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04-16-19 Agenda PacketItem 1 . 1 Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on Agenda. W9r City of Poway COUNCIL AGENDA REPORT n" w TME DATE: April 16, 2019 TO: Honorable Mayor and Members of the City Council FROM: Donna Goldsmith, Director of Finance% CONTACT: Andrew White, Interim Finance Manager 858) 668-4426 or awhite(&poway.org APPROVED APPROVED AS AMENDED SEE MINUTES) DENIED REMOVED CONTINUED RESOLUTION NO. SUBJECT: Ratification of Warrant Registers for the Periods of March 11 through March 15, 2019, and March 18 through March 22, 2019 Summary: The attached warrant register reports for the periods of March 11 through March 15, 2019, and March 18 through March 22, 2019 are submitted to the City Council for ratification/approval. Recommended Action: It is recommended that the City Council ratify/approve the attached warrant registers. Discussion: Weekly registers of audited demands are periodically submitted to the City Council by the Finance Director for ratification/approval. Date March 11 through March 15, 2019 Amount 2,886,871.92 Warrants for amounts in excess of $100,000 for this period include: Warrant Payroll 2-1-19, Retirement Payroll 2-15-19, Retirement Treasury Note Investment Purchase Payroll 3-15-19 Date March 18 through March 22, 2019 Check Number 905042 905044 905045 905046 Amount 1,326,753.61 Warrants for amounts in excess of $100,000 for this period include: Warrant February 2019 Law Enforcement Services Environmental Review: This item is not subject to CEQA review. Amount 128,899.64 122,943.50 1,533,531.73 526, 870.13 Check Number Amount 403885 $1,036.749.61 April 16, 2019, Item #1.2 1 of 24 Fiscal Impact: The total amount of warrants for the period of March 11 through March 15, 2019 is $ 2,886,871.92. The total amount of warrants for the period of March 18 through March 22, 2019 is $1,326,753.61. Public Notification: None. Attachments: A. Warrant Register for the period of March 11 through March 15, 2019 B. Warrant Register for the period of March 18 through March 22, 2019 Reviewed/Approved By: Reviewed By: Approved By: ' / Wendy Kaserman Alan Fenstermacher Tina M. 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V m m 9 9 9 O m M m w r Om ZE w a 0O 3z J r m W m Cd Q y 0 22 0 io w z m a LL LL LL ( 07 CN 9 f C m m m m O m m m m mmE U D O N N N N O w N U a N N N rnAy y m M m M m 0 m M M Uz a a v v 17 of 24 z Z 0U w ZO00 U zw W 0zPW,, so m m m m o r ry iv m m M V M M O O N trl ( V m IA h N fA th N t9 maiOadU O O O O O O O O O O O O c e a a a a v v a a a a o O O O O O O O O O O O O O O O O O O O O O O O N M N N M i0 m N N O r M M N 0 0 0 0 o M o M Om1 O N N N N N N N N N N O In IA m m O N O U Z F U O U 0 5 a a a a a JQ U LU w m w N Q O O w aW 02 Z W 0 ¢ o Sm 2 m O O O O O N N N w U U) U zJO U J J ZU ( zz z w z ZU K a 7 W mM 71 m m m m m m m m m g i i m N N N N N N N N N N N N m N N N tN0 M m m m M M M M M M M M v v a a s April 16, 2049, I$ em # 1. 2a a o a rn a y a o w y T 6 O C N m V m m 9 9 9 O m M C lV O O O O O N N N w UU) U zJO U J J ZU ( zz z w z ZU K a 7 WmM 71 m m m m m m m m m g i i m N N N N N N N N N N N N m N N N tN0 M m m m M M M M M M M M v v a a s April 16, 2049, I$ em # 1. 2a a C h M O) m y M O 0 n N 0 O m m M' N M O O O N N M O lel m O C a a N O a O O) n N O O O O 0 O) n In O 1N O 0) D) N h a N 0 O 0 In 0 O a N n m a O f9 V m m n N m T h m N m m Q N m V m m m f9 f9 Y3 fA fA t9 fA M N M a U f9 fA f9 f9 fA fA eA dL U o_ v of of m m m a a a a Y d d L L L U U U 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 d o 0 0 0 0 0 o N o 0 0 O o o 0 o O 0 o O 0 a a a a a n m o m o rn m m rn m rn m N N a n n n n r m a n O a a a a a F n a m a a a a a a a a a o a a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 O N 0 0 0 0 0 0 0 O O O 0 0 M M M M M m M N a M M M M M M M m m O O O O O O O N p O O N m 3 0 0 0 LLWU) O d m Y a N n 5 c v 9 tt v v o x m @ d 6 6 6 Na. m C N N i d N Nm N o C w D= ' . o W a . a _ c m v w O n O' w # # 4 w U)` o ' o o K U m w ° o c o ' m o w Q o O d N N N _ N A C U U ' N C C C Y C Y qLLq 1A N Y r fn m v v 75 75m g 8 m m . 22 2 W " c N ' c 2 ami o . d d g w w w F- U f m 7 J 7 IL U) M IL ll. 0 a ~ E o O a z o = NN 0 0 z m W o W 0 O] r m N a N 0 0 0 o m m m w o cNo t8 o m m O v' m N r O m NM maL U 0 0 0 0 0 0 0 0 0 0 m m m m m a a v o v a a v a a m c 0 0 NO M a v N Ez Uz 0 y m wH a n dT w a LL m a J 0 N Yk r NO M 0 m rn a m m a> M V Nm OU Tm EvE 0 O Q N 0. z n y CN12V E a0 rnm m E M N a c? 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T T T N N T A U U U T T T c . E . E m m s s y E E x E E E ' Z ' 2 ' 2 E E x x 3 E w LL > E E E LD o o N U m m 3 3 3 ur tVpNpo1 E E s t E E E E E E E E EM i6 OEO E E O EO N 6 D O d d O O O O - 0- 0 2 d d N N N 9 d W W d vC C C C C C - p p C C C C C S LL LL u. LL 3: 7 7 7 7 7 7 iLL LL. iL U U U 7 7 7 7 7 9 9 O OW O O N O m N m N t0 ( D r m N N m CO m aD N m D 0 a a 0 0 0 m m m N N O W W 0 0 W W W 000000On000 0 W O 00 3 o O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o O O 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o N LL LL m m m m m m m m m m m m m m m m m M m m m April 16, 2019, Item # 1. 2 K J 7 J A O z O z W U x O w CL O LL K a O z 0 O d a F F J w0 w O ¢ LL vi N N Of O rn m m m m i g c N N N r N m d 0 d M T 07 N m 0 00 M M COS W 0 0 a a 0 d 0 0 m a April 16, 2019, Item # 1. 2 Ga M N N W N M I M M M M O p _^ N N V O O O yy r M O O p O O M O M V V N N M M M M M N M M M O 10 N N M M M N h O O V V M V M M ( O M M N I O m Q O O O N O E N f0 t9 fA f9 M f9 N f9 ' fA M M M O M M M M M M M N ( h Fp O O O fV f9 f9 f9 rN V9 h ( O N M fA t9 fA f9 to to f9 di fA fA fA fA M TY V3 to di fA N d L N ° a m m y 0 0 0 0U Y L L d U U U ani m o o N Mm o o apo o OW , Q a p c - --- o 0 0 0 0 0 0 0 N N N N N N N N O O O 0 0 a o a v v a a v v a v v o O n N M'1 M M tM') M of o ro M a v uni uri = a s H O O O O O O O O p O a O O O O O O O O O pV O O N0OOOOOyOyNOOOO O O n NO i0 i0 O N i0 h V N N V N N M N N N N N N M M M Q N N O O G O O O O O O O O O O O O M M F m A Nl N 3 I? V LL d N A A a' N VI N U ' Z U U 7 7 7 r N O N d 7M f3 p j 3 o N N m Z3 T T ajN N Z aJ Y N p N Y Yy 1 € € C O T J O 1= N O Y Y N AI O M N J C O V% M J J U U U U U C ( a' O 6 m a E E Y 7 7 3 o v Z m iri m N 8' v c c m m m m O m m€ a a r s a v ci ° ° ° E a€ o o o o _ m _ m m c v EE v m v a1 v y g v M d ' C ' C g N O A3 N N N d y N N A A N ° d N O D 7 2 2 J f- a LL u! g a J J J J J a F D! j a N M M 0 wN wo N p n W O E M OM1 01 01 O O OM1 M O O N V V N n O N N O J M M f0 t0 M f0 h h M M M N O ( yp Z 0 f0 l0 - D i0 ( O M M M tp ( p t00 M a s N a N A O N tp0 t00 U O O O O O O O O O O O O O N N N # Q O 01 N w M l0 0 t0 l0 N O t0 M M t0 O aD OD OD m m m m GND ^ M'J M M M M M M M M M M M M N M m m M M M M m m m U y z } O w H y N z w w N w u o M a o p ¢ K K K U Q O = 3 3 3 c z w ° m m 0 w z z z w m a O> O O O U w w U 2 Fr 5 m a > > > > > > > O> O> 0 LM M M M M M M m M M M M m ani ` m ` m m m ` m m d E U i i i --- i g O N N N N N N NOr N N N N i Yj ONl W N A pMj A O M O O EM M M M M M M M M M z' a o e ru 1t 2019 Item # 1. 2 a s 23 of 24 C O O O O d O r o N a r r m d 1"! d ' O W at U w a A Z U 0 d W 0 r 0a` m E w a M 3w rc 0 0 p trp N a a a24 of 24 April 16, 2019, Item # 1. 2 WaZ a r mC WWZZ UJ W0 WZN E w a M 3w 9 W Z a N KT m0 ik N dv 2 a> a N Q O N i m m C a d£ UO LL O CM11 tl L Y g U N O yU Uz a a D 24 of 24 April 16, 2019, Item # 1. 2 OXY OF POW'9y City of Poway COUNCIL AGENDA REPORT Com' IA' THE J DATE: April 16, 2019 TO: Honorable Mayor and Members of the City Council FROM: Faviola Medina, City Clerk K 858) 668.4535 or finedinaPpoway.org SUBJECT: Approval of Minutes Summary: The City Council Meeting Minutes submitted hereto for approval are: March 19, 2019 Regular City Council Meeting Minutes APPROVED APPROVED AS AMENDED SEE MINUTES) DENIED REMOVED CONTINUED RESOLUTION NO. 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 Minutes as submitted. Public Notification: None. Attachments: A. March 19, 2019 Regular City Council Meeting Minutes Reviewed/Approved By: Reviewed By: Approved By: Wendy Kaserman Alan Fenstermacher Tina M. White Assistant City Manager City Attorney City Manager 1 of 9 April 16, 2019, Item #1.3 NOTE. 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 March 19, 2019 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 Mullin, Leonard, Frank, Grosch, Vaus STAFF MEMBERS PRESENT City Manager Tina White; Assistant City Manager Wendy Kaserman; City Attorney Alan Fenstermacher; City Clerk Faviola Medina; Development Services Director Bob Manis; Finance Director Donna Goldsmith; Human Resources/Risk Management Director Jodene Dunphy; Director of Public Works Michael Obermiller; Fire Chief Mark Sanchez; Lieutenant Chris Collier, Sheriff's Department. Note: Hereinafter the titles Mayor, Deputy Mayor, Councilmember, City Manager, Assistant City Manager, City Attorney, City Clerk and Director of Finance shall be used to indicate Mayor/Chair, Deputy Mayor/Vice 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 Grosch led the pledge of allegiance. PRESENTATION Councilmember Grosch presented a proclamation to the American Legion in recognition of 2018- 2019 American Legion Centennial Day. PUBLIC ORAL COMMUNICATIONS Ann Tipps expressed concerns with car accidents occurring along Poway Road and Carriage Road. Chris Olps spoke regarding car accidents occurring along Poway Road. Lynette Perkes expressed concerns with City growth and developments 2 of 9 April 16, 2019, Item #1.3 1. CONSENT CALENDAR 2. City of Poway — Minutes — March 19, 2019 Motioned by Councilmember Mullin, seconded by Councilmember Leonard to approve Consent Calendar Items 1. 1 through 1.6. Motion carried by the following roll -call vote: Ayes: Mullin, Leonard, Frank, Grosch, Vaus Noes: None Absent: None 1.1 Approval of Reading by Title only and Waiver of Reading in full of Ordinances on Agenda 1.2 Ratification of Warrant Registers for the Periods of Feb r -""'11 through February 15, 2019, and February 18 through February 22, 2019 1.3 Approval of the February 19, 2019 Special and Iar Council Meeting Minutes; the March 1, 2019 Special City Council Meeting n es; anMarch 2, 2019 Special City Council Meeting Minutes 1.4 Annual Report — Implementation of the I Plan in 2018pP , Dee Fleischman submitted a speaker slip 1.5 Acceptance of the Swim Inc. Chris Olps spoke rpg gr the 1.6 Acceptance of ' cil Cha ' j rs AV 91 of San Diego, Ir%jk 2.1 o speak. d No. 18-008, Hamel Contracting, lba n el ovation project P id No. 18-003, Audio Associates with California Senate Bill 946 Citr rney Fenster" her nted the report along with a PowerPoint presentation. i Mr. F+rmacher sta hat th posed ordinance establishes rules and regulations consist th state la allow a City to regulate sidewalk vending. A resolution establishing for sidevj vendor permits and appeals will be brought back for CouncilconsiderationjeApril019regularCityCouncilmeeting. Chris Olps expressgq ms with the proposed limitations. Council discussion ensued regarding fees, enforcement and clarified that the City would not be enforcing this ordinance against children's lemonade stands. As requested by the Mayor, City Clerk Medina titled the Ordinance. Motioned by Councilmember Leonard, seconded by Councilmember Mullin to introduce Ordinance No. 826 entitled "An Ordinance of the City Council of the City of Poway, California, adding Chapter 5.22 to the Poway Municipal Code and amending section 9.48.240(A) of the Poway Municipal Code relating to regulation of sidewalk vendors." 3 of 9 April 16, 2019, Item #1.3 City of Poway — Minutes — March 19, 2019 Motion carried unanimously by the following roll -call vote: Ayes: Mullin, Leonard, Frank, Grosch, Vaus Noes: None Absent: None 3. PUBLIC HEARING 3.1 Poway Commons LLC Purchase, Sale and Development Agreement Councilmember Mullin announced that he would recuse himself from the vote on Item 3.1 due to a conflict of interest. His company completed wof' 'th Chelsea Investments withinME the last 12 months Ma 2018). Councilmember Mullin left the dais at 7: 51 p.m. I City Manager Tina White introduced ther followed b` ON i4' Administrator Craig Ruiz. Mr. Ruiz state a City entere Agreement with Meridian Developmen and Sudberry Purchase, Sale and Development Agree" t for a mi ed - and an Affordable Housing and Property Dii jitio r project. Neutral speakers: Chris Olps Guy Asaro, applicant, spoke in Motioned by D 1VV1 Groscl public hearin .„„ption ca d 4/0, Motioned by Cou Resolaffid'*Ajo,1 f of 31% 01-06, and (IW/ City ' the City i Council fatber Mullin resentation by Economic Jpn Exclusive Negotiation oi. esInc to negotiate a n4%; te development foprdable housing ifinember Frank to close the Mullin disqualified. onded by Deputy Mayor Grosch to adopt of the City Council of the City of Poway, O. nd Development Agreement with Poway bearing Assessor's Parcel Number 317 - and the northerly approximately .64 scres Implementation Agreement between the Authority.” Motion carried 4/0, with Acting as Hoi Au ity, motioned by Councilmember Leonard, seconded byi, i /, Deputy Mayor it dopt Resolution No. H-19-01 entitled "A Resolution of the City of Poway Ho ° a uthority (1) approving an Affordable Housing and Property Disposition Agreem with Poway Commons, LLC, for the southerly approximately nine tenths acres of Assessor's Parcel Number 317-101-06, and a Property Exchange Implementation Agreement between the Housing Authority and the City, and (11) declaring Assessor's Parcel Numbers 317-420-01 and 317-420-06, and the southerly approximately .9 acres of Assessor's Parcel Number 317-101-06 not needed for foreseeable needs." Motion carried 4/0, with Councilmember Mullin disqualified. Councilmember Mullin returned to the dais at 8:26 p.m. 3. 2 Ordinance Amending the Poway Municipal Code Regarding Nuisance Abatement and Code Enforcement 4 of 9 April 16, 2019, Item #1.3 City of Poway — Minutes — March 19, 2019 City Attorney Fenstermacher presented the report along with a PowerPoint presentation. Mr. Fenstermacher stated that the purpose of the Ordinance is to 1) provide Code Compliance staff with all available tools for obtaining compliance; 2) update the Poway Municipal Code (PMC) so that it complies with applicable state law; 3) set forth the procedure for issuing courtesy notices and notices of violation prior to other code compliance penalties being enacted; 4) eliminate redundancies and simplify the PMC; and 5) update and add various provisions related to defining PMC violations and detailing procedures for enforcement, abatement and cost recovery. Chris Olps spoke regarding creation of an Appeals Board. Motioned by Councilmember Leonard, seconded uncilmember Mullin to close the public hearing. Motion carried unanimous) Council discussion ensued in support of the prdii, ince. ` City Attorney confirmed that the Ordinance establishes the City Coun i%% the appeal°! ard, unless Council takes action to designate a separate board coee. d of at least thr" eople. As requested by the Mayor, City Clerk M titled the Ordinanc/O//%, Motioned by Councilmemb Mullin, se Councilme g Leonard to introduce Ordinance No. 82 Y d "An Orth„ a of the City Coun of the City ofiilii Poway, California, Amending"r. ie s 1.02, LO;/x.10, 2.20, 8.72, 8.76, 8.80, 13.09, 15.02, and 17.54 Adding Chapt 1' d 15.32, . quDeleting Chapters 16.56, 16.68 and 8.84 of the Poway Municipal de f2 jjg to Co,,ompliance. Motion carried "`"rlfi flff f by AyesW% Noes: ////% jjNoIIL MR 3.3Jedti1. o,Itha Cc V%hons of the PA' ay Dire?'d' Decision to e a N Mayor Va announced th", the p 2019 Reciuler itv Council ileetin Grosch, Vaus i/nthe Property at 12825 Claire Drive Constitute de, and Upholding the Development Services Order to Abate Nuisance (Case No. 18-0044) erty owner has requested a continuance to the May 7, No motion was made to grant the continuance. City Planner Da oeF—resented the report along with a PowerPoint presentation andstatedthatthe hea N Tieing held pursuant to Chapter 8.72 of the Poway Municipal Code for the purpose of determining whether the junk and green waste accumulation, unlawfully stored vehicles/vessels, unpermitted accessory buildings, unpermitted garage conversion, unpermitted breezeway conversion, lack of functional smoke detectors, and other fire hazards on the property at 12825 Claire Drive constitute a public nuisance. Michael Bias, tenant at 12825 Claire Drive, spoke to request more time to voluntarily bring the property into compliance with City code. Franco Simone, attorney for the property owner, spoke regarding the progress the tenant has made to remove the accumulated junk and discussed the options the property owner is taking to bring the property back into compliance. 5 of 9 April 16, 2019, Item #1.3 City of Poway — Minutes — March 19, 2019 Motioned by Deputy Mayor Grosch, seconded by Councilmember Frank to close the public hearing. Motion carried unanimously. Council discussion ensued. In response to Council inquiry, City Attorney Fenstermacher explained that if the property owner were to voluntarily comply to clear the violations within 30 days from the declaration of a public nuisance, the abatement would not be necessary. Motioned by Councilmember Mullin, seconded by Ma or Vaus to adopt Resolution No. P-19-05 entitled "A Resolution of the City Coun / he City of Poway, California, Finding and Declaring Conditions Present at 12 sire Drive (0 Shirra Avenue), lIll/ Poway, California Constitute Violations of the Municipal Code and Upholding oma Development Services Department Decisio s Notice and Order to Abate Nuisance." Motioned carried unanimousl 4. STAFF REPORT 4.1 Acceptance of a Reimbursement Aret for C rt Pub f -° r v n nP9i„ i iii p o eme is andAcceptanceofPublicImprovementsinConjo''don e Casti lionsidence, WI17- 003 g Senior Civil Engineer Tracy B%/& i, MR/10 resented f Y report along with a PowerPoint presentation and stated that the / icari{ require xtend a public water main and o/ i .. install a fire hydran . 9 serve theiio,I opos a e ons` Canyon Road and provide entsfire ade uate r °moo%o a im ro ''' "' tete d ready for acceptance andqpii000 i.,,; p the applicant is sti burse `t t ve , ion of the cost of construction of the public wat;,in extenfrom futelopme that connect to the water main. No M a"T"r,' o ,cilydi er Muff/ F/-'/cdMed by Councilmember Leonard, to 1) 4 Resolutlo ./ 19- ntitled bsolution of the City Council of the City of Po F California' rove °''a he Reimbursement Agreement for Certain Public Imp ents in co ction h the Water Improvement Project WI17-003'; 2) Authon he May t xecutee Reimbursement Agreement; (3) Direct the City Clerk to /Td the Agri ant in the office of the San Diego County Recorder; (4) Accept the! rovem;n hown on drawing WI17-003 as complete; (5) Release the Performance d in t ount of $25,762.00; ( 6) Release the Payment Bond in the amount of $12,SH /od (7) Retain the Warranty Bond in the amount of $2,576.20 for a period of on Motion Motion passed unanimously. 4.2 Midyear/Second Quarter Budget Update for FY 2018-19 and Amendment to the Management/Confidential Salary Schedule Assistant City Manager Wendy Kaserman provided an update on revenue and expenditure projections and identified key budget amendments resulting in recommended appropriations. No speakers. 6 of 9 April 16, 2019, Item #1.3 City of Poway — Minutes — March 19, 2019 Motioned by Mayor Vaus, seconded by Deputy Mayor Grosch to adopt Resolution No. 19-016 entitled, "A Resolution of the City Council, Housing Authority, and Successor Agency to the Poway Redevelopment Agency of the City of Poway, California, approving Amendments to the City's Financial Program for the Second Quarter Fiscal Year 2018-2019 and amending the Management/Confidential Salary Schedule." Motion passed unanimously. 4.3 Award of Contract to Raftelis Financial Consultants, Inc. to Conduct a Comprehensive Cost of Service and Water and Sewer Rate Study and Provide Ongoing Consultant Support for Annual Water and Sewer Rate Calculations 4. 4 Assistant City Manager Wendy Kaserman presented th direction provided by the City Council at the February the City issued a Request for Proposals (RFP) for Water and Sewer Rate Study and ongoing consratecalculations. Additionally, the City will hol tT j a (3) t the proposed rate information prior to the inif n of any No speakers. Council discussion ensued. Council emph and the development of public r pterials that Motioned by Mayor Vaus, se " Raftelis Financial Consultant Study and Water & Sewer Rate' Annual Water a/ er Rate o/ / Execute all Ne bcumer Drt and stated that based on regular City Council meeting, iensive Cost of Services and t for annual water and sewer ouncil Workshops to present asition 218 process. nce of"i , ublic workshops and sewetes are derived. Grosch to award a contract to mprehensive Cost of Service 1 ing Consultant Support for prize the City Manager to e hreement. Motion passed Consideration of /l/M///esolulrd'h" Approvin a Submittal of a Hazard Mitigation Grant Applica; nd Appr'/'x'00 000 i unds for Hazardous Tree Removal from the i , P / e oma , Ge .. n.eserve , eme Its/Pu CSafety Account D dWor of Public s Mi t1:aJ Obermill€presented the report and gave an overview of i,,. o i, aii the „eral Emerge ana ;gent Agency (FEMA) Hazard Mitigation Grant Program HMG r. Obermdl ated t %e City filed a Notice of Interest, seeking a maximum of $2, 0 0 for the ha / ous trek removal mitigation project. If awarded, the City is require o jj 25 perce f the cost of the project. Dee Fleischma opreq,,€#1boncern with removal of hazardous and heritage trees. Council discussion eKO"ed. Director Obermiller clarified that heritage trees would not be affected and that the City's Fire Marshal and certified arborist will be involved in the process. Staff further clarified that the requested funds will be coming from the City's 45% Reserves and will not be spent unless we receive the grant. Staff estimates that we will have an indication on the grant award by December 2019. Motioned by Mayor Vaus, seconded by Deputy Mayor Grosch to adopt Resolution No. 19-017 entitled "A Resolution of the City Council of the City of Poway, California, approving a Hazard Mitigation Grant Application and Commitment Letter in the Amount of $500,000 for Hazardous Tree Removal and Appropriating $500,000 from the General Fund Reserve — Extreme Events/Public Safety Account as the City's Match to the Grant." Motion passed unanimously. 7 of 9 April 16, 2019, Item #1.3 5. WORKSHOP 6. City of Poway — Minutes — March 19, 2019 5.1 Workshop to Discuss Landscape Maintenance District Advisory Group Recommendations Assistant Director of Public Works Eric Heidemann presented the report and gave an overview of the background and history of the Landscape Maintenance Districts (LMD) 83- 1 and 86-1. Mr. Heidemann stated that the purpose of the workshop is to discuss the volunteer advisory group's recommendations for improving and maintaining the landscaping in LMD 83-1 and LMD 86-1. Ms. Toni Bates, Chair for the Advisory Group, presentede/Group's findings and proposal to the City Council with a PowerPoint presentation. //// Neutral speakers: Robert Hinzman, Dee Fleischm Cormick, Chris Olps and Dan Mathson. Council discussion ensued. Discussion Council appropriated last year have be be carried over to next fiscal year. Council recognized the hard w rkof staff ari" they felt they needed additio rmation a expressed that additional pub ;' ch, ed would be beneficial. It is clear to ballot last year but we don't know%Y. Council asked proposal. Coy 2019 Council r City Co r 1 also confirrr and raaed the Council and Le ings Died that only""Ism ion of the one-time funds d; approximately j 000 remains and can AY Group an indicated that n '" input from the G W, It was also ucaiand polling by the Advisory Group that a %roproperty owners didn't return aPPY ly so they can study their rational item at the May 7, we as they have been with respect to al assessment reports will be brought sf""es not have a continuing role with the Advisory Group to co p meeting independent of staff. continue the item to allow Council more time to consider ide staff direction at a future Council meeting. The Mayor and Council made announcements and reported on various events taking place in the City. No action was taken. COUNCILMEMBER COMMITTEE REPORTS - Pursuant to AB1234 — G.C. §53232.3(d) Councilmember Leonard gave an update on the recent meeting of the San Diego County Water Authority and gave a brief update on the lawsuit against Metropolitan Water District. 8 of 9 April 16, 2019, Item #1.3 City of Poway — Minutes — March 19, 2019 Councilmember Frank gave an update on the recent San Diego Association of Governments SANDAG) Public Safety meeting and reported on the Automated Regional Justice Information System (ARJIS). 7. CITY MANAGER ITEMS None. 8. CITY ATTORNEY ITEMS None. ADJOURNMENT The meeting adjourned at 10:37 p.m. alifornia 9 of 9 April 16, 2019, Item #1.3 G`,Y OF POWgy City of Poway COUNCIL AGENDA REPORT IN THE c Vd DATE: April 16, 2019 TO: Honorable Mayor and Members of the City Council FROM: Robert Manis, Director of Development Services CONTACT: David DeVries, City Planner 1 D 858) 668-4604 / ddevries@poway.org APPROVED APPROVED AS AMENDED SEE MINUTES) DENIED REMOVED CONTINUED RESOLUTION NO. SUBJECT: Approval of Consultant Agreement between the City of Poway and Dudek for Environmental Services for "The Farm" Environmental Impact Report (EIR) at the previous Stoneridge Golf Course (Specific Plan 19-001). Summary: The City released a Request for Proposals (RFP) to provide environmental consulting services for the preparation of an Environmental Impact Report (EIR) associated with a General Plan and Zoning Amendment and a planned 160 dwelling unit community with retail, educational, recreational and agricultural uses and amenities proposed at 17166 Stoneridge Country Club Lane at the location of a previous golf course (Stoneridge). The preparation of the EIR will be in compliance with the California Environmental Quality Act (CEQA). City Council certification of the EIR and City Council approval of a Specific Plan (SPP19-001) and associated planning permits in addition to a Proposition FF City-wide vote is required for project approval. Seven proposals were submitted with one disqualified as it was received after the deadline. After review of the proposals, Dudek was selected as the most qualified consultant to prepare the EIR. Recommended Action: It is recommended that the City Council authorize the City Manager to execute the Agreement with Dudek for environmental services for preparation of the EIR for "The Farm" Specific Plan and associated planning permits (Attachment A) and to execute the Hold Harmless and Reimbursement Agreement between The Farm in Poway, LLC and the City of Poway (Attachment B). Discussion On February 1, 2019, a RFP was sent to consulting firms that specialize in environmental issues to prepare the EIR, and associated CEQA findings and Mitigation Monitoring Plan. An addendum to the RFP with appropriate public notice and posting on ebidboard.com was conducted on February 14, 2019. A total of 29 firms were solicited and seven firms submitted a proposal with one disqualified as it was received after the deadline. Following a thorough review of the proposals, staff invited the top three responding firms to an interview. The interview panel consisted of two planning staff members, the Planning Manager of Environmental Services at the County of San Diego and the Assistant Director of Planning at the City of Escondido. After interviewing the top three firms, the firm of Dudek was selected as the 1 of 33 April 16, 2019, Item #1.4 EIR Consultant Agreement — The Farm April 16, 2019 Page 2 most qualified consultant. Dudek is a full-service environmental consulting firm and will partner` with the applicant's professional consultant team to prepare the EIR. Dudek has extensive experience working for other jurisdictions in the preparation of EIRs for golf course conversion projects. Dudek's proposal is for $230,470, which is in the middle of the range of costs for the proposals received. The highest and the lowest cost proposals of all six qualifying firms were $284,000 and 171,000 with an optional $30,000 service, respectively. The proposed scope of work and cost proposal are detailed in the Consultant Agreement provided as Attachment A. The EIR is expected to take approximately 11 months before it is reviewed for consideration of certification by the City Council. The Hold Harmless and Reimbursement Agreement between The Farm in Poway, LLC and the City of Poway is included as Attachment B. With this agreement, The Farm in Poway, LLC would defend and indemnify the City in the event of litigation regarding the environmental review process for The Farm project. Environmental Review: This action is not subject to review under the CEQA Guidelines. Fiscal Impact: The EIR contract amount is $230,470 for consultant services. This amount will be paid entirely by the applicant. In addition, the applicant will submit funds to a city deposit account to which staff time will be billed to achieve full cost recovery in the processing of the EIR and review of the Specific Plan. Other planning permits will be processed per the fees provided in the Master Fee Schedule. Public Notification: A courtesy notice was sent to the six firms with qualifying proposals for this project. Attachments A. Consultant Agreement B. Hold Harmless Agreement Reviewed/Approved By: Wendy Kaserman Assistant City Manager 2 of 33 Reviewed By: Alan Fenstermacher City Attorney Approved By: Tina M. White City Manager April 16, 2019, Item #1.4 City of Poway STANDARD AGREEMENT FOR SERVICES This Agreement, entered into this 16t1 day of April, 2019, by and between the CITY OF POWAY (hereinafter referred to as "City") and Dudek (hereinafter referred to as Consultant'). RECITALS WHEREAS, City desires to obtain the services of a private consultant to perform the preparation of an Environmental Impact Report (EIR) for "The Farm" 160 dwelling unit planned community and specific plan with retail, educational, recreational and agricultural uses and amenities proposed at 17166 Stoneridge Country Club Lane (Project); and WHEREAS, Consultant is an environmental services 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. 1 3 of 33 ATTACHMENT A April 16, 2019, Item #1.4 5. 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 33 April 16, 2019, Item #1.4 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: 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. 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 33 3 April 16, 2019, Item #1.4 years 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, Indemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless Indemnitees 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 Indemnitees may suffer or incur or to which Indemnitees 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, Indemnitees shall have no liability to Consultant or any other person for, and Consultant shall indemnify and hold harmless Indemnitees from and against, any and all Claims that Indemnitees may suffer or incur or to which Indemnitees 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 Indemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Consultant's negligence. 4 6 of 33 April 16, 2019, Item #1.4 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 Indemnitee 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 Indemnitees 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 Aaent. 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 33 April 16, 2019, Item #1.4 Consultant'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. 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 33 6 April 16, 2019, Item #1.4 Contractor 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 33 April 16, 2019, Item #1.4 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written. CITY OF POWAY DUDEK By: By: Tina White, City Manager Date: ATTEST: Faviola Medina, CMC, City Clerk APPROVED AS TO FORM: Bv: Alan Fenstermacher, City Attorney 8 10 of 33 Joe Monaco, President, Dudek Date: April 16, 2019, Item #1.4 SPECIAL PROVISIONS" EXHIBIT "A" A. Scope of Services. Consultant agrees to perform consulting services as required by City, which shall consist of the Environmental Impact Report (EIR) preparation services further described in the Scope of Services submitted with the proposals dated March 4, 2019 and revised March 28, 2019, 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 proposals dated March 4, 2019 and revised March 28, 2019, which are included in this document as Attachment 2. Total fee is not to exceed $230,470. 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 April 16, 2019, and ending April 15, 2020, 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 11 of 33 April 16, 2019, Item #1.4 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. 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: City of Poway — Development Services 13325 Civic Center Drive Poway, CA 92064 To Consultant: Dudek 605 Third Street Encinitas, CA 92024 12 of 33 April 16, 2019, Item #1.4 EXHIBIT "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 of 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. e) 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) 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 13 of 33 April 16, 2019, Item #1.4 Cal 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. 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: 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)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 Califomia 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 14 of 33 April 16, 2019, Item #1.4 Cal 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 Il 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 $ I (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 (I)(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). 15 of 33 April 16, 2019, Item #1.4 Attachment 1 DUDEK Work Program In order to keep costs to a minimum, this EIR will build off of studies prepared for this project, the General Plan Master EIR and other existing related documents to the greatest extent possible. Dudek staff will work with the City staff to obtain such information. Direct coordination between Dudek and consultants preparing studies is permissible provided it is consistent with this Scope of Work. A summary of meetings between Dudek staff and City staff will be provided to City staff and revisions (track changes) from City staff will be sent and accepted by Dudek. All final documents require review and approval by City staff. Changes to the Scope of Work are permissible provided they are reviewed and approved by City Staff in advance and substantially conform to the Request for Proposal. Repeat comments shall be referenced, not repeated (e.g., see Mitigation Measure 3.2). The Scope of Work includes final certification of the Draft EIR unless the project is denied by City Council. Dudek is expected to coordinate directly with the applicant's consultant team, as required. A project task and timeline checklist are expected to be submitted and updated the second and fourth Monday of each month. A public relations Dudek staff professional shall review and approve all public documents to ensure language is in laymen's terms, practical and community centric. Deliverables shall be consistent with recommendations within CEQA guidelines and advisories by the Governor's Office of Planning and Research. Task 1— Project Initiation Task 1.1: Project Description To initiate the project, Dudek will prepare a project description based Dellveiab/es on the information provided. The project description will be based on . Draft Project Description in electronic the project plans and any technical reports or other information, as format (Microsoft Word) available. Included within the project description will be graphics to 0 Final Project Description in electronic depict the regional map, vicinity map, and vesting tentative map to format (Microsoft Word) assist the reader in understanding the proposed project. Dudek will then provide the project description electronically to the City in preparation for the kick-off meeting. The project description will be finalized in coordination with the City priorto initiating technical workto ensure it includes all features of the project (both on and off site). The description will include a list of permits and other approvals required for EIR certification and project implementation and will identify the agencies expected to rely upon the EIR. Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community Page 4 16 of 33 April 16, 2019, Item #1.4 DUDEK Task 1.2: Kickoff Meeting Dudek will attend a project kick-off meeting with the City and all Deliverables project proponent's consultants preparing the plans and technical • Kick-off Meeting Agenda studies. Dudek will prepare the agenda and lead the meeting. The . Minutes from Kick-off Meeting purpose of the kick-off meeting is to (1) provide an overview of the project and review the project description, (2) verify all reports prepared and that the scope of work identified in each report is sufficient to address issues identified in the CEQA checklist with appropriate mitigation as applicable, (3) discuss anticipated reports to be prepared, and (4) discuss the project schedule. Task 1.3: Initial Study, Notice of Preparation and Scoping Dudek will prepare the Initial Study (IS) and Notice of Preparation Deliverables NOP). The ISwill evaluate potentially significant environmental effects One electronic copy and eight hard copies of using appendix G of the CEQA Guidelines), and will be used to the Screencheck IS/NOP demonstrate significant environmental impacts based on existing information. Included in the IS will be a comparison of the project and One electronic copy and eight hard copies of its compatibility with the goals and policies of the General Plan. The the Final IS/NOP purpose of the IS/NOP is to solicit input from the public or other 50 hard copies of Final NOP agencies on the scope and content of the forthcoming EIR. Dudekwill Attendance at one public scoping meeting prepare the draft IS/NOP according to the City's standard format. Minutes from public scoping meeting Dudek will prepare a brief Initial Study, focusing primarily on topics that will be "scoped out" during the IS/NOP review process. The IS/NOP wi II be submitted to the City for review and approval, and then Dudek wi II circulate the IS/NOP fora 30 -day public review period. Dudek assumes the City will complete the distribution and noticing requirements per CEQA. Dudek will support the City for one public scoping meeting. The meeting will be initiated with greeters (two minimum), sign in sheets, questionnaires and general comment cards encouraged to be completed (clip boards and pens included) and booths with experts from Dudek associated with the various topics (six minimum) will be available to the public for further discussion and comments. Greeters will provide an overview of the project description and an outline of the scope of the EIR which will also be included on a handout. Meeting participants will be asked to clarify their concerns and provide insight into their expectations of the Draft EIR. This process will help to inform the EIR preparation effort so that it is as thorough as possible. In collaboration with City staff, the Dudek team will review comments to the IS/NOP to determine whether new issues have been raised beyond those already contemplated. Dudek will deliver required copies of the NOP/IS to the State Clearinghouse for state agency review. Dudek will maintain the EIR notification mailing list for local and federal agencies, the public and stakeholders, and will coordinate mailings (the cost of reproduction and postage is included in cost estimate). Task 2 — Administrative Draft EIR Following input from the scoping process and in close cooperation with City staff, Dudek will prepare the administrative draft environmental impact report (EIR) in conformance with the criteria, standards, and provisions of CEQA. It is assumed that the project description completed in Task 1 will be used for the EIR, and that no changes to the project will occur after the initiation of work. Dudek will also work with the City to ensure that the recent comprehensive update to the CEQA thresholds are adequately addressed in the EIR. Dudek will provide the City with an administrative draft EIR in electronic format for the project. Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community Page 5 17 of 33 April 16, 2019, Item #1.4 DUDEK The following is a description of the contents that will be included in the administrative draft EIR based on our understanding of the proposed project to date. Task 2.1: Table of Contents The table of contents will contain a list of the contents of the EIR, including text discussions and a list of tables and exhibits. The table of contents will also include a list of appendices to the EIR. Task 2.2: Executive Summary The executive summary of the EIR is required by the CEQA and is typically prepared after all the other sections of the EIR are completed. This section will include a summary of the EIR purpose, background, and major assumptions; a description of the project and alternatives; major conclusions of the alternative analysis (including the environmentally superior alternative); the project approval process; and an overview of all mitigation measures. This section will present in table format the overview of the project's significant impacts, mitigation measures, and alternatives. Task 2.3: Introduction The introduction section ofthe EIR will definethe purpose, scope, and legislative authority of the EIR, requirements of CEQA, and other pertinent environmental rules and regulations. This section will also describe the EIR process, structure, required contents, and the project's relationship to other potential responsible or trustee agencies. This section will include a description of land use and environmental planning efforts completed to date and how said planning efforts will impact the structure and content of the EIR. This section will describe the type of EIR and level of environmental review envisioned for the document An overview of the EIR's format, content, and processing requirements will be provided in this section. Finally, a list of documents incorporated by reference will be included in this section. Task 2.4: Project Description As described in Task 1.1, the project description will describe the location of the project site, both within a regional and local context. Graphical depictions and maps will be utilized throughout this section to help describe project components and locations. Definitions of project objectives will be completed in consideration of the analysis and discussion of project alternatives. A complete list of required discretionary actions, permits, and approvals will be provided, with the lead and responsible agencies for each. A site plan shall be included. Task 2.5: Environmental and Regulatory Setting This section will provide an overview of the local and regional environmental setting of the project (CEQA Guidelines Section 15125). This EIR section will provide a description of the existing site conditions, including a description of the natural resources contained on the project site and the existing geotechnical conditions and topography. This section also discusses regulatory issues, including local and regional planning documents. This section will analyze the project's relationship and applicability with appropriate policies and planning documents. Task 2.6: Environmental Impact Analysis Dudek will conduct the environmental analysis of the project based on the data, background information, and technical studies collected and prepared as part of this work effort. Information from technical reports will be synthesized into the draft EIR. This scope of work includes time to obtain the data and identify what additional information or analysis is necessary to complete the environmental review required by the City. Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 18 of 33 Page 6 April 16, 2019, Item #1.4 DUDEK Each environmental impact section of the EIR will be written to include a discussion of relevant issues as necessary. For each environmental issue, summarized in the following paragraphs, the EIR will describe existing conditions, thresholds of significance, potential environmental impacts, an analysis of significance, and recommended mitigation measures designed to reduce or avoid any potential significant impact(s) identified. Tasks 2.7-2.25 outline Dudek's scope of work and approach to the major environmental issues anticipated to be addressed in the EIR. Task 2.7: Aesthetics This section will analyze all aspects of the visual character of the proposed project. Developing the project site with residential homes and other ancillary uses will change the visual character of the site and such additions will be visible from surrounding residential areas. Dudek will conduct a photographic field survey of the project site and surrounding area. The field survey will establish a visual resource baseline by documenting, existing visual resources, including landforms, vegetation communities, water features, and structures/development. Up to four photosimulations of the project shall be prepared: l) looking north onto the project from the southwest corner of Martincoit and Espola Road; 2) At "The Club", "Tranquility Garden" and "Special Event" area from Tam O'Shanter Drive; 3) At the trail and agricultural areas from Villamoura Drive; and 4) At "The Social", "The Barn" and the "Educational Amenities" from the proposed Private Drive looking south." Dudek will also identify candidate key view locations from which the anticipated visual effects resulting from implementation of the proposed project will be evaluated. Dudek will coordinate with the City to identify and finalize key view locations from which to analyze the proposed project's potential effects to existing views and compatibility with existing neighborhood character. The aesthetics section will include an analysis of the proposed project and will identify potential impacts to public views and architectural compatibility with the surrounding neighborhood, as well as any impacts associated with lighting. Task 2.8: Agricultural Resources Dudek understands that the proposed project includes agricultural amenities, such as organic community gardens, organic agri-fields, and a family pond. Pursuant to CEQA the agricultural resources section must analyze impacts associated with the conversation of agricultural land or zoning conflicts related to agricultural use. Dudek does not anticipate any impacts related to agricultural resources pursuant to these CEQAthresholds; however the agricultural uses proposed as part of the project will be analyzed in their respective sections. Impacts relative to pest infestation, pesticides will be covered in the Hazards and Hydrology Sections; see Tasks 2.14 and 2.15 respectively. Odors resulting from the agricultural amenities proposed as part of the open space use will be analyzed in the Air Quality section; see Task 2.9. Task 2.9: Air Quality and Climate Change/Greenhouse Gas Emissions For the purposes of analyzing the air quality, climate change, and GHG emissions, Dudek will prepare a technical report as described below. Dudek will summarize the findings of the report within the EIR. The report will be included as an appendix to the EIR. Dudek will use the significance thresholds in Appendix G of the CEQA Guidelines and the emissions -based thresholds set by the San Diego Air Pollution Control District (SDAPCD). After reviewing all available project materials, Dudek will obtain any outstanding data needed to conduct the analysis. The City will make best efforts to provide any information to Dudek that is readily available. If precise information on a particular factor is not available, Dudek will make every effort to quantify the factor using the best available information from comparable data sources, but in all cases will consult first with City regarding the information needed. Details of the analysis e.g., daily criteria air pollutant emission calculations and annual GHG emission calculations) will be included in an appendix to the technical report. Odors resulting from the agricultural amenities proposed as part of the open space use will also be analyzed in this section. Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 19 of 33 Page 7 April 16, 2019, Item #1.4 DUDEK Air Quality Assessment Local and regional climate, meteorology, and topography as they affect the accumulation or dispersal of air pollutants will be presented in the air quality assessment. Current air quality conditions and recent trends in the San Diego Air Basin, where the project is located, will be described on the basis of California Air Resources Board and U.S. Environmental Protection Agency annual air quality monitoring data summaries. Federal, state, and local regulatory agencies responsible for air quality management will be identified, and applicable federal, state, and local air quality policies, regulations, and standards will be summarized. Dudek will estimate criteria air pollutant emissions associated with the construction phase of the project using the California Emissions Estimator Model (CalEEMod). The analysis of short-term construction emissions will be based on scheduling information (e.g., overall construction duration, phasing, and phase timing) and probable construction activities (e.g., construction equipment type and quantity, workers, and haul trucks) developed by the City, its representatives, and/or standardized approaches. Dudek will then evaluate the significance of the construction emissions based on the SDAPCD significance criteria. It is assumed that construction of the project can be modeled in one CaIEEMod construction run CalEEMod will also be used to estimate project -generated operational criteria air pollutant emissions associated with mobile, energy, and area sources. Mobile source emissions will be estimated based on input from the project's transportation impact assessment Energy and area source emissions (e.g., natural gas combustion and consumer products) will be estimated using the default values in CalEEMod for the proposed land uses based on the total proposed square footage for the proposed spaces. Project -specific values will be used in place of CalEEMod default values when available. The estimated operational emissions will be compared to the significance thresholds established by the SDAPCD. Because the existing golf course on the project site is not currently in operation, it is assumed that for the CEQA analysis, there are no baseline emissions and a net change in emissions analysis will not be conducted. Dudek will evaluate whether traffic associated with the project could lead to potential exposure of sensitive receptors to substantial localized concentrations of air pollutant emissions, specifically carbon monoxide "hot spots." The qualitative assessment will be based on the traffic report prepared for the project and applicable screening criteria recommended by the California Department of Transportation or the County of San Diego's guidance, as directed by the City. It is assumed that the study intersections will not exceed the applied screening criteria and a quantitative carbon monoxide hotspots analysis will not be required. However, if required, Dudek will prepare a quantitative carbon monoxide hotspots analysis for up to three intersections as consistent with the Caltrans CO hotspot protocol. Due to the nature of the proposed project and the close proximity of neighboring existing sensitive residential receptors, Dudek is preparing a construction health risk assessment of the emissions associated with toxic air contaminants, primarily diesel particulate matter (DPM) from heavy-duty trucks and off-road equipment during short-term construction. The potential for project construction to exacerbate the incidence of Valley Fever fungal spores (Coccidioides immitis) exposure will be addressed in the technical report. This assessment will be qualitative and will discuss the causes, effects, and incidence of Valley Fever in the project area and include recommended mitigation to reduce the potential exposure of construction workers to Valley Fever fungal spores, if required. Additional Appendix G thresholds will also be evaluated, including the potential for the project to expose sensitive receptors to substantial pollutant concentrations, to result in other emissions such as odors, orto impede attainment of the current SDAPCD air quality plan. Construction Health Risk Assessment During construction, the primary toxic air contaminant of concern will be DPM from heavy-duty trucks and any on-site off-road equipment. Dudek will use the American Meteorological Society/U.S. Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community Page 8 20 of 33 April 16, 2019, Item #1.4 DUDEK Environmental Protection Agency Regulatory Model (AERMOD), which is required by the SDAPCD to conduct dispersion modeling, and California Air Resources Board's Hot Spots Analysis and ReCitying Program Version 2 (HARP2) to calculate the health impacts. The health impact calculations in HARP2 are based on the Office of Environmental Health Hazard Assessment's Air Toxics Hot Spots Program Risk Assessment Guidelines - Guidance Manual for Preparation of Health Risk Assessments. The dispersion of DPM and associated health risk impacts on sensitive receptors will be determined using AERMOD, HARP2, local meteorological data obtained from the SDAPCD, and the estimated annual average DPM emissions. The maximum cancer risks at the appropriate receptors (e.g., proximate residential receptors) will be tabulated. Cancer risk isopleths (i.e., lines of equal cancer risk) will be plotted on figures showing the project site if the maximum cancer risk exceeds the SDAPCD significance threshold of 10 in 1 million. The assessment will also include the estimated chronic (long- term) hazard indices due to non -cancer health effects associated with DPM. The hazard indices will be tabulated at the appropriate locations and plotted on figures similar to those showing estimated cancer risks if they exceed the SDAPCD significance threshold of 1.0. If the health impacts exceed the thresholds of significance, we will suggest appropriate mitigation measures to reduce the health impacts. A health risk assessment will be prepared as a technical appendix and a summary ofthe methodology and results will be provided in the air quality section of the technical report. Greenhouse Gas Emissions Assessment The GHG emissions assessment will include a setting and background discussion consisting of a summary of the greenhouse effect and global climate change, potential changes to the global climate system and to California, and emissions inventories atthe national, state, and local levels. It will also include a summaryofthe key federal, state, and local regulatory actions and programs to reduce GHG emissions. Dudek will estimate the GHG emissions associated with construction of the project using CaIEEMod based on the same construction scenario utilized in the air quality analysis. Project -generated operational GHG emissions that will be estimated will include those associated with mobile sources workers and residenttrips), natural gas usage, electrical generation, water supply, wastewater, and solid waste disposal. When projectdetails are not available, CalEEMod default values will be used to calculate directand indirect source GHG emissions. As with the air quality analysis, because the existing golf course on the project site is not currently in operation, it is assumed that for the CEQA analysis, there are no baseline GHG emissions. Dudek will assess the significance of the project with respect to the Appendix G thresholds; specifically, Dudek will assess whether a project would (a) generate GHG emissions, either directly or indirectly, that may have a significant impact on the environment and (b) conflict with an applicable plan, policy or regulation adopted for the purpose of reducing GHG emissions. Because the City has not established a numerical GHG emissions threshold, we will work with staff to identify an appropriate threshold for evaluatingthe significance of the project's GHG emissions under CEQA. Atthe local level, the City has not adopted a qualified GHG reduction plan or CEQA significance thresholds. Dudek will work with the City to determine the most applicable GHG significance threshold to evaluate the project against. Dudek will provide a discussion of applicable state regulations (Assembly Bill 32 Scoping Plan measures); any General Plan goals, objectives, and policies that help the City contribute to regional GHG reduction efforts; and applicable development standards that would increase energy efficiency, such as the California Building Code. Task 2.10: Biological Resources Dudek understands that Recon Environmental Inc. has been contracted to prepare a biological resources technical report for the proposed project. Dudek assumes that the report will include a biological resource survey, a biological resource map, and an analysis of the proposed project's impacts on these resources (including any impacts to waters of the United States and/or state, if applicable), as well as any mitigation measures as appropriate. Dudek biologists will conduct a peer review of the biological resources technical report and will note any deficiencies to the City and Recon Environmental Inc. Dudek will coordinate with the report author address any deficiencies in the report. The biological resources section of the EI R will summarize the findings of the technical report and will include the mitigation Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 21 of 33 Page 9 April 16, 2019, Item #1.4 DUDEK measures as appropriate. This section of the EIR will also include an analysis by Recon Environmental Inc. in conjunction with the developer's landscape architect of site tree preservation and compliance with tree -related policies from the City's Urban Forestry Ordinance. Recommendations and mitigation measures for agricultural uses shall be provided to limit pest infestations. Mitigation measures shall address construction activities during nesting and migration activities and opportunities for noise buffering, pre -surveys and monitoring by species. Task 2.11: Cultural Resources According to the City's General Plan, the project site is located in an area designated as having a moderate probability that an archeological site is present Dudek understands that Recon Environmental Inc. has been contracted to prepare a cultural resources technical report, and BF Smith and Associates has been contracted to prepare an archeology report for the proposed project. Dudek assumes that the cultural resources technical report will include a sacred lands search atthe Native American Heritage Commission, a CHRIS report and provide an analysis of the proposed project's impacts to any cultural resources. Dudek also assumes that Recon Environmental Inc. will initiate correspondence or, if required, provide the City with all necessary documents to initiate correspondence with the Native American Heritage Commission to obtain information on Native American tribal cultural resources in or near the project area and to obtain a list of tribal individuals and organizations with whom to correspond regardingsuch resources as it relates to AB 52 and SB 18 noticing The City may use the Native American Heritage Commission list for their consultation obligations, which may include compliance with Assembly Bill 52 and Senate Bill 18. Dudek's cultural team will conduct a peer review of the technical reports, noticing documents and tribal responses and will note any issues and remedies and deficiencies to the City. Dudek will coordinate with the report author address any deficiencies in the report. The cultural resources section of the EIR will summarize the findings of the technical reports and will include the mitigation measures as appropriate including addressing all tribal requests. The geotechnical investigation prepared by the project proponent shall include the location of native and disturbed soils and exploration into native versus disturbed soils and the specific locations of monitoring areas shall be discussed with tribal representatives to limit monitoring only to areas of interest to the tribal representatives. Dudek shall coordinate and attend all tribal consultations and provide final recommendations for mitigation to the satisfaction of all tribal representatives. Task 2.12: Energy Conservation Dudek will prepare an energy conservation assessment for the project per the most recent version of the CEQA Guidelines. The analysis will briefly summarize electricity, natural gas, and petroleum energy sources and the relevant regulatory framework. The project will be assessed in regards to construction and operational energy consumption, which will be quantified to the extent estimation methods and project specifics are available. Project electricity (kilowatt hours) and natural gas (British thermal units) usage will be estimated based on project specifics; CaIEEMod default values will be used, as appropriate, when project specifics are not available. Petroleum consumption will be estimated using CalEEMod or the EMFAC Motor Vehicle Emission Source Inventory Model and will be based on the same equipment and vehicle assumptions assumed in the air quality and GHG emissions analyses. Project elements that would reduce the project's energy demand will be identified in the analysis and quantified as available. Dudek assumes that project proponent's architect and engineer will provide a list of the project's sustainable design and energy conservation measures prior to initiating air quality and GHG emissions modeling, as the energy analysis will be prepared consistent with the emissions modeling assumptions. Task 2.13: Geology and Soils Dudek understands that as part of the design process for the project, the applicant has contracted with a separate consultant, Geocon, to perform the geotechnical investigations for the project. Dudek geologists will peer review the report and note any deficiencies to the City and Geocon Inc. Dudek will coordinate with the report author address any deficiencies in the report. The geotechnical report will be utilized to evaluate the project's impacts. The EIR will Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 22 of 33 Page 10 April 16, 2019, Item #1.4 DUDEK summarize the findings of this technical report and will include design standards and mitigation measures as appropriate. See responsibilities of Geocon Inc. in Task 2.11. Task 2.14: Hazards and Hazardous Materials Dudek hazardous materials specialists will conduct a hazards assessment for the proposed project. The hazards assessments will include evaluation of potential impacts due to current or past hazardous materials/waste storage/use and identification of potential environmental concerns. A preliminary review of the project site indicates that a cleanup effort was conducted within the past five years due to a former leaking underground tank. Potential impacts due to current or past hazardous materials storage or use will be evaluated through the following tasks: A database search of federal, state, and local regulatory agency records that meets Government Code Section 65962.5. The database search will identify sites within or adjacent to the project site that currently have or previously had hazardous materials contamination or sites that used hazardous materials Review of the National Pipeline Mapping System for hazardous pipelines on the projectsite Review of historical aerial photographs and fire insurance maps Review of files for the project area and nearbysites that are available on the Regional Water Quality Control Board's Geotracker website and Department of Toxic Substances Control EnviroStor website The findings will be summarized in the hazards section of the EIR. If the findings indicate a potential impact of hazardous wastes or materials, recommendations for further work related to additional investigation, sampling, mitigation, human health risk analyses and/or construction contingency measures will be included as mitigation measures. Recommendations for the use of pesticides will also be shown as mitigation measures. Additionally, Dudek understands that FireWise 2000 Inc. has been contracted to prepare a Fuel Management Plan. Dudek will peer review this report for any deficiencies and will note those to the City and FireWise 2000 Inc. Dudek will coordinate with the report author address any deficiencies in the report. The findings of the Fuel Management Plan will be summarized in this section. Task 2.15: Hydrology and Water Quality Dudek understands that as part of the design process for the project, the applicant has contracted with a separate consultant, Hunsaker, to perform the hydrology and water quality technical studies for the project. Dudek hydrogeologists will review the Storm Water Management Plan and Drainage Study prepared by Hunsaker & Associates and will note any deficiencies to the City and Hunsaker. Dudek will coordinate with the report author address any deficiencies in the report. The section of the EIR will summarize the findings of these reports and will include mitigation measures as appropriate. This section will also address any runoff concerns associated with pesticide use related to the agricultural amenities proposed as part of the proposed project. Recommendations and mitigation measures for waterways of the US and the State shall be provided and required State Agency permitting shall be identified. Task 2.16: Noise Forthe purposes of analyzing noise, Dudek will prepare a technical reportas described below. Dudek will summarize the findings of the report within the EIR. The report will be included as an appendix to the EIR. Noise Technical Report Dudek will prepare a study that analyzes noise and vibration effects from the proposed project and assesses their levels of impact significance (and need for mitigation, as warranted). The project could subject noise -sensitive receptors (including existing residences in the surrounding community) to noise from project -generated traffic, Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 23 of 33 Page 11 April 16, 2019, Item #1.4 DUDEK construction activities, post -construction land uses and activities, or operation of stationary noise -producing sources e.g., heating, ventilation, and air conditioning systems). Additionally, the proposed project will result in the creation of new noise -sensitive receivers (occupants of newly developed residences) that could be impacted by noise from traffic on nearby existingsurface transportation routes and new project -attributed stationary noise sources. To complete this noise and vibration assessment, Dudek proposes the following tasks: 1. Review available project information, then prepare and send a data request to the client. Client response to the data request should provide or confirm input parameters for predictive noise and vibration level modeling. 