months prior to the date of the adoption of this Conflict of Interest Code. All individuals appointed, promoted, or transferred to a designated position shall file statements within thirty (30) days of assuming office. These "assuming office" statements cover the period of the twelve (12) months prior to the date of assuming office. Annual statements shall be filed with the City Clerk by April 1 of each year by all designated employees. Such statements shall cover the period of the preceding calendar year. Every designated employee who leaves office shall file, within thirty (30) days of leaving office, a statement disclosing financial interests held or received at any time during the period between the closing date of the last statement required to be filed and the date of leaving office. Any employee serving in dual roles may file a combined statement by reporting according to their broadest range of disclosure. Failure to file the required statement in a timely fashion may result in the imposition of administrative, criminal, and civil sanctions as provided in Government Code sections 81000-91014. 7 of 10 September 1, 2020, Item #3 EXHIBIT 8 When a designated employee is required to disclose investments, business positions and sources of income, he or she need only disclose investments in business entities and sources of income, which do business in the jurisdiction, plan to do business in the jurisdiction or have done business in the jurisdiction within the past two years. In addition to other activities, a business entity is doing business within the jurisdiction if it owns real property within the jurisdiction. When a designated employee is required to disclose interests in real property, he or she need only disclose real property other than his principal residence, which is located in whole or in part within or not more than two miles outside the boundaries of the jurisdiction or within two miles of any land owned or used by the local government agency. Designated employees shall disclose their financial interests pursuant to the appropriate disclosure category as indicated in Exhibit "A". DISCLOSURE CATEGORIES 1. All investments, business positions and sources of income including gifts, loans and travel payments. 2. All interests in real property within the jurisdiction of the City. 3. All investments, business positions and sources of income including gifts, loans and travel payments subject to the regulatory, permit or licensing authority of the Designated Employee's department, unit or division. 4. All investments, business positions and sources of income including gifts, loans and travel payments that are engaged in land development, construction or the acquisition or sale of real property within the jurisdiction of the City. 5. All investments, business positions and sources of income including gifts, loans and travel payments that provide services, supplies, materials, machinery, vehicles or equipment of a type purchased or leased by the City. 6. All investments, business positions and sources of income including gifts, loans and travel payments that provide services, supplies, materials, machinery or equipment of a type purchased or leased by the Designated Employee's department, unit or division. 8 of 10 September 1, 2020, Item #3 EXHIBIT A APPENDIX TO THE CITY OF POWAY CONFLICT OF INTEREST CODE: DESIGNATED POSITIONS City Employees Position/Title Disclosure Category Accountant 1, 2 Assistant City Manager 1, 2 Assistant Director of Public Works -Operations 1, 2 Assistant Director of Public Works -Utilities 1, 2 Assistant Engineer 2, 3,4, 5 Assistant Planner 2, 3,4, 5 Associate Civil Engineer 2, 3,4, 5 Associate Planner 2, 3,4, 5 Budget Administrator 1, 2 City Clerk 1, 2 City Engineer 1, 2 City Planner 2, 3,4, 5 Code Compliance Officer 2, 3,4, 5 Community Outreach Coordinator 2, 3,4, 6 Community Services Manager 2, 3,4, 6 Construction Maintenance Supervisor 2, 3,4, 6 Contract Specialist/Inspector 2, 3,4, 6 Customer Services Supervisor 3, 6 Deputy City Attorney 1, 2 Deputy Fire Chief 2, 3,4, 5 Director of Community Services 1, 2 Director of Development Services 1, 2 Director of Finance/ Treasurer Unlimited Disclosure Director of Human Resources & Risk Management 1, 2 Director of Public Works 1, 2 QiFesteF ef Safety SePJises ~ Economic Development Administrator 1, 2 Facilities Maintenance and Special Districts Supervisor 2, 3,4, 6 Finance Manager 1, 2 Fire Battalion Chief 2, 3,4, 5 Fire Chief 1, 2 Fire Safety Inspector 2, 3,4, 5 Fleet Maintenance Supervisor 3, 6 GIS Analyst 4,6 Information Technology Analyst 3,4, 6 Information Technology Manager 3,4, 6 Management Analyst 2, 3,4, 6 Network and Computer Systems Administrator 3,4, 6 9 of 10 ATTACHMENT B September 1, 2020, Item #3 City Employees Position/Title Disclosure Category Parks Maintenance Supervisor 4, 6 Principal Civil Engineer -Utilities 2, 3,4, 5 Public Works Operations Manager 2, 3,4, 6 Recreation Supervisor 3, 6 Senior Accountant 1, 2 Senior Civil Engineer 2, 3,4, 5 Senior Code Compliance Officer 2, 3,4, 5 Senior Fire Safety Inspector 2, 3,4, 5 Senior Human Resources Analyst 2, 3,4, 6 Senior Management Analyst 2, 3,4,6 Senior Planner 2, 3, 4, 5 SeAieF ResFeatieA Sl:Jf3eFViseF ~ Special Projects Engineer 2, 3,4, 5 Utilities Administrator 2, 3,4,6 Utility Systems Supervisor 2, 3, 4, 6 Warehouse Associate 3, 5 Wastewater Utilities Supervisor 2, 3, 4, 6 Water Treatment Plant Supervisor 2, 3,4, 6 Water Utilities Distribution Supervisor 2, 3,4, 6 Boards, Committees, & Commissions Disclosure Category Budget Review Committee 1, 2 Parks & Recreation Advisory Committee 1, 2 *Poway Housing Authority Unlimited disclosure *Public Financing Authority Unlimited disclosure *Successor Agency to the Poway Redevelopment Agency Unlimited disclosure Mayor and Counci/members hold the positions on the Authorities and Agency marked by * Consultants Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in this Code subject to the following limitation: The City Manager or his or her designee, may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that are limited in scope and thus not required to fully comply with the disclosure requirements described in this Section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as the Conflict of Interest Code. 10 of 10 September 1, 2020, Item #3 September 1, 2020, Item #4~, AGENDA REPORT CityofPoway ·~, T\\I l~ CITY cou NCI L DATE: TO: FROM: CONTACT: SUBJECT: Summary: September 1, 2020 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance~ Aaron Beanan, Director of Finance (858) 668-4411 or abeanan@poway.org City's Investment Report as of June 30, 2020 Quarterly reports of investments are required to be presented to the City Council per state code and the City's Investment Policy. For your information, attached is an investment portfolio report as of June 30, 2020. Recommended Action: It is recommended that the City Council accept and file the attached report. Discussion: Pursuant to Government Code Sec. 53646(b)(1) and the City's Investment Policy, the Finance Director (i.e., Treasurer) renders a quarterly investment report to the City Council concerning the investment portfolio's earnings and performance results. In accordance with the Investment Policy, the quarterly report includes information such as the investment type, issuer, date of maturity, par value, amount invested, current market value, and the source of the market value information. The City is in compliance with its adopted investment policy, and the City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of June 30, 2020, was $126,787,204. It consisted of the following: Investment Portfolio Total Deposits at CalTRUST $ 23, 188, 190 Deposits at the Local Agency Investment Fund (LAIF) 27,201,429 U. S. Treasury Notes 12,882,811 U.S. Instrumentalities 42,142,444 Corporate Notes 21,372,330 Fair Value of Investment Portfolio as of June 30, 2020 $126,787,204 1 of 27 September 1, 2020, Item #4The attached portfolio report (attachment B) and investment report (attachment C) were prepared by the City's investment manager, Insight Investment, with input from the City's Finance Department. The portfolio report includes all investments while the investment report includes only those investments managed by Insight Investment. All City funds, including the General Fund, Water Fund, Wastewater Fund and others -except those identified in Attachment D, are pooled and invested, with earned interest allocated quarterly based on the average daily cash balance in each fund. The funds on deposit at LAIF and CalTRUST earn interest at variable rates. The interest rate for the month ending June 30, 2020, is estimated at 1.22% for LAIF, 1.01 % for the CalTRUST short-term fund, and 1.30% for the CalTRUST medium-term fund. The values of fixed income securities, as legal investment tools authorized under California government codes, are closely tied with interest rates. As interest rates go up, the market values of the securities go down, and vice versa. This is known as interest rate risk or market risk. A portfolio's duration is a common measurement of interest rate risk. Due to anticipated actions of the Federal Reserve, the Finance Department, in conjunction with Insight Investment, has been increasing the duration of the externally managed investment portfolio since July 2019 by investing in longer-term investments (e.g. treasuries and corporate notes). This strategy will help preserve the City's interest earning ability in an environment of declining interest rates as well as help increase market value. In response to the COVID-19 pandemic, the Federal Reserve lowered the target federal funds rate by 50 basis points on March 3, 2020 and 100 basis points on March 16, 2020. The target federal funds rate is currently between 0.00% and 0.25%. The Federal Reserve affirmed this target at their July 29, 2020 meeting. For fixed income securities, the difference between amortized cost and fair value is considered an unrealized gain or loss. A realized loss is when the principal of the security is redeemed before its maturity date at a fair value lower than its amortized cost value. The amortized cost value of the externally managed investment portfolio is $74,093,862; the fair value is $76,397,585 for an unrealized gain of $2,303,723 or 3.11 % of the total amortized cost value. The source of the fair value information for the U.S. Treasury Notes, the U.S. Instrumentalities, Corporate Notes, and Municipal Bonds is Interactive Data Corporation. Also included with this report are recaps of the City's cash and investments held by fiscal agents, non-managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agent, U.S. Bank, atJune 30, 2020, was $616,755. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $78,168 at June 30, 2020. The City's cash on hand at June 30, 2020, totaled $1,674,721. The June 30, 2020 balance of the City's Library Trust Fund was $260,992. Through the Fiscal Year 2019-20 period ending June 30, 2020, no transfer of interest earnings has been made to the General Fund. At the close of Fiscal Year 2019-20, 90% of the Library Trust Fund's interest earnings will be transferred to the General Fund to partially offset library operating expenses. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). 2 of27 September 1, 2020, Item #4Fiscal Impact: The externally managed investment portfolio earned $140,514 interest during June 2020, as well as $155,791 interest during May 2020, and $146,190 during April 2020. Fees for investment services during this period totaled $9,855. Public Notification: None. Attachments: A. Investment Statistics B. June 2020 Investment Portfolio Report prepared by Insight Investment C. Investment Report Prepared by Insight Investment D. City of Poway Investments and Cash with Fiscal Agent; General, Payroll, and Petty Cash Report at June 30, 2020 Reviewed/Approved By: Assistant City Manager 3 of27 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager September 1, 2020, Item #4City of Poway Investment Statistics Separately Managed Investment Pools Fair Value: CalTRUST Short-Term Deposits CalTRUST Medium-Term Deposits Deposits at the Local Agency Investment Fund (LAIF) Total Fair Value Weighted Average Yield Effective Average Duration in days Weighted Average Maturity in days Externally Managed Investment Pools Fair Value: U. S. Treasury Notes U. S. Instrumentalities Corporate Bonds Total Fair Value Amortized Cost Value: U. S. Treasury Notes U. S. Instrumentalities Corporate Bonds Total Amortized Cost Value Unrealized Gain (Loss) Accrued Interest Earned Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Total Fair Value of Portfolio Assets Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Glossary of Yield Terminology June March 2019 2020 11,136,533 11,288,360 11,293,865 11,594,980 29,261,212 14,123,941 51,691,610 37,007,281 2.49% 1.77% 1 1 1 1 11,035,860 12,905,734 40,004,279 45,618,725 21,426,732 21,736,595 . 72,466,871 80,261,054 10,999,625 12,427,608 39,893,064 44,532,828 21,421,640 21,662,466 72,314,329 78,622,902 152,542 1,638,152 116,235 159,432 2.01% 1.97% · 1.00 2.10 1.05 2.25 124,158,481 117,268,335 2.21% 1.91% 0.58 1.44 0.61 1.54 Coupon: A bond's coupon is the periodic interest payment made to the holder of the fixed income security during the life of the bond. Coupon payments can be made monthly, quarterly, or annually. Book Yield: The Book Yield is that rate of return that will make the present value of the future cash flows of a fixed income security equal to the price paid for the security. This assumes that the security will be held to its maturity. Current Yield: Annual rate of return on an investment expressed as a percentage. Current Yield of a fixed income security is the annualized earnings (coupon) divided by the bond's market value as of the valuation date. One Year Total Yield: The One Year Total Yield or One Year Return represents the portfolio's percentage change over a year's time, factoring in interest payments, changes in market value and reinvestment of distributions. June 2020 11,423,336 11,764,854 27,201,429 50,389,619 1.19% 1 1 12,882,811 42,142,444 21,372,330 76,397,585 12,426,569 41,000,597 20,666,696 74,093,862 2,303,723 140,514 1.94% 2.03 2.17 126,787,204 1.64% 1.22 1.31 Weighted Average Yield: The total yield on a bond portfolio divided by the number of bonds contained in it, weighted for the size of each bond so that the yield of large holdings does not drown out the calculation of yields on small holdings. Yield to Maturity: The Yield to Maturity (YTM) or Market Yield to Maturity of a fixed income security is that rate of interest that will make the present value of the future cash flows equal to the market value as of the valuation date, assuming the bond is held to maturity. 4 of 27 ATTACHMENT A September 1, 2020, Item #4City of Poway Monthly Investment Portfolio Report June 30, 2020 Separately Managed Investment Pools % Return LAIF $ 27,201,429 54% 1.22% CalTrust -Short $ 11,423,336 23% 1.01% CalTrust -Medium $ 11,764,854 23% 1.30% Total Internally Managed $ 50,389,619 40% Weighted Average Yield 1.19% Days Effective Average Duration -Internal 1 Weighted Average Maturity -Internal 1 Externally Managed Assets % Return Treasury Securities $ 12,882,811 17% 1.88% Instrumentality Securities $ 42,142,444 55% 1.92% Corporate Notes $ 21,372,330 28% 2.03% Total Externally Managed $ 76,397,585 60% Weighted Average Yield 1.94% Years Effective Average Duration -External 2.03 Weighted Average Final Maturity -External 2.17 Total Portfolio Assets % Return LAIF $ CalTrust -Short $ CalTrust -Medium $ Treasury Securities $ Instrumentality Securities $ Corporate Notes $ Total Portfolio Assets $ Weighted Average Yield Effective Average Duration -Total Weighted Average Maturity -Total Portfolio Change Beginning Balance Ending Balance Assets values shown at Market 5 of27 27,201,429 21% 1.22% 11,423,336 9% 1.01% 11,764,854 9% 1.30% 12,882,811 10% 1.88% 42,142,444 33% 1.92% 21,372,330 17% 2.03% 126,787,204 1.64% Years 1.22 1.31 $ $ CalTrust -Short, 23% Corporate 21% Instrumentality Securities 42% 117,788,082 126,787,204 ATTACHMENT B Treasury Securities, 55% CalTrust -Short CalTrust -12% Medium Treasury Securities 13% September 1, 2020, Item #4~ )> n :c s:: m z .... n September 1, 2020, Item #4" Contents 0 ..... N " Fixed income market review 3 Activity and performance summary 4 Recap of securities held 6 Maturity distribution of securities held 7 Securities held 8 GASB 40-Deposit and investment risk disclosure 14 Securities sold and matured 18 Transaction report 19 Additional information 20 September 1, 2020, Item #400 0 .... N ...... FIXED INCOME MARKET REVIEW As of June 30, 2020 Chart 1: Unemployment rate remains at post-Great Depression highs 16 1-+ 12 10 8 6 -l 2 \fay-16 \lay-l7 \fay-lS \fay-19 --Unemplo~·meru race (~c_l Source: Bloomberg Finance LP, June 5, 2020. Chart 2: Retail sales rebound 20 15 10 \Ia_v-15 \Iay-16 \Iay-18 --Recail sales gro\Yl.h race ("c .