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05-07-19 Agenda Packet CITY OF POWAY CITY COUNCIL AGENDA TUESDAY, MAY 7, 2019 REGULAR CITY COUNCIL MEETING – 7:00 P.M. COUNCIL CHAMBERS | 13325 CIVIC CENTER DRIVE | POWAY, CALIFORNIA 92064 The City Council also sits as the City of Poway Planning Commission, Poway Housing Authority, Public Financing Authority and Successor Agency to the Poway Redevelopment Agency The City of Poway welcomes you and encourages your continued interest and involvement in the City’s decision-making process. MEETINGS: Regular City Council meetings are held on the first and third Tuesday of the month at 7:00 p.m. PUBLIC MEETING ACCESS: Regular City Council meetings are broadcast live on Cox Communications Channel 24 and Time Warner Channel 19. Council meeting videos are archived and available for viewing on the City’s website. AGENDA MATERIALS: This agenda contains a brief summary of each item the Council will consider. The Agenda and Agenda Packet is posted seven (7) days prior to regular City Council meetings and are available for viewing on the City’s website at www.poway.org or in the City Clerk’s office of City Hall, 13325 Civic Center Drive. Sign up at www.poway.org to receive email notifications when City Council agendas are published online. Items listed on the agenda with a “#” symbol are in preparation. SPEAKERS: Persons wishing to address the Council on matters not on the agenda may do so under Public Comments. Those wishing to speak on items on the agenda may do so when the item is being considered. Please submit a Speaker’s Slip to the City Clerk prior to the meeting or the announcement of the item. All comments will be limited to three (3) minutes. AMERICAN DISABILITIES ACT TITLE II: In compliance with the Americans with Disabilities Act of 1990, persons with a disability may request an agenda in appropriate alternative formats as required by Title II. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s office 858.668.4530 at least 24 hours prior to the meeting. REMINDER: As a courtesy to all attendees, please silence all electronic devices and engage in conversations outside the Council Chambers. John Mullin Dave Grosch Councilmember Deputy Mayor Caylin Frank Barry Leonard Councilmember Councilmember Steve Vaus Mayor Page 2 City Council – Regular Agenda May 7, 2019 CALL TO ORDER ROLL CALL Mullin, Leonard, Frank, Grosch, Vaus PLEDGE OF ALLEGIANCE PRESENTATION Proclamation Honoring May 5 through 11, 2019 as Municipal Clerks Week PUBLIC ORAL COMMUNICATIONS NOTE: In accordance with State law, an item not scheduled on the agenda may be brought forward by the general public for comment; however, the City Council will not be able to discuss or take action on any issue not included on the agenda. If appropriate, your concerns will be referred to staff. Comments are limited to three (3) minutes. Speakers will have only one opportunity to address the Council under Public Oral Communications. 1. CONSENT CALENDAR (Approved By Roll Call Vote) The Consent Calendar may be enacted in one motion by the Council without discussion unless a Councilmember, a member of the public, or City staff requests that an item be removed for discussion. 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 March 25, 2019 through March 29, 2019; and April 1, 2019 through April 5, 2019; and April 8, 2019 through April 12, 2019 1.3 Approval of the April 2, 2019 and April 16, 2019 Regular City Council Meeting Minutes 1.4 Award of Contract to SRM Contracting and Paving for the 2018-2019 Street Overlay Project; Bid No. 19-013 1.5 Approval of Consultant Agreement between the City of Poway and Infrastructure Engineering Corporation (IEC) for Design Services for the Clearwell Upgrades Project (CIP #WTR0020) 1.6 Acceptance of the Traffic Signal Controller Upgrades Project; Bid No. 18-009, HMS Construction, Inc. 1.7 Comprehensive Annual Financial Report – FY 2017/18 2. ORDINANCE None. 3. PUBLIC HEARING 3.1 Tentative Parcel Map 16-001; A Request for Approval of a Two-Lot Subdivision Located at 14724 Pomerado Road in the Residential Single Family – 3 (RS-3) Zone Page 3 City Council – Regular Agenda May 7, 2019 City Manager’s Recommendation: It is recommended that the City Council take public input, close the public hearing and adopt a resolution approving Tentative Parcel Map 16-001, subject to the conditions of approval. 4. STAFF REPORT 4.1 Appropriation of Funds for the Acquisition of Real Property at Van Dam Peak for Open Space City Manager’s Recommendation: It is recommended that the City Council appropriate an additional $60,000 from the Habitat In-Lieu Fee Fund for the acquisition of real property, APNs #316-020-04-00, #316-020-05-00, #316-020-20-00, and #316-020-21-00 for open space. 4.2 Update on the Hazard Mitigation Grant Program (HMGP) Application and Reconciliation of Funds for the Maintenance of Landscape Maintenance Districts (LMDs) 83-1 and 86-1 City Manager’s Recommendation: It is recommended that the City Council 1) Direct staff to defer work on the tree risk assessment until the HMGP is awarded and until such time that tree removal work is ready to begin; and 2) Authorize $97,197, which is the unused funds appropriated to LMD 83-1 (water: $77,265, trees: $19,932) and $75,702, which is the unused funds appropriated to LMD 86-1 (water: $51,660, trees: $24,042) be rolled over to Fiscal Year 2019- 20 for the same intended purpose. 4.3 City of Poway and Poway Unified School District (PUSD) Joint Use Agreement for Cooperative Facilities Use and Maintenance City Manager’s Recommendation: It is recommended that the City Council continue this item to an undetermined later meeting. 5. WORKSHOP None. 6. MAYOR AND CITY COUNCIL-INITIATED ITEMS COUNCILMEMBER COMMITTEE REPORTS – Pursuant to AB1234 - (G.C. 53232(d)) JOHN MULLIN BARRY LEONARD CAYLIN FRANK DAVE GROSCH STEVE VAUS 6.1 Request Council Concurrence of Acting Committee Appointments to the Budget Review Committee per Government Code 54974(b). 7. CITY MANAGER ITEMS 8. CITY ATTORNEY ITEMS ADJOURNMENT May 7, 2019, Item #1.2 DATE: TO: FROM: CONTACT: City of Poway COUNCIL AGENDA REPORT May 7, 2019 Honorable Mayor and Members of the City Council Donna Goldsmith, Director of Finance~ • Andrew White, Interim Finance Manager (}/J/ (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 25 through March 29, 2019 ; April 1 through April 5, 2019; and April 8 through April 12, 2019 Summary: The attached warrant register reports for the periods of March 25 through March 29, 2019; April 1 through April 5, 2019; and April 8 through April 12, 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 25 through March 29, 2019 Amount $4,065,752 .70 Warrants for amounts in excess of $100,000 for this period include : Warrant Buehler Reservoir Rehabilitation February 2019 Water Purchases Payroll 3-1-19, Retirement Federal Home Loan Bank Investment Purchase Payroll 3-29-19 Federal Farm Credit Bank Investment Purchase Date April 1 through April 5, 2019 Check Number 403930 404023 905057 905058 905059 905067 Amount $2,514,251.15 Warrants for amounts in excess of $100,000 for this period include : 1 of 38 Amount $ 164,983.26 $ 711,208.01 $ 128,643 .98 $ 996,235 .83 $ 521,612 .79 $1,016,666.67 May 7, 2019, Item #1.2 Warrant Fannie Mae Investment Purchase Payroll 3-15-19, Retirement Date April 8 through April 12 , 2019 Check Number 905074 905075 Amount $ 2,007,896 .17 Warrants for amounts in excess of $100,000 for this period include : Warrant Payroll 4-12-19 Wire Transfer: Villa de Vida, 12341 Oak Knoll Road Environmental Review: This item is not subject to CEQA review . Fiscal Impact: Check Number 905076 905077 Amount $2 ,032,777 .78 $ 125,038 .19 Amount $ 525 ,372.63 $ 700,000 .00 The total amount of warrants for the period of March 25 through March 29, 2019 is $4,065 ,752 .70 . The total amount of warrants for the period of April 1 through April 5, 2019 is $2,514,251 .15. The total amount of warrants for the period of April 8 through April 12 , 2019 is $2,007 ,896 .17. Public Notification: None . Attachments: A. Warrant Register for the period of March 25 through March 29 , 2019 B. Warrant Register for the period of April 1 through April 5, 2019 C. Warrant Register for the period of April 8 through April 12, 2019 Reviewed/Approved By : Wendy Kaserman Assistant City Manager 2 of 38 Reviewed By : Alan Fenstermacher City Attorney Approved By : ~&Jn~ Tina M . White City Manager May 7, 2019, Item #1.2EJ) The City of Poway Director of Finance Submits the Following Register of Demands Run Date: 11-Apr-19 ' for the period 3/25/2019 -3/29/2019 and Recommends its Ratification/Approval: "' 0 Check Check Payee/ ... Org Object Project Check Amount "' Number Date Vendor# PayeeNendor N~~e Invoice Number Descrjption co 403922 29-Mar-19 506 AO REED&CO 93596 Heating and AC Maintenance 206020 43020 $780.00 403923 29-Mar-19 1890 ACRO SALES CO. 21646 Gas detector 403570 43080 $75.00 404004 29-Mar-19 1717 AIR QUALITY COMPLIANCE SOLUTIONS 11373 Hazardous waste removal 413010 41200 $1,018.00 INC 403924 29-Mar-19 1428 AIRGAS USA, LLC 9086367322 Pool CO2 203020 45200 $246.89 403925 29-Mar-19 710 AK&COMPANY POWAY-19-2 State Mandated Cost reimbursement services 111010 41200 $2,250.00 403926 29-Mar-19 9 ALL STAR GLASS INC WPY072718 Unit #924 Red Fleet windshield repair 413010 43120 $99.00 403927 29-Mar-19 834 ALPHA-NUMERIC DESIGN, INC. 1473 Label Design for VersaPrint 121010 41200 $161.63 403928 29-Mar-19 553 AMERICAN BACKFLOW PREVENTION 300006777 Renewal, APBA Backflow, Reynolds 402560 49240 $80.00 ASSOCIATION 403929 29-Mar-19 953 AMERICAN MESSAGING L1073904TC Dispatch Pagers 501050 41050 $370.64 404041 29-Mar-19 1977 AMERICAN TRAINCO LLC 199995 PLC Programming & Applications-Moylan and 401060 31040 $2,200.00 Tran 403930 29-Mar-19 1644 AMP UNITED LLC 2190152-3 Buehler Reservoir Rehabilitation 80005106 P5100 $164,983.26 ► 403931 29-Mar-19 -I 21 ARAMARK REFRESHMENT SERVICES 1578747 City Hall: Refreshment Services 114010 47600 $97.26 -I 403933 29-Mar-19 835 AT&T ► 12730806 BAN 9391026535 02/10/19 -03/09/19 414040 22000 $19.07 0 12730807 BAN 9391026536 WTP Modems, 2/1 0/19-402060 33010 $20.75 ::c 3/9/19 s: m 12730810 BAN 9391026540 2/10/19-3/9/19 413010 33010 $20.72 z --------- -I 12705546 BAN 9391063084 Senior Center 02/03-208020 22000 $58.87 ► 03/02/19 .. ---····· ·---- 12714852 BAN 9391026551 2/6/19-3/5/19 114010 33010 $928.11 12761709 BAN 9391051972 -PW Network-2/13/1!>-114010 22000 $607.20 3/12/19 12761711 BAN 9391051979 -PCPA Network-2/13/19-114010 22000 $424.46 3/12/19 12761713 BAN 9391051982 -Network & CaINet3-2/13-114010 22000 $1,273.38 3/12/19 12761713 BAN 9391051982 -Network & CaINet3-2/13-114010 33010 $1,312.18 3/12/19 Total for Check 403933: $4,664.74 --.. -----·--------------..... - ----- 403932 29-Mar-19 32 BAINBRIDGE, SUSAN WlNIFRED 2500.300.19 Instructor Payment Winter 2018-19 208020 41300 $892.80 . ··----~------------ 403934 29-Mar-19 453 BAY CITY EQUIPMENT INDUSTRIES, INC W205020 Generator Maintenance, PS-14, PM & Coolant 402060 41200 $1,171.97 Sensor ... -· ·----,_ - 403935 29-Mar-19 836 BEST BEST & KRIEGER LLP 843812 Proposition #218 Advisory Committee 80001004 P1000 $3,017.64 attendance 403911 29-Mar-19 999998 BLACKER.DEANNA FEB 2019 MILEAGE Mileage Reimbursement: Consortium 121010 31010 $21.00 Training 2/14/19 May 7, 2019, Item #1.2,,., 0 -c.:, co Register of Demands: Warrants from 3/25/2019 -3/29/2019 Check Check Payee/ Number Date Vendor# 403909 29-Mar-19 999998 403936 29-Mar-19 1042 403937 29-Mar-19 131 403938 29-Mar-19 408 403940 29-Mar-19 1132 403941 29-Mar-19 55 905057 27-Mar-19 788 403939 29-Mar-19 445 403942 29-Mar-19 532 PayeeNendor Name BLANTON, KRISTA BLUE TARP CREDIT SERVICES BNC MOBIL AUTO REPAIR INC. BOOT WORLD INC CALL YO 2009 CORP. CALOL YMPIC SAFETY CALPERS CAL-STATE AUTO PARTS INC CANNON PACIFIC SERVICES, INC 403920 29-Mar-19 999999 CARL WARREN & COMPANY -•••• • ••• 'r,,·-• ,----• -••-•-•••••-~ ~-•·• "" 403908 29-Mar-19 999991 CHILDS YOUNG, DEBORAH 403943 29-Mar-19 1479 403944 29-Mar-19 1023 403945 29-Mar-19 1623 403946 29-Mar-19 479 403947 29-Mar-19 286 CIRO'S LANDSCAPING INC. CLINICAL LABORATORY OF SAN BERNARDINO INC. •• •-~"• ~--• ••••••-• •~-~TOrr ~••••••~•--•->••-•••• •••• CORE & MAIN LP CORRPRO CO INC COSTCO WHOLESALE Invoice Number Mileage 3-7-19 41075922 1089 1087 11284 R11144 376608 PERS PE2019-05 PERS PE2019-05 46957 450640 51888 149448 1869739 B18-1787 12333 12333 12333 12333 12333 12333 967660 K222801 544133 775115376 Description Reimb: LCW FLSA Academy 2019 One year renewal Unit #51 Unit #7 48A A/C system Boot Allowance: Santamaria Annual license renewal Wrhse: lifeguard hats PERS PE#2019-05 PERS PE#2019-05 Unit 78A battery credit for battery Unit #77 A radiator Bus Stop Maintenance Subrogation File Notes & Recovery Fee B18-1787 Traffic Impact Fee refund Landscape Maintenance Landscape Maintenance Landscape Maintenance Landscape Maintenance Landscape Maintenance Landscape Maintenance Lab Services, Routine Monthly Analysis Piping, Copper Tubing, 1 1/2", Non-Inventory Reservoir Annual Cathodic Inspections Safety Rodeo & LMD Open House Refreshments Page: 2 of 14 Org Object Project Check Amount 121010 14020 $166.46 414040 47600 $39.99 Total for Check 403936: $39.99 413010 43120 $139.60 413010 43120 $278.39 Total for Check 403937: $417.99 402560 49280 $100.00 504050 41200 $1,824.00 F1000 81350 $160.52 F1000 87100 $128,643.89 111010 13140 $0.09 Total for Check 905057: $128,643.98 413010 47900 $109.10 413010 47900 ($88.36) 413010 47900 $251.39 .---·-·-·---··•---~ ----•···-·· Total for Check 403939: $272.13 80002434 P2430 $1,331.80 122010 57600 $24.00 30502224 77130 $1,241.74 204020 41600 $298.32 206020 41600 $447.52 - 402060 41600 $343.89 414040 41600 $1,566.27 501050 41600 $1,366.68 504050 41600 $298.32 . ~-------- Total for Check 403943: $4,321.00 403070 17300 $134.00 > >--•---W• -•• ,_ 402560 47600 $706.84 --cc-~~•• --'"•-••••••••----·-·-····-·-- 402060 41200 $7,200.00 80001004 P1000 $47.10 May 7, 2019, Item #1.2Register of Demands: Warrants from 3/25/2019-3/29/2019 Page: 3 of 14 Check Check Payee/ Number Date Vendor# Payeef'.-"endor Name Invoice Number Description Org Object Project Check Amount en 403947 29-Mar-19 286 COSTCO WHOLESALE 775115376 Safety Rodeo & LMD Open House 400060 14010 $164.38 0 Refreshments ... "' Total for Check 403947: $211.48 00 403948 29-Mar-19 329 COUNTY OF SAN OIEGO DEH 2001119--E-60517-0219 Backflow Testing: 12175 Tech Center Dr. 405060 57300 $153.00 2001119--E-60494-0219 Backftow Inspection Fees, 12113 Kirkham Rd. 405060 57300 $153.00 DEH2015-HUPFP-Permit, UPF, PS-6, 4/30/19 -4/30/20 402060 57300 $469.00 001928 Total for Check 403948: $775.00 403949 29-Mar-19 1937 COURTESY CHEVROLET CENTER, INC 29A -3/18/19 Chevrolet Colorado Vehicles 115010 61040 $27,873.21 904A-3/18/19 Chevrolet Colorado Vehicles 115010 61040 $28,746.08 Total for Check 403949: $56,619.29 403950 29-Mar-19 94 COX COMMUNICATIONS 128803201-02/19 Kumeyaay Internet Line -2/19 207020 33010 $242.94 403951 29-Mar-19 380 CWEA FY19 Mohamad Renewal, CWEA, Mohamad, 5/31/19 to 5/31/20 403570 49240 $188.00 403953 29-Mar-19 627 DEPARTMENT OF JUSTICE 361010 Fingerprinting: February 2019 121010 49340 $320.00 403954 29-Mar-19 1493 DISCOVERY BENEFITS INC. 0000986094-IN Cobra & FSA Monthly: February 2019 F1000 87399 $462.00 403952 29-Mar-19 424 D-MAX ENGINEERING INC 4840 WQIP Support & JRMP Annual Report 308040 41200 $3,755.31 4851 Inv. 4851 Material Handling Yard IGP Svcs 308040 41200 $2,505.17 Total for Check 403952: $6,260.48 -----· ···- 403919 29-Mar-19 999999 DOKKEN ENGINEERING BC-015121 REFUND Refund: Business Certificate #BC-015121 112010 72130 $20.00 BC-015121 REFUND Refund: Business Certificate #BC-015121 30102833 79999 $4.00 Total for Check 403919: $24.00 403955 29-Mar-19 1943 ECS IMAGING INC 13907 Laserfiche Imaging Provider 101010 41200 $7,766.00 ----·----- 403956 29-Mar-19 740 ENNISS INC. 143432 26. 13 tons of Sand 412040 47600 $580.59 200138 Concrete dump fees 411040 29050 $85.66 Total for Check 403956: $666.25 403957 29-Mar-19 440 ESCONDIDO METAL SUPPLY 701004 Vehicle, Unit 10 Bed Repair, Steel Angle 401060 47600 $69.54 ., .. -·----------·· 403958 29-Mar-19 465 EVOQUA WATER TECHNOLOGIES LLC 903903033 Bioxide, LS-1 (861 gal; 01/30/19) 403070 45200 $1,643.00 903903033 Bioxide, LS-1 (861 gal; 01/30/19) 415010 45200 $704.15 Total for Check 403958: $2,347.15 . ·······--·----- 403959 29-Mar-19 350 EWNG IRRIGATION 6959951 Valle Verde Park: irrigation supplies 414040 47700 $942.00 403960 29--Mar-19 1189 EYE/COMM, INC. 52391 Extended Public Noticing -TTM19-001 301030 41200 $263.03 ----------·--·- 403961 29-Mar-19 116 FERGUSON WATERWORKS 0666993 Chlorine for Shoring Trailer 402560 47600 $57.06 0666582 Valve, Fire Hydrant Valve Break, Twin Peaks 402560 47600 $1,311.67 0666693 Piping, Blowoff Repair, Danielson 402560 47600 $115.68 May 7, 2019, Item #1.2Register of Demands: Warrants from 3/25/2019 -3/29/2019 Page: 4 of 14 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number Description Org Object Project Check Amount "' 403961 29-Mar-19 116 FERGUSON WATERWORKS 0666553 Piping, 12x2 lP BRZ Saddle, Warehouse F5100 81350 $447.87 0 0666982 Piping, PS 14/15, Drain Back Repair -"' 402060 47600 $157.88 "' 0666014 Meter Covers & Lids, Warehouse F5100 81350 $2,912.49 Total for Check 403961: $5,002.65 403962 29-Mar-19 1456 FLO-SYSTEMS INC. F17336-19D017 Pump, LS-2 P-3 Replace 403070 43080 $11,662.86 403963 29-Mar-19 1380 FLYERS ENERGY LLC CFS-1846175 Safety Services Fuel 2/17/19-2/20/19 413010 31020 $767.58 403964 29-Mar-19 957 GARDA CL WEST INC. 10469077 Am1ored Car Service: March 2019 114010 41200 $575.87 20360118 Armored Car Service: Excess Items Feb 2019 114010 41200 $157.90 Total for Check 403964: $733.77 403965 29-Mar-19 838 GEMAL TO COGENT 407151 Fingerprinting: February 2019 121010 49340 $21.70 -_,. --·· ---403966 29-Mar-19 480 HARPER & ASSOCIATES ENGINEERING ENG-6482 Coating and Cathodic Inspection -February 80005106 P5100 $2,900.00 INC 2019 ENG-6487 Washwater Tank Upgrades -February 2019 80005106 P5100 $360.00 Total for Check 403966: $3,260.00 403967 29-Mar-19 123 HARRINGTON INDUSTRIAL PLASTICS INC 004J3787 Chemical, Caustic Header Pipe Repair 402060 47600 $225.47 403968 29-Mar-19 346 HAWTHORNE POWER SYSTEMS PS000850597 Shop stock: filter 413010 47900 $92.55 PS000850598 Unit 503A filter 413010 47900 $86.81 PS000851432 Unit#503A 413010 47900 $229.34 ------···· SS100114941 Unit #920 Red Fleet parts 413010 43120 $6,718.32 Total for Check 403968: $7,127.02 ··-···--·---· 403970 29-Mar-19 152 HOME DEPOT COMMERCIAL ACCOUNT 3012866 Chemical, Chlorinator Repair Parts 402060 47600 $87.20 .. -·-·---------- 2210980 Work Order #2016838: repair supplies 415010 47600 $231.97 --------------·· 0223727 Electric Panel Maint. Supplies 402060 47600 $68.78 9223734 Process Equipment, NTU Meter Repair, Super 402060 47600 $6.43 Glue 9210957 Battery Charger 204020 43080 $121.77 6210999 Cleaning Tools 401060 47600 $38.34 Total for Check 403970: $554.49 ------------- 403971 29-Mar-19 1264 IN & OUT VEHICLE REGISTRATION R72436 Unit#512A 413010 43120 $70.00 SERVICES 403972 29-Mar-19 644 INFOSEND 149928 Mailing Statements 2-19-19 to 2-28-19 112010 33020 $1,252.88 149928 Mailing Statements 2-19-19 to 2-28-19 112010 41200 $744.73 -------~ 150985 Mailing Statements 3-5-19 to 3-15-19 112010 33020 $1,036.76 150985 Mailing Statements 3-5-19 to 3-15-19 112010 41200 $581.86 Total for Check 403972: $3,616.23 May 7, 2019, Item #1.2...... 0 -(,> ex, Register of Demands: Warrants from 3/25/2019 -3/29/2019 Check Check Payeer Number Date Vendor# 403973 29-Mar-19 1311 403974 29-Mar-19 347 403975 29-Mar-19 703 403976 29-Mar-19 129 403977 29-Mar-19 1750 403978 29-Mar-19 421 403979 29-Mar-19 160 403980 403981 403982 905060 905061 29-Mar-19 910 29-Mar-19 933 -• •""---'----rr----+ ------·-·-.. ,-. 29-Mar-19 684 29-Mar-19 616 29-Mar-19 616 905062 29-Mar-19 616 905063 29-Mar-19 616 PayeeNendor Name INTEGRA REAL 1Y RESOURCES-SAN DIEGO ITRON, INC. -... - JENAL ENGINEERING CORP. JRC PRINTING LLC JUST CONSTRUCTION INC KEYSER MARSTON ASSOCIATES INC KOSMONT COMPANIES ..... ·-· LOWE'S MAIL DISPATCH • <••····· . ------· -•"-"·•··--~---·-·"·--~-- MALLORY SAFE1Y & SUPPLY LLC --... ~' ·-""""-" ~--.. ---•-,, ___ ,,, ·---···--"" MANUFACTURERS & TRADERS TRUST CO. BANK MANUFACTURERS & TRADERS TRUST CO. BANK ··-·-·-·--~--····----~-----,.,"--·-······--··-· -- MANUFACTURERS & TRADERS TRUST CO. BANK MANUFACTURERS & TRADERS TRUST CO. BANK . -. -----·-. --. ·•··---------------,_ ____ ---- MANUFACTURERS & TRADERS TRUST CO. BANK 403910 29-Mar-19 999998 MARGIS, ALLIE Invoice Number 162-2019-0107 513525 513525 19-1071 38941 PPS 0033203 1705.12 010 14216 02362 CREDIT 175827 4609558 457 PPE 3/24/19 457R PPE 3/24/19 401A PPE 3/24/19 ROTH PPE 3/24/19 RHS PPE 3/24/19 0055 094446 403912 29-Mar-19 999998 MARGIS, ALLIE 9071000104833 403917 29-Mar-19 999995 403983 29-Mar-19 1364 .. ·-•----·--------~------·•-•"•'•' -----,, MARROKAL DESIGN & REMODELING LLC 2013347 _001 MICHAEL BAKER INTERNATIONAL INC. 1037795 1040515 403918 29-Mar-19 999995 MOJALET DANCE COLLECTIVE 2013348.001 43208300-05 364356 364452 403921 29-Mar-19 999997 MURPHY, JAMES 403985 29-Mar-19 175 NAPA AUTO PARTS/POWAY Description Appraisal of Poway Road properties Itron Maintenance Renewal FY19 Itron Maintenance Renewal FY19 Annual underground tank monitor certification Business Cards: Lussier: Barca Espola Road Safety Improvement -PPB Villa De Vida Professional Services -Feb 2019 Project 1705.12 Town Center RFQ/P Services Lumber R2: PVC parts Mail Courier Service: March 2019 co/atmospheric monitor parts .. ,.. ~~ -·-----·-·--··--· "'-••~ ·--·-·. ___ ,,, __ , __ - ICMA 457 deferred comp deductions PPE 3/24/19 ROTH 457 deferred comp PPE 3/24/19 401 a employer contributions PPE 3/24/19 ROTH IRA employee contributions Retirement Health Savings Plan (Safety)PPE 3/24/19 Reimburse-Welcome Reception Supplies Reimburse-Welcome Reception Supplies Deposit Refund Permit# 21555 Espola Road Safety Improvement -December 2018 Espola Road Safety Improvement -January 2019 Deposit Refund Permit #20945 Overpayment #43208300-05 Re Stock Credit for invoice 82855 11 /13/15 Org F1000 112010 112010 413010 202020 80004200 80002903 F1000 414040 402060 114010 501050 F1000 F1000 F1000 F1000 F1000 121010 121010 208020 80004200 80004200 208020 F5100 413010 413010 Page: 5 of 14 Object 86800 Project Check Amount 41200 43080 Total for Check 403974: 41200 49220 P0OOO P2900 86800 47600 47600 Total for Check 403980: 41200 43080 86120 ... , .. -· .. --- - 86120 86130 86220 87004 14030 14030 74710 P0OOO P0000 ,. ••••-•••••••··rn•r-·· Total for Check 403983: 74710 81020 47900 47900 $8,500.00 $912.59 $887.71 $1,800.30 $550.00 $68.96 $12,175.86 $4,968.75 $9,290.00 $214.95 ($18.74) $196.21 $1,253.56 $1,309.17 $28,601 30 $3,711.53 $11,427.63 $500.00 $1,698.24 $60.30 $60.96 $200.00 $4,810.00 $8,510.00 $13,320.00 $300.00 $135.00 $303.56 ($29.78) May 7, 2019, Item #1.200 0 -w 00 Register of Demands: Warrants from 3/25/2019 -3/2912019 Check Check Payee! Number Date Vendor# 403985 29-Mar-19 175 403987 29-Mar-19 1268 ----------- - 403988 29-Mar-19 527 403989 29-Mar-19 84 403990 403991 29-Mar-19 1354 29-Mar-19 186 PayeeN~~dor Name NAPA AUTO PARTS/POWAY NEOPOST USA INC. NINYO & MOORE OFFICE DEPOT BUSINESS SERVICES DIVISION ·--·--------- ORACLE AMERICA INC. PACIFIC PIPELINE SUPPLY 403913 403992 29-Mar-19 999998 PARKS, JESSICA 403993 403994 29-Mar-19 195 29-Mar-19 1931 29-Mar-19 219 ---·-------------- PARKWAY BUSINESS CENTRE PDQ CONNECT INC PETTY CASH FIRE Invoice Number 364453 364510 364454 Description Credit for inv#364042 of 3/12/19 Batteries for Boats Credit for inv 362862 & 362984 Postage Machine Meter Rental: Apr 2019 Espola Rd Safety Imp. Geotechnical -Jan & Feb 19 -· --.. Special Inspection & Materials through 2/22119 Org 413010 202020 413010 114010 80004200 80005106 Page: 6 of 14 Object Project 47900 47600 47900 Total for Check 403985: Check Amount ($43.09) $200.78 ($13.99) $417.48 43080 $65.51 P0000 P5100 56527952 226390 226391 226392 Special Inspection and Soil Testing -1/28 -2/20 80005106 P5100 $1,175.50 $885.50 $7,024.00 $9,085.00 289223877-001 289223877-001 282153116-001 287483998-001 287 483998-001 287 483998-001 287 483916-001 288071458-001 44267842 S100401667.001 S100402490.001 Office Supplies Office Supplies Office Supplies Office Supplies Office Supplies Office Supplies Office Supplies Office Supplies Oracle S7-2 Server Maintenance Piping, Valve Replacement Piping, Copper Tubing, Non-Inventory Stock ParksJ MMASC 3-28-19! MMASC Luncheon Reimbursement, Parks, J. 410-110-CU0419 410-110-CU0419 15666 FDPC-03152019 FDPC-03152019 FDPC-03152019 FDPC-03152019 FDPC-03152019 FDPC-03152019 Assessment Fees -105, 11 O Assessment Fees -105, 11 O Radio Parts/Equipment, Reservoirs/PS's Petty Cash for Firefighters Petty Cash for Firefighters Petty Cash for Firefighters Petty Cash for Firefighters Petty Cash for Firefighters Petty Cash for Firefighters 121010 120010 121010 112010 111010 114010 112010 101010 113010 402560 402560 401060 414040 410060 402060 501050 501050 501050 501050 501050 501050 Total for Check 403988: 47100 47100 49340 47100 47100 47100 47100 47100 Total for Check 403989: 43080 61180 47600 Total for Check 403991: 14010 57300 57300 . --------------.,,, __ Total for Check 403992: 47600 31030 43080 45600 47600 47900 49040 $39.92 $7.66 ($33.57) $35.40 $11.73 $76.07 $5.16 $92.21 $234.58 $322.87 $4,294.92 $1,389.79 $5,684.71 $20.00 $725.00 $1,114.00 $1,839.00 $1,481.32 $23.97 $14.05 $8.88 $57.83 $4.51 $10.00 May 7, 2019, Item #1.2Register of Demands: Warrants from 3/25/2019 -3/29/2019 Page: 7of14 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number Description Org Object Project Check Amount <D 403994 29-Mar-19 219 PETTY CASH FIRE FDPC-03152019 Petty Cash for Firefighters 501050 49240 $35.00 0 FDPC-03152019 Petty Cash for Firefighters -501050 49240 $4.19 "' 00 Total for Check 403994: $158.43 403995 29-Mar-19 220 PETTY CASH GENERAL 3-18-19 (Clerk) Reimburse General Petty Cash 3-18-19 100010 14010 $206.79 3-18-19 (Clerk) Reimburse General Petty Cash 3-18-19 101010 14010 $50.00 3-18-19 (Clerk) Reimburse General Petty Cash 3-18-19 101010 47100 $16.98 3-18-19 (Clerk) Reimburse General Petty Cash 3-18-19 103010 31040 $52.00 Total for Check 403995: $325.77 403996 29-Mar-19 762 PINPOINT PEST CONTROL CO. INC. 425399 Pest Control, Bees, WTP Control Room 402060 41200 $185.00 403997 29-Mar-19 249 POSTMASTER-POWAY BOX#789 2019 PO Box 789 annual fee 2019 114010 33020 $410.00 --------·-·-- 403998 29-Mar-19 25 POWAY CENTER FOR THE PERFORMING 03172019 Poway OnStage Ticket Sales Transfer -PCPA F1000 86330 $5,801.00 ARTS FOUNDATION 403999 29-Mar-19 1496 POWAY SYMPHONY ORCHESTRA 1261 PCPA Ticket Sales Credit Minus Staff Charges F1000 86350 $8,727.00 FOUNDATION 1261 PCPA Ticket Sales Credit Minus Staff Charges 204020 76320 ($994.00) . --- ----.... 1261 PCPA Ticket Sales Credit Minus Staff Charges 204020 76220 ($100.00) 1261 PCPA Ticket Sales Credit Minus Staff Charges 204020 76230 ($431.00) Total for Check 403999: $7,202.00 404000 29-Mar-19 761 PRAST, NANCEE PRAST-031419 SVP -Volunteer of the year award 80007795 P7790 $37.71 --. ----··-. ---· ··-----"·- PRAST2-031419 SVP -Christmas Party Items 80007795 P7790 $96.10 PRAST3-031419 SVP year end awards, coins, candy, 80007795 P7790 $51.05 -~-ift ca_r~~· ~~-~~--___ PRAST3-031419 SVP year end awards, coins, candy, 80007795 P7790 $43.08 , ... ~.~~-~-~-~. -~-~-~-~ PRAST3-031419 SVP year end awards, coins, candy, 80007795 P7790 $43.98 gift cards, bags ---------- PRAST3-031419 SVP year end awards, coins, candy, 80007795 P7790 $37.90 __ -~i~ ~rds_, bags PRAST3-031419 SVP year end awards, coins, candy, 80007795 P7790 $189.75 gift ~~s, ~.°:!;!