2. Prepare a preliminary field survey plan and submit to the client for review. After client approval of the survey plan, conduct short-term (i.e., 10-15 minutes duration) sound pressure level measurements at up to six locations on or near the proposed project site to quantify and characterize the pre-existing outdoor ambient sound environment. The attending Dudek field investigator will also document observations with respect to perceived or witnessed acoustical contributors. 3. Upon receipt of response to the data request, perform predictive modeling of noise and vibration at up to eight nearest and/or representative off-site sensitive receptors using the following methodologies: a. Construction noise - usage of the Federal Highway Administration Roadway Construction Noise Model or comparable technique at Dudek discretion b. Roadway traffic noise - usage of the Federal Highway Administration Traffic Noise Model (version 2.5) or comparable technique at Dudek discretion to quantify scenarios representing existing conditions, existing plus project, horizon year (e.g., 2035), and horizon plus project c. Rail operations noise - usage of the Federal Transit Administration guidance for transit operations noise or comparable technique at Dudek discretion to quantify noise from proximate existing rail transportation routes d. Construction vibration - usage of Federal Transit Administration general assessment, California Department of Transportation algorithms, or comparable techniques at Dudek discretion e. Perform predictive modeling of exterior -to -interior noise intrusion, using technique(s) at Dudek discretion, to assess interior noise levels (from off-site transportation noise sources and on-site stationary noise sources, as appropriate) for up to six representative sample residential units on the project property. 4. Compare predicted noise and vibration levels from the analyses mentioned previously (list items no. 3 and 4) with applicable local, state, and federal noise standards to assess impacts and significance. Include analysis of live music outdoors and noise generated from outdoor uses (e.g. dog park, outdoor dining). Include mitigation measures to limit construction noise to 8 a.m. to 6 p.m. Monday through Friday and Saturdays 9 a.m. to 5 p.m, except holidays. Where necessary, identify appropriate conceptual measures to mitigate predicted noise and vibration impacts found to be significant. 5. Draft a concise, detailed standalone noise technical report for client review that contains results and findings from completion of list items no. 2 through 5. 6. By way of editing the draft noise report, respond and address all comments from one round of client comments. 7. By way of editing the client -reviewed draft noise report, respond to one round of agency comments and finalize the noise report. 8. Develop a draft EIR noise section from (or via references to) the finalized noise report. 9. By way of editingthe draft EIR noise section, respond and address all comments from one round of client comments. 10. By way of editing the client -reviewed draft EIR noise section, respond to one round of agency comments and finalize the draft EIR noise section for public review. Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community Page 12 24 of 33 April 16, 2019, Item #1.4 DUDEK Task 2.17: Population, Housing, Land Use, and Planning Dudek understands that the proposed project includes a General Plan and Zoning Amendment that proposes to revise the existing zoning and land use designations of the planning area, known as the Farm in the Poway Specific Plan, from Open Space - Recreation (OS -R) to Planned Community (PC). This amendment will allow for the preparation of a specific plan document. Dudek planners will review the specific plan to assess land use and planning issues related to the proposed project, including land use compatibility issues. The focus of the land use analysis will be on whether the project would potentially conflict with the established land use plans (such as the City of Poway General Plan). Relevant plans and policies will be reviewed to document compatibility of the proposed project with existing planning documents. Compatibility issues may arisefrom visual impacts, traffic, noise, lighting, public access, development intensity and infrastructure. These issues will be fully addressed in the EIR. Dudek will also prepare an analysis of any impacts relative to growth and housing as required per CEQA. Task 2.18: Recreation, Public Services, Utilities and Services Systems Potentially affected agencies will be contacted to determine the potential impacts of providing public services in order to provide pertinent information to Dudek. For analysis of the existing services, project impacts to public services and recommended mitigation measures will be identified. Dudek will contact agencies associated with the areas of police service, fire protection, emergency medical services, solid waste disposal, schools, gas, electric, and telephone and cable. The discussion will focus on the increased demand on services based on City -approved standards and measures. If necessary, these sections will identify mitigation measures to reduce significant effects to public services. The analysis will include researching existing facilities in the area. Contact will be made to determine system capacity and to estimate the potential impact of the project. Task 2.19: Traffic and Circulation We understand that a traffic study is being prepared by LLG under direct contract by the applicant. The traffic study completed for the proposed project will be utilized to evaluate the project's impacts. Dudek transportation planners will conduct a peer review of the report and notify the City and LLG of any deficiencies. Dudek will coordinate with the report author address any deficiencies in the report. The EIR will summarize the findings of this technical report, and will include mitigation measures as appropriate. As part of California's Senate Bill (SB) 743 process, the Natural Resources Agency has released new CEQA Guidelines. The guidelines currently recommend a required implementation date for CEQA of July 1, 2020. These guidelines recommend VMT as the metric to determine transportation impacts. Therefore, consistent with recent legislations and direction from the City, Dudek assumes that the study will include a supplemental VMT analysis. This will be summarized in the EIR. Task 2.20: CEQA Mandated EIR Sections In addition to each of the environmental issue areas outlined previously, Dudek will analyze and prepare all additional CEQA mandated EIR sections in accordance with the criteria, standards, and procedures of CEQA and the Guidelines as amended. This analysis will include a discussion of the irreversible environmental changes that could result from the proposed project, unavoidable significant impacts and those effects found not to be significant. Task 2.21: Cumulative Impacts Cumulative impacts refers to two or more individual impacts that when considered together, are considerable, or that compound or increase other environmental impacts. Dudek will work with City staff to develop the basis for the analysis of cumulative impacts. Project impacts, when combined with other projects in the area, will be addressed Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 25 of 33 Page 13 April 16, 2019, Item #1.4 DUDEK by researching past, present, and reasonably foreseeable projects in the vicinity. The EIR will evaluate whether the project's impacts would be significant when combined with impacts of cumulative projects. Task 2.22: Growth Inducement As required by CEQA guidelines Section 15126.2, this section will build upon the analysis of the housing and population described previously in Task 2.17. A discussion of growth inducement will be included to assess the potential for the project to induce economic or population growth and the construction of additional housing, either directly or indirectly in the surrounding environment. The discussion will focus on the distinction between new growth stimulation and expected growth accommodation. Task 2.23: Alternatives The alternatives discussion will include a comparative analysis of project alternatives in relation to the proposed project. The analysis will include a quantitative analysis of effects, where appropriate, analyzing the alternatives at a level of detail that will allow comparison with the proposed project, but not at an equal level of detail as the proposed project. The alternatives analysis will include one other reasonable and feasible alternatives as well as the no project alternative. Task 2.24: References, Persons, Agencies Contacted and EIR Preparation The EIR will contain a list of all references and persons and agencies contacted that were used in preparation of the EIR. In addition, the EIR will list all persons involved in the preparation of the documents and their title and role. Task 2.25: Appendices The Appendices shall include the IS/NOP, NOP comment letters, and technical studies prepared for the project. Deliverables One electronic copy and eight hard copies of the First Administrative Draft EIR One electronic copy and eight hard copies of the First Draft Air Quality/GHGTechnical Report One electronic copy and eight hard copies of the First Draft Noise Technical Report One electronic copy and eight hard copies of the construction health risk assessment One electronic copy and eight hard copies of the quantitative carbon monoxide hotspots analysis, if required One electronic copy and eight hard copies of photosimulations Summary of Tribal Consultation results Draft Mitigation Monitoring Program Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 26 of 33 Page 14 April 16, 2019, Item #1.4 Task 3 —Draft EIR Preparation Once comments on the Administrative Draft EIR have been received, Dudek will incorporate all comments and submit electronically) a Second Administrative Draft EIR to the City for review. To address comments on the Draft EIR that require additional discussion, if any, we recommend draft review meetings with all reviewing parties present to make edits in real time to address any potential conflicts and resolutions immediately, thus potentially eliminating the need for subsequent revisions. This scope assumes Dudek will participate in up to three 2 -hour working meetings with City staff and applicant consultants. Once comments are resolved, Dudek will prepare a print - ready Draft EIR to the City for final review. It is anticipated that comments received on the print -ready Draft EIR will be minimal and mostly editorial in nature. Dudek will prepare the Public Review Draft EIR to be fled with the State DUDEK Deliverables One electronic copy and eight hard copies of the Second Administrative Draft EIR, including technical studies Attendance at up to three working meetings with City staff and applicant consultants Working Meeting Minutes One electronic copy and eight hard copies of the Print -Ready Public Review Draft EIR 15 CDs of the Public Review Draft EIR plus 15 hard copies of the Executive Summary for submittal to State Clearinghouse 30 hard copies of the Public Review Draft EIR, with appendices on CD One electronic copy of the Public Review Draft EIR Clearinghouse and circulated fora state -mandated 45 -day public review period. Dudek assumes the City will complete the distribution and noticing requirements per CEQA. Task 4— Final EIR Preparation and Mitigation Monitoring and Reporting At the close of the public review period, Dudek will review, organize and categorize the comments received and meet with City staff and applicant consultants to develop the strategy for respondingto substantial comments. Dudek will prepare draft responses to comments along with a draft of thefinal EIR (preface/summaryof modifications). Dudek will also prepare a draft of the Mitigation Monitoring and Reporting Program for review and comment by City staff. Del verab/es One electronic copy and eight hard copies of the Administrative Draft Final EIR, including the Mi igation Monitoring and Reporting Program, with appendices on CD One electronic copyand 30 hard copies of the Final EIR, includingthe Mitigation Monitoring and Reporting After City review and approval of the draft final EIR and Program, wdh appendices on CD associated documents, Dudek will prepare the Final EIR and final approval documents (see Task 6 for CEQA Findings of Fact and Statement of Overriding Considerations). For cost estimation purposes, Dudek assumes that no more than 50 individual public comments will be received (one comment letter may contain multiple individual comments) and responses to these comments will not necessitate substantial revisions to the project description or technical analyses. Recirculation of the EIR is not anticipated, but if it is required due to any unforeseen issues related to the technical reports associated with the EIR, then Dudek will coordinate all requirements for the recirculation as a part of this Scope of Work. If recirculation is required due to substantial changes in the project after public review, then Dudek can coordinate all requirements for recirculation at an additional cost. Additional analysis required in the reports prepared by Dudek as a result of public comments will be prepared by Dudek. Once the EIR has been certified by the Poway City Council, Dudek will prepare a final Notice of Determination for City transmittal to the San Diego County Clerk's Office. Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 27 of 33 Page 15 April 16, 2019, Item #1.4 DUDEK Task 5 — Meeting Attendance Dudek will facilitate one scoping meeting (included in Task Deliverables 1.3), attend one neighborhood meeting and attend one Attendance at one City Council public hearing public hearing before the City Council. Dudek will assist the City in the presentation of the findings and results of the EIR Attendance at up to three meetings with Citystaff and to the City and residents. Dudek will attend three meetings applicant's consultants with Citystaff and the applicant's consultantteam, included, Attendance at one neighborhood meeting but not limited to, a meeting to discuss time and materials. Included in Task 1) - Facilitation of one public scoping Dudek will attend one City Council public hearing. As meeting included in Task 3, Dudek has also proposed up to three Included in Task 3) - Attendance in up to three additional working meetings with City staff and applicant working meetings with Citystaff and applicant's consultants during the Draft EIR preparation. Dudek consultants assumes that the City will coordinate schedules and host meetings with City staff and consultants. Dudek assumes a minimum of eight Dudek staff members will attend and facilitate the scoping meeting and a minimum of two Dudek staff members will attend the hearings and meetings. Dudek assumes up to four hours for each public meeting and up to two hours for each meeting with City staff. Task 6 — CEQA Findings of Fact and Statements of Overriding Consideration Dudek will prepare the findings of fact for certification of the Final EIR. Should the EIR conclude that the proposed project will result in one or more unavoidable, adverse environmental effect(s) that cannot be mitigated to a less - than -significant level, Dudek will prepare a statement of overriding considerations. This task assumes up to one round of review and approval by the City. Del"rab/es One electronic copy and eight hard copies of the Draft Findings of Fact One electronic copy and eight hard copies of the Draft Statement of Overriding Considerations (if necessary) One electronic copy and eight hard copies of the Final Findings of Fact One electronic copy and eight hard copies of the Final Statement of Overriding Considerations (if necessary) Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 28 of 33 Page 16 April 16, 2019, Item #1.4 Project Schedule Table 1 presents the time schedule for each phase or task outlined in the Scope of Work, and includes scheduled meetings with City staff and completion dates of environmental documents. Table 1. Project Schedule Title Start ..te MM,DD,YYYY) Duration (Days) End Date MM,DD,YYYY) Project Initiation 4/17/2019 14 5/1/2019 Project Kick Off Meeting 4/ 18/2019 0 4/18/2019 NOP Public Review Period 5/ 1/2019 47 6/17/2019 City Meeting #1 (scoping meeting prep) 5/15/2019 0 5/15/2019 NOP Public Scoping Meeting 5/23/2019 0 5/23/2019 Administrative Draft EIR 5/ 2/2019 60 7/1/2019 City Reviews Administrative Draft EIR 7/1/2019 30 7/31/2019 Draft EIR Preparation 7/31/2019 90 10/ 29/2019 City Reviews Second Draft EIR 8/30/2019 28 9/ 27/2019 Public Review DEIR Working Meeting #1 10/8/2019 0 10/8/ 2019 Public Review DEIR Working Meeting#2 10/ 10/2019 0 10/ 10/2019 Public Review DEIR Working Meeting #3 10/ 15/2019 0 10/15/2019 DEIR Public Review Period 10/29/2019 45 12/13/2019 Final EIR Preparation, Findings and SOCs 11/15/2019 60 1/14/2020 City Meeting #2 response to comments prep/strategy) 12/20/ 2019 0 12/20/2019 City Meeting #3 (public hearing prep) 1/21/2020 0 1/21/2020 City Council Public Hearing 2/ 4/2020 0 2/ 4/2020 Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community Page 17 29 of 33 April 16, 2019, Item #1.4 Cost Estimates As summarized in Table 3 a total labor cost of $225,470 as outlined below will be necessary to complete Tasks 1- 6. The cost provided in this proposal represents an estimate of the anticipated level of effort required to complete the tasks described in the proposal and assumes typical processing, without issues that may be caused by potential delays in schedule, project redesigns, or request from the City for additional level of analysis not anticipated in this scope of work. All work will be billed on a time -and -material basis in accordance with the Dudek 2019 Standard Schedule of Charges (attached). As shown on our Schedule of Charges, direct costs are billed in addition to labor costs at cost plus 15%. For this project, direct costs will include such items such as volume reproduction, photographs, mileage and deliveries. These costs are estimated not to exceed $5,000. The final costs of this project will not exceed the Total Cost noted in Table 3. Costs are permitted to shift amongst each task and/or with Direct Costs. Changes to the Scope of Work are permissible provided they are reviewed and approved by City Staff in advance and substantially conform to the Request for Proposal. Table 3 Cost Summary Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 30 of 33 Page 21 1: Project Initiation (Project Description, Kick off, Initial Study/NOP and Scoping) 8,450 2: Administrative Draft EIR 122,380 3: Draft EIR Preparation 56,700 4: Final EIR Preparation and Mitigation Monitoring and Reporting 26,390 5: Meeting Attendance 8,750 6: CEQA Findings of Facts and Statements of Overriding Considerations 2,800 TotstLaborCost 225,470 Direct Costs 5,000 Total 230,470 Environmental Consulting Services for The Farms 160 Dwelling Unit Planned Community 30 of 33 Page 21 April 16, 2019, Item #1.4 HOLD HARMLESS AND REIMBURSEMENT AGREEMENT BETWEEN THE FARM IN POWAY LLC AND THE CITY OF POWAY THIS AGREEMENT MADE day of 20_, by and between the CITY OF POWAY, a Municipal Corporation ("City"), and The Farm in Poway LLC, a limited liability corporation ("The Farm"), both of whom understand and agree as follows: RECITALS: WHEREAS, The Farm is proposing a planned 160 dwelling unit community and specific plan with retail, educational, recreational and agricultural uses and amenities proposed at 17166 Stoneridge Country Club Lane in Poway, California (Proposed Project), at the location of a previous golf course (Stoneridge); WHEREAS, if approved, the Proposed Project would include demolition of the existing abandoned golf course and associated facilities; WHEREAS, the City has determined that, in order to comply with the California Environmental Quality Act (CEQA), an Environmental Impact Report (EIR) must be prepared for the Proposed Project, to analyze potential environmental impacts of the Proposed Project; WHEREAS, because it is the City's policy to require development to pay for itself to the fullest extent possible, it is necessary for The Farm, as the developer of the proposed Project, to fully compensate the City for the costs of the EIR consultant; and WHEREAS, it is also necessary for The Farm to defend and indemnify the City, in the event of litigation regarding the environmental review process for the Proposed Project. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: As the lead agency under CEQA for the environmental review of the Proposed Project, City agrees to contract with a private consultant for the purpose of preparing an EIR. The Farm acknowledges that it has been provided with a copy of the proposed contract for the selected consultant, Dudek, along with the attached scope of work, schedule, and budget estimate for the preparation of the EIR, and agrees to the terms and conditions set forth in that proposed contract. 3. The Farm agrees to promptly compensate and reimburse the City for all reasonable and necessary costs associated with the preparation of the EIR, including the cost of the consultant and City staff time associated with the Proposed Project and the specific plan for the Proposed Project. The Farm agrees that it is responsible for all costs of the environmental review process and the specific plan for the Proposed Project, and that the City is merely acting as a conduit between The Farm and the consultant for purposes of facilitating that process. 4. In the event that The Farm fails to pay the required amounts to City, within forty-five 1 31 of 33 ATTACHMENT B April 16, 2019, Item #1.4 45) days of presentation of an invoice, City will immediately request that the consultant suspend work on the preparation of the EIR. The City shall be entitled to any costs incurred to enforce payments due under this Agreement and, at its sole option, may withhold or condition further discretionary approvals for the Proposed Project upon the making of any payments that are due under this Agreement. 5. The Farm agrees to defend, indemnify, and hold harmless City, its agents, officers and/or employees from and against any and all claims, actions, proceedings, damages, judgments, losses, liability or costs, including reasonable attorneys' fees, related to the performance of this Agreement and/or the preparation, review and/or approval of the EIR, the specific plan or any other environmental document or decision for the Proposed Project, including, but not limited to, any action to attack, set aside, void, challenge or annul any environmental document or decision. The City will promptly notify The Farm of any claim, action or proceeding. 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, The Farm 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 The Farm 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 Farm shall not be required to pay or perform any settlement unless such settlement is approved by The Farm. 6. This Agreement shall become effective on the date of its execution by both parties, and shall continue in full force and effect for one year following the completion of the environmental review process for the Proposed Project. This Agreement shall not be assigned to a third party by The Farm or the City without prior written consent of the other party. 8. This is the entire Agreement between the parties pertaining to the environmental review process for the Proposed Project. All modifications or amendments to this Agreement shall be by written agreement of the parties. 9. This Agreement and all matters relating to it shall be governed by the laws of the State of California, and any action brought relating to this Agreement shall be held exclusively in a state court in the County of San Diego, California. 10. Each individual executing this Agreement on behalf of a Party represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of the Party. 32 of 33 April 16, 2019, Item #1.4 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed and executed the day and year above written. THE FARM A Limited Liability Corporation By: _ Name: Title: 33 of 33 CITY OF POWAY A Municipal Corporation Tina White, City Manager APPROVED AS TO FORM: 0 Alan Fenstermacher, City Attorney April 16, 2019, Item #1.4 C) DATE: TO: FROM: INITIATED BY: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT April 16, 2019 APPROVED APPROVED AS AMENDED SEE MINUTES) DENIED REMOVED CONTINUED RESOLUTION NO. Honorable Chairman and Members of the Housing Authority Robert Manis, Director of Development Services PA Marie Sanders, Senior Management Analyst J 858) 668-4637 or msanders@poway.org wry Poway Housing Successor Annual Report FY 2017-18 Pursuant to California Health and Safety Code Sections 34176 and 34176.1(f) (Dissolution Law), the Poway Housing Authority, in its capacity as Housing Successor to the dissolved Poway Redevelopment Agency, must prepare an annual report detailing its activities during each fiscal year. The Poway Housing Successor Annual Report for Fiscal Year 2017-18 (Attachment A), and the Poway Housing Authority Basic Financial Statements and Independent Auditors Report for the year ended June 30, 2018 (Attachment B), are included with this agenda report for review by the Poway Housing Authority. Recommended Action: It is recommended that the Poway Housing Authority Board receive and file this report. Discussion: Part 1.85, Division 24 of the California Health and Safety Code, particularly Sections 34176 and 34176.1(f), require that the Housing Successor provide an annual report of the Successor's activities during the prior fiscal year. The purpose of the report is to provide the governing body of the Housing Successor with an annual report on the housing assets and activities of the Housing Successor. The report is to be provided to the Poway Housing Authority Board, along with an independent financial audit of the Low- and Moderate -Income Housing Asset Fund within six months after the end of each fiscal year. Due to Poway's annual timing for completion of the Housing Authority audit, it is not possible for this report to be completed within the six-month period. However, there is no penalty for delayed submission of the report. Environmental Review: This item is not subject to California Environmental Quality Act (CEQA) review. Fiscal Impact: There is no fiscal impact associated with this item. Public Notification: None. 1 of 41 April 16, 2019, Item #1.5 Attachments: A. Poway Housing Successor Annual Report for Fiscal Year 2017-18 B. Poway Housing Authority Basic Financial Statements and Independent Auditor's Report for Fiscal Year 2017-18 Reviewed/Approved By: Reviewed By: Approved By: n Wendy Kaserman Alan Fenstermacher Tina M. White Assistant City Manager City Attorney City Manager 2of41 April 16, 2019, Item #1.5 POWAY HOUSING SUCCESSOR ANNUAL REPORT REGARDING THE LOW- AND MODERATE -INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2017-2018 PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f) FOR THE POWAY HOUSING AUTHORITY This Housing Successor Annual Report (Report) regarding the Low- and Moderate -Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f) and is dated as of March 15, 2019. This Report sets forth certain details of the Poway Housing Authority, in its capacity as Housing Successor to the dissolved Poway Redevelopment Agency, activities during Fiscal Year 2017-18 (Fiscal Year). The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 Dissolution Law). The following Report is based upon information prepared by Housing Successor staff and information contained within the Poway Housing Authority Basic Financial Statements and Independent Auditor's Report for Fiscal Year 2017-18 as prepared by Rogers, Anderson, Malody & Scott, LLP, which Audit is separate from this annual summary Report; further, this Report conforms with and is organized into sections I. through XI., inclusive, pursuant to the Dissolution Law: Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited. II. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited. III. Description of Expenditures from LMIHAF: This section provides a categorized description of the expenditures made from the LMIHAF during the Fiscal Year. IV. Statutory Value of Assets Owned by Housing Successor: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts. V. Description of Transfers: This section describes transfers pursuant to Health and Safety Code Section 34176.1(c)(2), if any, to another housing successor agency made in previous Fiscal Year(s), including whether the funds are unencumbered and the POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2017 - 2018 3of41 April 16, 2019, Item #1.5ATTACHMENT A status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing. VI. Project Descriptions: This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project. VII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, the Housing Successor must provide a status update on the project. The Poway Housing Successor has acquired one property since February 1, 2012. VIII. Description of Outstanding Obligations under Section 33413: This section describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012, along with the Housing Successor's progress in meeting those prior obligations, if any, of the former redevelopment agency and how the Housing Successor's plans to meet unmet obligations, if any. IX. Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for five-year period, with the time period beginning January 1, 2014, and whether the statutory thresholds have been met. However, reporting of the Income Test is not required until 2019. X. Senior Housing Test: This section provides the percentage of units of deed -restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed -restricted rental housing assisted individually or jointly by the Housing Successor, its former Redevelopment Agency and its host jurisdiction within the same time period. For this Report the ten-year period reviewed is January 1, 2007 to January 1, 2017. XI. Excess Surplus Test: This section provides the amount of excess surplus in the LMIHAF, if any, and the length of time that the Housing Successor has had excess surplus, and the Housing Successor's plan for eliminating the excess surplus. This Report is to be provided to the Housing Successor's governing body along with an independent financial audit of the LMIHAF within six months after the end of each fiscal year. In addition, the Report and the former redevelopment agency's pre -dissolution Implementation Plans are available to the public on the City's website http://poway. org/207/Affordable-Housing. POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2017 - 2018 4of41 April 16, 2019, Item #1.5 AMOUNT DEPOSITED INTO LMIHAF A total of $159,801 was deposited into the LMIHAF during the Fiscal Year, as detailed on page 8 of the Audit. II. ENDING BALANCE OF LMIHAF At the close of the Fiscal Year, the ending balance in the LMIHAF was $2,771,448, none of which is being held for items listed on the ROPS, as detailed on page 6 of the Audit. This includes 2,128,971 in cash and investments, and $668,531 in housing loans receivable, less $50,499 in liabilities. The $668,531 is due from the Successor Agency and represents the Housing Authority's 20% of the former Redevelopment Agency's loan balance, and repayment is subject to approval by the California Department of Finance. III. DESCRIPTION OF EXPENDITURES FROM LMIHAF The following is a description of expenditures from the LMIHAF by category: IV. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR 87,553 0 0 87,553 Under the Dissolution Law and for purposes of this Report, the "statutory value of real property' means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of properties purchased by the Housing Successor. Further, the value of loans and grants receivable are included in these reported assets held in the LMIHAF. The following provides the statutory value of assets owned by the Housing Successor: V. DESCRIPTION OF TRANSFERS 2,128,971 18,582,674 688,531 21,400,176 The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c)(2) during the Fiscal Year. POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2017 - 2018 5 of 41 April 16, 2019, Item #1.5 VI. PROJECT DESCRIPTIONS The Housing Successor did not receive and did not hold property tax revenue pursuant to the ROPS. VII. STATUS OF COMPLIANCE WITH SECTION 33334.16 Section 34176.1 provides that Section 33334.16 does not apply to interests in real property acquired by the Housing Successor on or after February 1, 2012. With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, and transferred to the Successor Agency pursuant to Health and Safety Code Section 34176, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance approved the property as a housing asset on the Housing Asset Transfer Form; thus, as to real property acquired by the former redevelopment agency now held by the Housing Successor, the Housing Successor must initiate activities consistent with the development of the real property for the purpose for which it was acquired within five years of the date the DOF approved such property as a housing asset. Poway's Housing Assets Transfer Form was approved by the DOF on August 31, 2012. The following provides a status update on the real property housing assets that were acquired by the former redevelopment agency prior to February 1, 2012, and transferred to the Housing Successor on February 1, 2012, and compliance with the five-year period to commence development activities. POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2017 - 2018 6 of 41 Vacant land. To be leased in 12674 Monte Vista Rd 2/22/2000 2.06 Acres 2019 for temporary non- housing use. 13021-13023 Poway Rd 03/26/2002 2.6 Acres Vacant land. Active Exclusive Negotiating Rights Agreement. 13031 Poway Rd 3/30/2010 24 Acres Vacant land. Active Exclusive Negotiating Rights Agreement. Twin Peaks Rd 11/03/2004 2.15 Acres Vacant land. Development options are being evaluated 12341 Oak Knoll Rd 3/23/2011 3.18 Acres Leased Land. DDLA executed for development in 2019. Vacant land. Due to access 13424 Scots Way 08/27/2002 0.70 Acres issues, development options are being evaluated 14048 Sycamore Ave 06/30/2005 0.32 Acres Vacant land. Development options are being evaluated Vacant land. Floodway Wanesta - Floodway 8/27/2004 2.15 Acres properties behind Solara behind Solara Affordable Housing. Cannot be developed. POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2017 - 2018 6 of 41 April 16, 2019, Item #1.5 The following provides a status update on real property housing assets that were acquired by the Housing Successor after February 1, 2012. 12207 & 12237 Old Future affordable housing site. Pomerado Road 1/9/2018 1.07 Acres Environmental impact study to be completed in 2019. VIII. DESCRIPTION OF OUTSTANDING OBLIGATIONS PURSUANT TO SECTION 33413 Replacement Housing: According to the 2010-2014 Implementation Plan for the former redevelopment agency, no Section 33413(a) replacement housing obligations were transferred to the Housing Successor. Furthermore, the Housing Successor has not caused the demolition of any units and no new replacement housing obligations have been created. Inclusionary/Production Housing. According to the 2010-2014 Implementation Plan for the former redevelopment agency, no Section 33413(b) inclusionary/production housing obligations were transferred to the Housing Successor. The former redevelopment agency's Implementation Plans are posted on the City's website at http://poway.org/207/Affordable-Housing. IX. EXTREMELY -LOW INCOME TEST Section 34176.1(a)(3)(B) requires that the Housing Successor must require at least 30% of the funds deposited into the LMIHAF to be expended for development of rental housing affordable to and occupied by households earning 30% or less of the AMI over a five-year period. If the Housing Successor fails to comply with the Extremely -Low Income requirement in any five- year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the latest fiscal year following the report on households earning 30% or less of the AMI until the Housing Successor demonstrates compliance with the Extremely -Low Income requirement. This information is not required to be reported until 2019 for the 2014 — 2019 period. X. SENIOR HOUSING TEST The Housing Successor is required to calculate the percentage of units of deed -restricted rental housing restricted to seniors and assisted by the Housing Successor, the former redevelopment agency and/or the City within the previous 10 years in relation to the aggregate number of units of deed -restricted rental housing assisted by the Housing Successor, the former redevelopment agency, and/or City within the same time period. If this percentage exceeds 50%, then the Housing Successor cannot expend future funds in the LMIHAF to assist additional senior housing units until the Housing Successor or City assists and construction has commenced on a number of restricted rental units that is equal to 50% of the total amount of deed -restricted POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2017 - 2018 7of41 April 16, 2019, Item #1.5 rental units. The following provides the Housing Successor's Senior Housing Test for the 10 - year period of Fiscal Year 2007 through Fiscal Year 2017: XI. EXCESS SURPLUS TEST Excess Surplus is defined in Section 34176.1(d) as an unencumbered amount in the LMIHAF account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the LMIHAF account during the Housing Successor's preceding four Fiscal Years, whichever is greater. The LMIHAF was not created until February 1, 2012. The current balance of $1,303,336 on deposit in the LMIHAF exceeds the sum of the annual deposits made in the preceding four fiscal years ($1,003,531) and as a result, the LMIHAF has an Excess Surplus in the amount of 299, 805. In accordance with the above provisions, the Poway Housing Authority does in fact have an Excess Surplus that is required to be utilized within the next three fiscal years. The Housing Authority will work to spend or commit the funds in the near future on eligible projects within the community to ensure the LMIHAF does not accumulate an excess surplus. The following provides the Excess Surplus test for the preceding four Fiscal Years: 1,238,765 $1,402, 359 $1,576,008 $1,687,392 $1,463,129 179,796 $212,473 224,682 16,201) $(38,825) $(113,298) 386,580 $184,553 $1,003,531 820, 000 86,524) $(54,552) 820,000) 524,319)` $(289,794)" 1,402, 359 $1,576,008 $1,687,392 $1,463,129 $1,303,336 Total commitments as of June 30, 2018 is $814,113. POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2017 - 2018 8of41"' April 16, 2019, Item #1.5 Poway Housing Authority Poway, California Basic Financial Statements and Independent Auditor's Report For the Year Ended June 30, 2018 9 of 41 April 16, 2019, Item #1.5ATTACHMENT B Poway Housing Authority Basic Financial Statements For the Year Ended June 30, 2018 TABLE OF CONTENTS Paqe Independent Auditor's Report ........................................................................ 1 Basic Financial Statements Government -Wide Financial Statements Statement of Net Position......................................................................... 4 Statement of Activities.............................................................................. 5 Fund Financial Statements BalanceSheet....................................................................................... 8 Reconciliation of the Balance Sheet to the Statement of Net Position .................. 7 Statement of Revenues, Expenditures and Changes in Fund Balance ................. 8 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities ............................................. 9 Notes to the Basic Financial Statements...................................................... 10 Required Supplementary Information (Unaudited) Budgetary Comparison Schedule................................................................... 23 Note to Budgetary Comparison Schedule......................................................... 24 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................... 25 10 of 41 April 16, 2019, Item #1.5 735 E. Carnegie Dr. Suite 100 San Bernardino, CA 92408 909 889 0871 T 909 889 5361 F ramscpa.net PARTNERS Brenda L. Odle, CPA. MST Terry P. Shea, CPA Kirk A. Franks. CPA Scott W. Manna, CPA, CGMA Leena Shanbhag. CPA, MST, CGMA Bradferd A. Welebir, CPA, MBA, CGMA Jay H. Zercher, CPA (Partner Emeritus) Phillip H. Waller, CPA (Partner Emeritus) MANAGERS/STAFF Jenny Liu, CPA, MST Seong-Hyea Lee, CPA, MBA Charles De Simon), CPA ROGERS, ANDERSON, MALODY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948 Independent Auditor's Report To the Chairman and Commissioners of the Poway Housing Authority Poway, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and the major fund of the Poway Housing Authority Authority), a component unit of the City of Poway, California (City), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Gardenya Duran, CPA Management is responsible for the preparation and fair presentation of these Brianna Schultz, CPA financial statements in accordance with accounting principles generally Samuel Singery, CPA accepted in the United States of America; this includes the design, Jing Wu. CPA Evelyn Morentin-Barcena, CPA implementation, and maintenance of internal control relevant to the Jin Gu, CPA. MT preparation and fair presentation of financial statements that are free from Veronica Hernandez, CPA material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures MEMBERS selected depend on the auditor's judgment, including the assessment of the American Institute of risks of material misstatement of the financial statements, whether due to Certified Public Accountants fraud or error. In making those risk assessments, the auditor considers PCPS The AICPA Alliance internal control relevant to the entity's preparation and fair presentation of far CPA Firms the financial statements in order to design audit procedures that are Governmental Audit appropriate in the circumstances, but not for the purpose of expressing an Quality Center opinion on the effectiveness of the entity's internal control. Accordingly, we Employee 8ene(t Plon express no such opinion. An audit also includes evaluating the Audit Quality center appropriateness of accounting policies used and the reasonableness of Cahforma Society of significant accounting estimates made by management, as well as Cemfied Pirohc Accountants evaluating the overall presentation of the financial statements. S! STABILITY, ACCURACY. TRUST. 11 of 41 April 16, 2019, Item #1.5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Authority as of June 30, 2018, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Specific Authority Presentation As discussed in Note 1, the basic financial statements present only the Authority and do not purport to, and do not present fairly, the financial position of the City of Poway, California, as of June 30, 2018, and the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinions are not modified with respect to this matter. Other Matters Required Supplementary Information Management has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. Accounting principles generally accepted in the United States of America require that the Budgetary Comparison Schedule be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information, because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2- 12 of 41 April 16, 2019, Item #1.5 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 28, 2019, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance. oe e,ss, i•v-ccou, 1'%a.loot' 2-& UP. San Bernardino, California (/ January 28, 2019 3- 13 of 41 April 16, 2019, Item #1.5 This page intentionally left blank. 14 of 41 April 16, 2019, Item #1.5 Basic Financial Statements 15 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Statement of Net Position June 30, 2018 ASSETS Cash and investments $ 2,128,971 Accounts receivable 24,445 Due from other governments 668,531 Capital assets 18,582,674 Total assets 21,404,621 LIABILITIES Accounts payable 10,469 Deposits 4,300 Unearned revenue 35,730 Total liabilities 50,499 NET POSITION Net investment in capital assets 18,582,674 Restricted for: Housing 2,771,448 Total net position $ 21,354,122 The accompanying notes are an integral part of these financial statements. 4- 16 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Statement of Activities For the Year Ended June 30. 2018 Governmental Activities Program Grants and Net(Expenses) Revenues Contributions Revenues and Charges Operating Grants Capital Grants Changes in Functions/Programs: Expenses for Services & Contributions & Contributions Net Position Governmental activities: General government $ 19,692 $ 59,839 $ - $ - $ 40,147 Development services 34,861 - - (34,861) Total governmental activities $ 54,553 $ 59,839 $ $ - 5,286 General revenues: Investment income 40,295 Other 59,667 Transfer in (out) 820, 000 Total general revenues and transfers 919,962 Change in net position 925,248 Net position, beginning 20,428,874 Net position, ending $ 21,354,122 The accompanying notes are an integral part of these financial statements. 5- 17 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Balance Sheet Governmental Fund June 30, 2018 ASSETS Cash and investments $ 2,128,971 Accounts receivable 24,445 Due from other governments 668,531 Total assets $ 2,821,947 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 10,469 Deposits 4,300 Unearned revenue 35,730 Total liabilities 50,499 Fund balance: Restricted 2,771,448 Total fund balance 2,771,448 Total liabilities and fund balance $ 2,821,947 The accompanying notes are an integral part of these financial statements. 6- 18 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Fund June 30, 2018 Total Governmental Fund Balance $ 2,771,448 Amounts reported in governmental activities in the statement of net position are different because: Capital assets used in the governmental activities are not current financial resources and, therefore, are not reported in the fund. 18,582,674 Net Position of Governmental Activities $ 21,354,122 The accompanying notes are an integral part of these financial statements. 7- 19 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund For the Year Ended June 30, 2018 REVENUES Charges for services $ 59,839 Investment income 40,295 Other revenues 59,667 Total revenues 159,801 EXPENDITURES Current: General government 7,987 Development services 34,861 Capital outlay 831,705 Total expenditures 874,553 OTHER FINANCING SOURCES Transfers in 820,000 Total other financing sources 820,000 Net change in fund balance Fund balance, beginning Fund balance, ending 20 of 41 105,248 2,666,200 2,771,448 The accompanying notes are an integral part of these financial statements. 8- April 16, 2019, Item #1.5 Poway Housing Authority Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities Governmental Fund For the Year Ended June 30, 2018 Net change in fund balance - total governmental fund Amounts reported for governmental activities in the Statement of Activities are different because: In governmental funds, the cost of capital assets are reported as expenditures in the period when the assets are acquired. In the Statement of Activities, cost of capital assets are allocated over their estimated useful life. Capital asset expenditures Change in net position of governmental activities 21 of 41 105,248 820,000 925,248 The accompanying notes are an integral part of these financial statements. 9- April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 1 — Summary of Significant Accounting Policies The basic financial statements of the Poway Housing Authority (Authority), a component unit of the City of Poway, California (City), have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the Authority are described below. A. Description of Reporting Entity On March 1, 2011, the City Council of the City of Poway declared a need for a housing authority in the City of Poway and adopted a resolution forming the Poway Housing Authority. The creation of the Housing Authority provides the City legal authority to continue monitoring ongoing rent and income compliance at affordable housing developments. The former Poway Redevelopment Agency (Agency) and the Authority prepared a Cooperation Agreement to provide for implementation of certain low and moderate income housing projects and to make payments by the Agency to the Authority for the costs to the Authority for performing its obligations. The Agency was dissolved due to the passage of Assembly Bill X1 26 which became effective on October 1, 2011. In accordance with Health and Safety code 34175(b), on February 1, 2012, all housing assets, liabilities and fund balance of the Agency were transferred to the Authority as the Successor Agency to the Poway Redevelopment Agency. The Authority meets the criteria set forth in U.S. GAAP for inclusion as a blended component unit within the City reporting entity based on the City's oversight responsibility in selection of the governing board. In addition, all of the Authority's activities are conducted within the geographic boundaries of the City. Blended component units, although legally separate entities, are, in substance, part of the City's operations; therefore, data from these units are combined with data of the primary government in the financial statement presentation of the City. Only the funds of the Authority are included herein; therefore, these financial statements do not purport to represent the financial position or results of operations of the City. B. Basis of Accounting/Measurement Focus The accounts of the Authority are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. 10- 22 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 1 — Summary of Significant Accounting Policies (Continued) B. Basis of Accounting/MeasurementFocus (Continued) Government -Wide Financial Statements The Authority's Government -Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental activities for the Authority. These basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the Authority's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the Authority in three categories: Charges for services Operating grants and contributions Capital grants and contributions Governmental Fund Financial Statements Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for the governmental fund. An accompanying schedule is presented to reconcile and explain the differences in fund balance as presented in these statements to the net position presented in the Government -Wide Financial Statements. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balance presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except that revenues subject to accrual generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the Authority, are property tax, and intergovernmental revenues. Expenditures are recorded in the accounting period in which the related fund liability is incurred. 23 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 1 — Summary of Significant Accounting Policies (Continued) B. Basis of Accounting/Measurement Focus (Continued) Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the balance sheet and revenue is recognized. The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by the integrated approach of generally accepted accounting principles. Fund Accounting The Authority uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self -balancing set of accounts. The Authority only has one governmental fund. Governmental Fund Housing Authority Fund - The Housing Authority Fund is the Authority's operating fund. It accounts for all financial resources of the general government. C. Cash and Investments The Authority's cash and investment balances are included in the City's investment pool. The City pools cash resources from all City funds in order to facilitate the management of cash and achieve the goal of obtaining the highest yield with the greatest safety and least risk. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms. Investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. 12- 24 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 1 — Summary of Significant Accounting Policies (Continued) C. Cash and Investments (Continued) The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund ("LAIF") which has invested a portion of the pool funds in structured notes and asset-backed securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these investments are subject to market risk and changes in interest rates. Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the Authority and are presented as Cash and investments" in the accompanying basic financial statements. D. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, streets, sidewalks, medians and storm drains) are reported in the Government -Wide Financial Statements. Authority policy has set the capitalization threshold for reporting capital assets at 5,000. Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated assets are valued at their estimated acquisition value on the date donated. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows: Buildings 10-50 years Building improvements 10-100 years Furniture and equipment 5-20 years Infrastructure 20-50 years 13- 25 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 1 — Summary of Significant Accounting Policies (Continued) E. Deferred Outflows/Inflows of Resources In addition to assets, the balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of fund balance that applies to future periods and so will not be recognized as an outflow of resources (expenditure) until then. The Authority currently has no items that qualify for reporting in this category. In addition to liabilities, the balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial element, deferred inflows of resources, represents an acquisition of fund balance that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The Authority currently has no items that qualify for reporting in this category. F. Net Position Net position is comprised of the various net earnings from operating income, non-operating revenues and expenses. Net position is classified in the following categories: Net Investment in Capital Assets — This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets. Restricted — This component of net position consists of restricted assets and deferred outflows of resources reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted — This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the Authority's policy is to apply restricted net position first. 