> Source: Bloomberg Finance LP, June 16, 2020. \Jay-19 \Iay-20 CITY OF POWAY Economic Indicators and Monetary Policy Economic data, particularly relating to the consumer, generally came in better-than- expected. Monthly payrolls data increased by 2.5 million, beating expectations by around $1 O million -roughly the equivalent of New York State's workforce. Nonetheless, this still left the unemployment rate at post-Great Depression highs of 13.3%. May retail sales outperformed expectations at 17.7%, the biggest monthly gain since 1992, after recording the largest monthly decline in April. However, the recovery in retail sales is only about halfway to its pre-COVID February level. A resurgence of new COVID-19 infections, particularly in southern and western states such as Arizona, Texas and Florida, led to concerns that healthcare systems could become overstretched. Some reopening initiatives may be paused or even rolled back. The Federal Reserve (Fed) released its first 'dot-plot' this year, after March's release was abandoned due to the uncertainty at the height of the crisis. Federal Open Market Committee members collectively forecasted no change to interest rates until 2022. The Fed also committed to maintaining its Treasury and agency mortgage backed security (MBS) purchases "at least at the current pace" in coming months, which is a rate of at least $80 billion of Treasuries and $50 billion of MBS per month. This will likely expand the Fed's balance sheet to $8.5-$1 Otrn by the end of 2020 -from $7.2trn currently and $4.2trn pre-crisis. The Fed also stated that it was considering a 'yield curve control' policy, which would involve the Fed explicitly targeting 2-year to 5-year Treasury yield levels rather than just setting the overnight interest rate. Chairman Powell stated yield curve control remains an "open question" and that discussions would continue at further meetings. Interest Rate Summary Yields did not change materially over the month. At the end of June, the 3-month US Treasury bill yielded 0.15%, the 6-month US Treasury bill yielded 0.19%, the 2-year US Treasury note yielded 0.15%, the 5-year US Treasury note yielded 0.29% and the 10- year US Treasury note yielded 0.66%. 3 September 1, 2020, Item #4ACTIVITY AND PERFORMANCE SUMMARY \0 0 For the period June 1, 2020 -June 30, 2020 ~ Amortized Cost Basis Activity Summary -.J Opening balance Participant contributions Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfollo transfers Realized gain (loss) Change in accruals from security movement Total amortization expense Total 01D/MKT acaetlon Income Return of capital Closing balance Ending fair value Unrealized gain (loss) 0.44 191,893.06 (1, 191 ,893.50) Comparative Rates gf Return{%} * Twelve * Six month trailing month trailing Fed Funds 1.29 0.32 Overnight Repo 1.32 0.33 Merrill Lynch 3m US Treas Bill 1.16 0.29 Merrill Lynch 6m US Treas Bill 1.14 0.29 ML 1 Year US Treasury Note 1.17 0.31 ML 2 Year US Treasury Note 1.15 0.32 ML 5 Year US Treasury Note 1.19 0.38 * rates reflected are cumulative 75,118,370.97 191,893.50 0.00 (1 , 191 ,893.50) 0.00 0.00 (28,706.43) 4,197.59 0.00 74,093,862.13 76,397,584.76 2,303,722.63 * One month 0.01 0.01 0.01 0.01 0.01 0.02 0.03 Detail gf Amortized Cgst Basis Return Interest Accretion Realized earned {amortization) gain {loss) Corporate Bonds 47,188.83 (13,223.23) 0.00 Government Agencies 73,886.72 (10,943.20) 0.00 Government Bonds 19,438.05 (342.41) 0.00 Total 140,513.60 (24,508.84) 0.00 Summary of Amortized Cgst Basis Return for the Period Interest earned Accretion (amortization) Realized gain (loss) on sales Total income on portfolio Average daily amortized cost Period return (%) YTD return (%) Weighted average final maturity in days CITY OF POWAY Total income 33,965.60 62,943.52 19,095.64 116,004.76 Total portfolio 140,513.60 (24,508.84) 0.00 116,004.76 74,805,983.48 0.15 0.97 792 4 September 1, 2020, Item #4...a. 0 ACTIVITY AND PERFORMANCE SUMMARY For the period June 1, 2020 -June 30, 2020 ~ Fair Value Basis Activity Summary N -..J Opening balance 77,444,628.25 Participant contributions Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfollo transfers Unrealized gain (loss) on security movements Change in accruals from security movement Return of capital Change in fair value for the period Ending fair value 0.44 191,893.06 (1, 191,893.50) Comparative Rates of Return(%) * Twelve * Six month trailing month trailing Fed Funds 1.29 0.32 Overnight Repo 1.32 0.33 ICE BofAML 3 Months UST-BILL 1.63 0.60 ICE ML 6m US Treas Bill 2.11 0.93 ICE ML 1 Year US Treasury Note 2.86 1.69 ICE ML US Treasury 1-3 4.07 2.94 ICE ML US Treasury 1-5 5.25 4.10 * rates reflected are cumulative 191,893.50 0.00 (1, 191,893.50) 0.00 0.00 0.00 (47,043.49) 76,397,584.76 * One month 0.01 0.01 0.01 O.Q2 0.04 0.03 0.07 Detail of Fair Value Basis Return Interest Change in earned fair value Corporate Bonds 47,188.83 33,082.21 Government Agencies 73,886.72 (67,998.37) Government Bonds 19,438.05 (12,127.33) Total 140,513.60 (47,043.49) Summary of Fair Value Basis Return for the Period Interest earned Change in fair value Total income on portfolio Average daily total value* Period return(%) YTD return(%) Weighted average final maturity in days * Total value equals market value and accrued interest CITY OF POWAY Total income 80,271 .04 5,888.35 7,310.72 93,470.11 Total portfolio 140,513.60 (47,043.49) 93,470.11 77,537,704.47 0.12 3.41 792 5 September 1, 2020, Item #4RECAP OF SECURITIES HELD As of June 30, 2020 --0 Historical ..... N cost " Corporate Bonds 20,751,756.00 Government Agencies 41,095,994.96 Government Bonds 12,423,788.53 Amortized Fair value Unrealized Weighted cost gain (loss) average final maturity (days) 20,666,695.86 21,372,329.78 705,633.92 960 41,000,597.20 42,142,443.70 1,141,846.50 694 12,426,569.07 12,882,811.28 456,242.21 832 Portfolio diversification (%) ■ Corporate Bonds ■ GovernmentAgencies ■ Government Bonds Total Percent of portfolio 27.94 55.33 16.73 27.94 55.33 16.73 100.00 CITY OF POWAY Weighted average effective duration (years) 2.44 1.77 2.22 6 September 1, 2020, Item #4~ "' 0 ...... "' .... MATURITY DISTRIBUTION OF SECURITIES HELD As of June 30, 2020 Maturity Under 90 days 90 to 179 days 180 days to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years +-' U') 0 u ~ u ·;;:: E U') :i: o1>~ C!)<::) '\C!) o<IJ-' ,o v~ C!)<::) Maturity distribution o1>~ ~ flt(:-, ~~ ,~e; ~e; ~(lj ,o o'l, °., ,o ~ ,~ 'l, o1>~ 'b<::) "' CITY OF POWAY Historic cost Percent 6,488,501.25 8.74 5,972,611 .00 8.04 5,006,755.00 6.74 16,399,093.94 22.08 19,762,727.60 26.61 18,633,930.70 25.09 2,007,920.00 2.70 0.00 0.00 74,271,539.49 100.00 ~~ ~~ ~~ ~(lj ~(lj ~(lj ~ <-:, ~<-:, ,o ,o ":> ~ ~(lj 0 7 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 -w g_cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port "" purchased (amortization) value (loss) interest cost Corporate Bonds 053015AD5 2.250 09/15/2020 1,000,000.00 1,002,630.00 1,000,120.03 1,002,206.64 2,086.61 0.00 1,812.50 6,562.50 1.35 AUTOMATIC DAT A 08/15/2020 0.00 (80.02) (1,724.02) PROCESSNG 2.25% 155EP2020 (CALLABLE 15AUG20) 191216BT6 1.875 10/27/2020 2,000,000.00 1,987,240.00 1,998,556.17 2,009,914.38 11,358.21 0.00 3,020.83 6,562.50 2.68 COCA-COLA CO/THE 1.875% 0.00 370.21 (2,915.54) 27OCT2020 68389XBB0 2.500 05/15/2022 1,500,000.00 1,542,555.00 1,538,543.92 1,550,968.11 12,424.19 0.00 3,020.83 4,687.50 2.08 ORACLE CORP 2.5% 03/15/2022 0.00 (1,880.20) (1,257.60) 15MA Y2022 (CALLABLE 15MAR22) 89233P7F7 2.625 01/10/2023 2,000,000.00 2,001,380.00 2,000,954.98 2,094,257.34 93,302.36 0.00 4,229.17 24,791.67 2.69 TOYOTA MOTOR CREDIT CORP 0.00 (31.48) 16,380.16 2.625% 1 0JAN2023 084670BR8 2.750 03/15/2023 1,000,000.00 1,021,370.00 1,015,555.73 1,059,039.30 43,483.57 0.00 2,215.27 8,020.83 1.38 BERKSHIRE HATHAWAY INC 01/15/2023 0.00 (510.02) (5,609.63) 2.75% 15MAR2023 (CALLABLE 15JAN23) 931142DH3 2.550 04/11/2023 1,000,000.00 1,015,270.00 1,011,102.13 1,054,986.33 43,884.20 0.00 2,054.16 5,595.83 1.37 WALMART INC 2.55% 01/11/2023 0.00 (365.60) 1,418.17 11 APR2023 (CALLABLE 11JAN23) 037833AK6 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,005,979.45 1,057,070.00 51,090.55 0.00 1,933.33 3,800.00 1.36 APPLE INC 2.4% 03MAY2023 0.00 (175.35) (1,348.50) 166764BK5 2.566 05/16/2023 1,500,000.00 1,552,215.00 1,546,371.10 1,582,040.39 35,669.29 0.00 3,100.58 4,704.33 2.09 CHEVRON CORP 2.566% 03/16/2023 0.00 (1 ,425.34) (4,032.07) 16MA Y2023 (CALLABLE 16MAR23) 69353RFL7 3.500 06/08/2023 1,900,000.00 1,995,436.00 1,972,931.88 2,053,595.66 80,663.78 33,250.00 5,356.95 4,063.89 2.69 PNC BANK NA 3.5% 08JUN2023 05/09/2023 0.00 (2,126.29) 4,644.55 (CALLABLE 09MA Y23) 8 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 ...a. .i::i. g_cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port -.,J purchased (amortization) value (loss) interest cost Corporate Bonds 94988J5R4 3.550 08/14/2023 1,000,000.00 1,050,350.00 1,040,862.69 1,084,978.65 44,115.96 0.00 2,859.72 13,411.11 1.41 WELLS FARGO BANK NA 3.55% 07/14/2023 0.00 (1,120.54) 5,805.03 14AUG2023 (CALLABLE 14JUL23) 68389XBL8 2.400 09/15/2023 1,000,000.00 1,008,750.00 1,006,589.58 1,045,650.20 39,060.62 0.00 1,933.33 7,000.00 1.36 ORACLE CORP 2.4% 07/15/2023 0.00 (180.54) (8,837.16) 15SEP2023(CALLABLE 15JUL23) 17325FAS7 3.650 01/23/2024 1,400,000.00 1,484,224.00 1,474,058.02 1,535,855.71 61,797.69 0.00 4,116.39 22,285.28 2.00 CITIBANK NA 3.65% 12/23/2023 0.00 (1,773.13) 8,569.99 23JAN2024 (CALLABLE 23DEC23) 91159HHV5 3.375 02/05/2024 1,900,000.00 1,999,636.00 1,981,897.04 2,076,696.01 94,798.97 0.00 5,165.63 25,828.13 2.69 US BANCORP 3.375% 01/05/2024 0.00 (1,942.22) 6,353.18 05FEB2024(CALLABLE 05JAN24) 17275RAN2 3.625 03/04/2024 1,000,000.00 1,070,370.00 1,062,279.33 1,113,935.44 51,656.11 0.00 2,920.14 11,680.56 1.44 CISCO SYSTEMS INC 3.625% 0.00 (1,411.16) (3,091.16) 04MAR2024 02665WCZ2 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,010,893.81 1,051,135.62 40,241.81 12,000.00 1,933.33 200.00 1.36 AMERICAN HONDA FINANCE 0.00 (227.43) 20,326.81 2.4% 27JUN2024 Total Corporate Bonds 20,200,000.00 20,751,756.00 20,666,695.86 21,372,329.78 705,633.92 45,250.00 45,672.16 149,194.13 27.94 0.00 (12,879.11) 34,682.21 Government Agencies 3133EHYM9 1.500 09/14/2020 2,000,000.00 1,993,720.00 1,999,567.70 2,006,590.94 7,023.24 0.00 2,416.66 8,833.33 2.68 FEDERAL FARM CREDIT BANK 0.00 175.25 (1,999.84) 1 .5% 14SEP2020 3130AEWA4 2.625 10/01/2020 2,000,000.00 1,990,580.00 1,998,761.24 2,012,239.52 13,478.28 0.00 4,229.17 12,979.17 2.68 FEDERAL HOME LOAN BANK 0.00 421.99 (4,059.48) 2.625% 01 OCT2020 9 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 ...a. u, 2tCusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port -.J purchased (amortization) value (loss) interest cost Government Agencies 3133EGM51 1.650 12/01/2020 1,000,000.00 996,971.00 999,681.71 1,006,080.35 6,398.64 8,250.00 1,329.17 1,329.17 1.34 FEDERAL FARM CREDIT BANK 0.00 63.23 (926.64) 1.65% 01 DEC2020 3130A3UQ5 1.875 12/11/2020 1,000,000.00 997,820.00 999,679.47 1,007,688.54 8,009.07 9,375.00 1,510.41 989.58 1.34 FEDERAL HOME LOAN BANK 0.00 59.73 (1,037.79) 1.875% 11 DEC2020 3133EKAJ5 2.500 02/11/2021 1,000,000.00 999,265.00 999,773.77 1,014,512.40 14,738.63 0.00 2,013.89 9,652.78 1.35 FEDERAL FARM CREDIT BANK 0.00 30.71 (1,675.59) 2.5% 11 FEB2021 3133EJJD2 2.540 04/05/2021 1,000,000.00 1,004,390.00 1,001,653.77 1,017,817.64 16,163.87 0.00 2,046.11 5,997.22 1.35 FEDERAL FARM CREDIT BANK 0.00 (180.41) (1,990.15) 2.54% 05APR2021 313379RB7 1.875 06/11/2021 1,000,000.00 985,600.00 994,055.21 1,015,050.23 20,995.02 9,375.00 1,510.41 989.58 1.33 FEDERAL HOME LOAN BANK 0.00 523.01 (2,066.01) 1.875% 11JUN2021 3135G0U35 2.750 06/22/2021 2,000,000.00 2,017,500.00 2,007,680.80 2,049,703.12 42,022.32 27,500.00 4,430.55 1,222.22 2.72 FANNIE MAE 2.75% 22JUN2021 0.00 (654.61) (3,923.06) 3133EKCB0 2.500 07/01/2021 1,000,000.00 999,030.00 999,585.60 1,022,897.32 23,311 .72 0.00 2,013.89 12,430.56 1.35 FEDERAL FARM CREDIT BANK 0.00 34.44 (1,144.36) 2.5% 01JUL2021 3137EAEC9 1.125 08/12/2021 1,000,000.00 991,273.00 994,053.81 1,010,635.89 16,582.08 0.00 906.25 4,312.50 1.33 FREDDIE MAC 1.125% 0.00 443.75 (431.35) 12AUG2021 3135G0Q89 1.375 10/07/2021 1,900,000.00 1,890,631.10 1,893,361.88 1,928,463.12 35,101 .24 0.00 2,104.51 6,023.26 2.55 FANNIE MAE 1.375% 0.00 435.76 (1,721 .91) 07OCT2021 3130AABG2 1.875 11/29/2021 1,000,000.00 990,090.00 994,772.86 1,024,268.02 29,495.16 0.00 1,510.41 1,614.58 1.33 FEDERAL HOME LOAN BANK 0.00 308.08 (1,453.01) 1.875% 29NOV2021 10 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 -0\ ~Cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % I\JDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port ..... purchased (amortization) value (loss) interest cost Government Agencies 3135G0U92 2.625 01/11/2022 1,500,000.00 1,513,185.00 1,507,474.21 1,555,553.18 48,078.97 0.00 3,171 .88 18,484.38 2.04 FANNIE MAE 2.625% 0.00 (420.51) (2,969.14) 11JAN2022 3137EADB2 2.375 01/13/2022 1,000,000.00 1,018,089.00 1,012,154.58 1,033,337.07 21,182.49 0.00 1,913.19 11,017.36 1.37 FREDDIE MAC 2.375% 0.00 (659.38) (1,827.04) 13JAN2022 313378CR0 2.250 03/11/2022 2,000,000.00 2,004,000.00 2,002,422.20 2,066,119.02 63,696.82 0.00 3,625.00 13,625.00 2.70 FEDERAL HOME LOAN BANK 0.00 (118.93) (4,943.48) 2.25% 11 MAR2022 3135G0V59 2.250 04/12/2022 2,900,000.00 2,943,346.30 2,934,483.67 3,006,044.18 71,560.51 0.00 5,256.25 14,137.50 3.96 FANNIE MAE 2.25% 0.00 (1,611.39) (4,969.85) 12APR2022 3133EA5E4 1 . 930 10/18/2022 2,000,000.00 2,015,820.00 2,013,098.96 2,075,849.14 62,750.18 0.00 3,109.44 7,720.00 2.71 FEDERAL FARM CREDIT BANK 0.00 (474.60) (3,707.26) 1 . 93% 18OCT2022 31331K3A6 2. 710 12/13/2022 1,000,000.00 1,028,921.06 1,020,544.89 1,059,270.99 38,726.10 13,550.00 2,183.05 1,279.72 1.39 FEDERAL FARM CREDIT BANK 0.00 (698.01) (2,663.22) 2. 71 % 13DEC2022 31331KAF7 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,969,033.87 2,028,311 .62 59,277.75 0.00 6,095.24 34,049.25 2.70 FEDERAL FARM CREDIT BANK 0.00 (3,890.00) (7,090.55) 4.09% 18JAN2023 3133EKKT2 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,012,525.78 1,050,722.16 38,196.38 0.00 1,812.50 8,875.00 1.37 FEDERAL FARM CREDIT BANK 0.00 (400.61) (2,352.03) 2.25% 08FEB2023 3133EJFK0 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,026,059.70 1,062,922.85 36,863.15 0.00 2,134.72 8,244.44 1.39 FEDERAL FARM CREDIT BANK 0.00 (807.64) (2,771.21) 2.65% 08MAR2023 3137EAEN5 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,051,321.09 2,149,729.32 98,408.23 27,500.00 4,430.56 1,680.56 2.78 FREDDIE MAC 2.75% 0.00 {1,440.26) {2,897.68) 19JUN2023 11 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 -..... g.cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port ..... purchased (amortization) value (loss) interest cost Government Agencies 3134GU3T5 1.800 07/21/2023 1,500,000.00 1,501,995.00 1,500,290.94 1,501,020.36 729.42 0.00 2,175.00 11,925.00 2.02 FREDDIE MAC 1.8% 21JUL2023 07/21/2020 0.00 (415.62) (1,440.20) (CALLABLE 21JUL20) 3135G0U43 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,029,950.47 1,083,711.31 53,760.84 0.00 2,315.97 8,625.00 1.40 FANNIE MAE 2.875% 0.00 (779.96) (1,423.46) 12SEP2023 3133EKVB9 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,998,172.53 2,100,307.70 102,135.17 0.00 2,996.66 7,543.33 2.69 FEDERAL FARM CREDIT BANK 0.00 46.18 (2,061.42) 1.86% 17OCT2023 3130A3VC5 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,011,512.61 1,063,575.30 52,062.69 11,250.00 1,812.50 1,375.00 1.37 FEDERAL HOME LOAN BANK 0.00 (278.98) (2,615.05) 2.25% 08DEC2023 3135G0V34 2.500 02/05/2024 1,000,000.00 1,028,090.00 1,022,303.22 1,078,547.91 56,244.69 0.00 2,013.88 10,069.44 1.38 FANNIE MAE 2.5% 05FEB2024 0.00 (516.68) (2,074.01) 3135G0V75 1.750 07/02/2024 2,000 I 000. 00 2,007,920.00 2,006,620.66 2,111,474.50 104,853.84 0.00 2,819.45 17,305.56 2.70 FANNIE MAE 1.75% 02JUL2024 0.00 (137.74) 236.42 Total Government Agencies 40,650,000.00 41 ,095, 994. 96 41,000,597.20 42,142,443.70 1, 141,846.50 106,800.00 73,886.72 242,330.49 55.33 0.00 (10,943.20) (67,998.37) Government Bonds 9128282Q2 1.500 08/15/2020 2,000,000.00 1,990,156.25 1,999,556.07 2,003,260.50 3,704.43 0.00 2,472.53 11,208.79 2.68 USA TREASURY 1 .5% 0.00 289.53 (2,381.24) 15AUG2020 912828F21 2.125 09/30/2021 1,000,000.00 991,015.63 995,659.77 1,024,218.75 28,558.98 0.00 1,741.80 5,283.47 1.33 USA TREASURY 2.125% 0.00 284.92 (1,562.50) 30SEP2021 9128285F3 2.875 10/15/2021 1,500,000.00 1,515,878.91 1,507,872.74 1,552,089.84 44,217.10 0.00 3,534.84 8,954.92 2.04 USA TREASURY 2.875% 0.00 (500.38) (3,339.84) 15OCT2021 12 September 1, 2020, Item #4SECURITIES HELD CITY OF POWAY As of June 30, 2020 -00 ~Cusip/ Coupon Maturity/ Par value or Historical cost/ Amortized cost/ Fair value/ Unrealized Interest Interest Total % NDescription Call date shares Accrued interest Accretion Change in fair gain received earned accrued Port ..... purchased (amortization) value (loss) interest cost Government Bonds 912828XW5 1.750 06/30/2022 1,000,000.00 998,515.63 999,026.42 1,031,484.38 32,457.96 8,750.00 1,442.31 0.00 1.34 USA TREASURY 1.75% 0.00 40.01 (1,250.00) 30JUN2022 912828L57 1.750 09/30/2022 1,000,000.00 999,417.41 999,596.56 1,035,429.69 35,833.13 0.00 1,434.42 4,351.09 1.35 USA TREASURY 1.75% 0.00 14.73 (1,171.87) 30SEP2022 9128282D1 1.375 08/31/2023 2,000,000.00 1,967,109.38 1,974,697.84 2,075,390.62 100,692.78 0.00 2,241.85 9,116.85 2.65 USA TREASURY 1 .375% 0.00 656.06 (312.50) 31AUG2023 912828U57 2. 