~ .. PRAST4-031419 SVP-flowers, gift card for Liz Shade 80007795 P7790 $21.27 -··-·-·-· ---·~------ PRAST4-931419 SVP-flowers, gift card for Liz Shade 80007795 P7790 $25.00 PRAST6-031419 SVP -Dinner party, xmas subsidy, awards 80007795 P7790 $32.81 --·-----·----~---. PRAST6-031419 SVP-Dinner party, xmas subsidy, awards 80007795 P7790 $207.00 Total for Check 404000: $785.65 -------. ·-- 404001 29-Mar-19 1058 R & B PINTO PROPERTIES LLC LKCONC 03/11-03/17 Lake Wkly Cone (03111-03117119) F1000 86360 $5,416.03 403906 29-Mar-19 999993 RAHIMZADEH FAMILY REVOCABLE G16-0007 G16-0007 Grading Security Release 390030 59800 $3,050.00 TRUST UDT 1111312006 May 7, 2019, Item #1.2Register of Demands: Warrants from 3/25/2019-3/29/2019 Page: 8 of 14 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number Description Or9 Object Project Check Amount ..... 404002 29-Mar-19 287 RDO EQUIPMENT COMPANY INC P04396 UNIT #520 parts 413010 47900 $76.96 0 43040 $88.69 0 404003 29-Mar-19 1669 RELIANT AQUARIUM DESIGN INC. 19087 Aquarium Maintenance and Sea Reef Salt 206020 ... "' 00 403914 29-Mar-19 999998 REYNOLDS, PATRICK Reynolds D2 Renewal Reynolds D2 Renewal 2019 402560 49240 $80.00 403915 29-Mar-19 999998 ROCCO, MELODY CellPhoneReimb Cell Phone Replacement Reimbursement 304030 33011 $200.00 404005 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 76015905 4/19 Property Taxes 114010 57300 $146.89 404006 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 323080114/19 Property Taxes 114010 57300 $21.09 __ ,, _____ ,. ____ 404007 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 31633116 4/19 Property Taxes 114010 57300 $25.45 404008 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 31633117 4/19 Property Taxes 114010 57300 $45.46 404009 29--Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32407039 4/19 Property Taxes 114010 57300 $205.10 . ---------·- 404010 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32401123 4/19 Property Taxes 114010 57300 $245.10 ------------------.. -- 404011 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 31633114 4/19 Property Taxes 114010 57300 $309.51 . ----~----·-·---· ··-· ---------404012 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32311069 4/19 Property Taxes 114010 57300 $391.53 -------------------- -·------ 404013 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32308013 4/19 Property Taxes 114010 57300 $421.98 -----------· 404014 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 324011 09 4/19 Property Taxes 114010 57300 $922.83 --·-----·--·-·------· 404015 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32401125 4/19 Property Taxes 114010 57300 $925.11 ---·--------------------------·-· ·------------ 404016 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32308015 4/19 Property Taxes 114010 57300 $1,925.12 404017 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32401127 4/19 Property Taxes 114010 57300 $2,005.13 ---------...... --·------------ 404018 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 324011 08 4/19 Property Taxes 114010 57300 $2,517.29 ------------------------------------. --· ------·-------. --- 404019 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32401122 4/19 ----·-------- Property Taxes 114010 57300 $2,605.14 -------------------------··-· ---------------. ----·-404020 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 324011 07 4/19 Property Taxes 114010 57300 $2,935.99 ---------· __ ,, ___ , __ --------------. ·------- 404021 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32407036 4/19 Property Taxes 114010 57300 $3,229.08 -----------.... ----·. --·-·-----·---------·---.. 404022 29-Mar-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32308016 4/19 Property Taxes 114010 57300 $4,005.16 - -----------,---·---~ ----------- 404023 29-Mar-19 216 SAN DIEGO COUNTY WATER AUTHORITY 0219--11 Water Delivery and Charges, Feb 2019 402060 27011 $338,966.10 0219--11 Water Delivery and Charges, Feb 2019 402060 27012 $44,748.00 --· -----------···----- 0219--11 Water Delivery and Charges, Feb 2019 402060 27013 $327,493.91 ----------... -------- Total for Check 404023: $711,208.01 -----________________ ,, ____ ----. ·--------·-------------· ___ .. ,. ___ --------------·-•-... 404024 29-Mar-19 221 SAN DIEGO GAS & ELECTRIC 32089688823-03/19 13090 Civic Center Drive 2/10-3/12/2019 208020 21010 $221.64 . --------------------------------. 26480327247-03/19 12250 1/2 Meadowbrook Ln 02/07-03/11/2019 201020 21010 $674.68 ----. -------····------------------------------------ 99580161733-03/19 14135 Midland-VP (02/12-03/14/19) 205020 21010 $40.30 "" -·-·---·-·----------·-··-. ------------ - ---... , .,. 59971687019-03/19 14114 Midland-Hist Soc (02/12-03/14/19) 205020 21010 $253.43 ... -------·--__ ,,_ ,. -·. ·------------··--.. ---·-------- 32222332511-03/19 14560 Lake Poway 02/10-03/12/19 202020 21010 $476.03 ----. ·----------- Total for Check 404024: $1,666.08 May 7, 2019, Item #1.2Register of Demands: Warrants from 3/25/2019 -3/29/2019 Page: 9of14 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number De~cription Org Object Project Check Amount ~ 404030 29-Mar-19 829 SC COMMERCIAL, LLC 0647568-IN Fuel delivery 3/13/19 unleaded & diesel 413010 31020 $11,419.99 ~ 0 0647696-IN Fuel delivery 3/14/19 diesel ... 413010 31020 $1,848.93 Total for Check 404030: $13,268.92 "' 00 404025 29-Mar-19 256 SENTRY FENCE COMPANY 5584 Lodge pole repair 414040 41200 $300.00 5585 Replace three traffic bollards: Iron Mountain 414040 41200 $800.00 5589 Installation of Temporary Fence-15016 Espola 80004200 P0000 $630.00 Rd. Total for Check 404025: $1,730.00 404026 29-Mar-19 282 SHARP REES-STEALY MEDICAL CENTER 329654695 Preplacement 121010 49160 $60.00 329654696 Non DOT Urine Drug Screen 121010 49160 $35.00 329654109 Preplacement 121010 49160 $60.00 329654111 Quant TB Spec Coll & Prep 121010 49160 $48.00 329654110 Non DOT Urine Drug Screen 121010 49160 $35.00 326560144 Quant TB Spec & Coll 121010 49160 $45.00 329443437 Quant TB Spec & Coll 121010 49160 $45.00 329559891 Class A OMV Physical 401060 49160 $110.00 ------·--------------· Total for Check 404026: $438.00 404027 29-Mar-19 328 SKILLPATH SEMINARS 12017213 Organization Skills for Overwhelmed 121010 14020 $199.00 Seminar: Weston 404028 29-Mar-19 296 SLOAN ELECTRIC 570661 PS-12 rebuild reclaim pump meter 405060 43080 $8,998.17 403916 29-Mar-19 999998 SLUSHER.RANDY Slusher Boot Reimb. Boot Allowance, Slusher 402560 49280 $200.00 404029 29-Mar-19 991 SMARTCOVER SYSTEMS ---------~----12158 Manhole, SmartCover Service 403570 41200 $120.00 403986 29-Mar-19 1376 SOCAL PACIFIC CONSTRUCTION CORP Estimate4 Manhole Rehabilitation 80005207 P5200 $28,643.45 -----·-·-·-· -----··-····-----··------,_,,_ . -····--·····-··--404031 29-Mar-19 1997 SONSRAY MACHINERY, LLC P19021-01 Unit #7 48A parts -condenser and filters 413010 47900 $533.49 404032 29-Mar-19 1988 SOUTHERN CALIFORNIA FLEET ES-4487 Unit #922 red fleet -transmission 413010 43120 $2,705.48 SERVICES, INC ES-4468 Unit #921 red fleet 413010 43120 $527.50 Total for Check 404032: $3,232.98 .. -------------------· 404033 29-Mar-19 1031 SPECIAL SERVICES GROUP LLC 12714 Replacement battery for Stealth GPS Tracker 504050 43080 $269.38 -· -------------- 404034 29-Mar-19 831 STATE WATER RESOURCES CONTROL OReilly, C. 2019 Certification Renewal, O'Reilly, T-3, 7/19-7/22 402060 49240 $90.00 BOARD-OPCERT . - - 404035 29-Mar-19 528 STATEWIDE SAFETY & SIGNS, INC 01004863 Custom signs 411040 45900 $136.86 01004864 Decals for new equipment/vehicles 413010 47900 $191.80 Total for Check 404035: $328.66 404036 29-Mar-19 1559 STONE BREWING COMPANY 3166624 PCPA Concession Bar Supplies 204020 47900 $252.00 404037 29-Mar-19 1601 SUPERION, LLC 228780 Annual Maintenance & Technical Support 112010 41200 $10,350.35 May 7, 2019, Item #1.2Register of Demands: Page: 10 of 14 Warrants from 3/25/2019 -3/29/2019 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number Description Org Object Project Check Amount ~ 404038 29-Mar-19 461 SUPERIOR CLEANING EQUIPMENT INC 9219 Washrack/Clarifier Maintenance 413010 41200 $234.83 "' 0 404039 29-Mar-19 312 SUPERIOR READY MIX 27335 Piping, Danielson Blowoff Repair 402560 47600 $409.05 -"' 29101 2.5 cubic yards concrete 411040 43240 $433.43 00 Total for Check 404039: $842.48 403907 29-Mar-19 999994 THANGASAMY,PRABHU 2013344.001 Refund Class Cancellation 208020 76250 $84.00 404040 29-Mar-19 9n TOSHIBA BUSINESS SOLUTIONS 15271390 Copier 2/25/19 -3/24/19 114010 43080 $1,603.33 ·----····-·· -··--- 404042 29-Mar-19 462 TRUESDAIL LABORATORIES, INC 521901054 Lab Services, Routine 402060 41200 $1,685.65 521900689 Lab Services, Routine 402060 41200 $2,041.47 521901055 Lab Services, Routine 402060 41200 $1,683.19 521901056 Lab Services, Routine 402060 41200 $1,641.30 Total for Check 404042: $7,051.61 404043 29-Mar-19 1602 TYLER TECHNOLOGIES INC. 045-254116 Tyler software licenses, imple 80006111 P6110 $1,534.60 045-255450 Tyler software licenses 80006111 P6110 $54,843.75 Total for Check 404043: $56,378.35 404048 29-Mar-19 1566 U.S. BANK CORPORATE PAYMENT SVC -7016-03/19 Finance/HR March 2019 Statement F1000 86020 $3,989.44 IT . ,. ______ , . ., __ , _________ --- 404044 29-Mar-19 897 U.S. BANK CORPORATE PAYMENT 0510-03/19 CSD March 2019 Statement F1000 86020 $7,801.40 SYSTEM-CS 404047 29-Mar-19 1513 U.S. BANK CORPORATE PAYMENT 2521-03/19 City Clerk March 2019 Statement F1000 86020 $450.00 SYSTEM-LG ··-·------.. ---·------···· . ----·--·-· 404046 29-Mar-19 1512 U.S. BANK CORPORATE PAYMENT 6896-03/19 Public Works March 2019 Statement F1000 86020 $379.00 SYSTEM-PW ·-----------·-· _ ........ -... , ________ . -··---------· ·----. --·-------·-·· 404045 29-Mar-19 1511 U.S. BANK CORPORATE PAYMENT 9376-03/19 Safety March 2019 Statement F1000 86020 $3,157.90 SYSTEM-SS -------------·· ---------- 905065 29-Mar-19 785 U.S. BANK NA PARS ARS PE2019--07 PARS ARS PE#2019-07 F1000 87200 $2,248.92 .. --------·------· ---·-·----- 905066 29-Mar-19 785 U.S. BANK NA PARS REP PE2019-07 PARS REP PE#2019--07 F1000 87210 $35,922.68 -------------------·------·-· ---------·--· --- 404049 29-Mar-19 236 UNDERGROUND SERVICE ALERT 220190528 DigAlert Monthly Ticket Charges, Feb19 402560 49240 $109.00 ----·------------------- -----------------· --- 404050 29-Mar-19 1580 UNIFIRST CORPORATION 361 0061528 Customer Services: Uniforms 112010 49280 $34.33 ··------·------. -·----------··--------- 361 0062490 Wrhse: Mats & Uniforms 415010 41200 $1.22 ·-·· -----·-----·--·-____ , __ ,, __ -·----- 361 0062490 Wrhse: Mats & Uniforms 410060 49280 $4.14 ---------------------- 361 0062487 Mats, Uniforms & Wipes 415010 41200 $8.81 _,, ___ ,, ___ ---------- 361 0062487 Mats, Uniforms & Wipes 413010 49280 $46.02 ---·--------------·---.. --· --------- 361 0062495 Uniforms & Mats 415010 41200 $8.54 ------------· ,. - -----------. ------------ 361 0062495 Uniforms & Mats 402060 49280 $24.94 -------------------- 361 0062492 Uniforms Weekly Rental, 1 Exchange 403570 49280 $71.01 ---------. 361 0062496 Uniforms Weekly Rental Fee 401060 49280 $34.25 May 7, 2019, Item #1.2Register of Demands; Warrants from 3/25/2019 -3/29/2019 Page: 11 of14 Check Check Payee/ Number Date Vendor# PayeeNendor Na.r:te Invoice Number Description Or9 Object Project Check Amount ~ 404050 29-Mar-19 1580 UNIFIRST CORPORATION "' 361 0062491 Uniforms Weekly Rental Fee 405060 49280 $5.44 0 361 0062331 Customer Services: Uniforms 112010 49280 $10.46 -"' 361 0062488 Stormwater: uniforms 412040 49280 $19.06 00 361 0062489 Streets: uniforms 411040 49280 $50.86 361 0062500 Lake Poway Dock: mats 415010 41200 $9.89 361 0062499 Twin Peaks Gym: mats and mops 415010 41200 $11.37 361 0062498 Public Works: mats 415010 41200 $6.45 361 0062497 North Parks: uniforms 414040 49280 $26.88 361 0062493 Facilities: uniforms 415010 49280 $8.83 361 0061530 City Hall: mats 415010 41200 $17.21 361 0061531 Meadowbrook Gym: mats and mops 415010 41200 $26.31 . ---------·- 361 0062333 City Hall: mats 415010 41200 $17.21 361 0062332 Senior Center: mats 415010 41200 $14.77 361 0062334 Meadowbrook Gym: mats and mops 415010 41200 $26.31 361 0061529 Senior Center: mats 415010 41200 $14.77 . ····---_, -- 361 0062338 South Parks: mats and uniforms 415010 41200 $47.95 -----------. --------· ·-·--·-- 361 0062338 South Parks: mats and uniforms 414040 49280 $19.48 . ----" -· 361 0061535 South Parks: uniforms and Community Center 415010 41200 $47.95 mats 361 0061535 South Parks: uniforms and Community Center 414040 49280 $19.48 mats . ------·-----·-··-··--·· 361 0061011 Weekly Mat Service 204020 49280 $9.63 -----------------·---- Total for Check 404050: $643.57 ----·--···-----. 404051 29-Mar-19 1500 UNION BANK 3004-03/19 Robert J. Manis Credit Card -March 2019 300030 49240 $85.00 3004-03/19 Robert J. Manis Credit Card -March 2019 301030 14010 $500.00 3004-03/19 Robert J. Manis Credit Card -March 2019 300030 14010 $36.71 Total for Check 404051: $621.71 ____ ,, ______ ---- 404052 29-Mar-19 1500 UNION BANK 1166-9960 03/13/19 Credit Card Expenditures 103010 31040 $45.00 1166-9960 03/13/19 Credit Card Expenditures 103010 14010 $480.00 ---·-----... •···-... ,,, ___ ,,,_ 1166-9960 03/13/19 Credit Card Expenditures 103010 49320 $100.00 -· --·----- 1166-9960 03/13/19 Credit Card Expenditures 100010 14010 $101.25 -··-... ___ --·--·-· --- 1166-9960 03/13/19 Credit Card Expenditures 121010 14030 $23.45 Total for Check 404052: $749.70 ·-----·--. 404053 29-Mar-19 1500 UNION BANK 6430-03/19 Director's Credit Card: 2/11/19-3/13/19 400060 47600 $48.59 May 7, 2019, Item #1.2Register of Demands: Warrants from 3/25/2019 -3/29/2019 Check Number Check Date Payee/ Vendor# PayeeNendor Name -"' 404053 .a:,. 29-Mar-19 1500 UNION BANK a "' co 404054 29-Mar-19 1500 905058 27-Mar-19 36 905067 29-Mar-19 36 905059 28-Mar-19 334 404055 29-Mar-19 655 404056 29-Mar-19 1612 403984 29-Mar-19 171 404057 29-Mar-19 321 404058 29-Mar-19 321 404059 29-Mar-19 321 UNION BANK UNION BANK OF CALIFORNIA UNION BANK OF CALIFORNIA UNION BANK-SAN DIEGO UNITED SITE SERVICES USAFACT, INC, VELOCITY TRUCK CENTERS VERIZON WIRELESS ---~~------,,_ VERIZON WIRELESS VERIZON WIRELESS Invoice Number 6430-03/19 6430-03/19 6430-03/19 6430-03/19 6430-03/19 6430-03/19 1163-1226 03/13/19 1163-1226 03/13/19 1163-1226 03/13/19 1163-1226 03/13/19 1163-1226 03/13/19 1163-1226 03/13/19 3130AABG2 3130AABG2 3130AABG2 3133EJJD2 3133EJJD2 3133EJJD2 PPE 3/24/19 PPE 3/24/19 PPE 3/24/19 114-8129588 9031528 RA293000565:01 9825676982 9825109578 9825109576 9825109576 9825109576 Page: 12of14 Description .. Director's Credit Card: 2/11 /19-3/13/19 Director's Credit Card: 2/11/19-3/13/19 Director's Credit Card: 2/11/19-3/13/19 Director's Credit Card: 2/11/19-3/13/19 Director's Credit Card: 2/11/19-3/13/19 Director's Credit Card: 2/11 /19-3/13/19 Credit Card Expenditures Credit Card Expenditures Credit Card Expenditures Credit Card Expenditures Credit Card Expenditures Credit Card Expenditures Purchase FHLB Maturity 11-29-21 Purchase FHLB Maturity 11-29-21 Purchase FHLB Maturity 11-29-21 Org 403570 400060 401060 400060 410060 414040 101010 104030 121010 101010 504050 103010 F1000 F1000 F1000 Object Project 14010 14010 14010 47100 47600 47600 Total for Check 404053: 14010 14010 49340 14010 49040 41200 Total for Check 404054: 82120 82121 82290 Check Amount $494.00 $50.81 $400,00 $28.59 $52.80 $52.94 $1,127.73 $597.57 $90.00 $540.90 $709.28 $41.26 $3.96 $1,982.97 $1,000,000.00 ($9,910.00) $6,145.83 Total for Check 905058: $996,235.83 Purchase FFCB Maturity 04-05-21 ------·------------.,.---·--····-·--- Purchase FFCB Maturity 04-05-21 Purchase FFCB Maturity 04-05-21 F1000 82170 F1000 82171 F1000 82290 $1,000,000.00 $4,390.00 $12,276.67 Total for Check 905067: $1,016,666.67 Transfer net payroll to Union Bank PPE 3/24/19 TREA 80030 Transfer net payroll to Union Bank PPE 3/24/19 F1000 80030 Transfer net payroll to Union Bank PPE 3/24/19 F1000 Portable Toilet Services Background Investigations Unit 63A modify hitch-parts and labor MiFi For Backup Internet-PCPA Customer Services: Cell Phones 1/30/19- 2/28/19 PW Cell Phones 1-29-19 to 2-28-19 PW Cell Phones 1-29-19 to 2-28-19 PW Cell Phones 1-29-19 to 2-28-19 414040 121010 414040 204020 112010 400060 401060 401060 80030 41200 17999 43080 22000 33011 22000 22000 33011 $521,612.79 ····•···" --·· ($521,612.79) $521,612.79 $453.86 $133.13 $1,145.75 $38.01 $634.10 $38.01 $114.03 $0.54 May 7, 2019, Item #1.2Register of Demands: Warrants from 3/25/2019-3/29/2019 Page: 13 of 14 Check Check Payee/ Number Date Vendor# PayeeN~ndor Name Invoice Number Description Or9 Object Project Check Amount ~ 404059 29-Mar-19 321 VERIZON WIRELESS 9825109576 PW Cell Phones 1-29-19 to 2-28-19 402060 22000 $76.02 "' 0 ... 9825109576 PW Cell Phones 1-29-19 to 2-28-19 402060 33011 $8.88 "' 9825109576 PW Cell Phones 1-29-19 to 2-28-19 402560 22000 $266.07 00 9825109576 PW Cell Phones 1-29-19 to 2-28-19 402560 33011 $6.30 9825109576 PW Cell Phones 1-29-19 to 2-28-19 403570 22000 $152.04 9825109576 PW Cell Phones 1-29-19 to 2-28-19 403570 33011 $21.24 9825109576 PW Cell Phones 1-29-19 to 2-28-19 405060 22000 $38.01 9825109576 PW Cell Phones 1-29-19 to 2-28-19 411040 22000 $76.02 9825109576 PW Cell Phones 1-29-19 to 2-28-19 411040 33011 $0.54 9825109576 PW Cell Phones 1-29-19 to 2-28-19 412040 22000 $114.03 9825109576 PW Cell Phones 1-29-19 to 2-28-19 412040 33011 $2.21 9825109576 PW Cell Phones 1-29-19 to 2-28-19 413010 33011 $1.76 9825109576 PW Cell Phones 1-29-19 to 2-28-19 414040 22000 $76.02 9825109576 PW Cell Phones 1-29-19 to 2-28-19 414040 33011 $25.26 9825109576 PW Cell Phones 1-29-19 to 2-28-19 415010 22000 $76.02 9825109576 PW Cell Phones 1-29-19 to 2-28-19 415010 33011 $21.10 --·-------- 9825109576 PW Cell Phones 1-29-19 to 2-28-19 430050 22000 $38.01 9825109576 PW Cell Phones 1-29-19 to 2-28-19 430050 23010 $38.01 • ➔--·-"---·--·· 9825109576 PW Cell Phones 1-29-19 to 2-28-19 112010 22000 ($73.52) •-------.,,_ 9825109576 PW Celt Phones 1-29-19 to 2-28-19 112010 33011 $0.36 9825109576 PW Cell Phones 1-29-19 to 2-28-19 112010 33011 ($158.49) 9825109576 PW Cell Phones 1-29-19 to 2-28-19 112010 33011 $315.24 Total for Check 404059: $1,273.71 ... ----·--------- 404060 29-Mar-19 260 VILLAGE NURSERIES 505876 Plant material 424140 47700 $435.78 404061 29-Mar-19 1744 VISTA IRRIGATION DISTRICT D1-D3 3-12-19 D1-D3 Cert. Training, Alegre/Santamaria 402560 14010 $350.00 404062 29-Mar-19 1561 VOLVO VCES LAKESIDE -----------· -··· ···----·· P501019233 Unit #775 window pane 413010 47900 $460.56 404063 29-Mar-19 272 WAXIE 78114954 The Lake: Sanitary supplies 415010 47200 $1,529.26 .. ----""'•----- 78032019 Community Center: sanitary supplies 415010 47200 $407.51 --------------------- 78038328 Community Center: sanitary supplies 415010 47200 $325.38 ·--➔ ·--~-- 78144848 The Lake: sanitary supplies 415010 47200 $520.51 -------------··--·--~ 78125045 The Lake: sanitary supplies 415010 47200 $1,588.99 78133162 Community Center: sanitary supplies 415010 47200 $12.33 May 7, 2019, Item #1.2Register of Demands: Warrants from 3/25/2019 -3/29/2019 Check Number -'-404063 a, 0 -~ 404064 404065 404066 Check Payee/ Date Vendor# PayeeNendor Name 29-Mar-19 272 WAXIE 29-Mar-19 540 WEST COAST ARBORISTS, INC. 29-Mar-19 280 WESTERN MOWER AND ENGINE 29-Mar-19 646 WILLDAN "--------- 404067 29-Mar-19 293 WOLPERT, JOSEPH 404068 29-Mar-19 1340 WORLD ADVANCEMENT OF TECHNOLOGY FOR EMS AND RESCUE 404069 29-Mar-19 1573 ZORO TOOLS, INC. Invoice Number 78128098 145635 145636-1 145636-2 62573 63317 01040813 2001.300-02.198 1136 INV5739174 Director of Finance Approve~ -~~ Date: Lf -Jd-. -I er Description Community Center: sanitary supplies Tree Trimming, Removal Tree Trimming, Removal 86-2A: grid prune Pole Saw and Handheld Blower Mixed fuel LMD 87-1 Re-engineering to 19-1 Instructor Payment Winter 2018-19 EMS Patient reporting software -support Oversock Boots-Four Pair Org 415010 423040 424040 424040 414040 412040 80001004 208020 503050 F1000 Page: 14of14 Object Project Check Amount 47200 $1,162.87 Total for Check 404063: $5,546.85 41200 $2,545.42 41200 $1,219.06 41200 $148.18 Total for Check 404064: $3,912.66 47900 $734.77 47600 $105.54 Total for Check 404065: $840.31 P1000 $1,925.00 41300 $1,174.80 41200 $1,094.00 81350 $57.84 Register Total: $4,065,752.70 May 7, 2019, Item #1.2cE> The City of Poway Director of Finance Submits the Following Register of Demands Run Date: 18-Apr-19 for the period 4/1/2019 -415/2019 and Recommends its Ratification/Approval: ' __. ... 0 Check Check Payee/ Org Object Project Check Amount -Number Date Vendor# PayeeNendor Name Invoice Number Description w 00 404076 04-Apr-19 506 AO REED&CO 93908 Train Barn 415010 43020 $238.00 93911 Templar's Hall 415010 43020 $1,694.00 93910 Porter House 415010 43020 $1,856.00 93909 Nelson House 415010 43020 $1,106.00 93906 Fire Station #3 415010 43020 $7,859.00 305144 Treatment Plant 415010 43020 $402.58 93902 Fire Station #2 -Lift Station Service 415010 41200 $206.00 Total for Check 404076: $13,361.58 --------···---- 404077 04-Apr-19 6 AGRICULTURAL PEST CONTROL 486301 Parks: pest control 414040 41200 $855.00 404078 04-Apr-19 1428 AIRGAS USA, LLC 9086716531 Pool CO2 203020 45200 $315,78 404079 04-Apr-19 196 AIRGAS WEST 9960368699 Medical Oxygen 503050 47500 $440.85 )> 9086478612 Medical Oxygen 503050 47500 $294.61 -i Total for Check 404079: $735.46 -i )> -----------0 404080 04-Apr-19 577 ALLIANT INSURANCE SERVICES, INC. CSD Q1-2019 Special Event lns-Q1 2019-CSD F1000 86320 $9,214.76 ::c ---------------s: 404081 04-Apr-19 721 AMERICAN TECHNOLOGIES, INC. BC64304715-001 Community Center: sewer mitigation 415010 41200 $3,728.10 m--· ------·----·-z 404082 04-Apr-19 499 ARAMARK UNIFORM SERVICES INC 21484338 Dock Uniforms 202020 49280 $888.10 -i m 21488757 Dock Uniforms 202020 49280 $304.89 Total for Check 404082: $1,192.99 404083 04-Apr-19 1207 ARROW INTERNATIONAL INC. 9501068597 Medical Supplies 503050 47400 $1,201.95 404084 04-Apr-19 835 AT&T 12730811 BAN 9391026541 02/01/19-03/09/19 430050 23010 $20.72 12730817 BAN 9391026549 02/10/19 -03/09/19 423040 22000 $20.72 12792165 BAN 9391050366 02/20/19 -03/19/19 430050 23010 $1,048.87 12802419 BAN 9391026565 Station 3 2/24-3/23/19 501050 33010 $58.87 ---·---------···--------- 12812527 BAN 9391026553 Station 2 2/27-3/26/19 501050 33010 $97,02 Total for Check 404084: $1,246.20 404085 04-Apr-19 1042 BLUE TARP CREDIT SERVICES 42267042 Canopy 414040 47600 $409.98 42267049 Spot sprayer 414040 47900 $229.98 Total for Check 404085: $639.96 404086 04-Apr-19 408 BOOT WORLD INC 10968 Uniform Boots-P. Sumagaysay 202020 49280 $200.00 404073 04-Apr-19 999995 BORJAS, WALTER 2013352.001 Permit 21530 Deposit Refund 208020 74710 $200.00 May 7, 2019, Item #1.2Register of Demands: Page: 2 of 11 Warrants from 4/1/2019 -4/5/2019 Check Check Payee/ Number Date Vendor# Payee'Yendor Name Invoice Number Description Org Object Project Check Amount .... 404087 04-Apr-19 1126 CALIFORNIA SAFETY PRODUCTS CX) 2018-121 (96) T-shirts -long and short sleeves F1000 81350 $1,064.84 0 .... 2018-125 (96) T-shirts long sleeve F1000 81350 $595.59 Total for Check 404087: $1,660.43 "' CX) 404088 04-Apr-19 55 CALOL YMPIC SAFETY 376368 (32) Rain Jackets and logo fee F1000 81350 $1,588.22 905075 03-Apr-19 788 CALPERS PERS PE2019-06 PERS EFT PE2019-06 F1000 87100 $125,037.36 PERS PE2019-06 PERS EFT PE2019-06 111010 13140 $0.83 Total for Check 905075: $125,038.19 404089 04-Apr-19 2005 CARRICO, RICHARD KIICPresenter-04/13 Kumeyaay Presenter-04/13/19 207020 41200 $150.00 404090 04-Apr-19 1094 COMMERCIAL AQUATIC SERVICES 119-0953 Pool Acid 203020 45200 $629.86 119-0958 Pool Chlorine 203020 45200 $1,165.88 Total for Check 404090: $1,795.74 404091 04-Apr-19 1746 CORRADO INDUSTRIAL 7402 (24) Caution Tapes F1000 81350 $141.97 404092 04-Apr-19 286 COSTCO WHOLESALE 775126495 Comm Park Janitorial Supplies 208020 47200 $52.08 ----... ·--·· - 404093 04-Apr-19 624 CRAFCO INC. 9402006726 Crack Seal 411040 43201 $7,224.66 9402008877 Repairs to crack seal machine 413010 47900 $74.40 Total for Check 404093: $7,299.06 --·----------· 905070 02-Apr-19 942 DEPT. OF CHILD SUPPORT SERVICES CLD WH PE2019-07 Payroll Garnishment F1000 86150 $2,079.67 ·------· ··-· 905069 02-Apr-19 97 EMPLOYMENT DEVELOPMENT CAL WH PE2019-07 CAL W/H EFT PE#2019-07 F1000 86170 $24,371.29 DEPARTMENT 404095 04-Apr-19 350 EWlNG IRRIGATION 7008678 Lake Poway: irrigation supplies 414040 47700 $547.60 ----·-·----- 7001511 Valle Verde Park: irrigation supplies 414040 47700 $212.00 Total for Check 404095: $759.60 404096 04-Apr-19 102 FEDEX 6-490-59324 Shipment: RMA#18339173 501050 43080 $16.91 ------- -. --- 404071 04-Apr-19 999998 FISH, PATRICIA Mileage 3/28 Patty Fish Mileage Reimbursement 3/28/19 80001004 P1000 $63.32 404097 04-Apr-19 27 FLEET PRIDE/ASSOCIATED TRUCK 23559386 Unit #7 Vactor 413010 47900 $156.99 PARTS . ----------404098 04-Apr-19 1380 FLYERS ENERGY LLC CFS-1865755 Safety Services fuel 3/1 /19 -3/15/19 413010 31020 $488.70 - - - ----· -- 404099 04-Apr-19 1706 FRANCHISE TAX BOARD PPE 3/24/19 Payroll Garnishment F1000 86150 $100.00 --------· ....... ··----- 404100 04-Apr-19 120 GRAINGER INC 9121844659 (2) Chemical Resistant Gloves F1000 81350 $44.83 ·------------- 9056637128 Batteries D and AA F1000 81350 $72.73 Total for Check 404100: $117.56 404101 04-Apr-19 483 HANSON AGGREGATES PACIFIC 1987014 2.51 Tons of 1/2" Asphalt 411040 45900 $154.14 SOUTHWlEST, INC ---· ·------ 1984512 Crushed Aggregate Base 411040 45900 $579.81 Total for Check 404101: $733.95 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/1/2019 -4/5/2019 Payee/ Check Number Check Date Vendor# PayeeNenc:ior Name. . . . ..., 404102 CD 0 -w 00 ·-· ...•. ··-··-·· ------- 404074 905073 404103 404104 404105 404106 905071 404107 404108 04-Apr-19 152 HOME DEPOT COMMERCIAL ACCOUNT 04-Apr-19 999995 01-Apr-19 906 04-Apr-19 129 04-Apr-19 547 04-Apr-19 391 04-Apr-19 449 01-Apr-19 616 04-Apr-19 175 04-Apr-19 84 HOVLAND, WENDY ...... ., .. _, __ ····-•-·--·-............ --·-• INSIGHT NORTH AMERICA LLC -..... , .. -... ~ JRC PRINTING LLC LAUTZENHISER'S STATIONERY LIFE-ASSIST, INC. LYNN WOLSEY DESIGNS MANUFACTURERS & TRADERS TRUST CO.BANK NAPA AUTO PARTS/POWAY OFFICE DEPOT BUSINESS SERVICES DIVISION Invoice Number 5211008 4211017 6210997 5211006 7223768 2013354.001 22780A 38959 38994 12305 906452 PowProgressMarch19 ··~--------" .. '_,. -' .. ' 457 THRU 3/24 365494 Description Paint supplies Graffiti abatement R-8 Level Sensor Parts Weather Station Repair Parts Pipe bushing and elbow Deposit Refund Permit# 21552 Investment Advisory Services Feb 2019 Printing Lake Flyers Business Cards: Thomas Archive Record Paper EMS Medical Supplies Poway Progress Design-03/19 ICMA 457 employer contrib thru 3/24/19 Unit #510 filters 365493 Re-stock filters 365857 Stock: filters 366590 367063 290601470-001 290601470-001 294047758-001 Unit #29 air pump Shop supplies Office Supplies Office Supplies PCPA Office Supplies 291136602-001 Supplies 291136602-001 Supplies 295364978-001 295364825-001 289231334-001 294314808-001 291840690-001 291840690-001 253687804-001 Clipboards Laminating pouches Lake Poway Day Camp Supplies Office Supplies Lake & Blue Sky Office Supplies Lake & Blue Sky Office Supplies Lake Office Supplies Page: 3 of 11 Org Object Project Check Amount 430050 47600 $12.20 414040 47600 $90.59 402060 47600 $16.64 402060 47600 $30.71 411040 47600 $12.68 Total for Check 404102: $162.82 205020 74710 $200.00 111010 17999 $2,974.78 202020 49220 $34.48 305030 49220 $34.48 Total for Check 404103: $68.96 101010 47100 $298.88 503050 47400 $1,705.85 205020 41200 $100.00 F1000 86120 $4,603.83 413010 47900 $26.94 .. , ---·· ---•----, -- 413010 47900 $122.17 413010 47900 $79.52 413010 47900 $159.58 413010 47600 $3.23 Total for Check 404107: $391.44 112010 47100 $24.91 .. ~-------•--. 111010 47100 $44.43 204020 47100 $69.58 --·-··" --.. -~_, .. ,,,·.-·. 414040 47600 $5.80 -.. ,. "'"""·-···--- 410060 47100 $68.95 500050 47100 $42.15 • • •• ••• ro· •---•-' -••• 500050 47100 $15.69 202020 47600 $86.79 101010 47100 $204.69 202020 47100 $45.31 207020 47100 $31.20 202020 47100 $13.57 May 7, 2019, Item #1.2Register of Demands: Page: 4 of 11 Warrants from 4/1/2019 -4/5/2019 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number Description Org Object Project Check Amount ., 404108 04-Apr-19 84 OFFICE DEPOT BUSINESS SERVICES 253688095-001 Lake Office Supplies 202020 47100 $48.86 0 DIVISION 0 ... 