14- 26 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 1 — Summary of Significant Accounting Policies (Continued) G. Fund Balances In the governmental fund financial statements, fund balances are classified in the following categories: Nonspendable — Nonspendable fund balances are items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds. Restricted — Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributions, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. Committed — Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body through council resolutions, etc., and that remain binding unless removed in the same manner. The Board of Commissioners is considered the highest authority for the Authority. Assigned — Assigned fund balances encompass the portion of net fund resources reflecting the government's intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The Board of Commissioners has authorized the Executive Director for that purpose. Unassigned — This category is for any remaining balances that are not classified as nonspendable, restricted, committed or assigned. When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the Authority's policy is to apply restricted fund balances first, then unrestricted fund balances as they are needed. When expenditures are incurred for purposes where only unrestricted fund balances are available, the Authority uses the unrestricted resources in the following order: committed, assigned, and unassigned. H. Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 15- 27 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30. 2018 Note 2 — Cash and Investments The Authority's cash and investment balances are maintained as part of the City investment pool, which includes cash balances and authorized investments of all City funds. This pooled cash is invested by the City Treasurer to enhance earnings. The pooled interest earned is allocated to the funds based on average month-end cash balances of the various funds. Cash and investments consisted of the following at June 30, 2018: Demand deposits $ 17,199 Investments 2,111,772 Total cash and investments $ 2,128,971 A. Cash Deposits The carrying amounts of the Authority's demand deposits were $17,199 at June 30, 2018. Bank balances at June 30, 2018, were $45,709 which were fully insured or collateralized with securities held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the Authority's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the Authority's name. The market value of pledged securities must equal at least 110% of the Authority's cash deposits. California law also allows institutions to secure Authority deposits by pledging first trust deed mortgage notes having a value of 150% of the Authority's total cash deposits. The Authority may waive collateral requirements for cash deposits, which are fully insured by the Federal Deposit Insurance Corporation. The Authority, however, has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period -end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. 16- 28 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 2 — Cash and Investments (Continued) B. Investments The table below identifies the investment types that are authorized for the Authority by the California Government Code (or the City's investment policy, whichever is more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, whichever is more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the Authority, rather than the general provisions of the California Government Code or the City's investment policy. Investment Type U.S. Treasury Obligations U.S. Agency Securities Bankers' Acceptances Medium -Term and Corporate Notes Money Market Mutual Funds Mortgage Backed Securities Asset Backed Securities Commercial Paper Municipal Bonds Negotiable Certificates of Deposit Local AgencylmestmentFund (LAJF) CountyofSan Diego Imestment Pool CalTrust Joint Powers Authority Obligation of any state C. Risk Disclosures Interest Rate Risk 5 years 180 days 5 years N/A 5 years 5 years 270 days 5 years 5 years N/A N/A N/A 5 years 75% 40% 30% 20% 20% 20% 25% 30% 30% None None None None Mabmum Investment in Onelssuer None 25% 5% 5% 10% None None 3% 5% 5% None None None None Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in the market interest rates. One of the ways that the Authority manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 17- 29 of 41 Mabmum Mabmum Percentage of Maturity Portfolio 5 years None 5 years 180 days 5 years N/A 5 years 5 years 270 days 5 years 5 years N/A N/A N/A 5 years 75% 40% 30% 20% 20% 20% 25% 30% 30% None None None None Mabmum Investment in Onelssuer None 25% 5% 5% 10% None None 3% 5% 5% None None None None Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in the market interest rates. One of the ways that the Authority manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 17- 29 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 2 — Cash and Investments (Continued) C. Risk Disclosures (Continued) Interest Rate Risk (Continued) Information about the sensitivity of the fair values of the Authority's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Authority's investments by maturity: Investment Type U.S. Treasury Bills U.S. Agencies Municipalities CalTrust Investment Pool - Short term CalTrust Investment Pool - Medium term Medium -Term and Corporate Notes Local Agency Investment Fund (LAIF) Total 2,111,772 $ 1,295,830 $ 257,038 $ 558,904 None of the Authority's investments are highly sensitive to interest rate fluctuations. Concentration of Credit Risk The Authority's Policy states that not more than 25% of the portfolio shall be invested in any one entity or any one instrument to protect the Authority from concentration of credit risk, with the following exceptions: U.S. Treasury Obligations and investments pools (State of California — Local Agency Investment Fund). In addition, purchases of commercial paper must not exceed 25% of the value of the portfolio at any time, and single issuer holdings must not exceed 5% per issuer. The Authority is in compliance with these provisions of the Policy. The following is a chart of the Authority's investment portfolio: Trustee/Custodian Imestment Type Remaining Maturities Union Bank U.S. Treasuries 12 Months 13 to 24 25 to 60 Amounts or Less Months Months 297,709 157,121 87,715 $ 52,873 711,130 295,729 77,493 337, 908 43,350 21,628 21,722 190,023 190,023 190,220 190,220 307, 915 69,684 70,108 168,123 371,425 371,425 2,111,772 $ 1,295,830 $ 257,038 $ 558,904 None of the Authority's investments are highly sensitive to interest rate fluctuations. Concentration of Credit Risk The Authority's Policy states that not more than 25% of the portfolio shall be invested in any one entity or any one instrument to protect the Authority from concentration of credit risk, with the following exceptions: U.S. Treasury Obligations and investments pools (State of California — Local Agency Investment Fund). In addition, purchases of commercial paper must not exceed 25% of the value of the portfolio at any time, and single issuer holdings must not exceed 5% per issuer. The Authority is in compliance with these provisions of the Policy. The following is a chart of the Authority's investment portfolio: Trustee/Custodian Imestment Type Amount Union Bank U.S. Treasuries 297,709 Union Bank U.S. Agencies 711,130 Union Bank Municipalities 43,350 Union Bank Medium -Term and Corporate Notes 307,915 Wells Fargo CalTrust Investment Pool 380, 243 State Treasurer Office Local Agency Investment Fund (LAIF) 371,425 FM 30 of 41 2,111,772 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 2 — Cash and Investments (Continued) C. Risk Disclosures (Continued) Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following presentation is the minimum rating required by (where applicable) the California Government Code, the Authority's investment policy, or debt agreements, and the actual rating as of year-end for each investment type: Investment Type Amounts Rating Not Rated U.S. Tmasury Bills 297, 709 Aaa U.S.Agancies 711,130 Ass Municipalities 43,350 Aaa CalTmst Investment Pod - Shoal term 190, 023 Aaf 190,023 CelTrust Investment Pod -Metlium tens 190, 220 WA 190,220 Metlium-Tenn anal Corporate Notes 307, 915 At t.ocal AgencyImestmeM FUM LAIF) 371,425 WA 371,425 AAA+ AA+ AA AA- A+ A A- 297,708 $ - $ - $ - $ - $ - 711,130 - - - - - 21,398 14,239 28,479 58,154 113,923 28,593 43,130 Total $ 2,111,772 $ 751,888 $ 21,3% $1,023, 077 $ 28,479 $ 101,504 $ 113,923 $ 28,593 $ 43,130 D. Investment in Local Agency Investment Funds The Authority's investments with Local Agency Investment Funds (LAIF) at June 30, 2018, included a portion of the pooled funds invested in Medium -Term and Short -Term Structured Notes and Asset -Backed Securities. These investments included the following: Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset -Backed Securities the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2018, the Authority had $371,425 invested in LAIF, which had invested 2.67% of the pooled investment funds in short-term and medium-term Structured Notes and Asset - Backed Securities. 19- 31 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 2 — Cash and Investments (Continued) E. Investment in CaITRUST The Authority is a voluntary participant in the Investment Trust of California (CaITRUST), a Joint Powers Authority. CalTRUST is a program established by public agencies in California for the purpose of pooling and investing local agency funds. CalTRUST invests in fixed income securities eligible for investment pursuant to California Government Code Sections 53601, et. seq. and 53635, at. seq. Investments in CalTRUST are highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. The balance available for withdrawal is based on the accounting records maintained by CaITRUST, which are recorded on a fair market value basis. Separate CaITRUST financial statements are available from CalTRUST'S offices at 400 Capital Mall, Suite 702, Sacramento, CA 95814. As of June 30, 2018, the Authority had $380,243 invested in CaITRUST. The Authority's investment in this pool is reported in the accompanying financial statements at fair market value. F. Fair Value Measurements Generally accepted accounting principles establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs consist of inputs that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability. The following table presents the balances of the assets measured at fair value on a recurring basis as of June 30, 2018. Investments by Fair Value Level June 30, 2018 Assets U.S. Treasury Bills U.S. Agencies Municipalities CarTrust Investment Pool - Short term Carrrust Investment Pool - Medium term Madium-Term and Corporate Notes Local Agency Investment Fund (LAIF) 32 of 41 Fair Value Measurement Using Not Subject Level 1 Level 2 Level 3 to GASB 72 Total 297,709 $ - $ - $ - $ 297,709 711, 130 - - - 711,130 43,350 - - - 43,350 190,023 190,023 190,220 190,220 307,915 - - - 307,915 371,425 371,425 1,360,104 $ $ $ 751,668 $2,111,772 20- April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 Note 3 — Capital Assets The summary of changes in capital assets for the year ended June 30, 2018 is as follows: Note 4 — Related Party Transactions In an effort to ensure that the objectives of Poway's Redevelopment Plan and the Poway Redevelopment Agency's (Agency) 5 -Year Implementation Plan are fulfilled, on March 11, 2011, the Agency transferred all housing -related assets to the Authority through a Cooperation Agreement between the Agency and the Authority. Under the terms of this agreement, the Authority agreed to respectively carry out the projects and activities of the Agency in accordance with the objectives and purposes included in the Redevelopment and Implementation Plans. Projects included in the Cooperation Agreement between the Agency and the Authority further the goals of the Redevelopment Plan. It was initially anticipated that these projects would be funded based on available tax increment to be received through 2037, but because of the dissolution of the Agency under AB X1 26, tax increment revenue has been eliminated, and therefore, no funding for these projects from that source is available. Future project funding will come from the management of the Authority's assets and may include interest revenue, lease revenue, residual receipt revenue and the sale of assets. Note 5 — Rehabilitation Loan Program Housing Rehabilitation Loan Program Non -forgivable loans are due upon the sale, transfer or foreclosure of the property. Due to the contingent repayment schedule of these loans, an expenditure is recorded when the loan is made and no receivable is included in the accompanying basic financial statements. The balance of the non -forgivable rehabilitation loans at June 30, 2018 is $7,870. 21- 33 of 41 Balance Balance June 30, 2017 Additions Deletions June 30, 2018 Capital assets, not being depreciated: Land 17,762,674 820,000 $ - 18,582,674 Total capital assets, not being depreciated 17,762,674 820, 000 - 18,582,674 Governmental activities - capital assets 17,762,674 820,000 $ - 18,582,674 Note 4 — Related Party Transactions In an effort to ensure that the objectives of Poway's Redevelopment Plan and the Poway Redevelopment Agency's (Agency) 5 -Year Implementation Plan are fulfilled, on March 11, 2011, the Agency transferred all housing -related assets to the Authority through a Cooperation Agreement between the Agency and the Authority. Under the terms of this agreement, the Authority agreed to respectively carry out the projects and activities of the Agency in accordance with the objectives and purposes included in the Redevelopment and Implementation Plans. Projects included in the Cooperation Agreement between the Agency and the Authority further the goals of the Redevelopment Plan. It was initially anticipated that these projects would be funded based on available tax increment to be received through 2037, but because of the dissolution of the Agency under AB X1 26, tax increment revenue has been eliminated, and therefore, no funding for these projects from that source is available. Future project funding will come from the management of the Authority's assets and may include interest revenue, lease revenue, residual receipt revenue and the sale of assets. Note 5 — Rehabilitation Loan Program Housing Rehabilitation Loan Program Non -forgivable loans are due upon the sale, transfer or foreclosure of the property. Due to the contingent repayment schedule of these loans, an expenditure is recorded when the loan is made and no receivable is included in the accompanying basic financial statements. The balance of the non -forgivable rehabilitation loans at June 30, 2018 is $7,870. 21- 33 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Notes to the Basic Financial Statements June 30. 2018 Note 5 — Rehabilitation Loan Program (Continued) Affordable Housing Loans These loans are made to aid in the purchase of affordable housing in the City of Poway. They are for a 45 year term with no interest and if there is a sale, transfer, or foreclosure before the end of the term, the loan must be assumed by an income -qualified buyer and the 45 year term starts over. Due to the contingent nature of the repayment schedule of these loans, an expenditure is recorded when the loan is made and no receivable is included in the accompanying basic financial statements. The balance of these Affordable Housing loans at June 30, 2018 is $2,690,132. Development Loans The City, through the Housing Authority, has development loans primarily for affordable rental housing projects and for one group home for the developmentally disabled. The affordable rental housing loans have 55 year terms with three percent simple interest. Loan payments are made from residual receipts and generally do not cover the annual accrued interest. Therefore, due to the contingent nature of the repayment schedule of these loans, an expenditure is recorded when the loan is made and no receivable is included in the accompanying basic financial statements. The balance of the development loans, including accrued interest, at June 30, 2018 is $34,847,960. 22- 34 of 41 April 16, 2019, Item #1.5 This page intentionally left blank. 35 of 41 April 16, 2019, Item #1.5 Required Supplementary Information Unaudited) 36 of 41 April 16, 2019, Item #1.5 Poway Housing Authority Budgetary Comparison Schedule For the Year Ended June 30, 2018 REVENUES Charges for services Investment income Other revenues Total revenues EXPENDITURES Current: General government Development services Capital outlay Total expenditures OTHER FINANCING SOURCES Transfers in Total other financing sources Net change in fund balance Fund balance, beginning Fund balance, ending 37 of 41 Original Variance with Budget Final Budget Actual Final Budget 49,120 49,120 59,839 $ 10,719 22,000 22,000 40,295 18,295 40,000 40,000 59,667 19,667 111,120 111,120 159,801 48,681 10,400 10,400 7,987 2,413 10,000 32,450 34,861 2,411) 554,319 1,645,819 831,705 814,114 574,719 1,688,669 874,553 814,116 820,000 820,000 620,000 820, 000 - 463,599) $ (757,549) 105,248 $ 862,797 2,666,200 2,771,448 See accompanying note to budgetary comparison schedule. 23- April 16, 2019, Item #1.5 Poway Housing Authority Note to Budgetary Comparison Schedule For the Year Ended June 30, 2018 Note 1 — Budgetary Information The Authority adopts an annual budget prepared on the modified accrual basis for its major fund. The Executive Director is required to prepare and submit to the Authority's Board of Directors the annual budget of the Authority and administer it after adoption. Any revisions that alter the total appropriations of any fund must be approved by the Board of Directors. Prior year appropriations lapse unless they are encumbered at year-end or re -appropriated through the formal budget process. For the major fund, total expenditures may not legally exceed total appropriations. Budget information is presented for the major fund on a basis consistent with generally accepted accounting principles. Budgeted revenue and expenditure amounts represent the original budget modified for adjustments during the year. 24- 38 of 41 April 16, 2019, Item #1.5 This page intentionally left blank. 39 of 41 April 16, 2019, Item #1.5 735 E. Carnegie Dr. Suite 100 San Bernardino. CA 92408 909 889 0871 T 909 889 5361 F ramscpa.net PARTNERS Brenda L. Odle, CPA, MST Terry P. Shea, CPA Kirl, A. Franks, CPA Scott W. Marino, CPA. CGMA Leena Shanbhag, CPA. MST, CGMA Bradferd A. Welebir, CPA, MBA, CGMA Jay H. Zercher, CPA (Partner Emeritus) Phillip H. Waller. CPA (Parmer Emeritus) MANAGERS/STAFF Jenny Liu, CPA, MST Seong-Hyea Lee. CPA, MBA Charles De Simoni. CPA Gardenya Duran, CPA Brianna Schultz, CPA Samuel Singery, CPA Jing Wu, CPA Evelyn Morentin-Barcena, CPA Jin Gu, CPA, MT Veronica Hernandez, CPA ROGERS, ANDERSON, MALODY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards Independent Auditor's Report To the Chairman and Commissioners of the Poway Housing Authority Poway, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the major fund of the Housing Authority of the City of Poway (Authority), a component unit of the City of Poway City), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements and have issued our report thereon dated January 28, 2019. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. A deficiency in internal control exists when the design or operation of a MEMBERS American Institute of g employees, control does not allow management or in the normal course Certified Public Accountants of performing their assigned functions, to prevent, or detect and correct, PCPS The AICPA Allionce misstatements on a timely basis. A material weakness is a deficiency, or far CPA Firms a combination of deficiencies, in internal control, such that there is a Governmental Audit reasonable possibility that a material misstatement of the entity's financial Qaorty Cente, statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination ofEmployeeinrertPer deficiencies, in internal control that is less severe than a materialAudi( Quality Center weakness, yet important enough to merit attention by those charged with California Society of governance. Ceruhed Noblic Accountants 25- STABILITY. ACCURACY. TRUST. 40 of 41 April 16, 2019, Item #1.5 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. 440geAs, e t.cocs, 1'la LoePy A c -&, LLP. San Bernardino, California Q January 28, 2019 26- 41 of 41 April 16, 2019, Item #1.5 April 16, 2019, Item #1.6 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT April 16, 2019 Honorable Mayor and Members of the City Council Donna Goldsmith, Director of Finance ~ , Andrew White, Interim Finance Manage 't?✓ 858-668-4426 or awhite@poway.org Statement of Investment Policy APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED _____ _ Resolution No. Pursuant to Cal ifornia Government Code , Sec. 53646, and the City's Investment Pol icy, the Director of Finance (i.e., Treasurer) is rendering the Statement of Investment Policy to the City Council for its annual review. There are no proposed changes to the Investment Policy, or the broker/dealer list. The resolution that was adopted on May 15, 2018 is attached , and will remain in effect. Recommended Action: It is recommended that the City Council approve the continued use of the Investment Policy that was adopted on May 15, 2018 with Resolution 18-020. Discussion : The City of Poway invests its funds according to parameters set forth in the City 's adopted Investment Policy. The City's Investment Policy is consistent with California Government Code Section 53600 , et seq. which provides standards regarding investment policies and reports , securities, and repurchase agreements for local agencies. The Policy was last modified on May 15 , 2018 . Since July 1, 1996, the City has worked with an investment advisor to assist in the administration of the City 's investment portfolio . The Investment Policy defines the role of the City's investment advisor and the procedures to be followed . The Investment Oversight Committee (Committee) comprised of the Director of Finance, the Finance Manager, and a Senior Accountant, oversees the investment of the City 's funds . This Committee works w ith the investment advisor to ensure that the City's Investment Policy is being followed . The Committee and the City's Investment Advisor, Insight Investment, have no proposed changes to the investment portion of the current Investment Policy, or the Approved Broker/Dealers list. A copy of the previously adopted Resolution is attached for review. Environmental Review: This item is not subject to CEQA review. 1 of 14 April 16, 2019, Item #1.6 Statement of Investment Policy April 16, 2019 Page 2 Fiscal Impact: The Investment Policy is designed to enhance the economic status of the City while protecting its funds. Public Notification: None Attachment: A. Resolution 18-020 Reviewed/Approved By: Wendy Kaserman Assistant City Manager 2 of 14 Reviewed By: Alan Fenstermacher City Attorney Approved By: , jhJ)/l u/4~ Tina M. White City Manager April 16, 2019, Item #1.6 RESOLUTION NO. 18-020 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AMENDING INVESTMENT POLICY FOR PUBLIC FUNDS AND RESCINDING RESOLUTION NO. 17-013 WHEREAS the City of Poway's Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal , liquidity, yield , and diversification, and its relevance to current law and economic trends; WHEREAS, in accordance with Investment Policy provisions , the City of Poway has conducted a review of the Investment Policy adopted on May 16, 2017 by Resolution No. 17- 013; WHEREAS, the City of Poway proposes certain amendments to the Investment Policy concerning the broker/dealers list; and WHEREAS, in accordance with Investment Policy provisions, amendments to the City's Investment Policy shall be approved by resolution of the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: Section 1: The Statement of Investment Policy, attached as Exhibit "A", is hereby adopted as the Investment Policy of the City of Poway. Section 2: Resolution No. 17-013 is hereby rescinded . PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway, California , at a regular meeting this 15th day of May 2018. ATTEST: ~;f.¥~. City Clerk 3 of 14 Attachment A April 16, 2019, Item #1.6 Resolutio n No . 18-020 Page 2 STATE OF CALIFORNIA ) ) ss COUNTY OF SAN DIEGO ) I, Nancy Neufeld, City Clerk of the City of Poway, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 18-020 was duly adopted by the City Council at a meeting of said City Council held on the 15th day of May 2018, and that it was so adopted by the following vote : AYES: NOES: ABSENT: DISQUALIFIED: 4 of 14 CUNNINGHAM, GROSCH, LEONARD, MULLIN, VAUS NONE NONE NONE City of Poway April 16, 2019, Item #1.6 EXHIBIT A CITY OF POWAY STATEMENT OF INVESTMENT POLICY May 2018 Resolution No. 18-020 Page 3 The City of Poway (the City) has adopted this Investment Policy (the Policy) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the City. All City funds will be invested in accordance with this Investment Policy and with applicable sections of the California Government Code. This Investment Policy, dated May 15, 2018, replaces any previous Investment Policy or investment procedures of the City. SCOPE The provisions of this Policy shall apply to all financial assets and investment activities of the City as accounted for in the City's Comprehensive Annual Financial Report. The employees' retirement and deferred compensation funds are not covered by this Policy. Also, bond reserve funds will be invested in accordance with each bond issue's indenture agreement. All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the General Fund, the Water Fund, the Sewer Fund, and other funds as budgeted or required by legislation based upon the proportion of the respective average balances relative to the total pooled balance. Investment income shall be distributed to the individual funds not less than annually. OBJECTIVES The City's funds shall be invested in accordance with all applicable City resolutions, California statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order: 1. Preservation of capital and protection of investment principal. 2. Maintenance of sufficient liquidity to meet anticipated cash flows. 3. Attainment of a market rate of return. 4. Diversification to avoid incurring unreasonable market risks. 5 of 14 April 16, 2019, Item #1.6 DELEGATION OF AUTHORITY Resolution No. 18-020 Page 4 In accordance with City of Poway Resolution No. 18-, the City Treasurer/Finance Department is authorized to invest the City's funds in accordance with the California Government Code Section 53607. The City's Director of Finance serves as the Treasurer. The Director of Finance may delegate the authority to conduct investment transactions and to manage the operation of the investment portfolio to other specifically authorized staff members. No person may engage in an investment transaction except as expressly provided under the terms of this Policy. The Director of Finance shall develop administrative procedures and internal controls, consistent with this Policy, for the operation of the City's investment program. Such procedures shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the City. The City may engage the support services of outside investment advisors with respect to its investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the City's financial resources. If an investment advisor is selected to help manage the Investment program, a City Investment Oversight Committee shall be kept informed of the changing investment environment and any potential restructuring of the portfolio which could result. This Investment Committee shall consist of the Director of Finance, the Finance Manager, and a Senior Accountant. PRUDENCE The standard of prudence to be used for managing the City's investment program is California Government Code Section 53600.3, the prudent investor standard, which states that "when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency." The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally without risk and that the investment activities of the City are a matter of public record. Accordingly, the City recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City. The Director of Finance and authorized investment personnel acting in accordance with established procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion to the City Council and appropriate action is taken to control adverse developments. 6 of 14 April 16, 2019, Item #1.6 ETHICS AND CONFLICTS OF INTEREST Resolution No. 18-020 Page 5 Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City's investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall subordinate their personal investment transactions to those of the City. In addition, City Councilmembers, the Director of Finance, the Finance Manager, and the Senior Accountant shall file a Statement of Economic Interests each year as required by California Government Code Section 87203 and regulations of the Fair Political Practices Commission. AUTHORIZED SECURITIES AND TRANSACTIONS All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609, and 53630-53686. Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted. The City shall not knowingly make any investments in any institution, company, corporation, subsidiary, or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual preference, or physical disability. The City has further restricted the eligible types of securities and transactions as follows: 1. United States Treasury bills, notes, or bonds with a final maturity not exceeding five years from the date of trade settlement. There is no limit on the percentage of the portfolio that may be invested in U.S. Treasury securities. 2. Government Securities Government Securities in the aggregate shall not exceed 75% of the City's total portfolio. • Federal Instrumentality Obligations (government sponsored enterprises) with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio. • Federal Agency Obligations with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio. • Mortgage-Related Securities, including Federal Agency and Federal Instrumentality mortgage-backed securities and collateralized mortgage obligations. Such securities shall not exceed five years from the date of trade settlement and must be rated at least "AAA" by at least one Nationally Recognized Statistical Ratings Organization (NRSRO) and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in the combination of Mortgage-Related Securities and Asset-Backed Securities. 7 of 14 April 16, 2019, Item #1.6 Resolution No. 18-020 Page 6 3. Corporate Securities No more than 5% of the City's portfolio shall be invested in the obligations of any one corporate issuer. Rule 144A (private placement) securities are prohibited from purchase. • Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Such securities shall have a final maturity not exceeding five years from the date of trade settlement and shall be rated at least "A", or the equivalent, by an NRSRO. No more than 30% of the City's total portfolio shall be invested in Medium-term Notes. • Asset-Backed Securities including equipment lease-backed certificates, consumer receivable pass-through certificates, or consumer-receivable-backed bonds. Such securities shall not exceed five years from the date of trade settlement and must be rated at least 'AAA" by at least one NRSRO and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in Mortgage-Related Securities and Asset-Backed Securities. • Prime Commercial Paper with a maturity not exceeding 270 days from the date of trade settlement and rated at least "A-1", or the equivalent, by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub- paragraph A. or sub-paragraph B. below: A. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500,000,000 and (3) have debt other than commercial paper, if any, that is rated at least "A" or the equivalent by an NRSRO. B. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated at least "A-1" or the equivalent by an NRSRO. Investment in commercial paper shall not exceed 25% of the City's total portfolio. 4. Municipal Bonds including registered notes or bonds of any of the 50 states, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the 50 states. In addition, bonds, notes, warrants, or other evidences of indebtedness of any local agency in California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. Municipal Bonds must be rated at least "A" or the equivalent by an NRSRO with maturities not exceeding five years from the date of trade settlement. No more than 5% of the City's portfolio shall be invested in the obligations of any one issuer, and the aggregate investment in municipal bonds shall not exceed 30% of the City's total portfolio. 8 of 14 April 16, 2019, Item #1.6 Resolution No. 18-020 Page 7 5. Negotiable Certificates of Deposits (CDs) of commercial banks rated at least "A-1", or the equivalent, with maturities not exceeding five years from the date of trade settlement. In addition, the City may not invest in the CD of a state or federal credit union where any person with investment decision making authority at the City also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. No more than 5% of the portfolio may be invested in the CDs of any one issuer, and the aggregate investment in CDs shall not exceed 30% of the portfolio. 6. Non-negotiable Certificates of Deposit and savings deposits with a maturity not exceeding five years from the date of trade settlement, in FDIC insured state or nationally chartered banks or savings banks that qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5. Deposits in excess of the insured amount shall be secured pursuant to California Government Code Section 53651 and 53652. The City shall comply with and act to secure compliance with the security (collateralization) system specified in the Government Code Section 53649 and 53652. 7. Eligible Banker's Acceptances with a maturity not exceeding 180 days from the date of trade settlement, drawn on and accepted by a commercial bank whose senior long-term debt is rated at least "A", or the equivalent, by an NRSRO at the time of purchase. Banker's Acceptances shall be rated at least "A-1', or the equivalent, at the time of purchase by an NRSRO. No more than 5% of the City's total portfolio shall be invested in banker's acceptances of any one bank and the aggregate investment in banker's acceptances shall not exceed 40% of the City's total portfolio. 8. Money Market Funds registered under the Investment Company Act of 1940 that (1) are "no-load' (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in the applicable California statutes and (4) have a rating of at least "AAA", or the equivalent by at least two NRSROs. No more than 10% of the portfolio may be invested in any one fund and the aggregate investment in money market funds shall not exceed 20% of the City's total portfolio. 9. Shares of Beneficial Interest issued by a joint powers authority (e.g., CalTRUST) organized pursuant to Section 6509. 7 that invest in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment advisor that (1) is registered or exempt from registration with the Securities and Exchange Commission. (2) has at least five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601. (3) has assets under management in excess of $500,000,000. 10. State of California's Local Agency Investment Fund (LAIF). pursuant to California Government Code Section 16429.1. 9 of 14 April 16, 2019, Item #1.6 Resolution No. 18-020 PageB 11. The San Diego County Investment Pool. The City may invest in this investment pool, established by the San Diego County Treasurer for the benefit of local public agencies. The foregoing list of authorized securities and transactions shall be strictly interpreted. Any deviation from this list must be preapproved by resolution of the City Council. INVESTMENT MANAGEMENT If the City has employed an external investment advisor to help manage its portfolio, the investment advisor shall be bound by the aforementioned list of authorized securities, the state and local laws and regulations that govern the investment activity of the City, and the following additional parameters. • While it is understood that occasionally it may be in the best interest of the City to take losses in its security portfolio, losses taken to increase the yield in the portfolio may only be taken if the increased yield results in the loss being recouped in one year or less. Credit-related losses on the other hand are taken to prevent potentially larger losses in the future. When possible, the investment advisor will get prior approval of the City before taking credit-related losses. In any case, the City will be notified as soon as possible about any losses taken in the portfolio. • Securities that are downgraded by one or more rating agency to below the ratings required by this Policy do not have to be sold. However, the investment advisor will immediately notify the City of the downgrade. The advisor will prepare a credit report on the downgraded security and forward it to the City. While the City entrusts its investment portfolio to the advisor, the City retains the right to ultimately make the decisions on how to invest its monies. INVESTMENT DIVERSIFICATION The City shall diversify its investments to avoid incurring unreasonable risks inherent in over- investing in specific instruments, individual financial institutions or maturities. Nevertheless, the asset allocation in the investment portfolio should be flexible depending upon the outlook for the economy, the securities markets and the City's anticipated cash flow needs. PORTFOLIO MATURITIES AND LIQUIDITY To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment at least three months prior to the date of investment. 10 of 14 April 16, 2019, Item #1.6 SELECTION OF BROKER/DEALERS Resolution No. 18-020 Page 9 The Finance Manager shall maintain a list of broker/dealers approved for investment purposes, and ii shall be the policy of the City to purchase securities only from those brokers and the firms they represent. Each approved broker/dealer must possess an authorizing certificate from the California Commissioner of Corporations as required by Section 25210 of !he California Corporations Code. To be eligible, a firm must meet at least one of the following criteria: 1. Be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or 2. Report voluntarily to the Federal Reserve Bank of New York, or 3. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule). The City may engage the services of investment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved broker/dealers. Such broker/dealers will comply with the selection criteria above and the list of approved firms shall be provided to the City on an annual basis or upon request. In the event that an external investment advisor is not used in the process of recommending a particular transaction in the City's portfolio, authorized broker/dealers shall attest in writing that they have received a copy of this Policy and each authorized broker/dealer shall be required to submit and annually update a City approved Broker/Dealer Information Request form that includes the firm's most recent financial statements. The City may purchase commercial paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the criteria outlined in Item 3 of the Authorized Securities and Transactions section of this Investment Policy. COMPETITIVE TRANSACTIONS All investment transactions shall be conducted competitively with authorized broker/dealers. At least three broker/dealers shall be contacted for each transaction and their bid or offering prices shall be recorded. If the City is offered a security for which there is no other readily available competitive offering, then the Finance Manager will document quotations for comparable or alternative securities. SELECTION OF BANKS The Finance Manager shall maintain a list of FDIC insured banks approved to provide depository and other banking services for the City. To be eligible, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5 and shall secure deposits in excess of FDIC insurance coverage in accordance with California Government Code Section 53652. 11 of 14 April 16, 2019, Item #1.6 SAFEKEEPING AND CUSTODY Resolution No. 18-020 Page 10 The Finance Manager shall select one or more banks to provide safekeeping and custodial services for the City. A Safekeeping Agreement approved by the City shall be executed with each custodian bank prior to utilizing that bank's safekeeping services. Custodian banks will be selected on the basis of their ability to provide services for the City's account and the competitive pricing of their safekeeping related services. The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery versus payment basis. All securities shall be perfected in the name of the City. Sufficient evidence to title shall be consistent with modern investment, banking, and commercial practices. All deliverable securities purchased by the City will be delivered by book entry and will be held in third-party safekeeping by a City approved custodian bank or its Depository Trust Company (OTC) participant account. PORTFOLIO PERFORMANCE The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the City's investments shall be compared to the average yield on the U.S. Treasury security that most closely corresponds to the portfolio's weighted average effective maturity. When comparing the performance of the City's portfolio, its rate of return will be computed net of all fees and expenses. REPORTING Quarterly, the Director of Finance shall submit to the City Council a report of the investment earnings and performance results of the City's investment portfolio. The report shall include the following information: 1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City; 2. A description of the funds, investments, and programs; 3. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation; 4. A statement of compliance with the Investment Policy or an explanation for non- compliance; and 5. A statement of the City's ability to meet expenditure requirements for six months, and an explanation of why money will not be available if that is the case. 12 of 14 April 16, 2019, Item #1.6 Resolution No. 18-020 Page 11 POLICY REVIEW This Investment Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield and diversification, and its relevance to current law and economic trends. Amendments to this Investment Policy shall be approved by resolution of the City Council. SEGREGATION OF RESPONSIBILITIES FUNCTION 1.0 Investment Policy: 1. 1 Preparation and annual review of Investment Policy 1.2 Approval of Investment Policy 2.0 Investment Transactions: 2.1 Calculation of cash position 2.2 If applicable, notify investment advisor of current available cash to be invested 2.3 Investment recommendation: Determination of amount to be invested, selection of type of investment, and term of investment 2.4 Review of investment recommendation and execution of transaction 3.0 Recording of Transactions: 3.1 In investment subsidiary ledgers 3.2 In accounting records 3.3 Maleh investment confirmation to subsidiary ledgers 4.0 Safeguarding of Assets and Records: 4.1 Reconciliation of subsidiary records lo the accounting records 4.2 Reconciliation of subsidiary records to bank statements and safekeeping records 4.3 Review of financial institutions and investment brokers' reputation and financial condition 4.4 Review of collaterals 5.0 Investment portfolio: 5.1 Preparation of investment report 5.2 Review of portfolio for compliance with stated Investment Policy 5.3 Approval of investment report 13 of 14 RESPONSIBILITY Director of Finance/ Oversight Committee City Counci I Sr. Accountant/Finance Mgr. Written approval by 2 members of Oversight Committee Investment Advisor/ Director of Finance/Finance Mgr. Written approval by member of Oversight Committee Sr. Accountant/Account Technician Sr. Accountant/Account Technician Senior Accountant Senior Accountant Senior Accountant Investment Adv./Oversight Comm. Investment Adv./Oversight Comm. Senior Accountant Oversight Committee City Council April 16, 2019, Item #1.6 APPROVED BROKER/DEALERS Resolution No. 18-020 Page 12 The following Broker/Dealers are approved for execution of trades. Broker/Dealers ANZ Securities Bank of Montreal Barclays Capital Baylock Beal Van BNP Paribas Securities Cantor Fitzgerald Citigroup Global Markets Commonwealth Bank of Australia Credit Agricole Credit Suisse Diawa Capital Markets Deutsche Bank FTN Financial Goldman Sachs HSBCJefferies INTL FCStone Financial J.P. Morgan Securities Jefferies Keybanc Capital Markets Merrill Lynch, Pierce, Fenner & Smith Mitsubishi Financial Group Mizuho Securities Morgan Stanley National Australia Bank Oppenheimer & Co Nomura Securities International Piper Jaffray Raymond James & Associates RBC Capital Markets RBS Securities Robert W. Baird Stifel, Nicolaus & Co, SMBC Nikko Securities Americas SG America Securities SunTrust Robinson Humphrey TD Securities U.S. Bancorp Investments UBS Securities Wells Fargo Securities This list of approved broker/dealers is subject to change at any time based upon periodic recommendations of the investment advisor throughout the year. Current year additions are in bold and italicized. 14 of 14 O`. OF POWgY crry`n rxe cpU,ca' DATE: TO: FROM: CONTACT: SUBJECT: City of Poway COUNCIL AGENDA REPORT April 16, 2019 Honorable Mayor and Members of the City Council Alan Fenstermacher, City Attorney Alan Fenstermacher, City Attorney afe nste rmacher(cDpoway. org APPROVED APPROVED AS AMENDED SEE MINUTES) DENIED REMOVED CONTINUED RESOLUTION NO. Resolution Amending the Master Fee Schedule to Establish Application Fees for Sidewalk Vendors Summary: At its March 19, 2019 meeting, the City introduced for first reading Ordinance No. 826 Ordinance") regulating sidewalk vendors in the City, in compliance with state law, including establishing a permitting process (Attachment B). The Ordinance was adopted following a second reading on April 2, 2019. Following the City Council's March 19, 2019 action, City staff studied the costs that will be associated with administering the sidewalk vending permit established by the Ordinance, and proposed the following permit fees based on its estimates of the same: (1) an initial permitting fee of $335, and (2) a renewal fee of $230. Fees for appeals of administrative citations will be the same as appeals of any other administrative citations under the City's existing fee schedule, which is the total amount of the appealed citation(s). Recommended Action: It is recommended that the City Council adopt the proposed Resolution (Attachment A) establishing the permit and appeal fee for sidewalk vendors. Discussion: The Ordinance created a new Poway Municipal Code ("PMC") Chapter 5.22 in order to regulate sidewalk vending in a manner consistent with state law, which was recently amended in order to force cities to allow sidewalk vending, subject to a number of restrictions that local jurisdictions are permitted to impose. (See, Government Code 51036 et seq. ). As set forth in Chapter 5.22, all sidewalk vendors are required to obtain a permit, and are permitted to appeal the issuance of administrative citations for violations of Chapter 5.22. The proposed Resolution would establish initial permitting and renewal fees at 335 and $ 230, respectively, allowing the City to recover costs that it will incur processing the permits, specifically including City staff and County Sheriff time, background checks and verification of other required information, state fees, and other 1 of 19 April 16, 2019, Item #1.7 related costs. The staff time and related costs in the following table represent a current estimate for the initial and renewal License application. Sidewalk Vendor License - Estimated Present Da Costs Description Initial Cost Renewal Cost City of Poway Staff Costs- Customer Services Clerical/Processing and Planning Division Review 55.93 49.45 Sheriffs Department Staff Costs- Licensing S ecialist/Back round and Clerical/Processing 207.71 155.07 Live Scan Fees 32. 70 License/Identification Card 1.10 1.10 California Disability Access and Education Fee 4.00 4.00 Indirect/Overhead 12% 36.17 25.15 TOTAL COSTS 337.61 234.78 The proposed Resolution does not alter the City's current fees for appeals of administrative citations. If a sidewalk vendor appeals a citation, the fee will be the total unpaid amount of the citation(s) that have been issued to that vendor, pursuant to the City's existing Master Fee Schedule. Environmental Review: The adoption of the proposed Resolution is not a "project" that is subject to CEQA review because it will not result in direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The Resolution is also exempt from CEQA pursuant to CEQA Guidelines Section 15273. Fiscal Impact: The amount of the fees set forth in the proposed Resolution are based on the City's estimated costs in order to allow the City to achieve full cost recovery with respect to administrating the permitting process set forth in Chapter 5.22 of the PMC. Public Notification: None. Attachments: Attachment A — Resolution Amending Master Fee Schedule Attachment B — Ordinance No. 826 Review, A ed/Approved By: Reviewed By: Appr vdB Wendy Waserman Alan Fenstermacher Tina M. White Assistant City Manager City Attorney City Manager 2of19 April 16, 2019, Item #1.7 RESOLUTION NO. 19 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, AMENDING THE MASTER FEE SCHEDULE TO ESTABLISH FEES FOR SIDEWALK VENDING PERMITS AND APPEALS SET FORTH IN CHAPTER 5.22 OF THE POWAY MUNICIPAL CODE WHEREAS, California Government Code section 66016 et seq. establishes procedures for the adoption of fees for services by local government; WHEREAS, on May 4, 2010, the City Council adopted Resolution No. 10-017, adopting a Master Schedule of Fees; WHEREAS, on March 19, 2019, the City Council introduced for a first reading an Ordinance adopting Chapter 5.22 of the Poway Municipal Code, creating regulations for sidewalk vending, including a new sidewalk vending permit, and the Ordinance was adopted following a second reading on April 2, 2019; WHEREAS, Section 5.22.040 and Section 5.22.080 of the Poway Municipal Code authorizes the City Council to establish fees for processing sidewalk vending permit applications and appeals of permit denials and administrative citations, respectively; and WHEREAS, the proposed fees do not exceed the reasonable costs of processing a sidewalk vending permit. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Poway hereby resolves and orders as follows: Section 1. The City Council finds that this amendment to the Master Fee Schedule is exempt from the requirements of CEQA pursuant to CEQA Guidelines Section 15273. Section 2. Effective May 2, 2019, the City's Master Fee Schedule is hereby amended to establish the following fees for purposes of Chapter 5.22 of the Poway Municipal Code: Sidewalk vending permit Renewal of sidewalk vending permit 3of19 335 230 April 16, 2019, Item #1.7ATTACHMENT A Resolution 19-### Page 2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 16th day of April 2019 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Faviola Medina, CMC, City Clerk 4of19 April 16, 2019, Item #1.7 ORDINANCE NO. 826 AN ORDINANCE OF THE CITY OF POWAY, CALIFORNIA, ADDING CHAPTER 5.22 TO THE POWAY MUNICIPAL CODE AND AMENDING SECTION 9.48.240(A) OF THE POWAY MUNICIPAL CODE RELATING TO REGULATION OF SIDEWALK VENDORS WHEREAS, on September 17, 2018, California Governor Edmund Gerald Brown signed Senate Bill 946 ("SB 946") into law, which adds Chapter 6.2 (commencing with Section 51036) to Part 1 of Division 1 of Title 5 of the California Government Code to regulate sidewalk vendors throughout the state, including within the City of Poway; WHEREAS, SB 946 took effect January 1, 2019, and limits the authority of cities and counties in the state to regulate sidewalk vendors, except as otherwise specifically and expressly provided; WHEREAS, existing provisions of the Poway Municipal Code prohibit or limit the activities of sidewalk vendors in a manner that may be in conflict with the provisions of SB 946; WHEREAS, the City Council adopts this Ordinance in accordance with the authority granted by SB 946; WHEREAS, the City Council declares that the regulations enacted by this Ordinance are intended to promote and protect the health, safety and welfare of the City's residents, businesses, and visitors and are in furtherance of the City's police powers; WHEREAS, the City Council further declares that the provisions of this Ordinance are intended to regulate the time, place, and manner of sidewalk vending directly relating to public health, safety, and welfare objectives and concerns; WHEREAS, the City Council further declares that the regulations enacted by this Ordinance, including, but not limited to those governing minimum sidewalk widths, sidewalk vending receptacle sizes, distance requirements, and food and merchandise storage, are intended and necessary to ensure compliance with the federal Americans with Disabilities Act of 1990 (Public Law 101-336) and other disability access standards; WHEREAS, the City Council further declares that the regulations enacted by this Ordinance are intended and necessary to ensure the public's use and enjoyment of natural resources and recreational opportunities; WHEREAS, the City Council further declares that the regulations enacted by this Ordinance are intended and necessary to protect the natural resources and scenic and natural character of the City's parks and to prevent an undue concentration of commercial activity that unreasonably interferes with the scenic and natural character of City parks; WHEREAS, the City Council further declares that the regulations enacted by this Ordinance are intended and necessary to ensure public access to and enjoyment of locations that are popular tourist and regional destinations with unusually high pedestrian, bicyclist, and vehicular traffic volumes, to protect the public from injury, and to minimize any interference and allow a clear exit path from commercial businesses to exit onto public sidewalks; and 6of19 April 16, 2019, Item #1.7ATTACHMENT B Ordinance No.826 Page 2 WHEREAS, the City Council desires to retain the ability for local enforcement of sidewalk vendor regulations, including the imposition of fines for violations, to the extent consistent with State law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS: SECTION 1: Chapter 5.22, entitled "Regulation of Sidewalk Vendors," is hereby added to the Poway Municipal Code to read in its entirety as follows: Chapter 5.22 Regulation of Sidewalk Vendors Sections: 5.22.010 Purpose 5.22.020 Definitions 5.22.030 Permit required 5.22.040 Issuance of permit 5.22.050 Operating conditions 5.22.060 Prohibited activities and locations 6.22.070 Penalties 5.22.080 Appeals 6.22.010 Purpose a) The purpose of this chapter is to establish a permitting and regulatory program for sidewalk vendors that complies with Senate Bill 946 (Chapter 459, Statutes 2018), codified as Government Code section 51036 at seq. The provisions of this chapter allow the City to encourage small business activities by removing total prohibitions on portable food stands and certain forms of solicitation while still permitting regulation and enforcement of unpermitted sidewalk vending activities to protect the public's health, safety and welfare. b) The City Council hereby finds that to promote the public's health, safety and welfare, restrictions on sidewalk vending are necessary to: 1. Ensure no unreasonable interference with the flow of pedestrian or vehicular traffic including ingress into, or egress from, any residence, public building, or place of business, or from the street to the sidewalk by persons exiting or entering parked or standing vehicles; 2. Provide reasonable access for the use and maintenance of sidewalks, pathways, poles, posts, traffic signs or signals, hydrants, firefighting apparatus, mailboxes, as well as access to locations used for public transportation services; 3. Reduce exposure to the City for personal injury or property damage claims and litigation; and 6of19 April 16, 2019, Item #1.7 Ordinance No.826 Page 3 4. Ensure sidewalk vending activities occur only in locations where such activities would not restrict sidewalk and pathway access, including impeding access by individuals with disabilities. 5.22.020 Definitions As used in this chapter, the following terms and phrases shall have the meaning ascribed to them in this part, unless the context in which they are used clearly requires otherwise. If a term or phrase is not defined in this part, or elsewhere in this code, the most common dictionary definition is presumed to be correct. a) "Alcoholic beverage" shall have the same meaning as defined in Section 9.54.020(8) of this code, or any successor section. b) "Cannabis" shall mean all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means cannabis products," "cannabis accessories," as defined by Sections 11018.1 and 11018.2 of the California Health and Safety Code, as may be amended from time to time. The term "cannabis" shall also have the same meaning as set forth in Section 19300.5(0 of the California Business and Professions Code, as may be amended from time to time. c) "Certified farmers' market" means a location operated in accordance with Chapter 10.5 (commencing with Section 47000) of Division 17 of the Food and Agricultural Code and any regulations adopted pursuant to that chapter, or any successor chapter. d) "Curb face" means the vertical or sloping surface on the roadway side of the curb. e) "Emergency vehicle access" means the roadway path or other surface that provides police or fire safety vehicular access from the dispatched point of origin to a facility, building, parcel, park or portion thereof. Emergency vehicle access includes, but is not limited to, fire lanes, public and private streets, parking lot lanes, access roadways, and walkways. f) "Food" means any item provided In Health and Safety Code Section 113781, or any successor section. g) "Hearing officer" means an individual designated by the City Manager to determine appeals pursuant to and in accordance with section 5.22.080. h) "Heating element" means any device used to create heat for food preparation. i) "Merchandise" means any item(s) that can be sold and immediately obtained from a sidewalk vendor which is not considered food. Items for rent shall not be considered merchandise. j) "Park" means any area dedicated or established as a public park, including without limitation, active and passive parks. 7of19 April 16, 2019, Item #1.7 Ordinance No.826 Page 4 k) "Pedestrian pathway" or "pathway" means a paved path or walkway developed primarily for pedestrian travel, other than a sidewalk. 1) "Person" means and includes all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, societies, and individuals transacting and carrying on any business in the City. m) "Public property" means all property owned or controlled by the City, including, but not limited to, alleys, parks, pathways, streets, parking lots, sidewalks, and walking trails. n) "Residential" means any area zoned exclusively as residential in Title 17 of this code, including without limitation the City's RR -A through RR -C, RS -1 through RS -7, RC and RA zoning districts. o) "Roaming sidewalk vendor" means a sidewalk vendor who moves from place -to - place and stops only to complete a transaction. p) "Sidewalk" means that portion of a street, other than the roadway, set apart by curbs, barriers, markings or other delineation for pedestrian travel. q) "Sidewalk vending receptacle" means a pushcart, stand, display, wagon, showcase, rack, or non -motorized conveyance used for sidewalk vending activities. "Sidewalk vending receptacle" shall not include pedal driven carts. r) "Sidewalk vendor" or "vendor" means a person(s) who sells food or merchandise from a sidewalk vending receptacle or from one's person, upon a public sidewalk or pathway. s) "Sidewalk vendor activities" or "sidewalk vending activity" means actions that qualify a person as a sidewalk vendor or actions done in anticipation of becoming a sidewalk vendor such as, but not limited to, installation, placement, or maintenance of any sidewalk vendor receptacles. t) "Special event" means any temporary permitted event approved by the City. u) "Stationary sidewalk vendor" means a sidewalk vendor who vends from a fixed location. v) "Street" means a way or place of whatever nature, publicly maintained, within City public right-of-way, and open to the use of the public for purposes of vehicular travel. w) "Swap meet" means a location operated in accordance with Article 6 (commencing with Section 21660) of Chapter 9 of Division 8 of the Business and Professions Code, and any regulations adopted pursuant to that Chapter, or any successor Chapter. x) "Temporary use permit" means any permit issued by the City of Poway for temporary uses (e.g., special event permits, temporary use permits, film permits, park or facility reservations). y) "Tobacco product" shall have the same meaning as defined in Section 8.05.020 of this code, or any successor section. 