125 11/30/2023 1,900,000.00 1,925,679.69 1,920,092.95 2,024,687.50 104,594.55 20,187.50 3,309.43 3,309.43 2.59 USA TREASURY 2.125% 0.00 (483.00) (1,484.38) 30NOV2023 912828X70 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,030,066.72 2,136,250.00 106,183.28 0.00 3,260.87 6,630.44 2.74 USATREASURY2%30APR2024 0.00 (644.28) (625.00) Total Government Bonds 12,400,000.00 12,423,788.53 12,426,569.07 12,882,811.28 456,242.21 28,937.50 19,438.05 48,854.99 16.73 0.00 (342.41) (12,127.33) 13 September 1, 2020, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of June 30, 2020 ..... \0 g_cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) -.J Federal Farm Credit Banks Funding Corp 3133EHYM9 FEDERAL FARM CREDIT 1.500 09/14/2020 AA+ Aaa 2,000,000.00 1,993,720.00 2.68 2,006,590.94 2.63 0.21 3133EGM51 FEDERAL FARM CREDIT 1.650 12/01/2020 AA+ Aaa 1,000,000.00 996,971 .00 1.34 1,006,080.35 1.32 0.42 3133EKAJ5 FEDERAL FARM CREDIT 2.500 02/11/2021 AA+ Aaa 1,000,000.00 999,265.00 1.35 1,014,512.40 1.33 0.61 3133EJJD2 FEDERAL FARM CREDIT 2.540 04/05/2021 AA+ Aaa 1,000,000.00 1,004,390.00 1.35 1,017,817.64 1.33 0.76 3133EKCB0 FEDERAL FARM CREDIT 2.500 07/01/2021 AA+ Aaa 1,000,000.00 999,030.00 1.35 1,022,897.32 1.34 0.98 3133EASE4 FEDERAL FARM CREDIT 1.930 10/18/2022 AA+ Aaa 2,000,000.00 2,015,820.00 2.71 2,075,849.14 2.72 2.25 31331K3A6 FEDERAL FARM CREDIT 2.710 12/13/2022 AA+ Aaa 1,000,000.00 1,028,921.06 1.39 1,059,270.99 1.39 2.39 31331KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.70 2,028,311.62 2.65 2.41 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.37 1,050,722.16 1.38 2.53 3133EJFK0 FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.39 1,062,922.85 1.39 2.59 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.69 2,100,307.70 2.75 3.20 Issuer total 14,850,000.00 15,094,485.56 20.32 15,445,283.11 20.22 1.77 United States Treasury Note/Bond 9128282Q2 USA TREASURY 1.5% 1.500 08/15/2020 AA+ Aaa 2,000,000.00 1,990, 156.25 2.68 2,003,260.50 2.62 0.13 912828F21 USA TREASURY 2.125% 2.125 09/30/2021 AA+ Aaa 1,000,000.00 991,015.63 1.33 1,024,218.75 1.34 1.23 9128285F3 USA TREASURY 2.875% 2.875 10/15/2021 AA+ Aaa 1,500,000.00 1,515,878.91 2.04 1,552,089.84 2.03 1.27 912828XW5 USA TREASURY 1.75% 1.750 06/30/2022 AA+ Aaa 1,000,000.00 998,515.63 1.34 1,031,484.38 1.35 1.97 912828L57 USA TREASURY 1.75% 1.750 09/30/2022 AA+ Aaa 1,000,000.00 999,417.41 1.35 1,035,429.69 1.36 2.21 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.65 2,075,390.62 2.72 3.10 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.59 2,024,687.50 2.65 3.31 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 2.74 2, 136,250.00 2.80 3.70 Issuer total 12,400,000.00 12,423,788.53 16.73 12,882,811.28 16.86 2.22 Federal National Mortgage Association 3135G0U35 FANNIE MAE 2.75% 2.750 06/22/2021 AA+ Aaa 2,000,000.00 2,017,500.00 2.72 2,049,703.12 2.68 0.97 14 September 1, 2020, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of June 30, 2020 N 0 ~Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares -...J cost hist cost value mkt value dur (yrs) Federal National Mortgage Association 3135GOQ89 FANNIE MAE 1.375% 1.375 10/07/2021 AA+ Aaa 1,900,000.00 1,890,631.10 2.55 1,928,463.12 2.52 1.26 3135GOU92 FANNIE MAE 2.625% 2.625 01/11/2022 AA+ Aaa 1,500,000.00 1,513,185.00 2.04 1,555,553.18 2.04 1.49 3135GOV59 FANNIE MAE 2.25% 2.250 04/12/2022 AA+ Aaa 2,900,000.00 2,943,346.30 3.96 3,006,044.18 3.93 1.74 3135GOU43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.40 1,083,711.31 1.42 3.06 3135GOV34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,000,000.00 1,028,090.00 1.38 1,078,547.91 1.41 3.43 3135GOV75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.70 2,111,474.50 2.76 3.85 Issuer total 12,300,000.00 12,439,722.40 16.75 12,813,497.32 16.77 2.10 Federal Home Loan Banks 3130AEWA4 FEDERAL HOME LOAN 2.625 10/01/2020 AA+ Aaa 2,000,000.00 1,990,580.00 2.68 2,012,239.52 2.63 0.25 3130A3UQ5 FEDERAL HOME LOAN 1.875 12/11/2020 AA+ Aaa 1,000,000.00 997,820.00 1.34 1,007,688.54 1.32 0.45 313379RB7 FEDERAL HOME LOAN 1.875 06/11/2021 AA+ Aaa 1,000,000.00 985,600.00 1.33 1,015,050.23 1.33 0.94 3130AABG2 FEDERAL HOME LOAN 1.875 11/29/2021 AA+ Aaa 1,000,000.00 990,090.00 1.33 1,024,268.02 1.34 1.40 313378CRO FEDERAL HOME LOAN 2.250 03/11/2022 AA+ Aaa 2,000,000.00 2,004,000.00 2.70 2,066, 119.02 2.70 1.66 3130A3VC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.37 1,063,575.30 1.39 3.32 Issuer total 8,000,000.00 7,982,690.00 10.75 8,188,940.63 10.72 1.25 Federal Home Loan Mortgage Corp 3137EAEC9 FREDDIE MAC 1.125% 1.125 08/12/2021 AA+ Aaa 1,000,000.00 991,273.00 1.33 1,010,635.89 1.32 1.11 3137EADB2 FREDDIE MAC 2.375% 2.375 01/13/2022 AA+ Aaa 1,000,000.00 1,018,089.00 1.37 1,033,337.07 1.35 1.50 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 2.78 2,149,729.32 2.81 2.87 3134GU3T5 FREDDIE MAC 1.8% 1.800 07/21/2023 07/21/2020 AA+ Aaa 1,500,000.00 1,501 ,995.00 2.02 1,501,020.36 1.96 0.80 Issuer total 5,500,000.00 5,579,097.00 7.51 5,694,722.64 7.45 1.75 Oracle Corp 68389XBBO ORACLE CORP 2.5% 2.500 05/15/2022 03/15/2022 A A3 1,500,000.00 1,542,555.00 2.08 1,550,968.11 2.03 1.68 15 September 1, 2020, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of June 30, 2020 N ~ g_cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares cost hist cost value mkt value dur (yrs) -.J Oracle Corp 68389XBL8 ORACLE CORP 2.4% 2.400 09/15/2023 07/15/2023 A A3 1,000,000.00 1,008,750.00 1.36 1,045,650.20 1.37 2.94 Issuer total 2,500,000.00 2,551,305.00 3.44 2,596,618.31 3.40 2.18 Toyota Motor Credit Corp 89233P7F7 TOYOTA MOTOR CREDIT 2.625 01/10/2023 A+ A1 2,000,000.00 2,001,380.00 2.69 2,094,257.34 2.74 2.43 Issuer total 2,000,000.00 2,001,380.00 2.69 2,094,257.34 2.74 2.43 US Bancorp 91159HHV5 US BANCORP 3.375% 3.375 02/05/2024 01/05/2024 A+ A1 1,900,000.00 1,999,636.00 2.69 2,076,696.01 2.72 3.31 Issuer total 1,900,000.00 1,999,636.00 2.69 2,076,696.01 2.72 3.31 PNC Bank NA 69353RFL7 PNC BANK NA 3.5% 3.500 06/08/2023 05/09/2023 A A2 1,900,000.00 1,995,436.00 2.69 2,053,595.66 2.69 2.74 Issuer total 1,900,000.00 1,995,436.00 2.69 2,053,595.66 2.69 2.74 Coca-Cola Co/The 191216BT6 COCA-COLA CO/THE 1.875 10/27/2020 A+ A1 2,000,000.00 1,987,240.00 2.68 2,009,914.38 2.63 0.33 Issuer total 2,000,000.00 1,987,240.00 2.68 2,009,914.38 2.63 0.33 Chevron Corp 166764BK5 CHEVRON CORP 2.566% 2.566 05/16/2023 03/16/2023 AA Aa2 1,500,000.00 1,552,215.00 2.09 1,582,040.39 2.07 2.64 Issuer total 1,500,000.00 1,552,215.00 2.09 1,582,040.39 2.07 2.64 Citibank NA 17325FAS7 CITIBANK NA 3.65% 3.650 01/23/2024 12/23/2023 A+ Aa3 1,400,000.00 1,484,224.00 2.00 1,535,855.71 2.01 3.25 Issuer total 1,400,000.00 1 ,484,224.00 2.00 1,535,855.71 2.01 3.25 16 September 1, 2020, Item #4GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of June 30, 2020 N N g.cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective N date rating rating shares ...... cost hist cost value mkt value dur (yrs) Cisco Systems Inc 17275RAN2 CISCO SYSTEMS INC 3.625 03/04/2024 AA-A1 1,000,000.00 1,070,370.00 1.44 1,113,935.44 1.46 3.45 Issuer total 1,000,000.00 1,070,370.00 1.44 1,113,935.44 1.46 3.45 Wells Fargo Bank NA 94988JSR4 WELLS FARGO BANK NA 3.550 08/14/2023 07/14/2023 A+ Aa2 1,000,000.00 1,050,350.00 1.41 1,084,978.65 1.42 2.87 Issuer total 1,000,000.00 1,050,350.00 1.41 1,084,978.65 1.42 2.87 Berkshire Hathaway Inc 084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 01/15/2023 AA Aa2 1,000,000.00 1,021,370.00 1.38 1,059,039.30 1.39 2.46 Issuer total 1,000,000.00 1,021 ,370.00 1.38 1,059,039.30 1.39 2.46 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aa1 1,000,000.00 1,007,920.00 1.36 1,057,070.00 1.38 2.75 Issuer total 1,000,000.00 1,007,920.00 1.36 1,057,070.00 1.38 2.75 Walmart Inc 931142DH3 WALMART INC 2.55% 2.550 04/11/2023 01/11/2023 AA Aa2 1,000,000.00 1,015,270.00 1.37 1,054,986.33 1.38 2.47 Issuer total 1,000,000.00 1,015,270.00 1.37 1,054,986.33 1.38 2.47 American Honda Finance Corp 02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A-A3 1,000,000.00 1,012,410.00 1.36 1,051,135.62 1.38 3.81 Issuer total 1,000,000.00 1,012,410.00 1.36 1,051,135.62 1.38 3.81 Automatic Data Processing Inc 05301 SADS AUTOMATIC DAT A 2.250 09/15/2020 08/15/2020 AA Aa3 1,000,000.00 1,002,630.00 1.35 1,002,206.64 1.31 0.13 Issuer total 1,000,000.00 1,002,630.00 1.35 1,002,206.64 1.31 0.13 17 September 1, 2020, Item #4N w SECURITIES SOLD AND MATURED For the period June 1, 2020 -June 30, 2020 g. Cusip/ Trade date Coupon Maturity/ Par value or NDescription/ Settle date Call date shares ...,.Broker Corporate Bonds 69353RES3 PNC BANK NA 2.6% 21 JUL2020 (CALLABLE 22JUN20) 06/22/2020 2.600 (1,000,000.00) 06/22/2020 Historical cost Amortized cost 1,016,010.00 at sale or maturity /Acer (amort) 1,000,000.00 (344.12) Total (Corporate Bonds) (1,000,000.00) 1,016,010.00 1 ,000,000.00 (344.12) Price Fair value at 0.00 sale or maturity / Chg.in fair value 1,000,000.00 (1 ,600.00) 1,000,000.00 (1,600.00) Realized gain (loss) 0.00 0.00 CITY OF POWAY Accrued interest sold Interest received 0.00 10,905.56 Interest earned 1,516.67 0.00 10,905.56 1,516.67 18 September 1, 2020, Item #4TRANSACTION REPORT CITY OF POWAY For the period June 1, 2020 -June 30, 2020 N .i:. ~Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total NSettle date shares gain(loss) " 05/31/2020 912828U57 Income Government Bonds USA TREASURY 2.125% 11/30/2023 1,900,000.00 0.00 0.00 20,187.50 20,187.50 05/31/2020 06/01/2020 3133EGM51 Income Government Agencies FEDERAL FARM CREDIT BANK 12/01/2020 1,000,000.00 0.00 0.00 8,250.00 8,250.00 06/01/2020 06/08/2020 3130A3VC5 Income Government Agencies FEDERAL HOME LOAN BANK 12/08/2023 1,000,000.00 0.00 0.00 11,250.00 11,250.00 06/08/2020 06/08/2020 69353RFL7 Income Corporate Bonds PNC BANK NA 3.5% 08JUN2023 06/08/2023 1,900,000.00 0.00 0.00 33,250.00 33,250.00 06/08/2020 06/11/2020 3130A3UQ5 Income Government Agencies FEDERAL HOME LOAN BANK 12/11/2020 1,000,000.00 0.00 0.00 9,375.00 9,375.00 06/11/2020 06/11/2020 313379RB7 Income Government Agencies FEDERAL HOME LOAN BANK 06/11/2021 1,000,000.00 0.00 0.00 9,375.00 9,375.00 06/11/2020 06/13/2020 31331 K3A6 Income Government Agencies FEDERAL FARM CREDIT BANK 12/13/2022 1,000,000.00 0.00 0.00 13,550.00 13,550.00 06/13/2020 06/19/2020 3137EAEN5 Income Government Agencies FREDDIE MAC 2.75% 06/19/2023 2,000,000.00 0.00 0.00 27,500.00 27,500.00 06/19/2020 06/22/2020 3135GOU35 Income Government Agencies FANNIE MAE 2.75% 22JUN2021 06/22/2021 2,000,000.00 0.00 0.00 27,500.00 27,500.00 06/22/2020 06/22/2020 69353RES3 Income Corporate Bonds PNC BANK NA 2.6% 21JUL2020 07/21/2020 1,000,000.00 0.00 0.00 10,905.56 10,905.56 06/22/2020 06/22/2020 69353RES3 Capital Change Corporate Bonds PNC BANK NA 2.6% 21JUL2020 07/21/2020 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 06/22/2020 06/29/2020 02665WCZ2 Income Corporate Bonds AMERICAN HONDA FINANCE 06/27/2024 1,000,000.00 0.00 0.00 12,000.00 12,000.00 06/29/2020 06/30/2020 912828XW5 Income Government Bonds USA TREASURY 1.75% 06/30/2022 1,000,000.00 0.00 0.00 8,750.00 8,750.00 06/30/2020 19 September 1, 2020, Item #4ADDITIONAL INFORMATION CITY OF POWAY As of June 30, 2020 N U1Past performance is not a guide to future performance. The value of investments and any income from them will fluctuate and is not guaranteed (this may partly be due to exchange rate changes) and investors may not get 0 back the amount invested. Transactions in foreign securities may be executed and settled in local markets. Performance comparisons will be affected by changes in interest rates. Investment returns fluctuate due to changes ~in market conditions. Investment involves risk, including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. The information contained herein is for .....iyour reference only and is being provided in response to your specific request and has been obtained from sources believed to be reliable; however, no representation is made regarding its accuracy or completeness. This document must not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or otherwise not permitted. This document should not be duplicated, amended, or forwarded to a third party without consent from Insight. This is a marketing document intended for professional clients only and should not be made available to or relied upon by retail clients Investment advisory services in North America are provided through two different SEC-registered investment advisers using the brand Insight Investment: Insight North America LLC (INA) and Insight Investment International Limited (IIIL). The North American investment advisers are associated with a broader group of global investment managers that also (individually and collectively) use the corporate brand Insight Investment and may be referred to as Insight, Insight Group or Insight Investment. INA is an investment adviser registered with the Securities and Exchange Commission (SEC), under the Investment Advisers Act of 1940, as amended. Registration with the SEC does not imply a certain level of skill or training. You may request, without charge, additional information about Insight. Moreover, specific information relating to Insights strategies, including investment advisory fees, may be obtained from INA's Form ADV Part 2A, which is available without charge upon request. Where indicated, performance numbers used in the analysis are gross returns. The performance reflects the reinvestment of all dividends and income. INA charges management fees on all portfolios managed and these fees will reduce the returns on the portfolios. For example, assume that $30 million is invested in an account with INA, and this account achieves a 5.0% annual return compounded monthly, gross of fees, for a period of five years. At the end of five years that account would have grown to $38,500,760 before the deduction of management fees. Assuming management fees of 0.25% per year are deducted monthly from the account, the value at the end of the five year period would be $38,022,447. Actual fees for new accounts are dependent on size and subject to negotiation. INA's investment advisory fees are discussed in Part 2A of its Form ADV. Unless otherwise stated, the source of information is Insight. Any forecasts or opinions are Insight's own at the date of this document (or as otherwise specified) and may change. Material in this publication is for general information only and is not advice, investment advice, or the recommendation of any purchase or sale of any security. Insight makes no implied or expressed recommendations concerning the manner in which an account should or would be handled, as appropriate investment strategies depend upon specific investment guidelines and objectives and should not be construed to be an assurance that any particular security in a strategy will remain in any fund, account, or strategy, or that a previously held security will not be repurchased. It should not be assumed that any of the security transactions or holdings referenced herein have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the past investment performance of the securities listed. Please compare the information provided in this statement to the information provided in the statement received from your Custodian. For trading activity the Clearing broker will be reflected. In certain cases the Clearing broker will differ from the Executing broker. In calculating ratings distributions and weighted average portfolio quality, Insight assigns U.S Treasury and U.S agency securities a quality rating based on the methodology used within the respective benchmark index. When Moody's, S&P and Fitch rate a security, Bank of America and Merrill Lynch indexes assign a simple weighted average statistic while Barclays indexes assign the median statistic. Insight assigns all other securities the lower of Moody's and S&P ratings. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison. You cannot invest directly in an index and the indices represented do not take into account trading commissions and/or other brokerage or custodial costs. The volatility of the indices may be materially different from that of the strategy. In addition, the strategy's holdings may differ substantially from the securities that comprise the indices shown. The BofA Merrill Lynch 3 Mo UST-Bill index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income. The BofA Merrill Lynch 6 Mo UST-Bill index measures the performance ofTreasury bills with time to maturity of less than 6 months. The Bof A Merrill Lynch Current 1-Year US Treasury Index is a one-security index comprised of the most recently issued 1-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 1-year note must be auctioned on or before the third business day before the last business day of the month. The BofA Merrill Lynch Current 3-Year US Treasury Index is a one-security index comprised of the most recently issued 3-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 3-year note must be auctioned on or before the third business day before the last business day of the month. The BofA Merrill Lynch current 5-Year us Treasury Index is a one-security index comprised of the most recently issued 5-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 5-year note must be auctioned on or before the third business day before the last business day of the month. The BofA Merrill Lynch 1-3 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years. The BofA Merrill Lynch 1-5 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than five years. 20 September 1, 2020, Item #4N °' ADDITIONAL INFORMATION As of June 30, 2020 CITY OF POWAY a1nsight does not provide tax or legal advice to its clients and all investors are strongly urged to consult their tax and legal advisors regarding any potential strategy or investment. N -..Jlnsight is a group of wholly owned subsidiaries ofThe Bank of New York Mellon Corporation. BNY Mellon is the corporate brand ofThe Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates and joint ventures of The Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction. Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations ofThe Bank of New York Mellon Corporation or any of its affiliates. The Bank of New York Corporation assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. © 2020 Insight Investment. All rights reserved. 