297066250-001 Office Supplies 101010 47100 $72.32 $11.52 c., 254899759-001 Lake Office Supplies 202020 47100 Q) 255883097-001 Lake Office Supplies 202020 47100 $22.17 269261776-001 Lake Office Supplies 202020 47100 $72.41 269489029-001 Lake Office Supplies 202020 47100 $4.00 269489538-001 Lake Office Supplies 202020 47100 $54.75 252598152-001 PCPA Office Supplies 204020 47100 $34.36 252598903-001 PCPA Office Supplies 204020 47100 $51.03 Total for Check 404108: $1,024.49 404072 04-Apr-19 999998 OLIVAS, EMANUEL FY19 Boots Olivas Seasonal boot allowance reimbursement 411040 47600 $100.00 404109 04-Apr-19 896 PALOMAR BACKFLOW PREVENTION 4279 Back.flow Prevention Device 421040 41200 $40.00 SPECIALIST, INC. 4279 Back.flow Prevention Device 424140 41200 $40.00 4279 Back.flow Prevention Device 425040 41200 $40.00 4279 Backflow Prevention Device 425140 41200 $40.00 4278 Backflow Prevention Device 421040 41200 $200.00 --·--··---·--. -" -"·----·--------- 4278 Backflow Prevention Device 421140 41200 $40.00 ··-··-·-· __ .. ,. __ , ____ , ___ ----· ·------·--·-····--- 4278 Backflow Prevention Device 423040 41200 $360.00 .. ---· --------··------·-- - ----.. -------·------- 4278 Backflow Prevention Device 424040 41200 $120.00 ----------------- 4278 Back.flow Prevention Device 425140 41200 $40.00 ··--.. --'"" ... -.---..... ___ . ··-------- 4278 Backflow Prevention Device 426040 41200 $40.00 -._, _____ - 4275 83-1 B Irrigation pump 421140 47700 $691.81 ----------- 4274 86-2B irrigation pump 424140 47700 $470.19 -----·-------· Total for Check 404109: $2,122.00 . ----·-.... _ - 404110 04-Apr-19 194 PARKHOUSE TIRE INC 3010291941 Unit #951 Red Fleet 413010 47900 $1,047.35 -----~ ------------------· - 3010293065 Unit #7 Vactor 413010 47900 $1,197.52 " ---------·-· ____ ,. Total for Check 40411 O $2,244.87 ------. ------~-···---·· ··-·--------____ _, __ , ___ - -- ._ ---·--------__ ., __ 404111 04-Apr-19 1908 PEATTIE, PEGGY 03.18.19 Photography for Community Services Guide 200020 41200 $250.00 ---· --------·--. --------------. .. -----------··---. " ... --------404112 04-Apr-19 25 POWAY CENTER FOR THE PERFORMING 03242019 Poway Onstage Ticket Sales Transfer -PCPA F1000 86330 $6,419.00 ARTS FOUNDATION ··-·-----~--- 03312019 Poway Onstage Ticket Sales Transfer -PCPA F1000 86330 $1,728.00 --------------·-··-··--··· Total for Check 404112 $8,147.00 -. ---·-------------__ .,_ .. ___ ·----------. --._ --~---------··-·---------------· ----. 404113 04-Apr-19 265 POWAY FIREFIGHTERS ASSOCIATION DUES PPE 3/24/19 Fire Association dues for PPE 3/24/19 F1000 86100 $2,316.00 404114 04-Apr-19 404 POWAY HISTORICAL MEMORIAL SOCIETY SchoolTours 03/05-21 School Tours (03/05-03/21/19) 205020 41200 $242.00 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/1/2019 -4/5/2019 Page: 5 of 11 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number Description Org Object Project Check Amount "' 404115 04-Apr-19 270 POWAY MIDLAND RAILROAD SchoolTours 03/05-21 School Tours (03/05-03121/19) 205020 41200 $363.00 ~ VOLUNTEERS 0 404116 04-Apr-19 274 POWAY SENIOR CENTER -1010 Phone/cable reimbursement 3/15/19 -4/14/19 114010 33010 $250.00 "' 00 1010 Phone/cable reimbursement 3/15/19 -4/14/19 114010 22000 $98.79 Total for Check 404116 $348.79 404117 04-Apr-19 1058 R & B PINTO PROPERTIES LLC LKCONC03/18-03/24 Wkly Lake Conc-03/18-03/24/19 F1000 86360 $4,335.30 404075 04-Apr-19 999995 RAMOS, MIRNA EDITY 2013355.001 Deposit Refund Permit #21380 208020 74710 $200.00 404118 04-Apr-19 205 REGIONAL TRAINING CENTER 15150 Supervisor's Academy: October 2018 121010 14020 $1,699.20 404119 04-Apr-19 1669 RELIANT AQUARIUM DESIGN INC. 19204 Aquarium Maintenance 206020 43040 $65.00 19147 Aquarium Maintenance 206020 43040 $65.00 Total for Check 404119 $130.00 -···--·-·----·- 404120 04-Apr-19 638 ROCHESTER MIDLAND CORPORATION INV00105663 Sanor Mark V 415010 41400 $704.49 ---····--·-·····- 404070 04-Apr-19 999996 RURAUMETRO 100134 Ambulance Refund RE: 18364810 503050 77550 $1,633.31 404121 04-Apr-19 230 RUTAN AND TUCKER 833051 Professional services through 2/28/19 80001001 P1000 $199.50 -----·----- 833052 012782-0005 Professional Service through 102010 17010 $12,000.00 2/28/19 833053 012782-0009 Professional Service through 102010 17020 $1,846.50 2128/19 833054 012782-0011 Professional Service through 102010 17010 $1,305.00 2128/19 -..... ----·-·--. 833055 012782-0015 Professional Service through 102010 17020 $67.50 2128/19 - ---· --------·. -- 833056 012782-0016 Professional Service through 102010 17020 $67.50 2/28/19 833059 012782-0027 Professional Service through 102010 17020 $585.00 2/28/19 .... ·-·-··· __ ., ______ -- 833060 012782-0029 Professional Service through 102010 17010 $12,622.50 2128/19 Total for Check 404121: $28,693.50 ----···-· -···--··-·-"-------··--___ , 404122 04-Apr-19 79 SAN DIEGO COUNTY TAX COLLECTOR 32110024 12/18 4/19 One Time Property Tax for Acquisition 80002523 P2520 $288.58 ----------·· ----'·--------------······--------------··-··-----· ··-----·--.,. -··--- - --·-404123 04-Apr-19 79 SAN DIEGO COUNTY TAX COLLECTOR 3211002212/18 4/19 One Time Property Tax for Acquisition 80002523 P2520 $288.58 ---------·---------------·-. -----------·----------· ----------------·-404125 04-Apr-19 221 SAN DIEGO GAS & ELECTRIC 95321310795-03/19 Station 3 Gas & Electric 501050 21010 $3,436.53 ... --··· ______ ,,_ 48262466316-03/19 12490 1/2 Old Pomerado Road 02/11/19-414040 21010 $85.49 03/13/19 11183824070-03/19 16275 Espola Road 02/10/19 -03/12/19 414040 21010 $10.00 -·-· -·-·--·------------·--. ---·-·--. ------ 37325763074-003/19 12207 Old Pomerado Road 02/10/19-03/12/19 414040 21010 $25.45 ------___ ,, _________ . 48301450768-03/19 14283 Silver Ridge Road 02/10/19 -03/12/19 414040 21010 $11.00 ---····--·-· -------------- 07047022786-03/19 Fire Training Tower 2/10/19-3/12/19 501050 21010 $2,645.96 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/1/2019 -4/5/2019 Check Number N 404125 ., a c., "' Check Date 04-Apr-19 Payee/ Vendor# PayeeNendor Name 221 SAN DIEGO GAS & ELECTRIC Invoice Number 41639610229-03/19 712609287 49-03/19 94601424467-02/19 82465424855-03/19 82475997643-03/19 48731411075-03/19 487 45089461-03/19 64025166945-03/19 71205215723-03/19 83800796106-03/19 89922224091-03/19 937 46846063-03/19 99522976016-03/19 25808256922-03/19 25808266178-03/19 25816724085-03/19 48321383007-2/19 Description 15001 Highway 67 MP 02/10/19 -03/12/19 150031/2 Pomerado Road 02/12/19-03/14/19 Usage Bill, (2311, 01/10/19-02/10/19) Org 414040 414040 403070 14795 1/2 Silverset Street 02/12/19 -03/14/19 414040 133061/2 Midland Road 02/12/19-03/14/19 414040 12900 Twin Peaks Road 02/12/19-03/14/19 414040 13100 Poway Road 02/12/19 -03/14/19 414040 13544 Aubrey Street 02/12/19 -03/14/19 414040 13221 Midland Road 02/12/19 -03/14/19 414040 141551/2 Pomerado Road 02/12/19-03/14/19 414040 14038 Midland Road 02/12/19 -03/14/19 414040 137431/2 Carriage Road 02/12/19-03/14/19 414040 14401 Pomerado Road 02/12/19-03/14/19 PW OPS: 2-10-19 to 3-12-19 14445 Lake Poway Rd 2/10/19-3/12/19 13552 Highlands Ranch Rd 2/10/19-3/12/19 12910 Camino Del Valle 2/10/19-3/12/19 82015538790-03/19 13621 Gregg St 2/10/19-3/12/19 414040 410060 402060 403070 403070 405060 403070 403070 430050 ----------------·---------,_ _____ _ 84321647992-03/19 17710 1/2 Old Coach Rd 2/10/19-3/12/19 18775 1/2 Heritage Dr 2/10/19-3/12/19 15401 1/2 Pomerado Road 2/13/19-3/15/19 96907731131-03/19 15011872037-03/19 71260928749-12/18 82081137485-03/19 150031/2 Pomerado Road 11/12/18-12/12/18 414040 15498 Es pol a Road 2/10-03/12/19 204020 404124 04-Apr-19 218 SAN DIEGO GAS & ELECTRIC/SUNDRY 04920133400-03/19 WTP & Pump Stations 2/10/19-3/12/19 WTP & Pump Stations 2/10/19-3/12/19 WTP & Pump Stations 2/10/19-3/12/19 WTP & Pump Stations 2/10/19-3/12/19 WTP & Pump Stations 2110/19-3/12/19 WTP & Pump Stations 2/10/19-3/12/19 WTP & Pump Stations 2/10/19-3/12/19 WTP & Pump Stations 2/10/19-3/12/19 WTP & Pump Stations 2/10/19-3/12/19 402060 402060 402060 402060 402060 402060 402060 402060 402060 04920133400-03/19 04920133400-03/19 04920133400-03/19 04920133400-03/19 04920133400-03/19 04920133400-03/19 04920133400-03/19 04920133400-03/19 Object 21010 21010 21053 21010 21010 21010 21010 21010 21010 21010 21010 21010 21010 21010 21056 21048 21042 21058 21055 21060 21020 21010 21010 Project Page: 6of11 Check Amount $10.00 $10.06 $518.79 $254.92 $46.36 $11.20 $10.00 $915.31 $41.11 $11.20 $98.42 $152.79 $213.49 $1,630.24 $3,743.85 $113.52 $3,238.63 $549.71 $1,340.89 $96.98 $10.68 $9.00 $4,183.98 Total for Check 404125: $23,425.56 21010 21041 21043 21049 21050 21051 21052 21054 21057 $647.83 $3,284.58 $579.24 $1,207.24 $539.24 $7,564.97 $2,292.64 $2,012.81 $351.43 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/1/2019 -4/5/2019 Check Check Payee/ Number Date Vendor# t\l 404124 04-Apr-19 218 w 0 -w 00 404126 04-Apr-19 201 404127 04-Apr-19 227 ------·---·-· ··-·"'"''""-·-·····- 404128 04-Apr-19 711 . -. ----"" -~"~~~-~'""''' -----· . .,,._, . 404129 04-Apr-19 256 404130 04-Apr-19 954 404131 04-Apr-19 166 ---~---·---.... ----------'"" 404132 04-Apr-19 776 PayeeNendor Name Invoice Number Description SAN DIEGO GAS & ELECTRIC/SUNDRY 04920133400-03/19 wrP & Pump Stations 2/10/19-3/12/19 04920133400-03/19 wrP & Pump Stations 2/1 0/19-3/1 2/19 04944440039-03/19 Special Districts -March, 2019 04944440039-03l19 Special Districts -March, 2019 04944440039-03/19 Special Districts -March, 2019 04944440039-03/19 Special Districts -March, 2019 04944440039-03/19 Special Districts -March, 2019 04944440039-03/19 Special Districts -March, 2019 04944440039-03/19 Special Districts -March, 2019 -·-·'"···-···--------- 04944440039-03l19 Special Districts -March, 2019 04944440039-03/19 Special Districts -March, 2019 . ·-- SAN DIEGO HUMANE SOCIETY AND 04-01-19-ACP April 2019 Animal Control Services SPCA ••••<•-••••• ••• •••-·•-• SAN DIEGO PADRES 325344 Lake Poway Day Camp -Petco Park Admission-3/19/19 -··· 325344 Lake Poway Day Camp -Petco Park Admission-3/19/19 ·-· ···-··-····-----~~ ~~-····· -•-- SAVMART PHARMACEUTICAL SERVICE 614523 EMS Medications ••• ••-•••~••-••--~--+•-•"•~c--•--•-.. ~-•-, __ ,.,. •••-~•~"•••~ ----·--·---.,,, ------.. --,··~··· .. --······-···· ··- SENTRY FENCE COMPANY 5597 Poway Grade fence repair SIEMENS INDUSTRY INC 5610141349 Traffic Signal System Maintenance 5620023284 Valle Verde Park 5620024250 Traffic Signal System Maintenance 5610148973 Street Light Maintenance 5620021802 Street Light response Feb, 2019 5620021617 Parking Lot Response February 2019 5610161260 Traffic Signal System Maintenance SITEONE LANDSCAPE SUPPLY 89578796-001 Connector sealing pack Red Fleet parts SOUTH COAST EMERGENCY VEHICLE 493442 SERVICE -----··· 493447 493500 493456 Red Fleet parts Red Fleet gasket Red Fleet 2.5" ball Page: 7of11 Org Object Project Check Amount 402060 21059 $443.01 402060 21061 $1,059.90 421040 21010 $67.33 423040 21010 $43.22 424040 21010 $22.82 425040 21010 $32.80 426040 21010 $98.28 424140 21010 $22.20 425140 21010 $22.20 421240 21010 $10.80 430050 21020 $1,187.70 Total for Check 404124: $21,490.24 200020 41010 $20,062.96 202020 47600 $930.00 202020 47600 $434.00 Total for Check 404127: $1,364.00 503050 47400 $815.38 411040 41200 $2,400.00 430050 43260 $2,270.00 430050 43270 $412.08 --~ •----.. --.. ··- 430050 43260 $4,267.32 430050 43270 $3,557.01 430050 43270 $10,550.19 ,,_,., _____ ...,... , 430050 43270 $1,888.92 ,o_ ••••' ••---••••••• •-•-••• •- 430050 43260 $3,816.96 Total for Check 404130: $26,762.48 •••••• ,a_,,,~'"'••• 414040 47700 $535.95 413010 47900 $585.28 -... ~-,..·---- 413010 47900 $497.18 . ., ~ .. '"'" ._,,. .. , .. __ ,' 413010 47900 $210.69 413010 47900 $84.05 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/1/2019 -4/5/2019 Page: 8 of 11 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number Description Org Object Project Check Amount "' 404132 04-Apr-19 776 SOUTH COAST EMERGENCY VEHICLE 493474 Red Fleet 2.5" ball 413010 47900 $97.47 .... SERVICE 0 Total for Check 404132: $1,474.67 -.., 404133 04-Apr-19 528 STATEWIDE SAFETY & SIGNS, INC 01004840 Custom signs 414040 45300 $334.03 00 01004893 (10) Signs 411040 45300 $247.83 Total for Check 404133: $581.86 404134 04-Apr-19 984 STEVEN ENTERPRISES INC. 0411630-IN Plotter printer supplies 413010 47600 $136.23 0411630-IN Plotter printer supplies 402560 47600 $136.22 0411630-IN Plotter printer supplies 403570 47600 $136.23 Total for Check 404134: $408.68 404135 04-Apr-19 1352 SYNCS/AMAZON 8781042209-3/19 Amazon.com Purchases 410060 47100 ($64.07) 8781042209-3/19 Amazon.com Purchases 80002861 P2860 $205.37 8781042209-3/19 Amazon.com Purchases 112010 47100 ($12.35) 8781042209-3/19 Amazon.com Purchases 113010 47600 ($66.47) 8781042209-3/19 Amazon.com Purchases 415010 47600 $3.34 8781042209-3/19 Amazon.com Purchases 415010 47600 $860.44 ·-·· ---·-·-·-"- 8781042209-3/19 Amazon.com Purchases 305030 47100 $11.42 8781042209-3/19 Amazon.com Purchases 111010 47100 ($17.89) 8781042209-3/19 Amazon.com Purchases 112010 47100 ($80.19) 8781042209-3/19 Amazon.com Purchases 112010 47100 ($70.48) 8781042209-3/19 Amazon.com Purchases 113010 47600 ($90.16) 8781042209-3/19 Amazon.com Purchases 113010 47600 ($73.46) 8781042209-3/19 Amazon.com Purchases 80002861 P2860 $98.71 8781042209-3/19 Amazon.com Purchases 306030 47600 $73.21 8781042209-3/19 Amazon.com Purchases 401060 47600 ($78.84) 8781042209-3/19 Amazon.com Purchases 80002861 P2860 ($82.75) 8781042209-3/19 Amazon.com Purchases 410060 47100 ($150.71) -··-· ---···-·- 8781042209-3/19 Amazon.com Purchases 403570 47100 ($212.65) 8781042209-3/19 Amazon.com Purchases 114010 47600 ($114.33) -------------------------- 8781042209-3/19 Amazon.com Purchases 114010 47600 ($131.19) .. ---------- 8781042209-3/19 Amazon.com Purchases 114010 47600 ($113.36) Total for Check 404135: $2,078.59 404094 04-Apr-19 839 THE MARIDEN CORPORATION 1010 Staff Uniforms 204020 49280 $415.12 404136 04-Apr-19 1041 T-MAN TRAFFIC SUPPLY 9095 Sign materials 411040 45300 $1,697.06 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/1/2019 -4/5/2019 Check Check Payee/ Number Date Vendor# PayeeNendor Name N 905068 01-Apr-19 941 U.S. DEPT. OF THE TREASURY (JI 0 -(.,) Q) 404137 04-Apr-19 877 ULINE 404138 04-Apr-19 1580 UNIFlRST CORPORATION Invoice Number FED WH PE2019-07 FED WH PE2019-07 106618105 361 0062335 361 0062336 361 0062337 361 0062494 361 0061695 361 0056633 361 0063154 361 0063152 361 0063153 361 0056803 361 0055990 361 0055990 361 0063158 361 0063158 361 0063157 361 0063155 361 0063156 361 0063313 361 0063313 361 0063314 361 0063310 361 0063310 361 0063317 361 0063319 361 0063318 361 0063318 361 0063315 361 0063316 361 0063320 Description FED W/H EFT PE#2019-07 FED W/H EFT PE#2019-07 Sign Fire Station 1 mats/towels Fire Station 2 mats/towels Fire Station 2 mats/towels Uniforms Weekly Rental Fee Uniforms Rental Fee Meadowbrook Gym: mats and mops Meadowbrook Gym: mats and mops Senior Center: mats City Hall: mats Uniforms Rental Fee Mats, Uniforms & Wipes Rental Fee Mats, Uniforms & Wipes Rental Fee Org F1000 F1000 414040 501050 501050 501050 402560 402560 415010 415010 415010 415010 401060 415010 413010 Community Park: mats South Parks: uniforms 41501 O Community Park: mats South Parks: uniforms 414040 Fire Station 3 mats/towels Fire Station 1 mats/towels Fire Station 2 mats/towels Uniforms Weekly Rental Fee Uniforms Weekly Rental Fee Uniforms Weekly Rental Fee Mats, Uniforms & Wipes Mats, Uniforms & Wipes Uniforms Rental, 1 Damage Pant, Oxley Uniforms Weekly Rental Fee Uniforms & Mats Rental Fees Uniforms & Mats Rental Fees Uniforms Weekly Rental Fee Facilities: uniforms Parks North: uniforms 501050 501050 501050 415010 410060 405060 415010 413010 402560 401060 415010 402060 403570 415010 414040 Page: 9 of 11 Object Project Check Amount 86160 $67,012.23 86180 $20,362.08 Total for Check 905068: $87,374.31 45300 $125.19 49280 $29.88 49280 $21.89 49280 $43.51 49280 $37.07 49280 $37.07 41200 $26.31 41200 $26.31 41200 $14.77 41200 $17.21 49280 $34.25 41200 $8.81 49280 $46.02 41200 $47.95 49280 $19.48 49280 $43.51 49280 $29.88 49280 $21.89 ············-·-·········---- 41200 $1.22 49280 $4.14 49280 $5.44 41200 $8.81 ... ----· -' . - 49280 $46.37 49280 $56.30 49280 $34.25 41200 $8.54 49280 $24.94 49280 $31.60 49280 $8.83 49280 $26.88 May 7, 2019, Item #1.2Register of Demands: Page: 10of11 Warrants from 4/1/2019 -4/5/2019 Check Check Payee/ Org Object Project Check Amount Number Date Vendor# PayeeNendor Name Invoice Number Description N 404138 04-Apr-19 1580 UNIFIRST CORPORATION 361 0063321 Public Works: mats 415010 41200 $6.45 a, 0 361 0063322 Twin Peaks Gym: mats and mops 415010 41200 $11.37 -"' 361 0063323 Lake Poway Dock: mats ()I) 415010 41200 $9.89 361 0063311 Stormwater: uniforms 412040 49280 $95.45 ---·--------- 361 0063312 Streets: uniforms 411040 49280 $51.21 361 0061835 PCPA Weekly Mat Service 204020 49280 $9.63 361 0062632 PCPA Weekly Mat Service 204020 49280 $9.63 361 0057737 PCPA Weekly Mat Service 204020 49280 $9.63 Total for Check 404138: $966.39 404139 04-Apr-19 1500 UNION BANK 0008-3/19 March 2019 Credit Card Statement 504050 49370 $1,840.27 905074 02-Apr-19 36 UNION BANK OF CALIFORNIA 3135G0U35 Purchase Fannie Mae Maturity 6-22-21 F1000 82130 $2,000,000.00 3135G0U35 Purchase Fannie Mae Maturity 6-22-21 F1000 82131 $17,500.00 , --··-------- 3135G0U35 Purchase Fannie Mae Maturity 6-22-21 F1000 82290 $15,277.78 Total for Check 905074: $2,032,777.78 905072 01-Apr-19 334 UNION BANK-SAN DIEGO Disc Ben 0319 Flexible Spending Register Mar 2019 F1000 80050 $12,543.25 -.. --------- Disc Ben 0319 Flexible Spending Register Mar 201 9 F1000 80050 ($12,543.25) -- ------ Disc Ben 0319 Flexible Spending Register Mar 2019 F1000 86190 $12,543.25 . ---·------- 404140 04-Apr-19 659 VALLEY POWER SYSTEMS, INC. C83629 Coolant for heavy duty trucks 413010 47900 $270.56 -------------------~----------------------·----··----··· --------------------------- 404141 04-Apr-19 321 VERIZON WIRELESS 9825676981 Safety Services -iPads, Cell, wifi, mifi 503050 22000 $304.08 -·~--------- 9825676981 Safety Services -iPads, Cell, wifi, mifi 500050 33011 $38.01 -------·--------·--- 9825676981 Safety Services -iPads, Cell, wifi, mifi 503050 22000 $304.08 . -·-·-· ---.... 9825676981 Safety Services -iPads, Cell, wifi, mifi 500050 33011 $38.01 ----------- 9825676981 Safety Services -iPads, Cell, wifi, mifi 500050 33011 $42.98 ----·-····-··- 9825676981 Safety Services -iPads, Cell, wifi, mifi 501050 33011 $5.83 -------------- 9825676981 Safety Services -iPads, Cell, wifi, mifi 502050 33011 $42.98 ------------------. --------- 9825676981 Safety Services -iPads, Cell, wifi, mifi 504050 47600 $38.55 Total for Check 404141: $814.52 404142 04-Apr-19 259 VILLAGE LOCK AND KEY 15242 Keys 414040 43040 $38.98 ------· ----------- 404143 04-Apr-19 260 VILLAGE NURSERIES 512141 Valle Verde: plant material 414040 47700 $3,953.90 -----·· -·--· -----------·-------------- 404144 04-Apr-19 474 VIP JANITORIAL SERVICE 5289 PCPAJanitorial March 2019 204020 41400 $3,460.80 5290 PCPA Janitorial Supplies 204020 47200 $237.11 Total for Check 404144: $3,697.91 404145 04-Apr-19 272 WAXIE 78110430 Janitorial Supplies 501050 47200 $81.08 May 7, 2019, Item #1.2Register of Demands; Page: 11of11 Warrants from 4/1/2019-4/5/2019 Check Check Payee/ Number Date Vendor# PayeeNe~dor Name Invoice Number Description Org Object Project Check Amount "' 404145 04-Apr-19 272 WAXIE 78128074 Janitorial Supplies 501050 47200 $484.23 ... 0 -78138927 Community Center: sanitaiy supplies 415010 47200 $36.98 c., 78141138 Janitorial supplies 501050 47200 $44.61 00 Total for Check 404145: $646.90 404147 04-Apr-19 280 WESTERN MOWER AND ENGINE 63452 Unit #411-110 413010 47900 $26.28 404146 04-Apr-19 779 WEST-MARK P99644-0001 Unit #930 Red Fleet 413010 47900 $397.07 404148 04-Apr-19 1573 ZORC TOOLS, INC. INV5717041 (8) Pilot oversock boots F1000 81350 $122.16 Register Total: $2,514,251.15 Director of Finance ApproveLl:v:,,,.,,.,..~oSl-c~ Date: ---''-J----'~-'-d--_-,__J 9_,__ ____ _ May 7, 2019, Item #1.2E) The City of Poway Director of Finance Submits the Following Register of Demands Run Date: 18-Apr-19 for the period 4/8/2019 -4/1212019 and Recommends its Ratification/Approval: N 00 0 Check Check Payee/ Org Object Project Check Amount -Number Date Vendor# ~ay~_E:Nendor Name Invoice Number Descrip~i~.~ "' 00 404162 12-Apr-19 888 211 SAN DIEGO 2952 211 San Diego FY18-19 -3rd Quarter 80002413 P2410 $3,283.80 404163 12-Apr-19 506 AO REED&CO 303958 Silverset Par!<: flush valves and ball valves 415010 41200 $3,800.00 ---,, ____ --- 305505 Hamburger Factory work order 415010 41200 $396.06 305484 Fire Station #2 pump 415010 41200 $552.95 305348 Library work order 415010 41200 $619.52 93903 Heating and AC Maintenance 206020 43020 $1,078.66 93905 Heating and AC Maintenance 415010 43020 $5,477.67 s-. ------------- 305215 Water Treatment Plant: shower 415010 41200 $1,982.00 305577 Lake Poway Community Services: repair 415010 43020 $91.00 Total for Check 404163: $13,997.86 -·-· -------- 404164 12-Apr-19 1779 ACE ELECTRIC, INC 2190121-PP4 Electrical Upgrades Project -Community Park 80006172 P6170 $6,871.54 404165 12-Apr-19 2003 ADS LLC INV-07865 Flow/Level Monitor, Manholes, Echo 403570 61999 $3,410.26 ► 404166 12-Apr-19 815 AFLAC -i 823976 insurance Premiums: March 2019 F1000 86140 $663.33 -i --___ ,,_ --·-· --·-., .. --· ► 404167 12-Apr-19 5 AGRI SERVICE 90216 Mulch 414040 47700 $851.50 o------·----··------"··-. ---· -- :I: 404168 12-Apr-19 196 AIRGAS WEST 9086627138 First Aid Kit Replenishment 410060 47500 $164.14 s: 9086928056 Medical Oxygen m 503050 47500 $193.08 z 9086878463 Medical Oxygen 503050 47500 $182.07 -i ------C) Total for Check 404168: $539.29 ----·--------···--------·-· 404169 12-Apr-19 577 ALLIANT INSURANCE SERVICES, INC. PCPA 01 -2019 Special Event Insurance 01 -2019-PCPA F1000 86320 $507.00 ----------------------------------------·--•-. -------- 404170 12-Apr-19 683 ALLSTAR FRESH WATER SYSTEMS, INC. 302209 Station 1 filtered water 501050 43040 $95.36 - -----------·--·--· ----------------------·---------------. -.. 404171 12-Apr-19 13 AMERICAN PUBLIC WORKS 98026 APWA Membership -Thomas Frank, City 305030 49240 $227.00 ASSOCIATION Engineer --·-·-----------· -·-··--------- 404172 12-Apr-19 1644 AMP UNITED LLC 2190152-PP4 Buehler Reservoir Rehabilitation 80005106 P5100 $87,685.57 "----------. -~------------ 404174 12-Apr-19 470 AQUA-METRIC SALES CO INV0073006 (16) OMNI Water meters F5100 81350 $28,012.42 -------------------------'" . ---·---·------------· -------·-·" ··---~---·------404175 12-Apr-19 21 ARAMARK REFRESHMENT SERVICES 6942238 Fire Stations Coffee 500050 47600 $465.07 . -------·-·--·- 1582408 Lake Coffee Service 202020 47600 $97.26 Total for Check 404175: $562.33 ·---·-·-· ---------.. --· ·----------·---------- 404176 12-Apr-19 835 AT&T 12802408 BAN 9391026538 02124/19 -03/23/19 414040 22000 $20.72 ___ ,,, __ --------·-·-·-· ---- 12802417 BAN 9391026563 2/24/19-03/23/19 410060 33010 $77.94 -------------,----·---·-·· - Total for Check 404176: $98.66 404177 12-Apr-19 986 BAKER'S CONCRETE CUTTING INC. 59575 Pipe Repair, Danielson Driveway Sawcut 402560 41200 $420.00 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/8/2019 -4/12/2019 Page: 2of11 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number Description Org Object Project Check Amount ., 404250 12-Apr-19 1169 BARBOSA, ANDREW HOMER MARCH <D 2004.301 .19 Instructor Payment Winter 2018 208020 41300 $270.00 $80.94 0 404152 12-Apr-19 999998 BARCA.MARC 112-0047833-3848207 Reimburse Uniforms 202020 49280 ... "' 0, 404178 12-Apr-19 264 BJ'S RENTALS INC. 928550-5 Lift Scissor 415010 49360 $390.40 404153 12-Apr-19 999998 BLACKER, DEANNA Blacker 3/21/19 Mileage Reimbursement Employee Relations 121010 31010 $13.34 Training 404179 12-Apr-19 408 BOOT WORLD INC 12339 FY19 Boot Allowance Reynolds 402560 49280 $178.41 404180 12-Apr-19 1472 BRIDGESTONE HOSEPOWER 82026379-00 UNIT#501A 413010 47900 $41.12 404181 12-Apr-19 916 C.A. SHORT COMPANY 1468017 Service Award: Tucker 121010 45500 $152.57 1466698 Service Award Catalogs: 04 2019 121010 45500 $18.03 Total for Check 404181: $170.60 404182 12-Apr-19 55 CALOLYMPIC SAFETY 376795-1 (120) Nltrile Gloves F1000 81350 $880.64 . ---·- 404154 12-Apr-19 999998 CARRILLO, LUIS Carrillo UST Op 2019 Underground Storage Tank Certification 2019 413010 14010 $85.00 404184 12-Apr-19 66 CHARLES P CROWLEY CO 25667 Chemical Piping Repair, Alum/Caustic Disch. 402060 47600 $2,619.10 Header 404185 12-Apr-19 861 CHAULK MOUND TROUT RANCH 201903-020 1,500 lbs trout 202020 45110 $7,305.00 404187 12-Apr-19 1479 CIRO'S LANDSCAPING INC. 12345 Fire Station #2: install plants 501050 41600 $440.78 12344 Fire Station #1: install plants 501050 41600 $221.26 Total for Check 404187: $662.04 404188 12-Apr-19 561 COMMERCIAL & INDUSTRIAL ROOFING MR3634-1 PCPA -roof repairs 415010 43040 $2,348.38 CO.,INC. MR3633-1 Community Center: pool building repairs 415010 43040 $1,188.40 MR3632-1 Lake Poway Rec Office -roof repairs 415010 43040 $190.58 MR3702-1 Hamburger Factory: roof repairs 415010 43040 $232.74 Total for Check 404188: $3,960.10 ---··--·-. 905077 11-Apr-19 2012 COMMONWEALTH LAND TITLE COMPANY 09172726_91 7-CG8 Wire Transfer: Villa de Vida, 12341 Oak Knoll 80002903 P2900 $700,000.00 Road -·· ··-· --- 404190 12-Apr-19 848 COUNTY OF SAN DIEGO OFFICE OF SB2019-04 Sandbags 412040 47600 $1,440.00 EMERGENCY SERVICES 404189 12-Apr-19 488 COUNTY OF SAN DIEGO REGIONAL 19CTOFPON09 800 MHz Network Radios & Terminals Mar 114010 43180 $8,994.97 COMMUNICATIONS SYSTEM 2019 ------·-----.. ·----~--- 404191 12-Apr-19 94 COX COMMUNICATIONS .. --·----62872701 4/19 Cable TV/ Internet Group Bill: Apr 2019 114010 22000 $510.51 --·----·-· 404192 12-Apr-19 107 CUES INC 529243 Software Support Annual Fee, CUES 403570 41200 $350.00 404193 12-Apr-19 904 D'AGOSTINO, SARAH 2200.300.19 Instructor Payment Winter 2018 208020 41300 $768.00 ______ ,. ________ ----·-------- 404195 12-Apr-19 1021 DANCE TO EVOLVE INC 1702.300-338.19 Instructor Payment Winter 2018 208020 41300 $4,117.20 404194 12-Apr-19 424 D-MAX ENGINEERING INC 4880 lnv 4880 Industrial/Commercial Inspections 308040 41200 $6,281.50 -------,-···----· ------.--404183 12-Apr-19 1481 DONOVAN, CHARLENE MAGEE 1500.300-02.19 Instructor Payment Winter 2018 208020 41300 $3,438.00 404196 12-Apr-19 112 DUDEK & ASSOCIATES INC 20189134 Bio Monitoring for Stormwater Maintenance 412040 41200 $2,035.45 May 7, 2019, Item #1.2Register of Demands; Warrants from 4/8/2019 -4/12/2019 Page: 3 of 11 Check Check Payee/ Number Date Vendor# PayeeNendor Name Invoice Number Description Org Object Project Check Amount w 404197 12-Apr-19 1079 EAST COUNTY SAN DIEGO SOCCER 2010.300-01.19 Instructor Payment Winter 2018 208020 41300 $2,856.00 0 SHOTS LLC 0 404198 12-Apr-19 978 EASY FLOW LLC 3185 Emergency Repair 14982 Amso St. 403570 41200 $3,320.00 -w co 404199 12-Apr-19 1899 ELECTRICAL SALES, INC 026675 03 Electrical Parts 402060 47600 $197.18 404200 12-Apr-19 101 ESGIL CORPORATION MAR2019 Plan Review & Inspections 502050 17050 $8,789.91 404201 12-Apr-19 101 ESGIL CORPORATION March 2019 Building Services March 2019 303030 17050 $71,949.27 March 2019 Building Services March 2019 303030 17051 $6,076.35 Total for Check 404201: $78,025.62 404202 12-Apr-19 465 EVOQUA WATER TECHNOLOGIES LLC 903934403 Bioxide, LS-1 (800 gal on 3114/19) 403070 45200 $1,526.60 903934403 Bioxide, LS-1 (800 gal on 3/14/19) 415010 45200 $654.26 Total for Check 404202: $2,180.86 404203 12-Apr-19 350 EWlNG IRRIGATION 7064083 Lake Poway: irrigation repair supplies 414040 47700 $97.97 404204 12-Apr-19 766 FCS GROUP 2842-21811094 Financial Consulting: Services to 11/16/18 111010 17999 $612.50 2842-21812091 Financial Consulting: Services to 12/14/2018 111010 17999 $1,787.50 Total for Check 404204: $2,400.00 404205 12-Apr-19 102 FEDEX 6-505-76289 Mail Agreement 401060 33020 $23.86 ··--·-·----- 404206 12-Apr-19 116 FERGUSON WATERWORKS 0667437 Piping, 8" X 20' C900 Blue Pipe 402560 47600 $229.72 0668199 Saw Blade for Concrete, 14" 402560 47600 $193.90 0667389 Valves, Brass Ball Valves, 1"/1.5" 402060 47600 $101.34 0668412 Sedimentation Basin Bridge Parts 402060 47600 $27.58 ---··---·-··--·-··-·--·. 