8of19 April 16, 2019, Item #1.7 Ordinance No.826 Page 5 5.22.030 Permit required A. Permit Required. No person, either for himself/herself or any other person, shall engage in any sidewalk vendor activities within the City without first applying for and receiving a permit from the City Manager, or his or her designee, in accordance with this chapter. B. Application. A written application for a sidewalk vendor permit shall be filed with the City Manager, or his or her designee, on a form provided by the City and shall contain the following information: 1. The name, address, and telephone number of the person applying to become a sidewalk vendor; 2. A copy of a California driver's license or identification card (or other photo identification deemed acceptable by the City), as well as a California driver's license or identification card number, individual taxpayer identification number, or municipal identification number (which shall not be available to the public for inspection, is confidential, and shall not be disclosed except as required to administer the permit or comply with a state law or state or federal court order); 3. The name, address, and telephone number of the person who will be in charge of any roaming sidewalk vendors, sidewalk vending activity and/or be responsible for the person(s) working at the sidewalk vending receptacle; 4. The name, address, and telephone number of all persons that will be employed as roaming sidewalk vendors or at a sidewalk vending receptacle; 5. The number of sidewalk vending receptacles the sidewalk vendor will operate within the City under the permit; 6. Whether the vendor intends to operate as a stationary sidewalk vendor or a roaming sidewalk vendor; 7. The day(s) and hours of operation the stationary sidewalk vendor intends to operate at such location(s); 8. The location(s) in the City where the stationary sidewalk vendor intends to operate; 9. The dimensions of the sidewalk vendor's sidewalk vending receptacle(s), including a picture of each sidewalk vending receptacle operating under the permit; 10. Whether the sidewalk vendor will be selling food, merchandise, or both; 11. If the sidewalk vendor is selling food, a description of the type of food to be sold, whether such foods are prepared on site, and whetherthe vendor requires a heating element to prepare the food; 12. If the vendor is selling merchandise, a description of the merchandise to be sold; 9of19 April 16, 2019, Item #1.7 Ordinance No.826 Page 6 13. A copy of the health permit required for any sidewalk vendors selling food, as required by the County of San Diego, Title 8 of the PMC, or any successor chapter; 14. Proof of his or her possession of a valid California Department of Tax and Fee Administration seller's permit, which shall be maintained during the pendency of the sidewalk vendor's permit; 15. A statement disclosing whether the applicant has ever been convicted of any criminal offense(s) and an agreement to submit to a criminal background check, including Live Scan fingerprinting; 16. An acknowledgment that the sidewalk vendor will comply with all other generally applicable local, state, and federal laws; 17. A certification that, to his or her knowledge and belief, the information contained within the application is true and correct; 18. An agreement by the sidewalk vendor to defend, indemnify, release and hold harmless the City, its City Council, boards, commissions, officers and employees from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relating (directly or indirectly) to the permit or the vendor's sidewalk vending activities. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, or proceeding whether incurred by the permittee, City, and/or the parties initiating or bringing such proceeding; 19. An acknowledgement that the sidewalk vendor's use of public property is at their own risk, the City does not take any steps to ensure public property is safe or conducive to the sidewalk vending activities, and the sidewalk vendor uses public property at his or her own risk; 20. An acknowledgment by the sidewalk vendor that he or she will obtain, and at all times during the duration of the permit, maintain any insurance of such types and in such amounts as required by the City's risk manager, and 21. Any other relevant information required by the City Manager. C. Application and Permit Fees. Each application for a sidewalk vendor permit shall be accompanied by an application fee as established by resolution of the City Council. The application and permit is only applicable to the individual(s) named on the application. If said permit is approved, it shall not be necessary for the permittee to obtain a City business certificate to carry on the activities authorized by said permit, unless such permittee maintains a permanent place of business within the City. 10 of 19 April 16, 2019, Item #1.7 Ordinance No.826 Page 7 5.22.040 Issuance of permit A. Within thirty (30) calendar days of receiving a complete application, the City Manager may issue a sidewalk vendor permit, with appropriate conditions, as provided for herein, if he or she finds based on all of the relevant information that: 1. The conduct of the sidewalk vendor will not unduly interfere with traffic or pedestrian movement (specifically including but not limited to complying with PMC Title 15 pedestrian clearances), or tend to interfere with or endanger the public peace or rights of nearby residents to the quiet and peaceable enjoyment of their property, or otherwise be detrimental to the public peace, health, safety or general welfare; 2. The conduct of the sidewalk vendor will not unduly interfere with normal governmental or City operations, threaten to result in damage or detriment to public property, or result in the City incurring costs or expenditures in either money or personnel not reimbursed in advance by the vendor; 3. The conduct of such sidewalk vending activity will not constitute a fire hazard, and all proper safety precautions will be taken; 4. The conduct of such sidewalk vending activity will not require the diversion of law enforcement personnel to properly police the area of such activity as to interfere with normal police protection for other areas of the City; 5. The sidewalk vendor has paid all previous administrative fines, completed all community service, and completed any other alternative disposition associated in any way with a previous violation of this chapter; calendar year; 6. The sidewalk vendor has not had a permit revoked within the same The sidewalk vendor's application contains all required information; 8. The sidewalk vendor has not made a materially false, misleading, or fraudulent statement of fact to the City in the application process; 9. The sidewalk vendor has satisfied all the requirements of this chapter; 10. The sidewalk vendor has paid all applicable fees as set by City Council resolution; 11. The sidewalk vendor's sidewalk vending receptacle and proposed activities conform to the requirements of this chapter; 12. The sidewalk vendor has adequate insurance to protect the City from liability associated with the sidewalk vendor's activities, including the naming of the City as an additional insured, as determined by the City's risk manager; and 13. The vendor has satisfactorily provided all information requested by the City Manager to consider the vendor's application. 11 of 19 April 16, 2019, Item #1.7 Ordinance No.826 Page 8 B. A sidewalk vendor permit is non -transferable. Any change in ownership or operation of a sidewalk vendor or sidewalk vending receptacle requires a new permit under this chapter. C. All permits issued under this chapter, regardless of when issued, expire on December 31 of the year in which they were issued. 5.22.050 Operating conditions All sidewalk vendors are subject to the following operating conditions when conducting sidewalk vending activities: A. All food and merchandise shall be stored either inside or affixed to the sidewalk vendor receptacle or carried by the sidewalk vendor. Food and merchandise shall not be stored, placed, or kept on any public property. If affixed to the sidewalk vendor receptacle, the overall space taken up by the sidewalk vendor receptacle shall not exceed the size requirements provided in this section. B. The sidewalk vendor permit shall be displayed conspicuously at all times on the sidewalk vending receptacle or the sidewalk vendor's person. If multiple sidewalk vendors are staffing a sidewalk vendor receptacle or working as roaming sidewalk vendors, each person shall wear their permit on their person in a conspicuous manner. C. Sidewalk vendors shall not leave their sidewalk vending receptacle unattended to solicit business for their sidewalk vending activities. Sidewalk vending receptacles shall not be stored on public property and shall be removed when not in active use by a vendor. D. All sidewalk vendors shall allow any law enforcement official, firefighter, life safety services officer, or code enforcement officer, at any time, to inspect their sidewalk vending receptacle for compliance with the size requirements of this chapter and to ensure the safe operation of any heating elements used to prepare food. E. Sidewalk vending receptacles shall not exceed a total height of three (3) feet, a total width of three (3) feet, and a total length of three (3) feet. F. No sidewalk vending receptacle shall be motorized or pedal -driven. G. If a sidewalk vending receptacle requires more than one (1) person to conduct the sidewalk vending activity, all sidewalk vendors associated with the sidewalk vending receptacle shall be within five (5) feet of the sidewalk vending receptacle when conducting sidewalk vending activities. H. Sidewalk vendors that sell food shall maintain a trash container in or on their sidewalk vending receptacle and shall not empty their trash into public trashcans. The size of the vendor's trash container shall be taken into account when assessing the total size limit of a sidewalk vending receptacle. I. Sidewalk vendors shall maintain sanitary conditions in the 10 -foot radius around and within the vicinity of the vendor and shall not leave any location without returning the location to the condition when the sidewalk vendor first arrived at the location, by, including but not limited to, picking up, removing, and disposing of all food, grease or other fluid, item, trash or refuse from 12 of 19 April 16, 2019, Item #1.7 Ordinance No.826 Page 9 their operation. Any disposal activities must comply with Chapter 13.09 of this Code and all other applicable stormwater law, rules and regulations, as well as all applicable law, rules and regulations relating to public health and safety. J. Sidewalk vendors shall maintain a minimum four (4) foot clear accessible path free from obstructions, including sidewalk vending receptacles and customer queuing area. K. Sidewalk vendors shall comply with the noise standards provided in Chapter 6.08 of this Code, and any successor sections. Additionally, all use of sound amplification, music, live entertainment, bells, whistles, and horns are prohibited when vending in residential areas. L. Sidewalk vendors shall not approach persons to sell food or merchandise and shall not interfere, in any way, with anyone engaged in an activity to sell food or merchandise. M. Sidewalk vendors shall not vend to or otherwise conduct transactions with persons in moving vehicles or vehicles parked or stopped. N. No freestanding commercial signs are permitted, as set forth in Chapter 17.40 of this Code. Sidewalk vendors shall not affix, employ or otherwise use a light display of any kind in connection with sidewalk vending activities, specifically including but not limited to flashing or animated lights. 5. 22. 060 Prohibited activities and locations A. Sidewalk vendors shall comply with all operating conditions, including those conditions set forth in Section 5.22.050. B. Sidewalk vendors shall not engage in any of the following activities: 1. Renting merchandise to customers. 2. Displaying merchandise or food that is not available for immediate sale. 3. Selling, processing, cultivating, distributing and/or delivering adult-oriented material, tobacco products, alcoholic beverages, drugs of any kind, pharmaceuticals, or cannabis, including medical and recreational marijuana and related merchandise or paraphernalia. 4. Using an open flame on or within any sidewalk vending receptacle. 5. All sidewalk vendors, regardless of whether a roaming sidewalk vendor or stationary sidewalk vendor, are prohibited from conducting sidewalk vending activities between the hours of 10:00 p.m. and 7:00 a.m, daily. In parks, sidewalk vending activities will end at 10:00 p.m. or one hour before park closure, whichever is earlier. In residential areas, all stationary sidewalk vending is prohibited. In residential areas, roaming sidewalk vending activity is prohibited between the hours of 6:00 p.m. or sunset, whichever is earlier, and 9:00 a.m. of the following day, Monday through Saturday, inclusive, and all day on Sundays and federal holidays. 6. Continuing to offer food or merchandise for sale, following, or accompanying any person who has been offered food or merchandise after the person has asked the vendor to leave or after the person has declined the offer to purchase food or merchandise. 13 of 19 April 16, 2019, Item #1.7 Ordinance No.826 Page 10 7. Knowingly making false statements or misrepresentations during the course of offering food or merchandise for sale. 8. Blocking or impeding the path of the person(s) being offered food or merchandise to purchase. 9. Making any statements, gesture, or other communication which a reasonable person in the situation of the person(s) being offered food or merchandise to purchase would perceive to be a threat and which has a reasonable likelihood to produce in the person(s) a fear that the threat will be carried out. 10. Touching the person(s) being offered to purchase food or merchandise without that person(s)' consent. 11. Selling of animals of any kind. C. Sidewalk vendors shall not engage in sidewalk vending activities at the following locations: 1. Within twelve (12) inches of any curb face on all roads; 2. Within fifteen (20) feet of any entrance or exit to a building, structure or facility; or 3. On any designated emergency vehicle accessway. 4. Any public property that does not meet the definition of a sidewalk including without limitation any alley, courtyard, unpaved trail, street, roadway or parking lot. 5. Within two hundred (200) feet of an area designated for a temporary special permit issued by the City, during the limited duration of the temporary special permit. If the City provides any notice, business interruption mitigation, or other rights to affected businesses or property owners under the City's temporary special permit, such notice will also be provided to any sidewalk vendors specifically permitted to operate in the area, if applicable. 6. Within two hundred (200) feet of the Poway Center for the Performing Arts, located at 15498 Espola Road, from the time period commencing two (2) hours before any ticketed event (including without limitation any play, performance, or concert) at the Poway Center for the Performing Arts is scheduled to begin, until two hours after that event has ended. 7. At the Blue Sky Ecological Reserve or Iron Mountain trailhead, specifically including but not limited to all associated parking lots, both of which were created and are maintained to allow residents and visitors to enjoy the natural landscape and habitat of myriad species of flora and fauna. Permitting any commercial sidewalk vending in the reserve would not only diminish the public's use and enjoyment of natural resources and recreational activities, such sidewalk vending activity will create an undue concentration of commercial activity that unreasonably interferes with the scenic and natural character of the reserve. 8. On any private property without the express written consent of the owner or lessee of the property. 14 of 19 April 16, 2019, Item #1.7 Ordinance No.826 Page 11 9. Sidewalk vendors shall not engage in sidewalk vending activities within fifty 50) feet of another sidewalk vendor. 10. Sidewalk vendors shall not engage in sidewalk vending activities within one hundred (100) feet of the property line of a school, a place of worship, or a child day-care facility. 11. Sidewalk vendors shall not engage in sidewalk vending activities within two hundred (200) feet of a permitted certified farmers' market or swap meet during the limited operating hours of that certified farmers' market or swap meet. 12. Stationary sidewalk vending activities shall only occur on sidewalks or pathways with a minimum width of eight (8) feet or larger. 13. Sidewalk vendors shall not engage in sidewalk vending activities within twenty-five (25) feet of a: zone; a) Fire hydrant; b) Curb which has been designated as yellow or red zone, or a bus c) Automated teller machine; d) Driveway, alley, or street corner; e) Trash or recycling receptacles, bike racks, benches, bus stops or similar public use items; and f) Public art objects, items, and displays. 14. Sidewalk vendors shall not engage in sidewalk vending activities that would violate provisions of this code relating to visibility requirements for streets, alleys, driveways, and intersections. 15. Stationary sidewalk vendors shall not sell food or merchandise or engage in any sidewalk vending activities at any park where the City has signed an agreement for concessions that exclusively permits the sale of food or merchandise by a concessionaire. 16. On any sidewalk with a gradient in excess of ten percent (10%). 17. Within two hundred (200) feet of any public safety facility, including without limitation police stations and fire stations. 18. Within twenty-four (24) inches of a parallel parking space. 19. On any sidewalk not adjacent to a state highway where vending equipment and queuing patrons would reduce clearance to less than four (4) feet. 20. On any sidewalk adjacent to a state highway where vending equipment and queuing patrons would reduce clearance to less than five (5) feet, with temporary restrictions of no less than three (3) feet. 15 of 19 April 16, 2019, Item #1.7 Ordinance No.826 Page 12 21. On any sidewalk where vending equipment and queuing patrons would restrict access requirements under the Americans with Disabilities Act. 22. On any sidewalk where vending equipment and queuing patrons would jeopardize the fire or life safety of any person. D. Sidewalk vending receptacles shall not touch, lean against or be affixed at any time to any building or structure including, but not limited to lampposts, parking meters, mailboxes, traffic signals, fire hydrants, benches, bus shelters, newsstands, trashcans, or traffic barriers. 5.22.070 Penalties A. Violations of this chapter shall not be prosecuted as infractions or misdemeanors and shall only be punished by the following administrative fine and rescission provisions. B. Any violation of this chapter may be punished by: 1. An administrative fine not exceeding one hundred dollars ($100) for a first violation; 2. An administrative fine not exceeding two hundred dollars ($200) for a second violation within one (1) year of the first violation; and 3. An administrative fine not exceeding five hundred dollars ($500) for each additional violation within one (1) year of the first violation. C. If a sidewalk vendor violates any portion of this chapter and cannot present the citing officer with a proof of a valid permit, the sidewalk vendor may be punished by: 1. An administrative fine not exceeding two hundred fifty dollars ($250) for a first violation; 2. An administrative fine not exceeding five hundred dollars ($500) for a second violation within one (1) year of the first violation; and 3. An administrative fine not exceeding one thousand dollars ($1,000) for each additional violation within one (1) year of the first violation. D. Upon proof of a valid permit issued by the City, the administrative fines set forth in subsection C shall be reduced to the administrative fines set forth in subsection B, or any successor sections. E. The City Manager, or his or her designee, may rescind a permit issued to a sidewalk vendor for the term of that permit upon the fourth violation or subsequent violations. 5.22.080 Appeals A. Decisions to deny an application for a permit or to impose administrative fines may be appealed by any interested person. Appeals shall be heard and determined by the Hearing Officer. 16 of 19 April 16, 2019, Item #1.7 Ordinance No.826 Page 13 B. Appeals shall be initiated within ten (10) calendar days of the decision or imposition of administrative fine. If the 10th day falls on Saturday, Sunday, or another day when City Hall is closed, the deadline shall be extended to 5:00 p.m. of the next working day. Appeals of a decision to deny an application for a permit shall be accompanied by a fee as established by resolution of the City Council. Notwithstanding any other provision of law, a person appealing an administrative fine is not required to pay the administrative fine as a prerequisite to filing an appeal. C. Appeals of decisions or administrative fines shall be made in writing to the Hearing Officer. The appeal must be legible and set forth: The appellant's full name, address and phone number; 2. The subordinate entity; 3. The date of the determination; 4. The determination for which review is sought; 5. The appellant's interest in the appealed determination; and 6. Each reason why the appellant appeals the determination. D. Decisions regarding administrative fines that are appealed shall not become effective until the appeal is resolved. E. An insufficient appeal shall be returned to the appellant. F. If the appeal is sufficient, the City Clerk shall set the appeal for a hearing before the Hearing Officer within thirty (30) calendar days of the filing of the appeal unless both the appellant and the Hearing Officer consent to a later date. G. The Hearing Officer shall give notice in writing to the appellant of the time and location of the appeal hearing. At the hearing, the Hearing Officer shall review the record of the decision or administrative fine and hear testimony of the appellant, if any, the applicant and any other interested party. The appeal shall be reviewed and determined on a de novo basis. 1. If an administrative fine is the subject of an appeal, the Hearing Officer shall take into consideration the person's ability to pay the fine. The Hearing Officer shall provide the person with notice of his or her right to request an ability -to -pay determination and shall make available instructions or other materials for requesting an ability -to -pay determination. The person may request an ability -to -pay determination at or before the hearing or while the administrative fine remains unpaid. 2. If the person meets the criteria described in subdivision (a) or (b) of Government Code Section 68632, or any successor section, the Hearing Officer shall accept, in full satisfaction, twenty percent (20%) of the administrative fine imposed pursuant to this chapter. 3. The Hearing Officer may allow the person to complete community service in lieu of paying the total administrative fine, may waive the administrative fine, or may offer an alternative disposition. 17 of 19 April 16, 2019, Item #1.7 Ordinance No.826 Page 14 H. After the hearing, the Hearing Officer shall affirm, modify or reverse the original decision or administrative fine_ When a decision or administrative fine is modified or reversed; the Hearing Officer shall state the specific reasons for modification or reversal. Decisions on appeals shall be rendered within thirty (30) calendar days of the close of the hearing. The Hearing Officer shall mail notice of a decision to the appellant. Such notice shall be mailed within five 5) working days after the date of the decision to the appellant. The decision of the Hearing Officer shall be final. SECTION 2: Section 9.48.240, subdivision (A) of the Poway Municipal Code is hereby amended to read as follows: Except and only as expressly permitted in PMC Chapter 5.221 Nno person shall sell or offer for sale any goods, wares, articles or merchandise; or practice, carry on, conduct or solicit for any trade, occupation, business or profession within a City Community Services facility without the authorization of the Director. Nothing in this provision shall prohibit sales of articles or solicitations by nonprofit organizations that are otherwise allowed by law. SECTION 3: If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise invalid, such invalidity shall not affect the validity of this entire Ordinance or any of the remaining portions hereof. The City Council hereby declares that it would have passed this Ordinance, and each section, subsection, subdivision, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. SECTION 4: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. SECTION 5: This Ordinance shall be codified. EFFECTIVE DATE: This Ordinance shall be in full force and effect thirty (30) days after its adoption. CERTIFICATION/PUBLICATION: The City Clerk shall certify the adoption of this Ordinance and cause it or a summary of it, to be published with the names of the City Council members voting for and against the same in the Poway News Chieftain, a newspaper of general circulation in the City of Poway within fifteen (15) days after its adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in accordance with Government Code § 36933. 18 of 19 April 16, 2019, Item #1.7 Ordinance No.826 Page 15 Introduced and first read at a regular meeting of the City Council of the City of Poway. California, held on the 19th day of March 2019, and thereafter, PASSED, AND ADOPTED at a regular meeting of the City Council of the City of Poway held on the 2nd day of April 2019. AYES: MULLIN, FRANK, GROSCH, VAUS NOES: NONE ABSENT: LEONARD DISQUALIFIED: NONE'..:.) Steve Vaus, Mayor ATTEST: Faviola Medina CMC, City Clerk 19 of 19 April 16, 2019, Item #1.7 City of PowayE)COUNCIL AGEN®A REPORT DATE: April 16, 2019 TO: Honorable Mayor and Members of the City Council FROM: Tina White, City Manager CONTACT: Donna Goldsmith, Director of Finance 858) 668-4411 or dgoldsmith( )oway.org APPROVED APPROVED AS AMENDED SEE MINUTES) DENIED REMOVED CONTINUED RESOLUTION NO. Debra Weatherington, Senior Accountant 858) 668-4429 or dweatherington gnpoway.org SUBJECT: Award of Contract to Davis Farr, LLP for Professional Auditing Services Summary: Based upon a recent Request for Proposals (RFP) process, staff is seeking approval to enter into an agreement with Davis Farr, LLP to provide professional auditing services to the City of Poway for three (3) fiscal years beginning with the fiscal year ending June 30, 2019, with the option to extend the agreement for two additional one-year terms. Recommended Action: It is recommended that the City Council award a contract to Davis Farr, LLP for professional auditing services and authorize the City Manager to execute all necessary documents associated with the agreement. The initial term of the contract is three years with the option to extend for two additional one-year terms. Discussion: The City of Poway's (City) current contract with Rogers, Anderson, Malody & Scott, LLP for auditing services has expired. In January 2019, the City conducted an RFP process, soliciting proposals from auditing firms to provide annual independent auditing services to the City. The requested services include audits of the City of Poway, the Poway Housing Authority, and the Public Financing Authority. Additionally, services include preparation of the Financial Statements in the Comprehensive Annual Financial Report (CAFR), Agreed-upon Procedures Applied to the Appropriations Limit Schedule (Gann Limit), and the Single Audit, if required. Optional services include preparation of the annual State Controller's Report and Franchise Fee, Operating Lease and Transient Occupancy audits. The RFP was posted on the California Society of Municipal Officer's website, as well as the City's online a -bid board. Seven (7) firms submitted proposals. Based upon review of each firm's pricing, qualifications, and responsiveness to the RFP requirements, staff conducted interviews with the three (3) highest rated firms. Following the interviews, staff conducted reference checks on the top two finalists. 1 of 40 April 16, 2019, Item #1.8 Findings: After a thorough evaluation of submitted proposals, Davis Farr, LLP was selected as the firm best suited to meet the City's current and future needs. Davis Farr, LLP has extensive experience working with the public sector, including the audit of other local cities such as Carlsbad and Santee. Staff recommends the City enter into an agreement with Davis Farr, LLP for a period of three years, with the option to extend for two additional one-year terms. Environmental Review: None. Fiscal Impact: There is currently $60,000 available for these services in the fiscal year 2018-19 Adopted Budget. These funds are split between the Director of Finance's operating budget ($51,000; 110010- 17030) and the Development Services Housing Authority Division's operating budget ($9,000; 309030-17030). Public Notification: None. Attachment: A. Professional Services Agreement with Davis Farr, LLP Reviewed/Approved By: Wendy Kaserman Assistant City Manager 2 of 40 Reviewed By: Approved By: ' A t" Alan Fenstermacher Tina M. White City Attorney City Manager April 16, 2019, Item #1.8 City of Poway STANDARD AGREEMENT FOR SERVICES This Agreement, entered into this 17 day of April, 2019, by and between the CITY OF POWAY (hereinafter referred to as "City") and DAVIS FARR, LLP (hereinafter referred to as "Consultant'). RECITALS WHEREAS, City desires to obtain the services of a private consultant to perform professional auditing services; and WHEREAS, Consultant is a certified public accounting firm 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: 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 Aareement. 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 40 ATTACHMENT A April 16, 2019, Item #1.8 5. 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. B. 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. S. 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 40 April 16, 2019, Item #1.8 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: 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. 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) 5of40 April 16, 2019, Item #1.8 years 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, Indemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless Indemnitees 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 Indemnitees may suffer or incur or to which Indemnitees 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, Indemnitees shall have no liability to Consultant or any other person for, and Consultant shall indemnify and hold harmless Indemnitees from and against, any and all Claims that Indemnitees may suffer or incur or to which Indemnitees 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 Indemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Consultant's negligence. 6 of 40 4 April 16, 2019, Item #1.8 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 Indemnitee 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 Indemnitees 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 40 April 16, 2019, Item #1.8 Consultant'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. 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 40 6 April 16, 2019, Item #1.8 Contractor 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 40 April 16, 2019, Item #1.8 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written. CITY OF POWAY CONSULTANT By: By: Tina White, City Manager Date: ATTEST: Faviola Medina, City Clerk APPROVED AS TO FORM: By: Alan Fenstermacher, City Attorney 10 of 40 Shannon Ayala, CPA, Partner Date: April 16, 2019, Item #1.8 SPECIAL PROVISIONS" W3:11-3l11dV_1W A. Scope of Services. Consultant agrees to perform consulting services as required by City, which shall consist of the professional auditing services further described in the Scope of Services submitted with the proposals dated February 22, 2019, which is included in this document as Attachment A, 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 proposals dated February 22, 2019, which are included in this document as Attachment B. Total fee is not to exceed $332,065, which is inclusive of expenses and includes the two optional one-year extensions as well as additional optional services. 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 April 17, 2019, and ending April 16, 2022 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. 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. 11 of 40 April 16, 2019, Item #1.8 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: City of Poway P.O. Box 789 Poway, CA 92074 To Consultant: Davis Farr, LLP 5927 Priestly Drive, Suite 201 Carlsbad, CA 92008 12 of 40 2 April 16, 2019, Item #1.8 EXHIBIT "B" Cal Gov Code 6 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 i Miscellaneous > Chapter 21 Public Pension and Retirement Plans > Article 4 California Public Employees' Pension Reform Act of 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) 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 13 of 40 April 16, 2019, Item #1.8 Cal 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. OA 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: 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)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. 14 of 40 April 16, 2019, Item #1.8 Cal 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 ajudgeship 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 S 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 61 (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 (1)(1) 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 1" in subd (i). 16 of 40 April 16, 2019, Item #1.8 ATTACHMENT A p• DavisFarr CERTIFIED PUBLIC ACCOUNTANTS CITY OF POWAY PROPOSALFOR PROFESSIONAL AUDITING SERVICES Prepared By: Davis Farr LLP 5927 Priestly Drive, Suite 201 Carlsbad, CA 92008 February 22, 2019 Contact Person: Shannon Ayala, CPA I Partner Main: 760.536.5140 1 Direct: 760.298.5872 Email: sayala@davisfarr.com 16 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Table of Contents Transmittal Letter Section A - About Davis Farr LLP............................................................................................................ 1 Section B - Our Prior Experience Auditing Government Agencies...................................................... 2 Section C - Client References................................................................................................................... 4 Section D - Partner, Supervisory and Staff Qualifications and Experience ........................................ 5 Section E -Audit Approach 11 Section F - Implementation of New GASB Pronouncements............................................................. 16 SectionG - Scope of Work..................................................................................................................... 17 SectionH - Proposed Timing................................................................................................................. 18 Section I - Segmentation of the Audit.................................................................................................. 18 APPENDIX Peer Review Documentation 17 of 40 April 16, 2019, Item #1.8 Oj ®avisFarr CERTIFIED PUBLIC ACCOUNTANTS February 22, 2019 City of Poway Attn: Donna Goldsmith, Finance Director 13325 Civic Center Drive Poway, CA 92064 Dear Ms. Goldsmith: Davis Farr LLP 2301 Dupont Drive I Suite 200 1 Irvine, CA 92612 Main: 949.474.20201 Fax: 949.263.5520 We are pleased to provide our proposal to perform audit services to the City of Poway (the "City') for the fiscal years ending June 30, 2019 through 2021, with options to extend for two additional years. Our service philosophy is one of open and constant communication, a proactive approach and responsive, value-added services. We will listen to your ideas and concerns and will bring creative solutions to you in both financial and other operational areas. We are aware that while the City has solicited numerous proposals, Davis Farr LLP would be your best selection for the following reasons which are set forth in greater detail in our proposal: We take a proactive leadership role in local government accounting and auditing issues. We serve on the Government Accounting and Audit Committee of the Cal CPA Society and are frequent speakers on technical topics at conferences and training events throughout California. In addition to providing extensive audit and information technology training for our staff, Davis Farr LLP provides an annual Governmental Accounting Standards Board (GASB) Technical Update each spring for our clients. Our commitment to training our clients benefits you by ensuring you receive accurate and timely information that impact budgeting and financial reporting. We extensively utilize IDEA data mining software to evaluate anomalies in your accounting data. This helps focus our auditors' attention on potential errors in the accounting records and transactions that could be more susceptible to fraud. We appreciate the opportunity to share our credentials and look forward to developing our professional relationship. Our proposal for fiscal years 2019- 2023 remain a firm and irrevocable offer for the 90 days. I look forward to you contacting me so that I may answer further any questions which you may have. You may contact me at (760) 298-5872. Very truly yours, ' "_/ n'nIlIiNLF'IAh uM' Shannon Ayala, /CPA Partner 18 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section A — About Davis Farr LLP Background Information — Davis Farr LLP is a full-service accounting firm that specializes in providing attest and advisory services to federal, state, and local governments as well as non- profit entities out of our Carlsbad and Irvine offices. Our personnel have served governmental and non-profit entities for over 40 years. A breakdown of our government audit personnel by classification is as follows: License to Practice in California — Davis Farr LLP and all key personnel are licensed with the California State Board of Accountancy to practice as independent certified public accountants. There has been no disciplinary action taken or pending against the firm during the past three years with state regulatory bodies or professional organizations. Independence — Davis Farr LLP is independent with respect to the City of Poway as defined by U.S. General Accounting Office's Government Auditing Standards and Generally Accepted Auditing Standards. Quality Control — Davis Farr LLP and its Partners are members of the American Institute of Certified Public Accountants (AICPA) and is a member of the AIPCA's Government Audit Quality Center. Our firm is a voluntary participant in the AICPA Peer Review Program. Included in the appendix is our most recent Peer Review report where our firm received a Pass. A Pass demonstrates the highest level of quality control in a Peer Review. Davis Farr LLP has not had any federal or state desk reviews or field reviews during the past three years with the exception of a review performed by the Department of Transportation (DOT). The report concluded that our audit work complied with the requirements of the single audit act, the uniform guidance, and DOT's major programs and included a recommendation related to documentation. There has been no disciplinary action taken or pending against the firm during the past three years with state regulatory bodies or professional organizations. 10 19 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section A — About Davis Farr LLP, (Continued) Training — Every professional of the firm must enroll in continuing professional education courses. Each person is required to take at least 80 hours of training over a two-year period including 24 hours a year specific to government accounting and audit topics. Courses cover a wide spectrum of professional and technical subjects, and include Fraud Auditing, Professional Ethics and Governmental Accounting and Auditing topics to help the practitioner maintain his/her professional expertise. Section B — Our Prior Experience Auditing Government Agencies Davis Farr LLP is a leader in the local government sector throughout the Southern California Area. Currently, we service approximately 60 local, state, and federal government entities. Davis Farr LLP services routinely provided to our clients include, but are not limited to: Financial statement audits prepared in accordance with generally accepted auditing standards (GAAS) and Government Auditing Standards. Financial statement reviews & compilations prepared in accordance with Statements on Standards for Accounting and Audit Services (SSARS), issued by the AICPA Accounting and Audit Services Committee (ARSC). Attestation engagements involving internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. Compliance audits of federally -funded assistance agreements and negotiated contracts as well as all engagements involving internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulation, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the new Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Agreed upon procedures audits for special projects. We perform a number of agreed upon procedure audits to help our clients evaluate contract and law compliance for Transient Occupancy Taxes, Franchise Taxes, Utility User Taxes, Management Agreements to operate golf courses and other government owned facilities, and cost or revenue sharing agreements between government agencies. Additionally, we regularly perform agreed upon procedures for special internal projects such as evaluating compliance with purchasing policies, testing credit card transactions, performing petty cash counts, and other procedures. We typically supplement these services by providing management with sound recommendations to strengthen internal controls and/or improve operating efficiencies. 20 20 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section B — Our Prior Experience Auditing Government Agencies, (Continued) Our government expertise includes Cities, Special Districts, and other Governmental entities. Among the government agencies that the professionals of Davis Farr LLP have served recently are the following: Bighorn Desert View Water Agency City of Avalon City of Carlsbad City of Commerce City of Coronado City of Dana Point City of Delano City of EI Segundo City of Fontana City of Fresno Housing Authority City of Garden Grove City of Huntington Beach City of Mission Viejo City of Jurupa Valley City of San Bernardino Water Department City of Santee City of Torrance City of Upland City of Victorville City of Villa Park City of Woodland Coachella Valley Conservation Authority Coachella Valley Enterprise Zone 21 of 40 County of Fresno Housing Authority County of San Diego Eastern Municipal Water District Irvine Ranch Water District Leucadia Wastewater District Municipal Water District of Southern California Oxnard Housing Authority Placer County Water Agency Rancho California Water District Salton Sea Authority San Diego Association of Governments San Diego County Water Authority San Diego Local Agency Formation Commission San Diego Pooled Insurance Authority San Gabriel Basin Water Quality Authority South Coast Water District South Montebello Irrigation District Sweetwater Authority Tahoe Regional Planning Agency Tahoe Transportation District Ventura Housing Authority Walnut Valley Water District West Basin Municipal Water District 30 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section C — Client References For your convenience, we have listed below references for audit work currently being performed by Davis Farr LLP personnel for several Cities throughout Southern California. For each of the references, we currently serve as independent auditors and have served these clients for a number of years. Each of the clients noted above had an audit prepared with GAAP and Government Auditing Standards and the financial statements received the GFOA award. 22 of 40 40 City of Santee 450 Tim 619.258.4200 ext. 143 10601 Magnolia Avenue McDermott, tmcdermott@cityofsanteeca.gov Santee, CA 92071 Finance Director City of Garden Grove 1,000 Ellis Chang, 714.741.5066 1122 Acacia Parkway Finance ellisc@ggcity.org Garden Grove, CA 92840 Manager City of Carlsbad 750 Aaron Beanan, 760.602.2414 1635 Faraday Avenue Finance aaron.beanan@carlsbadca.gov Carlsbad, CA 92008 Manager Sweetwater Authority 250 Rich Stevenson, 619.409.6711 505 Garrett Avenue Finance rstevenson@sweetwater.org Chula Vista, CA 92910 Director City of Mission Viejo 400 Cheryl Dyas, 949.470.3059 200 Civic Center Director of cdyas@cityofmissionviejo.org Mission Viejo, CA 92691 Administrative Services Each of the clients noted above had an audit prepared with GAAP and Government Auditing Standards and the financial statements received the GFOA award. 22 of 40 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section D — Partner, Supervisory and Staff Qualifications and Experience The successful outcome of any audit requires personnel with the managerial and technical skills to perform the work required. The engagement team who will serve the City of Poway have served together as a team of professionals on numerous financial audit examinations of local government entities. While not anticipated, any personnel substitutions will be of equally qualified personnel. We believe that efficient administrative management and supervision of the audits is an extremely critical factor in achieving the desired results for City of Poway. In that regard, our proposal organizational structure for providing independent auditing services is as follows: 50 23 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Shannon Ayala, CPA PARTNER California CPA Certificate No. 88126, January 2004 Ms. Ayala will serve as the Partner on this audit. She will oversee the project to ensure all required deadlines are met, provide technical assistance to the audit teams, and review the final reports before they are released. Ms. Ayala is a Certified Public Accountant with seventeen years of audit experience, spending most of that time on audits for local governments in San Diego County. Ms. Ayala has performed financial statement audits of cities and special districts; grant specific audits of funds awarded by Federal, state, and county governments; Single Audits in accordance with Uniform Guidance, and compliance audits. EMPLOYMENT HISTORY Davis Farr LLP: June 2015 -current Ten years at a National CPA firm Two years at Lennar Homes EDUCATION Bachelor of Science —Accounting, San Diego State University GOVERNMENT AGENCY AUDIT EXPERIENCE City of Carlsbad City of Del Mar City of San Marcos Imperial County Local Agency Formation Commission Leucadia Wastewater District San Diego Association of Governments San Dieguito River Park Joint Powers Authority Sweetwater Authority 24 of 40 City of Coronado City of Escondido City of Santee San Diego Local Agency Formation Commission Rancho California Water District San Diego County Water Authority Salton Sea Authority Vallecitos Water District April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES JENIFER FARR, CPA, MBA PARTNER California CPA Certificate No. 76292, October 1998 Ms. Farr will serve as the Quality Control Reviewer on the engagement. As a second reviewer, Ms. Farr will be involved in approving the audit plan, reviewing key audit workpapers, reviewing all reports, and acting as a second technical resource to the City. Ms. Farr is a Certified Public Accountant with over 20 years of experience in local government auditing. Ms. Farr is a frequent speaker on matters pertaining to technical issues and new GASB pronouncements. Ms. Farr is also responsible for training in the area of local governmental accounting and auditing. EDUCATION PROFESSIONAL AFFILIATIONS & AWARDS California Society of Certified Public Accountants o Government Accounting & Auditing Committee California Society of Municipal Finance Officers American Institute of Certified Public Accountants GFOA CAFR Reviewer Recipient of the Cal CPA 2015 Women to Watch award in the Experienced Leader category Bachelor of Arts - Business Administration/Accounting (California State University, Fullerton) Bachelor of Arts - English (California State University, Fullerton) Masters of Business Administration (California State University, Fullerton) AUDITS OF CALIFORNIA CITIES City of Avalon City of Highland City of Benicia City of Indian Wells City of Burbank City of La Quinta City of Carlsbad City of Mission Viejo City of Commerce City of National City City of Campbell City of Orange City of Coronado City of Palm Springs City of Costa Mesa City of Rosemead City of Culver City City of San Bruno City of Dana Point City of Santee City of Delano City of Upland City of Fontana City of Victorville City of Fountain Valley City of Villa Park City of Garden Grove City of Walnut Creek City of Half Moon Bay City of Whittier City of Hayward City of Woodland 7¢ 25 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES ERICK MARTIN, CPA MANAGER CA CPA Certificate No. 121760, December 2013 Mr. Martin has over seven years of audit experience, spending the majority of that time on audits for local governments. Mr. Martin has performed financial statement audits of cities and special districts; grant specific audits of funds awarded by Federal, state, and county governments; Single Audits, and compliance audits. Mr. Martin will be responsible for managing the audit engagement and will supervise the staff assigned. Davis Farr LLP: June 2015 -current National CPA firm: January 2011 -June 2015 EDUCATION Bachelor of Business Administration — Accounting California State University, Fullerton AUDITS OF CALIFORNIA CITIES City of Costa Mesa City of Villa Park City of San Marcos City of Upland City of Moreno Valley City of Garden Grove City of EI Segundo AUDITS OF SPECIAL PURPOSE GOVERNMENTS Palm Springs Desert Resorts Conventions and Visitors Authority Walnut Valley Water District Mesa Consolidated Water District Irvine Ranch Water District Puente Basin Water Agency Orange County Sanitation District Coachella Valley Mosquito District West Basin Municipal Water District San Bernardino Municipal Water Department 2E 26 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES JEFFREY OLINAREZ SENIOR AUDITOR ROLE ON PROJECT Jeffrey will serve as the in -charge on this audit. He will conduct the day to day fieldwork, supervise staff auditors on the engagement, and will prepare all financial statements and reports. His experience has encompassed financial and compliance audits of governmental and non-profit engagements, which have been performed in accordance with "Government Auditing Standards" which have all included a review of the entity's internal control and financial management system. EMPLOYMENT HISTORY Davis Farr LLP, Senior Auditor—January 2018 through present Davis Farr LLP, Staff Auditor — July 2016 through December 2017 EDUCATION Bachelor of Science in Accounting Azusa Pacific University, Azusa, CA RELEVANT EXPERIENCE AUDITS OF CALIFORNIA CITIES (including Single Audits) City of Fontana City of Victorville City of Mission Viejo City of Santee AUDITS OF SPECIAL PURPOSE GOVERNMENTS (includino Single Audits) Beach Cities Health District Eastern Municipal Water District Irvine Ranch Water District Sweetwater Authority South Bay Irrigation District Rancho Cucamonga Water District INTERNAL CONTROL AND GRANT SPECIFIC AUDITS FOR US FEDERAL AGENCIES Centers for Medicare & Medicaid Services Special Inspector General for Afghanistan Reconstruction U 27 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES DIEGO VANEGAS, CPA, CISA, CITP PARTNER INTRODUCTION Mr. Vanegas, CPA, CISA, CITP has over 10 years of progressive governmental accounting and audit experience, including extensive compliance audit experience for governmental and non-profit agencies. He has been involved in financial/compliance audits, internal control audits and assessments, operational/performance audits, and cost proposal analysis/price reviews for various governmental agencies. Mr. Vanegas has served in many capacities depending on the size and requirements of the engagements. He has participated in audits of federal agencies such as NSF, CMS, and CNCS, among others. Additionally, Mr. Vanegas has been involved in agreed -upon - procedures and audit engagements of state/local agencies. These engagements have often combined both financial and compliance aspects of the audit as well as Information Technology IT). Furthermore, he has strong internal control audit experience through the performance of SSAE 16 Service Organization Controls (formerly known as SAS 70) audits of the internal controls of service organizations, as well as knowledge of Government Auditing Standards, Office of Management and Budget (OMB) Circular A-87 and the Federal Acquisition Regulations (FAR). EMPLOYMENT HISTORY Davis Farr LLP: June 2015 through present Top 10 National CPA Firm: Manager, Senior Associate, Associate — May 2005 to June 2015 EDUCATION Bachelor of Science in Business Administration, with an emphasis in Accounting California State University - Los Angeles Bachelor of Science in Computer Information Systems, with an emphasis in Business Systems California State University - Los Angeles Certified Public Accountant, State of California, No. 113040 Certified Information Technology Professional, No. 3298 Certified Information Systems Auditor 10 28 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section E —Audit Approach Davis Farr plans and conducts our engagements in the most efficient manner possible, and our audit approach is unique with regard to the following: Our firm is sensitive to the priorities and work requirements of our clients. We work around the schedules of our clients when scheduling segments of the audit or requesting documentation in order to minimize disruption of City staff and to complete the audit in a timely manner. Whenever possible, we use accounting support already prepared by the City staff to avoid duplication or unnecessary requests for audit supporting schedules. Our firm's expertise is in governmental auditing. Our auditors are GASB experts and skilled at addressing audit issues that are specific to local governments. You will not spend time training our personnel. When formulating internal control recommendations, we obtain a thorough understanding of the specific circumstances at your City to provide a tailored, practical recommendation. Throughout the year we are a resource to our clients in providing accounting advice, researching technical questions, dealing with tax problems, and helping with other problems as they arise. Audit Software - We utilize CaseWare audit software for the electronic City of workpapers. We have the ability to accept audit documentation in either hard copy or electronic format. CaseWare allows us the ability to import trial balances that can be provided in either excel or a text document. Some of the benefits of using CaseWare trial balance software are as follows: We can create our own lead sheets (i.e., analytical review comparison schedules). This limits the amount of time finance staff spends creating audit schedules. Our software automatically generates analytical review reports by account numberfor ease of analyzing significant fluctuations between fiscal years. We can link the financial statement schedules directly to the CaseWare trial balances. As a result, we can provide the City with financial statements almost immediately after receiving the trial balance from the City. Additionally, journal entries are easy to post to the financial statement schedules and the risk of data entry error is minimized. 29 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section E —Audit Approach, (Continued) We can provide the City with reports showing the coding of the financial statement schedules for ease of review by City staff. These reports show each account coded to a specific financial statement line item as well as journal entries that are posted during the audit. Creating color PDF's of final reports is a seamless process for our audit staff. Data Mining Software We have a dedicated team of personnel trained to use special data mining software, IDEA. Our software uses source data from your accounting system to search for anomalies, such as duplicate or voided checks, cross-referencing vendor addresses with employee addresses, detecting accounting transactions recorded on the weekend, reviewing journal entry postings for unauthorized individuals. The IDEA software identifies specific transactions for the auditors to review for potential fraud or error. Internal Control Evaluation Our approach to evaluating internal controls involves observation and inquiry. We spend time with the personnel responsible for the accounting cycles to gain an understanding of the processes. We also carefully evaluate your policies and procedures. After our initial evaluation, we identify key controls in your processes and design test to evaluate the effectiveness of those processes. In the initial year of the audit, we will focus on the following accounting cycles: Billing and cash receipting Capital assets Purchase and disbursements Payroll Investment and cash controls Information systems In future years, we will review the accounting cycles noted above but also look at other processes such as credit card transactions, petty cash, inventory controls, offsite cash receipting, employee reimbursements, contract compliance, and other areas. Our goal is to modify our audit approach every year to further evaluate your internal controls. 120 30 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES During the planning phase of the audit, we plan to perform the following procedures: Meet with finance personnel to obtain an understanding of significant transactions during the year. Communicate with the City Council regarding fraud, compliance with laws, and any concerns they have regarding the finances of the City. Perform internal control evaluations as noted on the previous page. Determine materiality levels that will be used in selecting audit transactions. Perform a risk assessment to develop the audit plan for the year. Review minutes of City Council meetings. Review important new contracts, bond documents, and agreements. Evaluate compliance with investments. Test purchase orders and contract management. Test a sample of cash disbursements to determine adherence to policies and internal controls. Perform a review of the organization's information systems and controls. Perform compliance testing of federal grants, as necessary. Review the prior audited financial statements and provide feedback to City staff regarding best practices for financial reporting. Provide a GASB Update and templates for implementing new accounting standards. After the books are closed and ready for audit, we will perform our year-end procedures which include the following: We will confirm 100% of all cash and investment balances and test market values provided by your investment custodians. We will test for proper cutoffs of accounts receivable and grants receivable. We will confirm and test material notes and loans receivable. We will test additions and deletions to capital assets. We will review depreciation expense for reasonableness. 