21 September 1, 2020, Item #4N -.J 0 """ N -.J City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash June 2020 Investments & Cash with Fiscal A ents Settlement INVESTMENT DESCRIPTION Date 1st Am Gov't Obligations Money Mkt Fd 06/30/20 Average/Total Paying Agent or Uninvested Cash & DITs Total Investments and Cash with Fiscal Agent Non-ManaQed Investments INVESTMENT DESCRIPTION County Pool Wells-Fargo CD Average/Total General Pavroll & Pettv Cash General Cash (Union Bank) Payroll Cash (Union Bank) Emergency Cash (Union Bank) Grant Cash (Union Bank) Flexible Benefits Cash (Union Bank) Petty Cash Total Cash Settlement Date 06/30/20 08/05/20 -I Part I Yield to Days to % of Total Maturity Maturity Investment 0.01%1 1 I 100.00%1 I I I I I I I I I 0.01%1 11 100.00%1 Part II Yield to I Maturity Days to I Maturity % of Total I Investment 1.56%1 1 I 36.04%1 0.05%1 361 63.96%1 0.59%1 N/A I 100.00%1 Part Ill - Face Value $616,755.00 $616,755.00 Face Value I s28, 168.oo I s5o,ooo.oo I $78,168.00 I I Book Value $616,755.00 $616,755.00 $0.00 $616,755.00 Book Value I s28, 168.oo I $50,000.00 I $78, 168.00 1 Book Value $1,616,121.00 $20,000.00 $10,000.00 $0.00 $20,000.00 $8,600.00 $1,674,721.00 Market Value $616,755.00 $616,755.00 Market Value I s28,497.oo I s5o,ooo.oo I $78,497.oo I Unrealized Gain(Loss) so.oo 1 Unrealized I Gain(Loss) $329.oo I so.oo I $329.oo I I September 1, 2020, Item #5DATE: TO: FROM: CONTACT: SUBJECT: Summary: AG EN DA REPORT City of Poway September 1, 2020 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services J2,1!l-David De Vries, City Planner 1) (3 y (858) 668-4604 or ddevries@poway.org Darian Demerjian, Management Analyst \} \) (858) 668-4636 or ddemerjian@poway.org \ J CITY COUNCIL Approval of Agreement with Singh Group, Inc. for Dead Animal Disposal Services; RFP No. 20-022 The Dead Animal Disposal Services Agreement is an annual agreement used to perform dead animal disposal on City streets and right-of-way. D&D Services, Inc., was awarded the agreement in August 2019. In May 2020, staff received a cease of services letter from D&D Services, Inc. terminating their agreement with the City due to unaffordable lease terms for their disposal facility. A Request for Proposal (RFP) was posted in June 2020 for an extended standard agreement and staff is now seeking approval to enter into an agreement with Singh Group, Inc. In the interim DAR. Contractors is managing dead animal disposal services and their contract will expire September 8, 2020. Recommended Action: It is recommended that the City Council authorize the City Manager to enter into an agreement with Singh Group, Inc. for dead animal disposal services, effective September 9, 2020, for a period of one year with the ability to extend by one-year increments for up to three additional years. Discussion: In June 2020, the City sent out a Request for Proposal for as-needed dead animal disposal services which was advertised on eBidboard and the City of Poway Website. The RFP was also emailed to three prospective companies. One proposal was received from Singh Group, Inc., who is currently contracted with the County of San Diego for dead animal disposal services. The Fee Proposal from Singh Group, Inc., is included in the Standard Agreement for Services (Attachment A), and reflects a proposed flat monthly fee of $1,500 for pick up and disposal of dead animals under 250 pounds. The City averages approximately ten dead animal disposals per month. 1 of 18 September 1, 2020, Item #5Animals weighing between 250 pounds and 1,500 pounds will be removed at a unit price of $350 each. The maximum monthly fee is $440 less than the previously awarded agreement with D&D Services, Inc. excluding fees for large animals. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Sufficient funds are available in the Planning Division's Other Contractual Services account (301030-41200) in the Fiscal Year 2020-21 Adopted Budget. Public Notification: None. Attachments: A. Standard Agreement for Services with Singh Group, Inc. Reviewed/ Approved By: Assistant City Manager 2 of 18 Reviewed By: Alan Fenstermacher City Attorney September 1, 2020, Item #5City of Poway STANDARD AGREEMENT FOR SERVICES This Agreement, entered into this 9th day of September, 2020, by and between the CITY OF POWAY (hereinafter referred to as "City") and SINGH GROUP, INC. (hereinafter referred to as "Consultant"). RECITALS WHEREAS, City desires to obtain the services of a private consultant to perform dead animal disposal services (Services); and WHEREAS, Consultant is a dead animal disposal consultant and has represented that Consultant possesses the necessary qualifications to provide such services; and WHEREAS, City has authorized the preparation of an agreement to retain the services of Consultant as hereinafter set forth. NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONSUL TANT ON THE FOLLOWING TERMS AND CONDITIONS: 1. Scope of Services. Consultant shall provide services as described in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 2. Compensation and Reimbursement. City shall compensate and reimburse Consultant as provided in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 3. Term of Agreement. The term of this Agreement shall be as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 4. Termination. This Agreement may be terminated with or without cause by City. Termination without cause shall be effective only upon 60-day written notice to Consultant. During said 60-day period Consultant shall perform all consulting services in accordance with this Agreement. This Agreement may be terminated by City for cause in the event of a material breach of this Agreement, misrepresentation by Consultant in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City. Termination for cause shall be effected by delivery of written notice of termination to Consultant. Such termination shall be effective upon delivery of said notice. 3 of 18 ATTACHMENT A September 1, 2020, Item #55. Confidential Relationship. City may from time to time communicate to Consultant certain information to enable Consultant to effectively perform the services. Consultant shall treat all such information as confidential, whether or not so identified, and shall not disclose any part thereof without the prior written consent of the City. Consultant shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services. The foregoing obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of Consultant, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of Consultant without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to Consultant by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. Consultant shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this contract without the prior written consent of the City. In its performance hereunder, Consultant shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. 6. Office Space and Clerical Support. Consultant shall provide its own office space and clerical support at its sole cost and expense. 7. Covenant Against Contingent Fees. Consultant declares that it has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of the Agreement. For breach of violation of this warranty, City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. 8. Ownership of Documents. All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement shall be the property of City and shall be delivered to City by Consultant upon demand. 9. Conflict of Interest and Political Reform Act Obligations. During the term of this Agreement Consultant shall not act as consultant or perform services of any kind for any person or entity whose interests conflict in any way with those of the City of Poway. Consultant shall at all times comply with the terms of the Political Reform Act and the local conflict of interest code. Consultant shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Consultant has a financial interest as defined in Government Code Section 87103. Consultant represents that it has no knowledge of any financial interests which would require it to disqualify itself from any matter on which it might perform services for the City. 4 of 18 2 September 1, 2020, Item #5"Consultant" means an individual who, pursuant to a contract with a state or local agency: (A) Makes a governmental decision whether to: 1. Approve a rate, rule or regulation; 2. Adopt or enforce a law; 3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; 4. Authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires City approval; 5. Grant City approval to a contract that requires City approval and to which the City is a party, or to the specifications for such a contract; 6. Grant City approval to a plan, design, report, study, or similar item; 7. Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or (B) Serves in a staff capacity with the City and in that capacity participates in making a governmental decision as defined in the Political Reform Act and/or implementing regulations promulgated by the Fair Political Practices Commission, or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code. DISCLOSURE DETERMINATION: C8J 1. Consultant/Contractor will not be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. No disclosure required. D 2. Consultant/Contractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, Consultant/Contractor shall be required to file a Statement of Economic Interest with the City Clerk of the City of Poway in a timely manner as required by law. Robert J. Manis, Director of Development Services 10. No Assignments. Neither any part nor all of this Agreement may be assigned or subcontracted, except as otherwise specifically provided herein, or to which City, in its sole discretion, consents to in advance thereof in writing. Any assignment or subcontracting in violation of this provision shall be void. 11. Maintenance of Records. Consultant shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the contract period and for three (3) 5 of 18 3 September 1, 2020, Item #5years from the date of final payment under this Agreement, for inspection by City and copies thereof shall be furnished, if requested. 12. Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of the City of Poway. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes such services. 13. Licenses, Permits, Etc. Consultant represents and declares to City that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for Consultant to practice its profession. 14. Consultant's Insurance. Consultant shall provide insurance as set forth in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 15. Indemnification. (a) For Claims (as defined herein) other than those alleged to arise from Consultant's negligent performance of professional services, City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "lndemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless lndemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses, including reasonable attorneys' fees and disbursements (collectively "Claims"), which lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of Consultant's negligent performance under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees. (b) For Claims alleged to arise from Consultant's negligent performance of professional services, lndemnitees shall have no liability to Consultant or any other person for, and Consultant shall indemnify and hold harmless lndemnitees from and against, any and all Claims that lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise to the extent occurring as a result of Consultant's negligent performance of any professional services under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees, committed in performing any of professional services under this Agreement. For Claims alleged to arise from Consultant's professional services, Consultant's defense obligation to lndemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Consultant's negligence. 6 of 18 4 September 1, 2020, Item #5( c) The foregoing obligations of Consultant shall not apply to the extent that the Claims arise from the sole negligence or willful misconduct of City or its elected and appointed boards, officials, officers, agents, employees and volunteers. (d) In any and all Claims against City by any employees of the Consultant, anyone directly or indirectly employed by it or anyone for whose acts it may be liable, the indemnification obligation under this Section 15 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Consultant under worker's compensation acts, disability benefit acts or other employee benefit acts. (e) Consultant shall, upon receipt of written notice of any Claim, promptly take all action necessary to make a claim under any applicable insurance policy or policies Consultant is carrying and maintaining; however, if Consultant fails to take such action as is necessary to make a claim under any such insurance policy, Consultant shall reimburse City for any and all costs, charges, expenses, damages and liabilities incurred by City in making any claim on behalf of Consultant under any insurance policy or policies required pursuant to this Agreement. (f) The obligations described in Section 15(a) through (e) above shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person indemnified pursuant to this Section 15. (g) The rights and obligations of the parties described in this Section 15 shall survive the termination of this Agreement. 16. Assumption of Risk. Except for injuries to persons caused by the willful misconduct of any lndemnitee and not covered by insurance maintained, or required by this Agreement to be maintained, by Consultant: (a) Consultant hereby assumes the risk of any and all injury and damage to the personnel (including death) and property of Consultant that occurs in the course of, or in connection with, the performance of Consultant's obligations under this Agreement, including but not limited to Consultant's Scope of Services; and (b) it is hereby agreed that the lndemnitees are not to be liable for injury or damage which may be sustained by the person, goods or property of Consultant or its employees in connection with Consultant's performance its obligations under this Agreement, including but not limited to Consultant's Scope of Services. 17. Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever. 18. Personnel. Consultant shall assign qualified and certified personnel to perform requested services. The City shall have the right to review and disapprove personnel for assignment to Poway projects. City shall have the unrestricted right to order the removal of any person(s) assigned by Consultant by giving oral or written notice to Consultant to such effect. 7 of 18 5 September 1, 2020, Item #5Consultant's personnel shall at all times comply with City's drug and alcohol policies then in effect. 19. Notices. Notices shall be given as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 20. Governing Law, Forum Selection and Attorneys' Fees. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Each party to this Agreement consents to personal jurisdiction in San Diego County, California, and hereby authorizes and accepts service of process sufficient for personal jurisdiction by first class mail, registered or certified, postage prepaid, to its address for giving notice as set forth in Exhibit "A" hereto. Any action to enforce or interpret the terms or conditions of this Agreement shall be brought in the Superior Court in San Diego County, Central Division, unless the parties mutually agree to submit their dispute to arbitration. Consultant hereby waives any right to remove any such action from San Diego County as is otherwise permitted by California Code of Civil Procedure section 394. The prevailing party in any such action or proceeding shall be entitled to recover all of its reasonable litigation expenses, including its expert fees, attorneys' fees, courts costs, arbitration costs, and any other fees. Notwithstanding the foregoing, in the event that the subject of such an action is compensation claimed by Consultant in the event of termination, Consultant's damages shall be limited to compensation for the 60-day period for which Consultant would have been entitled to receive compensation if terminated without cause, and neither party shall be entitled to recover their litigation expenses. 21. Gender. Whether referred to in the masculine, feminine, or as "it," "Consultant" shall mean the individual or corporate consultant and any and all employees of consultant providing services hereunder. 22. Counterparts. This Agreement (and any amendments) may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. Documents delivered by telephonic facsimile transmission shall be valid and binding. 23. Entire Agreement. This Agreement shall constitute the entire understanding between Consultant and City relating to the terms and conditions of the services to be performed by Consultant. No agreements, representations or promises made by either party, whether oral or in writing, shall be of any force or effect unless it is in writing and executed by the party to be bound thereby. 24. Certification and Indemnification Regarding Public Employees' Retirement Law/Pension Reform Act of 2013. Contractor hereby certifies that all persons providing services to City by Contractor are not current members of the California Public Employees' Retirement System (CalPERS) and shall not become members of CalPERS while providing services to City. 8 of 18 6 September 1, 2020, Item #5Contractor further provides that in the event Contractor assigns a retired annuitant receiving a pension benefit from CalPERS to perform services for City, the retired annuitant is in full compliance with Government Code section 7522.56. A copy of Government Code section 7522.56 is attached hereto as Exhibit "B." Further, Contractor hereby fully and unconditionally indemnifies City from all penalties, fees, employer and employee contributions, or any other assessments imposed by CalPERS in the event CalPERS determines the person assigned by Contractor to provide services to City has been misclassified. 