0668726 Danielson Blow-Off, Brass Adapter 402560 47600 $31.16 ··----· --· -. ·-----__ .,_ 0668128 Piping, Royal Estates 8" Meter Job 402560 61180 $3,838.60 0669326 Unit #930 Red Fleet 413010 47900 $102.45 . --· ·---··--~ Total for Check 404206: $4,524.75 404207 12-Apr-19 979 FIRE SERVICE CORP 22M 789249 Fire Suppression Equipment Service 415010 41200 $2,525.33 ------------------------------. -- 404208 12-Apr-19 27 FLEET PRIDE/ASSOCIATED TRUCK 23699921 Unit#700 413010 47900 $70.23 PARTS .,_, _____ -· ------- 404161 12-Apr-19 999995 GANDHI, SIDDHI 2013371.001 Deposit Refund Permit #21430 208020 74710 $200.00 404210 12-Apr-19 573 GOVCONNECTION, INC. 56629318 Replacement Battery Cart 113010 47600 $83.81 ·-----·--. -•.--•--------·. - 404211 12-Apr-19 120 GRAINGER INC 9112072989 Piping, 1.5" x 18" Red Brass Pipe 402060 47600 $72.21 ---··---.--... 9111834603 Piping Fittings, PVC 402060 47600 $83.75 -·--------... ··--·· -· 9120881280 Fall Protection Equipment 402060 47500 $350.23 9115499668 Vehicle, Unit 10 D-Rings 401060 47600 $88.70 9120424370 Lab Supplies -Phosphoric Acid 402060 47600 $291.88 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/8/2019 -4/12/2019 Check Check Payee/ Number Date Vendor# w 404211 12-Apr-19 120 ~ 0 -w 404212 12-Apr-19 1798 00 404213 12-Apr-19 483 404214 12-Apr-19 142 PayeetVendor Name GRAINGER INC HACH CHEMICAL COMPANY HANSON AGGREGATES PACIFIC SOUTHWEST, INC HEAVILAND ENTERPRISES INC Invoice Number 9131961543 11385251 1987013 1987584 1988527 24687 24683 24682 24681 24680 23319 24686 24678 24688 24679 24684 24394-A 24394-B 24394-C 24394-D 24397-1 24397-2 24397-3 24397-4 24397-6 24397-5 24395 24396 Description (2) Beverage Coolers Lab Supplies, ChemKeys, 400 Tests Aggregate Base 12.17 Tons 2.08 tons of School House asphalt 26.29 Tons of Crushed Aggregate Base Scripps Poway Parkway: irrigation repairs Gregg & Tech Center: irrigation repairs Stowe & Crosthwaite: irrigation repairs . --·----. - Scripps Poway & Tech Center: irrigation repairs Irrigation controller Poway Oaks: irrigation repair Sycamore Creek: planting Community Park: relocate rotors Bridlewood / Old Coach Mulch at entry Espola and Lake Poway: mulch Landscape Maintenance Landscape Maintenance Landscape Maintenance Landscape Maintenance Landscape Maintenance Landscape Maintenance Landscape Maintenance Landscape Maintenance LMD 86-2 Landscape Maintenance LMD 86-3 Mar and Sept Landscape Maintenance LMD 86-2 Landscape Services Kumeyaay: landscape maintenance Org F1000 402060 402560 411040 411040 426040 426040 426040 426040 426040 426040 425040 424140 80006172 423040 423040 421040 423040 425040 426040 414040 421140 421240 424040 425140 424140 414040 414040 Page: 4 of 11 Object Project Check Amount 81350 $93.62 Total for Check 404211 $980.39 47600 $827.48 47600 $214.12 45900 $173.48 45900 $461.86 Total for Check 404213: $849.46 47700 $502.52 47700 $474.96 47700 $139.33 47700 $172.19 47700 $98.64 47700 $347.70 47700 $101.75 47700 $189.64 P6170 $158.00 47700 $137.44 47700 $906.00 41600 $2,273.19 41600 $4,674.39 41600 $608.60 41600 $30,534.50 41600 $5,313.69 41600 $500.00 41600 $122.08 41600 $826.35 41600 $1,867.52 41600 $830.97 41600 $1,506.72 41600 $260.00 Total for Check 404214: $52,546.18 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/8/2019 -4/12/2019 Check Number w 404215 N a "' 00 404216 404217 404218 404173 404219 404220 404221 404222 404223 404224 404225 404155 404226 404227 404156 Check Payee/ Date Vendor# Pay~eNendor Name Invoice Number 12-Apr-19 146 HINDERLITER. DELLAMAS & ASSOCIATES 0030924-IN 0030924-IN HMS CONSTRUCTION INC. 21800190-PP3 12-Apr-19 1836 12-Apr-19 152 HOME DEPOT COMMERCIAL ACCOUNT 4223738 12-Apr-19 699 12-Apr-19 563 12-Apr-19 1955 12-Apr-19 644 12-Apr-19 1976 12-Apr-19 1114 12-Apr-19 1363 12-Apr-19 703 12-Apr-19 129 HOSE & RUBBER PRODUCTS HOWROYD-WRIGHT EMPLOYMENT AGENCY, INC HRANAC, ROCHELLE AMY INFOSEND INLAND POTABLE SERVICES, INC. INVENTIVE RESOURCES INC. JEFF KATZ ARCHITECTURAL CORPORATION JENAL ENGINEERING CORP. JRC PRINTING LLC 12-Apr-19 999998 JUDD, JUSTIN 12-Apr-19 502 12-Apr-19 1011 KIMLEY-HORN AND ASSOCIATES, INC KRONOS INC. 12-Apr-19 999998 LARA, ADRIAN 7223766 8211033 H8949-89244 9223761 0223817 1211075 9211090 77094 01-5171697 01-5177682 01-5184672 1602.300.19 151212 151212 865-031819 251367 1995 19-1379 38997 Judd-03/19 13383167 11429557 Boot FY2019 Description Sales Tax Consultant & Audit Services 1st Qtr 2019 Sales Tax Consultant & Audit Services 1st Qtr 2019 Traffic Signal Controller Upgrades Unit 69 Socket Holders Fuse and a utility knife Antenna Installation City Hall and R-16 Concrete Mix Pool Replacement Inflatable Materials Veteran's Park: pesticide Unit 748: truck supplies Pipe Unit #536 Kamlock fitting Admin Ill -Vernon Admin Ill Vernon Admin Ill -Vernon Instructor Payment VVinter 2018 Prop 218 Print and Process Prop 218 Print and Process Reservoir Dive Inspections (6) Odor Control Manhole Inserts Construction Documents Design -Community Center Fuel island Blue Sky Printing Org 111010 111010 80002794 401060 412040 113010 F1000 203020 414040 412040 411040 413010 400060 400060 400060 208020 112010 -···· -···-·· 112010 402060 403070 80004200 Page: 5 of 11 Object 17999 Project Check Amount 71310 Total for Check 404215: P2790 45600 47600 48210 81350 43080 47700 43080 47600 Total for Check 404217: 47900 15010 15010 15010 Total for Check 404173: 41300 33020 41200 Total for Check 404220: 41200 61999 P0000 $900.00 $1,726.48 $2,626.48 $47,059.20 $65.94 $34.68 $71.00 $821.59 $87.53 $26.84 $26.87 $9.63 $1,144.08 $33.79 $1,257.84 $1,537.36 $1,257.84 $4,053.04 $51.00 $2,264.05 $3,768.68 $6,032.73 $10,968.00 $1,071.75 ... ·------- $25,917.53 $5,470.56 413010 41200 207020 49220 -·-------··-·---·-·· $70.04 $200.00 $8,473.96 $58.36 $200.00 Paramedic License Renewal As-Needed DSD Traffic Eng -Feb 2019 Telestaff phonelines Boot Reimbursement, Lara 503050 . ------·-··· 307040 501050 402560 31040 17150 33010 49280 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/8/2019 -4/12/2019 Check Number Check Date Payee/ Vendor# PayeeNendor Name w 404228 w 12-Apr-19 147 LIEBERT CASSIDY VVHITMORE 0 -w 00 404229 12-Apr-19 391 LIFE-ASSIST, INC. 404157 12-Apr-19 999998 LOPERENA, ANDY 404230 12-Apr-19 910 LOWE'S 404150 12-Apr-19 999991 MABIE, JOHN ~-•-•"•-•-•-·c •-• .. --,--• •~-•"o•-m-.•--••••-•• , r•""_,._•o••-•-.,·-•••• -- - 404234 12-Apr-19 1494 MAEL, JENNIFER Invoice Number 1472045 1473517 1474988 908661 909666 908656 Loperena-03/19 Loperena-03/19 Loperena-03/19 Loperena-03/19 Loperena-03/19 Loperena-03/19 Loperena-03/19 01752 MDRA18-024 00418 00419 00420 00421 00422 00423 00424 00425 00426 00427 Page: 6 of 11 Description Professional Services Rendered Through 12/31/18 .. Professional Services Rendered Through 1/31/19 Professional Services Rendered Through 2/28/19 Medical Supplies Medical Supplies Medical Supplies 2019 CA Fire Prevention Workshop 2019 CA Fire Prevention Workshop 2019 CA Fire Prevention Workshop 2019 CA Fire Prevention Workshop 2019 CA Fire Prevention Workshop 2019 CA Fire Prevention Workshop 2019 CA Fire Prevention Workshop Cement colorant Org 121010 121010 121010 503050 503050 503050 502050 502050 502050 502050 502050 502050 502050 411040 Object 17999 17999 17999 Project Total for Check 404228: 47400 47400 47400 Total for Check 404229: 14010 14010 14010 14010 14010 14010 14010 Total for Check 404157: 43240 MDRA18-024 Erosion Control/FOP "No Rise" 390030 59800 lnv.00418 -WA 18-011 12650 Brookprinter Place FFA lnv.00419-WA18-009-14562 Bowdoin Rd FFA Inv 00420 -WA 18-012 -13795 Belvedere Dr FFA Inv. 00421 -WA19-001 -AMC Theatre FFA Inv 00422-WA18-014-GA Pallet Packing FFA Inv 00423-WA19-002 -14126 Murel Trail FFA 305030 305030 305030 305030 -----•a•••••••" 305030 c•·•••••••--. ...... .._.-.-,--,. 305030 Inv 00424-WA19-005-15474 Markar Rd FFA 305030 Inv 00425 -13464 Poway Road FFA (Chick-FH- A) inv 00426 -WA19-007 17080 Butterfield Trail FFA inv 00427 -WA19-008 14341 Twisted Branch Road FFA 305030 305030 305030 41220 41200 41220 41220 41220 41220 41220 41220 41220 41220 Check Amount $1,694.00 $4,780.00 $392.00 $6,866.00 $3,327.06 $123.61 $199.88 $3,650.55 $43.42 $35.99 $11.16 $10.87 $11.48 $20.13 $10.95 $144.00 $22.27 $2,000.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/812019 -4/12/2019 Check Number ~ 404234 .1:1,. 0 -w 0:) ··- 404151 905078 905079 905080 905081 Check Date 12-Apr-19 12-Apr-19 12-Apr-19 12-Apr-19 12-Apr-19 12-Apr-19 ---.-• -----··--,·--···. --.. 905082 12-Apr-19 ,. ____ ------- 404232 12-Apr-19 .......... ·····-··--- Payee/ Vendor# PayeeNendorr:'~~e 1494 MAEL, JENNIFER 999998 616 616 616 616 616 1233 MANGUSING, STUART ,,·, •·-•• , ··•-rhn'd,m-.-,,• MANUFACTURERS & TRADERS TRUST CO.BANK . ---·· --·--~------ -- MANUFACTURERS & TRADERS TRUST CO. BANK .... ··-. -~ MANUFACTURERS & TRADERS TRUST CO. BANK ..... --.-~-.......... . MANUFACTURERS & TRADERS TRUST CO. BANK MANUFACTURERS & TRADERS TRUST CO. BANK •••• • '"-•--c---•-•~•~----wrnv·co-•~·oc·~v ••• -••" ••• MATCHETT, VIVIAN Invoice Number 00434 REIMB FY18-19 457 PP E 4n/19 457R PPE 4n/19 401A PPE 4n/19 ROTH PPE 417/19 RHS PPE 4n/19 2505.300-01.19 Description inv 00434 -Nguyen Property FSCNFFA Safety Shoe Reimbursement -Stuart . Man~using_ ICMA 457 deferred comp deductions PPE 417/19 ROTH 457 deferred comp PPE 4n/19 Org 305030 306030 F1000 F1000 401a employer contributions PPE 417/19 F1000 ROTH IRA employee contributions PPE 417/19 F1000 Retirement Health Savings Plan (Safety) PPE 417/19 F1000 404233 12-Apr-19 1364 MICHAEL BAKER INTERNATIONAL INC. 1043981 Instructor Payment Winter 2018 Plan Checks -February 2019 Plan Checks -February 2019 208020 391030 305030 404235 12-Apr-19 175 404186 12-Apr-19 1784 .....,,._........,_,_.-Mo••• 404236 12-Apr-19 565 .•.. ____ ,._, ______ . ------·--···--·······-···-·-···-··-· ~ 404237 12-Apr-19 1268 NAPA AUTO PARTS/POWAY NCH CORPORATION NEAL ELECTRIC, INC NEOPOST USA INC. .............. ---~--~--·----···----···--.. ~ - 404149 404158 404238 404239 12-Apr-19 999993 NILSEN GENERAL CONTRACTING, INC 12-Apr-19 999998 NJAA, ERIC 12-Apr-19 894 12-Apr-19 84 NTH GENERATION COMPUTING, INC. OFFICE DEPOT BUSINESS SERVICES DIVISION 1043981 365974 367355 368577 367244 368658 368738 3479664 71183 15686531 RW19-0038 Njaa, E. Cell Phone 34210H Grease and funnel Unit #11 parts Wrench Filters Re-stock Unit #82 connector Concrete park bench damage filler Electrical Pedestal, L8-4 Postage machine ink cartridge Security Release for ROW Permit #19-0038 Cell Phone Replacement, Njaa HP Blade Servers Maintenance 264774659-001 Binders for Fleet Supervisor 264772949-001 Credit from binders 261398073-001 261111876-001 291955052-001 291955052-001 Pool Office Supplies Pool Office Supplies Office Supplies Office Supplies 412040 413010 411040 413010 413010 413010 414040 403070 114010 --- 390030 402560 113010 413010 400060 203020 203020 121010 120010 Page: 7 of 11 Object 41220 Project Total for Check 404234: 49280 86120 86120 86130 86220 87004 41300 59100 41220 Total for Check 4D4233: 47600 47900 45600 47900 47900 47900 Total for Check 404235: 47600 41200 43080 59800 33011 43080 47100 47100 47100 47100 14030 47100 Check Amount $2,200.00 $5,200.00 $173.18 $28,915.71 $3,086.53 $11,515.40 $500.00 $1,698.24 $780.00 $1,188.00 $528.00 $1,716.00 $44.10 $16.52 $135.19 $50.34 $38.67 $8.88 -· $293.70 $347.87 $1,548.83 $210.11 $500.00 $200.00 $5,399.20 $32.62 ($32.62) $90.45 $57.41 $53.92 $2.26 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/8/2019 -4/12/2019 Check Number Check Payee/ Date Vendor# Pay~eNendor Name . . . w 404239 en 12-Apr-19 84 OFFICE DEPOT BUSINESS SERVICES DIVISION 0 -c.> 0) 404240 404241 404242 404243 404244 12-Apr-19 498 12-Apr-19 1757 12-Apr-19 671 12-Apr-19 653 12-Apr-19 1058 OFFICE FURNITURE OUTLET INC ONE RING NETWORKS, INC PRODUCTIVITY PLUS ACCOUNT PSOMAS, INC R & B PINTO PROPERTIES LLC 404209 12-Apr-19 719 RANDOLPH-MOORE, LYNNE ··-·------·-····-,_ ....... _..., .. ,.,._, -·-•--•-~·••. ··-·· -·-------~-•.,· ................. ,-., -·-· 404231 12-Apr-19 2006 REMEMA INC n ·•n• ~-•••-----•~~----••--•-•-•••• ••••-•·-.-, -•-••" ••-• -•••~ ••• ••••• 404159 12-Apr-19 999998 RICE, JASON 404160 404245 404246 404247 12-Apr-19 999998 RUIZ, CRAIG 12-Apr-19 230 12-Apr-19 845 12-Apr-19 218 RUTAN AND TUCKER SAGE VIEW INC. ••-••••••••••••-----.L-0-,•---••o,so• L SAN DIEGO GAS & ELECTRIC/SUNDRY Page: 8 of 11 Invoice Number 274764106-001 289224122-001 290751165-001 296099897-001 296099897-001 297760778-001 297760778-001 297760778-001 297760095-001 298048088-001 298048088-001 297092154-001 294175003-001 296739010-001 70333 INV000000268754 228964 150189 Description Office Supplies Office Supplies Office Supplies Office Supplies Office Supplies Office Supplies 1st floor Office Supplies 1st floor Office Supplies 1st floor Office Supplies 1st floor Office Supplies Office Supplies Office Supplies -2nd Floor Office Supplies -2nd Floor Pool Office Supplies Dining Chairs SS 1 & 3 City Hall Backup Internet: Apr 2019 Unit #SE405 cable & casing Org 121010 121010 120010 401060 400060 301030 303030 305030 301030 501050 c •oy ••-•• "• • L 500050 301030 300030 203020 501050 114010 413010 Object Project 47100 47100 47100 47100 47100 47100 47100 47100 47100 47100 47100 47100 47100 47100 Total for Check 404239: 48200 41200 47900 Design Consultant-Martincoit 2/1/19-2/28/19 80004200 P0000 ··---·-----·-·~-------·· --- LKCONC03/25-03/13 Lake Cone (03/25-03/31)-FebCC F1000 86360 -·-. ---·~---•-·---·-··-. ,-.. •··"""·--•--~• - - ~-----·-·---~~-.. -0 • - LKCONC03/25-03/13 Lake Cone (03/25-03/31)-FebCC 202020 51130 2300.300-05.19 19661 Rice, J. Per Diem CalED Cont 2019 833057 833058 2965 31507776772-03/19 31507776772-03/19 Instructor Payment Winter 2018 208020 Unit #905 Red Fleet 413010 Electrical Training Per Diem, Rice, 2 Days 401060 104030 Total for Check 404244: 41300 43120 31040 14010 CalEd Conference Travel Reimbursement 012782-0021 Professional Service through 2/28/19 80001001 P1000 012782-0023 Professional Service through 2/2812019 Grove Maintenance Group Sundry Bill: Mar 2019 Group Sundry Bill: Mar 2019 80001001 P1000 414040 205020 414040 Total for Check 404245: 41600 21010 21010 Check Amount $2.36 $12.27 ($2.83) $1.20 $52.93 $70.85 $20.49 $53.75 $11.30 $144.15 $36.88 $107.38 $79.64 $382.94 $1,177.35 $3,486.79 $499.00 $7.50 $26,983.94 $7,313.07 ($349.81) $6,963.26 $1,596.00 $350.68 $36.00 $428.25 $3,262.50 $6,354.47 $9,616.97 $8,177.85 $374.99 $23.67 May 7, 2019, Item #1.2w (1) 0 -w 00 Register of Demands: Warrants from 4/8/2019 -4/1212019 Check Number 404247 404248 404257 404249 404251 404252 404253 404254 404256 Payee/ Check Date Vendor# PayeeNendor Name Invoice Number 31507776772-03/19 31507776772-03/19 12-Apr-19 218 SAN DIEGO GAS & ELECTRIC/SUNDRY 12-Apr-19 711 12-Apr-19 829 12-Apr-19 568 12-Apr-19 256 12-Apr-19 282 12-Apr-19 954 12-Apr-19 744 12-Apr-19 991 SAVMART PHARMACEUTICAL SERVICE 614734 SC COMMERCIAL, LLC 614701 0652858-IN 0653729-IN --... ----····""""•· ...... --·· ......... ~--------·--···-·· -···---~ ---__ .,,, .. SCRIPPS/POWAY FENCE BUILDERS 0330201901 SENTRY FENCE COMPANY 5599 •---- SHARP REES-STEALY MEDICAL CENTER 330851173 SIEMENS INDUSTRY INC SIGN UP SMARTCOVER SYSTEMS 330851174 330779277 5620023771 24571 11873 404258 12-Apr-19 776 SOUTH COAST EMERGENCY VEHICLE SERVICE 493552 • •• --"~·--•--•-~ ·""-~••-~•~-,rn••• • SOUTHERN CALIFORNIA FLEET SERVICES, INC • •• •-••·•·-~·•"•---"'•""--·•• ••-•-•-·c-,..,•,--•-• .,,, • SRK UPHOLSTERY, INC. - ---~·-··--·--·-___ ,,_,, ____ - ---..... STATEWIDE SAFETY & SIGNS, INC SUN MICROWAVE, INC. SUPERION, LLC ES-4794 13964 01004915 19897 230761 Description Group Sundry Bill: Mar 2019 Group Sundry Bill: Mar 2019 ALS Medications ALS Medications UNIT #271 diesel UNIT #294 unleaded & diesel fuel Community Park: fence repair Stowe Drive Flood basin fence repair and addition Preplacement Non-DOT Urine Drug Screen Quant TB & Spec Coll & Prep 200 Concrete Poles 300 Arms for streetlights OP Supplies for New Pickup truck SmartCover Flow Monitors, 3 Unit #924 Red Fleet Unit #50 repair heater core/blend door City Hall breakroom: material Custom Signs Network: Radio Replacement FCC Registration eTRAKiT Credit Card AP! 404259 404255 404260 404261 404262 404263 404264 12-Apr-19 1988 12-Apr-19 2008 12-Apr-19 528 12-Apr-19 1926 12-Apr-19 1601 12-Apr-19 217 12-Apr-19 1129 ---••'-•••-~----,,-•••-•-•v•• -•• ~---.. •• • -••---•--·-.. ----~--• -- 404265 404266 12-Apr-19 631 12-Apr-19 977 TARGET SPECIAL TY PRODUCTS TERI BLACK & COMPANY LLC TOMAHAVI/K ?10944755 19-0321-50 19-0220-26 19-0403-60 76286 •-• ~ --•-•••'" ••••• " • ••••u • •-• -"'" -•••••~---..,_,·-••• •-•••• TOSHIBA BUSINESS SOLUTIONS 1762723 Pesticide sprayer Finance Director Recruitment: Phase I City Manager Recruitment: Phase 111 City Manager Recruitment: Final Billing Vehicle detail supplies (2) ecoSmart Recycle Program Kits Page: 9 of 11 Org Object Project Check Amount 430050 21020 $1,945.76 430050 21030 $27,980.65 Total for Check 404247: $30,325.07 503050 47400 $162.54 503050 47400 $659.88 Total for Check 404248: $822.42 413010 31020 $1,175.15 413010 31020 $12,490.64 Total for Check 404257: $13,665.79 414040 41200 $400.00 412040 41200 $1,800.00 121010 49160 $60,00 121010 49160 $35.00 121010 49160 $48.00 Total for Check 404252: $143.00 430050 43270 $12,266.94 502050 47600 $745.65 403570 61999 $15,662.51 413010 47900 $347.54 413010 43120 $2,792.47 415010 41200 $1,287.55 v•v "••• --•• • • •• .. '"---·-·-·· 414040 45300 $215.51 115010 61999 $2,150.63 --·-...... --·•--·· ..... ---········-··-.. ·~· ··-~ •• ___ , ·-· •. 113010 41200 $1,750.00 414040 47600 $196.36 121010 49340 $4,500.00 121010 49340 $5,000.00 121010 49340 $8,775.32 •••u ~-~-e---•••••••• Total for Check 404264: $18,275.32 501050 43080 $265.23 •'-••·'"' --~~----... 114010 43080 $269.27 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/8/2019 -4/12/2019 Check Number ..... ,. w 404267 ....... a 404268 w CX) 404269 905083 905084 905085 404270 404271 404272 Payee/ Check Date Vendor# PayeeNend?~ Nari:i~. 12-Apr-19 1696 TRANSUNION RISK AND ALTERNATIVE DATA SOLUTIONS INC 12-Apr-19 462 12-Apr-19 1602 12-Apr-19 785 12-Apr-19 785 12-Apr-19 785 12-Apr-19 236 12-Apr-19 1580 12-Apr-19 238 TRUESDAIL LABORATORIES, INC TYLER TECHNOLOGIES INC. U.S. BANKN.A. U.S. BANKN.A. U.S. BANKN.A. UNDERGROUND SERVICE ALERT UNIFIRST CORPORATION UNIFORMS PLUS Invoice Number 3081831-0419 521901647 521901648 521901649 521901650 045-256877 Description Data Services -Sheriff Potable Water Analytical Laboratory Services Potable Water Analytical Laboratory Services " ..... ··-·-·--~----........ Potable Water Analytical Laboratory Services Potable Water Analytical Laboratory Services Implementation: Janel Knap 2/4-2/6/19 PARS ARS PE2019-08 PARS ARS PE#2019-08 PARS REP PE2019-08 PARS REP PE#2019-08 PARS REPEX PE2019-PARS REPEX PE#2019-08 08 18dsbfee398 18dsbfee1004 361 0063968 361 0063967 361 0063969 361 0063965 361 0063966 361 0063964 361 0064126 361 0064125 ___ .......... ....__._--.-..... ----- 361 0064125 361 0064117 361 0064117 361 0064120 361 0064120 361 0064121 49594 49682 49664 Dig Safe Board Fee Dig Safe Board Fee Fire Station 2 mats/towels Fire Station 1 mats/towels Fire Station 3 mats/towels City Hall: mats Meadowbrook Gym: mats and mops Senior Center: mats Uniforms Weekly Rental Fee Uniforms Weekly Rental Fee Uniforms Weekty Rental Fee • ••••••••-w···•··u··-~--~• ••••--• •-· ··•------~----• •••-------·• Uniforms Weekly Rental Fee Uniforms Weekly Rental Fee Uniforms Weekly Rental Fee Uniforms Weekly Rental Fee Uniforms Weekly Rental Fee Uniforms -Loperena Uniforms -Powell Uniforms -Boots, Loperena Page 1 o of 11 Org Object Project 504050 41200 402060 41200 402060 41200 402060 41200 402060 41200 Total for Check 404268: 80006111 P6110 F1000 F1000 F1000 402560 402560 501050 501050 501050 415010 415010 415010 401060 415010 402060 415010 413010 415010 410060 405060 502050 502050 87200 87210 87210 --------···-.. -- 57300 ......................... . - 57300 Total for Check 404270: --•--~ .. ---.-~-•n•·•-- 49280 49280 49280 41200 41200 41200 49280 41200 49280 41200 49280 41200 49280 49280 Total for Check 404271: 49280 49280 502050 49280 Total for Check 404272: Check Amount $165.00 $1,736.28 $2,686.64 $1,914.46 $1,581.57 $7,918.95 $3,825.00 $2,392.70 $17,047.73 $18,850.00 $69.47 $69.47 $138.94 $21.89 $29.88 $43.51 $17.21 $26.31 $14.77 $34.25 $8.54 $24.94 $8.81 $46.02 $1.22 $4.14 $5.44 $286.93 $1,172.16 $1,429.09 $258.60 $2,859.85 May 7, 2019, Item #1.2Register of Demands: Warrants from 4/8/2019 -4/1212019 Check Number Check Payee/ Date Vendor# PayeeNendor Name Invoice Number w 905076 00 10-Apr-19 334 UNION BANK-SAN DIEGO PPE 417/19 0 -w 00. 404273 404274 404275 404276 404277 403969 12-Apr-19 655 12-Apr-19 1085 12-Apr-19 321 12-Apr-19 321 12-Apr-19 321 29-Mar-19 142 404278 12-Apr-19 272 -·····-··-·-·· ~ --.---------•---•---~ 404279 12-Apr-19 540 404280 404281 404282 12-Apr-19 280 12-Apr-19 1340 12-Apr-19 1573 ······-··-······ UNITED SITE SERVICES UNITIS CONTRACTOR SUPPLIES VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS VOID PPE 417/19 PPE 417/19 114-8189122 114-8220245 114-8235886 158801 9826606074 9826567002 9827257206 9827257206 23862-E WA.XIE 78160732 WEST COAST ARBORISTS, INC. 146265 WESTERN MOWER AND ENGINE WORLD ADVANCEMENT OF TECHNOLOGY FOR EMS AND RESCUE ZORC TOOLS, INC. 139774 146262 146263 14264 63326 63857 1164 INV5788748 Date: _ __,_lf_--_.,d-. ........ ~--------~~) _9 ____ _ Description Transfer net payroll to Union Bank PPE 4/7/19 Transfer net payroll to Union Bank PPE 4/7/19 Transfer net payroll to Union Bank PPE 4/7/19 Lake Portable Svcs-03/06-04/02/19 ... •.' -· -.. ,--·-•·--••·------·---· .. Portable Toilet Services Concrete Mix Emergency Phones: Mar 2019 Field/ Mobile Broadband Data: Mar 2019 Wireless Services -March 2019 Wireless Services -March 2019 Pump stations & Reservoirs_ Feb 19 The Lake: sanitary supplies Tree Trimming, Removal Tree Trimming, Removal and Rep Tree Trimming, Removal and Rep Tree Trimming, Removal Tree Trimming, Removal Trimmer line and Mixed Fuel Trimmer line Patient Care Reporting Software Safety Supplies -Glasses and Freezer Pops Org TREA F1000 F1000 202020 414040 .. ·-··· ---·--·-· 207020 --. --•~ •-•-~· F1000 114010 • ••••••-•••~c-,,,-•,-•,••• 113010 301030 306030 ---_,,._. ............. -- 402060 415010 414040 421040 421040 423040 426040 414040 Object Project 80030 80030 80030 41200 41200 41200 Page: 11 of 11 Check Amount $525,372.63 ($525,372.63) $525,372.63 $584.90 $453.86 $268.71 Total for Check 404273: $1,307.47 81350 33010 22000 22000 22000 $237.05 $2.16 $76.02 $76.02 $114.03 - - ··•-'-• ··--····· Total for Check 404277: $190.05 41600 47200 41200 41200 41200 41200 41200 $0.00 $1,152.53 $6,404.44 $2,158.80 $1,511.16 $3,569.44 $6,929.08 Total for Check 404279: $20,572.92 43080 412040 47600 $750.27 $14.78 $765.05 Total for Check 404280: 503050 41200 ,-----•-·· -,, ....... --• •--· ----. $1,094.00 $420.96 F1000 81350 Register Total: $2,007,896.17 1 of 10 May 7, 2019, Item #1.3 CITY OF POWAY CITY COUNCIL REGULAR MEETING MINUTES April 2, 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, Frank, Grosch, Vaus Absent: Leonard STAFF MEMBERS PRESENT City Manager Tina White; City Attorney Alan Fenstermacher; City Clerk Faviola Medina; Community Services Director Brenda Sylvia; Development Services Director Bob Manis; Finance Director Donna Goldsmith; Human Resources/Risk Management Director Jodene Dunphy; Director of Public Works Michael Obermiller; Deputy Fire Chief Jon Canavan; Captain Jeff Duckworth, 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 None. PUBLIC ORAL COMMUNICATIONS Denise Ott with Met2 invited Council and the public to their upcoming show, “Peter Pan” at Poway Center for the Performing Arts. Joe St. Lucas requested that Council consider “Free Fishing Days” at Poway Lake. Matt voiced his concerns regarding pesticide use in Poway, specifically near children. NOTE: These draft meeting minutes are not official until approved by the City Council at the next scheduled meeting. 2 of 10 May 7, 2019, Item #1.3 ATTACHMENT A 1. CONSENT CALENDAR Item 1.8 was removed from the agenda to provide staff with additional time to discuss components of the agreement between the City of Poway and the Poway Unified School District specifically, relative usage of the fields and the City’s proposed contribution to replacement of artificial turf. Continuing the item will also allow Councilmember Leonard to participate in the discussion, since he is absent from this meeting and serves on the PUSD subcommittee. Motioned by Deputy Mayor Grosch, seconded by Councilmember Frank to approve Consent Calendar Items 1.1 through 1.7 with the exception of Item 1.8 which is continued to the meeting of Tuesday May 7, 2019. Motion carried by the following roll-call vote: Ayes: Mullin, Frank, Grosch, Vaus Noes: None Absent: Leonard 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 February 25, 2019 through March 1, 2019; and March 4, 2019 through March 8, 2019 1.3 Approval of the March 5, 2019 Regular City Council Meeting Minutes 1.4 Second Reading and Adoption of Ordinance No. 826 entitled “An Ordinance of the City of Poway, California, Adding Chapters 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” 1.5 Second Reading and Adoption of Ordinance No. 827 entitled “An Ordinance of the City of Poway, California, Amending Chapters 1.02, 1.08, 1.10, 2.20, 8.72, 8.76, 8.80, 13.09, 15.02, and 17.54 Adding Chapters 15.03 and 15.32, and Deleting Chapters 16.56, 16.68 and 8.84 of the Poway Municipal Code Relating to Code Compliance” 1.6 First Lease Amendment for Telecommunications Facility at 12700 Sagecrest Drive – Pomerado Reservoir; New Cingular Wireless PCS, LLC 1.7 Agreement for Purchase of a Microsoft Enterprise Agreement; Crayon Software Experts, LLC 1.8 Joint Use Agreement for Cooperative Facilities Use and Maintenance; Poway Unified School District (PUSD) 2. ORDINANCE None. 3. PUBLIC HEARING 3.1 Tentative Tract Map 19-001: Time Extension Request for Previously Adopted Tentative Tract Map 3 of 10 May 7, 2019, Item #1.3 Mayor opened the Public Hearing. Senior Planner Austin Silva presented the report along with a presentation. He explained that the request is a time extension for Tentative Tract Map (TTM) 06-02, which is set to expire. No speakers. Motioned by Deputy Mayor Grosch, seconded by Councilmember Mullin to close the public hearing. Motion carried by unanimous vote of those present; Councilmember Leonard absent. Motioned by Councilmember Mullin, seconded by Deputy Mayor Grosch to adopt Resolution No. P-19-06 entitled “A Resolution of the City Council of the City of Poway, California, Approving Tentative Tract Map 19-001; A Time Extension of the Approval for Tentative Tract Map 06-02; Assessor's Parcel Numbers (APN): 277-080-04, 277- 071-05, 14, 16, and 19.” Motion carried by unanimous vote of those present; Councilmember Leonard absent. 3.2 FY19-20 Road Repair and Accountability Act of 2017 List of SB 1 Funded Projects Mayor opened the Public Hearing. City Engineer Tom Frank presented the report. Mr. Frank stated that on April 28, 2017 the Governor signed Senate Bill SB 1, to provide funding for basic road maintenance, rehabilitation, and critical safety needs on both the state highway and the local streets and road systems. In order to receive Road Maintenance and Rehabilitation Account (RMRA) Funds, a list of projects proposed to be funded with these funds must be provided to the California Transportation Commission and adopted by resolution. No speakers. Motioned by Councilmember Frank, seconded by Deputy Mayor Grosch to close the public hearing. Motion carried by unanimous vote of those present; Councilmember Leonard absent. Motioned by Councilmember Mullin, seconded by Councilmember Frank to adopt Resolution No. 19-017 entitled “A Resolution of the City Council of the City of Poway, California, Adopting a List of Projects for Fiscal Year 2019-20 Funded by SB 1: The Road Repair and Accountability Act of 2017.” Motion carried by unanimous vote of those present; Councilmember Leonard absent. 