130 31 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES We will test interfund transactions including due to/due from other funds, advances, and transfers. We will review legal documents supporting loans and test the allowability of transfers out of restricted funds. We will test current liabilities and perform a search for unrecorded liabilities. We will review unearned revenue balances for proper cutoffs. We will test the balances of accrued payroll and employee related liabilities. Testing of actuarial valuations and calculations related to OPEB obligations. Testing of actuarial valuations and calculations related to pension obligations and new disclosures under GASB 68. Evaluation of claims andjudgments payable. Testing of restrictions and classifications of net position. Analyze grant revenues and expenses to ensure proper matching within the fiscal year. Test the reasonableness of interest income, realized, and unrealized gains/losses on investments. Analytically and substantively test revenues and expenses reported in the financial statements. We will incorporate an element of unpredictability every year that will focus on an audit area that is not typically considered a high or significant risk area such as petty cash, credit card purchases, new vendors, travel expenses, etc. The aforementioned tests are only a few of the tests performed during the examination and by no means is it meant to be all inclusive. During the final stage of the audit we will meet with Finance staff to review our audit findings and any adiustinci iournal entries. As part of our Single Audit for the years in which the City expends granter than 750,000, we will perform the following procedures in accordance with the Uniform Guidance: Perform an evaluation of the major programs required to be tested Review OMB guidance and the OMB Compliance Supplement for the grant program audited. Review internal controls for each of the applicable 14 compliance areas for each program audited. 14 32 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Using AICPA sampling guidance, we will select a sample for each of the applicable 14 compliance areas for each program audited. We will test the sample for compliance with those 14 areas. Test the indirect cost rate, if applicable Review monitoring reports for noncompliance and follow up on the resolution of past noncompliance, if applicable. Issue a single audit report of federal expenditures. File the data collection form within the specified deadline. The nature and extent of the work required is dependent on our assessment of the likelihood of misstatements in the financial statements together with our conclusions from the planning and testing stages of the audit. All of the audit information is then used to reach a conclusion on whether the financial statements taken as a whole conform with generally accepted accounting principles. We will review significant events after year end We will review attorney letters for significant legal matters We will prepare the Comprehensive Annual Financial Report (CAFR) We will ensure accurate and complete disclosures in the notes to the financial statements. As requested, we will meet with the City Council to present the results of the audit. 15 33 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section F — Implementation of New GASB Pronouncements The City will be required to implement the following accounting standards during the upcoming fiscal years. Part of our service to you includes consulting on these new auditing standards. A sampling of significant new GASB pronouncements planned or proposed for local governments that will impact the City of Poway are listed below: This statement addresses accounting and financial reporting for certain asset retirement obligations. We will meet with you each year to determine if you have any obligations subject to this standard. The standard will be effective for the fiscal year ending June 30, 2019. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The statement describes four fiduciary funds that should be reported, if applicable: (1) pension trust funds, (2) investment trust funds, (3) private -purpose trust funds, and (4) custodial funds. We will work with the City to identify the activities required to be reported in these four fund types and provide transition guidance for the fiscal year ending June 30, 2020. Effective for the June 30, 2019 financial statements, the objective of this statement is to improve consistency in accounting and financial reporting for in -substance defeasance of debt. We will evaluate the applicability of the standard for the City. The objective of this statement is to better meet the information needs of the financial statement users by improving accounting and financial reporting for leases by governments. The standard will be effective for the fiscal year ending June 30, 2021. The primary objective of this Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. The standard will be effective for the fiscal year ending June 30, 2019. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements. The standard will be effective for the fiscal year ending June 30, 2021. The primary objectives of this Statement are to improve the consistency and comparability of reporting a government's majority equity interest in a legally separate organization. The standard will be effective for the fiscal year ending June 30, 2020. 160 34 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section G — Scope of Work Our understanding of the objectives and scope of the work to be performed is as follows: We will perform an audit examination of the financial statements of the City of Poway for the fiscal years ending June 30, 2019 through 2021. Our examination will be conducted in accordance with generally accepted auditing standards, the AICPA Audit and Accounting Guide, Audits of State and Local Government Units, and the Government Auditing Standards issued by the Comptroller General of the United States. We will prepare the Comprehensive Annual Financial Report (CAFR). We will ensure that the report is prepared in conformity with the most recent edition of the GAAFR, the GAAFR Update, and subsequent GASB pronouncements. Davis Farr LLP does not have experience with MUNIS CAFR Builder or any other CAFR software. We will perform a compliance audit of federal expenditures in accordance with the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards in any year the City has federal expenditures of more than $750,000. We will perform a compliance audit of the City's Housing Successor Agency in accordance with the requirements of the California Health and Safety Code. We will perform an audit examination of the Poway Public Financing Authority and prepare the basic financial statements. We will perform agreed -upon -procedures over the City's Gann Appropriations Limit. We will prepare a letter to the City Council reporting matters dealing with internal control that meet the threshold of being a significant deficiency or material weakness, as defined by SAS No. 115. We will immediately report any irregularities or illegal acts that come to our attention to management and/or those charged with governance. As requested, we will meet with the City Council to discuss the results of the audit. Finally, we perceive the scope of our work as being advisors to the City regarding generally accepted accounting principles. Throughout the year, the management and other finance personnel of the City will have access to us to seek advice in the application of generally accepted accounting principles, advice regarding debt issuance, financial statement preparation and content, and any other matters relating to the City. Identification ofAnticipate Potential Audit Problems — We do not anticipate any potential audit problems. 17 36 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Section H — Proposed Timing of the Audit for FY 18/19 The following proposed timing is subject to the City's revision and approval: Section I — Segmentation of the Audit The following is our estimate of the hours by professional classification required to perform the audit: 36 of 40 April 16, 2019, Item #1.8 City of Poway PROPOSAL FOR PROFESSIONAL AUDITING SERVICES APPENDIX 37 of 40 April 16, 2019, Item #1.8 F®RUM LLKW Certified Public Accountants:. Business Consultants System Review Report DAVIS FARR LLP Irvine, California; and the Peer Review Committee of the California Society of CPAs Jot w Duns, CPA Sm,i iiN C. Wiuiws, CPA Josue 0. Rof tmo, CPA We have reviewed the system of quality control for the accounting and auditing practice of Davis Farr LLP (the firm) in effect for the year ended May 31, 2016. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicPa.orCz/Prsummarv. As required by the standards, engagements selected for review included engagements performed under Government Auditing Standards and an examination of a service organization control (SOC) 1 Type 2. In our opinion, the system of quality control for the accounting and auditing practice of Davis Farr LLP in effect for the year ended May 31, 2016, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with defrciency(tes) or fail. Davis Farr LLP has received a peer review rating of pass. Ontario, California June 29, 2016 CPAMERICA INTERNATIONAL A Crowe Ho vnh lntemational April 16, 2019, Item #1.8 I ATTACHMENT B CITY OF POWAY 7zU7.y 1Y.P.]:z]y XY[UJ/II I ge[Y r1C 9 AUDIT FEES Our fixed fees to perform the audit services are as follows: The fee is reduced in subsequent years based on the City preparing the CAFR. Includes 40 hours of assistance. The single audit fee is for one major program. In the unlikely event that the City is required to have more than one major program tested as defined by the Uniform Guidance, additional programs can be audited at an additional fee of $2,500 per program. 39 of 40 AUDIT FEE iCRIPTION FY 18/ 19 FY 19/ 20 FY 20/21 FY 21/22 FY 22/23 lit and CAFR*MMMMM urtation e** e** MMMMMc lousing 11 y ®®®®® 1 1 1 blic iAu 11 g Authority 1 1 1 irnit Reports, if 11 edit***and ®®®®® 1 Audit Fees r r 1 AL SERVICES ----- e Controller's e Fee AUP lg Lease AUP 11 11 11 1 / 11 mrator AUP ', 11 11 11 11 11 1 -inclusive rn Price The fee is reduced in subsequent years based on the City preparing the CAFR. Includes 40 hours of assistance. The single audit fee is for one major program. In the unlikely event that the City is required to have more than one major program tested as defined by the Uniform Guidance, additional programs can be audited at an additional fee of $2,500 per program. 39 of 40 April 16, 2019, Item #1.8 I CITY OF POWAY PROPOSAL FOR PROFESSIONAL AUDITING SERVICES For additional work performed outside the engagement, our rates are as follows by personnel. Manner of Payment We will bill the City on the basis of pro -rated audit work completed during the course of the engagement as follows: 25 percent due at completion of interim audit, 25 percent due at completion of final audit, 25 percent due after submission to City of first draft of financial statements and 25 percent balance due after final issuance of financial statements. 40 of 40 20 April 16, 2019, Item #1.8 F) City of Poway COUNCIL AGENDA REPORT DATE: April 16, 2019 TO: Honorable Mayor and Members of the City Council FROM: Brenda Sylvia, Director of Community Services CONTACT: Roger Morrison, Senior Management Analyst rt+ 858) 668-4581 or rmorrison@poway.org APPROVED APPROVED AS AMENDED SEE MINUTES) DENIED REMOVED CONTINUED RESOLUTION NO. SUBJECT: Agreement to Provide Support to the Poway Valley Senior Citizens Corporation During Construction of the Mickey Cafagna Community Center Summary: On February 19, 2019, the Poway City Council authorized financial support and the use of earmarked City funds set aside for the Poway Valley Senior Center Citizens Corporation (PVSCC) to assist them in maintaining senior services at an alternate location during construction of the Mickey Cafagna Community Center. Staff drafted an Agreement between the City and PVSCC that details the payment terms of this support. Recommended Action: It is recommended that the City Council authorize the City Manager to execute the Agreement between the City of Poway and the Poway Valley Senior Citizens Corporation. Discussion: In preparation for the construction of the Mickey Cafagna Community Center, the existing Community Center and Senior Center buildings in Community Park will be demolished in July 2019. Senior Center programs and services will transition to a building that PVSCC has leased from the First Church of Christ, Scientist, at 16315 Pomerado Road. PVSCC requested financial support from the City to help cover moving costs, rental fees for 24 months, and costs associated with improvements to convert the leased facility into a conducive space for Senior Center operations. On February 19, 2019, the City Council approved PVSCC's request for financial support. An Agreement has been drafted by staff that details the terms of this support. The term of the Agreement is from May 1, 2019, through May 31, 2021. Financial support comes from two sources: $288,822 from funds that the City Council has previously earmarked for Senior Center support, and $100,000 from the General Fund. The payments would be made as follows: i) $25,000 upon receipt of the fully executed lease/facilities use agreement between PVSCC and the owner of the leased building. This amount will cover the $10,000 security deposit, rent for the months of May and June 2019, and removal of pews from the leased building. ii) $38,822 upon receipt of quotes or estimates to cover moving and startup costs. 1 of 7 April 16, 2019, Item #1.9 iii) $10,000 per month to cover the monthly rent on the building. iv) $12,500 upon receipt of estimates to cover utilities, janitorial services, maintenance, security, etc. for July through September 2019. v) Quarterly payments of $12,500 to cover utilities, janitorial services, maintenance, security, etc. for subsequent three-month periods. Payment of items (iii) and (v) is contingent upon submittal of receipts by PVSCC from the prior period demonstrating the actual expense amounts. The amount of support provided will not exceed the amount of expenses incurred by PVSCC. It is anticipated that a new Agreement between the City and PVSCC will be executed prior to the completion of the Mickey Cafagna Community Center to address services, support and use of the new facility. Environmental Review: This item is not subject to CEQA review. Fiscal Impact: Execution of this Agreement will authorize the expenditure of up to $288,822 ($273,822 from F80007712 -P7710 and $15,000 from F7710-89010). In addition, $50,000 per year from the General Fund will be budgeted in account 200020-41200 for FY 19-20 and FY 20-21. Public Notification: Notification was sent to Cynthia Elizondo, Board President of PVSCC, and Leslie Hoffman, Director of PVSCC. Attachment: A. Agreement Reviewed/Approved By: Wendy Kaserman Assistant City Manager 2of7 Reviewed By: Alan Fenstermacher City Attorney Approved By: Tina M. White City Manager April 16, 2019, Item #1.9 Agreement for Services to be Provided to Poway Senior Citizens THIS AGREEMENT, dated this 16th day of April, 2019 (the "Agreement"), is made by and between City of Poway, a municipal corporation (hereinafter referred to as "City"), and the Poway Valley Senior Citizens Corporation, a California nonprofit public benefit corporation hereinafter referred to as "PVSCC"). 1. PURPOSE: PVSCC has been providing services and activities for the benefit of the senior citizens of the City at the Weingart Center Buildings at Poway Community Park Existing Facility") since 1982, which the City allows PVSCC to occupy rent free. The purpose of this Agreement is to set forth the terms under which City shall distribute appropriated funds to PVSCC for purposes of renting facility space from the First Church of Christ, Scientist (hereinafter referred to as "Church") so that PVSCC may continue to offer public services and activities for the benefit of senior citizens during the demolition of the Existing Facility and construction of the Mickey Cafagna Community Center. 2. TERMS OF PAYMENT: City agrees to appropriate monies that have previously been set aside for PVSCC by the City Council (hereinafter referred to as "Earmarked Funds") and from the City's General Fund in return for PVSCC's services set out below: a) Earmarked Funds Appropriation: City agrees to appropriate a sum of Two Hundred Eighty -Eight Thousand Eight Hundred And Twenty -Two dollars 288,822. 00) payable to PVSCC as follows: i) A single payment of Twenty -Five Thousand Dollars ($25,000.00) upon receipt of a fully executed lease/facilities use agreement between PVSCC and Church to cover (1) Security Deposit ($10,000); (2) Rent for the months of May and June, 2019 ($5,000/month); and (3) pew removal ($5,000); ii) A single payment of Thirty -Eight Thousand Eight Hundred And Twenty -Two dollars ($38,822.00), or a comparable amount to be determined at the City's sole discretion upon receipt of quotes or estimates, for moving and startup costs, including truck rentals, storage containers and storage facilities, building improvements, and signage; iii) And the remainder in equal monthly rent checks of Ten Thousand Dollars ($10,000.00) will be issued by the City on or before the 20th of each month for the upcoming month, commencing on June 20, 2019 (for July 2019 rent) and continuing thereafter throughout the Term of this Agreement. iv) Any City funds provided to PVSCC that are used as a security deposit and are subsequently refunded or returned by Church shall be promptly returned to the City. b) General Fund Appropriation: City agrees to appropriate a sum of One Hundred Thousand dollars ($100,000.00) payable to PVSCC as follows: 3of7 April 16, 2019, Item #1.9ATTACHMENT A i) A single payment of Twelve Thousand Five Hundred dollars 12,500.00) for operational services, or a similar amount to be determined at the City's sole discretion upon receipt of estimates, including utilities, janitorial services, maintenance, security, etc., for the months of July through September 2019; ii) Continued payments for each subsequent quarter, starting with October through December 2019, will follow only after all actual receipts from the prior quarter are submitted to the City by PVSCC. These quarterly payments shall be in the same amount as the total receipts submitted from the previous quarter. iii) Should the operational expenses exceed the allotted $50,000 per fiscal year, PVSCC will be responsible to request additional Earmarked Funds from City. No additional General Fund amount will be provided. c) To the extent that any City funds provided to PVSCC exceed actual costs based on estimates provided, the balance of the funds shall be returned to the City before the issuance of any further payments pursuant to this Agreement. 3. SERVICES PROVIDED BY PVSCC: PVSCC will be responsible for entering a facilities use agreement with Church for lease of appropriate space for providing activities, programs, and services of benefit to senior citizens and the community and for the administration thereof. 4. TERMS OF AGREEMENT a) Term: This Agreement shall be in effect for the period between May 1, 2019, and ending May 31, 2021. The parties agree that this Agreement shall automatically terminate at the expiration of the term set forth herein, unless earlier terminated by either party in accordance with this Section 4 or extended by mutual agreement of both parties pursuant to a subsequent written agreement. b) Termination for Change in Funding: If the funds upon which the City has relied to establish this Agreement are withdrawn, reduced or limited, or if additional or modified conditions are placed on such funding, the City may terminate this Agreement by providing at least Thirty (30) days written notice to PVSCC. c) Termination for Convenience: Either party may terminate this Agreement for convenience upon giving the other party at least Sixty (60) days written notice. d) Termination for Default or Non -Performance: If either party defaults in its performance under this Agreement, the non -defaulting party may give the defaulting party written notice that it has Fifteen (15) days in which to cure the default. If the defaulting party fails to commence correction of such non-performance within the Fifteen (15) days and fails to diligently complete the correction thereafter, the non -defaulting party may terminate this Agreement. In the event of such termination, the non -defaulting party shall have all rights and remedies available to it under the law. 4 of 7 April 16, 2019, Item #1.9 5. INDEPENDENT RELATIONSHIP OF THE PARTIES a) The parties agree that they are independent entities organized under the laws of the State of California operating pursuant to the terms and conditions of this Agreement. b) No agent, employee, servant or representative of either party shall be deemed to be an agent, employee, servant or representative of the other party for any purpose, and employees of one party are not entitled to the benefits the other party provides to its employees. c) Each party is solely responsible for its acts and the acts of its agents, employees, servants and representatives during the term of this Agreement. d) Neither party will hold out itself or any of its officers, agents, employees, servants or representatives as, nor claim status as, an officer, agent, employee, servant or representative of the other and will not claim for itself or its officers, agents, employees, servants or representatives any rights, privileges or benefits which would accrue to an officer, agent, employee, servant or representative of the other. e) PVSCC shall indemnify and hold harmless the City from all obligations to pay or withhold federal or state taxes or contributions on behalf of PVSCC or employees of PVSCC. 6. COMPLIANCE WITH LEGAL REQUIREMENTS: Each party accepts responsibility for compliance with federal, state and local laws and regulations. 7. INSURANCE: a) During the term of this Agreement, PVSCC shall obtain and maintain in full force and effect the following insurance coverage: b) The Center is responsible for maintaining the following: i) Liability Insurance: PVSCC shall carry property damage and public liability insurance by an insurer acceptable to the City that covers the areas and activities set forth in this Agreement under their insurance program, which shall have limits of up to $1,000,000, each occurrence with an annual limitation of 2,000, 000. PVSCC shall add the City, its respective elected officials, officers, employees, agents and representatives as an additional insured to its policies and provide the City an endorsement to that effect. ii) Workers' Compensation Insurance: In connection with the performance of this Agreement by PVSCC, PVSCC shall provide full workers' compensation insurance for its employees as required by the Workers' Compensation Act. The City shall have workers' compensation' insurance for its employees or contract employees of the City. 5of7 April 16, 2019, Item #1.9 iii) Certification of Insurance: PVSCC shall deliver to the City certificates of insurance which shall provide that no cancellation, major change in coverage, or non -renewal will be made during the term of this Agreement, without thirty (30) days written notice to the City prior to the effective date of such cancellation, change in coverage, or non -renewal. 8. INDEMNIFICATION AND HOLD HARMLESS: To the extent of its comparative liability, each party shall indemnify, defend and hold the other party, its departments, elected and appointed officials, agents, employees, servants and representatives, harmless from and against any and all claims, damages, losses and expenses, including reasonable attorney fees, for any bodily injury, sickness, disease or death or any damages to or destruction of property including any loss of use resulting therefrom, which are alleged or proven to be caused in whole or in part by a negligent act or omission or wrongful act or failure to act, on the part of its officers, directors, agents, employees, servants and representatives. No liability shall attach either party by reason of entering into this Agreement except as expressly provided herein. 9. ASSIGNMENT: PVSCC shall not assign its performance under this Agreement or any portion of this Agreement. 10. WAIVER: This Agreement may be amended, superseded, cancelled, renewed or extended and the terms hereof may be waived, only by a written consent signed by the parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or privilege, nor any single or partial exercise of any other such right, power or privilege. The rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies that any party may otherwise have at law or in equity, except where this Agreement expressly provides otherwise. Only the City Council is authorized to agree to modifications on behalf of the City. 11. DISPUTE RESOLUTION: This Agreement shall be governed by the laws of the State of California. In the event of a dispute regarding termination of this contract, City and PVSCC agree that the venue for any litigation shall lie in San Diego County. 12. ENTIRE AGREEMENT: The parties agree that this contract is the complete expression of the Agreement between the parties and all other terms not found herein are excluded. Failure to comply with any of the provisions stated herein shall constitute material breach of the contract and be cause for termination. Both parties agree that forgiveness of the nonperformance of any provision of this Agreement does not constitute a waiver of said provision of this Agreement. 6of7 April 16, 2019, Item #1.9 13. SEVERABILITY: If for any reason, any part, term or provision of this Agreement is held by a court of the United States to be illegal, void or otherwise unenforceable, the validity of the remaining provisions shall not be affected and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular provision or part held to be invalid. DATED this 16th day of April, 2019. City of Poway Poway Valley Senior Citizens Corp. Tina White, City Manager Cynthia Elizondo, PVSCC Board President ATTEST: Faviola Medina City Clerk Approved as to form: Alan Fenstermacher, City Attorney 7of7 April 16, 2019, Item #1.9 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT April 16, 2019 Honorable Mayor and Members of the City Counc� . " Robert Manis, Director of Development Services f,f/\ Tom Frank, City Engineer rf! (858)668-4603 or tfrank@poway.org APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED ____ _ RESOLUTION NO. A Resolution Approving a 2% Increase in the Regional Transportation Congestion Improvement Program (RTCIP) Traffic Mitigation Fee for Fiscal Year (FY) 2019-20, as required by the TransNet Ordinance On April 1, 2008, the City Council adopted the Regional Transportation Congestion Improvement Program (RTCIP) Traffic Mitigation Fee pursuant to the TransNet Ordinance. The Ordinance calls for the fee to be adjusted annually on July 1 of each year to reflect increases in construction costs. SANDAG has informed all the Cities and the County of San Diego that the increase in the RTCIP fee for FY 2019-20 is set at 2%. This will increase the City's RTCIP Traffic Mitigation Fee from $2,483.48 to $2,533.15 per residential unit starting on July 1, 2019. Recommended Action: It is recommended that the City Council adopt the Resolution (Attachment A) approving a 2% increase in the RTCIP Traffic Mitigation Fee for residential dwelling units from $2,483.48 to $2,533.15 for FY 2019-20, as required by the TransNet Ordinance, starting July 1, 2019. Discussion: In November 2004, voters in San Diego County approved a 40-year extension to the existing TransNet program, which was first initiated in 1987. The TransNet program was designed to fund improvements to the region's transportation system through a half-cent sales tax. In addition to the sales tax extension, the TransNet Ordinance mandates implementation of a local traffic mitigation fee to fund missing improvements on the Regional Arterial System. The local traffic mitigation fee, also known as the RTCIP Traffic Mitigation Fee, was set at $2,000 per residential dwelling unit starting on July 1, 2008. Funds collected from this fee will be used for roadway and traffic signal improvements on Espola Road, Poway Road, Pomerado Road, Twin Peaks Road, Community Road, Ted Williams Parkway, Camino Del Norte, and Scripps Poway Parkway. On April 1, 2008, the City Council adopted the RTCIP Traffic Mitigation Fee pursuant to the TransNet Ordinance. The TransNet Ordinance mandates that the adopted RTCIP Traffic Mitigation Fee for residential dwelling units be adjusted annually for construction cost inflation, based on the construction cost index, but requires a minimum 2% annual increase. The fee was increased by 2% in 2009 through 2014, 2.5% in 2015, and 2% in 2016 and 2017, and 3.3% in 2018 and is currently at $2,483.48 per residential dwelling unit. SANDAG has informed all the Cities and the County of San Diego (Attachment B) that the percentage increase for FY 2019-20 is set at 2%. This will increase the City's RTCIP Traffic Mitigation Fee from $2,483.48 to $2,533.15 per residential unit starting July 1, 2019, for FY 2019-20. 1 of 7 April 16, 2019, Item #3.1 2% Increase in the RTCIP Traffic Mitigation Fee for FY 2019-20 April 16, 2019 Page 2 Environmental Review: This item is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to Section 15061 (b)(3) of the CEQA Guidelines, as it entails a State mandated update to a current City fee, and there is no possibility that this will have a significant effect on the environment. Fiscal Impact: Using the new fee of $2,533.15 per residential dwelling unit, estimated revenue of $141,856 is projected for FY 2019-20. Public Notification: Notice of the public hearing was published twice in the Poway News Chieftain. Attachments: A.Resolution B.SANDAG Agenda Item No. 6 dated February 22, 2019 Reviewed/Approved By: Wendy Kaserman Assistant City Manager 2 of 7 Reviewed By: Alan Fenstermacher City Attorney Tina M. White City Manager April 16, 2019, Item #3.1 RESOLUTION NO. 19- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING A 2% IN CREASE IN THE REGIONAL TRANSPORTATION CONGESTION IMPROVEMENT PROGRAM (RTCIP) TRAFFIC MITIGATION FEE FOR FISCAL YEAR (FY) 2019-20, AS REQUIRED BY THE TRANSNET ORDINANCE WHEREAS, in November 2004, voters in San Diego County approved a 40-year extension to the existing TransNet program to fund improvements to the region's transportation system; WHEREAS, the extension Ordinance requires local agen cies to collect traffic mitigation fees, starting July 1, 2008, from residential dwelling units to fund the Regional Transportation Congestion Impr ovement Program (RTCIP) to ensure that new development directly invests in the region's transportation system to offset the negative impact of growth on congestion and mobility; WHEREAS, on April 1, 2008, the City Council adopted the RTCIP Traffic Mitigation Fee of $2,000 per residential dwelling unit pursuant to Section 9A of the TransNet Ordinance; WHEREAS, Section 9A of the TransNet Ordinance also mandates that the RTCIP Traffic Mitigation Fee shall be increased annually, in an amount not to exceed the percentage increase set forth in the Engineering Construction Cost Index published by the Engineering News Record or similar cost of construction index with a minimum increase of 2%; WHEREAS, the City Council has adopted annual increases to the RTCIP Traffic Mitigation Fee and the current fee is $2,483.48 per residential dwelling unit, pursuant to Section 9A of the TransNet Ordinance; WHEREAS, SANDAG has informed the City that the percentage increase in the RTCIP Traffic Mitigation Fee for FY 2019-20 is set at 2%; and WHEREAS, the City Council inten ds by this Resolution to increase the City's RTCIP Traffic Mitigation Fee from $2,483.48 to $2,533.15 per residential dwelling unit to meet the requirement of Section 9A of the TransNet Ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: Section 1: The City Council finds that the adoption of this Resolution is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to Section 15061 (b)(3) of the CEQA Guidelines, as it entails State-mandated updates to current City regulations, and there is no possibility that this will have a significant effect on the environment. Section 2: The City Council, starting July 1, 2019, hereby increases the RTCIP Traffic Mitigation Fee from $2,483.48 to $2,533.15 per residential dwelling unit, regardless of type, to fund roadway and traffic signal improvements on Espola Road , Poway Road, Pomerado Road, Twin Peaks Road, Community Road, Ted Williams Parkway, Camino Del Norte, and Scripps Poway Parkway considered part of the Regional Arterial System. 3 of 7 ATTACHMENT A April 16, 2019, Item #3.1 Resolution No. 19- Page 2 PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway, California, at a regular meeting, this 16th day of April 2019. ATTEST: Faviola Medina, CMC, City Clerk STATE OF CALIFORNIA ) ) ss COUNTY OF SAN DIEGO ) Steve Vaus, Mayor I, Faviola Medina, City Clerk, of the City of Poway, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 19-was duly adopted by the City Council at a meeting of said City Council held on the 16th day of April 2019, and that it was so adopted by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: 4 of 7 Faviola Medina, City Clerk City of Poway April 16, 2019, Item #3.1 ltem:6 Board of Directors February 22, 2019 TransNet Regional Tran sportation Congestion Im provement Program Proposed Fee Adjustment Overview The TransNet Extension Ordinance requires the 18 cities in the San Diego region and the County of San Diego to collect a Regional Transportation Congestion Improvement Program (RTCIP) fee from the private sector for each new housing unit constructed in their jurisdiction. The purpose of this fee (sandag.org/rtcip) is to help ensure that future development contributes its proportional share of the funding needed to pay for the impact of new growth on the Regional Arterial System and related regional transportation facility improvements, as defined in the most recent Regional Transportation Plan adopted by SAND AG. Key Considerations SANDAG is required to adjust the minimum RTCIP fee amount on July 1 of each year based on an analysis of construction cost indices, but ne ver less than 2 percent. The purpose of this annual adjustment is to ensure that the RTCIP retains its purchasing power to improve the regional arterial system. Based on an analysis of construction cost trends and releva nt indices, staff recommends a 2 percent fee adjustment to the RTCIP, raising the minimum RTCIP fee from $2,483.48 to $2,533.15 beginning July 1, 2019 (Attachment 1 ). Action: Approve The Board of Directors is asked to approve a 2 percent adjustment to the Regional Transportation Congestion Improvement Program, raising the minimum fee from $2,483.48 to $2,533.15, beginning July 1, 2019. Fiscal Impact: Pending approval by the Board of Directors, the minimum Regional Transportation Congestion Improvement Program fee would increase from $2,483.48 to $2,533.15 beginning July 1, 2019. Schedule/Scope Impact: The Regional Transportation Congestion Improvement Program fee is collected for each new housing unit constructed and may be used for projects on the Regional Arterial System, such as new or widened arterials, traffic signal coordination, freeway interchange and related improvements, railroad grade separations, and improvements required for express bus and rail transit. The Independent Taxpayer Oversight Committee (ITOC) reviewed the proposed RTCIP fee adjustment at its February 13, 2019, meeting and had no comments. Next Steps In accordance with TransNet Extension Ordinance provisions, each jurisdiction's RTCIP Funding Program 1 must be submitted for review by the ITOC by April 1 of each year to remain eligible for TransNet local street and road funding. The annual submittal of RTCIP funding programs by local jurisdictions is scheduled for review at the April 10, 2019, ITOC meeting. Hasan lkhrata, Executive Director Key Staff Contacts: Jim Miller, (619) 699-7325, jim.miller@sandag.org Ariana zur Nieden, (619) 699-6961, ariana.zurniedenr@sandag.org Attachment: 1 . Discussion Memo 1 Section 9 of the TransNet Extension Ordinance requires that local jurisdictions establish a program or mechanism for funding the Regional Arterial System. For purposes of the RTCIP, the Regional Arterial System is defined in the most recent Regional Transportation Plan adopted by SANDAG. 5 of 7 ATTACHMENT B April 16, 2019, Item #3.1 Attachment 1 Discussion Memo Background The TransNet Extension Ordinance requires the 18 cities and the County of San Diego to collect a fee from the private sector for each new housing unit 1 constructed in that jurisdiction for contribution to the Regional Transportation Congestion Improvement Program (RTCIP). RTCIP revenue is required to be used to construct impr ovements on the Regional Arterial System, such as new or widened arterials, traffic signal coordination and other traffic improvements, freeway interchange and related freeway improvements, railroad grade separations, and improvements required for express bus and rail transit. The Ordinance further requires SANDAG to adjust the RTCIP fee amount each year, and states that in no event shall the adjustment be less than 2 percent per year or more than the perc entage increase set forth in the Engineering Construction Cost Index (CCI) published by the Engineering News Record (ENR), or a similar CCI.The purpose of this annual adjustment is to ensure that the RTCIP ret ains its purchasing power to improve the Regional Arterial System and to help ensure future development contributes its proportional share of the funding needed to pay for the impact of new growth on the Regional Arterial System and related regional transportation facility improvements, as defined in the most recent Regional Transportation Plan adopted by SANDAG. The RTCIP funding programs fall under the responsibility of the 19 local jurisdictions, which must maintain their RTCIP funding programs and comply with specific administrative requirements in order to remain eligible for TransNet local street and road funding. The RTCIP has been implemented in the San Diego region since July 1, 2008. Annual RTCIP fee adjustments, funding program reports, and related audits can be found at sandag.org/rtcip. Relevant excerpts can be referenced at TransNet Extension Ordinance and SANDAG Board Policy No. 031 . Analysis of Construction Cost Indices SANDAG staff evaluated changes recorded in the ENR Los Angeles CCI, which is based on monthly price changes in four areas: lumber, cement, structural steel, and labor. Los Angeles reflects construction cost trends similar to those in San Diego. During the period that covers December 2017 to December 2018 (latest available data), the ENR Los Angeles CCI increased by 0.64 percent. The other CC ls grew faster, with the ENR National CCI growing 3.3 percent and the Caltrans CCI increasing 1.1 percent. While there is general consensus that construction costs will continue to increase in 2019, there always is uncer tainty in forecasting costs in the construction industry due to factors such as changes in domestic and intern ational growth and uncertainties in global politics. In addition, all indices show some volatility, and for that reason, it is important to analyze the longer-term picture from 2008, when the RTCIP was first instituted when considering the required annual adjustment. The cumulative growth of the RTCIP has been 24.2 percent, with the ENR Los Angeles CCI seeing a 22.3 percent growth over the same period. The ENR National CCI (33.1 %) and Caltrans CCI (54.3%) both exceeded this rate over the same period. This comparison over time shows that by maintaining the annual adjustment at the minimum 2 percent increase required, the RTCIP had last year begun to fall behind the overall goal of keeping pace with inflation. While the ENR Los Angeles CCI is the slowest growing of the CCls considered, the chart below shows it also has increased at basically the same rate as the RTCIP. 1 Units constructed for extremely low-, very low-, low-, and moderate-income households may be exempted. 2 6 of 7 April 16, 2019, Item #3.1 Construction Cost Index (2008 = 100) 125 120 115 110 105 100 95 2008 2009 Comparing Construction Costs (2008=100) Trans Net RTCI P vs. EN R LA CCI 2010 2011 2012 2013 2014 2015 2016 -TransNet RTCIP -ENR LA CCI 2017 2018 To ensure that the RTCIP fee maintains its purchasing power to complete necessary road improvements, staff recommends the minimum required 2 percent increase that would mirror the small increase in the ENR CCI for Los Angeles. Increasing the fee by a lesser percentage would not keep pace with construction inflat ion, meaning the RTCIP would have less ability to mitigate transportation impacts of new development, which would be inconsistent with the Ordinance. 3 7 of 7 April 16, 2019, Item #3.1 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT April 16, 2019 Honorable Mayor and Members of the City Coun ,1ARobert Manis, Director of Development Services r \t David DeVries, City Planner \_)-q,\) (858)668-4604 / ddevries@poway.org APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED ____ _ RESOLUTION NO. Resolution Confirming that the Conditions on the Property at 13822 Northcrest Lane Constitute Violations of the Poway Municipal Code and Upholding the issuance of Administrative Citations by Code Compliance staff (Case No. 17-0071 & 17-0074), and Declaring that the Property Constitutes a "Public Nuisance" and Ordering the Property Owner to Abate the Violation, as well as authorizing legal action by the City Attorney. The hearing on this item is being held pursuant to Chapter 8. 72 and 1.10 of the Poway Municipal Code (PMC) for the purpose of determining whether the unapproved grading and unpermitted detached garage and home improvements on the property at 13822 Northcrest Lane (APN 278-442-43) constitute violations of the PMC and whether the Administrative Citations No. 645 and 646 should be upheld. The owner of the property is Christopher D. Dougherty (JTA Real Estate Holdings, LLC). Should the City Council find that violations on the subject property exist and that the appealed citations were lawfully issued, staff recommends that the City Council uphold the citations and declare that the property constitutes a public nuisance and order the property owner to abate the violation. Should the owner fail to timely remedy the public nuisance conditions, the City Attorney may move forward with appropriate legal action to bring the subject property into compliance. Other administrative code compliance remedies allowed in the PMC may occur in order to ensure compliance. Recommended Action: It is recommended that the City Council adopt the proposed Resolution (Attachment A) finding that the conditions on the property constitute violations of the PMC, upholding Administrative Citations (No. 645 & 646), declaring that the conditions on the prope rty constitute a public nuisance, ordering that the property owner abate the nuisance, and authorizing the City Attorney to initiate appropriate legal action if the owner fails to timely remedy the public nuisance conditions. Discussion On February 16, 2017, Code Compliance staff addressed a concern on an adjacent property related to fence height when staff observed dirt hauling trucks and heavy equipment operating at 13822 Northcrest Lane. A location map of the prope rty is included as Attachment 8. Upon further 1 of 62 April 16, 2019, Item #4.1 Code Compliance — 13822 Northcrest Lane April 16, 2019 Page 2 investigation, Code Compliance staff observed an extensive grading project in the rear and side yard, with movement, stockpiling and importation of dirt. Staff estimates there was approximately 1,000 cubic yards of earthwork conducted on-site without permits, including grading within an approximate 3,500 square feet area on the west side of the house, within an approximate 3,200 square feet area north of the house where the pool was demolished and within an approximate 1,000 square feet area off-site on the property to the adjacent north. Staff confirmed with Engineering Inspection staff that no permitted active grading projects were occurring on the subject property. Staff issued a Code Compliance Stop Work Notice for the unapproved grading activity (Attachment C) and a grading violation enforcement case was opened (Case No. 17- 0071). On February 17, 2017, Code Compliance and Engineering Inspection staff returned to the subject property to deliver a copy of an Engineering Stop Work Notice (Attachment D). While on-site, staff noted evidence of new construction and possible alterations to buildings on the property. Staff opened a separate enforcement case for investigation relating to the improvements to buildings on the property without permits (Case No 17-0074). Staff reviewed County and City building records. It was concluded that there were unpermitted improvements to the home, including remodel construction, additions and conversions of patio space to living areas. The Deputy Building Official noted fire, life and safety concerns associated with exiting from bedrooms into the unpermitted patio enclosure (direct access to outside required). Staff also noted evidence of a detached garage built without permits, which was later expanded without permits. Site conditions also indicated that the home's septic system was exposed through grading and improvements may have been done, and as a result, the County Department of Environmental Health requires a septic review and potentially a septic permit. Staff noted that a pool was built in 1976 under a County of San Diego permit. Aerial images also showed a pool in the rear yard, behind the home (Attachment E). Subsequent excavation activity associated with the unlawful grading appears to have eliminated the pool structure from the rear yard, and the extent of grading had impacted areas beyond the original footprint of the existing pool including areas onto a neighboring property. Staff did not find a corresponding pool demolition permit on file. Per building code, a demolition permit is required prior to demolition of a pool. On February 21, 2017, the property owner attempted to apply for permits to construct a new pool and pool house in the rear yard of the property. Staff denied the application and instructed the owner to make progress toward acquiring a grading permit to legalize the unpermitted grading prior to submitting for this new project. The PMC states that new permits for construction shall not be issued when a grading violation exists on the property (PMC Sections 15.02.080 and 16.56.050). On March 1, 2017, the property owner attempted to apply for a Building Permit for a retaining wall. Staff denied the application and instructed the owner to make progress toward acquiring a grading permit prior to submitting for this new project. The property owner provided a grading geotechnical engineering report to staff. The report dictated that the scope of the grading on the property was limited to a pool demolition. Staff reviewed the report and disagreed with its findings, as the actual site conditions conformed to that of a larger, and more extensive project than demolition of the existing pool (visible in aerial images). In an email communication with the property owner (Attachment F), staff stated the grading conditions did not conform with a pool demolition project, and Mr. Dougherty was instructed to submit plans for the unpermitted grading 2 of 62 April 16, 2019, Item #4.1 Code Compliance — 13822 Northcrest Lane April 16, 2019 Page 3 activity A grading permit application, G 17-0006, was received on April 19, 2017. Engineering staff conducted two reviews on April 19, 2017, and September 14, 2017. Reviews were promptly completed, and written correction responses were made available to the permit applicant Attachment G). To date, the corrections have not been addressed. Additional options were explored with Mr. Dougherty including restoring the grades back to original conditions. Code Compliance staff issued two Stop Work notices, two Notices of Violation and a Notice and Order to Abate Nuisance for the grading violation (Attachment H). For the building code violations, staff issued a Courtesy Notice letter, two Notices of Violation and a Notice and Order to Abate Nuisance (Attachment 1). After issuance of the Notice and Order to Abate Nuisance for grading, the property owner sent a written response to the Director of Development Services that detailed an explanation for the lack of progress toward grading permits (Attachment J). Among other claims, the owner stated that his finances were exhausted, and that he does not intend to proceed with progress toward permits. As this enforcement action progressed, staff noted several instances where the property's Stop Work condition was violated by new construction activity. On March 27, 2017, City staff noted construction of a retaining wall, and on October 19, 2017 a newly built carport. Upon being issued another Code Compliance Stop Work Notice for the retaining wall, the property owner contacted Engineering staff and subsequently received approval to proceed with completion of the retaining wall with limitations. City staff included a directive in the Notice and Order to Abate Nuisance (for building code violations) to remove the carport structure or acquire permits. Staff verified removal of the carport during a site inspection, but also noted that a new dirt pad was created in the location of the removed carport, which constituted a violation of the Stop Work condition for grading. On January 24, 2019, Code Compliance staff followed a dirt hauling truck and observed it delivering additional loads of imported fill dirt onto the property, which constituted another violation of the City imposed Stop Work condition for grading. Stop Work notices prohibit any work on the property that would require a permit until code violations are resolved, with some exceptions upon seeking prior approval from staff. On October 3, 2018, staff was made aware that the property owner was considering sale of his property. Due to the unresolved code violations on the property, staff recorded a Notice of Violation against the property title (Attachment K). A copy of the recorded notice was sent to the property owner by US Mail. In response to the recorded Notice of Violation, the property owner requested a meeting with staff. On October 24, 2018, Planning, Code Compliance, Engineering and Building Services staff met with the property owner on his property. The owner allowed a visual inspection of the conditions on his property and within his home, so that staff may fully ascertain the scope of necessary permits to clear the code violations on his property. A summary of code violation observations by Building Services staff was made available for this report (Attachment L). Determinations were facilitated by review of photos located on the internet from the most recent sales listing for the property, which detailed the original condition of the home and property, prior to the most recent remodeling and improvements. Additionally, visual observations by Engineering Staff discovered that the grading and excavation had likely crossed the northern property line and onto an adjacent property. The property owner was directed to consult a licensed engineer and designer and provide a revised timeline to submit plans and bring the property into compliance. To date, City 3 of 62 April 16, 2019, Item #4.1 Code Compliance — 13822 Northcrest Lane April 16, 2019 Page 4 staff has not received a timeline, despite conversations with Mr. Dougherty's contract engineer who showed an eager willingness to correct the violations with the appropriate plans and specifications. On December 7, 2018, Code Compliance staff issued two Administrative Citations: Citation No. 645,in the amount of $100 for the building code violations on the property, and Citation No. 646, also with a $100 fine amount, for the unlawful grading activity on the property (Attachment M). On December 20, 2018, the property owner submitted a written appeal request for the citations accompanied with a Hardship Waiver request form (Attachment N). Poway Municipal Code Chapter 1.10 requires that any request for appeal shall be accompanied with a full payment of the citation fine amount to Customer Services or the appellant may submit a Hardship Waiver to request an exception for the requirement to pay the citation fines prior to scheduling an appeal hearing. A written statement included with the appeal request informed staff that the owner would not continue resolving the code violations on his property due to financial constraints, and that Mr. Dougherty intends to initiate Chapter 11 bankruptcy proceedings (Attachment O). The property owner provided correspondence from his attorney as additional evidence of bankruptcy proceedings (Attachment P). The City Attorney has opined that the bankruptcy proceedings do not affect a City's ability to continue or initiate code compliance remedies and jurisdictions are allowed to exercise "police powers" to correct code violations in these situations. On January 29, 2019, the City Manager reviewed and denied the property owner's Hardship Waiver request, as Mr. Dougherty did not meet the minimum eligibility criteria (insufficient funds and/or no property ownership). A notice of denial letter was mailed to the property owner on January 30, 2019 (Attachment Q). The property owner submitted payment of the citations within the necessary deadline to allow for an appeal hearing. As some of the violations pertain to violations of California Building Code, the requested administrative appeal hearing must be heard by an "Appeals Board," and not a sole hearing officer or staff person. Poway Municipal Code Chapter 2.20 deems the City Council as the City's "Appeals Board." Accordingly, this hearing matter has been scheduled for City Council consideration and action. In addition to the appeal itself, staff further recommends that the City Council declare the property to be a public nuisance, which would enable the City to obtain inspection and abatement warranty without further City Council action. Other administrative code compliance remedies allowed in the PMC may occur in order to ensure compliance including administrative citations and fines, criminal citations and abatement of dangerous building proceedings. Case photographs are provided as Attachment R and a Case Chronology is provided as Attachment S. If the City Council should find that violations exist on the subject property, staff recommends that the City Council uphold staff's issuance of the Administrative Citations, declare that the property constitutes a public nuisance and order the property owner to abate the violations and bring the property into compliance. If the owner fails to timely remedy the public nuisance conditions, the City Council authorizes staff to secure an abatement warrant and abate the violations by civil action, receivership, criminal complaint, and/or use of abatement contractor, as well as additional Administrative Citations. All costs of the abatement and the City's enforcement actions will be recorded, itemized and, if the owner refuses or fails to timely reimburse the City for such expenses, staff will return to the City Council to confirm the costs and then lien the property or record a special assessment to recoup all of the City's costs and fees. 4 of 62 April 16, 2019, Item #4.1 Code Compliance — April 16, 2019 Page 5 13822 Northcrest Lane Environmental Review: This item is not a "Project' pursuant to the California Environmental Quality Act (CEQA) and is therefore not subject to CEQA review. Fiscal Impact: If abatement or legal action is conducted by the City, the costs/fees of the abatement, plus an administrative fee, will be assessed to the property owner via a lien and/or a special assessment. Public Notification: A public notice was published in the Poway News Chieftain on April 4, 2019 and a copy of this report was sent to the property owners. A copy of the notice was posted at the property. Attachments A. Resolution Upholding the Director's decision to issue a Notice and Order to Abate Nuisance (Pg. 6) B. Location Map (Pg. 10) C. Code Compliance Stop Work Notice — Grading (Pg. 11) D. Engineering Stop Work — Grading (Pg. 12) E. Aerial images of the property (Pg. 13) F. Engineering staff response to owner regarding geotechnical report (Pg. 15) G. Plan review correction notices to application, grading permit review G17-0006 (Pg. 16) H. Copy of Notices of Violation and Notice and Order—grading (Pg. 20) I. Copy of Courtesy Letter, Notices of Violation, and Notice and Order to Abate Nuisance building code violations (Pg. 24) J. Letter from owner to staff (Pg. 32) K. Notice of Violation recorded with the County Recorder (Pg. 33) L. Email from Building Services detailing building code violation observations (Pg. 38) M. Administrative Citations No. 645 and 646 (Pg. 39) N. Request for appeal and Hardship Waiver Affidavit (Pg. 41) O. Letter from property owner to staff with request for appeal (Pg. 44) P. Property owner attorney correspondence regarding bankruptcy (Pg. 45) Q. Notice of denial letter of Hardship Waiver (Pg. 53) R. Case photos (Pg. 56) S. Chronology of case (Pg. 60) Reviewed/Approved By: Wendy Kaserman Assistant City Manager 5 of 62 Reviewed By: Approved B : ` 5a Alan Fenstermacher Tina M. White City Attorney City Manager April 16, 2019, Item #4.1 RESOLUTION NO. P -19- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, FINDING AND DECLARING CONDITIONS PRESENT AT 13822 NORTHCREST LANE POWAY, CALIFORNIA CONSTITUTE VIOLATIONS OF THE POWAY MUNICIPAL CODE AND UPHOLDING DEVELOPMENT SERVICES DEPARTMENT'S DECISION TO ISSUE CITATIONS AND ORDERING THE PROPERTY OWNER TO ABATE NUISANCE WHEREAS, inspections of the premises at 13822 Northcrest Lane, Poway, California, with Assessor Parcel Number 278-442-43 ("Property') have been repeatedly conducted by City of Poway ("City') personnel; WHEREAS, said inspections reveal violations of the Poway Municipal Code exist on the Property; WHEREAS, City personnel have observed violations of Section 8.60.141, 15.02.010, and 15.02.040 of the Poway Municipal Code by failing to acquire the necessary permits and approvals for detached garage, home remodel, additions/conversions to home, and necessary septic reviews; WHEREAS, City personnel have observed violations of Sections 16.56.010 and 16.56.020 of the Poway Municipal Code by conducting grading activity and failing to obtain the necessary permits and approvals; WHEREAS, City personnel have observed a violation of Chapter 8.72 of the Poway Municipal Code by documenting multiple conditions that constitute a public nuisance, and may be declared by the City Council; WHEREAS, the City has made multiple attempts to obtain voluntary compliance from the Property owners, including issuing violation notices on March 29, 2017, April 18, 2017, August 17, 2017, May 2, 2018 and May 12, 2019, Notice and Orders to Abate Nuisance on November 8, 2018 and August 14, 2018, and Administrative Citations on December 7, 2018, demanding compliance; WHEREAS, the City has responded to the property owners request for an Appeal Hearing in response to the Administrative Citations; WHEREAS, Section 8.72.020 of the Poway Municipal Code defines a nuisance as follows: A "nuisance" includes but is not limited to the violation of any ordinance, resolution, regulation or policy adopted by the City Council, as defined within any such ordinance, resolution or policy, or any condition within the City found to be potential threat to the general health, safety and welfare of the public. WHEREAS, California Civil Code Section 3480 provides that "[a] public nuisance is one which affects at the same time an entire community or neighborhood, or any considerable 6 of 62 ATTACHMENT A April 16, 2019, Item #4.1 Resolution No. P -19 - Page 2 number of persons, although the extent of the annoyance or damage inflicted upon individuals may be unequal;" WHEREAS, California Health & Safety Code Section 17980.10 provides that upon the City Council adopting a Resolution determining that a property constitutes a public nuisance, the City acquires jurisdiction to abate any such violation; and WHEREAS, a public hearing was held before the City Council on April 16, 2019, where evidence has been presented before the City Council, and all interested parties were provided notice and an opportunity to be heard on the issue of whether the conditions present at the Property constitute ongoing violations of the Poway Municipal Code, and whether the conditions on the Property constitute a public nuisance. NOW, THEREFORE, based on the written documents and oral testimony presented at the hearing, the City Council of the City of Poway resolves as follows: Section 1: The City Council finds that this action is not subject to review under the California Environmental Quality Act (CEQA). The determination of a public nuisance is not a project in accordance with CEQA guidelines. Section 2: The foregoing recitals are true and correct, and the City Council so finds and determines. Section 3: The City Council denies the appeal and finds and declares that the Director of Development Services decision to issue Administrative Citations to the property owners was appropriate, justified and staff may continue enforcement action. Section 4: The City Council further finds and declares that the conditions on the Property described in the recitals each present a danger to the health, property, safety, and welfare of the public and therefore constitute a public nuisance as defined in California Civil Code section 3480 and the Poway Municipal Code: (1) failing to acquire the necessary permits and approvals for a detached garage, new additions of and conversions of patios to habitable areas, as well as home remodel construction; (2) failing to complete all necessary septic reviews triggered by new construction activity; and (3) failing to acquire all necessary permits for unapproved grading and excavation activity. Section 5: The City Council orders the owner of the Property to abate the nuisances within thirty (30) days by bringing the Property into compliance with the provisions of the Poway Municipal Code cited in the recitals. Following completion of the aforementioned corrective work and within the same thirty (30) day period, the owner of the Property shall have the City inspect the Property to verify compliance. Section 6: A copy of this resolution of the City Council affirming the issuance of the Notice and Order to Abate Nuisance and subsequent Administrative Citations and ordering abatement shall be served upon the owners of the Property. The service shall be made both by registered or certified mail, addressed to the owner at the last known address of the owner and by posting a copy on the Property. Any owner shall have the right to have the nuisances abated in accordance with this resolution at his or her own expense, provided the same is completed prior to the thirty -day abatement. 