25. Severability. If any provision of this Agreement is determined by any court of competent jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this Agreement shall remain in effect. (Remainder of page intentionally left blank) 9 of 18 7 September 1, 2020, Item #5IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written. CITY OF POWAY By:-----------Chris Hazeltine, City Manager Date: __________ _ ATTEST: Carrie Gallagher, CMC, Interim City Clerk APPROVED AS TO FORM: By:-------------Alan Fenstermacher, City Attorney 10 of 18 SINGH GROUP, INC. 8 By:------------Adolf Singh, President Date: ___________ _ September 1, 2020, Item #5"SPECIAL PROVISIONS" EXHIBIT "A" A. Scope of Services. Consultant shall provide the necessary qualified personnel to perform the services. Consultant shall provide all labor, materials, and equipment necessary for dead animal reporting, pick up, removal and disposal services as required by City, which shall include but not be limited to the following: 1. Calls For Service, Dispatching, And Record Keeping a. Consultant shall maintain and provide a 24-hour, seven (7) day per week toll-free telephone number to accept calls from the City and general public for pick up and removal of dead animals. b. Consultant will provide to the City a 24-hour, seven (7) day per week emergency telephone number, listing supervising staff that may be called upon to expedite removal of dead animals. c. Consultant shall dispatch dead animal pick up requests on a seven (7) day per week basis, including all holidays. d. Consultant shall maintain a log of each call received which at a minimum must contain the date, time, location, type of pick up, animal license number (if applicable), reporting party, telephone contact number of reporting party, confirmation that the reporting party was called back to confirm the animal was removed, as well as the Consultant's dispatching and pick up activity related to the call for service. The Consultant shall submit these logs and reports to the City on a monthly basis. e. In cases where the dead animal was licensed, the Consultant will return the tag to the San Diego Humane Society Animal shelter nearest to the City of Poway within 48 hours of retrieval. 2. Pick Up Service 11 of 18 a. Consultant shall pick up and remove all dead animals and/or parts thereof from public streets, parks, rights-of-way, and other public property. Animals shall include, but not be limited to, all animals whether wild or tame, including but not limited to: 1) All land mammals; 2) All reptiles greater than three (3) pounds in weight; and 3) All birds and fowl. b. Consultant shall remove dead animals that constitute a road hazard (road hazard shall be determined by the City) immediately upon notification by the City. The standard "immediately" shall mean removal within a four (4) hour period from notification of pick up request from the City or the public. c. Consultant shall remove dead animals that do not constitute a road hazard within twenty-four (24) hours of notification of pick up request from the City or the public. d. Consultant shall make available to members of the general public removal of dead animals from private property located within the City limits at a cost to the private property owner in accordance with a fee schedule developed between the Consultant and the City as described in Attachment A "Fee Schedule." e. Any additional work required beyond that set forth in the scope of work (Exhibit A, "Special Provision") contained in the City's Standard Agreement for Contractual Services shall be mutually agreed to by the City and the Consultant in writing, and shall be billed on time and materials basis to the City. 1 September 1, 2020, Item #53. Removal, Transportation, And Storage a. Consultant shall maintain, at Consultant's own expense, sufficient personnel, vehicles, and equipment to provide dead animal pick up, removal, and disposal service to the City. b. Consultant shall provide photos and information on vehicles used for services. c. Vehicles used by Consultant to transport dead animals shall be equipped with a watertight body or watertight tank within which dead animals may be transported or conveyed. _Any dead animal therein shall be covered with container lid, tarpaulin or other appropriate coverage to prevent discharge, spillage, excessive odor, or sighting of carcass from transporting vehicle. d. Transporting vehicles shall be cleaned and disinfected on a regular basis. e. Consultant shall provide interim storage of dead animals in conformance with all federal, state, and local laws and health and sanitation practices. f. Consultant shall comply with all local and state laws pertaining to vehicles and traffic and the Consultant's responsibility for obedience of traffic regulations pursuant to Poway Municipal Code (PMC) Title 10 -Vehicles and Traffic. 4. Disposal a. Consultant shall dispose of all dead animals in conformity with applicable federal, state, and local laws including PMC Chapter 6.16. b. Disposal of dead animals retrieved by the Consultant is the total responsibility of the Consultant. All services shall be performed in accordance with all applicable federal, state and city regulations and ordinances. B. Compensation and Reimbursement. City shall pay Consultant a fee in accordance with the Fee Proposals submitted with the proposals dated June 29, 2020, which are included in this document as Attachment A. Total fee is $1,500 per month flat rate regardless of the number of pickups during the month. Consultant's fee shall include and Consultant shall be responsible for the payment of all federal, state, and local taxes of any kind which are attributable to the compensation received. In addition to said consulting fee, Consultant shall be reimbursed for all reasonable expenses, including lodging, telephone, and travel (air, auto, rail) necessarily incurred in performance of the services. Consultant shall bill City for such expenses as incurred, referencing this Agreement. All expenses shall be itemized and supported by receipts for amounts in excess of Twenty-Five Dollars ($25.00). Statements for reimbursement of expenses shall be paid within ten (10) days of approval by City. All air travel shall be billed at coach or special fare rates. Reimbursement for lodging is limited to travel from outside of San Diego County. Consultant shall receive prior authorization for air travel and lodging expenses. All other expenses shall be reimbursed in accordance with City's cash disbursement policies in effect at the time incurred. C. Term of Agreement. This Agreement shall be effective from the period commencing September 9, 2020, and ending September 8, 2021, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." This Agreement may be extended for up to three additional one-year periods upon approval in writing of the City Manager and Consultant. Upon expiration or termination of this Agreement, Consultant shall return to City any and all equipment, documents or materials and all copies made thereof which Consultant received from City or produced for City for the purposes of this Agreement. 12 of 18 2 September 1, 2020, Item #5D. Consultant's Insurance. 1 . Coverages: Consultant shall obtain and maintain during the life of this Agreement all of the following insurance coverages: (a) Comprehensive General Liability, including premises-operations, products/completed, broad form property damage, and blanket contractual liability with the following coverages: General Liability $1,000,000 Bodily Injury and Property Damage combined each occurrence and $2,000,000 aggregate. (b) Automobile Liability, including owned, hired, and non-owned vehicles: $1,000,000 combined single limit. (c) Workers' Compensation insurance in statutory amount. All of the endorsements which are required above shall be obtained for the policy of Workers' Compensation insurance. 2. Endorsements: Endorsements shall be obtained so that each policy contains the following three provisions: (a) Additional Insured. (Not required for Workers' Compensation.) "City of Poway and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice. "Said policy shall not terminate, nor shall it be canceled, until thirty (30) days after written notice is given to City." (c) Primary Coverage. "The policy provides primary coverage to City and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City." 3. Insurance Certificates: Consultant shall provide City certificates of insurance showing the insurance coverages described in the paragraphs above, in a form and content approved by City, prior to beginning work under this Agreement. E. Notices. All notices, billings and payments hereunder shall be in writing and sent to the following addresses: To City: 13 of 18 3 City of Poway -Development Services 13325 Civic Center Drive Poway, CA 92064 September 1, 2020, Item #5To Consultant: 14 of 18 4 Singh Group, Inc. 1308 Descanso Ave San Marcos, CA 92069 September 1, 2020, Item #5EXHIBIT "B" Cal Gov Code§ 7522.56 Deering's California Codes are current through all 1016 chapters of the 2018 Regular Session and the November 6, 2018 Ballot Measures. Deering's California Codes Annotated> GOVERNMENT CODE> Title 1 General> Division 7 Miscellaneous > Chapter 21 Public Pension and Retirement Plans > Article 4 California Public Employees' Pension Reform Act o/2013 § 7522.56. Provisions applicable to person receiving pension benefit from public retirement system; Section supersedes conflicting provisions (a)This section shall apply to any person who is receiving a pension benefit from a public retirement system and shall supersede any other provision in conflict with this section. (b) A retired person shall not serve, be employed by, or be employed through a contract directly by, a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, except as permitted by this section. ( c) A person who retires from a public employer may serve without reinstatement from retirement or loss or interruption of benefits provided by the retirement system upon appointment by the appointing power of a public employer either during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration. ( d)Appointments of the person authorized under this section shall not exceed a total for all employers in that public retirement system of 960 hours or other equivalent limit, in a calendar or fiscal year, depending on the administrator of the system. The rate of pay for the employment shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties, divided by 173.333 to equal an hourly rate. A retired person whose employment without reinstatement is authorized by this section shall acquire no service credit or retirement rights under this section with respect to the employment unless he or she reinstates from retirement. (e) 15 of 18 (1 )Notwithstanding subdivision ( c ), any retired person shall not be eligible to serve or be employed by a public employer if, during the 12-month period prior to an appointment described in this section, the retired person received any unemployment insurance compensation arising out of prior employment subject to this section with 1 September 1, 2020, Item #5Cal Gov Code § 7522.56 a public employer. A retiree shall certify in writing to the employer upon accepting an offer of employment that he or she is in compliance with this requirement. (2)A retired person who accepts an appointment after receiving unemployment insurance compensation as described in this subdivision shall terminate that employment on the last day of the current pay period and shall not be eligible for reappointment subject to this section for a period of 12 months following the last day of employment. (t)A retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement unless he or she meets one of the following conditions: 16 of 18 (1 )The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar. (2) (A)Except as otherwise provided in this paragraph, for state employees, the state employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed state employment position before 180 days have passed and the appointment has been approved by the Department of Human Resources. The department may establish a process to delegate appointing authority to individual state agencies, but shall audit the process to determine if abuses of the system occur. If necessary, the department may assume an agency's appointing authority for retired workers and may charge the department an appropriate amount for administering that authority. (B)F or legislative employees, the Senate Committee on Rules or the Assembly Rules Committee certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar. (C)For employees of the California State University, the Trustees of the California State University certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar. (3)The retiree is eligible to participate in the Faculty Early Retirement Program pursuant to a collective bargaining agreement with the California State University that existed prior to January 1, 2013, or has been included in subsequent agreements. (4)The retiree is a public safety officer or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter. 2 September 1, 2020, Item #5Cal Gov Code§ 7522.56 (g)A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement and subdivision (f) shall not apply. (h)This section shall not apply to a person who is retired from the State Teachers' Retirement System, and who is subject to Section 24214. 24214.5 or 26812 of the Education Code. (i)This section shall not apply to (1) a subordinate judicial officer whose position, upon retirement, is converted to a judgeship pursuant to Section 69615, and he or she returns to work in the converted position, and the employer is a trial court, or (2) a retiree of the Judges' Retirement System or the Judges' Retirement System 11 who is assigned to serve in a court pursuant to Section 68543. 5. History Added Stats 2012 ch 296 § 15 (AB 340). effective January 1, 2013. Amended Stats 2013 ch 528 § 11 (SB 13). effective October 4, 2013 (ch 528 prevails); ch 76 § 75 (AB 383), effective January 1, 2013; Stats 2014 ch 238 § 1 (AB 2476), effective January 1, 2015. Annotations Notes Amendments: Note--Amendments: 2013 Amendment: Substituted (1) "have passed" for "has passed" in the first sentence of subds (f)(l) and (f)(2); (2) "or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter" for "of firefighter" in subd (f)(4); and (3) "Judges' Retirement System" for "Judges' Retirement System I" in subd (i). 17 of 18 3 September 1, 2020, Item #5Attachment A DEAD ANIMAL DISPOSAL SERVICES FEE SCHEDULE (SAMPLE) CONSULTANT shall provide all labor, materials, and equipment necessary for dead animal reporting, pick up, removal and disposal services on public streets, public property, and right-of-ways. These fees are inclusive of all reasonable expenses. A. Per occurrence fee: 1. Animals weighing less than 250 pounds will be removed at a unit price of $__1_5'00 ~e·-r.m ►'l-t~ f lc'!f-r~ Vtjc'--:-d /es_) c>f-f1te YIUW\ b.R.y of p j( t ~-p s d.c..,v.ri rtj f1u. vh,.t>'" ~ ' 2. Animals weighing between 250 pounds and 1,500 pounds will be removed at a unit price of$ 3 5 0 each. Not to Exceed Monthly Fee: $ __ Yl_/_t:\ ____ Total B. Additional Service Charge for Private Property. Consultant shall make available to members of the general public the removal of dead animals from private property located within the City limits. The City assumes no liability or responsibility for the additional services. Per occurrence fee: 3. Animals weighing less than 250 pounds will be removed at a unit price of from $ J 00 to$ }50 each. 4. Animals weighing between 250 pounds and 1,500 pounds will be removed at a unit price of from $ 3 5 0 to$ 5 D O each. This document is signed by an individual clearly authorized to bind the CONSULTANT. Company Name and Address: Phone: Email: I IL //_,,(1'1/ (/>J Date: ____ __..,____..,.__ __________ _ By: Signature / ;J o if w. SC~ n ,Fe i'ti '-{ S ct ~ f1-1Jt r z-,c, t _ c v+-Printed Name: ___ 4z-t_:-...;.....__~_v_f _._t_~: ___ t _!;_../i+l-(,,-1 __ Title: ___ P_r'-ll_S_;_c_{J;_)_n._f-_-·· __ City of Poway RFP# 20-022-Dead Animal Disposal Services 18 of 18 7 September 1, 2020, Item #6DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway September 1, 2020 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance MJ Brad Rosen, Information Technology Manager 1{,-, (858) 668-4452 or brosen@poway.org CITY COUNCIL Award of Contract to Savant Solutions for Managed Detection & Response (MDR) Security Services Provider, RFP No. 21-005 Over the past several years, the City has implemented a cybersecurity program to reduce the possibility of unauthorized access to the City's secured information by external entities. The City first contracted for Managed Security Services in 2017 and that agreement expires on October 4, 2020. In July 2020, the City issued a Request for Proposals (RFP) for cybersecurity monitoring services to ensure the City's cyber defense layers are monitored for attacks for malicious activity and its critical IT assets are protected from such activities. The City is recommending selection of Savant Solutions to provide Arctic Wolf security services which includes real-time monitoring of the City's network, servers and computers, incident response and risk management capabilities. Recommended Action: It is recommended that the City Council award the cybersecurity monitoring contract to Savant Solutions for a period of 37 months with the ability to extend the agreement by two one-year agreements and authorize the City Manager to execute the agreement in a form approved by the City Attorney. Discussion: Cybersecurity is a broad term that includes everything from intrusion detection to staff training and has become increasingly important for every business that houses data and/or controls or maintains critical infrastructure. Cybersecurity standards enable organizations to practice safe security techniques to stop cybersecurity attacks. The cybersecurity offerings from vendors has changed since the City's last RFP. In 2017, security services were focused more on monitoring, logging, scanning and reporting and providing that information to the City to remediate any issues found. In recent years, service providers have transitioned to a Monitored Detection and Response (MOR) model. MOR not only provides the same services as before but takes it a step further allowing the service provider to block suspicious behavior 1 of 17 September 1, 2020, Item #6and quarantine affected devices. This technology provides for much faster response as it is performed by the service provider as soon as a threat is detected. A Request for Proposals (RFP) for cyber security services was issued on July 9, 2020. The City received proposals from eight vendors as detailed in the table below. The IT team evaluated the proposals based on the following criteria: 1) Experience of the vendor; 2) Professional, technical and educational qualifications of the personnel; 3) Quality of the solution proposed; and 4) Total cost. The City shortlisted three vendors who presented their proposals and provided demonstrations of their products. The services offered by the top three vendors were compared to identify where each met the requirements of the RFP. Adjustments to quoted quantities and options in vendor proposals were made to best compare total cost. The table below represents the comparative costs based on like services provided by the vendors. 