4. STAFF REPORT 4.1 Amendment to Villa de Vida Affordable Housing Project Disposition Development and Loan Agreement Director of Development Services, Bob Manis presented the report and stated that the Disposition Development and Loan Agreement (DDLA) was first approved at the April 4, 2016 Council meeting. The project received 9% tax credits from the Tax Credit Allocation Committee (TCAC) which requires close of escrow and implementation of the project within 4 of 10 May 7, 2019, Item #1.3 a 180-day deadline. Modifications to the DDLA and ancillary documents are needed to close escrow no later than April 9, 2019. Hunter Christian with Villa de Vida, and Ed Holder of Mercy Housing, responded to a Council inquiry regarding the resident services plan and the San Diego Regional Center. In response to Council inquiry, City Manager Tina White said that the residents must be on the San Diego County Section 8 Housing list in order to qualify to live in this development. No speakers. Motioned by Mayor Vaus, seconded by Councilmember Mullin for Council and the Poway Housing Authority to approve the third amendment to the Disposition, Development and Loan Agreement for the Villa de Vida project and authorize the Executive Director of the Poway Housing Authority to execute the Disposition, Development and Loan Agreement and all ancillary documents. Motion carried by unanimous vote of those present; Councilmember Leonard absent. 4.2 Initiation of Proceeding for the Formation of Landscape Maintenance District 19-1 Assistant Director of Public Works Eric Heidemann presented the report along with a slideshow presentation. Mr. Heidemann stated that the imposed assessments are no longer sufficient to fund the existing district’s enhanced improvements and services, and that reserve funds have gradually been depleted. In response to Council inquiry, City Manager Tina White said that the residential section will not be balloted, only Landscape Maintenance District (LMD) 19-1. If the ballot for LMD 19- 1 fails, LMD 87-1 will remain as residential and commercial properties with no change in the assessments. No speakers. Motioned by Mayor Vaus, seconded by Councilmember Mullin to adopt Resolution No. 19-018 entitled “A Resolution of the City Council of the City of Poway, California, Initiating Proceedings for the Formation of Landscape Maintenance District No. 19-1; Directing the Preparation and Filing of an Engineer’s Report Related Thereto, Pursuant to the Provisions of Part 2 of Division 15 of the California Streets and Highways Code; and Initiating Proceedings to Detach Territory from City of Poway Landscape Maintenance District 87-1.” Motion carried by unanimous vote of those present; Councilmember Leonard absent. Motioned by Mayor Vaus, seconded by Councilmember Mullin to adopt Resolution No. 19-019 entitled “A Resolution of the City Council of the City of Poway, California, Declaring the City’s Intention to form Landscape Maintenance District No. 19-1 and to Levy and Collect Annual Assessments Related Thereto Commencing Fiscal Year 2019-20, Pursuant to the Provisions of Part 2 of Division 15 of the California Streets and Highways Code; Calling for a Property Owner Protest Proceeding, to Submit to the Qualified Property Owners the Question of Levying Such Assessments and Establishing an Assessment Range Formula for said District Pursuant to the Provisions of the California Constitution, Article XIII D; and Declaring its Intention to Detach Parcels of Property from Landscape Maintenance District 87-1.” Motion carried by unanimous vote of those present; Councilmember Leonard absent. 5 of 10 May 7, 2019, Item #1.3 5. WORKSHOP None. 6. MAYOR AND CITY COUNCIL-INITIATED ITEMS 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) Caylin Frank reported that MTS is considering a 2020 sales increase ballot measure. She has some concerns due to the increase in MTS transportation costs, but not services. Dave Grosch reported that San Dieguito River Park manages 71 miles of trails from Del Mar to Julian. 7. CITY MANAGER ITEMS None. 8. CITY ATTORNEY ITEMS 8.1 Approval of Employment Agreement for the City Manager City Attorney Alan Fenstermacher reported that the employment agreement with Christopher Hazeltine was being presented for Council’s consideration. The employment agreement is effective May 6, 2019. No speakers. Mayor Steve Vaus stated that Councilmember Leonard was very impressed with Mr. Hazeltine’s strong resume and positive attitude, which he believes will position him well to lead Poway into the future. The skillset he possesses will move many projects forward. Motioned by Mayor Vaus, seconded by Councilmember Mullin, to authorize the Mayor to execute the City Manager Employment Agreement between the City of Poway and Christopher Hazeltine, with such changes as may be approved by the City Council and Mr. Hazeltine. Motion carried by unanimous vote of those present; Councilmember Leonard absent. Council congratulated Mr. Hazeltine on his appointment and introduced him to the public. ADJOURNMENT The meeting adjourned at 8:21 p.m. ________________________________ Faviola Medina, CMC City Clerk City of Poway, California 6 of 10 May 7, 2019, Item #1.3 CITY OF POWAY CITY COUNCIL REGULAR MEETING MINUTES April 16, 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; Community Services Director Brenda Sylvia; Development Services Director Bob Manis; Finance Director Donna Goldsmith; Human Resources/Risk Management Director Jodene Dunphy; Director of Public Works Michael Obermiller; Acting Director of Safety Services Jon Canavan; Captain Jeff Duckworth, 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 Mayor Vaus presented Deputy Marshall Abbott with a plaque in recognition of being selected as Poway Sheriff’s Station Deputy of the Quarter. PUBLIC ORAL COMMUNICATIONS Bernie Guzman requested the Metate Meadow Trails be added to the City’s website. 1. CONSENT CALENDAR Motioned by Mayor Vaus, seconded by Deputy Mayor Grosch to approve Consent Calendar Items 1.1 through 1.9. Motion carried by the following roll-call vote: Ayes: Mullin, Leonard, Frank, Grosch, Vaus Noes: None Absent: None NOTE: These draft meeting minutes are not official until approved by the City Council at the next scheduled meeting. 7 of 10 May 7, 2019, Item #1.3 ATTACHMENT B 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 March 11, 2019 through March 15, 2019; and March 18, 2019 through March 22, 2019 1.3 Approval of the March 19, 2019 Regular City Council Meeting Minutes 1.4 Consultant Agreement with Dudek for “The Farm” Environmental Impact Report at the previous Stoneridge Golf Course (Specific Plan 19-001) 1.5 Poway Housing Successor Annual Report FY 2017-18 1.6 Statement of Investment Policy 1.7 Adoption of Resolution No. 19-020 entitled “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” Chris Olps spoke in opposition to the proposed limitations on sidewalk vendors. 1.8 Contract for Professional Auditing Services; Davis Farr, LLP 1.9 Agreement to Provide Support to the Poway Valley Senior Citizens Corporation during Construction of the Mickey Cafagna Community Center 2. ORDINANCE None. 3. PUBLIC HEARING 3.1 Resolution Approving a 2% Increase in the Regional Transportation Congestion Improvement Program (RTCIP) Traffic Mitigation Fee for FY 2019-20, as Required by the TransNet Ordinance Mayor opened the public hearing at 7:10 p.m. City Engineer Tom Frank presented the report and stated that the funds collected from this fee will be used for roadway and traffic signal improvements at various locations throughout the City. Mr. Frank clarified that the fee applies to new construction condominiums as well as single-family homes. No speakers. Motioned by Councilmember Leonard, seconded by Councilmember Mullin to close the public hearing at 7:13 p.m. Motion carried unanimously. Motioned by Councilmember Leonard, seconded by Deputy Mayor Grosch to adopt Resolution No. 19-021 entitled “A Resolution of the City Council of the City of Poway, California, 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.” Motion carried unanimously. 8 of 10 May 7, 2019, Item #1.3 3.2 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 Mayor Vaus announced that the property owner has requested a continuance to the June 4, 2019 Regular City Council Meeting. No motion was made to grant the continuance. Mayor opened the public hearing at 7:15 p.m. City Planner Dave DeVries presented the report along with a presentation and stated that the hearing is being held pursuant to Chapter 8.72 and 1.10 of the Poway Municipal Code for the purpose of determining whether the unapproved grading and unpermitted detached garage and home improvements at 13822 Northcrest Lane constitute a public nuisance and whether the Administrative Citations should be upheld. Carol Pouliot expressed concerns with the septic smell and exposed leach fields due to the unpermitted grading that has occurred. Motioned by Councilmember Frank, seconded by Deputy Mayor Grosch to close the public hearing at 7:22 p.m. Motion carried unanimously. Council discussion ensued in support of staff’s recommendation. In response to Council inquiry, City Attorney Alan Fenstermacher confirmed that the City Attorney’s Office can abate the issues to the extent possible, however, the majority of corrections require the property owner to obtain permits to bring the home improvements into compliance. In response to Council inquiry regarding Ms. Pouliot’s concerns, staff advised Council that they had been denied access to investigate the septic concerns. Staff is aware that the County Health Department has visited the property for vector control. Motioned by Councilmember Mullin, seconded by Councilmember Leonard to 1) adopt Resolution No. P-19-07 entitled “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”; and 2) authorize the City Attorney to initiate appropriate legal action if the owner fails to timely remedy the public nuisance conditions. Motion carried unanimously. 4. STAFF REPORT None. 5. WORKSHOP None. 6. MAYOR AND CITY COUNCIL-INITIATED ITEMS The Mayor and Council made announcements and reported on various events taking place in the City. No action was taken. 9 of 10 May 7, 2019, Item #1.3 COUNCILMEMBER COMMITTEE REPORTS - Pursuant to AB1234 – G.C. §53232.3(d) Councilmember Mullin gave a brief update on the recent meeting of the Metro Wastewater JPA and the SANDAG Regional Planning Committee. 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. Councilmember Frank gave an update on the recent meeting of the Metropolitan Transit System Board meeting. Deputy Mayor Grosch gave an update on Regional Solid Waste Association and briefly discussed state mandates to reduce organic waste. Councilmembers Mullin, Leonard, Frank, Deputy Mayor Grosch and Mayor Vaus expressed their appreciation for the dedication, contributions and service City Manager Tina White has given to the City of Poway. Council congratulated her on her well-deserved retirement and presented her with a bouquet of flowers. 7. CITY MANAGER ITEMS None. 8. CITY ATTORNEY ITEMS CLOSED SESSION: 8.1 Conference with Labor Negotiators Government Code Section 54957.6 Designated City Representatives: Tina White, Wendy Kaserman, Jodene Dunphy Employee Organizations: Poway Firefighters’ Association, Teamsters, Management/Confidential Group 8.2 Public Employee Performance Evaluation Government Code Section 54957(B)(1) Title: City Attorney At the request of City Attorney Alan Fenstermacher, Mayor Vaus adjourned the meeting into Closed Session at 7:53 p.m. with all Councilmembers present. City Council came out of Closed Session at 9:30 p.m. and City Attorney Fenstermacher announced that there was no reportable action taken. ADJOURNMENT The meeting adjourned at 9:30 p.m. ________________________________ Faviola Medina, CMC City Clerk City of Poway, California 10 of 10 May 7, 2019, Item #1.3 May 7, 2019, Item #1.4 City of Poway COUNCIL AGENDA REPORT APPROVED □ APPROVED AS AMENDED 0 (SEE MINUTES) DENIED □ REMOVED 0 CONTINUED ____ _ RESOLUTION NO. DATE: May 7 , 2019 TO: FROM: CONTACT: Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services fv' Jeff Beers, Special Projects Engineer ~ (858) 668-4624 or jbeers@poway.org SUBJECT: Award of Contract for the 2018-2019 Street Overlay Project; Bid No. 19-013 Summary: The 2018-2019 Street Overlay Project consists of asphalt cold milling and inlay on Lomax Street, Papago Drive, and Robison Boulevard. Work will also include asphalt cold milling and patching and pedestrian ramp removal and replacement on Pomerado Road . Recommended Action: It is recommended that the City Council award the contract for the 2018-2019 Street Overlay Project to SRM Contracting and Paving , the lowest responsible bidder, in the amount of $562 ,440.00. Discussion : The contract time for this project is 25 working days. The engineer's estimate is $700,000.00. Bids were opened on April 16, 2019. The following eleven bids were received : Company Bid Amount SRM Contracting and Paving $562 ,440.00 Portillo Concrete, Inc. $615,570.00 PAL General Engineering $615,61 5 .00 LC Paving & Sealing, Inc. $629,284.50 ATP General Engineering Contractors , LLC $635,811 .7 1 Hazard Construction Co. $639,839 .00 Eagle Paving $647,230.00 Frank & Son Paving , Inc. $649,273.50 Blue Pacific Engineering & Construction $660,596 .60 Hardy & Harper Inc. $686,333.00 Ramona Paving & Construction Corp., Inc. $760,610.40 1 of 2 May 7, 2019, Item #1.4 Environmental Review: The proposed asphalt/concrete pavement rehabilitation of ex isting City streets in the 2018-2019 Street Overlay Project is Categoric ally Exe mpt from the California En v ironmental Quality A ct (CEQA) as a Class 1 Categorical Exemption, pursuant to Section 15301 (c ) of the CEQA Guidelines, in that the project involves negligible or no expansion of exis ting highways and streets , sidewalks , gutters, bicycle and pedestrian trails , or other similar facilities . Fiscal Impact: Funding in the amount of $645 ,699 is available in the Roadway R&M Eng Srv-Cong Rel account (411040-43202) for the award of this contract. Public Notification: SRM Contracting & Paving , 7192 Mission Gorge Road, San Diego, CA 92120 Attachments: None Reviewed/Approved By : Wendy Kaserman Assistant City Manager 2 of 2 Re viewed By : Alan Fenstermacher City Attorney Approved By: ~;~ Tina White City Manager May 7, 2019, Item #1.5 APPROVED □ City of Poway COUNCIL AGENDA REPORT APPROVED AS AMENDED □ (SEE MINUTES) DENIED REMOVED □ □ CONTINUED ____ _ DATE: TO: FROM: CONTACT: SUBJECT: Summary: May 7, 2019 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services M Melody Rocco , Senior Civil Engineer ~ (858) 668-4653, mrocco@poway.org RESOLUTION NO. Approval of Consultant Agreement between the City of Poway and IEC for Design Services for the Clearwell Upgrades Project; (CIP #WTR0020) This Consultant Agreement will provide design services for the Clearwell Upgrades Project. Recommended Action: It is recommended that the City Council authorize the City Manager to execute the Agreement with Infrastructure Engineering Corporation (IEC) for Design Services for the Clearwell Upgrades Project per the outlined terms of the Consultant Agreement (Attachment A). Discussion: The City's Water Treatment Plant treats raw water provided by the San Diego County Wate r Authority. Treated water from the plant is held in the Clearwell, which is a 10-million-gallon concrete reservoir with a floating cover, prior to entering the distribution system . The floating cover was last replaced in 1998. On March 5, 2019 , the Development Services Department put out a Request for Proposal (RFP #19-017) for design services for the Clearwell Upgrades Project and received one proposal. This project includes completion of a site assessment report for the Clearwell as well as development of plans, specifications, and estimates for replacement of the Clearwell floating cover and maintenance of hatches and stairs for the Clearwell. After careful review of the one proposal received , staff determined that IEC was highly qualified for the design work required. Approval of this Agreement will provide professional design services for the Clearwell Upgrades Project. The scope of the services will be conducted in two parts. The first part includes performing a preliminary investigation/site assessment that will be used to develop future maintenance/rehabilitation projects at the Clearwell. The second part will be conducted concurrently with the assessment and includes preparation of the construction documents necessary for replacement of the floating cover and other maintenance items. The consultant will assist City staff with the construction administration tasks as well as specialty inspection of the floating cover installation. 1 of 26 May 7, 2019, Item #1.5 Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The consultant's fee will be based on the scope of work as outlined in the Agreement. The not- to-exceed fee of $385,821 for design services will be the basis for this effort. There is $520 ,000 .00 currently available in the Clearwell Upgrades Project (WTR0020). Public Notification: IEC , 14271 Danielson Street, Poway, CA 92064 Attachments: A. Consultant Agreement Reviewed/Approved By: Wendy Kaserman Assistant City Manager 2 of 26 Reviewed By : Alan Fenstermacher City Attorney Approved By : ~Tu-~ Tina M . White City Manager May 7, 2019, Item #1.5 ATTACHMENT A City of Poway STANDARD AGREEMENT FOR SERVICES This Agreement, entered into this 8th day of May, 2019, by and between the CITY OF POWAY (hereinafter referred to as "City") and INFRASTRUCTURE ENGINEERING CORPORATION (hereinafter referred to as "Consultant"). RECITALS WHEREAS, City desires to obtain the services of a private consultant to perform design services for the Clearwell Upgrades Project (Project); and WHEREAS, Consultant is a civil engineering consultant and has represented that Consultant possesses the necessary qualifications to provide such services; and WHEREAS, City has authorized the preparation of an agreement to retain the services of Consultant as hereinafter set forth. NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONSUL TANT ON THE FOLLOWING TERMS AND CONDITIONS: 1. Scope of Services. Consultant shall provide services as described in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 2. Compensation and Reimbursement. City shall compensate and reimburse Consultant as provided in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 3. Term of Agreement. The term of this Agreement shall be as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof. 4. Termination. This Agreement may be terminated with or without cause by City. Termination without cause shall be effective only upon 60-day written notice to Consultant. During said 60- day period Consultant shall perform all consulting services in accordance with this Agreement. This Agreement may be terminated by City for cause in the event of a material breach of this Agreement, misrepresentation by Consultant in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City. Termination for cause shall be effected by delivery of written notice of termination to Consultant. Such termination shall be effective upon delivery of said notice. 1 3 of 26 May 7, 2019, Item #1.5 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. 2 4 of 26 May 7, 2019, Item #1.5 "Consultant" means an individual who, pursuant to a contract with a state or local agency: (A) Makes a governmental decision whether to: 1. Approve a rate, rule or regulation; 2. Adopt or enforce a law; 3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement; 4. Authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires City approval; 5. Grant City approval to a contract that requires City approval and to which the City is a party, or to the specifications for such a contract; 6. Grant City approval to a plan, design, report, study, or similar item; 7. Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or (B) Serves in a staff capacity with the City and in that capacity participates in making a governmental decision as defined in the Political Reform Act and/or implementing regulations promulgated by the Fair Political Practices Commission, or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code. DISCLOSURE DETERMINATION: C8] 1. ConsultanUContractor will not be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. No disclosure required. D 2. ConsultanUContractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, ConsultanUContractor 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) 3 5 of 26 May 7, 2019, Item #1.5 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, "lndemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless lndemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses, including reasonable attorneys' fees and disbursements (collectively "Claims"), which lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of Consultant's negligent performance under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees. (b) For Claims alleged to arise from Consultant's negligent performance of professional services, lndemnitees shall have no liability to Consultant or any other person for, and Consultant shall indemnify and hold harmless lndemnitees from and against, any and all Claims that lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise to the extent occurring as a result of Consultant's negligent performance of any professional services under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees, committed in performing any of professional services under this Agreement. For Claims alleged to arise from Consultant's professional services, Consultant's defense obligation to lndemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Consultant's negligence. 4 6 of 26 May 7, 2019, Item #1.5 (c) The foregoing obligations of Consultant shall not apply to the extent that the Claims arise from the sole negligence or willful misconduct of City or its elected and appointed boards, officials, officers, agents, employees and volunteers. (d) In any and all Claims against City by any employees of the Consultant, anyone directly or indirectly employed by it or anyone for whose acts it may be liable, the indemnification obligation under this Section 15 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Consultant under worker's compensation acts, disability benefit acts or other employee benefit acts. (e) Consultant shall, upon receipt of written notice of any Claim, promptly take all action necessary to make a claim under any applicable insurance policy or policies Consultant is carrying and maintaining; however, if Consultant fails to take such action as is necessary to make a claim under any such insurance policy, Consultant shall reimburse City for any and all costs, charges, expenses, damages and liabilities incurred by City in making any claim on behalf of Consultant under any insurance policy or policies required pursuant to this Agreement. (f) The obligations described in Section 15(a) through (e) above shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person indemnified pursuant to this Section 15. (g) The rights and obligations of the parties described in this Section 15 shall survive the termination of this Agreement. 16. Assumption of Risk. Except for injuries to persons caused by the willful misconduct of any lndemnitee and not covered by insurance maintained, or required by this Agreement to be maintained, by Consultant: (a) Consultant hereby assumes the risk of any and all injury and damage to the personnel (including death) and property of Consultant that occurs in the course of, or in connection with, the performance of Consultant's obligations under this Agreement, including but not limited to Consultant's Scope of Services; and (b) it is hereby agreed that the lndemnitees are not to be liable for injury or damage which may be sustained by the person, goods or property of Consultant or its employees in connection with Consultant's performance its obligations under this Agreement, including but not limited to Consultant's Scope of Services. 17. Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever. 18. Personnel. Consultant shall assign qualified and certified personnel to perform requested services. The City shall have the right to review and disapprove personnel for assignment to Poway projects. City shall have the unrestricted right to order the removal of any person(s) assigned by Consultant by giving oral or written notice to Consultant to such effect. 5 7 of 26 May 7, 2019, Item #1.5 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. Certification and Indemnification Regarding Public Employees' Retirement Law/Pension Reform Act of 2013. Contractor hereby certifies that all persons providing services to City by Contractor are not current members of the California Public Employees' Retirement System (CalPERS) and shall not become members of CalPERS while providing services to City. 6 8 of 26 May 7, 2019, Item #1.5 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) 7 9 of 26 May 7, 2019, Item #1.5 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written. CITY OF POWAY By: --,-,--,--,----,-,---,,-,----,-,---- Chris Hazeltine, City Manager Date: ----------- ATTEST: Faviola Medina, City Clerk APPROVED AS TO FORM: By: --------,--=---,-,----- Alan Fenstermacher, City Attorney 10 of 26 8 INFRASTRUCTURE ENGINEERING CORPORATION By: --,,--,-----,-,..,....,---,,----,--,----- Robert Weber, President Date: ------------ May 7, 2019, Item #1.5 "SPECIAL PROVISIONS" EXHIBIT "A" A. Scope of Services. Consultant agrees to perform consulting services as required by City, which shall consist of the design services further described in the Scope of Services submitted with the proposals dated April 15, 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 April 15, 2019, which are included in this document as Attachment 2. Total fee is not to exceed $385,821. 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 lime incurred. C. Term of Agreement. This Agreement shall commence and be effective as of May 8, 2019 ("Effective Date"), and shall automatically terminate upon completion of the Project, as determined by the City in its sole discretion, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." Upon the termination of this Agreement, Consultant shall return to City any and all equipment, documents or materials and all copies made thereof which Consultant received from City or produced for City for the purposes of this Agreement. D. Consultant's Insurance. 1. Coverages: Consultant shall obtain and maintain during the life of this Agreement all of the following insurance coverages: (a) Comprehensive General Liability, including premises-operations, products/completed, broad form property damage, and blanket contractual liability with the following coverages: General Liability $1,000,000 Bodily Injury and Property Damage combined each occurrence and $2,000,000 aggregate. 1 11 of 26 May 7, 2019, Item #1.5 (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: To Consultant: 2 12 of 26 City of Poway -Development Services 13325 Civic Center Drive Poway, CA 92064 Infrastructure Engineering Corporation 14271 Danielson Street Poway, CA 92074 May 7, 2019, Item #1.5 EXHIBIT "8" Cal Gov Code§ 7522.56 Deering's California Codes are current through all 1016 chapters of the 2018 Regular Session and the November 6, 2018 Ballot Measures. Deering's California Codes Annotated> GOVERNMENT CODE> Title 1 General> Division 7 Miscellaneous > Chapter 21 Public Pension and Retirement Plans > Article 4 California Public Employees' Pension Reform Act o/2013 § 7522.56. Provisions applicable to person receiving pension benefit from public retirement system; Section supersedes conflicting provisions (a)This section shall apply to any person who is receiving a pension benefit from a public retirement system and shall supersede any other provision in conflict with this section. (b) A retired person shall not serve, be employed by, or be employed through a contract directly by, a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, except as permitted by this section. (c) A person who retires from a public employer may serve without reinstatement from retirement or loss or interruption of benefits provided by the retirement system upon appointment by the appointing power of a public employer either during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration. ( d)Appointments of the person authorized under this section shall not exceed a total for all employers in that public retirement system of960 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) 13 of 26 (!)