7 of 62 April 16, 2019, Item #4.1 Resolution No. P -19 - Page 3 Section 7: If the nuisances are not completely abated by the owner as directed within the thirty (30) day period, the City shall cause the same to be abated by any administrative action allowed by law including administrative citations, criminal complaint, civil action, seek a receivership remedy under court order, and/or by the City personnel or private contract, and the personnel or persons under contract are expressly authorized to enter upon the premises for such purposes. The owner of the premises shall be liable to the City for all costs of the abatement and/or legal action, including administrative costs. Section 8: In accordance with the provisions of Poway Municipal Code Chapter 8.72, the City Council directs City staff to maintain an itemized account of all costs incurred by the City in abating the nuisances, including all administrative and legal costs and expenses. City staff shall submit to the City Council for confirmation an itemized written report showing the costs. The City Council may modify the report if it is deemed necessary and shall then confirm the report by motion or resolution. Pursuant to Government Code sections 38773 and 38733.5, the total cost, fees, and expenses of abatement, including all administrative costs and attorney's fees, shall constitute a lien or a special assessment against that parcel and shall be collected in accordance with applicable State and City laws. 8 of 62 April 16, 2019, Item #4.1 Resolution No. P -19 - Page 4 PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway at a regular meeting held on the 16th day of April 2019. Steve Vaus, Mayor ATTEST: Faviola Medina, CMC, City Clerk STATE OF CALIFORNIA ) SS COUNTY OF SAN DIEGO ) I, Faviola Medina, City Clerk of the City of Poway, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 19- was duly adopted by the City Council at a meeting of said City Council held on the 16th day of April 2019, and that it was so adopted by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: Faviola Medina, CMC, City Clerk City of Poway 9 of 62 April 16, 2019, Item #4.1 R -B D -O Subject Location: 13822 Northcrest Lane APN 278-442-43 RR -C NORT-H_GRE-S-T- N S-2 N 1- 0 70 140 280 T Feet CITY OF POWAY Zoning / Location Map Item: Code Case 17-0071 & 17-0074 13822 Northcrest Lane APN 278-442-43 10 of 62 ATTACHMENT B April 16, 2019, Item #4.1 NOTICE City of Poway Development Services Department Code Compliance 13325 C' is Center Drive, Poway CA 92064 STOP WORK: Permits have been issued for work being done. ermit required before work can resume. CORRECT WORK: as described below, see corrective action required. Date: //1 l n_ Address/APN: (,S ` NoE7 t ( N i Code Compliance Officer: , CeL (858) 668- k T S PROJECT IS IN VIOLATION OF THE FOLLOWING:: Poway Municipal Code Violation /& (`9 , dl//I011 3 , 29' 656 ' 10. to70 0 ES Stormwater Ordinance No Building Permit Q Tree Removal without City Approval Q Commercial Landscape Removal without City Approval Other. Please Contact ,p , at (858) 668 - Q G 11 of 62 ATTACHMENT C April 16, 2019, Item #4.1 DATE:j NOTICE PROJECT: PROJECT #: ADDRESS: IQd STOP WORK A?N a-17-1-7 a1B1IN 2113 OC) Stop all other work until erosion control/NPDES deficiencies noted below are corrected. CORRECT WORK Correct noted deficiencies within the specified time frame to avoid a Stop Work Notice: 24 Hours 72 Hours X5 Days Prior to October 1st (Other,o)() 0 tai%n THIS PROJECT IS IN CONFLICT WITH THE FOLLOWING: City of Poway Grading Ordinance' Other: Clnti 1( cT, . I—L THE AREAS OF CONFLICT ARE: KErosion control is not on site Erosion control is inadequate Other (ic tz,., .")-' XCity of Poway JURMP Erosion control is not per the approved plan Failure to maintain erosion/sediment control device THE FOLLOWING DEFICIENCIES ARE NOTED: Stabilized construction entrance Runoff from the site Desilting basin OPerimeter protection at toe of slope Waste/materials storage Cover on sloped and/or flat areas that are inactive for more than 10 days Other Wo/'k k1as t)e-eet a C9 c4our r r THIS WTICE WAS ISSUED TO: CC: /City Engineer DATE/TIME: a17- 7 /a 2Sr. Civil Engineer BY: ti i cr Eng. Inspect. Supvr. TITLE: C 1 Lead Inspector PHONE: 1 kOFs K8 Code Compliance Building Management Assistant IF YOU HAVE FURTHER QUESTIONS, PLEASE RWQCB CALL THE CITY OF POWAY'S DEVELOPMENT SERVICES DEPARTMENT AT (858) 668-4668. Having deficiencies in your erosion control is a violation of the City of Poway Grading Ordinance. A violation of the City of Poway's Grading Ordinance is a misdemeanor. Each separate day or portion thereof on which a violation exists or is allowed to exist shall constitute a separate offense punishable by the provisions of the Ordinance. 12 of 62 ATTACHMENT D April 16, 2019, Item #4.1 r. 2OAEWOCgymVfNLVW 4- 1EW b Q CLvmN0 N r 2u 9 s { ry l l u C7L Nw r Qn0N b Q CLvmN 0 NApril 16, 2019, Item #4.1 aU O L ` w c O c N b CL O CL U i a a y. a4J , U f O r4 T Ea CL v April 16, 2019, Item #4.1 Melody Rocco From: Melody Rocco Sent: Wednesday, March 1, 2017 8:56 AM To: cndougherty@att.net' Cc: Ralph Jeffery' Subject: 13822 Northcrest Lane Attachments: Picturel jpg; Picture2.jpg; Picture3jpg; 2012 Aerial Image.pdf Chris, I read through the Geotech report that was provided and reviewed the site photos. The geotech report indicates fills approaching 4 feet but as you can see in picture 1, the cut far exceeds 4 feet. The attached aerial image from 2012 showing the pool located at the northeast corner of the house. The attached photos showing grading across the entire north side of the house. Based upon the report, the aerial image, and the photos, I cannot agree that the work conducted was solely for a pool demo. You will need to apply for and obtain a grading permit and fully complete construction of the approved grading permit prior to issuance of any other permits. The permit application will need to include a geotech report that fully addresses the grading that has occurred as well as the proposed finished site. You have 45 days to submit for your grading permit. Thanks, Melody Melody Rocco, PE Senior Civil Engineer Development Services Department 858-668-4653 (new phone number) mrocco@ooway.ora 15 of 62 ATTACHMENT F April 16, 2019, Item #4.1 STEVE, VAUS, IMayor CITY OF POWAY BARRY I.HONARD, Dcpuh, Mayor JIM CUNNINGHAM, Councilmember DAVE GROSC:I I, Councilmember JOI IN MULLIN, Councilmember May 12, 2017 Mark Fisher 333 Orange Avenue #41 Coronado, CA 92118 RE: Dougherty Grading, G17-0006 Dear Mr. Fisher The City has completed the 1a1 review of the grading plans for the Dougherty Grading project (G17-0006). The following items will need to be addressed prior to approval of plans: Grading Plan 1. Plans must be signed and stamped. 2. Provide a Preliminary Title Report (PRT) with copies of all exceptions. 3. Show and reference all easements as listed in the PRT. 4. The line types and hatching shown in plan view must match those shown on the legend. 5. Show the limits of grading (daylight line) 6. All retaining wall must be shown as "per separate permit' 7. Show the location of the proposed wall cross sections 8. Call out the proposed distance between the wall and the property line in the sections to verify that the walls will be built entirely within the property. 9. Provide labels on all proposed contours. Drainage Report 10. The proposed hydrologic work map must clearly distinguish between the different drainage basins and the proposed flow path. 11. Provide an existing hydrologic work map. 12. The project must provide mitigation measure for the increase in peak flow run off or provide additional discussion that elaborates on how downstream facilities will not be effected by the increase in stormwater runoff. Water Quality Requirements 13. The applicant must provide documentation showing that the project meets water quality and flow control requirements per the Poway BMP Design Manual. Please provide the following forms: a. Form 1-1 Applicability of Permanent Post Construction BMPs b. Form 1-2 Project Type Determination C. Form 1-3 (Depending on the outcome of the previous forms) City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074-0789 www.poway.org 16 of 62 ATTACHMENT G April 16, 2019, Item #4.1 Mark Fisher G17-0006 May 12, 2017 Planning Comments 14. Retaining walls shall be constructed with decorative block or be covered in stucco and painted to match the color of the home or other walls on the property. Please note on plans. 15. Please be aware that the retaining walls, which have a walking or driving surface adjacent to the top of the retaining wall, shall be equipped with an open and decorative metal railing on the top of the retaining wall for safety as deemed necessary by the City Building Official. The building code requires a minimum 42". Please show the railing and provide a typical elevation of the retaining wall and metal railing combination. 16. To increase the readability of the grading plans, please use different line weights to help differentiate between existing and proposed elevation contours and pavement areas. 17. Please use the correct Assessor's Parcel Number: 278-442-43 18. Please note if any trees are being removed. A Tree Removal permit is required if a Coast Live Oak or a California Sycamore will be removed. 19. Please list the average natural slope (pre -development) of the site. Please see the redlined plans, drainage study, and cost estimate for additional comments. Feel free to contact me via phone at (858) 668-4653 or via email at mrocco Poway.orq to discuss any of the comments listed above or on the redline plans. Sincerely, DEVELOPMENT SERVICES DEPARTMENT 4 Melody e,P Senior Civil Engineer 17 of 62 April 16, 2019, Item #4.1 11 STEVE VAUS, Mayor CITY OF POWAY BARRY LEONARD, Deputy Mayor JIM CUNNINGHAM, Councilmember DAVE GROSCH, Coundru mber JOHN MULLIN, Councitmember October 4, 2017 Mark Fisher 333 Orange Avenue #41 Coronado, CA 92118 RE: Dougherty Grading, G17-0006 Dear Mr. Fisher The City has completed the 2nd review of the grading plans for the Dougherty Grading project (G17-0006). The following items will need to be addressed prior to approval of plans: Grading Plan 1. Provide labels on all proposed contours. (2nd request) 2. Show the location of all proposed wall cross sections. (20d request) 3. The proposed storm drain shown on sheet 4 must also be shown on sheet 3. (2nd request) Drainage Report 4. The project must show the change in Q100 between pre- & post -condition for each discharge location. 5. Back up calculations shall be provided to confirm that the proposed "flatter" condition will mitigate the increase in Q100. This should be accounted for in the hydrologic and Tc calculations. Water Quality Requirements 6. The applicant must provide all water quality documents for a standard SWQMP per the Poway BMP Design Manual. Please provide the following forms: o Form 1-4 Source Control BMP Checklist o Form 1-5 Site Design BMP Checklist Please see the redlined plans, drainage study, and storm water forms for additional comments. Feel free to contact me via phone at (858) 668-4653 or via email at mroccoCbPoway. org to discuss any of the comments listed above or on the redline plans. Sincerely, 1plavffM -I T,- • iPE Senior Civil Engineer City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074-0789 www.poway.org 18 of 62 April 16, 2019, Item #4.1 From: Melody Rocco To: %ndouoherty0attnet" Cc: Daniel Welte Subject: G17-0006; Code Case 17-0071 Date: Monday, April 16, 2018 3:24: 00 PM Attachments: Additional Deposit 2017.11.15.odf Mr. Dougherty, It has been more than six months since activity on processing your grading permit has occurred. The last round of comments was provided October 4, 2017. Please consider this email as notice that you must provide progress on your grading permit application, within two weeks (by April 30, 2018), by resubmitting plans and all other requested resubmittals. If you do not resubmit, your code case will be elevated to the next step through our Code Enforcement division. Please note, we will also require the additional plan review deposit funds required to complete the required review. For reference, please see attached additional deposit request mailed to you in November 2017. Thanks, Melody Melody Rocco, PE Senior Civil Engineer Development Services Deportment 858-668-4653 mlocco0a PQWQV. ora 19 of 62 April 16, 2019, Item #4.1 STBVBVAUS, Mayor CITY OF POWAY C4, JOHN MIJIJ,[N, Deputy Mayor CAYLIN FRANK, Councilmcmber DAVE CROSCI-I, Counedmember BARRY LEONARD, Counedmcmber .d{ Sent via USPS certified mail, first class mail and posted NOTICE AND ORDER TO ABATE NUISANCE The City's records reveal that you own, occupy, possess or otherwise have an interest in the property identified below. You are hereby informed that the Director of Development Services, as designee of the City Manager of the City of Poway, has determined that condition(s) exist on your property that pose a threat to the general health, safety and welfare of the public and that these are deemed violation(s) contrary to the Poway Municipal Code (PMC). Specifically, the condition on your property violates the below -referenced PMC. As a result of the violation(s), the property Is deemed a public nuisance requiring abatement. Said property is located at 13822 Northcrest Ln., in the City of Poway. J T A REAL ESTATE HOLDINGS LLC CHRISTOPHER D. DOUGHERTY 13822 NORTHCREST LN POWAY CA, 92064 APN 2784424300 Case #17-0071 The following violation(s) of law has or have been determined to pose a threat to the general health, safety and welfare of the public and constitute a nuisance at the property. VIOLATION(S) Poway Municipal Code Section 16.56. 010 - Unlawful to violate grading regulations, grading without permits. Poway Municipal Code Section 16.56.020 —Violations of City grading regulations are a public nuisance. CORRECTIVE ACTIONS: Make progress toward issuance of grading permit for unapproved grading activity on your property. Obtain all required permits and complete all required inspections with a "pass" result. As you know, the City of Poway has previously sent you two (2) Notices of Violation on these matters, in addition to other communications. Despite these Notices, the City has inspected your property and determined that violations continue to exist. You are hereby ordered to take the above described corrective action within thirty (30) days from the date of this Notice and Order. City Hatt Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074.0789 www.poway.org 20 of 62 ATTACHMENT H April 16, 2019, Item #4.1 Notice and Order — 13822 Northcrest Ln. — Case #17-0071 August 14, 2018 Page 2 You are hereby further advised of your right to an administrative hearing on this determination where you may present evidence in your defense. Said hearing must be requested in writing to the City Manager, within ten (10) days of the date the City mailed this notice to you. You are also hereby notified that if violation(s) listed herein are not abated within the time specified, the City may abate the nuisance and charge you the cost/fees of the abatement, including administrative costs, attorneys' fees and reasonable interest for unpaid costs/fees thereof, Moreover, if the costs of abatement are not timely reimbursed to the City, such amounts may be assessed against the property and may be placed on the property's tax bill, Additionally, pursuant to PMC section 1.08.010, if the aforementioned violation(s) or condition(s) constituting a nuisance is/are not brought into compliance in a timely manner, you could also be subject to a charge for a separate offense for each and every day during which this/these violation(s) is/are continued, or the City could initiate a civil action (e.g., seeking injunctive relief or a receivership), a criminal action, and/or issue of administrative citations for these continuing violations. We are providing you a notice that "in accordance with Sections 17274 and 24436.5 of the Revenue and Taxation Code, a tax deduction may not be allowed for interest, taxes, depreciation, or amortization paid or incurred in the taxable year" for any property that is deemed a public nuisance. California Health & Safety Code § 17980(d).) Moreover, we are hereby providing you notice that is unlawful for a lessor to retaliate against a lessee pursuant to Section 1942.5 of the Civil Code for reporting a violation. Thank you for the anticipated cooperation in this matter. Should you have questions regarding this matter, please contact Code Compliance Officer Daniel Welte at 858-668-4664 or dwelteeooway.oro. Dated: August 14, 2018 CITY ZOFWAY 7/Lf G/ BV Rob€rt U. Manis, Director of D1ev ropment Services APPROVED AS TO FORM: 01410 A7vu-- Alan Fenstermacher, City Attorney Attached: PMC Section 16.56.010, 16.56.020, and 16.56.040 21 of 62 April 16, 2019, Item #4.1 srr,-,,US, bLayur CITY OF P OWAY BARRY LEONARD, Dcpug' Mayan JIM CUNNINGHAM, Councilmcmber DAVIT GROSCI1, COnnclbnember J01 IN MULLIN, Councihnember May 12, 2018 SECOND NOTICE OF VIOLATION Property Owners J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY CA, 92064 SUBJECT: Unapproved grading at 13822 Northcrest Ln. Poway, CA 92064; APN 2784424300 Case Number: 17-0071 Dear Property Owner, 0 01111 C( IN THE C The City has been made aware of unapproved grading in violation of PMC Section 16.56.010, 16.56. 020, and 16,56.040 (Attachment 1). You are required to complete the following corrective measures within ten (10) days from the date of this letter: 1. Make progress toward issuance of grading permit for unapproved grading activity on your property. Failure to correct the violation(s) by the required date may result in issuance of Administrative Citation, double permit fees, withholding of any permit or project, revocation of permits, recordation of Notice of Violation against the property, Imposition of lion against the property, Nuisance Abatement Proceedings and/or referral to the City Attorney. I appreciate your cooperation in resolving this matter. If you have any questions, please contact my office at (858) 668-4664 or dwelte@poway.org. Respectfully, DEVELOPMENT SERVICES DEPARTMENT XanielWalte,ode ompliance Officer Attachments: PMC Section 16.56.010, 16.56.020, and 16.56.040 22 of 62 April 16, 2019, Item #4.1 UENE: VAUS, Mayor CITY OF POWAY BARRY I,EONARD, Deputy Mayo, I I IN CUNNINGI [AM, Councilmember DAVE GROSCPI, COlmcillnember JOI-IN NIULLIN, CounciLnembec May 2, 2018 NOTICE OF VIOLATION Property Owners J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY CA, 92064 SUBJECT: Unapproved grading at 13822 Northcrest Ln. Poway, CA 92064; APN 2784424300 Case Number: 17-0071 Dear Property Owner, OF POW'9Y idCm' 1N THE BOJ The City has been made aware of unapproved grading in violation of PMC Section 16.56.010, 16.56. 020, and 16.56.040 (Attachment 1). You are required to complete the following corrective measures within ten (10) days from the date of this letter: 1. Make progress toward issuance of grading permit for unapproved grading activity on your property. Failure to correct the violation(s) by the required date may result in issuance of Administrative Citation, double permit fees, withholding of any permit or project, revocation of permits, recordation of Notice of Violation against the property, imposition of lien against the property, Nuisance Abatement Proceedings and/or referral to the City Attorney. I appreciate your cooperation in resolving this matter. If you have any questions, please contact my office at (858) 668-4664 or dwelte@poway.org. Respectfully, D VELOPMENT SERVICES DEPARTMENT Xamelelt"odeompliance Officer Attachments: PMC Section 16.56.010, 16.56.020, and 16.56.040 23 of 62 April 16, 2019, Item #4.1 STEVE VAUS, Mayor CITY OF POWAY HARRY LEONARD, Deputy Mayor C4- JIM CUNNINGHAM, Coundmcmber DAVE GROSCH, Councilmember JOHN MULLIN, Councitmember ` 4t Sent via USPS certified mail and first class mail NOTICE AND ORDER TO ABATE NUISANCE You are hereby informed that the Director of Development Services, as designee of the City Manager of the City of Poway, has determined that condition(s) exist on your property that pose a threat to the general health, safety and welfare of the public and that these are deemed violation(s) contrary to the Poway Municipal Code (PMC). Specifically, the condition on your property violates requirements for building permits and approvals. As a result of these violations. the orouerty is deemed a public nuisance requiring abatement. Said property is located at 13822 Northcrest Ln, in the City of Poway. J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY, CA 92064 Assessor's Parcel Number 2784424300 Case # 17-0074 The following violations of law have been determined to pose a threat to the general health, safety and welfare of the public and constitute a nuisance at the property: VIOLATIONS: PMC Chapter 15.02 — Unlawful to violate technical codes, building, plumbing and mechanical. PMC Chapter 15. 04 — Permits, inspections and final approval required for all construction. PMC Section 8.60.141 — Permit required to construct or repair septic system. CORRECTIVE ACTIONS: Property owner must complete the following action for violation within ten (10) days from the date of this Notice and Order: 1. Obtain all required permits for unpermitted improvements to home, including detached garage, car port/shade structure, home additions/alterations/modifications, new underground plumbing/gas and electrical. 2. Obtain all required permits for repairs or modifications to septic. As you know, the City of Poway has previously sent you two (2) Notices of Violation on these matters on April 18, 2017 and August 17, 2017 (Attachment 1). The past Notices 24 of 62 ATTACHMENT I April 16, 2019, Item #4.1 Notice and Order — J T A REAL ESTATE HOLDINGS LLC 11/08/ 17 Page 2 of Violations sent to you informed you of your responsibility to correct the violations that exist on the property and that are described in this Notice and Order to Abate Nuisance. This violation continues to exist on the property based on on-going visual inspections conducted by the City's Code Compliance Staff. The City has informed you that it is responsible for enforcing all provisions of Title 15 and 8 of the PMC. You are hereby ordered to take the above described corrective action within ten (10) days from the date of this Notice and Order or, alternatively, and within the same period of time, to bring this property into conformity with the requirements of Chapter 15.02, 15.04 and Section 8.60.141 of Poway Municipal Code (PMC) (Attachment 2). You are hereby advised of your right to an administrative hearing on this determination before the City Manager or designated employee, where you may present evidence in your defense. Said hearing must be requested, in writing to the City Manager within ten (10) days of the date the City mailed this notice to you. You are also hereby notified that if said nuisance is not abated within the time specified by the City, the City may abate the nuisance and charge the cost of the abatement, including administrative costs thereof and reasonable interest therefor, from the date of said abatement, to you. Moreover, if the City's costs of abatement are not reimbursed to the City, such amounts shall be assessed to the property. Additionally, in accordance with General Penalty provisions of PMC, Section 1.06.010, if the aforementioned violations or conditions constituting a nuisance are not brought into compliance, you could also be subject to a charge for a separate offense for each and every day during which this violation is continued, a civil action by the City seeking remedies under state and federal law, and/or the issuance of citations under the City's administrative citation process. Should you have any questions regarding this matter, please contact Code Compliance Officer Daniel Welte at (858) 668-4664 or dwelte@poway.org. Thank you for your anticipated cooperation in this matter. Dated: November 8, 2017 CITYOF OWAY By /I lxf.-, Rob rt . Manis, ret D elopment Services APfjROVED AS TO FORM: Morg fi L. oley, City ttorney Attached: 1. Past Notice of Violation Letters 2. PMC Chapter 15.02,15.04 and Section 8.60.141 25 of 62 April 16, 2019, Item #4.1 s'mvuVAUS,Mayor CITY OF POWAY of HARRY 1.IS0NARD, Deputy Mayor JIM CUNNINGI IAM, Councilmember DAVE, GROSCI 1, Councdmember JOI IN MULLIN, Councilmember eye ,., Q7y 1N THE C August 17, 2017 SECOND NOTICE OF VIOLATION J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY, CA 92064 Subject: Additions, alterations to home and new structure 13822 Northcrest Ln, Poway, CA 92064; APN 2784424300; Case Number: 17-0074 Dear Property Owner, It has come to the attention of the City of Poway that improvements on your property located at 13822 Northcrest Ln, Poway, CA 92064 do not have building permits. Specifically, the detached garage at the west end of your home, additions to your home, septic repair activity, underground plumbing/gas installation and underground electrical construction. Photos are attached for orientation. This is a violation of the followine Powav Municipal Code (PMCI Sections: 1. 15.04.010 — Building permits required; final approval of construction required. 2. 15.02.010 —Unlawful to violate building, plumbing, mechanical and technical codes. 3. 8.60.141— Permit required to construct or repair septic tank. You are required to complete the following corrective measures within ten (10) days from the date of this letter: Obtain all required permits for unpermitted improvements to home, including detached garage, home additions, new underground plumbing/gas and electrical OR, restore home to original design with permits. 2, Obtain all required permits for repairs or modifications to septic. Failure to correct the violation(s) by the required date may result in issuance of Administrative Citation, double permit fees, recordation of Notice of Violation against the property, imposition of lien against the property, Nuisance Abatement Proceedings and/or referral to the City Attorney. 26 of 62 April 16, 2019, Item #4.1 I appreciate your cooperation in resolving this matter. If you have any questions, please contact Daniel Welte at (858) 668-4664 or dwelte@poway.org. Respectfully, DEVELOPMENT SERVICES DEPARTMENT Daniel Welte Code Compliance Officer 27 of 62 April 16, 2019, Item #4.1 STEVE VAUS, Mayor CITY OF POWAY C* OFBARRYLEONARD, Deputy MayorJIMCUNNINGHAM, Councdmember DAVE GROSCH, Councilmember JOHN MULLIN, Councilmember. cOV April 18, 2017 FIRST NOTICE OF VIOLATION J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCRESTLN POWAY, CA 92064 Subject: Additions, alterations to home and new structure 13822 Northcrest Ln, Poway, CA 92064; APN 2784424300; Case Number: 17.0074 Dear Property Owner, It has come to the attention of the City of Poway that Improvements on your property located at 13822 Northcrest Ln, Poway, CA 92064 do not have building permits. Specifically, the detached garage at the west end of your home, additions to your home, septic repair activity, underground plumbing/gas installation and underground electrical construction. Photos are attached for orientation. This is a violation of the following Poway Municipal Code (PMC) Sections: 1. 15.04.010 — Building permits required; final approval of construction required. 2. 15.02.010 —Unlawful to violate building, plumbing, mechanical and technical codes. 3. 8.60.141— Permit required to construct or repair septic tank. You are required to complete the following corrective measures within ten (10) days from the date of this letter: 1. Obtain all required permits for unpermitted improvements to home, including detached garage, home additions, new underground plumbing/gas and electrical OR, restore home to original design with permits. 2. Obtain all required permits for repairs or modifications to septic. Failure to comply may result In Issuance of an Administrative Citation or referral of this matter to the City Attorney. 28 of 62 April 16, 2019, Item #4.1 appreciate your cooperation in resolving this matter. If you have any questions, please contact Daniel Welte at (858) 668-4664 or dwelte@poway.org. Respectfully, DEVELOPMENT SERVICES DEPARTMENT Daniel Welte Code Compliance Officer Photos 29 of 62 April 16, 2019, Item #4.1 STEVE VAUS,Mayor CITY OF POWAY BARRY IXONARD, Dcputy Msyor I IM CUNNINGI-IAib1, Cuuncilmcmbcr DANT, GROSCI-I, Councilmember Jof [N MULLIN, Councilmcmber March 29, 2017 Courtesy Notice J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY, CA 92064 Subject: Additions, alterations to home and new structure 13822 Northcrest Ln, Poway, CA 92064; APN 2784424300; Case Number: 17-0074 Dear Property Owner, G`ty OF OWgr 1 y THE GOJ P It has come to the attention of the City of Poway that improvements on your property located at 13822 Northcrest Ln, Poway, CA 92064 may not have building permits. Specifically, the detached garage at the west end of your home, additions to your home, septic repair activity, underground plumbing/gas installation and underground electrical construction, Photos are attached for orientation. Please provide evidence that these improvements are being constructed or were completed under construction permits within ten (10) days from the date of this letter. I appreciate your cooperation in resolving this matter. If you have any questions, please contact Daniel Welte at (858) 668-4664 or dwelte@poway.org. Respectfully, DEVELOPMENT SERVICES DEPARTMENT LP4;7 Code Compliance Officer 30 of 62 April 16, 2019, Item #4.1 v 9 1;3P72 ho lllctesl in ib-_y , _ 1111 1 1 Ii Aad1o,chpuut0ee. 1Rdp rdgigrtrwta April 16, 2019, Item #4.1 To: Robert Manis Director Of Development Services I am writing to explain the situation we find ourselves in since we moved in 3 years ago. We originally hired an engineer to help us plan for a pool in the future. The property was old a needed a lot of attention. We initially didn't know that there was a pool built in the backyard but after talking to neighbors and such we were told that the previous owners had buried the bottom of the pool improperly. Demo permit filed $5000 by existing home owners San Diego Pools verified information San Diego Pools asked that we pot hole the property where we wanted the pool, to see if the previous owners had removed the pool properly, which they didn't Once we found out that their was water in the pool , we chiseled out the pool remains and hired a soils engineer to help with the process. We also hired an engineer to help with the Layout of the backyard. As we removed the pool remains, the engineer was preparing plans to summit to the city of Poway. The engineer completed the 1 st draft of plans for Poway. Corrections were requested. Corrections were made and submitted. Corrections were requested again. Corrections were made and submitted. Corrections were requested again. Each time corrections were requested, there was a cost. After several attempts over the course of 2 years. We have exhausted our finances and have to stop any progress on the plans. We no longer have plans to build a pool in the back yard. If you have any questions please do not hesitate to call us at either my cell (858)945-5145 or my husbands cell (858)945.5139. Thank you, Chris 8 Nellie Dougherty 32 of 62 ATTACHMENT J April 16, 2019, Item #4.1 o CITY OF POWAY NOTICE OF VIOLATION ON REAL PROPERTY No Documentary Transfer Tax Due) The real property located in the City of Poway, County of San Diego, State of California, described as follows: 13822 Northcrest Ln. Poway, CA 92064 APN: 278- 442-43-00 Said property is located in the City of Poway. Property owner's name and address: J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY CA, 92064 The City Manager's designee has determined that the property having the above legal description has had improvements to the property, without valid permits being first obtained. This is in violation of the Poway Municipal Code as listed below: Poway Municipal Code, Ch. 15.02,15.04; Sections 13.09.070(A)(1), 13.09.070 (A)(5), 16.56. 010, 16.56.020, and 16.56.040. (Cases 17-0071, 17-0073 and 17-0074) The record owner of the Property has been duly notified, and given an opportunity to correct the violation. Approved as to form: 1 Alan Fenstermacher City Attomey City of Poway 33 of 62 City of Poway ATTACHMENT K DOC# 2018-0411843 RECORDING REQUEST BY: ) IIIIIIIIIIIIIIIIINIIIIIIIIIIIIIIIIIIIIIIINIIIVIIIIIIIIpIIIUNIIII CITY OF POWAY ) Oct 03, 2018 11:16 AM, WHEN RECORDED MAIL TO: ) OFFICIAL RECORDS CITY CLERK ) Ernest J. Dronenburg, Jr., CITY OF POWAY ) SAN DIEGO COUNTY RECORDER P.O. BOX 789 FEES: $0.00 (SB2Atkins: $0.00) POWAY, CA 92074-0789 ) PAGES: 5 This space for Recorder's Use Only) 278-442-43-00 Gov. Code §27281.5 CITY OF POWAY NOTICE OF VIOLATION ON REAL PROPERTY No Documentary Transfer Tax Due) The real property located in the City of Poway, County of San Diego, State of California, described as follows: 13822 Northcrest Ln. Poway, CA 92064 APN: 278- 442-43-00 Said property is located in the City of Poway. Property owner's name and address: J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY CA, 92064 The City Manager's designee has determined that the property having the above legal description has had improvements to the property, without valid permits being first obtained. This is in violation of the Poway Municipal Code as listed below: Poway Municipal Code, Ch. 15.02,15.04; Sections 13.09.070(A)(1), 13.09.070 (A)(5), 16.56. 010, 16. 56.020, and 16.56.040. (Cases 17-0071, 17-0073 and 17-0074) The record owner of the Property has been duly notified, and given an opportunity to correct the violation. Approved as to form: 1 Alan Fenstermacher City Attomey City of Poway 33 of 62 City of Poway ATTACHMENT K April 16, 2019, Item #4.1 STERE, VAUS, Mayor CITY OF POWAY P JOHN MULLIN, Deputy Mayor CAYLIN PRANK, Councilmember DAV F GROSCH, Coundmember BABRY LEONARD, Counalmember IN THE GdJ Sent via USPS certified mail, first class mail and posted NOTICE AND ORDER TO ABATE NUISANCE The City's records reveal that you own, occupy, possess or otherwise have an interest in the property identified below. You are hereby informed that the Director of Development Services, as designee of the City Manager of the City of Poway, has determined that condition(s) exist on your property that pose a threat to the general health, safety and welfare of the public and that these are deemed violation(s) contrary to the Poway Municipal Code (PMC). Specifically, the condition on your property violates the below -referenced PMC. As a result of the violation(s), the property is deemed a public nuisance reauirina abatement. Said property is located at 13822 Northcrest Ln., in the City of Poway. J T A REAL ESTATE HOLDINGS LLC CHRISTOPHER D. DOUGHERTY 13822 NORTHCREST LN POWAY CA, 92064 APN 2784424300 Case 917-0071 The following violation(s) of law has or have been determined to pose a threat to the general health, safety and -welfare of the public and constitute a nuisance at the property. VIOLATION(S) Poway Municipal Code Section 16.66.010 - Unlawful to violate grading regulations, grading without permits. Poway Municipal Code Section 16.66.020— Violations of City grading regulations are a public nuisance. CORRECTIVE ACTIONS: Make progress toward issuance of grading permit for unapproved grading activity on your property. Obtain all required permits and complete all required inspections with a "pass" result. As you know, the City of Poway has previously sent you two (2) Notices of Violation on these matters, in addition to other communications. Despite these Notices, the City has inspected your property and determined that violations continue to exist. You are hereby ordered to take the above described corrective action within thirty (30) days from the date of this Notice and Order. City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074.0789 www.poway.org 34 of 62 April 16, 2019, Item #4.1 Notice and Order — 13822 Northcrest Ln. —Case #17-0071 August 14, 2018 Page 2 You are hereby further advised of your right to an administrative hearing on this determination where you may present evidence in your defense. Said hearing must be requested in writing to the City Manager, within ten (10) days of the date the City mailed this notice to you. You are also hereby notified that if violation(s) listed herein are not abated within the time specified, the City may abate the nuisance and charge you the cost/fees of the abatement, including administrative costs, attorneys' fees and reasonable interest for unpaid costs/fees thereof. Moreover, if the costs of abatement are not timely reimbursed to the City, such amounts may be assessed against the property and may be placed on the property's tax bill. Additionally, pursuant to PMC section 1.08.010, if the aforementioned violation(s) or conditions) constituting a nuisance is/are not brought into compliance in a timely manner, you could also be subject to a charge fora separate offense for each and every day during which this/these violation(s) is/are continued, or the City could initiate a civil action (e.g., seeking injunctive relief or a receivership), a criminal action, and/or issue of administrative citations for these continuing violations. We are providing you a notice that "in accordance with Sections 17274 and 24436.5 of the Revenue and Taxation Code, a tax deduction may not be allowed for interest, taxes, depreciation, or amortization paid or incurred in the taxable year" for any property that is deemed a public nuisance. California Health & Safety Code § 17980(d).) Moreover, we are hereby providing you notice that is unlawful for a lessor to retaliate against a lessee pursuant. to Section 1942.5 of the Civil Code for reporting a violation. Thank you for the anticipated cooperation in this matter. Should you have questions regarding this matter, please contact Code Compliance Officer Daniel Welte at 858-668-4664 or dwelte atoway.ora. Dated: August 14, 2018 CITY ZOFVWAY l B Rob rt b. Mania, Di " ctor of qevefopment Services APPROVED AS TO FORM: X vvt_- Alan Fenstermacher, City Attorney Attached: PMC Section 16. 56.010, 16. 56.020, and 16.56.040 35 of 62 April 16, 2019, Item #4.1 STEVE VAUS, Mayor CITY OF POWAYD BARRY LEONARD, Deputy Mayor G JIM CUNNINGHAM, Couudirnember DAVE GROSCH, CouncUmember JOHN MULLIN, Counciimember fie'cJ — I coo Sent via USPS certified mail and first class mail NOTICE AND ORDER TO ABATE NUISANCE You are hereby informed that the Director of Development Services, as designee of the City Manager of the City of Poway, has determined that condition(s) exist on your property that pose a threat to the general health, safety and welfare of the public and that these are deemed violation(s) contrary to the Poway Municipal Code (PMC). Specifically, the condition on your property violates requirements for building permits and approvals. As a result of these violations, the property is deemed a public nuisance requiring abatement Said property is located at 13822 Northcrest Ln, in the City of Poway. J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY, CA 92064 Assessor's Parcel Number 2784424300 Case # 17-0074 The following violations of law have been determined to pose a threat to the general health, safety and welfare of the public and constitute a nuisance at the property: VIOLATIONS: PMC Chapter 15.02 — Unlawful to violate technical codes, building, plumbing and mechanical. PMC Chapter 15.04 — Permits, inspections and final approval required for all construction. PMC Section 8.60.141— Permit required to construct or repair septic system. CORRECTIVE ACTIONS: Property owner must complete the following action for violation within ten (10) days from the date of this Notice and Order: 1. Obtain all required permits for unpermitted improvements to home, including detached garage, car port/shade structure, home additions/alterations/modifications, new underground plumbingigas and electrical. 2. Obtain all required permits for repairs or modifications to septic. As you know, the City of Poway has previously sent you two (2) Notices of Violation on these matters on April 18, 2017 and August 17, 2017 (Attachment 1). The past Notices 36 of 62 April 16, 2019, Item #4.1 Notice and Order — J T A REAL ESTATE HOLDINGS LLC 11/08/17 Page 2 of Violations sent to you informed you of your responsibility to correct the violations that exist on the property and that are described in this Notice and Order to Abate Nuisance. This violation continues to exist on the property based on on-going visual inspections conducted by the City's Code Compliance Staff. The City has informed you that it is responsible for enforcing all provisions of Title 15 and 8 of the PMC. You are hereby ordered to take the above described corrective action within ten (10) days from the date of this Notice and Order or, alternatively, and within the same period of time, to bring this property into conformity with the requirements of Chapter 15.02, 15.04 and Section 8.60.141 of Poway Municipal Code (PMC) (Attachment 2). You are hereby advised of your right to an administrative hearing on this determination before the City Manager or designated employee, where you may present evidence in your defense. Said hearing must be requested, in writing to the City Manager within ten (10) days of the date the City mailed this notice to you. You are also hereby notified that if said nuisance is not abated within the time specified by the City, the City may abate the nuisance and charge the cost of the abatement, including administrative costs thereof and reasonable interest therefor, from the date of said abatement, to you. Moreover, if the City's costs of abatement are not reimbursed to the City, such amounts shall be assessed to the property. Additionally, in accordance with General Penalty provisions of PMC, Section 1.08.010, if the aforementioned violations or conditions constituting a nuisance are not brought into compliance, you could also be subject to a charge for a separate offense for each and every day during which this violation is continued, a civil action by the City seeking - remedies under state and federal law, and/or the issuance of citations under the City's administrative citation process. Should you have any questions regarding this matter, please contact Code Compliance Officer Daniel Welte at (858) 668-4664 or dwelte@poway.org. Thank you for your anticipated cooperation in this matter. Dated: November B. 2017 CITY 7OFWAY By Rob rt . Manis,ret D elopment Services AP ROVED AS TO FORM: Morg L. -ola} , City ttorney Attached: 1. Past Notice of Violation Letters 2. PMC Chapter 15.02,15.04 and Section 8.60.141 37 of 62 April 16, 2019, Item #4.1 Daniel Welte From: Trish Johnson Sent: Tuesday, March 19, 2019 3:57 PM To: Daniel Welte Subject: RE: Joint inspection at 13822 Northcrest Ln Hi Dan, When we were on location of 13822 Northcrest Ln. I noted the following building violations: An addition has been done to the garage with electrical without permits The kitchen has been remodeled without permits A patio cover has been enclosed to a game room/teen room adjoining 2 bedrooms without permits. By doing this the 2 bedrooms no longer have the required egress windows or doors to the exterior in case of an emergency. It appears work has been done to the septic tank and possibly the leach lines A pool was demoed without permits A patio cover was converted to a dining area/nook without permits A reroof and new siding was done without permits Please let me know if you need any additional information or having any questions. Trish Johnson Field Supervisor 13325 Civic Center Drive Poway, CA 92064 858.668.4648 858.668.1211 FAX tiohnson@poway.ore Building Counter Hours: Monday - Thursday: 7:30-11: 30, 12:30-5:30, CLOSED for lunch 11:30-12: 30 Friday (Closed every other Friday): 8:00-11:30, 12:30-5:00, CLOSED for lunch 11:30-12:30 Please see www.powoy.ora for a schedule of open/closed Fridays and other City of Poway holidays. From: Daniel Welte Sent: Wednesday, March 13, 2019 8:01 AM To: Trish Johnson <TJohnson@poway.org> Subject: Joint inspection at 13822 Northcrest Ln Hi Trish, Would you kindly summarize your building code violation observations during ourjoint site visit with the property owner on October 24, 2018. Daniel Welte Code Compliance Officer I Development Services, Poway P 1858) 66&9664 F [898) 668 1260 1 r?w IteG rxiw y o g 38 of 62 ATTACHMENT L April 16, 2019, Item #4.1 ADMINISTRATIVE CITATION CITY OF POWAY Citation No. DEPARTMENT: Development Services DIVISION: Code Compliance 645iiD17- 6 '-k I 13325 Civic Center Drive I 1 { i Poway, CA 92064 Citation Issuance Date: 1 L / / ((-% 858) 668-4600 An Inspection of th eVpremises located at 0/2- l y T o in the City of y (APN JoI/"- revealed violation or violations of the Poway Municipal Code (PMC). 2' I'T QU ; y, Name of Mail address: C1^ 1st CITATION101 0 2ND CITATION 200. 00 3RD CITATION 500. 00 4TH CITATION 1,000.00 CITATION 00 PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS YOU MAY BE CITED EACH DAY IF THE VIOLATION(S) CONTINUE(S). OTHER ENFORCEMENT ACTION AND PENALTIES MAY ALSO RESULT IF COMPLIANCE IS NOT ACHIEVED OR IF YOU CONTINUE TO IGNORE THIS CITATION. IF CORRECTED WITHIN DEADLINE, CONTACT OFFICER FOR INSPECTION BEFORE DEADLINE (FINE MAY BE WAIVED). FAILURE TO PAY FINE BY DEADLINE MAY RESULT IN 50 PERCENT PENALTY IMPOSED IN ADDITION TO ORIGINAL FINE AMOUNT. REVIEW THE INFORMATION ON THE BBACK SIDE OF THIS CITATION. DATE AND TIME OF VIOLATION(S): r2 ^ 6 `/ o 131?N PMC SECTION: DESCRIPTION: v U - NLAWr'U W [= C rZA-niXN SIGNATURE OF OFFICERPRINT NAME OF OFFICER DATE rJ, Ok x2 -7-4- 39 of 62 ATTACHMENT M D, - April 16, 2019, Item #4.1 ADMINISTRATIVE CITATION CITY OF POWAY Citation No. 646 DEPARTMENT: Development Services DIVISION: Code Compliance 13325 Civic Center Drive Poway, CA 92064 Citation Issuance Date: 858) 668- 4600 ) f ) An inspection of d pr missees loc ated at In the City of Po avii yAPN T a.f! ©rrevealed violation or violations of the Poway Municipal Code (PMC). , Name of Responsible Mail k) hfl 1st CITATION $ •100'60--- 2ND 00:60- 2ND CITATION $ X6600 3RD CITATION $ 500.00 4TH CITATION $1,000.00 CITATION $ _.00 PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS YOU MAY BE CITED EACH DAY IF THE VIOLATION(S) CONTINUE(S). OTHER ENFORCEMENT ACTION AND PENALTIES MAY ALSO RESULT IF COMPLIANCE IS NOT ACHIEVED OR IF YOU CONTINUE TO IGNORE THIS CITATION. IF CORRECTED WITHIN DEADLINE, CONTACT OFFICER FOR INSPECTION BEFORE DEADLINE (FINE MAY BE'NAIVED). FAILURE TO PAY FINE BY DEADLINE MAY RESULT IN 50 PERCENT PENALTY IMPOSED IN ADDITION TO ORIGINAL FINE AMOUNT, REVIEW THE N2 -'(r- INFORMATION / ON THE BACKSIDE OF THIS CITATION. DATE AND TIME OF VIOLATION(S): 19-7 ^ l `-e ( k PMC SECTION: DESCRIPTION: 6r- IJ U x CORRECTIVE ACTION TO BE COMPLETED BY: SI ATURE OF OFFICER PRINT NAME OF OFFICER DATE 1_r 40 of 62 April 16, 2019, Item #4.1 CITY OF POWAY NOTICE OF APPEAL and REQUEST FOR HEARING CITY OF POWAY eGe%\X-Q Customer Services Division I C1g Civic13325 CA Center Drive Gcv0K VP P c£e Poway, ATTENTION: Code Compliance Division I hereby appeal Citation No. fit- (0,4 S due the following reasons (complete written statement below): Refer to Back Side of This Document for Additional Writing Space and Information]" It is my desire to contest this Citation before an Administrative Hearing Officer. This appeal must be filed within FIFTEEN (15) DAYS from the issuance date on the Administrative Citation. In order to process this appeal the amount of the fine on the citation must first be deposited with the Customer Services Division of the City of Poway along with this NOTICE OF APPEAL, or a hardship affidavit must accompany this Notice of Appeal. My Deposit is made with this Notice in the sum of $ My Hardship affidavit is filed with this Notice. Today's Date l'1j Name of re of Appellant Telephone ` - G> J EmailC rc c»(AVVe-Ctip a -ti ,vv -A Street Apt. 41 of 62 City ATTACHMENT N Qi2 )(oq April 16, 2019, Item #4.1 Please attach more sheets as needed. Signature: Date: Date: THIS FORM MUSY BE SUBMITTED WITH)!FAYMENT OF THE CITATION(S) OR A COMPLETED HARDSHIP AFFIDAVIT" FORM. YOUR APPEAL REQUEST MAY BE DENIED WITHOUT THEM. Per Poway Municipal Code (PMC) Section 1.10.070(A): Any recipient of an administrative citation may contest that there was a violation of any ordinance, regulation, permit, entitlement, or agreement covered by this chapter, or that he or she is the responsible person by completing a request for hearing form and returning it to the City Clerk within 15 days from the issuance date of the administrative citation. The request for hearing shall be accompanied by a deposit in the amount of the fine orby a sworn affidavit together with documentation demonstrating to the satisfaction of the City Manager the person's actual financial inability to deposit the amount of the fine in advance of the hearing. Any administrative citation deposit shall be refunded within 10 days of a determination, after a hearing, that the person charged in the administrative citation was not responsible for the violation(s) or that there was no violation(s) as charged in the administrative citation. Notic:: Any Notice of Appeal and Request for Hearing received by City staff that contests a citation outside the scope defined in PMC Section 1.10.070(A) (above) may be denied if it is determined that the appeal request or appellant submitting the appeal request does, not have proper standing to dispute the ma$2r0grdi2 contesting on improper grounds. April 16, 2019, Item #4.1 HARDSHIP WAIVER AFFIDAVIT ADMINISTRATHIp Iff ION p COY 4 THE C. ; DEC QQ2 2018 CITATION NUMBER The undersigned declares: L EVEL PmENTSEFV CES That the undersigned submits the following affidavit in good faith pursuant to the authority of Poway Municipal Code section 1.10.070 in connection with the appeal of an Administrative Citation issued by the City of Poway in accordance with Poway Municipal Code Chapter 1.10. That the purpose of this affidavit is to demonstrate to the City of Poway that the undersigned dos not have the actual financial ability to deposit the amount of the fine in the sum of $30V Woosed by administrative citation issued to the undersigned on The undersigned does hereby solemnly swear or affirm as follows: That I do not have in cash or in a checking, savings, or other deposit account the above referenced sum; and 2. If the citation was issued to me as an employee or other representative of the lessee, operator, or owner of the Property; that the name of such person or company is ; and that that person or company does not have in cash or in a checking, savings, or other deposit account the above referenced sum; and 3. That I do not own any real property and do not otherwise have the financial means to deposit the above referenced sum. If called to testify in a court of law, I will testify that I have personal knowledge of the above stated facts and that those facts are true. Executed this day of 20 , at Poway, California. 4q . Print Name M!\planninglCitations\HardshipAffidavit.doo 6/02 43 of 62 April 16, 2019, Item #4.1 We are submitting this letter to inform you that as of of October 2018, we have filed for Chapter 11. We will not be able to complete any anticipated work at 13822 Northcrest Lane, Poway Ca 92064. The Chapter 11 will allow us the time needed to reorganize and plan accordingly for the upcoming years. This project combined with working with a civil engineer, soil engineer and the building department has hurt us financially, therefore we cannot accommodate this code issue at this time. It is our understanding that our funds were spent primarily on third parties. The delays that we experienced on fixing any issues, has delayed the overall process, therefore increased spending on all resubmitted plans. We have provided in good faith everything that was needed to finish putting the dirt back in its original place, 70% done, 30% unfinished. Year to date, we have spent $90K and the information that we have given the city is solid and accurate for the 30% that still needs to be completed. Poway's Building Department has seen what needs to be done. They have come to oversee what has been done and what needs to be done to complete the project. Unfortunately our current financial situation will not allow us to resume at this moment. We would like to stress that once our finances are stable and we have the opportunity to reorganize , we will have the ability to hire a new engineering firm to complete the job. This has been a very stressful situation for all involved. We moved here 3 years ago with the intent to build a new life in Poway. My kids have made new friends and have built a community with schools sports and club sports in Poway. We thought we would be able to provide ample space for our kids to hang out and gather with friends, but to our demise our children will not have the opportunity to see what could've have been. Thank you, Chris & Nellie Dougherty 44 of 62 ATTACHMENT 0 RF' Qak! D DEC 202.018 CITY OF POWAY F.VELOPMENT SERVICES April 16, 2019, Item #4.1 LAW OFFICES OF ENGEL 8 MILLER THOMAS S. ENGEL THE GRANGER BUILDING grvOREW J. MILLER 964 FIFTH AVENUE, SUITE 400 SAN DIEGO. CALIFORNIA 92101-6130 TELEPHONE 16191 544-1415 FAX 16191 544-1466 October 18, 2018 Christopher D. Dougherty Nereida I. Dougherty 1875 Erie Street San Diego, CA 92110 Re: Chapter 11 Bankruptcy Case No. 18 -06051 -LT 11 Dear Christopher & Nereida: Enclosed please find a copy of a letter I received today from the U.S. Trustee's Office that was sent to all of your Unsecured Creditors asking them if they want to serve on the Official Committee of Unsecured Creditors. Please review the enclosed to familiarize yourselves with their.role in the process. There may or may not be a Committee appointed in your case. It depends on whether any party actually wants to serve on the Committee. In many cases they do not. Please call me if you have any questions regarding the above. Thank you for your continuing cooperation. Sincere y, T OMAS S. ENGEL, ESQ. TSE/vv 45 of 62 ATTACHMENT P April 16, 2019, Item #4.1 o/i/1e U.S. Department of Justice United States Trustee, Region 15 Southern District of California 880 Front Sheet, Suite 3230 (519) 557-5013 San Diego, CA 92101 Fax (619) 557-5339 October 16, 2018 In re: CHRISTOPHER D. DOUGHERTY and NEREIDA I. DOUGHERTY Case No.: 18.06051-LT1 l Dear Creditor: The above-named debtor filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code, Section 1102(b) of the Bankruptcy Code authorizes the United States Trustee to appoint an Official Committee of Unsecured Creditors Committee"), and the debtor's petition or other sources of information indicate that you may be eligible for appointment to the Committee in this case. The Committee represents the interests, and acts on behalf, of all unsecured creditors. Members of the Committee are generally selected from the list of the twenty largest unsecured creditors. If you wish to be considered for membership on the Committee, please complete the enclosed Questionnaire and return it to the Office of the United States Trustee so that it is received no later than 10 days from the date of this letter. Return of the questionnaire, however, does not guaranty appointment to the Committee, only that you will be considered. If you do not wish to serve on the Committee, you do not need to return the form. The United States Trustee urges you to consider serving on the Committee. Under the Bankruptcy Code, the Committee has the right to demand that the debtor consult with the Committee before making major decisions or changes, to request the appointment of a trustee or examiner, to participate in the formation of a plan of reorganization, and in some cases, to propose its own plan of reorganization. If appropriate, the Committee may request that the Bankruptcy Court convert a chapter 1 I case to one under chapter 7, at which time the debtor's operations would cease and its assets would be liquidated. The Committee is authorized to select and employ an attorney and other necessary professionals, subject to court approval. Fees of professionals employed by the Committee may be paid from available assets, if any, of the bankruptcy estate after court approval. Further, Committee members' actual expenses may be reimbursed from estate assets. If we receive sufficient creditor interest in this solicitation, we may schedule a meeting or telephone conference for the purpose of forming a committee. If, however, a sufficient number of creditors do not elect to serve on the Committee, a Committee may not be formed and these rights may go unexercised. The Committee performs a vital role in chapter 11 reorganizations, and we hope that you will choose to participate. P03 46 of 62 Sincerely, TIFFANY ARROLL ACT T STATES TRUSTEE Kristin relic Trial Attorney for the Acting United States Trustee April 16, 2019, Item #4.1 U.S. Department of Justice United States Trustee, Region 15 Southern District of California 880 Front Street, Suite 3230 (619) 557-5013 San Diego, CA 92101 Fox (619) 557-5339 QUESTIONNAIRE In re: CHRISTOPHER D. DOUGHERTY and NEREIDA I. DOUGHERTY Case No.: 18-06051-LTI l QUESTIONNAIRE FOR OFFICIAL COMMITTEE OF UNSECURED CREDITORS[*] Please Tvne or Print Clearlv. I am willing to serve on a Committee of Unsecured Creditors. Yes( ) No( ) A. Unsecured Creditor's Name and Contact Information: Name Phone: Address: Fax: E-mail: B. Counsel (If Any) for Creditor and Contact Information: Name Phone: Address: Fax: E-mail: C. If you have been contacted by a professional person(s) (e.g., attorney, accountant, or financial advisor) regarding the formation of this committee, please provide that individual's name and/or contact information: D. Amount of Unsecured Claim (U.S. $) E. If your claim is against more than one debtor, list all debtors Note: This is not a proof ofclaim form. Proofofclaim forms are filed with the Clerk of the Bankruptcy Court, not with the United States 7Yustee 0 47 of 62 Page 1 of 3 April 16, 2019, Item #4.1 Describe the nature of your claim(s), i.e., whether arising from goods or services provided; loans made; litigation; etc., including whether any portion is secured. If secured, please describe the collateral securing the claim. If any portion of the claim(s) atises from litigation, please state the nature of the claim, the case number and jurisdiction (if applicable) and the status. G. Amount of Unsecured Claim entitled to I I U,S.C. §503(b) treatment as an administrative expense: H. Would your schedule permit you to actively participate on the committee by attending weekly meetings (either by telephone or in person)? Yes ( ) No ( ) Representations: I, Are you or the company you represent in any way "affiliated" with any of the debtors within the meaning of Section 10 1,(2) of the Bankruptcy Code, or a shareholder of, or related to, the debtor(s)? Yes () No () If a shareholder, state the number of shares: 2. Do you, or the company you represent, engage in a business which directly or indirectly competes with any of the businesses of the debtor(s)? Yes ( ) No ( ) 3. Have you ever been or are you an officer, director, agent, representative or employee of the debtor(s)? Yes (} No Does your claim arise from this relationship? Yes ( ) No ( ) 4. State when you acquired the claim, the amount paid, and the face amount of the claim: 5. Have you or your attorney entered into a settlement agreement with the debtor regarding resolution of your claim7 Yes( ) No( ) 6. Do you have a claim against any entity affiliated with the debtor? Yes () No ( ) State the name of the entity and the nature and amount of the claims: 7. Do you or any affiliated entities have any other claims against, or debt or equity securities of, the debtor(s)? Yes No( 8. Do you or any affiliated entities have any financial arrangement that may affect the value of your claim(s) against or interest(s) in the debtor(s) (e.g., personal guarantees, credit insurance, etc.)