1 ----~Vir11ior.: • .. -_-----: ~ Pl;6"POSed . ' ·:· [;~'.i"/Jliii:'.REP --:" :~F1r5tYeFiC ;:Tu~ee'.Year"'. : .. _ ' )J • --·~: <-;.j t, ~, ·, ·, , -~·, 1• ·,. ~pl'ution• _' .'. /· f3.~~~(ri~m~:ri,ls .. ,' Tidta'I~,/ ... ::; f{{;total' i, Tyler Technologies Tyler Detect No $23,000 $67,000 Paladion Technologies Paladion Yes $44,412 $133,236 Savant Solutions Arctic Wolf Yes $54,963 $150,489 JTEK Data Solutions SecureWorks (Opt. A) No $53,021 $159,063 SecureWorks (Opt. B) Yes $84,007 $252,021 ePlus Technology Services Proficio Yes $82,179 $228,339 SOCBOX SOCBOX {Opt. A) No $67,619 $187,859 SOCBOX {Opt. B) Yes $97,368 $277,106 Nth Generation Computing Ntirety Yes $113,093 $339,279 Datashield, an ADT Company Datashield MDR Yes $154,952 $454,856 * includes startup/installation costs Staff did not select the lowest cost responsive proposal. Consistent with PMC 3.28.100 staff made their decision based on the qualifications of the respondents. After evaluating all the criteria and ranking vendors in each category, the evaluation team selected the solution provided by Savant Solutions as the most comprehensive solution that met all the requirements of the RFP. The primary difference that set Savant apart was the ability to quarantine malicious activity with their own hardware instead of having access to the main City firewall. Staff believe this is a better and more secure approach to protect the City's network environment. The Savant Solutions proposal includes implementing Arctic Wolf MDR and Managed Risk services. Arctic Wolf is a leading cybersecurity service provider and is recognized by industry analysts such as Gartner and Forrester as one of the top vendors for providing next generation cybersecurity services. One of the biggest benefits to the Savant/Arctic Wolf solution is their ability to manage both servers and end user devices with their on-premise sensors and client software. Arctic Wolf also provides a highly certified concierge security team that acts as an extension of the IT staff who work together with the City on threat and vulnerability management. The Savant Solutions/Arctic Wolf offering will provide the following services: • Managed detection and response services on City network and devices • Managed Risk and Vulnerability Scanning • Cloud monitoring of Microsoft 365 environment • Virtual Private Network (VPN) monitoring • Log Collection, Monitoring and Analysis • Concierge Security Team 2 of 17 September 1, 2020, Item #6The services listed above will provide the City with a security services solution to ensure the City's cyber defense layers are monitored for attacks or malicious activity in order to protect the City's critical IT assets from such activities. Acquiring these services also helps the City align its security processes and procedures with the National Institute of Standards and Technology (NIST) best practices for managing risk outlined in the NIST Cybersecurity Framework. The agreement with Savant Solutions is for three years and one month with the ability to extend the agreement by two one-year agreements. The additional month in the first year is needed to configure our environment and install Arctic Wolf hardware. This will allow for a seamless transition from our current security service provider when that agreement expires on October 4, 2020. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: Sufficient funds are available in the Fiscal Year 2020-21 budget (113010-41200) for award of this contract. Subsequent years for this service agreement will be requested in the Information Technology Division operations and maintenance budget. Public Notification: None. Attachments: A. Standard Agreement for Services with Savant Solutions Reviewed/Approved By: Wen Kaserman Assistant City Manager 3 of 17 Reviewed By: Alan Fenstermacher City Attorney Approved By: C~e City Manager September 1, 2020, Item #6City of Poway STANDARD AGREEMENT FOR SERVICES This Agreement, entered into this 2nd day of September, 2020, by and between the CITY OF POWAY (hereinafter referred to as "City") and Savant Solutions (hereinafter referred to as "Consultant"). RECITALS WHEREAS, City desires to obtain the services of a private consultant to perform Managed Detection and Response (MOR) and Managed Risk cybersecurity services and WHEREAS, Consultant is an information technology security consultant and has represented that Consultant possesses the necessary qualifications to provide such services; and WHEREAS, City has authorized the preparation of an agreement to retain the services of Consultant as hereinafter set forth. NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONSULTANT ON THE FOLLOWING TERMS AND CONDITIONS: 1. Scope of Services. Consultant shall provide services as described in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 2. Compensation and Reimbursement. City shall compensate and reimburse Consultant as provided in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 3. Term of Agreement. The term of this Agreement shall be as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 4. Termination. This Agreement may be terminated with or without cause by City. Termination without cause shall be effective only upon 60-day written notice to Consultant. During said 60-day period Consultant shall perform all consulting services in accordance with this Agreement. This Agreement may be terminated by City for cause in the event of a material breach of this Agreement, misrepresentation by Consultant in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City. Termination for cause shall be effected by delivery of written notice of termination to Consultant. Such termination shall be effective upon delivery of said notice. 4 of 17 ATTACHMENT A September 1, 2020, Item #65. Confidential Relationship. City may from time to time communicate to Consultant certain information to enable Consultant to effectively perform the services. Consultant shall treat all such information as confidential, whether or not so identified, and shall not disclose any part thereof without the prior written consent of the City. Consultant shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services. The foregoing obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of Consultant, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of Consultant without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to Consultant by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. Consultant shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this contract without the prior written consent of the City. In its performance hereunder, Consultant shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. 6. Office Space and Clerical Support. Consultant shall provide its own office space and clerical support at its sole cost and expense. 7. Covenant Against Contingent Fees. Consultant declares that it has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of the Agreement. For breach of violation of this warranty, City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee. 8. Ownership of Documents. All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement shall be the property of City and shall be delivered to City by Consultant upon demand. 9. Conflict of Interest and Political Reform Act Obligations. During the term of this Agreement Consultant shall not act as consultant or perform services of any kind for any person or entity whose interests conflict in any way with those of the City of Poway. Consultant shall at all times comply with the terms of the Political Reform Act and the local conflict of interest code. Consultant shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Consultant has a financial interest as defined in Government Code Section 87103. Consultant represents that it has no knowledge of any financial interests which would require it to disqualify itself from any matter on which it might perform services for the City. 5 of 17 2 September 1, 2020, Item #6"Consultant" means an individual who, pursuant to a contract with a state or local agency: (A) Makes a governmental decision whether to: 1. Approve a rate, rule or regulation; 2. Adopt or enforce a law; 3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; 4. Authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires City approval; 5. Grant City approval to a contract that requires City approval and to which the City is a party, or to the specifications for such a contract; 6. Grant City approval to a plan, design, report, study, or similar item; 7. Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or (B) Serves in a staff capacity with the City and in that capacity participates in making a governmental decision as defined in the Political Reform Act and/or implementing regulations promulgated by the Fair Political Practices Commission, or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code. DISCLOSURE DETERMINATION: [8J 1. Consultant/Contractor will not be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. No disclosure required. D 2. Consultant/Contractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, Consultant/Contractor shall be required to file a Statement of Economic Interest with the City Clerk of the City of Poway in a timely manner as required by law. Department Director 10. No Assignments. Neither any part nor all of this Agreement may be assigned or subcontracted, except as otherwise specifically provided herein, or to which City, in its sole discretion, consents to in advance thereof in writing. Any assignment or subcontracting in violation of this provision shall be void. 11. Maintenance of Records. Consultant shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the contract period and for three (3) 6 of 17 3 September 1, 2020, Item #6years from the date of final payment under this Agreement, for inspection by City and copies thereof shall be furnished, if requested. 12. Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of the City of Poway. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes such services. 13. Licenses, Perm its, Etc. Consultant represents and declares to City that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for Consultant to practice its profession. 14. Consultant's Insurance. Consultant shall provide insurance as set forth in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 15. Indemnification. (a) For Claims (as defined herein) other than those alleged to arise from Consultant's negligent performance of professional services, City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "I ndemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless I ndemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses, including reasonable attorneys' fees and disbursements (collectively "Claims"), which lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of Consultant's negligent performance under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees. (b) For Claims alleged to arise from Consultant's negligent performance of professional services, lndemnitees shall have no liability to Consultant or any other person for, and Consultant shall indemnify and hold harmless lndemnitees from and against, any and all Claims that lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise to the extent occurring as a result of Consultant's negligent performance of any professional services under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees, committed in performing any of professional services under this Agreement. For Claims alleged to arise from Consultant's professional services, Consultant's defense obligation to lndemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Consultant's negligence. 7 of 17 4 September 1, 2020, Item #6(c) The foregoing obligations of Consultant shall not apply to the extent that the Claims arise from the sole negligence or willful misconduct of City or its elected and appointed boards, officials, officers, agents, employees and volunteers. (d) In any and all Claims against City by any employees of the Consultant, anyone directly or indirectly employed by it or anyone for whose acts it may be liable, the indemnification obligation under this Section 15 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Consultant under worker's compensation acts, disability benefit acts or other employee benefit acts. (e) Consultant shall, upon receipt of written notice of any Claim, promptly take all action necessary to make a claim under any applicable insurance policy or policies Consultant is carrying and maintaining; however, if Consultant fails to take such action as is necessary to make a claim under any such insurance policy, Consultant shall reimburse City for any and all costs, charges, expenses, damages and liabilities incurred by City in making any claim on behalf of Consultant under any insurance policy or policies required pursuant to this Agreement. (f) The obligations described in Section 15(a) through (e) above shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person indemnified pursuant to this Section 15. (g) The rights and obligations of the parties described in this Section 15 shall survive the termination of this Agreement. 16. Assumption of Risk. Except for injuries to persons caused by the willful misconduct of any lndemnitee and not covered by insurance maintained, or required by this Agreement to be maintained, by Consultant: (a) Consultant hereby assumes the risk of any and all injury and damage to the personnel (including death) and property of Consultant that occurs in the course of, or in connection with, the performance of Consultant's obligations under this Agreement, including but not limited to Consultant's Scope of Services; and (b) it is hereby agreed that the lndemnitees are not to be liable for injury or damage which may be sustained by the person, goods or property of Consultant or its employees in connection with Consultant's performance its obligations under this Agreement, including but not limited to Consultant's Scope of Services. 17. Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever. 18. Personnel. Consultant shall assign qualified and certified personnel to perform requested services. The City shall have the right to review and disapprove personnel for assignment to Poway projects. City shall have the unrestricted right to order the removal of any person(s) assigned by Consultant by giving oral or written notice to Consultant to such effect. 8 of 17 5 September 1, 2020, Item #6Consultant's personnel shall at all times comply with City's drug and alcohol policies then in effect. 19. Notices. Notices shall be given as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 20. Governing Law, Forum Selection and Attorneys' Fees. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Each party to this Agreement consents to personal jurisdiction in San Diego County, California, and hereby authorizes and accepts service of process sufficient for personal jurisdiction by first class mail, registered or certified, postage prepaid, to its address for giving notice as set forth in Exhibit "A" hereto. Any action to enforce or interpret the terms or conditions of this Agreement shall be brought in the Superior Court in San Diego County, Central Division, unless the parties mutually agree to submit their dispute to arbitration. Consultant hereby waives any right to remove any such action from San Diego County as is otherwise permitted by California Code of Civil Procedure section 394. The prevailing party in any such action or proceeding shall be entitled to recover all of its reasonable litigation expenses, including its expert fees, attorneys' fees, courts costs, arbitration costs, and any other fees. Notwithstanding the foregoing, in the event that the subject of such an action is compensation claimed by Consultant in the event of termination, Consultant's damages shall be limited to compensation for the 60-day period for which Consultant would have been entitled to receive compensation if terminated without cause, and neither party shall be entitled to recover their litigation expenses. 21. Gender. Whether referred to in the masculine, feminine, or as "it," "Consultant" shall mean the individual or corporate consultant and any and all employees of consultant providing services hereunder. 