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 I May 7, 2019, Item #1.5 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: 14 of 26 (l)The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar. (2) (A)Except as otherwise provided in this paragraph, for state employees, the state employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed state employment position before 180 days have passed and the appointment has been approved by the Department of Human Resources. The department may establish a process to delegate appointing authority to individual state agencies, but shall audit the process to determine if abuses of the system occur. If necessary, the department may assume an agency's appointing authority for retired workers and may charge the department an appropriate amount for administering that authority. (B)For legislative employees, the Senate Committee on Rules or the Assembly Rules Committee certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar. (C)For employees of the California State University, the Trustees of the California State University certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar. (3)The retiree is eligible to participate in the Faculty Early Retirement Program pursuant to a collective bargaining agreement with the California State University that existed prior to January 1, 2013, or has been included in subsequent agreements. (4)The retiree is a public safety officer or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter. 2 May 7, 2019, Item #1.5 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 (I) a subordinate judicial officer whose position, upon retirement, is converted to a judgeship pursuant to Section 69615, and he or she returns to work in the converted position, and the employer is a trial court, or (2) a retiree of the Judges' Retirement System or the Judges' Retirement System II who is assigned to .serve in a court pursuant to Section 68543.5. History Added Stats 2012 ch 296 § 15 (AB 340). effective January I, 2013. Amended Stats 2013 ch 528 § 11 (SB 13). effective October 4, 2013 (ch 528 prevails); ch 76 § 75 (AB 383), effective January I, 2013; Stats 2014 ch 238 § 1 (AB 2476). effective January I, 2015. Annotations Notes Amendments: Note- Amendments: 2013 Amendment: Substituted (I) "have passed" for "has passed" in the first sentence of subds (f)(l) and (f)(2); (2) "or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter" for "of firefighter" in subd (f)(4); and (3) "Judges' Retirement System" for "Judges' Retirement System I" in subd (i). 3 15 of 26 May 7, 2019, Item #1.5 Attachment 1 SCOPE OF SERVICES OVERVIEW • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • The City of Poway (City) is proceeding with a project to replace the floating cover on the Clearwell at the Lester J. Berglund Water Treatment Plant (WTP). Included with this effort, the City is seeking condition information and a replacement/rehabilitation plan for key components of the Clearwell. The City has selected Infrastructure Engineering Corporation (IEC) to provide engineering services in support of the project (Project). The services for the Project will encompass the following major elements: Inventory and assessment of the Clearwell components: geomembrane liner, inlet/outlet and overflow structures in the Clearwell, the 42" and 30" effluent pipes between the WTP and the Clearwell, inlet/outlet pipelines between the Clearwell and the Pump Station No. 1, and Clearwell drain pipes. • A rehabilitation/rehabilitation plan for the Clearwell components. • Plans, specifications and opinion of construction cost estimate (PS&E) for the replacement of the Clearwell floating cover, including the hatches, stairs and drain pumps. • Engineering support during the bid and construction phases of the project. • Construction inspection during the floating cover work. • Optional task to provide additional services if needed: -Surveying to develop base file for the floating cover design Described below are the specific tasks to be performed by IEC fort he Project. All tasks are directed to IEC unless otherwise noted. SCOPE OF SERVICES • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • TASK 1 -PROJECT KICK-OFF AND DATA COLLECTION------------- Receive from City and review available documentation, reports, and record drawings. Prepare for and attend kick-off meeting with City Engineering and WTP operations staff. This meeting will be at the WTP and will include a site walk to discuss and coordinate the project scope, schedule, and identify potential additional project elements. TASK 2-CLEARWELL ASSESSMENT--------------------- 2.1 -ULTRASONIC TESTING INVESTIGATION OF EFFLUENT PIPELINE For the effluent pipe segment in the pipe gallery, make a visual assessment of the pipe condition, and take coating thickness measurements, surface pit depth (if any) measurements, and spot ultrasonic testing measurements to obtain pipe wall thickness. City staff will make access available to the gallery by removing the grates and providing a ladder. 2.2-MATERIAL TESTING OF CLEARWELL GEOMEMBRANE LINER Obtain coupons of the geomembrane liner material, roughly 2 ft x 4 ft in size each, at up to four (4) locations and have them tested for thickness, tensile strength, tensile elongation, tear strength, puncture strength and high temperature City of Poway Scope of Services for Clearwell Upgrades Project 16 of 26 IEC May 7, 2019, Item #1.5 SCOPE OF SERVICES oxidation induction time. This will involve cutting the existing floating cover above the high water level to expose the geomembrane liner and will require patching of holes in the geomembrane liner and floating cover. Repairs to the existing floating cover and geomembrane liner will be performed by City staff or the City will engage a geomembrane specialty contractor to perform these repairs. 2.3 -FACILITY INVENTORY AND ASSESSMENT Provide guidance and coordination with the Clearwell diver engaged by the City to inspect specific elements of the geomembrane liner. Meet once onsite with the diver. Receive and review the diver observations and photographs. Conduct a site visit with WTP staff to observe the accessible pipeline segments and valves on the WTP effluent pipe and Clearwell inlet/outlet/drain pipes. Using the information obtained from the effluent pipe wall thickness assessment, make a general evaluation of the pipe condition and potential remaining life of the pipe. Using the information obtained from the liner testing and dive observations, make an assessment of the condition and remaining useful life of the liner. Develop estimates for new floating cover drain pump system including possible need for to electrical power supply system upgrades. From the information compiled above, prepare a Draft Assessment Report that includes text and graphics (llx17) to present: a. Inventory of the Clearwell piping and appurtenances: identify current condition, useful life, recommended maintenance, rehabilitation, and/or replacement schedule. b. Formulate a phased, systematic, multi-year rehabilitation/replacement plan with cost estimates, by component, for required work (if necessary based upon results of the assessment). c. Identify any future regulatory requirement changes and impacts of those changes. Submit draft report in PDF format for City review. Following receipt of City comments, meet once with City staff to discuss report and comments. Prepare a final report that incorporates agreed upon comments in Word and PDF format. TASK 3-DESIGN-------------------------- 3.1 -PLANS, SPECIFICATIONS AND ESTIMATE Prepare plans, specifications, and engineer's opinion of probable construction cost estimates (PS&E) for the replacement of the floating cover, including access hatches, vents, access stairs, floating cover surface water drain pumps, and pump electrical system modifications (if needed), The plan set is estimated to include the following: • Two (2) General sheets including a title sheet, list of abbreviations, legend, general notes and key map • One (1) Floating Cover Notes • One (1) Demolition Plan • One (1) Construction Sequence Plan • Twenty-one (21) Floating Cover Plan and Details • Five (5) Electrical Notes, Plan and Details • Three (3) Erosion Control Plan and Details City of Poway Scope of Services for Clearwell Upgrades Project ~ 17 of 26 IEC May 7, 2019, Item #1.5 SCOPE OF SERVICES The PS&E will be prepared according to the following parameters: • Five (5) hard-copy sets of plans, specifications, estimates, and contract documents will be submitted for City review at the 50%, 90% and 100% design stages. • Project design will be prepared in AutoCAD format, 2018 version, per the City's standards for Public Works contracts. The scale of the plans will be 1"=20 feet or as appropriate to depict the work for the respective discipline. • Contract specifications will consist of mark-ups of the City's General and Technical Provisions to make them project specific and will utilize current Greenbook and City supplemental specifications where practical. Additional supplemental specifications, such as the floating cover, will be provided in CSI format. • The engineer's opinion of probable construction cost will include estimated quantities and unit costs for the proposed improvements at each submittal. • Provide an estimated number of working days for the construction work. • Prepare plans for temporary erosion control for the project. Erosion control design will include current Best Management Practices and will conform to the City's JRMP requirements and applicable State agency requirements. The 50% design submittal will include the following level of detail: • Preliminary general sheets, plan view sheet for the floating cover, and general electrical plan sheet. • Specifications will include a list of the City's standard specifications and proposed supplementary specifications. • The Engineer's Opinion of Probable Construction Cost will include the base estimate and an appropriate level of contingency. The 90% design submittal will include the following level of detail: • Plans will be developed from the approved 50% drawings and include all plan, sections and details for all disciplines to the 90% complete level. • Specifications will include complete text for proposed supplementary specifications. • The Engineer's Opinion of Probable Construction Cost will be refined to incorporate the additional detail of the 90% submittal. The 100% design submittal will include the following level of detail: • Plans will incorporate City comments on the 90% design. 100% plans are Intended to be final and will provide the City the opportunity to provide final comments prior to the production of final contract documents. • Specifications will incorporate City comments on the 90% design. 100% specifications are intended to be final and will provide the City the opportunity to provide final comments prior to the production of final contract documents. • The Engineer's Opinion of Probable Construction Cost will be refined to incorporate City comments. Costs will be refined to account for changes from the 90% submittal. City of Poway Scope of Services for Clearwell Upgrades Project ~ 18 of 26 IEC May 7, 2019, Item #1.5 SCOPE OF SERVICES The final submittal will be comprised of: • Bid-ready package of plans and specifications, stamped and signed by the Engineer of Record and the respective disciplines. • Mylar drawings (one set) • CD containing PDF version of all drawings, CAD files for the general and layout drawings, and Word files for each supplemental technical specification section. 3.2 -DESIGN COORDINATION MEETINGS Prepare for and attend up to three (3) design review/coordination meetings scheduled to occur after each of the PS&E submittals above. TASK 4 -DOW COORDINATION -------------------- Prepare for and attend one meeting with California State Water Resources Board -Division of Drinking Water (DDW) to describe the project and get initial input. Submit the plans and specifications to DDW at the 50% and 90% design stages. Respond their questions and incorporate their comments into subsequent submittals. Assist the City with obtaining DDW approval for project. Provide these services on a time and materials basis up to the level of effort defined in the task budget. TASK 5-PROJECT MANAGEMENT DURING DESIGN--------------- Administer the project and subconsultant contracts. Provide monthly status reports describing progress during previous period, anticipated activities in upcoming period, and any pertinent project issues. Additional correspondence will be handled via phone and email correspondence as needed. TASK 6-ENGINEERING SUPPORT DURING BID AND CONSTRUCTION PHASES------ 6.1 -ENGINEERING SUPPORT DURING BID PHASE Attend pre-bid meeting. Provide technical support relative to bidder questions and prepare a response to any questions within four (4) working days during the bidding period -submit responses to City as PDF. Provide these services on a time and materials basis up to the level of effort defined in the task budget. Addenda will be prepared and issued by the City. 6.2 -ENGINEERING SUPPORT DURING CONSTRUCITON PHASE Provide support to the City related to the following activities up to the level of effort defined in the task budget: • Attend the pre-construction meeting. • Attend up to eight (8) construction progress meetings as requested by the City. City will organize meetings and prepare/distribute minutes. • Floating cover designer will make a total of up to twelve (12) one-day site visits to observe the floating cover construction at various stages. Provide written documentation of observations to the City in PDF format. 4 City of Poway Scope of Services for Clearwoll Upgrades Project 19 of 26 IEC May 7, 2019, Item #1.5 SCOPE OF SERVICES • Review contractor submittals received from the City for conformance with the contract documents. Provide written response to the City via e-mail noting exceptions and/or comments within fifteen (15) working days. Estimate up to thirty (30) submittal item reviews and re-reviews. • Review and respond to change orders, field orders, and RFls forwarded from the City. Provide responses (in e- mail or memorandum format) to the City within five (5) working days and in accordance with the contract documents. Estimate up to ten (10) responses to change orders, field orders, and RFls. • Prepare record drawings by incorporating "red-lined" changes, as documented and recorded by the contractor and/or construction manager, on the original Mylars. If the extent of changes makes it impractical to revise an original Mylar sheet, individual original Mylar sheets may be voided and replacement sheets may be added. Within one month of the receipt of the red lines, submit one set of original mylar record drawings and PDF file of all drawings. • In conjunction with the engineering services under this task, provide project management services during the construction phase: coordinate subconsultants and submit monthly reports describing progress during previous period, anticipated activities in upcoming period, and any pertinent project issues. TASK 7 -CONSTRUCTION INSPECTION ----------------- The services described below and level of effort estimated for this task assumes a construction period of up to seven (7) months total: two (2) months for procurement and fabrication of the floating cover and four (4) months for installation, and one (1) month for close-out. Provide these services on a time and materials basis up to the level of effort defined in the task budget. • Preconstruction Conference -Attend conference with Contractor and City. • Contract Administration/Management -Coordinate sub-consultant testing and specialty services; provide daily construction reports; notify the City of significant problems and discrepancies; perform inspections; review the contractor's Record Drawings periodically and concurrently with contractor progress payments; and prepare project punch lists. Receive from City and review pertinent documents (e.g. shop drawings, submittals, responses to RFls, change orders, progress payment requests). • Photo Documentation -Review the Contractor's videotape of preconstruction site conditions prior to any construction operation to confirm existing conditions within the limits of work, adjacent areas to document and clearly depict pre-existing conditions. Take construction documentation photographs on a regular basis. Maintain a digital photographic library of significant construction activities. • Construction Progress Meetings -Attend weekly construction progress meetings with the Contractor and the City. • Construction Inspection -Provide part-time observation of the Contractor's work for compliance with the contract documents. This effort is estimated to encompass an average ofup to 2/3 time for the onsite inspector during the estimated 4 months of active construction. Perform technical inspection at the job site as required of materials and workmanship, and discuss with the Contractor appropriate revisions to the methods and procedures used in performing the work. The inspectors will not authorize extra work or approve of work that deviates from the contract documents. Inspection does not include material manufacturing or shop fabrication inspections. 5 City of Poway Scope of Services for Clearwell Upgrades Project IEC 20 of 26 May 7, 2019, Item #1.5 SCOPE OF SERVICES • Progress Payments -Prepare project-related invoices and progress payments. Submit all invoices to the City's project manager with a recommendation stating the proper amount for payment. Use City provided format for monthly progress payments. • Project Closeout -Prepare punch list at closeout of the project. Upon correction of deficiencies, schedule, coordinate, and conduct a final walk-through prior to the acceptance of work with the City. Confirm that work, testing, cleanup and demobilization is complete. Check and submit final payment requests. Review and confirm that the contractor's project record drawings are complete and accurate. OPTIONAL TASK O-l -SURVEYING/MAPPING ---------------- Perform a field topographic survey of the Clearwell and adjacent area and prepare base map for the development of the design plans. If authorized, these services will be provided in conjunction with Task 3. SCHEDULE •••••••••••••••••••••·•••••••0 ••••••••••••••••••••0 •••••• Based on a Notice to Proceed on May 13, 2019, assuming timely scheduling of meeting and responses for information, and allowing two (2) weeks for submittal reviews by the City, the milestones for the major design phase tasks described above are estimated per the table presented below. MILESTONE ESTIMATED DATE Final Assessment Report Final PS&E Submittal Bid and Award Completion (estimated assuming 2 months for City processing) Construction Completion (estimated assuming 7 months for construction) August 9, 2019 August 30, 2019 October 31, 2019 May 2020 The schedule for the Draft Assessment Report assumes that the Clearwell liner coupon sampling, City-engaged dive inspection of the Clearwell, and effluent pipe testing can be scheduled during the data collection period. The schedule for the PS&E assumes that optional surveying effort (Task 0-1) will not be required and that the preparation of the design will proceed in parallel with the Assessment Report effort. The intermediate submittal deadlines will be coordinated with the City at the outset of the project. The schedule for Tasks 6 and 7, support during the Bid and Construction Phases, will depend on the City's actual schedule for the bidding, award and construction phases. 6 City of Poway Scope of Servicu for Cleorwell UpgrodH Project 21 of 26 IEC May 7, 2019, Item #1.5 SCOPE OF SERVICES INFORMATION AND SUPPORT TO BE PROVIDED BY CITY • • • • • • • • • • • • • • • • • • • • • • • Following is a description of what is expected and required from the City to execute the Project described above: • Provide all as-built plans and information regarding WTP operations pertinent to the assessment, design and construction of Project. • Operate valves associated with Clearwell and report on valve performance and tightness. • Assist with field assessment of valves. • Provide access to plant for data collection on effluent pipeline including coordination with operators, access to plant area, access to effluent pipe gallery by removing the grates and providing a ladder, facilitate access to pipe via the weir vault, and temporary shutdown of flow in the effluent pipe. Perform floating cover annual dive inspection at beginning of Assessment Study phase and allow dive inspection to include pertinent areas of interest for the geomembrane liner assessment. • Assist with removal of geomembrane liner coupons for testing. Repair floating cover and geomembrane liner following coupon removal. • Define existing SCADA equipment and requirements so they can be replaced-in-kind as part of the floating cover replacement. • Provide input regarding acceptable contractor staging areas. • Provide timely review/comment on submittals. • Have decision makers available in a timely manner for meeting and site walks. • Consolidate all design submittal comments and any divergent or contradictory comments reconciled prior to return to IEC. • Assist in managing scope creep. • Return phone call and email correspondence and respond to questions and requests for documents in a timely manner. • Provide submittal review comments within the agreed upon scheduled review period. • During the construction phase, City will provide general construction management and administration of the project including: City of Poway o Project Management -Initiate project activities and provide general project oversight. Establish document control system and procedures for documenting communications and correspondence. Provide examples of forms (e.g. submittals and RFls) that IEC and Contractor will be required to use. o Preconstruction Conference -Schedule and conduct a conference with the Contractor to cover overall project objectives, responsibilities of key personnel and agencies, schedules, schedule of values, submittal and RFI processing, correspondence, permit requirements, progress payments, and other pertinent topics. o Contract Administration/Management -Handle contract compliance, change/claims processing, negotiations and contract interpretation and enforcement. Document and distribute relevant project communications to applicable parties; conduct meetings; coordinate with WTP operators regarding 7 Scope of Services for Clearwell Upgrades Project 22 of 26 IEC May 7, 2019, Item #1.5 SCOPE OF SERVICES connections and operations; investigate claims; ensure stormwater compliance; prepare project punch lists; and other tasks as pertinent to management of the contract. o Reports and Communications-Maintain field memoranda, transmittals, updated schedules, logs of shop drawings and other submittals, logs of requests for information, change orders, progress payment requests, progress meeting reports, daily inspection reports, dates of utility service interruptions, and all other project correspondence. o Construction Progress Meetings-Schedule and conduct weekly construction progress meetings with the Contractor. Provide and distribute meeting agendas and minutes of the meetings with identified action items. o Shop Drawings and Submittal Reviews -Log, track, distribute and monitor shop drawings, data samples, submittals, and manuals from the Contractor. Submit shop drawings and submittals to IEC design team for review. Submit accepted submittals to the IEC inspection team during construction. o Plans and Specifications Interpretation -Review and respond to Contractor RFls that are of a general nature. Submit technical RFls to IEC for response. o Progress Payments -Process project-related invoices and progress payments. o Contractor Claims and Change Orders -Administer Contractor or City initiated claims, changes, extra work, and change orders. Negotiate all claims to an agreed contractor/designer/ City conclusion. o Stormwater Inspection -Provide observation to confirm that Contractor's work is in compliance with the State Water Resources Control Board (SWRCB) and Order No. 2009-0009-DWQ for Waste Discharges of Storm Water Runoff Associated with Construction and Land Disturbance Activities Construction General Permit (CGP). Prepare National Pollutant Discharge Elimination System (NPDES) reports as required per requirements. o Project Closeout -Coordinate with IEC inspector for review of punch list at closeout of the project, and assist with final walk-through prior to the acceptance of work. Process final payment requests. ASSUMPTIONS • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1. The following elements are not included but can be can be added upon mutual written agreement: a. Coordination with outside utility agencies (e.g. SDG&E for modified power supply) and the design for any utility relocations. b. Services associated with procurement or replacement of the geomembrane liner, inlet/outlet pipes and valves. c. Instrumentation and SCADA system modifications or upgrades. d. Site improvements adjacent to the Clearwell (e.g. paving and peripheral erosion control measures). e. Support for Clearwell start-up and preparation of operation and maintenance manuals. f. Clearwell start-up services 2. City will pay all permit and review fees required by reviewing agencies (e.g. DDW). 8 City of Poway Scope of Services for Cleorwell Upgrades Proiect 23 of 26 IEC May 7, 2019, Item #1.5 SCOPE OF SERVICES 3. It is assumed, but not certain, that DDW will allow partial floating cover removal and replacement while the adjacent half of Clearwell remains in operation. Design changes or additional efforts beyond those described in the Scope of Services above that may be needed to address special requirements (e.g. develop extraordinary measures to protect water quality, design rework, or scope changes due to DDW's disapproval this construction approach) are not included but can be can be added upon mutual written agreement. 4. Clearwell is not a CA Department of Safety of Dams (DSOD) jurisdictional facility and therefore DSOD coordination, reviews, and approvals are not included. 5. Fee includes up to (4) existing geomembrane liner material samples with testing costs not to exceed $2,500. 6. For SCADA, City will define existing measurement devices in the Clearwell and they will be defined as replace in kind. 7. Noise analyses, surge analyses, or hazardous materials assessments are not required. 8. Environmental permit compliance and permit requirements will be provided by others. Compliance requirements pertinent to the construction will be included in the project specifications during design. 9. Project design will comply with regulations and codes in force at the time of the design. 10. Unless specifically provided In the scope of services, IEC will rely upon the accuracy of data and information provided by the City or others without independent review or evaluation. 