? Yes ( ) No ( ) 9. If you have given a proxy to a third party either to represent you at the creditors' committee formation meeting, or in connection with your claim, please attach a copy of the written proxy. If a professional person has arranged for someone to hold a proxy on your behalf, please identify that individual: You may attach a written statement to explain or supplement any responses. Page 2 of 3 48 of 62 April 16, 2019, Item #4.1 Creditors wishing to serve as fiduciaries on an official committee are advised that they may not purchase, sell or otherwise trade in or transfer claims against the debtor while they are committee members absent an order of the court on application of the creditor. PLEASE BE ADVISED THAT ONCE A COMMITTEE IS FORMED, THE UNITED STATES TRUSTEE WILL FILE A NOTICE OF APPOINTMENT IN THE COURT RECORD THAT CONTAINS CONTACT INFORMATION FOR ANY CREDITOR APPOINTED, INCLUDING THE CREDITOR'S NAME, ADDRESS, AND TELEPHONE NUMBER. Privacy Act Statement. 11 U.S.C. § 1102 authorizes the collection of this information. The information will be used by the United States Trustee to determine your qualifications for appointment to the Committee. Disclosure of this information may be to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties, or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures maybe made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST -001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http://www.justice.gov/ust/eo/rules_regulations/index.htm. Your disclosure of information is voluntary; however, failure to provide the requested information may result in the rejection of your application to be appointed to the Committee. I hereby certify that, to the best of my knowledge and belief, the answers to this Questionnaire are true and correct. By executing this Questionnaire, I also agree to the restrictions and conditions set forth in the preceding paragraphs and in the Committee Information Sheet, and I agree to provide the periodic certifications upon the request of the United States Trustee. Date: 49 of 62 Signature Print Name Title Page 3of3 April 16, 2019, Item #4.1 U.S. Department of Justice United States Trustee Southern District of California 880 Front Street, Suite 3230 (619) 557-5013 San Diego, CA 92101 F= (619) 557.5339 OFFICIAL COMMITTEE OF UNSECURED CREDITORS INFORMATION SHEET Purpose of Unsecured Creditors' Committees. To increase participation in the chapter 11 proceeding, section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors (the "Committee") as soon as practicable after the order for relief has been entered. The Committee ordinarily consists of the persons, willing to serve, who hold the seven (7) largest unsecured claims of the kinds represented on such committee. The debtor has filed a list indicating that your claim may be among the largest unsecured claims against the debtor, and for that reason, you may be eligible to serve on the Committee. There must be at least three (3) unsecured creditors willing to serve in order to form a Committee. Powers and Duties of Unsecured Creditors' Committees. Members of the Committee are fiduciaries who represent all unsecured creditors as a group without regard to the types of claims which individual unsecured creditors hold against the debtor. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform such other services as are in the interests of the unsecured creditors which it represents. Moreover, Federal Rule of Bankruptcy Procedure 2019, as amended, requires each member of an official committee to file a verified statement disclosing its name, its address, and the nature and amount of each "disclosable economic interest"' held in relation to the debtor on the date the committee was formed. Rule 2019 also requires the committee to file a verified supplemental statement updating the earlier information (if information previously disclosed has materially changed) when taking a position before the court or soliciting votes on a plan. Employment of Professionals. Section 1103 of the Bankruptcy Code provides that the Committee may, subject to the bankruptcy court's approval, employ one or more attorneys, accountants, or other professionals to represent or perform services for the Committee. The decision to employ particular professionals should occur at a scheduled meeting of the Committee where a majority of the Committee is present. All professionals retained by the Committee may be compensated from assets of the debtor's estate pursuant to section 330 of the Bankruptcy Code. Applications for the payment of professional fees may be monitored by the Office of the United States Trustee and are subject to the Court's approval. However, the Committee should carefully review all applications and not rely on the Court or the United States Trustee to discover and object to unreasonable or unnecessary professional fees or costs. Other Matters. The Committee should elect a chairperson and may adopt bylaws. As a party in interest, the Committee may be heard on any issue in the bankruptcy proceeding. Federal Bankruptcy Rule I "Disclosable economic interest" means any claim, interest, pledge, lien, option, participation, derivative instrument, or any other right or derivative right granting the holder an economic interest that is affected by the value, acquisition, or disposition of a claim or interest. 1 50 of 62 April 16, 2019, Item #4.1 2002(1) requires that the Committee (or its authorized agent) receive all notices concerning motions and hearings in the bankruptcy proceeding. In the event you are appointed to an official committee of creditors, the United States Trustee may require periodic certifications of your claims while the bankruptcy case is pending. Creditors wishing to serve as fiduciaries on any official committee are advised that they may not purchase, sell or otherwise trade in or transfer claims against the Debtor while they are committee members absent an order of the Court. By submitting the enclosed Questionnaire and accepting membership on an official committee of creditors, you agree to this prohibition. The United States Trustee reserves the right to take appropriate action, including removing a creditor from any committee, if the information provided in the Questionnaire is inaccurate, if the foregoing prohibition is violated, or for any other reason the United States Trustee believes is proper in the exercise of her discretion. You are hereby notified that the United States Trustee may share this information with the Securities and Exchange Commission if deemed appropriate. Privacy Act Statement. 11 U.S.C. § 1102 authorizes the collection of this information. The information will be used by the United States Trustee to determine your qualifications for appointment to the Committee. Disclosure of this information may be to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties, or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST -001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: ht(l)://www.iustice.gov/ustleo/rules regulations/index.htm. Your disclosure of information is voluntary; however, failure to provide the requested information may result in the rejection of your application to be appointed to the Committee, Should you have any additional questions concerning the Committee or your membership on the Committee, please contact the Office of the United States Trustee. 51 of 62 April 16, 2019, Item #4.1 11 USC §1103 1103, Powers and duties of committees. a) At a scheduled meeting of a committee appointed under section 1102 of this title, at which a majority of the members of such committee are present and with the court's approval, such committee may select and authorize the employment by such committee of one or more attorneys, accountants, or other agents to represent or perform services for such committee. b) An attorney or accountant employed to represent a committee appointed under section 1102 of this title may not, while employed by such committee, represent any other entity having an adverse interest in connection with the case. Representation of one or more creditors of the same class as represented by the committee shall not per ge constitute the representation of an adverse interest. c) A committee appointed under section 1 t02 of this title may --- 1) consult with the trustee or debtor in possession concerning the administration of the case: 2) investigate the acts, conduct, assets, liabilities, and financial condition of the debtor, the operation of the debtor's business and the desirability of the continuance of such business, and any other matter relevant to the case or to the formulation of a plan: 3) participate in the formulation of a plan, advise those represented by such committee of such committee's determinations as to any plan formulated and collect and file with the court acceptances or rejections of a plan: 4) request the appointment of a trustee or examiner under section 1104 of this title; and 5) perform such other services as are in the interest of those represented. d) As soon as practicable after the appointment of a committee under section 1102 of this title, the trustee shall meet with such committee to transact such business as may be necessary and proper. 62 of 62 April 16, 2019, Item #4.1 s'I'MIE V WS, mayor DAVE, GROSCI 1, Deputy mayor CAYLIN FRANK, Councilmember HARRY LEONARD, Councilmcmbcr JOT IN ibIULLIN, Councilmember January 30, 2019 CITY OF POWAY Property Owners J T A REAL ESTATE HOLDINGS LLC CHRISTOPHER D. DOUGHERTY 13822 NORTHCREST LN POWAY CA, 92064 Sent by regular and certified mail* Subject: Hardship Waiver Affidavit; Notice of Appeal and Request for Hearing for Citation No. 645 & 646; Case No. 17-0071 & 17-0074 Dear Mr. Dougherty, This letter is in response to your Notice of Appeal for Hearing and Hardship Waiver Affidavit. On your affidavit, you affirmed that you met the three criteria required to support a request for fee waiver. One of the criteria is that you may not own any real property. However, a review of the County Assessor's data indicates that you own property under APNs 524- 032- 01-00, 524-020- 27-00 and 278-442-43-00 (13822 Northcrest Ln.). Therefore, your request for hearing cannot be processed until you make a deposit equal to the fine of the citation you are appealing: Citation No. 645 and 646 issued on December 7, 2018, imposing a $100 penalty, per citation. You must remit the total amount of $200 at the City of Poway Customer Services Division located at 13225 Civic Center Drive, Poway, CA 92064, no later than five days from the date of this letter (February 4, 2019) in order for an appeal hearing to be scheduled. The 200 deposit would be refunded to you within ten days of determination, after the hearing, that you were not responsible for the violations or that there were no violations. Alternatively, if Citation 645 and 646 were upheld, your deposit would be forfeited as the fine for the citation. Should you have any questions, you may contact the assigned Code Compliance Officer, Daniel Welte, at (858) 668-4664 or dwelte@poway.org, or you may contact my office at (858) 668-4500. Sincerely Tina M. White City Manager City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074. 0789 www.poway.org 53 of 62 ATTACHMENT Q April 16, 2019, Item #4.1 4 Bill To 13325 Civic Center Drive Poway, CA 92064 JTA Real Estate Holdings LLC Christopher D Dougherty 13822 Northcrest Ln Poway, CA 92064 INVOICE Date Invoice No. 121612018 180791 Please make your check payable to the City of Poway Mail Payment To City of Poway Attn: Customer Services P.O. Box 789 Poway, CA 92074 General Information Email: customerservices@poway.org Web site; hilp://www.poway.org Terms: Due Date: See Due Date 12/6/2018 Description Amount Case #17-0071 Citation #645 100.00 Citation Issued: 12/7/2018 Payment due by: 12/260018 Fine Due: $100; add 50% penalty if paid after 12/26/2018 Property Owner and Mail Address: JTA Real Estate Holdings LLC 13822 Northcrest Ln Poway, CA 92054 Property Information: 13822 Northcrest Ln, Poway, CA Assessor's Parcel Number 2784424300 Additional information is attached. Your prompt payment is appreciated! City Hall Hours / 7:30 AM — 5:30 PM. Closed Every Other Friday For Details Visit: www.poway.org/houra Payments $0.00 Coding: 301030.73150 Reimbursable I Balance Due $100.00 PLEASE REMIT PAYMENT TO THE P.O. BOX NUMBER LISTED ABOVE. IF YOU ARE A RESIDENT OR BUSINESS IN POWAY, PLEASE AVOID USING THE P.O. BOX NUMBER LISTED ON YOUR CITY OF POWAY WATER BILL, REMITTANCE SENT TO THIS ADDRESS MAY CAUSE YOUR PAYMENT TO BE MISAPPLIED. PLEASE REFERENCE YOUR INVOICE NUMBER ON ALL CHECKS AND CORRESPONDENCE. 54 of 62 April 16, 2019, Item #4.1 0 E) Bill To 13325 Civic Center Drive Poway, CA 92064 JTA Real Estate Holdings LLC Christopher D Dougherty 13822 Northcrest Ln Poway, CA 92064 INVOICE Date Invoice No. 12/6/2018 180792 Please make your check payable to the City of Poway Mail Payment To City of Poway Attn: Customer Services P.O. Box 789 Poway, CA 92074 General Information Email: customerservices@poway.org Web site: http:/Awww.poway.org Terms: Due Date: See Due Date 12/6/2018 Description Amount Case 917-OD74 Citation 9646 100.00 Citation issued: 12/7/2018 Payment due by: 12/26/2018 Fine Due: $100; add 50% penalty if paid after 12126/2018 Property Owner and Mail Address: JTA Real Estate Holdings LLC 13822 Northcrest Ln Poway, CA 92064 Property Information: 13822 Northcrest Ln, Poway, CA Assessor's Parcel Number 2784424300 Additional information is attached. Your prompt payment is appreciated! City Hall Hours / 7:30 AM — 5:30 PM. Closed Every Other Friday For Details Visit: www.poway.org/hours Payments $0.00 Coding: 301030-73150 Reimbursable Balance Du $100.00 PLEASE REMIT PAYMENT TO THE P.O. BOX NUMBER LISTED ABOVE. IF YOU AREA RESIDENT OR BUSINESS IN POWAY. PLEASE AVOID USING THE P.O. BOX NUMBER LISTED ON YOUR CITY OF POWAY WATER BILL. REMITTANCE SENT TO THIS ADDRESS MAY CAUSE YOUR PAYMENT TO BE MISAPPLIED. PLEASE REFERENCE YOUR INVOICE NUMBER ON ALL CHECKS AND CORRESPONDENCE. 55 of 62 April 16, 2019, Item #4.1 uwmu -,,CEO D- -,. 56 of 62 ATTACHMENT R April 16, 2019, Item #4.1 Unperrnitted Addition noted by Assessor in 1975, no permit. Add ItIon built after 3980, no permits. d Built after 2(W no permit, later expanded by prop a rty a wn er. April 16, 2019, Item #4.1 1 err ,n S _ _ :.. yy ,9T"-- _ y I i s ._._ _ e_ H 4p „ f Y` fpN'' u F April 16, 2019, Item #4.1 10124110 b1 CFO O. Mr.0 59 of 62 April 16, 2019, Item #4.1 S'I FAT VAUS, Mayor CITY OF POWAY DANT OROSCI-1, Deputy Mayor CAYLIN IgRANK, Councilmembcr BARRY LEONARD, Councilmember JOI IN MULLIN, Councilmember CASE HISTORY APN: 278-442-43-00 CASE NUMBER: 17-0071 & 17-0074 DATE PREPARED: March 13, 2019 VIOLATION ADDRESS: 13822 Northcrest Ln. Poway, CA 92064 PROPERTY OWNER AND ADDRESS: J T A REAL ESTATE HOLDINGS LLC (Christopher D. Dougherty) 13822 Northcrest Ln. Poway, CA 92064 PMC VIOLATION(S) EXISTING TO THIS DATE: 8.60.141, 15.02.010,15.04.010, 16.56.020 and 16.56.040. DATE INVESTIGATION PMC SECTIONS WITNESS CHRONOLOGY VIOLATED Staff observed active grading 2/ 16/17 violation. Issued a Code Compliance 16. 56.020 16. 56.040 D. Welte topor Notice. 2/ 16/17 Property owner met with Jason J. Rivera Rivera, Engineering counter staff Code Compliance and Engineering Staff returned to property. Engineering staff issued an 2/17/17 Engineering Stop Work Notice for 16.56.020 D. Welte grading. Staff noted some evidence 16.56.040 J. Tolliver of new construction. Staff will research permit history and records for the property. Reviewed County and City permit 12/ 2/17 records, discovered building code 15.02.010 15.04.010 D. Welte violations. Owner attempted to submit plans for 2/21/17 new pool and pool house at permit M. Rocco counter but was denied due to radin violation lackingpermits. 2/27/17 Case transferred to Melody Rocco, M. Rocco Sr. Civil Engineer. D. Welte 60 of 62 City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074.0789 ATTACHMENT S April 16, 2019, Item #4.1 2/28/17 Present building permit research and D. Welte findings to Joseph Lim, City Planner. J. Lim Owner attempted to submit plans at 3/1/17 permit counter for retaining wall but M. Rocco was denied due to grading violation lacking permits. 3/1/17 Received Geotechnical engineering M. Rocco report for grading. 3/1/17 M. Rocco reviewed geotechnical report, sent response email. M. Rocco Courtesy Notice Letter regarding 8.60.010 3/1/17 buildingcode violations. 15.02.010 D. Welte 15.04.010 M. Rocco communicated with 3/27/17 grading engineer hired to draft M. Rocco grading plans. Code compliance Stop Work Notice 16.56.020 3/28/17 issued for retaining wall, directed 16.56.040 D. Welte owner to contact M. Rocco. 15.02.010 M. Rocco met with owner and 3/31/17 engineer to discuss grading plan M. Rocco review process and timeline for plan submittal. 4/14/17 Per engineer, plans will be submitted M. Rocco by April 19, 2017. 2nd Notice of Violation: Building4/18/17 Code. p, weite Grading plans submitted, 1St 4/19/17 submittal under review file #G17- M. Rocco 0006. Corrections for 1St submittal review 5/12/17 completed available. M. Rocco 8/16/17 2nd Notice of Violation: Building Code. D. Welte 10/4/17 2nd plan submittal under #G16-0006. M. Rocco 10/4/17 Corrections for 2nd submittal review M. Rocco completed and available. 10/19/19 Site visit, staff noted newly built RV 15. 02.010 J. Lim Carport. 15. 04.010 M. Rocco 8.60.010 11/8/17 Notice and Order: Building Code. 15. 02.010 FD Welte 15.04.010 61 of 62 April 16, 2019, Item #4.1 62 of 62 Site visit, carport removed. Noted a 16.56.020 2/18/18 new dirt pad created under the 16.56.040 D. Welte carport foot rint —grading violation. 15.02.010 Email to owner: resubmit 3rd revision 4/16/ 18 of plans within two weeks. IF M. Rocco IF—case transferred back to D. Welte, 5/1/18 enforcement to resume, per M. 16.56.020 M. Rocco 16.56.040 D. Welte Rocco. 5/ 2/18 1st Notice of Violation: Grading. I 16.56.020F D. Welte 16.56.040 Owner spoke with M. Rocco at 5/11/18 permit counter. Owner has hired a M. Rocco new engineer. 5/11/18 2nd Notice of Violation: Grading. 16. 56.020 D. Welte 16.56.040 8/14/18 Notice and Order: Grading. 16.56.020 16.56.040 D. Welte Recorded Notice of Violation against 16.56.020 10/3/18 title. Owner considering sale of 16.56.040 D. Welte 15.02.010 property. 15.04.010 D. Welte Joint site visit with property owner D. Devries 10/25/18 and Development Services staff. p M. Rocco T. Beach T.Johnson inistrative Citation: grading 16.56.020 n, $100. F 16.56.040 D. Welte inistrative Citation: building 15.02.010 iolations, $100. 15.04.010 Request of appeal for citations with 12/20/18 Hardship Waiver received. Citations D. Welte not paid. Hardship Waiver denied, owner notified. Citations must be paid by1/30/19 February 5, 2019 to proceed with D. Welte appeal. Staff met with City Attorney to D. Welte 2/ 5/19 discuss bankruptcy and enforcement D. Devries action for the case. R. Manis 2/ 5/19 Payment of citations received, $200. D. Welte 2/13/ 19 Notice of Scheduled Appeal Hearing D. Welte mailed to the property owner. 62 of 62 April 16, 2019, Item #4.1 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT April 16, 2019 Honorable Mayor and Members of the City Coun ,1ARobert Manis, Director of Development Services r \t David DeVries, City Planner \_)-q,\) (858)668-4604 / ddevries@poway.org APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED ____ _ RESOLUTION NO. Resolution Confirming that the Conditions on the Property at 13822 Northcrest Lane Constitute Violations of the Poway Municipal Code and Upholding the issuance of Administrative Citations by Code Compliance staff (Case No. 17-0071 & 17-0074), and Declaring that the Property Constitutes a "Public Nuisance" and Ordering the Property Owner to Abate the Violation, as well as authorizing legal action by the City Attorney. The hearing on this item is being held pursuant to Chapter 8. 72 and 1.10 of the Poway Municipal Code (PMC) for the purpose of determining whether the unapproved grading and unpermitted detached garage and home improvements on the property at 13822 Northcrest Lane (APN 278-442-43) constitute violations of the PMC and whether the Administrative Citations No. 645 and 646 should be upheld. The owner of the property is Christopher D. Dougherty (JTA Real Estate Holdings, LLC). Should the City Council find that violations on the subject property exist and that the appealed citations were lawfully issued, staff recommends that the City Council uphold the citations and declare that the property constitutes a public nuisance and order the property owner to abate the violation. Should the owner fail to timely remedy the public nuisance conditions, the City Attorney may move forward with appropriate legal action to bring the subject property into compliance. Other administrative code compliance remedies allowed in the PMC may occur in order to ensure compliance. Recommended Action: It is recommended that the City Council adopt the proposed Resolution (Attachment A) finding that the conditions on the property constitute violations of the PMC, upholding Administrative Citations (No. 645 & 646), declaring that the conditions on the prope rty constitute a public nuisance, ordering that the property owner abate the nuisance, and authorizing the City Attorney to initiate appropriate legal action if the owner fails to timely remedy the public nuisance conditions. Discussion On February 16, 2017, Code Compliance staff addressed a concern on an adjacent property related to fence height when staff observed dirt hauling trucks and heavy equipment operating at 13822 Northcrest Lane. A location map of the prope rty is included as Attachment 8. Upon further 1 of 62 April 16, 2019, Item #3.2 Code Compliance — 13822 Northcrest Lane April 16, 2019 Page 2 investigation, Code Compliance staff observed an extensive grading project in the rear and side yard, with movement, stockpiling and importation of dirt. Staff estimates there was approximately 1,000 cubic yards of earthwork conducted on-site without permits, including grading within an approximate 3,500 square feet area on the west side of the house, within an approximate 3,200 square feet area north of the house where the pool was demolished and within an approximate 1,000 square feet area off-site on the property to the adjacent north. Staff confirmed with Engineering Inspection staff that no permitted active grading projects were occurring on the subject property. Staff issued a Code Compliance Stop Work Notice for the unapproved grading activity (Attachment C) and a grading violation enforcement case was opened (Case No. 17- 0071). On February 17, 2017, Code Compliance and Engineering Inspection staff returned to the subject property to deliver a copy of an Engineering Stop Work Notice (Attachment D). While on-site, staff noted evidence of new construction and possible alterations to buildings on the property. Staff opened a separate enforcement case for investigation relating to the improvements to buildings on the property without permits (Case No 17-0074). Staff reviewed County and City building records. It was concluded that there were unpermitted improvements to the home, including remodel construction, additions and conversions of patio space to living areas. The Deputy Building Official noted fire, life and safety concerns associated with exiting from bedrooms into the unpermitted patio enclosure (direct access to outside required). Staff also noted evidence of a detached garage built without permits, which was later expanded without permits. Site conditions also indicated that the home's septic system was exposed through grading and improvements may have been done, and as a result, the County Department of Environmental Health requires a septic review and potentially a septic permit. Staff noted that a pool was built in 1976 under a County of San Diego permit. Aerial images also showed a pool in the rear yard, behind the home (Attachment E). Subsequent excavation activity associated with the unlawful grading appears to have eliminated the pool structure from the rear yard, and the extent of grading had impacted areas beyond the original footprint of the existing pool including areas onto a neighboring property. Staff did not find a corresponding pool demolition permit on file. Per building code, a demolition permit is required prior to demolition of a pool. On February 21, 2017, the property owner attempted to apply for permits to construct a new pool and pool house in the rear yard of the property. Staff denied the application and instructed the owner to make progress toward acquiring a grading permit to legalize the unpermitted grading prior to submitting for this new project. The PMC states that new permits for construction shall not be issued when a grading violation exists on the property (PMC Sections 15.02.080 and 16.56.050). On March 1, 2017, the property owner attempted to apply for a Building Permit for a retaining wall. Staff denied the application and instructed the owner to make progress toward acquiring a grading permit prior to submitting for this new project. The property owner provided a grading geotechnical engineering report to staff. The report dictated that the scope of the grading on the property was limited to a pool demolition. Staff reviewed the report and disagreed with its findings, as the actual site conditions conformed to that of a larger, and more extensive project than demolition of the existing pool (visible in aerial images). In an email communication with the property owner (Attachment F), staff stated the grading conditions did not conform with a pool demolition project, and Mr. Dougherty was instructed to submit plans for the unpermitted grading 2 of 62 April 16, 2019, Item #3.2 Code Compliance — 13822 Northcrest Lane April 16, 2019 Page 3 activity A grading permit application, G 17-0006, was received on April 19, 2017. Engineering staff conducted two reviews on April 19, 2017, and September 14, 2017. Reviews were promptly completed, and written correction responses were made available to the permit applicant Attachment G). To date, the corrections have not been addressed. Additional options were explored with Mr. Dougherty including restoring the grades back to original conditions. Code Compliance staff issued two Stop Work notices, two Notices of Violation and a Notice and Order to Abate Nuisance for the grading violation (Attachment H). For the building code violations, staff issued a Courtesy Notice letter, two Notices of Violation and a Notice and Order to Abate Nuisance (Attachment 1). After issuance of the Notice and Order to Abate Nuisance for grading, the property owner sent a written response to the Director of Development Services that detailed an explanation for the lack of progress toward grading permits (Attachment J). Among other claims, the owner stated that his finances were exhausted, and that he does not intend to proceed with progress toward permits. As this enforcement action progressed, staff noted several instances where the property's Stop Work condition was violated by new construction activity. On March 27, 2017, City staff noted construction of a retaining wall, and on October 19, 2017 a newly built carport. Upon being issued another Code Compliance Stop Work Notice for the retaining wall, the property owner contacted Engineering staff and subsequently received approval to proceed with completion of the retaining wall with limitations. City staff included a directive in the Notice and Order to Abate Nuisance (for building code violations) to remove the carport structure or acquire permits. Staff verified removal of the carport during a site inspection, but also noted that a new dirt pad was created in the location of the removed carport, which constituted a violation of the Stop Work condition for grading. On January 24, 2019, Code Compliance staff followed a dirt hauling truck and observed it delivering additional loads of imported fill dirt onto the property, which constituted another violation of the City imposed Stop Work condition for grading. Stop Work notices prohibit any work on the property that would require a permit until code violations are resolved, with some exceptions upon seeking prior approval from staff. On October 3, 2018, staff was made aware that the property owner was considering sale of his property. Due to the unresolved code violations on the property, staff recorded a Notice of Violation against the property title (Attachment K). A copy of the recorded notice was sent to the property owner by US Mail. In response to the recorded Notice of Violation, the property owner requested a meeting with staff. On October 24, 2018, Planning, Code Compliance, Engineering and Building Services staff met with the property owner on his property. The owner allowed a visual inspection of the conditions on his property and within his home, so that staff may fully ascertain the scope of necessary permits to clear the code violations on his property. A summary of code violation observations by Building Services staff was made available for this report (Attachment L). Determinations were facilitated by review of photos located on the internet from the most recent sales listing for the property, which detailed the original condition of the home and property, prior to the most recent remodeling and improvements. Additionally, visual observations by Engineering Staff discovered that the grading and excavation had likely crossed the northern property line and onto an adjacent property. The property owner was directed to consult a licensed engineer and designer and provide a revised timeline to submit plans and bring the property into compliance. To date, City 3 of 62 April 16, 2019, Item #3.2 Code Compliance — 13822 Northcrest Lane April 16, 2019 Page 4 staff has not received a timeline, despite conversations with Mr. Dougherty's contract engineer who showed an eager willingness to correct the violations with the appropriate plans and specifications. On December 7, 2018, Code Compliance staff issued two Administrative Citations: Citation No. 645,in the amount of $100 for the building code violations on the property, and Citation No. 646, also with a $100 fine amount, for the unlawful grading activity on the property (Attachment M). On December 20, 2018, the property owner submitted a written appeal request for the citations accompanied with a Hardship Waiver request form (Attachment N). Poway Municipal Code Chapter 1.10 requires that any request for appeal shall be accompanied with a full payment of the citation fine amount to Customer Services or the appellant may submit a Hardship Waiver to request an exception for the requirement to pay the citation fines prior to scheduling an appeal hearing. A written statement included with the appeal request informed staff that the owner would not continue resolving the code violations on his property due to financial constraints, and that Mr. Dougherty intends to initiate Chapter 11 bankruptcy proceedings (Attachment O). The property owner provided correspondence from his attorney as additional evidence of bankruptcy proceedings (Attachment P). The City Attorney has opined that the bankruptcy proceedings do not affect a City's ability to continue or initiate code compliance remedies and jurisdictions are allowed to exercise "police powers" to correct code violations in these situations. On January 29, 2019, the City Manager reviewed and denied the property owner's Hardship Waiver request, as Mr. Dougherty did not meet the minimum eligibility criteria (insufficient funds and/or no property ownership). A notice of denial letter was mailed to the property owner on January 30, 2019 (Attachment Q). The property owner submitted payment of the citations within the necessary deadline to allow for an appeal hearing. As some of the violations pertain to violations of California Building Code, the requested administrative appeal hearing must be heard by an "Appeals Board," and not a sole hearing officer or staff person. Poway Municipal Code Chapter 2.20 deems the City Council as the City's "Appeals Board." Accordingly, this hearing matter has been scheduled for City Council consideration and action. In addition to the appeal itself, staff further recommends that the City Council declare the property to be a public nuisance, which would enable the City to obtain inspection and abatement warranty without further City Council action. Other administrative code compliance remedies allowed in the PMC may occur in order to ensure compliance including administrative citations and fines, criminal citations and abatement of dangerous building proceedings. Case photographs are provided as Attachment R and a Case Chronology is provided as Attachment S. If the City Council should find that violations exist on the subject property, staff recommends that the City Council uphold staff's issuance of the Administrative Citations, declare that the property constitutes a public nuisance and order the property owner to abate the violations and bring the property into compliance. If the owner fails to timely remedy the public nuisance conditions, the City Council authorizes staff to secure an abatement warrant and abate the violations by civil action, receivership, criminal complaint, and/or use of abatement contractor, as well as additional Administrative Citations. All costs of the abatement and the City's enforcement actions will be recorded, itemized and, if the owner refuses or fails to timely reimburse the City for such expenses, staff will return to the City Council to confirm the costs and then lien the property or record a special assessment to recoup all of the City's costs and fees. 4 of 62 April 16, 2019, Item #3.2 Code Compliance — April 16, 2019 Page 5 13822 Northcrest Lane Environmental Review: This item is not a "Project' pursuant to the California Environmental Quality Act (CEQA) and is therefore not subject to CEQA review. Fiscal Impact: If abatement or legal action is conducted by the City, the costs/fees of the abatement, plus an administrative fee, will be assessed to the property owner via a lien and/or a special assessment. Public Notification: A public notice was published in the Poway News Chieftain on April 4, 2019 and a copy of this report was sent to the property owners. A copy of the notice was posted at the property. Attachments A. Resolution Upholding the Director's decision to issue a Notice and Order to Abate Nuisance (Pg. 6) B. Location Map (Pg. 10) C. Code Compliance Stop Work Notice — Grading (Pg. 11) D. Engineering Stop Work — Grading (Pg. 12) E. Aerial images of the property (Pg. 13) F. Engineering staff response to owner regarding geotechnical report (Pg. 15) G. Plan review correction notices to application, grading permit review G17-0006 (Pg. 16) H. Copy of Notices of Violation and Notice and Order—grading (Pg. 20) I. Copy of Courtesy Letter, Notices of Violation, and Notice and Order to Abate Nuisance building code violations (Pg. 24) J. Letter from owner to staff (Pg. 32) K. Notice of Violation recorded with the County Recorder (Pg. 33) L. Email from Building Services detailing building code violation observations (Pg. 38) M. Administrative Citations No. 645 and 646 (Pg. 39) N. Request for appeal and Hardship Waiver Affidavit (Pg. 41) O. Letter from property owner to staff with request for appeal (Pg. 44) P. Property owner attorney correspondence regarding bankruptcy (Pg. 45) Q. Notice of denial letter of Hardship Waiver (Pg. 53) R. Case photos (Pg. 56) S. Chronology of case (Pg. 60) Reviewed/Approved By: Wendy Kaserman Assistant City Manager 5 of 62 Reviewed By: Approved B : ` 5a Alan Fenstermacher Tina M. White City Attorney City Manager April 16, 2019, Item #3.2 RESOLUTION NO. P -19- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, FINDING AND DECLARING CONDITIONS PRESENT AT 13822 NORTHCREST LANE POWAY, CALIFORNIA CONSTITUTE VIOLATIONS OF THE POWAY MUNICIPAL CODE AND UPHOLDING DEVELOPMENT SERVICES DEPARTMENT'S DECISION TO ISSUE CITATIONS AND ORDERING THE PROPERTY OWNER TO ABATE NUISANCE WHEREAS, inspections of the premises at 13822 Northcrest Lane, Poway, California, with Assessor Parcel Number 278-442-43 ("Property') have been repeatedly conducted by City of Poway ("City') personnel; WHEREAS, said inspections reveal violations of the Poway Municipal Code exist on the Property; WHEREAS, City personnel have observed violations of Section 8.60.141, 15.02.010, and 15.02.040 of the Poway Municipal Code by failing to acquire the necessary permits and approvals for detached garage, home remodel, additions/conversions to home, and necessary septic reviews; WHEREAS, City personnel have observed violations of Sections 16.56.010 and 16.56.020 of the Poway Municipal Code by conducting grading activity and failing to obtain the necessary permits and approvals; WHEREAS, City personnel have observed a violation of Chapter 8.72 of the Poway Municipal Code by documenting multiple conditions that constitute a public nuisance, and may be declared by the City Council; WHEREAS, the City has made multiple attempts to obtain voluntary compliance from the Property owners, including issuing violation notices on March 29, 2017, April 18, 2017, August 17, 2017, May 2, 2018 and May 12, 2019, Notice and Orders to Abate Nuisance on November 8, 2018 and August 14, 2018, and Administrative Citations on December 7, 2018, demanding compliance; WHEREAS, the City has responded to the property owners request for an Appeal Hearing in response to the Administrative Citations; WHEREAS, Section 8.72.020 of the Poway Municipal Code defines a nuisance as follows: A "nuisance" includes but is not limited to the violation of any ordinance, resolution, regulation or policy adopted by the City Council, as defined within any such ordinance, resolution or policy, or any condition within the City found to be potential threat to the general health, safety and welfare of the public. WHEREAS, California Civil Code Section 3480 provides that "[a] public nuisance is one which affects at the same time an entire community or neighborhood, or any considerable 6 of 62 ATTACHMENT A April 16, 2019, Item #3.2 Resolution No. P -19 - Page 2 number of persons, although the extent of the annoyance or damage inflicted upon individuals may be unequal;" WHEREAS, California Health & Safety Code Section 17980.10 provides that upon the City Council adopting a Resolution determining that a property constitutes a public nuisance, the City acquires jurisdiction to abate any such violation; and WHEREAS, a public hearing was held before the City Council on April 16, 2019, where evidence has been presented before the City Council, and all interested parties were provided notice and an opportunity to be heard on the issue of whether the conditions present at the Property constitute ongoing violations of the Poway Municipal Code, and whether the conditions on the Property constitute a public nuisance. NOW, THEREFORE, based on the written documents and oral testimony presented at the hearing, the City Council of the City of Poway resolves as follows: Section 1: The City Council finds that this action is not subject to review under the California Environmental Quality Act (CEQA). The determination of a public nuisance is not a project in accordance with CEQA guidelines. Section 2: The foregoing recitals are true and correct, and the City Council so finds and determines. Section 3: The City Council denies the appeal and finds and declares that the Director of Development Services decision to issue Administrative Citations to the property owners was appropriate, justified and staff may continue enforcement action. Section 4: The City Council further finds and declares that the conditions on the Property described in the recitals each present a danger to the health, property, safety, and welfare of the public and therefore constitute a public nuisance as defined in California Civil Code section 3480 and the Poway Municipal Code: (1) failing to acquire the necessary permits and approvals for a detached garage, new additions of and conversions of patios to habitable areas, as well as home remodel construction; (2) failing to complete all necessary septic reviews triggered by new construction activity; and (3) failing to acquire all necessary permits for unapproved grading and excavation activity. Section 5: The City Council orders the owner of the Property to abate the nuisances within thirty (30) days by bringing the Property into compliance with the provisions of the Poway Municipal Code cited in the recitals. Following completion of the aforementioned corrective work and within the same thirty (30) day period, the owner of the Property shall have the City inspect the Property to verify compliance. Section 6: A copy of this resolution of the City Council affirming the issuance of the Notice and Order to Abate Nuisance and subsequent Administrative Citations and ordering abatement shall be served upon the owners of the Property. The service shall be made both by registered or certified mail, addressed to the owner at the last known address of the owner and by posting a copy on the Property. Any owner shall have the right to have the nuisances abated in accordance with this resolution at his or her own expense, provided the same is completed prior to the thirty -day abatement. 7 of 62 April 16, 2019, Item #3.2 Resolution No. P -19 - Page 3 Section 7: If the nuisances are not completely abated by the owner as directed within the thirty (30) day period, the City shall cause the same to be abated by any administrative action allowed by law including administrative citations, criminal complaint, civil action, seek a receivership remedy under court order, and/or by the City personnel or private contract, and the personnel or persons under contract are expressly authorized to enter upon the premises for such purposes. The owner of the premises shall be liable to the City for all costs of the abatement and/or legal action, including administrative costs. Section 8: In accordance with the provisions of Poway Municipal Code Chapter 8.72, the City Council directs City staff to maintain an itemized account of all costs incurred by the City in abating the nuisances, including all administrative and legal costs and expenses. City staff shall submit to the City Council for confirmation an itemized written report showing the costs. The City Council may modify the report if it is deemed necessary and shall then confirm the report by motion or resolution. Pursuant to Government Code sections 38773 and 38733.5, the total cost, fees, and expenses of abatement, including all administrative costs and attorney's fees, shall constitute a lien or a special assessment against that parcel and shall be collected in accordance with applicable State and City laws. 8 of 62 April 16, 2019, Item #3.2 Resolution No. P -19 - Page 4 PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway at a regular meeting held on the 16th day of April 2019. Steve Vaus, Mayor ATTEST: Faviola Medina, CMC, City Clerk STATE OF CALIFORNIA ) SS COUNTY OF SAN DIEGO ) I, Faviola Medina, City Clerk of the City of Poway, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 19- was duly adopted by the City Council at a meeting of said City Council held on the 16th day of April 2019, and that it was so adopted by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: Faviola Medina, CMC, City Clerk City of Poway 9 of 62 April 16, 2019, Item #3.2 R -B D -O Subject Location: 13822 Northcrest Lane APN 278-442-43 RR -C NORT-H_GRE-S-T- N S-2 N 1- 0 70 140 280 T Feet CITY OF POWAY Zoning / Location Map Item: Code Case 17-0071 & 17-0074 13822 Northcrest Lane APN 278-442-43 10 of 62 ATTACHMENT B April 16, 2019, Item #3.2 NOTICE City of Poway Development Services Department Code Compliance 13325 C' is Center Drive, Poway CA 92064 STOP WORK: Permits have been issued for work being done. ermit required before work can resume. CORRECT WORK: as described below, see corrective action required. Date: //1 l n_ Address/APN: (,S ` NoE7 t ( N i Code Compliance Officer: , CeL (858) 668- k T S PROJECT IS IN VIOLATION OF THE FOLLOWING:: Poway Municipal Code Violation /& (`9 , dl//I011 3 , 29' 656 ' 10. to70 0 ES Stormwater Ordinance No Building Permit Q Tree Removal without City Approval Q Commercial Landscape Removal without City Approval Other. Please Contact ,p , at (858) 668 - Q G 11 of 62 ATTACHMENT C April 16, 2019, Item #3.2 DATE:j NOTICE PROJECT: PROJECT #: ADDRESS: IQd STOP WORK A?N a-17-1-7 a1B1IN 2113 OC) Stop all other work until erosion control/NPDES deficiencies noted below are corrected. CORRECT WORK Correct noted deficiencies within the specified time frame to avoid a Stop Work Notice: 24 Hours 72 Hours X5 Days Prior to October 1st (Other,o)() 0 tai%n THIS PROJECT IS IN CONFLICT WITH THE FOLLOWING: City of Poway Grading Ordinance' Other: Clnti 1( cT, . I—L THE AREAS OF CONFLICT ARE: KErosion control is not on site Erosion control is inadequate Other (ic tz,., .")-' XCity of Poway JURMP Erosion control is not per the approved plan Failure to maintain erosion/sediment control device THE FOLLOWING DEFICIENCIES ARE NOTED: Stabilized construction entrance Runoff from the site Desilting basin OPerimeter protection at toe of slope Waste/materials storage Cover on sloped and/or flat areas that are inactive for more than 10 days Other Wo/'k k1as t)e-eet a C9 c4our r r THIS WTICE WAS ISSUED TO: CC: /City Engineer DATE/TIME: a17- 7 /a 2Sr. Civil Engineer BY: ti i cr Eng. Inspect. Supvr. TITLE: C 1 Lead Inspector PHONE: 1 kOFs K8 Code Compliance Building Management Assistant IF YOU HAVE FURTHER QUESTIONS, PLEASE RWQCB CALL THE CITY OF POWAY'S DEVELOPMENT SERVICES DEPARTMENT AT (858) 668-4668. Having deficiencies in your erosion control is a violation of the City of Poway Grading Ordinance. A violation of the City of Poway's Grading Ordinance is a misdemeanor. Each separate day or portion thereof on which a violation exists or is allowed to exist shall constitute a separate offense punishable by the provisions of the Ordinance. 12 of 62 ATTACHMENT D April 16, 2019, Item #3.2 r. 2OAEWOCgymVfNLVW 4- 1EW b Q CLvmN0 N r 2u 9 s { ry l l u C7L Nw r Qn0N b Q CLvmN 0 N April 16, 2019, Item #3.2 aU O L ` w c O c N b CL O CL U i a a y. a4J , U f O r4 T Ea CL v April 16, 2019, Item #3.2 Melody Rocco From: Melody Rocco Sent: Wednesday, March 1, 2017 8:56 AM To: cndougherty@att.net' Cc: Ralph Jeffery' Subject: 13822 Northcrest Lane Attachments: Picturel jpg; Picture2.jpg; Picture3jpg; 2012 Aerial Image.pdf Chris, I read through the Geotech report that was provided and reviewed the site photos. The geotech report indicates fills approaching 4 feet but as you can see in picture 1, the cut far exceeds 4 feet. The attached aerial image from 2012 showing the pool located at the northeast corner of the house. The attached photos showing grading across the entire north side of the house. Based upon the report, the aerial image, and the photos, I cannot agree that the work conducted was solely for a pool demo. You will need to apply for and obtain a grading permit and fully complete construction of the approved grading permit prior to issuance of any other permits. The permit application will need to include a geotech report that fully addresses the grading that has occurred as well as the proposed finished site. You have 45 days to submit for your grading permit. Thanks, Melody Melody Rocco, PE Senior Civil Engineer Development Services Department 858-668-4653 (new phone number) mrocco@ooway.ora 15 of 62 ATTACHMENT F April 16, 2019, Item #3.2 STEVE, VAUS, IMayor CITY OF POWAY BARRY I.HONARD, Dcpuh, Mayor JIM CUNNINGHAM, Councilmember DAVE GROSC:I I, Councilmember JOI IN MULLIN, Councilmember May 12, 2017 Mark Fisher 333 Orange Avenue #41 Coronado, CA 92118 RE: Dougherty Grading, G17-0006 Dear Mr. Fisher The City has completed the 1a1 review of the grading plans for the Dougherty Grading project (G17-0006). The following items will need to be addressed prior to approval of plans: Grading Plan 1. Plans must be signed and stamped. 2. Provide a Preliminary Title Report (PRT) with copies of all exceptions. 3. Show and reference all easements as listed in the PRT. 4. The line types and hatching shown in plan view must match those shown on the legend. 5. Show the limits of grading (daylight line) 6. All retaining wall must be shown as "per separate permit' 7. Show the location of the proposed wall cross sections 8. Call out the proposed distance between the wall and the property line in the sections to verify that the walls will be built entirely within the property. 9. Provide labels on all proposed contours. Drainage Report 10. The proposed hydrologic work map must clearly distinguish between the different drainage basins and the proposed flow path. 11. Provide an existing hydrologic work map. 12. The project must provide mitigation measure for the increase in peak flow run off or provide additional discussion that elaborates on how downstream facilities will not be effected by the increase in stormwater runoff. Water Quality Requirements 13. The applicant must provide documentation showing that the project meets water quality and flow control requirements per the Poway BMP Design Manual. Please provide the following forms: a. Form 1-1 Applicability of Permanent Post Construction BMPs b. Form 1-2 Project Type Determination C. Form 1-3 (Depending on the outcome of the previous forms) City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074-0789 www.poway.org 16 of 62 ATTACHMENT G April 16, 2019, Item #3.2 Mark Fisher G17-0006 May 12, 2017 Planning Comments 14. Retaining walls shall be constructed with decorative block or be covered in stucco and painted to match the color of the home or other walls on the property. Please note on plans. 15. Please be aware that the retaining walls, which have a walking or driving surface adjacent to the top of the retaining wall, shall be equipped with an open and decorative metal railing on the top of the retaining wall for safety as deemed necessary by the City Building Official. The building code requires a minimum 42". Please show the railing and provide a typical elevation of the retaining wall and metal railing combination. 16. To increase the readability of the grading plans, please use different line weights to help differentiate between existing and proposed elevation contours and pavement areas. 17. Please use the correct Assessor's Parcel Number: 278-442-43 18. Please note if any trees are being removed. A Tree Removal permit is required if a Coast Live Oak or a California Sycamore will be removed. 19. Please list the average natural slope (pre -development) of the site. Please see the redlined plans, drainage study, and cost estimate for additional comments. Feel free to contact me via phone at (858) 668-4653 or via email at mrocco Poway.orq to discuss any of the comments listed above or on the redline plans. Sincerely, DEVELOPMENT SERVICES DEPARTMENT 4 Melody e,P Senior Civil Engineer 17 of 62 April 16, 2019, Item #3.2 11 STEVE VAUS, Mayor CITY OF POWAY BARRY LEONARD, Deputy Mayor JIM CUNNINGHAM, Councilmember DAVE GROSCH, Coundru mber JOHN MULLIN, Councitmember October 4, 2017 Mark Fisher 333 Orange Avenue #41 Coronado, CA 92118 RE: Dougherty Grading, G17-0006 Dear Mr. Fisher The City has completed the 2nd review of the grading plans for the Dougherty Grading project (G17-0006). The following items will need to be addressed prior to approval of plans: Grading Plan 1. Provide labels on all proposed contours. (2nd request) 2. Show the location of all proposed wall cross sections. (20d request) 3. The proposed storm drain shown on sheet 4 must also be shown on sheet 3. (2nd request) Drainage Report 4. The project must show the change in Q100 between pre- & post -condition for each discharge location. 5. Back up calculations shall be provided to confirm that the proposed "flatter" condition will mitigate the increase in Q100. This should be accounted for in the hydrologic and Tc calculations. Water Quality Requirements 6. The applicant must provide all water quality documents for a standard SWQMP per the Poway BMP Design Manual. Please provide the following forms: o Form 1-4 Source Control BMP Checklist o Form 1-5 Site Design BMP Checklist Please see the redlined plans, drainage study, and storm water forms for additional comments. Feel free to contact me via phone at (858) 668-4653 or via email at mroccoCbPoway. org to discuss any of the comments listed above or on the redline plans. Sincerely, 1plavffM -I T,- • iPE Senior Civil Engineer City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074-0789 www.poway.org 18 of 62 April 16, 2019, Item #3.2 From: Melody Rocco To: %ndouoherty0attnet" Cc: Daniel Welte Subject: G17-0006; Code Case 17-0071 Date: Monday, April 16, 2018 3:24: 00 PM Attachments: Additional Deposit 2017.11.15.odf Mr. Dougherty, It has been more than six months since activity on processing your grading permit has occurred. The last round of comments was provided October 4, 2017. Please consider this email as notice that you must provide progress on your grading permit application, within two weeks (by April 30, 2018), by resubmitting plans and all other requested resubmittals. If you do not resubmit, your code case will be elevated to the next step through our Code Enforcement division. Please note, we will also require the additional plan review deposit funds required to complete the required review. For reference, please see attached additional deposit request mailed to you in November 2017. Thanks, Melody Melody Rocco, PE Senior Civil Engineer Development Services Deportment 858-668-4653 mlocco0a PQWQV. ora 19 of 62 April 16, 2019, Item #3.2 STBVBVAUS, Mayor CITY OF POWAY C4, JOHN MIJIJ,[N, Deputy Mayor CAYLIN FRANK, Councilmcmber DAVE CROSCI-I, Counedmember BARRY LEONARD, Counedmcmber .d{ Sent via USPS certified mail, first class mail and posted NOTICE AND ORDER TO ABATE NUISANCE The City's records reveal that you own, occupy, possess or otherwise have an interest in the property identified below. You are hereby informed that the Director of Development Services, as designee of the City Manager of the City of Poway, has determined that condition(s) exist on your property that pose a threat to the general health, safety and welfare of the public and that these are deemed violation(s) contrary to the Poway Municipal Code (PMC). Specifically, the condition on your property violates the below -referenced PMC. As a result of the violation(s), the property Is deemed a public nuisance requiring abatement. Said property is located at 13822 Northcrest Ln., in the City of Poway. J T A REAL ESTATE HOLDINGS LLC CHRISTOPHER D. DOUGHERTY 13822 NORTHCREST LN POWAY CA, 92064 APN 2784424300 Case #17-0071 The following violation(s) of law has or have been determined to pose a threat to the general health, safety and welfare of the public and constitute a nuisance at the property. VIOLATION(S) Poway Municipal Code Section 16.56. 010 - Unlawful to violate grading regulations, grading without permits. Poway Municipal Code Section 16.56.020 —Violations of City grading regulations are a public nuisance. CORRECTIVE ACTIONS: Make progress toward issuance of grading permit for unapproved grading activity on your property. Obtain all required permits and complete all required inspections with a "pass" result. As you know, the City of Poway has previously sent you two (2) Notices of Violation on these matters, in addition to other communications. Despite these Notices, the City has inspected your property and determined that violations continue to exist. You are hereby ordered to take the above described corrective action within thirty (30) days from the date of this Notice and Order. City Hatt Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074.0789 www.poway.org 20 of 62 ATTACHMENT H April 16, 2019, Item #3.2 Notice and Order — 13822 Northcrest Ln. — Case #17-0071 August 14, 2018 Page 2 You are hereby further advised of your right to an administrative hearing on this determination where you may present evidence in your defense. Said hearing must be requested in writing to the City Manager, within ten (10) days of the date the City mailed this notice to you. You are also hereby notified that if violation(s) listed herein are not abated within the time specified, the City may abate the nuisance and charge you the cost/fees of the abatement, including administrative costs, attorneys' fees and reasonable interest for unpaid costs/fees thereof, Moreover, if the costs of abatement are not timely reimbursed to the City, such amounts may be assessed against the property and may be placed on the property's tax bill, Additionally, pursuant to PMC section 1.08.010, if the aforementioned violation(s) or condition(s) constituting a nuisance is/are not brought into compliance in a timely manner, you could also be subject to a charge for a separate offense for each and every day during which this/these violation(s) is/are continued, or the City could initiate a civil action (e.g., seeking injunctive relief or a receivership), a criminal action, and/or issue of administrative citations for these continuing violations. We are providing you a notice that "in accordance with Sections 17274 and 24436.5 of the Revenue and Taxation Code, a tax deduction may not be allowed for interest, taxes, depreciation, or amortization paid or incurred in the taxable year" for any property that is deemed a public nuisance. California Health & Safety Code § 17980(d).) Moreover, we are hereby providing you notice that is unlawful for a lessor to retaliate against a lessee pursuant to Section 1942.5 of the Civil Code for reporting a violation. Thank you for the anticipated cooperation in this matter. Should you have questions regarding this matter, please contact Code Compliance Officer Daniel Welte at 858-668-4664 or dwelteeooway.oro. Dated: August 14, 2018 CITY ZOFWAY 7/Lf G/ BV Rob€rt U. Manis, Director of D1ev ropment Services APPROVED AS TO FORM: 01410 A7vu-- Alan Fenstermacher, City Attorney Attached: PMC Section 16.56.010, 16.56.020, and 16.56.040 21 of 62 April 16, 2019, Item #3.2 srr,-,,US, bLayur CITY OF P OWAY BARRY LEONARD, Dcpug' Mayan JIM CUNNINGHAM, Councilmcmber DAVIT GROSCI1, COnnclbnember J01 IN MULLIN, Councihnember May 12, 2018 SECOND NOTICE OF VIOLATION Property Owners J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY CA, 92064 SUBJECT: Unapproved grading at 13822 Northcrest Ln. Poway, CA 92064; APN 2784424300 Case Number: 17-0071 Dear Property Owner, 0 01111 C( IN THE C The City has been made aware of unapproved grading in violation of PMC Section 16.56.010, 16.56. 020, and 16,56.040 (Attachment 1). You are required to complete the following corrective measures within ten (10) days from the date of this letter: 1. Make progress toward issuance of grading permit for unapproved grading activity on your property. Failure to correct the violation(s) by the required date may result in issuance of Administrative Citation, double permit fees, withholding of any permit or project, revocation of permits, recordation of Notice of Violation against the property, Imposition of lion against the property, Nuisance Abatement Proceedings and/or referral to the City Attorney. I appreciate your cooperation in resolving this matter. If you have any questions, please contact my office at (858) 668-4664 or dwelte@poway.org. Respectfully, DEVELOPMENT SERVICES DEPARTMENT XanielWalte,ode ompliance Officer Attachments: PMC Section 16.56.010, 16.56.020, and 16.56.040 22 of 62 April 16, 2019, Item #3.2 UENE: VAUS, Mayor CITY OF POWAY BARRY I,EONARD, Deputy Mayo, I I IN CUNNINGI [AM, Councilmember DAVE GROSCPI, COlmcillnember JOI-IN NIULLIN, CounciLnembec May 2, 2018 NOTICE OF VIOLATION Property Owners J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY CA, 92064 SUBJECT: Unapproved grading at 13822 Northcrest Ln. Poway, CA 92064; APN 2784424300 Case Number: 17-0071 Dear Property Owner, OF POW'9Y idCm' 1N THE BOJ The City has been made aware of unapproved grading in violation of PMC Section 16.56.010, 16.56. 