22. Counterparts. This Agreement (and any amendments) may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. Documents delivered by telephonic facsimile transmission shall be valid and binding. 23. Entire Agreement. This Agreement shall constitute the entire understanding between Consultant and City relating to the terms and conditions of the services to be performed by Consultant. No agreements, representations or promises made by either party, whether oral or in writing, shall be of any force or effect unless it is in writing and executed by the party to be bound thereby. 24. Certification and Indemnification Regarding Public Employees' Retirement Law/Pension Reform Act of 2013. Contractor hereby certifies that all persons providing services to City by Contractor are not current members of the California Public Employees' Retirement System (CalPERS) and shall not become members of CalPERS while providing services to City. 9 of 17 6 September 1, 2020, Item #6Contractor further provides that in the event Contractor assigns a retired annuitant receiving a pension benefit from CalPERS to perform services for City, the retired annuitant is in full compliance with Government Code section 7522.56. A copy of Government Code section 7522.56 is attached hereto as Exhibit "B." Further, Contractor hereby fully and unconditionally indemnifies City from all penalties, fees, employer and employee contributions, or any other assessments imposed by CalPERS in the event CalPERS determines the person assigned by Contractor to provide services to City has been misclassified. 25. Severability. If any provision of this Agreement is determined by any court of competent jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this Agreement shall remain in effect. (Remainder of page intentionally left blank) 10 of 17 7 September 1, 2020, Item #6IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written. CITY OF POWAY By:-----------Chris Hazeltine, City Manager Date: -----------ATTEST: Carrie Gallagher, Interim City Clerk APPROVED AS TO FORM: By:------------Alan Fenstermacher, City Attorney 11 of 17 SAVANT SOLUTIONS 8 By:------------Caleb Kwong, CEO Date: ------------ September 1, 2020, Item #6A. "SPECIAL PROVISIONS" EXHIBIT "A" Scope of Services. Consultant agrees to perform consulting services as required by City, which shall consist of the Managed Detection and Reponses and Managed Risk cyber security services further described in the Scope of Services submitted with the proposals dated July 30, 2020, which is included in this document as Attachment 1, and incorporated by reference, as if its contents were fully set forth herein. Consultant shall provide the necessary qualified personnel to perform the services. B. Compensation and Reimbursement. City shall pay Consultant a fee in accordance with the Fee Proposals submitted with the quote dated August 14, 2020, which is included in this document as Attachment 2. Total fee is not to exceed $54,963 for year one and $47,763 each for years two and three for a total contract amount of $150,489. Consultant's fee shall include and Consultant shall be responsible for the payment of all federal, state, and local taxes of any kind which are attributable to the compensation received. C. Term of Agreement. This Agreement shall be effective from the period commencing September 2, 2020, and ending October 5, 2023, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." This Agreement may be extended for up to two additional one-year periods upon approval in writing of the City Manager and Consultant. Upon expiration or termination of this Agreement, Consultant shall return to City any and all equipment, documents or materials and all copies made thereof which Consultant received from City or produced for City for the purposes of this Agreement. D. Consultant's Insurance. 1. Coverages: Consultant shall obtain and maintain during the life of this Agreement all of the following insurance coverages: (a) Comprehensive General Liability, including premises-operations, products/completed, broad form property damage, and blanket contractual liability with the following coverages: General Liability $1,000,000 Bodily Injury and Property Damage combined each occurrence and $2,000,000 aggregate. (b) Automobile Liability. including owned, hired, and non-owned vehicles: $1,000,000 combined single limit. (c) Consultant shall obtain and maintain, during the life of the Agreement, a policy of Professional Errors and Omissions Liability Insurance with policy limits of not less than $1,000,000 combined single limits, per claim and annual aggregate. 12 of 17 1 September 1, 2020, Item #6(d) Workers' Compensation insurance in statutory amount. All of the endorsements which are required above shall be obtained for the policy of Workers' Compensation insurance. 2. Endorsements: Endorsements shall be obtained so that each policy contains the following three provisions: (a) Additional Insured. (Not required for Professional Errors and Omissions Liability Insurance or Workers' Compensation.) "City of Poway and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice. "Said policy shall not terminate, nor shall it be canceled, until thirty (30) days after written notice is given to City." (c) Primary Coverage. "The policy provides primary coverage to City and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City." 3. Insurance Certificates: Consultant shall provide City certificates of insurance showing the insurance coverages described in the paragraphs above, in a form and content approved by City, prior to beginning work under this Agreement. E. Notices. All notices, billings and payments hereunder shall be in writing and sent to the following addresses: To City: To Consultant: 13 of 17 2 City of Poway P.O. Box 789 Poway, CA 92074 Savant Solutions 1007 -rh Street Sacramento, CA 95814 September 1, 2020, Item #6EXHIBIT "B" Cal Gov Code§ 7522.56 Deering's California Codes are current through all 1016 chapters of the 2018 Regular Session and the November 6, 2018 Ballot Measures. Deering's California Codes Annotated> GOVERNMENT CODE> Title 1 General> Division 7 Miscellaneous> Chapter 21 Public Pension and Retirement Plans> Article 4 California Public Employees' Pension Reform Act o/2013 § 7522.56. Provisions applicable to person receiving pension benefit from public retirement system; Section supersedes conflicting provisions (a)This section shall apply to any person who is receiving a pension benefit from a public retirement system and shall supersede any other provision in conflict with this section. (b) A retired person shall not serve, be employed by, or be employed through a contract directly by, a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, except as permitted by this section. (c) A person who retires from a public employer may serve without reinstatement from retirement or loss or interruption of benefits provided by the retirement system upon appointment by the appointing power of a public employer either during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration. (d)Appointments of the person authorized under this section shall not exceed a total for all employers in that public retirement system of 960 hours or other equivalent limit, in a calendar or fiscal year, depending on the administrator of the system. The rate of pay for the employment shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties, divided by 173.333 to equal an hourly rate. A retired person whose employment without reinstatement is authorized by this section shall acquire no service credit or retirement rights under this section with respect to the employment unless he or she reinstates from retirement. (e) 14 of 17 (!)Notwithstanding subdivision (c), any retired person shall not be eligible to serve or be employed by a public employer if, during the 12-month period prior to an appointment described in this section, the retired person received any unemployment insurance compensation arising out of prior employment subject to this section with a public employer. A retiree shall certify in writing to the employer upon accepting an offer of employment that he or she is in compliance with this requirement. September 1, 2020, Item #6City of Poway Managed Security Services Provider RFP (2)A retired person who accepts an appointment after receiving unemployment insurance compensation as described in this subdivision shall terminate that employment on the last day of the current pay period and shall not be eligible for reappointment subject to this section for a period of 12 months following the last day of employment. (f)A retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement unless he or she meets one of the following conditions: (l)The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar. (2) (A)Except as otherwise provided in this paragraph, for state employees, the state employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed state employment position before 180 days have passed and the appointment has been approved by the Department of Human Resources. The department may establish a process to delegate appointing authority to individual state agencies, but shall audit the process to determine if abuses of the system occur. If necessary, the department may assume an agency's appointing authority for retired workers and may charge the department an appropriate amount for administering that authority. (B)For legislative employees, the Senate Committee on Rules or the Assembly Rules Committee certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar. (C)For employees of the California State University, the Trustees of the California State University certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar. (3)The retiree is eligible to participate in the Faculty Early Retirement Program pursuant to a collective bargaining agreement with the California State University that existed prior to January 1, 2013, or has been included in subsequent agreements. (4)The retiree is a public safety officer or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter. (g)A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement and subdivision (f) shall not apply. 4 15 of 17 September 1, 2020, Item #6City of Poway Managed Security Services Provider RFP (h)This section shall not apply to a person who is retired from the State Teachers' Retirement System, and who is subject to Section 24214, 24214.5 or 26812 of the Education Code. (i)This section shall not apply to (1) a subordinate judicial officer whose position, upon retirement, is converted to a judgeship pursuant to Section 69615, and he or she returns to work in the converted position, and the employer is a trial court, or (2) a retiree of the Judges' Retirement System or the Judges' Retirement System II who is assigned to serve in a court pursuant to Section 68543.5. History Added Stats 2012 ch 296 § 15 (AB 340), effective January 1, 2013. Amended Stats 2013 ch 528 § 11 (SB 13), effective October 4, 2013 (ch 528 prevails); ch 76 § 75 (AB 383), effective January 1, 2013; Stats 2014 ch 238 § 1 (AB 2476). effective January 1, 2015. Annotations Notes Amendments: Note-Amendments: 2013 Amendment: Substituted (1) "have passed" for "has passed" in the first sentence of subds (f)(l) and (f)(2); (2) "or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter" for "of firefighter" in subd (f)(4); and (3) "Judges' Retirement System" for "Judges' Retirement System I" in subd (i). 5 16 of 17 September 1, 2020, Item #6ATTACHMENT 2 Quote# BR-081420-1 SAVANT SOLUTIONS Your Trusted IT Advisor Date: Terms: FOB: 8/14/20 NET30 Destination 1007 7th St, 5th Floor Valid for: 30 days Sacramento, CA 95814 Shipping: Ground (916) 836-8182 saies@savantsoiutjons net dTo City of Poway Attn: Accounts Payable 13325 Civic Center Dr. Poway, CA 92064 Phone: LIM• PlrtNo. 1 AW-MDR-U 2 AW-MDR-SE 3 AW-MDR-1Y 4 AW-MDR-2XX-S Delcrlpllon Arctic Wolf MDR 220 Users license Arctic Wolf MDR server license Arctic Wolf MDR Log Retention - 1 year Arctic Wolf 200 Series Sensor Ship To City of Poway Attn: Brad Rosen 13325 Civic Center Dr. Poway, CA 92064 Phone: (858) 668-4452 at, 1 53 1 2 5 AW-MDR-0365 Arctic Wolf MDR Office 365 user license 315 6 AW-MDR-OB Arctic Wolf MDR Onboarding (One time fee) 1 7 AW-MR-U Arctic Wolf Managed Risk 220 Users 1 8 AW-MR-SE Arctic Wolf Managed Risk server license 53 9 AW-MR-OB Arctic Wolf Managed Risk Onboarding (One time fee) 1 Subtotal: Notes: 3 year contract with annual payment. 5% increase after 3 year Tax: contract. Cost will increase for log retention when you extend retention to Credit: 2 years. Shipping: Total: Thank you for giving Savant Solutions the opportunity to support you! Each order helps supports a non-profit in need. www.SavantSolutions.net 17 of 17 UnltPrtce $65,910.00 $278.00 $6,500.00 $5,000.00 $39.00 $3,700.00 $30,150.00 $70.00 $3,500.00 Ext. Price $65,910.00 $14,734.00 $6,500.00 $10,000.00 $12,285.00 $3,700.00 $30,150.00 $3,710.00 $3,500.00 $150,489.00 $0.00 $0.00 $0.00 $150,489.00 September 1, 2020, Item #7DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT September 1, 2020 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services f.M Oda Audish, Associate Planner C,:J,..'q 858-668-4661 or oaudish@poway.org City of Poway CITY COUNCIL Minor Conditional Use Permit 19-005: a request to keep two existing seatainers and add a third seatainer for the North Park Produce market located at 12342 Poway Road This action is a Minor Conditional Use Permit (MCUP) request to keep the existing two metal storage containers (seatainers) and add a third seatainer to address immediate storage needs behind North Park Produce market located at 12342 Poway Road within the Commercial General (CG) land use district of the Poway Road Specific Plan (PRSP) area. North Park Produce will be pursuing a permanent solution for its storage needs if and when it receives an extension of its lease in early 2023. There is no proposal to modify the operations of their current facility as part of this application. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: The business subject to this request is the North Park Produce market with a restaurant and bakery located at 12342 Poway Road. The market is part of the approximately eight-acre Poway Plaza shopping center that is located at the northwest corner of Poway Road and Pomerado Road within the Commercial General (CG) land use district of the Poway Road Specific Plan (PRSP) area. The project applicant is Merlone Geier Management, LLC, property management company for Business Properties Partnership No. 16 who owns the Poway Plaza center. The center borders commercial development to the east, south and west and residential development to the north. A location map is included as Attachment B. North Park Produce is requesting approval to keep two existing seatainers that are located within its delivery area behind the restaurant/bakery portion of their lease space. It is also requesting a third seatainer to be placed adjacent to the other seatainers to better accommodate storage needs. The 1 of 14 September 1, 2020, Item #7three seatainers measure a total of 576 square feet. The site plan and building elevations are included as Attachments C and D. The business has outgrown its storage area contained within the building which has resulted in staging and storage occurring within the parking lot as well as problems with trash accumulating outside designated disposal areas. At times, these issues have become a nuisance to the surrounding area and resulted in stormwater issues. Over the years in response to having received complaints and conducted storm water inspections, staff has been working with North Park Produce to find a solution to the lack of sufficient storage and waste disposal. In April 2015, staff approved Minor Development Review Application (MORA) 14-015 for a 2,500-square-foot addition that would provide for additional storage and an indoor trash/recycling area. The addition would have been located within the existing outdoor delivery area behind the store. However, in 2017, North Park Produce abandoned the construction of the addition when it learned that its lease, which expires in early 2023, might not be renewed. While North Park Produce considered its options, staff approved a Temporary Use Permit (TUP) 18-047 in March 2019. This was to allow for the installation of two seatainers at the site to address the immediate storage needs. Per City policy, seatainers are allowed on a site for up to 90 days with the approval of a TUP. The applicant subsequently applied for the MCUP to allow the two seatainers to remain until it would be known if the lease would be renewed. During the review of the MCUP it became evident that the two seatainers were not sufficient to accommodate the storage needs which resulted in prolonged outdoor staging of delivered goods in addition to trash and litter issues. To address these concerns, the application has been modified to add a third seatainer. The application also includes the construction of a trash enclosure that will accommodate both regular, recycled, and food waste. The MCUP requirement for a seatainer is to provide an alternative to traditional storage buildings while ensuring that the placement and appearance of the seatainer is appropriate given the surrounding neighborhood. The seatainers are placed towards the rear of the shopping center behind their building and therefore not visible from surrounding streets or the parking lot. The seatainers are minimally visible from the homes to the north because of intervening landscaping and the homes are located about 30 feet higher in elevation compared to the Poway Plaza center. All seatainers are required to be painted off-white to match the exterior of the building. Although the seatainers will not be highly visible and no recent complaints have been received from neighbors, staff believes that it is appropriate to set a time limit on the use of seatainers considering their proximity to neighboring homes and in support of high-quality commercial development. The lack of storage for North Park Produce is not a seasonal concern as is often experienced by other retail businesses. It's been a continuous issue for years as is evident with their initial plans to construct a 2,500 square-foot addition to address their needs. Deliveries made to the seatainers will result in more outdoor noise-generating activities as opposed to deliveries made directly into a building where forklifts and other motorized equipment receive the merchandise and can maneuver indoors. In cooperation with the applicant and owner of North Park Produce, the Resolution (Attachment A) includes a condition of approval requiring all of the seatainers to be removed three years from the date of the MCUP approval which is approximately six months after the lease has expired. By that time North Park Produce will know if they will remain at this location and they can address a permanent solution to their storage needs. 