11. Opinions of construction cost prepared by IEC represent our judgment as a design professional and are supplied for the general guidance of the City. Since IEC has no control over the cost of labor and material, or over competitive bidding or market conditions, IEC does not guarantee the accuracy of such opinions as compared to contractor bids or actual cost to City. 12. Documents, drawings, specifications, and electronic information/data, including computer aided drafting and design ("CADD"), prepared by IEC and its subconsultants pursuant to this agreement are not intended or represented to be suitable for reuse by City or others on extensions of the Project or on any other project. Any use of completed documents for other projects and any use of incomplete documents without specific written authorization from IEC will be at City's sole risk and without liability to IEC or its subconsultants. Electronic data delivered to City is for City's convenience and shall not include the professional stamp or signature of an engineer or architect. City agrees that IEC and its subconsultants shall not be liable for claims, liabilities or losses arising out of, or connected with the decline of accuracy or readability of electronic data due to inappropriate storage conditions or duration. 13. IEC and its subconsultants are not qualified nor licensed to address hazardous materials. As such, IEC and its subconsultants shall have no responsibility for the discovery, presence, handling, removal or disposal of, or exposure of persons to hazardous materials in any form, if such is present at any of the project sites. 14. The construction contractor will be required to assume sole and complete responsibility for job site conditions during the construction of the project, including safety of all persons and property. IEC shall not have control over or charge of, and shall not be responsible for, construction means, methods, techniques, sequences or procedures, as these are solely the responsibility of the construction contractor. City of Poway Scope of Services for Clearwell Upgrades Project ~ IEC 24 of 26 May 7, 2019, Item #1.5 SCOPE OF SERVICES IEC 2019 HOURLY CHARGE RATE & EXPENSE REIMBURSEMENT SCHEDULE • • • • • • • Engineering Environmental Engineering Intern/Technician .................. $ 80 Intern/Technician .......................................... $ 80 CADD Designer I/Engineer 1 ......................... $ 130 Technical Editor ............................................. $ 110 CADD Designer II/Engineer 11 ....................... $ 145 Env Specialist I/Project Coordinator 1 ............ $ 120 CADD Designer Ill/Engineer Ill .................... $ 155 Graphic Artist ................................................ $ 120 Project Designer ......................................... $ 160 Lead Technical Editor ..................................... $ 130 Senior Designer/Project Engineer ............... $ 170 Env Specialist II/Project Coordinator 11. ........ $ 145 Senior Project Engineer ............................... $ 185 Env Specialist Ill/Project Coordinator 111 ........ $ 155 Senior Project Engineer Planning & 15 ......... $ 200 Project Manager ............................................ $ 210 Project Manager ......................................... $ 220 Senior Project Manager ................................. $ 235 Senior Project Manager .............................. $ 235 Principal. ....................................................... $ 250 Principal ...................................................... $ 250 Program Management Surveying Assistant Program Manager .......................... $ 155 Survey Assistant 1.. ...................................... $ 125 Program Manager ......................................... $ 185 Project Surveyor ......................................... $ 145 Principal. ...................................................... $ 250 Principal Surveyor ....................................... $ 170 Field -1 Person• ........................................ $ 170 Field - 2 Person Crew• ............................... $ 260 Flow Monitoring Field Tech 1. .................................................... $ 80 Field Tech 11. ................................................... $ 100 •construction Field Tech ll1. .................................................. $ 110 Assistant CM Coordinator ........................... $ 100 Field Supervisor ............................................. $ 125 CM Coordinator .......................................... $ 120 Field Operations Manager ............................. $ 160 Senior Construction Inspector .................... $ 150 Project/Data Manager ................................... $ 180 Resident Engineer ....................................... $ 160 Construction Manager ................................ $ 200 Senior Construction Manager ..................... $ 210 Subconsultants will be billed at cost plus 5% unless specified otherwise in the agreement. All base rates will escalate by 3% per annum. • Field personnel rates are inclusive of vehicle, mileage, phone, computer, survey equipment, etc. Inspection rates shown are for prevailing wage projects. Inspection rates for overtime are $30 dollars an hour more than the listed rate. Reimbursable Costs Reproduction, special photography, postage, delivery services, express mail, printing, travel, parking, and any other specialty services performed by subcontractor will be billed at cost plus 15%. Mileage will be billed at the current IRS allowed rate. City of Poway Scope of Services for Cleorwell Upgrade, Project ~ 25 of 26 IEC May 7, 2019, Item #1.5Sr. Proj«t. Sr.Proj«t. -Task/ Enfpn«r/ Task/Subl.8sk Deiac,-.tion --&,g;,-, ~,-Dt!sir,,,ff $235.00 $200.00 $170.00 TASICl PROJECT KICK-OFF ANO DATA COLLECTION ·-.,. Information ' Kick-off meetin.11! ' __ , CLEARWEU. ~ ,., UT lnvesti~ation of Effluent PiD< lln.,, ' ,., Material Testina of Geomembrane Liner ' ,., Factlitl ln..,.ntorv and Ass'""sment Diver Coordination and Site Visit FacUitv Site Vrsit ' Facil;,.,, AssMsm....t and '" " " Assessment R~ Meetln.11! 11 ' ,_, -'" ,., Des""' PS&E: 50% "" ,.,,. final "'" " • lfications ' Ooinion of Construalon Cost ' ,., Coordination Meetln " • ,-, DOW COORDINATION ~!Min~ ' ResD<>nsH to Comments & Coordination ' ·-· PROJECT MANAGEMENT DURING DESIGN Pro"ec! Mana•emenl Durln~ Oesiim "' ·-· ENGINEERING SUPPORT DURING BID & CONSTRUCTION PHASES ,., Bid Phase Attend Pr,._Bld MeelinR ' ResD<>nsH to RFTs durln~ Bid Phase ' ,., Construction Phase Pre-ConMeetin• ' Construction Pro~ress Mfftin " " Floa!ln11 Cow,r Desi,zner Site Visl!s 12 Review Contractor Submittal• ' "" nsHtoRFrs ' Prenare Record Orawin"" ' PM Durin~ Construction Phase " ,_, CONSTRUCTION INSPECTION Construction Administration '"' .. Task Subtotal -Hours "' " 0 Task Subtotal -Costs 538,540 $4,800 " CTTYOFPOWAY CLEARWEU UPGRADE PROJECT INFRASTRUCTURE ENGINEER/NG CORPORATION FEEESTIMATE Enginttrlll/ _,, '"'= Field Sr. Com;UUC!JOl'I CAD Ill Dni<Jner CADll~er ,.,.,., 2-ManO---00 ... $155.00 $145.00 $145.00 $260.00 $210.00 ' ' ' ' ' ' "' " ' ro " " ' " ' • • ' " " • ' • " m ~ 0 0 " $36,735 $6,960 " " 53,360 Page I of2 Residet'lt CM Coordimrtor Enginttr S160.00 $120.00 '"' QO "' 0 $83,200 " Subtask SubUisk DirKI.Cas!. Subalntra,;t ·=' labor-Hours Labor Cost "'" ~.,,, • " "" ,, ~3 360 ;,,,,920 • """ "' ::,2730 ~,oo :>471S3 ' """' so ss 229 S6319 ' 51090 ,0 ,, ::,9490 ' S310 " :)2 310 :>2620 " s,"" "' "'' "'" .. '" ,0 $7 S60 ::.23040 • """ "' 5924 "'" SU4AS3 "' ~20 300 """ 567 935 ~89135 " " .. so $19 S30 $22 330 • .. " $2573 $3 973 " ~3 97S """ ~904S g-• ~1 S60 ~ ;,1785 "'" " 52180 " :.346S ""' ,,.., "' "'"" "' " '""" -~ ' '"" "' :,1365 $231S " $2 650 ~ $178S '"" ' Sl 170 "' 51365 52 545 " "" "' " ~.,., 0 so ~ 530135 530135 " 53 270 " ;,17640 $20910 " ""' " :.5250 57195 " ""' ~ 55670 ""' " 53760 w " :.3 760 510Z 835 "' ~19 360 ,, 5682S ;..<6185 '" 567 200 " :.9450 576 650 '""' $173,595 51,060 $211,166 $385,821 TOTAL FEE (exdudlng Optional Task): $385,821 4,'1512019 )> = Q) C, :::r 3 Cl) :::l .... I\) May 7, 2019, Item #1.6 DATE: TO: FROM: City of Poway COUNCIL AGENDA REPORT May 7, 2019 APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED ____ _ RESOLUTION NO. CONTACT: Honorable Mayor and Members of the City CounR!~ Robert Manis, Director of Development Servicesf \ Jeff Beers, Special Projects Engineer ~ (858) 668-4624 or jbeers@poway.org ~ SUBJECT: Acceptance of the Traffic Signal Controller Upgrades Project; Bid No. 18-009, HMS Construction, Inc. Summary: On December 5, 2017, the City Council awarded the contract for the Traffic Signal Controller Upgrades Project; Bid No. 18-009, to HMS Construction, Inc., in the amount of $228,500 .00. This action will accept the project as complete. Recommended Action: It is recommended that the City Council: (1) Accept the Traffic Signal Controller Upgrades Project as complete; (2) Authorize the City Clerk to file and record the Notice of Completion; (3) Authorize the release of the retention in the amount of $12 ,188.05, if unencumbered, 45 days after City Council acceptance; and (4) Release the Travelers Casualty and Surety Company of America Bond for Material and Labor in the amount of $228,500.00 after the release of retention ; and (5) Retain the Travelers Casualty and Surety Company of America Bond for Faithful Performance for a period of one year. Discussion: This project upgraded existing traffic signals on Twin Peaks Road at the intersections of Midland Road, Community Road , and Silverset Road . Each intersection had been repaired multiple times resulting in a lack of conduit space and usable wiring . The project replaced deteriorated and full conduits as well as faulty wiring , with new larger conduits and conductors . There were two Change Orders for this project which increased the overall contract amount by $15,261.00 for additional pullboxes , extra excavation due to underground barriers and the installation of a side mount battery back-up system . The final contract amount is $243,761 .00. Environmental Review: The matter of acceptance of public improvements that have been completed, which were the subject of a prior environmental determination, is not subject to the California Environmental Quality Act. 1 of 2 May 7, 2019, Item #1.6 Fiscal Impact: Sufficient funds are available in the CIP account (STR0012) for the release of retention . After the retention payment of $12 ,188.05 , the CIP account (STR001 2) will have an available balance of $10 ,431 .81 . Public Notification: HMS Construction , Inc., 2885 Scott Street , Vista , CA 9208 1 Attachments: None Reviewed/Approved By : Wendy Kaserman Assistant City Manager 2 of 2 Reviewed By : Alan Fenstermacher City Attorney Approved By : ~Yh-~ Tina M . White City Manager DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT May 7, 2019 Honorable Mayor and Members of the City Council Donna Goldsmith, Director of Finance� .. Andrew White, Interim Finance Manager uAV 858-668-4426 or awhite@poway.org Comprehensive Annual Financial Report -FY 2017-18 APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED _____ _ Resolution No. Annually, City staff prepares a Comprehensive Annual Financial Report (CAFR) to provide the City Council and the community with a comprehensive review of the City's financial position and the financial transactions for the fiscal year. Recommended Action: It is recommended that the City Council accept and file the attached reports. Discussion: The City has finished its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2018. The accounting firm of Rogers, Anderson, Malody & Scott, LLP (RAMS) is the City's independent auditor, and they have completed their fourth audit of the City's financial statements. Based upon their audit, RAMS has issued an unmodified opinion with regard to the fair representation of the City's financial position, according to generally accepted accounting principles. In addition to their opinion on the City's financial statements, RAMS has issued an audit report for the Poway Housing Authority, the Poway Public Financing Authority, a Gann Appropriations Limit Letter and the Auditor's Communication with Those Charged with Governance letter. For the fiscal year ending June 30, 2017, the City received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) of the United States and Canada. The City is still waiting for the GFOA to complete its review of the CAFR for the year ended June 30, 2018. It has been the City's policy to adopt the latest reporting requirements recommended by the government codes, as well as the Government Accounting Standards Board, and these are reflected in the report. The independent auditor's report from RAMS, as noted on page two (page 23 of 281) of the CAFR, states: "In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type 1 of 281 May 7, 2019, Item #1.7 activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America." In addition to the CAFR (Attachment A), a copy of the Poway Housing Authority audit (Attachment 8), the Poway Public Financing Authority audit (Attachment C), the Gann Appropriations Limit letter (Attachment D), and the Auditor's Communication with Those Charged with Governance letter (Attachment E), are attached. It should be noted that the Poway Housing Authority's and the Poway Public Financing Authority's financial statements also received unmodified audit opinions. The Gann Appropriations Limit letter states that no exceptions to the City's calculation were noted during the performance of the agreed-upon procedures. Finally, no extraordinary items were brought forth in the Auditor's Communication with Those Charged with Governance letter. Environmental Review: This item is not subject to CEQA review. Fiscal Impact: None. Public Notification: None. Attachments: A.CAFR for Fiscal Year Ended June 30, 2018 (Page 3) B.Poway Housing Authority Audit for the Fiscal Year Ended June 30, 2018 (Page 212) C.Poway Public Financing Authority Audit for the Fiscal Year Ended June 30, 2018 (Page 245) D.Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule for the Fiscal Year Ending June 30, 2018 (Gann Appropriations Limit) (Page 271) E.The Auditor's Communication with Those Charged with Governance for the Year Ended June 30, 2018 (Page 274) Reviewed/Approved By: Wendy Kaserman Assistant City Manager Reviewed By: Alan Fenstermacher City Attorney Tina M. White City Manager 2 of 281 May 7, 2019, Item #1.7 Approved ~~ :falP-l n ~     City of Poway Poway, California Comprehensive Annual Financial Report For the Year Ended June 30, 2018 Prepared by the Finance Department of the City of Poway 3 of 281 May 7, 2019, Item #1.7 ATTACHMENT A     This page intentionally left blank. 4 of 281 May 7, 2019, Item #1.7 City of Poway Comprehensive Annual Financial Report For the Year Ended June 30, 2018   Table of Contents ……..i ……vi …..vii viii …...1 …..4 Basic Financial Statements: Government - Wide Financial Statements: 18 20 Fund Financial Statements: Governmental Fund Financial Statements: 23 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position…………….………….…...………………….…………………………… 24 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds……………..….………………………………..……………………...……25 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities …………………..……………...…26 Proprietary Fund Financial Statements: Statement of Net Position…………………………………………………….…………….……………..……28 Statement of Revenues, Expenses and Changes in Net Position…………..…………………….……… 29 Statement of Cash Flows………………………..………..………………………………………….…………30 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position…………………………………………………..………………..………33 Statement of Changes in Fiduciary Net Position…………………………………...………………..………34 35 Required Supplementary Information (Unaudited): 93 94 95 Schedule of Changes in Net Pension Liability and Related 96 Schedule of Plan Contributions, Last 10 Years - Miscellaneous Plan…………………………………………………97 Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and 98 99 Schedule of Changes in Net Pension Liability and Related 100 101 FINANCIAL SECTION INTRODUCTORY SECTION Letter of Transmittal………………….…….…………….…………..…….…......……………………………………….…...…… Principal Officers………………….……………...……………………..………………..……..………….………...…..………… Organization Chart…………….….……..…………………………….….……………………..…………....…………...……...… GFOA Certificate of Achievement for Excellence in Financial Reporting………………….….….…….……….…..………… Independent Auditor's Report…………………….…………………...……………………………………………………….. Ratios, Last 10 Years - Miscellaneous Plan………………………………………………………………….……..… Related Ratios as of the Measurement Date, Last 10 Years - Safety Plan……………………………………… Ratios, Last 10 Years - Retirement Enhancement Plan….……………………………………………………...… Schedule of Plan Contributions, Last 10 Years - Retirement Enhancement Plan.………………….……...………… Management's Discussion and Analysis (Unaudited)……...….……………………….………………………………….. Statement of Net Position……………….....…….……..……………………….………………………………………… Statement of Activities……………………………………………..……………….….…………….……………………… Balance Sheet - Governmental Funds...……………………………………..…..………………………..……… Notes to Basic Financial Statements……………………………………….………………………………….……..………… Budgetary Information…………………………..……………....…….……………..…………………………..………… Budgetary Comparison Schedule - General Fund………………..……………………...….………………..………… Budgetary Comparison Schedule - Housing Authority Fund………………………………………..….……………...… Schedule of Plan Contributions, Last 10 Years - Safety Plan……………………………………...…………………… 5 of 281 May 7, 2019, Item #1.7 City of Poway Comprehensive Annual Financial Report For the Year Ended June 30, 2018 (Continued)   Table of Contents (Continued) Non-Major Governmental Funds: 106 110 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Non-Major Special Revenue Funds: Fire Protection……………..……………..……...…………………...………….……………………..……… 114 800 MHz Communication System………….…..……………………………...………..…………….………115 Gas Tax…………………………………….……………………………………….....…………………..………116 Drainage…….………………………...……………………...………...……….………..……………............. 117 Miscellaneous Grants……………………….……………………………………...…………..……………… 118 AB 939 Integrated Waste Management…….………………………………..……………….….……….……119 Community Development Block Grant………………………………………….………………...…...………120 Transportation Development Act………………………………………………………………..……….……121 Proposition A………………………………………………………….….…………….……………..…………122 SB 1186 Disabled Access Law…………………………………………………….………………..…..………123 Excess SAFE Reserve……………………………………………………..……………………..……………124 Regional Arterial Traffic Mitigation…………………………………………….……………………..…...……125 Fire Protection Impact Fees……………………………………………………….…………….………...……126 BEGIN Program…………………………………………….………………………….……...………...………127 Housing In-lieu………………………………………………………………………….…………………..……128 Abandoned Vehicle Fees………………………………………………………………………………………129 Habitat In-lieu…………………………………………………………………………………..…...……...……130 Maintenance Districts…………………………………………………………………….…….………………131 Road Repair………………………………………………………………………………………………………132 Non-Major Debt Service Fund: City Debt Service……………………………..…..…………………….….…………………....………………133 Non-Major Permanent Fund: Mary Patricia Ross Trust……………...………….………...…………..………………….…………………..134 Non-Major Capital Project Funds: Park Improvement Capital Projects Fund……………………....…….………….……………...……………135 Street Improvement Capital Projects Fund……………………....…….………….……………...………… 136 Municipal Improvement Capital Projects Fund…………………..….……………..…...……….....…………137 Internal Service Fund 139 140 141 Fiduciary Funds: 143 144 148 Combining Statement of Revenues, Expenditures and Changes in Fund Balance………………….….…............. Statement of Net Position………………………………………………………………………..…………...…………… Statement of Revenues, Expenses and Changes in Net Position…………………………..…………..……………… Statement of Cash Flows………….……………………………………………………………….……..…...…………… Combining Statement of Fiduciary Net Position - Agency Funds………..…………………...…………...…………… Combining Statement of Changes in Assets and Liabilities - Agency Funds………………..…...…………...……… STATISTICAL SECTION (Unaudited) Combining Balance Sheet…….………………………………………………………………………...………….……… Net Position by Component – Current and Prior Nine Years…………………………………………………………………… 6 of 281 May 7, 2019, Item #1.7 City of Poway Comprehensive Annual Financial Report For the Year Ended June 30, 2018 (Continued)   Table of Contents (Continued) 150 152 154 156 158 159 160 161 162 163 164 165 166 168 169 170 171 172 174 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with 176Government Auditing Standards …….………..….…….…….....…………..…..……………...….……………………… Changes in Net Position – Current and Prior Nine Years……………………………………………………………………… Fund Balances, Governmental Funds – Last Ten Fiscal Years………………………………………………………………… Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years……………………………………….………… Assessed Value of Taxable Property – Last Ten Fiscal Years ………………………………………………………………… Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years………………………………………………………… Principal Secured Property Tax Payers – Current and Nine Years Ago……………………………………………………… Assessed Value of Taxable Property Successor Agency and Redevelopment Tax Increment Property Tax – Last Ten Fiscal Years………………………………………………………………………………………… Redevelopment Property Tax Levies and Collections – Fiscal Years 2008-2012……………………………………….. General Property Tax Levies and Collections – Last Ten Fiscal Years………………………………………………………. Ratios of Outstanding Debt by Type – Last Ten Fiscal Years…………………………………………………………………… Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years………………………………………………………… Direct and Overlapping Debt as of June 30, 2017…………………………………………………………………………...…… Legal Debt Margin Information – Last Ten Fiscal Years………………………………………………………………………… Capital Assets Statistics – Current and Prior Nine Years ……………………………………………………………………… Pledged Revenue Coverage – Last Ten Fiscal Years…………………………………………………………………………… Demographic and Economic Statistics – Last Ten Calendar Years ................................................................................ Principal Employers – Current Year and Nine Years Prior ............................................................................................... Full-Time-Equivalent City Employees by Function – Last Ten Fiscal Years ..................................................................... Operating Indicators – Current and Prior Nine Years …………………………………………………………………...……… 7 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 8 of 281 May 7, 2019, Item #1.7     Introductory Section 9 of 281 May 7, 2019, Item #1.7 This page intentionally left blank. 10 of 281 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 STE\'E \'AUS, Mayor DAVE GROSCH, Deputy Mayor CA YLlN FRANK, Councilmember BARRY LEONARD, Councilmember JOHN MULLfN, Councilmcmbcr January 28, 2019 CITY OF POWAY Honorable Mayor, Councilmembers and Residents of Poway, It is with great pleasure that we present the City of Poway's Fiscal Year (FY) 2017-18 Comprehensive Annual Financial Report (CAFR). This report has been prepared in conformity with generally accepted accounting principles (GAAP) and has been audited in accordance with generally accepted auditing standards by Rogers, Anderson, Malady & Scott, LLP, a firm of licensed certified public accountants. This CAFR includes the financial activity for all funds of the city. Included within the city's financial statements is the financial information of the Poway Housing Authority, Poway Public Financing Authority, and the Successor Agency to the Poway Redevelopment Agency (formerly the Poway Redevelopment Agency). Although the entities are legally separate from the city, their financial operations are closely related. Their activities are included with the activities of the city because the City Council serves as the board of directors and can impose its will on these entities. There is, therefore, a financial benefit/burden relationship. The CAFR consists of management's representation concerning the finances of the city. Consequently, responsibility for the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the city. We assert that, to the best of our knowledge and belief, this report is complete and reliable in all material respects. All disclosures necessary to enable an understanding of the city's financial activities have been included. Management Discussion and Analysis (MD&A) immediately follows the independent auditor's report and provides a narrative introduction, overview and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. PROFILE OF THE GOVERNMENT Poway incorporated on December 1, 1980, under the general laws of the State of California. The city operates under a Council-Manager form of government. The City Council serves as the legislative and policy-making body of the city and enacts the laws that protect the general welfare of the community. The City Manager is appointed by the City Council and serves as the Chief Executive Officer. The City Manager is responsible for the administration of all city affairs and the implementation of policies established by the Council. The City Attorney is also appointed by, and serves, the City Council. The City Manager appoints all other City of Poway staff. Poway provides water, sewer, street maintenance, fire, paramedic, parks and recreation, planning and building services. The city contracts with the County of San Diego Sheriff's Department for law enforcement and with the City of San Diego for wastewater treatment services. ECONOMIC CONDITION AND OUTLOOK Poway is located along the coastal foothills of San Diego County, 20 miles north of downtown San Diego and three miles east of Interstate 15. The city spans 39 square miles and has a population of 50,207. Poway consists of mostly single-family homes, employers with well-paying jobs and has the lowest crime rate of any city in the county. Poway's median home value is $737,000. The Poway Unified School District continues to be recognized as a top performer in the state and nation. 