020, and 16.56.040 (Attachment 1). You are required to complete the following corrective measures within ten (10) days from the date of this letter: 1. Make progress toward issuance of grading permit for unapproved grading activity on your property. Failure to correct the violation(s) by the required date may result in issuance of Administrative Citation, double permit fees, withholding of any permit or project, revocation of permits, recordation of Notice of Violation against the property, imposition of lien against the property, Nuisance Abatement Proceedings and/or referral to the City Attorney. I appreciate your cooperation in resolving this matter. If you have any questions, please contact my office at (858) 668-4664 or dwelte@poway.org. Respectfully, D VELOPMENT SERVICES DEPARTMENT Xamelelt"odeompliance Officer Attachments: PMC Section 16.56.010, 16.56.020, and 16.56.040 23 of 62 April 16, 2019, Item #3.2 STEVE VAUS, Mayor CITY OF POWAY HARRY LEONARD, Deputy Mayor C4- JIM CUNNINGHAM, Coundmcmber DAVE GROSCH, Councilmember JOHN MULLIN, Councitmember ` 4t Sent via USPS certified mail and first class mail NOTICE AND ORDER TO ABATE NUISANCE You are hereby informed that the Director of Development Services, as designee of the City Manager of the City of Poway, has determined that condition(s) exist on your property that pose a threat to the general health, safety and welfare of the public and that these are deemed violation(s) contrary to the Poway Municipal Code (PMC). Specifically, the condition on your property violates requirements for building permits and approvals. As a result of these violations. the orouerty is deemed a public nuisance requiring abatement. Said property is located at 13822 Northcrest Ln, in the City of Poway. J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY, CA 92064 Assessor's Parcel Number 2784424300 Case # 17-0074 The following violations of law have been determined to pose a threat to the general health, safety and welfare of the public and constitute a nuisance at the property: VIOLATIONS: PMC Chapter 15.02 — Unlawful to violate technical codes, building, plumbing and mechanical. PMC Chapter 15. 04 — Permits, inspections and final approval required for all construction. PMC Section 8.60.141 — Permit required to construct or repair septic system. CORRECTIVE ACTIONS: Property owner must complete the following action for violation within ten (10) days from the date of this Notice and Order: 1. Obtain all required permits for unpermitted improvements to home, including detached garage, car port/shade structure, home additions/alterations/modifications, new underground plumbing/gas and electrical. 2. Obtain all required permits for repairs or modifications to septic. As you know, the City of Poway has previously sent you two (2) Notices of Violation on these matters on April 18, 2017 and August 17, 2017 (Attachment 1). The past Notices 24 of 62 ATTACHMENT I April 16, 2019, Item #3.2 Notice and Order — J T A REAL ESTATE HOLDINGS LLC 11/08/ 17 Page 2 of Violations sent to you informed you of your responsibility to correct the violations that exist on the property and that are described in this Notice and Order to Abate Nuisance. This violation continues to exist on the property based on on-going visual inspections conducted by the City's Code Compliance Staff. The City has informed you that it is responsible for enforcing all provisions of Title 15 and 8 of the PMC. You are hereby ordered to take the above described corrective action within ten (10) days from the date of this Notice and Order or, alternatively, and within the same period of time, to bring this property into conformity with the requirements of Chapter 15.02, 15.04 and Section 8.60.141 of Poway Municipal Code (PMC) (Attachment 2). You are hereby advised of your right to an administrative hearing on this determination before the City Manager or designated employee, where you may present evidence in your defense. Said hearing must be requested, in writing to the City Manager within ten (10) days of the date the City mailed this notice to you. You are also hereby notified that if said nuisance is not abated within the time specified by the City, the City may abate the nuisance and charge the cost of the abatement, including administrative costs thereof and reasonable interest therefor, from the date of said abatement, to you. Moreover, if the City's costs of abatement are not reimbursed to the City, such amounts shall be assessed to the property. Additionally, in accordance with General Penalty provisions of PMC, Section 1.06.010, if the aforementioned violations or conditions constituting a nuisance are not brought into compliance, you could also be subject to a charge for a separate offense for each and every day during which this violation is continued, a civil action by the City seeking remedies under state and federal law, and/or the issuance of citations under the City's administrative citation process. Should you have any questions regarding this matter, please contact Code Compliance Officer Daniel Welte at (858) 668-4664 or dwelte@poway.org. Thank you for your anticipated cooperation in this matter. Dated: November 8, 2017 CITYOF OWAY By /I lxf.-, Rob rt . Manis, ret D elopment Services APfjROVED AS TO FORM: Morg fi L. oley, City ttorney Attached: 1. Past Notice of Violation Letters 2. PMC Chapter 15.02,15.04 and Section 8.60.141 25 of 62 April 16, 2019, Item #3.2 s'mvuVAUS,Mayor CITY OF POWAY of HARRY 1.IS0NARD, Deputy Mayor JIM CUNNINGI IAM, Councilmember DAVE, GROSCI 1, Councdmember JOI IN MULLIN, Councilmember eye ,., Q7y 1N THE C August 17, 2017 SECOND NOTICE OF VIOLATION J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY, CA 92064 Subject: Additions, alterations to home and new structure 13822 Northcrest Ln, Poway, CA 92064; APN 2784424300; Case Number: 17-0074 Dear Property Owner, It has come to the attention of the City of Poway that improvements on your property located at 13822 Northcrest Ln, Poway, CA 92064 do not have building permits. Specifically, the detached garage at the west end of your home, additions to your home, septic repair activity, underground plumbing/gas installation and underground electrical construction. Photos are attached for orientation. This is a violation of the followine Powav Municipal Code (PMCI Sections: 1. 15.04.010 — Building permits required; final approval of construction required. 2. 15.02.010 —Unlawful to violate building, plumbing, mechanical and technical codes. 3. 8.60.141— Permit required to construct or repair septic tank. You are required to complete the following corrective measures within ten (10) days from the date of this letter: Obtain all required permits for unpermitted improvements to home, including detached garage, home additions, new underground plumbing/gas and electrical OR, restore home to original design with permits. 2, Obtain all required permits for repairs or modifications to septic. Failure to correct the violation(s) by the required date may result in issuance of Administrative Citation, double permit fees, recordation of Notice of Violation against the property, imposition of lien against the property, Nuisance Abatement Proceedings and/or referral to the City Attorney. 26 of 62 April 16, 2019, Item #3.2 I appreciate your cooperation in resolving this matter. If you have any questions, please contact Daniel Welte at (858) 668-4664 or dwelte@poway.org. Respectfully, DEVELOPMENT SERVICES DEPARTMENT Daniel Welte Code Compliance Officer 27 of 62 April 16, 2019, Item #3.2 STEVE VAUS, Mayor CITY OF POWAY C* OFBARRYLEONARD, Deputy MayorJIMCUNNINGHAM, Councdmember DAVE GROSCH, Councilmember JOHN MULLIN, Councilmember. cOV April 18, 2017 FIRST NOTICE OF VIOLATION J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCRESTLN POWAY, CA 92064 Subject: Additions, alterations to home and new structure 13822 Northcrest Ln, Poway, CA 92064; APN 2784424300; Case Number: 17.0074 Dear Property Owner, It has come to the attention of the City of Poway that Improvements on your property located at 13822 Northcrest Ln, Poway, CA 92064 do not have building permits. Specifically, the detached garage at the west end of your home, additions to your home, septic repair activity, underground plumbing/gas installation and underground electrical construction. Photos are attached for orientation. This is a violation of the following Poway Municipal Code (PMC) Sections: 1. 15.04.010 — Building permits required; final approval of construction required. 2. 15.02.010 —Unlawful to violate building, plumbing, mechanical and technical codes. 3. 8.60.141— Permit required to construct or repair septic tank. You are required to complete the following corrective measures within ten (10) days from the date of this letter: 1. Obtain all required permits for unpermitted improvements to home, including detached garage, home additions, new underground plumbing/gas and electrical OR, restore home to original design with permits. 2. Obtain all required permits for repairs or modifications to septic. Failure to comply may result In Issuance of an Administrative Citation or referral of this matter to the City Attorney. 28 of 62 April 16, 2019, Item #3.2 appreciate your cooperation in resolving this matter. If you have any questions, please contact Daniel Welte at (858) 668-4664 or dwelte@poway.org. Respectfully, DEVELOPMENT SERVICES DEPARTMENT Daniel Welte Code Compliance Officer Photos 29 of 62 April 16, 2019, Item #3.2 STEVE VAUS,Mayor CITY OF POWAY BARRY IXONARD, Dcputy Msyor I IM CUNNINGI-IAib1, Cuuncilmcmbcr DANT, GROSCI-I, Councilmember Jof [N MULLIN, Councilmcmber March 29, 2017 Courtesy Notice J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY, CA 92064 Subject: Additions, alterations to home and new structure 13822 Northcrest Ln, Poway, CA 92064; APN 2784424300; Case Number: 17-0074 Dear Property Owner, G`ty OF OWgr 1 y THE GOJ P It has come to the attention of the City of Poway that improvements on your property located at 13822 Northcrest Ln, Poway, CA 92064 may not have building permits. Specifically, the detached garage at the west end of your home, additions to your home, septic repair activity, underground plumbing/gas installation and underground electrical construction, Photos are attached for orientation. Please provide evidence that these improvements are being constructed or were completed under construction permits within ten (10) days from the date of this letter. I appreciate your cooperation in resolving this matter. If you have any questions, please contact Daniel Welte at (858) 668-4664 or dwelte@poway.org. Respectfully, DEVELOPMENT SERVICES DEPARTMENT LP4;7 Code Compliance Officer 30 of 62 April 16, 2019, Item #3.2 v 9 1;3P72 ho lllctesl in ib-_y , _ 1111 1 1 Ii Aad1o,chpuut0ee. 1Rdp rdgigrtrwta April 16, 2019, Item #3.2 To: Robert Manis Director Of Development Services I am writing to explain the situation we find ourselves in since we moved in 3 years ago. We originally hired an engineer to help us plan for a pool in the future. The property was old a needed a lot of attention. We initially didn't know that there was a pool built in the backyard but after talking to neighbors and such we were told that the previous owners had buried the bottom of the pool improperly. Demo permit filed $5000 by existing home owners San Diego Pools verified information San Diego Pools asked that we pot hole the property where we wanted the pool, to see if the previous owners had removed the pool properly, which they didn't Once we found out that their was water in the pool , we chiseled out the pool remains and hired a soils engineer to help with the process. We also hired an engineer to help with the Layout of the backyard. As we removed the pool remains, the engineer was preparing plans to summit to the city of Poway. The engineer completed the 1 st draft of plans for Poway. Corrections were requested. Corrections were made and submitted. Corrections were requested again. Corrections were made and submitted. Corrections were requested again. Each time corrections were requested, there was a cost. After several attempts over the course of 2 years. We have exhausted our finances and have to stop any progress on the plans. We no longer have plans to build a pool in the back yard. If you have any questions please do not hesitate to call us at either my cell (858)945-5145 or my husbands cell (858)945.5139. Thank you, Chris 8 Nellie Dougherty 32 of 62 ATTACHMENT J April 16, 2019, Item #3.2 o CITY OF POWAY NOTICE OF VIOLATION ON REAL PROPERTY No Documentary Transfer Tax Due) The real property located in the City of Poway, County of San Diego, State of California, described as follows: 13822 Northcrest Ln. Poway, CA 92064 APN: 278- 442-43-00 Said property is located in the City of Poway. Property owner's name and address: J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY CA, 92064 The City Manager's designee has determined that the property having the above legal description has had improvements to the property, without valid permits being first obtained. This is in violation of the Poway Municipal Code as listed below: Poway Municipal Code, Ch. 15.02,15.04; Sections 13.09.070(A)(1), 13.09.070 (A)(5), 16.56. 010, 16.56.020, and 16.56.040. (Cases 17-0071, 17-0073 and 17-0074) The record owner of the Property has been duly notified, and given an opportunity to correct the violation. Approved as to form: 1 Alan Fenstermacher City Attomey City of Poway 33 of 62 City of Poway ATTACHMENT K DOC# 2018-0411843 RECORDING REQUEST BY: ) IIIIIIIIIIIIIIIIINIIIIIIIIIIIIIIIIIIIIIIINIIIVIIIIIIIIpIIIUNIIII CITY OF POWAY ) Oct 03, 2018 11:16 AM, WHEN RECORDED MAIL TO: ) OFFICIAL RECORDS CITY CLERK ) Ernest J. Dronenburg, Jr., CITY OF POWAY ) SAN DIEGO COUNTY RECORDER P.O. BOX 789 FEES: $0.00 (SB2Atkins: $0.00) POWAY, CA 92074-0789 ) PAGES: 5 This space for Recorder's Use Only) 278-442-43-00 Gov. Code §27281.5 CITY OF POWAY NOTICE OF VIOLATION ON REAL PROPERTY No Documentary Transfer Tax Due) The real property located in the City of Poway, County of San Diego, State of California, described as follows: 13822 Northcrest Ln. Poway, CA 92064 APN: 278- 442-43-00 Said property is located in the City of Poway. Property owner's name and address: J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY CA, 92064 The City Manager's designee has determined that the property having the above legal description has had improvements to the property, without valid permits being first obtained. This is in violation of the Poway Municipal Code as listed below: Poway Municipal Code, Ch. 15.02,15.04; Sections 13.09.070(A)(1), 13.09.070 (A)(5), 16.56. 010, 16. 56.020, and 16.56.040. (Cases 17-0071, 17-0073 and 17-0074) The record owner of the Property has been duly notified, and given an opportunity to correct the violation. Approved as to form: 1 Alan Fenstermacher City Attomey City of Poway 33 of 62 City of Poway ATTACHMENT K April 16, 2019, Item #3.2 STERE, VAUS, Mayor CITY OF POWAY P JOHN MULLIN, Deputy Mayor CAYLIN PRANK, Councilmember DAV F GROSCH, Coundmember BABRY LEONARD, Counalmember IN THE GdJ Sent via USPS certified mail, first class mail and posted NOTICE AND ORDER TO ABATE NUISANCE The City's records reveal that you own, occupy, possess or otherwise have an interest in the property identified below. You are hereby informed that the Director of Development Services, as designee of the City Manager of the City of Poway, has determined that condition(s) exist on your property that pose a threat to the general health, safety and welfare of the public and that these are deemed violation(s) contrary to the Poway Municipal Code (PMC). Specifically, the condition on your property violates the below -referenced PMC. As a result of the violation(s), the property is deemed a public nuisance reauirina abatement. Said property is located at 13822 Northcrest Ln., in the City of Poway. J T A REAL ESTATE HOLDINGS LLC CHRISTOPHER D. DOUGHERTY 13822 NORTHCREST LN POWAY CA, 92064 APN 2784424300 Case 917-0071 The following violation(s) of law has or have been determined to pose a threat to the general health, safety and -welfare of the public and constitute a nuisance at the property. VIOLATION(S) Poway Municipal Code Section 16.66.010 - Unlawful to violate grading regulations, grading without permits. Poway Municipal Code Section 16.66.020— Violations of City grading regulations are a public nuisance. CORRECTIVE ACTIONS: Make progress toward issuance of grading permit for unapproved grading activity on your property. Obtain all required permits and complete all required inspections with a "pass" result. As you know, the City of Poway has previously sent you two (2) Notices of Violation on these matters, in addition to other communications. Despite these Notices, the City has inspected your property and determined that violations continue to exist. You are hereby ordered to take the above described corrective action within thirty (30) days from the date of this Notice and Order. City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074.0789 www.poway.org 34 of 62 April 16, 2019, Item #3.2 Notice and Order — 13822 Northcrest Ln. —Case #17-0071 August 14, 2018 Page 2 You are hereby further advised of your right to an administrative hearing on this determination where you may present evidence in your defense. Said hearing must be requested in writing to the City Manager, within ten (10) days of the date the City mailed this notice to you. You are also hereby notified that if violation(s) listed herein are not abated within the time specified, the City may abate the nuisance and charge you the cost/fees of the abatement, including administrative costs, attorneys' fees and reasonable interest for unpaid costs/fees thereof. Moreover, if the costs of abatement are not timely reimbursed to the City, such amounts may be assessed against the property and may be placed on the property's tax bill. Additionally, pursuant to PMC section 1.08.010, if the aforementioned violation(s) or conditions) constituting a nuisance is/are not brought into compliance in a timely manner, you could also be subject to a charge fora separate offense for each and every day during which this/these violation(s) is/are continued, or the City could initiate a civil action (e.g., seeking injunctive relief or a receivership), a criminal action, and/or issue of administrative citations for these continuing violations. We are providing you a notice that "in accordance with Sections 17274 and 24436.5 of the Revenue and Taxation Code, a tax deduction may not be allowed for interest, taxes, depreciation, or amortization paid or incurred in the taxable year" for any property that is deemed a public nuisance. California Health & Safety Code § 17980(d).) Moreover, we are hereby providing you notice that is unlawful for a lessor to retaliate against a lessee pursuant. to Section 1942.5 of the Civil Code for reporting a violation. Thank you for the anticipated cooperation in this matter. Should you have questions regarding this matter, please contact Code Compliance Officer Daniel Welte at 858-668-4664 or dwelte atoway.ora. Dated: August 14, 2018 CITY ZOFVWAY l B Rob rt b. Mania, Di " ctor of qevefopment Services APPROVED AS TO FORM: X vvt_- Alan Fenstermacher, City Attorney Attached: PMC Section 16. 56.010, 16. 56.020, and 16.56.040 35 of 62 April 16, 2019, Item #3.2 STEVE VAUS, Mayor CITY OF POWAYD BARRY LEONARD, Deputy Mayor G JIM CUNNINGHAM, Couudirnember DAVE GROSCH, CouncUmember JOHN MULLIN, Counciimember fie'cJ — I coo Sent via USPS certified mail and first class mail NOTICE AND ORDER TO ABATE NUISANCE You are hereby informed that the Director of Development Services, as designee of the City Manager of the City of Poway, has determined that condition(s) exist on your property that pose a threat to the general health, safety and welfare of the public and that these are deemed violation(s) contrary to the Poway Municipal Code (PMC). Specifically, the condition on your property violates requirements for building permits and approvals. As a result of these violations, the property is deemed a public nuisance requiring abatement Said property is located at 13822 Northcrest Ln, in the City of Poway. J T A REAL ESTATE HOLDINGS LLC 13822 NORTHCREST LN POWAY, CA 92064 Assessor's Parcel Number 2784424300 Case # 17-0074 The following violations of law have been determined to pose a threat to the general health, safety and welfare of the public and constitute a nuisance at the property: VIOLATIONS: PMC Chapter 15.02 — Unlawful to violate technical codes, building, plumbing and mechanical. PMC Chapter 15.04 — Permits, inspections and final approval required for all construction. PMC Section 8.60.141— Permit required to construct or repair septic system. CORRECTIVE ACTIONS: Property owner must complete the following action for violation within ten (10) days from the date of this Notice and Order: 1. Obtain all required permits for unpermitted improvements to home, including detached garage, car port/shade structure, home additions/alterations/modifications, new underground plumbingigas and electrical. 2. Obtain all required permits for repairs or modifications to septic. As you know, the City of Poway has previously sent you two (2) Notices of Violation on these matters on April 18, 2017 and August 17, 2017 (Attachment 1). The past Notices 36 of 62 April 16, 2019, Item #3.2 Notice and Order — J T A REAL ESTATE HOLDINGS LLC 11/08/17 Page 2 of Violations sent to you informed you of your responsibility to correct the violations that exist on the property and that are described in this Notice and Order to Abate Nuisance. This violation continues to exist on the property based on on-going visual inspections conducted by the City's Code Compliance Staff. The City has informed you that it is responsible for enforcing all provisions of Title 15 and 8 of the PMC. You are hereby ordered to take the above described corrective action within ten (10) days from the date of this Notice and Order or, alternatively, and within the same period of time, to bring this property into conformity with the requirements of Chapter 15.02, 15.04 and Section 8.60.141 of Poway Municipal Code (PMC) (Attachment 2). You are hereby advised of your right to an administrative hearing on this determination before the City Manager or designated employee, where you may present evidence in your defense. Said hearing must be requested, in writing to the City Manager within ten (10) days of the date the City mailed this notice to you. You are also hereby notified that if said nuisance is not abated within the time specified by the City, the City may abate the nuisance and charge the cost of the abatement, including administrative costs thereof and reasonable interest therefor, from the date of said abatement, to you. Moreover, if the City's costs of abatement are not reimbursed to the City, such amounts shall be assessed to the property. Additionally, in accordance with General Penalty provisions of PMC, Section 1.08.010, if the aforementioned violations or conditions constituting a nuisance are not brought into compliance, you could also be subject to a charge for a separate offense for each and every day during which this violation is continued, a civil action by the City seeking - remedies under state and federal law, and/or the issuance of citations under the City's administrative citation process. Should you have any questions regarding this matter, please contact Code Compliance Officer Daniel Welte at (858) 668-4664 or dwelte@poway.org. Thank you for your anticipated cooperation in this matter. Dated: November B. 2017 CITY 7OFWAY By Rob rt . Manis,ret D elopment Services AP ROVED AS TO FORM: Morg L. -ola} , City ttorney Attached: 1. Past Notice of Violation Letters 2. PMC Chapter 15.02,15.04 and Section 8.60.141 37 of 62 April 16, 2019, Item #3.2 Daniel Welte From: Trish Johnson Sent: Tuesday, March 19, 2019 3:57 PM To: Daniel Welte Subject: RE: Joint inspection at 13822 Northcrest Ln Hi Dan, When we were on location of 13822 Northcrest Ln. I noted the following building violations: An addition has been done to the garage with electrical without permits The kitchen has been remodeled without permits A patio cover has been enclosed to a game room/teen room adjoining 2 bedrooms without permits. By doing this the 2 bedrooms no longer have the required egress windows or doors to the exterior in case of an emergency. It appears work has been done to the septic tank and possibly the leach lines A pool was demoed without permits A patio cover was converted to a dining area/nook without permits A reroof and new siding was done without permits Please let me know if you need any additional information or having any questions. Trish Johnson Field Supervisor 13325 Civic Center Drive Poway, CA 92064 858.668.4648 858.668.1211 FAX tiohnson@poway.ore Building Counter Hours: Monday - Thursday: 7:30-11: 30, 12:30-5:30, CLOSED for lunch 11:30-12: 30 Friday (Closed every other Friday): 8:00-11:30, 12:30-5:00, CLOSED for lunch 11:30-12:30 Please see www.powoy.ora for a schedule of open/closed Fridays and other City of Poway holidays. From: Daniel Welte Sent: Wednesday, March 13, 2019 8:01 AM To: Trish Johnson <TJohnson@poway.org> Subject: Joint inspection at 13822 Northcrest Ln Hi Trish, Would you kindly summarize your building code violation observations during ourjoint site visit with the property owner on October 24, 2018. Daniel Welte Code Compliance Officer I Development Services, Poway P 1858) 66&9664 F [898) 668 1260 1 r?w IteG rxiw y o g 38 of 62 ATTACHMENT L April 16, 2019, Item #3.2 ADMINISTRATIVE CITATION CITY OF POWAY Citation No. DEPARTMENT: Development Services DIVISION: Code Compliance 645iiD17- 6 '-k I 13325 Civic Center Drive I 1 { i Poway, CA 92064 Citation Issuance Date: 1 L / / ((-% 858) 668-4600 An Inspection of th eVpremises located at 0/2- l y T o in the City of y (APN JoI/"- revealed violation or violations of the Poway Municipal Code (PMC). 2' I'T QU ; y, Name of Mail address: C1^ 1st CITATION101 0 2ND CITATION 200. 00 3RD CITATION 500. 00 4TH CITATION 1,000.00 CITATION 00 PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS YOU MAY BE CITED EACH DAY IF THE VIOLATION(S) CONTINUE(S). OTHER ENFORCEMENT ACTION AND PENALTIES MAY ALSO RESULT IF COMPLIANCE IS NOT ACHIEVED OR IF YOU CONTINUE TO IGNORE THIS CITATION. IF CORRECTED WITHIN DEADLINE, CONTACT OFFICER FOR INSPECTION BEFORE DEADLINE (FINE MAY BE WAIVED). FAILURE TO PAY FINE BY DEADLINE MAY RESULT IN 50 PERCENT PENALTY IMPOSED IN ADDITION TO ORIGINAL FINE AMOUNT. REVIEW THE INFORMATION ON THE BBACK SIDE OF THIS CITATION. DATE AND TIME OF VIOLATION(S): r2 ^ 6 `/ o 131?N PMC SECTION: DESCRIPTION: v U - NLAWr'U W [= C rZA-niXN SIGNATURE OF OFFICERPRINT NAME OF OFFICER DATE rJ, Ok x2 -7-4- 39 of 62 ATTACHMENT M D, - April 16, 2019, Item #3.2 ADMINISTRATIVE CITATION CITY OF POWAY Citation No. 646 DEPARTMENT: Development Services DIVISION: Code Compliance 13325 Civic Center Drive Poway, CA 92064 Citation Issuance Date: 858) 668- 4600 ) f ) An inspection of d pr missees loc ated at In the City of Po avii yAPN T a.f! ©rrevealed violation or violations of the Poway Municipal Code (PMC). , Name of Responsible Mail k) hfl 1st CITATION $ •100'60--- 2ND 00:60- 2ND CITATION $ X6600 3RD CITATION $ 500.00 4TH CITATION $1,000.00 CITATION $ _.00 PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS PAY WITHIN 15 DAYS YOU MAY BE CITED EACH DAY IF THE VIOLATION(S) CONTINUE(S). OTHER ENFORCEMENT ACTION AND PENALTIES MAY ALSO RESULT IF COMPLIANCE IS NOT ACHIEVED OR IF YOU CONTINUE TO IGNORE THIS CITATION. IF CORRECTED WITHIN DEADLINE, CONTACT OFFICER FOR INSPECTION BEFORE DEADLINE (FINE MAY BE'NAIVED). FAILURE TO PAY FINE BY DEADLINE MAY RESULT IN 50 PERCENT PENALTY IMPOSED IN ADDITION TO ORIGINAL FINE AMOUNT, REVIEW THE N2 -'(r- INFORMATION / ON THE BACKSIDE OF THIS CITATION. DATE AND TIME OF VIOLATION(S): 19-7 ^ l `-e ( k PMC SECTION: DESCRIPTION: 6r- IJ U x CORRECTIVE ACTION TO BE COMPLETED BY: SI ATURE OF OFFICER PRINT NAME OF OFFICER DATE 1_r 40 of 62 April 16, 2019, Item #3.2 CITY OF POWAY NOTICE OF APPEAL and REQUEST FOR HEARING CITY OF POWAY eGe%\X-Q Customer Services Division I C1g Civic13325 CA Center Drive Gcv0K VP P c£e Poway, ATTENTION: Code Compliance Division I hereby appeal Citation No. fit- (0,4 S due the following reasons (complete written statement below): Refer to Back Side of This Document for Additional Writing Space and Information]" It is my desire to contest this Citation before an Administrative Hearing Officer. This appeal must be filed within FIFTEEN (15) DAYS from the issuance date on the Administrative Citation. In order to process this appeal the amount of the fine on the citation must first be deposited with the Customer Services Division of the City of Poway along with this NOTICE OF APPEAL, or a hardship affidavit must accompany this Notice of Appeal. My Deposit is made with this Notice in the sum of $ My Hardship affidavit is filed with this Notice. Today's Date l'1j Name of re of Appellant Telephone ` - G> J EmailC rc c»(AVVe-Ctip a -ti ,vv -A Street Apt. 41 of 62 City ATTACHMENT N Qi2 )(oq April 16, 2019, Item #3.2 Please attach more sheets as needed. Signature: Date: Date: THIS FORM MUSY BE SUBMITTED WITH)!FAYMENT OF THE CITATION(S) OR A COMPLETED HARDSHIP AFFIDAVIT" FORM. YOUR APPEAL REQUEST MAY BE DENIED WITHOUT THEM. Per Poway Municipal Code (PMC) Section 1.10.070(A): Any recipient of an administrative citation may contest that there was a violation of any ordinance, regulation, permit, entitlement, or agreement covered by this chapter, or that he or she is the responsible person by completing a request for hearing form and returning it to the City Clerk within 15 days from the issuance date of the administrative citation. The request for hearing shall be accompanied by a deposit in the amount of the fine orby a sworn affidavit together with documentation demonstrating to the satisfaction of the City Manager the person's actual financial inability to deposit the amount of the fine in advance of the hearing. Any administrative citation deposit shall be refunded within 10 days of a determination, after a hearing, that the person charged in the administrative citation was not responsible for the violation(s) or that there was no violation(s) as charged in the administrative citation. Notic:: Any Notice of Appeal and Request for Hearing received by City staff that contests a citation outside the scope defined in PMC Section 1.10.070(A) (above) may be denied if it is determined that the appeal request or appellant submitting the appeal request does, not have proper standing to dispute the ma$2r0grdi2 contesting on improper grounds. April 16, 2019, Item #3.2 HARDSHIP WAIVER AFFIDAVIT ADMINISTRATHIp Iff ION p COY 4 THE C. ; DEC QQ2 2018 CITATION NUMBER The undersigned declares: L EVEL PmENTSEFV CES That the undersigned submits the following affidavit in good faith pursuant to the authority of Poway Municipal Code section 1.10.070 in connection with the appeal of an Administrative Citation issued by the City of Poway in accordance with Poway Municipal Code Chapter 1.10. That the purpose of this affidavit is to demonstrate to the City of Poway that the undersigned dos not have the actual financial ability to deposit the amount of the fine in the sum of $30V Woosed by administrative citation issued to the undersigned on The undersigned does hereby solemnly swear or affirm as follows: That I do not have in cash or in a checking, savings, or other deposit account the above referenced sum; and 2. If the citation was issued to me as an employee or other representative of the lessee, operator, or owner of the Property; that the name of such person or company is ; and that that person or company does not have in cash or in a checking, savings, or other deposit account the above referenced sum; and 3. That I do not own any real property and do not otherwise have the financial means to deposit the above referenced sum. If called to testify in a court of law, I will testify that I have personal knowledge of the above stated facts and that those facts are true. Executed this day of 20 , at Poway, California. 4q . Print Name M!\planninglCitations\HardshipAffidavit.doo 6/02 43 of 62 April 16, 2019, Item #3.2 We are submitting this letter to inform you that as of of October 2018, we have filed for Chapter 11. We will not be able to complete any anticipated work at 13822 Northcrest Lane, Poway Ca 92064. The Chapter 11 will allow us the time needed to reorganize and plan accordingly for the upcoming years. This project combined with working with a civil engineer, soil engineer and the building department has hurt us financially, therefore we cannot accommodate this code issue at this time. It is our understanding that our funds were spent primarily on third parties. The delays that we experienced on fixing any issues, has delayed the overall process, therefore increased spending on all resubmitted plans. We have provided in good faith everything that was needed to finish putting the dirt back in its original place, 70% done, 30% unfinished. Year to date, we have spent $90K and the information that we have given the city is solid and accurate for the 30% that still needs to be completed. Poway's Building Department has seen what needs to be done. They have come to oversee what has been done and what needs to be done to complete the project. Unfortunately our current financial situation will not allow us to resume at this moment. We would like to stress that once our finances are stable and we have the opportunity to reorganize , we will have the ability to hire a new engineering firm to complete the job. This has been a very stressful situation for all involved. We moved here 3 years ago with the intent to build a new life in Poway. My kids have made new friends and have built a community with schools sports and club sports in Poway. We thought we would be able to provide ample space for our kids to hang out and gather with friends, but to our demise our children will not have the opportunity to see what could've have been. Thank you, Chris & Nellie Dougherty 44 of 62 ATTACHMENT 0 RF' Qak! D DEC 202.018 CITY OF POWAY F.VELOPMENT SERVICES April 16, 2019, Item #3.2 LAW OFFICES OF ENGEL 8 MILLER THOMAS S. ENGEL THE GRANGER BUILDING grvOREW J. MILLER 964 FIFTH AVENUE, SUITE 400 SAN DIEGO. CALIFORNIA 92101-6130 TELEPHONE 16191 544-1415 FAX 16191 544-1466 October 18, 2018 Christopher D. Dougherty Nereida I. Dougherty 1875 Erie Street San Diego, CA 92110 Re: Chapter 11 Bankruptcy Case No. 18 -06051 -LT 11 Dear Christopher & Nereida: Enclosed please find a copy of a letter I received today from the U.S. Trustee's Office that was sent to all of your Unsecured Creditors asking them if they want to serve on the Official Committee of Unsecured Creditors. Please review the enclosed to familiarize yourselves with their.role in the process. There may or may not be a Committee appointed in your case. It depends on whether any party actually wants to serve on the Committee. In many cases they do not. Please call me if you have any questions regarding the above. Thank you for your continuing cooperation. Sincere y, T OMAS S. ENGEL, ESQ. TSE/vv 45 of 62 ATTACHMENT P April 16, 2019, Item #3.2 o/i/1e U.S. Department of Justice United States Trustee, Region 15 Southern District of California 880 Front Sheet, Suite 3230 (519) 557-5013 San Diego, CA 92101 Fax (619) 557-5339 October 16, 2018 In re: CHRISTOPHER D. DOUGHERTY and NEREIDA I. DOUGHERTY Case No.: 18.06051-LT1 l Dear Creditor: The above-named debtor filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code, Section 1102(b) of the Bankruptcy Code authorizes the United States Trustee to appoint an Official Committee of Unsecured Creditors Committee"), and the debtor's petition or other sources of information indicate that you may be eligible for appointment to the Committee in this case. The Committee represents the interests, and acts on behalf, of all unsecured creditors. Members of the Committee are generally selected from the list of the twenty largest unsecured creditors. If you wish to be considered for membership on the Committee, please complete the enclosed Questionnaire and return it to the Office of the United States Trustee so that it is received no later than 10 days from the date of this letter. Return of the questionnaire, however, does not guaranty appointment to the Committee, only that you will be considered. If you do not wish to serve on the Committee, you do not need to return the form. The United States Trustee urges you to consider serving on the Committee. Under the Bankruptcy Code, the Committee has the right to demand that the debtor consult with the Committee before making major decisions or changes, to request the appointment of a trustee or examiner, to participate in the formation of a plan of reorganization, and in some cases, to propose its own plan of reorganization. If appropriate, the Committee may request that the Bankruptcy Court convert a chapter 1 I case to one under chapter 7, at which time the debtor's operations would cease and its assets would be liquidated. The Committee is authorized to select and employ an attorney and other necessary professionals, subject to court approval. Fees of professionals employed by the Committee may be paid from available assets, if any, of the bankruptcy estate after court approval. Further, Committee members' actual expenses may be reimbursed from estate assets. If we receive sufficient creditor interest in this solicitation, we may schedule a meeting or telephone conference for the purpose of forming a committee. If, however, a sufficient number of creditors do not elect to serve on the Committee, a Committee may not be formed and these rights may go unexercised. The Committee performs a vital role in chapter 11 reorganizations, and we hope that you will choose to participate. P03 46 of 62 Sincerely, TIFFANY ARROLL ACT T STATES TRUSTEE Kristin relic Trial Attorney for the Acting United States Trustee April 16, 2019, Item #3.2 U.S. Department of Justice United States Trustee, Region 15 Southern District of California 880 Front Street, Suite 3230 (619) 557-5013 San Diego, CA 92101 Fox (619) 557-5339 QUESTIONNAIRE In re: CHRISTOPHER D. DOUGHERTY and NEREIDA I. DOUGHERTY Case No.: 18-06051-LTI l QUESTIONNAIRE FOR OFFICIAL COMMITTEE OF UNSECURED CREDITORS[*] Please Tvne or Print Clearlv. I am willing to serve on a Committee of Unsecured Creditors. Yes( ) No( ) A. Unsecured Creditor's Name and Contact Information: Name Phone: Address: Fax: E-mail: B. Counsel (If Any) for Creditor and Contact Information: Name Phone: Address: Fax: E-mail: C. If you have been contacted by a professional person(s) (e.g., attorney, accountant, or financial advisor) regarding the formation of this committee, please provide that individual's name and/or contact information: D. Amount of Unsecured Claim (U.S. $) E. If your claim is against more than one debtor, list all debtors Note: This is not a proof ofclaim form. Proofofclaim forms are filed with the Clerk of the Bankruptcy Court, not with the United States 7Yustee 0 47 of 62 Page 1 of 3 April 16, 2019, Item #3.2 Describe the nature of your claim(s), i.e., whether arising from goods or services provided; loans made; litigation; etc., including whether any portion is secured. If secured, please describe the collateral securing the claim. If any portion of the claim(s) atises from litigation, please state the nature of the claim, the case number and jurisdiction (if applicable) and the status. G. Amount of Unsecured Claim entitled to I I U,S.C. §503(b) treatment as an administrative expense: H. Would your schedule permit you to actively participate on the committee by attending weekly meetings (either by telephone or in person)? Yes ( ) No ( ) Representations: I, Are you or the company you represent in any way "affiliated" with any of the debtors within the meaning of Section 10 1,(2) of the Bankruptcy Code, or a shareholder of, or related to, the debtor(s)? Yes () No () If a shareholder, state the number of shares: 2. Do you, or the company you represent, engage in a business which directly or indirectly competes with any of the businesses of the debtor(s)? Yes ( ) No ( ) 3. Have you ever been or are you an officer, director, agent, representative or employee of the debtor(s)? Yes (} No Does your claim arise from this relationship? Yes ( ) No ( ) 4. State when you acquired the claim, the amount paid, and the face amount of the claim: 5. Have you or your attorney entered into a settlement agreement with the debtor regarding resolution of your claim7 Yes( ) No( ) 6. Do you have a claim against any entity affiliated with the debtor? Yes () No ( ) State the name of the entity and the nature and amount of the claims: 7. Do you or any affiliated entities have any other claims against, or debt or equity securities of, the debtor(s)? Yes No( 8. Do you or any affiliated entities have any financial arrangement that may affect the value of your claim(s) against or interest(s) in the debtor(s) (e.g., personal guarantees, credit insurance, etc.)? Yes ( ) No ( ) 9. If you have given a proxy to a third party either to represent you at the creditors' committee formation meeting, or in connection with your claim, please attach a copy of the written proxy. If a professional person has arranged for someone to hold a proxy on your behalf, please identify that individual: You may attach a written statement to explain or supplement any responses. Page 2 of 3 48 of 62 April 16, 2019, Item #3.2 Creditors wishing to serve as fiduciaries on an official committee are advised that they may not purchase, sell or otherwise trade in or transfer claims against the debtor while they are committee members absent an order of the court on application of the creditor. PLEASE BE ADVISED THAT ONCE A COMMITTEE IS FORMED, THE UNITED STATES TRUSTEE WILL FILE A NOTICE OF APPOINTMENT IN THE COURT RECORD THAT CONTAINS CONTACT INFORMATION FOR ANY CREDITOR APPOINTED, INCLUDING THE CREDITOR'S NAME, ADDRESS, AND TELEPHONE NUMBER. Privacy Act Statement. 11 U.S.C. § 1102 authorizes the collection of this information. The information will be used by the United States Trustee to determine your qualifications for appointment to the Committee. Disclosure of this information may be to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties, or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures maybe made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST -001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http://www.justice.gov/ust/eo/rules_regulations/index.htm. Your disclosure of information is voluntary; however, failure to provide the requested information may result in the rejection of your application to be appointed to the Committee. I hereby certify that, to the best of my knowledge and belief, the answers to this Questionnaire are true and correct. By executing this Questionnaire, I also agree to the restrictions and conditions set forth in the preceding paragraphs and in the Committee Information Sheet, and I agree to provide the periodic certifications upon the request of the United States Trustee. Date: 49 of 62 Signature Print Name Title Page 3of3 April 16, 2019, Item #3.2 U.S. Department of Justice United States Trustee Southern District of California 880 Front Street, Suite 3230 (619) 557-5013 San Diego, CA 92101 F= (619) 557.5339 OFFICIAL COMMITTEE OF UNSECURED CREDITORS INFORMATION SHEET Purpose of Unsecured Creditors' Committees. To increase participation in the chapter 11 proceeding, section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors (the "Committee") as soon as practicable after the order for relief has been entered. The Committee ordinarily consists of the persons, willing to serve, who hold the seven (7) largest unsecured claims of the kinds represented on such committee. The debtor has filed a list indicating that your claim may be among the largest unsecured claims against the debtor, and for that reason, you may be eligible to serve on the Committee. There must be at least three (3) unsecured creditors willing to serve in order to form a Committee. Powers and Duties of Unsecured Creditors' Committees. Members of the Committee are fiduciaries who represent all unsecured creditors as a group without regard to the types of claims which individual unsecured creditors hold against the debtor. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform such other services as are in the interests of the unsecured creditors which it represents. Moreover, Federal Rule of Bankruptcy Procedure 2019, as amended, requires each member of an official committee to file a verified statement disclosing its name, its address, and the nature and amount of each "disclosable economic interest"' held in relation to the debtor on the date the committee was formed. Rule 2019 also requires the committee to file a verified supplemental statement updating the earlier information (if information previously disclosed has materially changed) when taking a position before the court or soliciting votes on a plan. Employment of Professionals. Section 1103 of the Bankruptcy Code provides that the Committee may, subject to the bankruptcy court's approval, employ one or more attorneys, accountants, or other professionals to represent or perform services for the Committee. The decision to employ particular professionals should occur at a scheduled meeting of the Committee where a majority of the Committee is present. All professionals retained by the Committee may be compensated from assets of the debtor's estate pursuant to section 330 of the Bankruptcy Code. Applications for the payment of professional fees may be monitored by the Office of the United States Trustee and are subject to the Court's approval. However, the Committee should carefully review all applications and not rely on the Court or the United States Trustee to discover and object to unreasonable or unnecessary professional fees or costs. Other Matters. The Committee should elect a chairperson and may adopt bylaws. As a party in interest, the Committee may be heard on any issue in the bankruptcy proceeding. Federal Bankruptcy Rule I "Disclosable economic interest" means any claim, interest, pledge, lien, option, participation, derivative instrument, or any other right or derivative right granting the holder an economic interest that is affected by the value, acquisition, or disposition of a claim or interest. 1 50 of 62 April 16, 2019, Item #3.2 2002(1) requires that the Committee (or its authorized agent) receive all notices concerning motions and hearings in the bankruptcy proceeding. In the event you are appointed to an official committee of creditors, the United States Trustee may require periodic certifications of your claims while the bankruptcy case is pending. Creditors wishing to serve as fiduciaries on any official committee are advised that they may not purchase, sell or otherwise trade in or transfer claims against the Debtor while they are committee members absent an order of the Court. By submitting the enclosed Questionnaire and accepting membership on an official committee of creditors, you agree to this prohibition. The United States Trustee reserves the right to take appropriate action, including removing a creditor from any committee, if the information provided in the Questionnaire is inaccurate, if the foregoing prohibition is violated, or for any other reason the United States Trustee believes is proper in the exercise of her discretion. You are hereby notified that the United States Trustee may share this information with the Securities and Exchange Commission if deemed appropriate. Privacy Act Statement. 11 U.S.C. § 1102 authorizes the collection of this information. The information will be used by the United States Trustee to determine your qualifications for appointment to the Committee. Disclosure of this information may be to a bankruptcy trustee or examiner when the information is needed to perform the trustee's or examiner's duties, or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee's systems of records notice, UST -001, "Bankruptcy Case Files and Associated Records." See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: ht(l)://www.iustice.gov/ustleo/rules regulations/index.htm. Your disclosure of information is voluntary; however, failure to provide the requested information may result in the rejection of your application to be appointed to the Committee, Should you have any additional questions concerning the Committee or your membership on the Committee, please contact the Office of the United States Trustee. 51 of 62 April 16, 2019, Item #3.2 11 USC §1103 1103, Powers and duties of committees. a) At a scheduled meeting of a committee appointed under section 1102 of this title, at which a majority of the members of such committee are present and with the court's approval, such committee may select and authorize the employment by such committee of one or more attorneys, accountants, or other agents to represent or perform services for such committee. b) An attorney or accountant employed to represent a committee appointed under section 1102 of this title may not, while employed by such committee, represent any other entity having an adverse interest in connection with the case. Representation of one or more creditors of the same class as represented by the committee shall not per ge constitute the representation of an adverse interest. c) A committee appointed under section 1 t02 of this title may --- 1) consult with the trustee or debtor in possession concerning the administration of the case: 2) investigate the acts, conduct, assets, liabilities, and financial condition of the debtor, the operation of the debtor's business and the desirability of the continuance of such business, and any other matter relevant to the case or to the formulation of a plan: 3) participate in the formulation of a plan, advise those represented by such committee of such committee's determinations as to any plan formulated and collect and file with the court acceptances or rejections of a plan: 4) request the appointment of a trustee or examiner under section 1104 of this title; and 5) perform such other services as are in the interest of those represented. d) As soon as practicable after the appointment of a committee under section 1102 of this title, the trustee shall meet with such committee to transact such business as may be necessary and proper. 62 of 62 April 16, 2019, Item #3.2 s'I'MIE V WS, mayor DAVE, GROSCI 1, Deputy mayor CAYLIN FRANK, Councilmember HARRY LEONARD, Councilmcmbcr JOT IN ibIULLIN, Councilmember January 30, 2019 CITY OF POWAY Property Owners J T A REAL ESTATE HOLDINGS LLC CHRISTOPHER D. DOUGHERTY 13822 NORTHCREST LN POWAY CA, 92064 Sent by regular and certified mail* Subject: Hardship Waiver Affidavit; Notice of Appeal and Request for Hearing for Citation No. 645 & 646; Case No. 17-0071 & 17-0074 Dear Mr. Dougherty, This letter is in response to your Notice of Appeal for Hearing and Hardship Waiver Affidavit. On your affidavit, you affirmed that you met the three criteria required to support a request for fee waiver. One of the criteria is that you may not own any real property. However, a review of the County Assessor's data indicates that you own property under APNs 524- 032- 01-00, 524-020- 27-00 and 278-442-43-00 (13822 Northcrest Ln.). Therefore, your request for hearing cannot be processed until you make a deposit equal to the fine of the citation you are appealing: Citation No. 645 and 646 issued on December 7, 2018, imposing a $100 penalty, per citation. You must remit the total amount of $200 at the City of Poway Customer Services Division located at 13225 Civic Center Drive, Poway, CA 92064, no later than five days from the date of this letter (February 4, 2019) in order for an appeal hearing to be scheduled. The 200 deposit would be refunded to you within ten days of determination, after the hearing, that you were not responsible for the violations or that there were no violations. Alternatively, if Citation 645 and 646 were upheld, your deposit would be forfeited as the fine for the citation. Should you have any questions, you may contact the assigned Code Compliance Officer, Daniel Welte, at (858) 668-4664 or dwelte@poway.org, or you may contact my office at (858) 668-4500. Sincerely Tina M. White City Manager City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074. 0789 www.poway.org 53 of 62 ATTACHMENT Q April 16, 2019, Item #3.2 4 Bill To 13325 Civic Center Drive Poway, CA 92064 JTA Real Estate Holdings LLC Christopher D Dougherty 13822 Northcrest Ln Poway, CA 92064 INVOICE Date Invoice No. 121612018 180791 Please make your check payable to the City of Poway Mail Payment To City of Poway Attn: Customer Services P.O. Box 789 Poway, CA 92074 General Information Email: customerservices@poway.org Web site; hilp://www.poway.org Terms: Due Date: See Due Date 12/6/2018 Description Amount Case #17-0071 Citation #645 100.00 Citation Issued: 12/7/2018 Payment due by: 12/260018 Fine Due: $100; add 50% penalty if paid after 12/26/2018 Property Owner and Mail Address: JTA Real Estate Holdings LLC 13822 Northcrest Ln Poway, CA 92054 Property Information: 13822 Northcrest Ln, Poway, CA Assessor's Parcel Number 2784424300 Additional information is attached. Your prompt payment is appreciated! City Hall Hours / 7:30 AM — 5:30 PM. Closed Every Other Friday For Details Visit: www.poway.org/houra Payments $0.00 Coding: 301030.73150 Reimbursable I Balance Due $100.00 PLEASE REMIT PAYMENT TO THE P.O. BOX NUMBER LISTED ABOVE. IF YOU ARE A RESIDENT OR BUSINESS IN POWAY, PLEASE AVOID USING THE P.O. BOX NUMBER LISTED ON YOUR CITY OF POWAY WATER BILL, REMITTANCE SENT TO THIS ADDRESS MAY CAUSE YOUR PAYMENT TO BE MISAPPLIED. PLEASE REFERENCE YOUR INVOICE NUMBER ON ALL CHECKS AND CORRESPONDENCE. 54 of 62 April 16, 2019, Item #3.2 0 E) Bill To 13325 Civic Center Drive Poway, CA 92064 JTA Real Estate Holdings LLC Christopher D Dougherty 13822 Northcrest Ln Poway, CA 92064 INVOICE Date Invoice No. 12/6/2018 180792 Please make your check payable to the City of Poway Mail Payment To City of Poway Attn: Customer Services P.O. Box 789 Poway, CA 92074 General Information Email: customerservices@poway.org Web site: http:/Awww.poway.org Terms: Due Date: See Due Date 12/6/2018 Description Amount Case 917-OD74 Citation 9646 100.00 Citation issued: 12/7/2018 Payment due by: 12/26/2018 Fine Due: $100; add 50% penalty if paid after 12126/2018 Property Owner and Mail Address: JTA Real Estate Holdings LLC 13822 Northcrest Ln Poway, CA 92064 Property Information: 13822 Northcrest Ln, Poway, CA Assessor's Parcel Number 2784424300 Additional information is attached. Your prompt payment is appreciated! City Hall Hours / 7:30 AM — 5:30 PM. Closed Every Other Friday For Details Visit: www.poway.org/hours Payments $0.00 Coding: 301030-73150 Reimbursable Balance Du $100.00 PLEASE REMIT PAYMENT TO THE P.O. BOX NUMBER LISTED ABOVE. IF YOU AREA RESIDENT OR BUSINESS IN POWAY. PLEASE AVOID USING THE P.O. BOX NUMBER LISTED ON YOUR CITY OF POWAY WATER BILL. REMITTANCE SENT TO THIS ADDRESS MAY CAUSE YOUR PAYMENT TO BE MISAPPLIED. PLEASE REFERENCE YOUR INVOICE NUMBER ON ALL CHECKS AND CORRESPONDENCE. 55 of 62 April 16, 2019, Item #3.2 uwmu -,,CEO D- -,. 56 of 62 ATTACHMENT R April 16, 2019, Item #3.2 Unperrnitted Addition noted by Assessor in 1975, no permit. Add ItIon built after 3980, no permits. d Built after 2(W no permit, later expanded by prop a rty a wn er. April 16, 2019, Item #3.2 1 err ,n S _ _ :.. yy ,9T"-- _ y I i s ._._ _ e_ H 4p „ f Y` fpN'' u F April 16, 2019, Item #3.2 10124110 b1 CFO O. Mr.0 59 of 62 April 16, 2019, Item #3.2 S'I FAT VAUS, Mayor CITY OF POWAY DANT OROSCI-1, Deputy Mayor CAYLIN IgRANK, Councilmembcr BARRY LEONARD, Councilmember JOI IN MULLIN, Councilmember CASE HISTORY APN: 278-442-43-00 CASE NUMBER: 17-0071 & 17-0074 DATE PREPARED: March 13, 2019 VIOLATION ADDRESS: 13822 Northcrest Ln. Poway, CA 92064 PROPERTY OWNER AND ADDRESS: J T A REAL ESTATE HOLDINGS LLC (Christopher D. Dougherty) 13822 Northcrest Ln. Poway, CA 92064 PMC VIOLATION(S) EXISTING TO THIS DATE: 8.60.141, 15.02.010,15.04.010, 16.56.020 and 16.56.040. DATE INVESTIGATION PMC SECTIONS WITNESS CHRONOLOGY VIOLATED Staff observed active grading 2/ 16/17 violation. Issued a Code Compliance 16. 56.020 16. 56.040 D. Welte topor Notice. 2/ 16/17 Property owner met with Jason J. Rivera Rivera, Engineering counter staff Code Compliance and Engineering Staff returned to property. Engineering staff issued an 2/17/17 Engineering Stop Work Notice for 16.56.020 D. Welte grading. Staff noted some evidence 16.56.040 J. Tolliver of new construction. Staff will research permit history and records for the property. Reviewed County and City permit 12/ 2/17 records, discovered building code 15.02.010 15.04.010 D. Welte violations. Owner attempted to submit plans for 2/21/17 new pool and pool house at permit M. Rocco counter but was denied due to radin violation lackingpermits. 2/27/17 Case transferred to Melody Rocco, M. Rocco Sr. Civil Engineer. D. Welte 60 of 62 City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074.0789 ATTACHMENT S April 16, 2019, Item #3.2 2/28/17 Present building permit research and D. Welte findings to Joseph Lim, City Planner. J. Lim Owner attempted to submit plans at 3/1/17 permit counter for retaining wall but M. Rocco was denied due to grading violation lacking permits. 3/1/17 Received Geotechnical engineering M. Rocco report for grading. 3/1/17 M. Rocco reviewed geotechnical report, sent response email. M. Rocco Courtesy Notice Letter regarding 8.60.010 3/1/17 buildingcode violations. 15.02.010 D. Welte 15.04.010 M. Rocco communicated with 3/27/17 grading engineer hired to draft M. Rocco grading plans. Code compliance Stop Work Notice 16.56.020 3/28/17 issued for retaining wall, directed 16.56.040 D. Welte owner to contact M. Rocco. 15.02.010 M. Rocco met with owner and 3/31/17 engineer to discuss grading plan M. Rocco review process and timeline for plan submittal. 4/14/17 Per engineer, plans will be submitted M. Rocco by April 19, 2017. 2nd Notice of Violation: Building4/18/17 Code. p, weite Grading plans submitted, 1St 4/19/17 submittal under review file #G17- M. Rocco 0006. Corrections for 1St submittal review 5/12/17 completed available. M. Rocco 8/16/17 2nd Notice of Violation: Building Code. D. Welte 10/4/17 2nd plan submittal under #G16-0006. M. Rocco 10/4/17 Corrections for 2nd submittal review M. Rocco completed and available. 10/19/19 Site visit, staff noted newly built RV 15. 02.010 J. Lim Carport. 15. 04.010 M. Rocco 8.60.010 11/8/17 Notice and Order: Building Code. 15. 02.010 FD Welte 15.04.010 61 of 62 April 16, 2019, Item #3.2 62 of 62 Site visit, carport removed. Noted a 16.56.020 2/18/18 new dirt pad created under the 16.56.040 D. Welte carport foot rint —grading violation. 15.02.010 Email to owner: resubmit 3rd revision 4/16/ 18 of plans within two weeks. IF M. Rocco IF—case transferred back to D. Welte, 5/1/18 enforcement to resume, per M. 16.56.020 M. Rocco 16.56.040 D. Welte Rocco. 5/ 2/18 1st Notice of Violation: Grading. I 16.56.020F D. Welte 16.56.040 Owner spoke with M. Rocco at 5/11/18 permit counter. Owner has hired a M. Rocco new engineer. 5/11/18 2nd Notice of Violation: Grading. 16. 56.020 D. Welte 16.56.040 8/14/18 Notice and Order: Grading. 16.56.020 16.56.040 D. Welte Recorded Notice of Violation against 16.56.020 10/3/18 title. Owner considering sale of 16.56.040 D. Welte 15.02.010 property. 15.04.010 D. Welte Joint site visit with property owner D. Devries 10/25/18 and Development Services staff. p M. Rocco T. Beach T.Johnson inistrative Citation: grading 16.56.020 n, $100. F 16.56.040 D. Welte inistrative Citation: building 15.02.010 iolations, $100. 15.04.010 Request of appeal for citations with 12/20/18 Hardship Waiver received. Citations D. Welte not paid. Hardship Waiver denied, owner notified. Citations must be paid by1/30/19 February 5, 2019 to proceed with D. Welte appeal. Staff met with City Attorney to D. Welte 2/ 5/19 discuss bankruptcy and enforcement D. Devries action for the case. R. Manis 2/ 5/19 Payment of citations received, $200. D. Welte 2/13/ 19 Notice of Scheduled Appeal Hearing D. Welte mailed to the property owner. 62 of 62 April 16, 2019, Item #3.2