2 of 14 September 1, 2020, Item #7Environmental Review: The project is Categorically Exempt from the California Environmental Quality Act (CEQA), as Class 4 Categorical Exemptions, Section 15304(e) of the CEQA Guidelines, in that the project involves the addition of temporary structures within an existing paved area that will not have permanent effects on the environment. Fiscal Impact: None. Public Notification: A Notice of Public Hearing was published in the Poway News Chieftain on August 20, 2020. A public notice was mailed to property owners and occupants located within 500 feet of the project site. Attachments: A Resolution approving MCUP 19-005 B. Zoning and Location Map C. Proposed Site Plan D. Proposed Building Elevations Reviewed/ Approved By: Assistant City Manager 3 of 14 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager September 1, 2020, Item #7RESOLUTION NO. 20-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING MINOR CONDITIONAL USE PERMIT (MCUP) 19-005 FOR THREE SEATAINERS BEHIND NORTH PARK PRODUCE AT 12342 POWAY ROAD; ASSESSOR'S PARCEL NUMBER 317-153-21-00 WHEREAS, on April 17, 2015, Minor Development Review Application (MORA) 14-015 was approved by the Development Services Director for a 2,500 square-foot storage area and covered trash/recycling area attached to the existing North Park Produce market located at 12342 Poway Road, in the Commercial General (CC) land use district of the Poway Road Specific Plan. The addition was not constructed because the existing lease may not be renewed with the new property owner; WHEREAS, on March 27, 2019 the City of Poway approved Temporary Use Permit (TUP) 18-047 to allow the installation of two metal storage containers (seatainers) behind the North Park Produce market for up to 90 days to provide needed storage in addition to the capacity provided within the building. The seatainers are still at the site because North Park Produce continues to need additional storage; WHEREAS, on August 22, 2019, Merlone Geier Management, LLC requested approval of Minor Conditional Use Permit (MCUP) 19-005 to allow North Park Produce to keep the two existing seatainers and install a third seatainer until a permanent solution to the storage needs can be feasibly provided; WHEREAS, on Sep 1, 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: The project is Categorically Exempt from the California Environmental Quality Act (CEQA), as Class 4 Categorical Exemptions, Section 15304(e) of the CEQA Guidelines, in that the project involves the addition of temporary structures within an existing paved area that will not have permanent effects on the environment. SECTION 3: The findings, pursuant to Section 17.48.070 of the Poway Municipal Code (PMC), to approve MCUP 19-005 to allow the keeping of a seatainer, are made as follows: A. The location, size, design and operating characteristics of the proposed 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 the seatainers are permitted with the approval of an MCUP, and they will be painted to match the color of the adjacent buildings and have been sited in the rear of the property and will 4 of 14 September 1, 2020, Item #7Resolution No. 20-Page 2 otherwise comply with all of the relevant codes and standards of the City of Poway. 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 seatainers are placed in the rear of the property and will be screened from view from neighboring residential properties by existing landscaping and from the public right-of-way by existing landscaping. C. The seatainers' color will visually blend in with the existing commercial development and the use of the area where the seatainers would be located will not change other than more goods can be promptly placed within a storage facility as they are delivered. Therefore, the harmony in scale, bulk, coverage, and density of the project is consistent with adjacent uses. D. There are adequate public facilities, services, and utilities available at the subject site to serve the proposed use. E. The storage container has been sited to comply with the General Plan and PMC standards, and its color is compatible with surrounding development. Conditions of approval are required of the seatainer use which are intended to minimize the potential for negative impacts on the adjacent residential neighborhood. Therefore, there will not be a harmful effect upon desirable neighborhood characteristics. F. The keeping of the seatainer will not adversely impact the capacity and physical character of the surrounding streets and/or the Circulation Element of the General Plan. G. The site is suitable for the type and intensity of use or development that is proposed in that the seatainer would be kept on a large commercial property adjacent to a residential neighborhood where the keeping of storage structures that do not match the architecture of the main residence are common. H. There will not be significant harmful effects upon environmental quality and natural resources in that the seatainer would be kept in an area that is currently paved. I. There are no relevant negative impacts of the proposed use that cannot be mitigated. J. A seatainer is an allowable accessory use in the Poway Road Specific Plan zone with the approval of a MCUP. 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. The proposed use will comply with each of the applicable provisions of PMC Title 17 (Zoning Ordinance). SECTION 4: The City Council hereby approves MCUP 19-005 as shown on the approved plans stamped "Exhibit A" and dated September 1, 2020 on file in the Development Services Department, except as noted herein and subject to the following conditions: 5 of 14 September 1, 2020, Item #7Resolution No. 20-Page 3 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 reasonable attorney's fees, collectively the "Claims" against the City or its agents, officers, or employees, relating to the issuance of any aspect of the project approval set for in this resolution, including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval (including but not limited to TTM 19-004 and MDRA 18-014) and any environmental document or decision made pursuant to CEQA. 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. Notwithstanding the foregoing, no indemnity shall be required for claims resulting from the exclusive gross negligence or willful misconduct of the City. B. This approval is based on the existing site conditions and proposed project details represented on the approved plans stamped as "Exhibit A" and dated September 1, 2020 on file in the Development Services Department. Any substantial changes to the approved plans must be approved by the Director of Development Services and may require approval of the City Council if the Director of Development Services finds that the proposed changes do not substantially conform to approved plans. C. The developer is required to comply with the Poway Noise Ordinance (Chapter 8.08 PMC) requirements that govern construction activity and operational noise levels. D. The two existing unpermitted seatainers shall be removed by December 1, 2020 unless prior that date a building permit for the seatainers and the trash enclosure has been obtained. The trash enclosure shall be installed by February 1, 2021. E. All seatainers shall be removed from the site no later than September 1, 2023, unless prior to that date a request for a time extension is submitted to the Development Services Department and a time extension is subsequently granted by the City Council. F. The conditions for the project shall remain in effect for the life of the subject property, shall run with the land and be binding upon future owners, successors, heirs, and transferees of the current property owner. G. Prior to 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. H. Prior to building permit issuance and continued use of the seatainers, unless other timing is indicated, the following conditions shall be complied with: 6 of 14 September 1, 2020, Item #77 of 14 (Building) Resolution No. 20-Page 4 1. The development shall comply with the current addition of the California Building Code, California Plumbing Code, California Mechanical Code, California Electrical Code, California Residential Code, California Fire Code, California Energy Code and California Green Code at time of submittal to the Building Division. All development shall comply with state structural calculations and seismic safety requirements. (Engineering) 2. All spoil materials from footings and foundations shall be legally disposed of off. site or if the material is to remain onsite, the material shall be placed per the requirements of the City grading ordinance. 3. The 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. 4. Applicant shall pay a minimum cash security deposit for erosion control. 5. 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. The applicant's action plan that identifies measures to be implemented during construction to address erosion, sediment and pollution control will be discussed. Compliance for sediment control shall be provided as directed by the project inspector. 6. Erosion control shall be installed and maintained by the developer from October 1 to April 30 annually. The developer shall maintain all erosion control devices throughout their intended life. 7. The applicant shall pay the storm water pollution inspection fee according to the latest adopted master fee schedule. 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. 9. Concrete paving shall be provided in front of the trash enclosure to the satisfaction of the City Engineer to prevent paving from breaking up from use of sanitation vehicles. (Planning) 10. Approval of this request 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. 11. The building plans shall show the seatainers to match the color of the building. 12. Trash receptacles shall be enclosed by a six-foot-high masonry wall, with view-obstructing gates, and shall provide an area for recyclable materials. The trash September 1, 2020, Item #7Resolution No. 20-Page 5 enclosure shall be architecturally compatible with the buildings. The enclosure should be large enough to fit a four-yard trash bin, a four-yard recycled bin and organics carts. Trash receptacles shall be covered. I. Compliance with the following conditions is required prior to building permit final and release of securities: 1. The site shall be developed, and the building elevations shall be constructed 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. Any extension of proposed or existing utilities required to serve the project shall be installed underground. 3. The applicant shall repair, to the satisfaction of the City Engineer, any and all damage to public improvements caused by construction activity from this project. J. Upon establishment of use, the following conditions shall apply: 8 of 14 1. MCUP 19-005 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. 2. This MCUP authorizes the use of seatainers for storage purposes only. No other uses or occupancy, such as an office or other alternate use, would be allowed, unless permissible under the PMC and approved by a permit. 3. Seatainers being utilized for storage and approved under this MCUP application may not be structurally modified or altered unless approved by the City; no shade covers or utility connections are allowed unless in conformance with applicable building codes, the PMC, and/or an approved permit. 4. The applicant shall maintain the exterior areas in a clean and sanitary condition, free of litter, trash, food waste, and debris. 5. No exterior storage of materials, items, or stock may occur on the premises. 6. Usage of trash enclosures shall be limited to the keeping and storage of EDCO waste containers only, and may not be utilized for storage of other materials or items. No waste containers may be kept outside trash enclosures. 7. 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. 8. All facilities and related equipment shall be maintained in good repair. Any damage from any cause shall be repaired as soon as reasonably possible so as to minimize occurrences of dangerous conditions or visual blight. September 1, 2020, Item #7Resolution No. 20-Page 6 9. The owner or operator of the facility shall routinely and regularly inspect the site to ensure compliance with the standards set forth in this approval. 10. All lighting fixtures shall be maintained such that they reflect light downward, away from any road or street, and away from any adjoining residential development. 11. 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. 12. Upon termination, expiration or revocation of this MCUP, the identified seatainers shall be removed under an issued demolition building permit with a "pass" result for all necessary inspections, to be completed no less than thirty (30) days from the MCUP end date. K. The following conditions shall be complied with to the satisfaction of the Fire Chief: 1. Fire apparatus access roadway around the parking lot and rear alley shall have 20 feet of unobstructed width with a minimum of 13 feet 6 inches of vertical clearance maintained adjacent to the project. Fire Lanes shall remain clear at all times, including the parking of vehicles. SECTION 5: The approval of MCUP 19-005 will expire on September 1, 2023 at 5:00 p. m., except if prior to that time, appropriate conditions of approval herein have not been complied with. SECTION 6: 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. 9 of 14 September 1, 2020, Item #7Resolution No. 20-Page 7 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 1st day of September, 2020 by the following vote, to wit AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, Interim City Clerk 10 of 14 September 1, 2020, Item #7N $ 0 87.5 175 --350 Feet ---11 of 14 RS-4 CITY OF POWAY Zoning I Location Map Item: MCUP 19-005 ATTACHMENT B RR-A September 1, 2020, Item #7Two Existing r ~ .. ' ' ;] , And One Propo ~ Seatainer ' 12 of 14 NewTras E closure ~ 11 ff 11 DUlJ.i l I ~ ~ I I I 1·111111 ~L .ii SITE PLAN ATTACHMENT C September 1, 2020, Item #7• • ' ' i I . • .. I New Trash • j Enclosure • l 1-v-·v-v-f '' 11 11 'I I I 11 '' ;i~, • mmmm ~ • ,, ... it· '1 i ~ ' i : or ark Produce ,, 11 PROPOSED STORAGE CONTAINERS & TRASH ENCLOSURE.§j 13 of 14 l September 1, 2020, Item #7New Trash Enclosure 14 of 14 SOUTH ELEVATION O NEW WORK THIS ELEVATIO Proposed Seatalner WEST ELEVATION ........ NORTH ELEVATION ATTACHMENT D 1"4f'" New Trash Enclosure Proposed Seatainers e September 1, 2020 , Item #8M EMQRAN DLJ M City of Poway DATE: TO: FROM: SUBJECT: Summary: September 1, 2020 Members of the City Council John Mullin, Councilmember Affordable Housing Project There is no question that there is an enormous need for affordable housing throughout the County. Poway is certainly no exception. We can and should take pride in the role the City has played producing our existing affordable housing projects -and even more so with regard to the affordable projects under construction -Villa de Vida and the affordable component in the Meridian project (Poway Commons). I am proposing that we don't stop there. We should do what we can to help produce affordable housing both because it helps satisfy our Regional Housing Needs Assessment (RHNA) allocations and because it is the right thing to do. Our Housing Authority currently owns three prospective sites for affordable housing: Monte Vista, Twin Peaks and Big Stone Lodge. In the past, we have expressed a desire to focus on providing affordable housing for veterans. Additionally, after having watched the overwhelming response to Villa de Vida by the developmentally disabled community, it is abundantly clear that this is also an underserved segment of the affordable housing demand. Recommended Action: I am seeking Council concurrence to direct staff to prepare a Request for Proposals from the producers of affordable housing to suggest a project with the following guidelines: • The proposal may be for any of the three housing sites; and • The proposal should include a mix of market and income segments with approximately half of the units designed for developmentally disabled adults and the remaining targeted for veterans. I am aware of how complex the regulations are for these projects and how difficult they can be to finance and construct. Consequently, I am suggesting that we not include specifications beyond these and then evaluate the proposals to see how close we can get to meeting these objectives. Attachments: None. Reviewed/Approved By ~r( ~ ~ Wen~Kaserman Assistant City Manager 1 of 1 Reviewed By: Alan Fenstermacher City Attorney Approved By: c~ City Manager