11 of 281 City Hall Located at 13325 Civic Center Drive Mailing Address: P.O. Box 789, Poway, California 92074-0789 www.poway.org May 7, 2019, Item #1.7 Annual Financial Report January 28, 2019 Some of the city's top employers include General Atomics, Geico, Poway Unified School District, Delta Design, Pomerado Hospital and Sysco Food Services. Poway has a labor force (the number of people who work or are available for work) of 26,400. The city's unemployment rate is 2.6 percent compared to the state's unemployment rate of 4.2 percent. Poway continues to be recognized as an exceptional place to live. Poway was named the 37th Safest City in California by Safewise.com and retains its distinction as the safest city in the county. Poway continues to be the safest incorporated city in San Diego County with an FBI crime index of 12.62 crimes per 1,000 residents. This low crime rate can be attributed, in part, to the Sheriff's Department's engagement with the community and its proactive law enforcement techniques. Poway is dubbed the "City in the Country." Nearly 7,000 acres, representing over 30 percent of Poway's land use, has been set aside as preserved natural open space. Residents enjoy a high quality of life supported by the city's 232 acres of parkland and 56 miles of riding, hiking, and biking trails. Poway has long relied on conservative fiscal assumptions to plan ahead with multi-year fiscal forecasts and capital plans. The City Council continued to support a conservative approach in adopting the budget for FY 2017-18. On a budgetary accounting basis, the City of Poway closed the fiscal year with a $3.48 million operating budget surplus which was primarily the result of higher than expected property taxes including Redevelopment Property Tax Trust Fund distributions. The city realized $2.25 million in one- time General Fund revenue and other activity that includes the sale of the Big Stone Lodge property to the Poway Housing Authority, the City of Poway's share of proceeds from the prepayment of a note receivable by the Poinsettia Mobile Home Park to the Poway Successor Agency, and the city's proportional share of the proceeds from the sale of the remaining Poway Successor Agency properties. The sale of the Successor Agency parcels was completed before the transition from the city's local oversight board to a county-wide oversight board. In accordance with the Council adopted General Fund Reserve Policy, the Council added $669,430 to the city's reserves to maintain reserves at the adopted policy level of 45% of operating expenditures in the amount of $20,930,684. The City of Poway, like other municipalities in California, continues to see substantial increases to employer contribution rates to the California Public Employees' Retirement System (CalPERS). CalPERS has revised its actuarial methodology and, coupled with its lower than projected earnings in previous years, this has resulted in a significant escalation in anticipated retirement costs for all employee groups over the next several years. The most recently completed actuarial analysis indicates the city has approximately $47 million in unfunded liability. Long-term revenue growth is not projected to keep pace with rising pension costs. Historically, the City Council has used year-end savings and one-time monies to reduce unfunded pension plan liabilities and for capital reinvestment. Concerns about the operating budget's ability to bear future increases prompted the city to hire a specialized actuary to evaluate the city's funded status and future obligations. This analysis, expected to be complete in the first quarter of FY 2018-2019, will inform staff's recommendation to the City Council regarding options to mitigate some of the impact of the projected increases. It will be important for the city to continue to work with its employees to identify measures that will ensure increases in ongoing compensation costs do not outpace revenue growth. As part of the city's ongoing commitment to maintain a balanced budget and adequate reserves, there is a continued focus on cost recovery for recreation programs. The city reviewed and updated fees and policies for programs, facility rentals, and the Farmers Market to increase cost recovery and implement best practices. The city also increased water and sewer rates in December 2017 to recover pass- through costs and fund the continued proper maintenance of the utility infrastructure including necessary capital projects. Several commercial construction projects and tenant improvements were completed in the South Poway Business Park in FY 2017-18, providing significant investment in the community, increased property tax revenue and more jobs. Construction work began on ten industrial projects totaling 440,000 square feet. General Atomics, the largest employer in the business park, also expanded their occupancy to six additional properties. ii 12 of 281 May 7, 2019, Item #1.7 Annual Financial Report January 28, 2019 Utilizing Public Educational Government (PEG) franchise fees, the city upgraded the audio-visual equipment in the City Council Chambers and improved the quality of broadcast coverage of regular city council meetings. This project improves residents' access to city government. The City of Poway takes pride in its robust complement of volunteers. Volunteer rangers, ushers, docents, tour guides, teens, and others contributed over 14,000 hours of service this past year. In addition, the Sheriff's Senior Volunteer Patrol and its over 50 community members volunteered more than 16,000 hours to supplement law enforcement at events and incidents throughout the city. The City Council continues to support the preservation of open space by using its Habitat In-Lieu Fee Fund to purchase additional land. An important part of Poway's rural image is defined by its natural environmental features, including the mountains that surround it, the creeks that cross the valley floor, and its open space. During the fiscal year, the city opened negotiations to purchase three properties totaling approximately 80 acres in targeted open space areas. The City of Poway is also the co-applicant with the Trust for Public Lands on two grants to acquire another 160 acres of land in a prominent, key open space area. The city has committed up to $150,000 from the Habitat In-Lieu Fee Fund towards the acquisition. In spring of 2018, preliminary approval of the two grants was received and final award is anticipated in mid-2019. As another example of Poway's conservative fiscal management, the California Joint Powers Insurance Authority (JPIA) recognized Poway for its risk management achievements. Poway was recognized for "Best Overall Performance for Agencies with Public Safety Exposure for the Workers' Compensation Program" in 2018. MAJOR INITIATIVES In December 2017, the City Council approved the Poway Road Specific Plan (PRSP). The PRSP includes land use and development standards for development along Poway Road, the city's primary commercial corridor. Along with the Specific Plan, the City Council adopted a General Plan Amendment, rezones of nearly all properties along the corridor, and a Program Environmental Impact Report. The new zoning regulations allow a variety of new uses and residential development at higher densities than previously allowed. An emphasis is placed on development of mixed use projects and the creation of a town center. One mixed use project was already approved by the City Council in March 2018 which includes 53 dwelling units, 40,213 square feet of commercial space and two levels of underground parking. The Poway Housing Authority continued work with Villa de Vida and Mercy Housing California through the competitive Tax Credit Allocation process to develop an affordable 54-unit multi-family rental housing development for adults with disabilities. The Housing Authority also purchased the Big Stone Lodge property from the City of Poway which includes two parcels of approximately 1. 7 acres in January 2018 for affordable housing development. Continued investment in the city's infrastructure remains a top priority. The city completed 24 capital improvement projects (CIPs) this fiscal year including the Lake Poway Boat Dock Replacement project, Photo Voltaic System at the Poway Center for the Performing Arts, and rehabilitation of four water reservoirs. Another eight CIP projects are under construction, including a nearly $4 million Swim Center Remodel and the Espola Road Safety Improvements project. Five other projects are in the pre- construction phase with another 21 projects in various stages of design. The city continues ongoing efforts to keep public streets safe and accessible, utilizing a significant contribution from the General Fund as well as funding available as a result of Senate Bill (SB) 1, the Road Repair and Accountability Act, for several street maintenance and repair projects. The Espola Road Safety Improvements project continued this year, as the city obtained all necessary right-of-way easements followed by the commencement of construction. This project includes coordinating with multiple utilities to design and install a pedestrian pathway and underground utilities along a section of Espola Road. All necessary agreements with the utility companies were executed for the utility undergrounding. iii 13 of 281 May 7, 2019, Item #1.7 Annual Financial Report January 28, 2019 Design concepts for the new Mickey Cafagna Community Center were presented to the City Council in early 2018. The new Center will replace two aging buildings and create one multi-use, multi-generational facility at the same location (Community Park). A contract was awarded for the preparation of construction documents, and this design work should be completed in early 2019. The City intends to pay cash to build the Center. The City of Poway is unique in that it provides drinking water to more than 13,500 water customers. A large piece of the City's overall capital improvement program is its 10-year $18 million water infrastructure rehabilitation plan. The city begins the fourth year of the plan with three water projects under construction, and another nine in various stages of design. These twelve projects include Poway Dam maintenance, five reservoir rehabilitation projects, and extensive upgrades at the city's Water Treatment Plant with budgets totaling over $7 million. The Public Works Department initiated two Proposition 218 ballots in spring 2018 that would have adjusted assessments in two landscape maintenance districts. The existing assessments are insufficient to maintain the more than 4,000 trees of landscape within the districts. Both ballot measures failed to pass. Staff is working with a resident advisory group to evaluate challenges and opportunities within each district and return to the City Council in Spring 2019 with potential options for consideration and implementation. Emergency preparedness in the event of a disaster remains a critical on-going initiative for the City of Poway. Community volunteer recruitment and engagement is a high priority for the Safety Services Department. The Department held a Community Emergency Response Team (CERT) academy resulting in the graduation of 23 community members. To date, over 89 residents have been trained in care and sheltering. An important function of emergency preparedness is coordination of disaster funding and grant submittals. During the year, the City received over $42,000 in grant funding and $319,000 in FEMA reimbursement was received. The Fire Prevention Division of Safety Services invested in technology improvements for performing Fire and Life Safety Business inspections which eliminates paper documentation by utilizing mobile devices and a cloud-based platform. This improves cost effectiveness to administer the overall program and efficiency for local businesses. The Finance Department initiated the first phase of implementation of the new Enterprise Resource Planning (ERP) system by migrating data and entering the FY 2018-19 budget into the new system. The ERP improves data access and management, utilizing electronic approvals that eliminate paper driven processes, and enhances information coordination across departments. The next phase of the ERP implementation in FY 2018-19 includes deployment of the payroll and human resource modules and budget development. In fall 2017, the City Council voted to move from an at-large election system to a district-based election system. The city's new by-district election system divides the city into four geographic areas. Voters in each district will select one council member residing in that district, and the mayor will continue to be elected at-large by all voters of the city. The by-district election system will be phased in with the first two district seats being elected in November 2018 and the other two district seats in November 2020. INTERNAL FRAMEWORK Management has established a comprehensive internal control framework that is designed to protect the city's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the costs of a control should not exceed the benefits likely to be achieved and the valuation of costs and benefits requires estimates and judgements by management. iv 14 of 281 May 7, 2019, Item #1.7 Annual Financial Report January 28, 2019 BUDGETARY CONTROLS In addition to internal controls, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the C ity Council. Activities of the General Fund , Special Revenue Funds , and all other governmental funds, are included in the annual appropriated budget. The budget is arranged by department, division and fund and is presented by the City Manager to the five-member Council-appointed Budget Review Committee. The Budget Review Committee provides the City Council with a written review of the proposed budget. The review is presented, along w ith th e City Manager's proposed budget, to the City Council. The Council then adopts the budget prior to the beginning of the fiscal year, and it serves as the foundation for the city's financial planning and control. The budget is reviewed at mid-year, and necessary adjustments are made to ensure that expenditures are not outpacing anticipated revenues. RELEVANT FINANCIAL POLICIES The significant accounting policies of the City are described in the Notes to Financial Statements. These accounting policies have been approved by the city's independent certified public accountant and are in conformance with the recommendations of the American Institute of Certified Public Accountants and the Governmental Accounting Standards Board. ANNUAL AUDIT The California Government Code requires general law cities, such as Poway, to be audited annually by independent certified public accountants selected by the City Council. The goal of an independent audit is to provide reasonable assurance that the financial statements of the city are free of material misstatements. This requirement has been met and the auditors' independent report is included in this report. AWARDS The Government Finance Officers Association of the United States and Canada (GFOA) has awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Poway for its FY 2016- 17 CAFR. To be awarded the certificate, the report must be easy to read and organized in an efficient manner with content that conforms to program standards. Such a report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current report conforms to the program requirements, and we are submitting it to the GFOA to determine its eligibility for the certificate. ACKNOWLEDGEMENTS I would like to extend my gratitude to the Finance Department for their professionalism and dedication which has made the publication of th is report possible. I would also like thank the Mayor and City Council for their leadership and support in conducting the financial operations of the City in a responsible manner consistent with the City's mission to protect and enhance the quality of life for present and future generations alike. Finally, I would like to acknowledge the hard work and dedication of all City employee s as evidenced by the long list of accomplishments and initiatives included in this transmittal letter. Respectfully Submitted, Tina M. White City Manager 15 of 281 ~b=-ch~~~ Donna Go ldsmith Finance Director V   -vi- City of Poway Principal Officers City Council Mayor Steve Vaus Deputy Mayor Barry Leonard Council: Caylin Frank Dave Grosch John Mullin Appointed Officials City Manager Tina White City Attorney Alan Fenstermacher Administrative Personnel Assistant City Manager Wendy Kaserman Director of Finance Donna Goldsmith Director of Human Resources Jodene Dunphy Director of Development Services Robert Manis Director of Public Works Michael Obermiller Director Community Services Robin Bettin Director of Safety Services Mark Sanchez City Clerk Nancy Neufeld 16 of 281 May 7, 2019, Item #1.7   ‐vii- 17 of 281 May 7, 2019, Item #1.7   -viii- 18 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 19 of 281 May 7, 2019, Item #1.7     Financial Section 20 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 21 of 281 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 735 E. Carnegie Dr. Suite 100 San Bernardino, C A 9240B 909 889 087 I T 909 889 53 61 F r amscpa.ne t PARTNERS Brenda L. Odle, CPA. MST Terry P. Shea , CPA Kirk A. Franl<s, C PA Scott W. Manno , CPA, CGMA Leena Shanbhag , CPA, MST, CGMA Bradferd A . Welebir, CPA, MBA, CGMA Jay H . Z ercher, CPA (Panner Emeritus) Phillip H . Waller, CPA (Partner Emeritus) MANAGERS/ STAFF jenny Liu, CPA, MST Seong-Hyea Lee, CPA, MBA Charles De Simoni, CPA Gardenya Duran, CPA Briann a Schultz, CPA Sa muel Singery, CPA Jing Wu, CPA Evelyn M orentin-Barcena, CPA Ji n Gu, CPA, MT Veronic a Hernandez, CPA MEMBERS Ameri can Inst itute of Certified Public Account ants PCPS The AICf'A Alliance (or CPA Firms Governmental Audi( Quoli(y Center Employee Benefr< Pion Audir Q11ality Cente1 C ali fornia Society o r Certified Public Accountants 22 of 281 ROGERS, ANDERSON , MALODY & SCOTT, LLP CERTIFIED PUBLIC A CCOUNTANTS, Slf\lCE 194 8 Independent Auditor's Report To the Honorable Mayor and Members of the City Council City of Poway, California Report on the financial statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Poway, California (the "City"), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America ; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from materia l 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 financ ial 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 aud it involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements . The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the aud itor cons iders internal control relevant to the entity 's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances , but not fo r the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion . An audit also includes evaluating the appropriateness of accoun t ing policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the ove rall presentation of the financial statements. -1 - STABILITY. ACCURACY. TRUST.   -2- 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, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, Schedule of Proportionate Share of the City's Net Pension Liability and Related Ratios as of the Measurement Date, Schedules of Changes in Net Pension Liability and Related Ratios and Schedules of Plan Contributions, as listed in the table of contents, 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual non-major fund financial statements and budgetary comparison information are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual non-major fund financial statements and budgetary comparison information are fairly stated in all material respects in relation to the financial statements as a whole. 23 of 281 May 7, 2019, Item #1.7   -3- The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. 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 City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and 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 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 City’s internal control over financial reporting and compliance.  San Bernardino, California January 28, 2019 24 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 25 of 281 May 7, 2019, Item #1.7   -4-   MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Poway (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2018. It should be read in conjunction with the accompanying transmittal letter beginning on page i and the accompanying basic financial statements. All amounts, unless otherwise indicated, are expressed in thousands of dollars. FINANCIAL HIGHLIGHTS  The City’s total assets increased by 14.6% to $233.6 million, primarily as a result of the transfer of property from the Successor Agency. Without the transfer total assets increased by 1.72%, or $3.5 million, which was due to normal operations.  During the year, the City’s revenues including program revenues, taxes, and other governmental revenues were more than governmental and business activity expenses, net of special items, by $3.5 million.  Total revenues from all sources were $99.4 million.  Total cost of all City programs was $95.9 million.  Governmental net position was $170.4 million.  The General Fund reported a Net change in fund balance of $72,877.  Actual revenues received in the General Fund were more than the final budget by $4.3 million while actual expenditures were $26.6 million less than final budget before other financing sources and uses. The expenditure variance is primarily attributable to the Capital Outlay category which accounted for $23.5 million of the variance.  At the end of the fiscal year, unassigned fund balance for the General Fund was $14.1 million or 27.3% of total General Fund expenditures (excluding other financing uses).  The impact of Governmental Accounting Standards Board Statement No. 68 Accounting and Financial Reporting for Pensions (GASB 68) resulted in an increase of pension expense in the current year. USING THIS ANNUAL REPORT This annual report consists of a series of financial statements. The three components of the financial statements are: (1) Government-wide financial statements, which include the Statement of Net Position and the Statement of Activities. These statements provide information about the activities of the City as a whole. (2) Fund financial statements describe how City services are financed in the short term as well as what resources are available for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds. (3) Notes to the financial statements. Reporting the City as a Whole The Statement of Net Position and the Statement of Activities (Government-wide) A frequently asked question regarding the City’s financial health is whether the year’s activities contributed positively to the overall financial well-being. The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are accounted for regardless of when cash is received or paid. These two statements report the City’s net position and changes thereto. Net position, the difference between assets and liabilities, are one way to measure the City’s financial health, or financial position. Over time, increases or decreases in net position is an indicator of whether the financial health is improving or deteriorating. 26 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -5- However, it is important to consider other nonfinancial factors such as changes in the City’s property tax base, or condition of the City’s roads, to accurately assess the overall health of the City. The Statement of Net Position and the Statement of Activities present information about the following: `  Governmental activities - All of the City’s basic services are considered to be governmental activities, including general government, public safety, public works, and community services. Property taxes, sales taxes, motor vehicle license fees and franchise fees finance most of these activities.  Proprietary activities/Business-type activities - The City charges a fee to customers to cover all or most of the cost of the services provided. The City’s Water and Sewer systems are reported in this category.  Component units - The City’s governmental activities include the blending of two separate legal entities: the Poway Housing Authority and the Poway Public Financing Authority. Although legally separate, these “component units” are important because the City is financially accountable for them. Reporting the City’s Most Significant Funds Fund Financial Statements The fund financial statements provide detailed information about the most significant funds - not the City as a whole. Some funds are required to be established by State law and by bond covenants. However, management establishes many other funds that aid in the administration of resources for particular purposes or to meet legal responsibilities associated with the usage of certain taxes, grants, and other money. The City’s two kinds of funds, governmental and proprietary, use different accounting approaches as explained below.  Governmental funds - Most of the City’s basic services are reported in governmental funds. Governmental funds focus on how resources flow in and out with the balances remaining at year-end that are available for spending. These funds are reported using an accounting method called modified accrual, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short- term view of the City’s general government operations and the basic services it provides. Governmental fund information shows whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds through the reconciliation in the Notes to Basic Financial Statements, Note 1.  Proprietary funds - When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. These two statements report the City’s net position and changes thereto. Net position, the difference between assets and liabilities, is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in net position are an indicator of whether the financial health is improving or deteriorating. Again, it is important to consider other nonfinancial factors such as changes in the City’s property tax base or condition of the City’s roads to accurately assess the overall health of the City. 27 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -6- The City as Trustee Reporting the City’s Fiduciary Responsibilities The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property owners, and others. These fiduciary activities are reported in separate Statements of Fiduciary Net Position and Changes in Fiduciary Net Position. The City is responsible for ensuring that the assets are used for their intended purposes. Therefore, fiduciary activities are excluded from the City’s other financial statements because the assets cannot be used to finance operations. The Successor Agency to the Poway Redevelopment Agency is a Private Purpose Trust Fund and is included in the Fiduciary Fund Financial Statements. THE CITY AS A WHOLE Our analysis focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental and business activities, as well as a brief discussion of the private purpose trust. Table 1 City of Poway Net Position (in Thousands) Assets: Current and other assets $ 102,011 $ 100,882 $38,908 $33,426 $ 140,919 $ 134,308 $8,091 $ 14,370 Capital assets 121,518 95,823 32,118 32,941 153,636 128,764 2,865 40,862 Total assets 223,529 196,705 71,026 66,367 294,555 263,072 10,956 55,232 Deferred Outflows 10,532 9,012 1,750 1,336 12,282 10,348 - - Liabilities: Long-ter m debt outstanding 14,782 15,541 292 250 15,074 15,791 157,843 167,217 Other liabilities 5,456 5,452 1,984 1,752 7,440 7,204 3,618 3,698 Net pension liability 42,622 39,129 7,139 5,820 49,761 44,949 - - Total liabilities 62,860 60,122 9,415 7,822 72,275 67,944 161,461 170,915 Deferred Inflows 837 1,403 135 204 972 1,607 1,420 1,736 Net position: Net Investment in capital assets 108,495 82,021 32,118 32,941 140,613 114,962 Held in trust (151,925) (117,419) Restricted 20,626 20,454 - - 20,626 20,454 Unrestricted 41,243 41,717 31,108 26,736 72,351 68,453 Total net position $170,364 $ 144,192 $63,226 $59,677 $ 233,590 $ 203,869 $ (151,925) $ (117,419) 2018 2017 2018 2017 2018 Private Purpose Trust 2017 20172018 Governmental Business TotalActivities Activities The City’s combined net position for the fiscal year ended June 30, 2018, were $233.6 million. The City has chosen to account for its water and sewer operations as enterprise funds, which is shown as Business Activities on Table 1. Post dissolution, the former Poway Redevelopment Agency is now accounted for as a Private Purpose Trust Fund. The City’s net position for governmental activities increased by 18.2% from $144.2 million to $170.4 million. The following is an explanation of the governmental activity changes between fiscal years as shown in Table 1: Current and other assets increased $1.1 million or 1.1% principally due to normal operations as described below. Cash decreased, and Land held for resale increased as the result of the purchase of properties from the Successor Agency. 28 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -7-  Capital assets increased $25.7 million (net of depreciation and additions) as detailed in Table 3. This increase was caused by additions of capital assets from the Successor Agency ($26.2) million, depreciation ($5.7) million and additions ($5.2) million that included swim center renovations, a new boat dock, and street improvements.   Governmental long-term debt decreased $.8 million. The decrease was attributable to scheduled principal payments.  Governmental other liabilities remained virtually the same as in the prior year.  Pension related items including Deferred Outflows, Net Pension Liability, and Deferred Inflows, had a net increase of 4.0%. The change to the net balance was primarily due to the reduction of the discount rate by the California Public Employees’ Retirement System (CalPERS).  Invested in capital assets net of debt increased by $26.9 million primarily due to acquisition of capital assets from the Successor Agency.  Restricted net position increased by $0.2 million, or 0.8%. The increase is primarily attributable to an increase in the Streets category related to fees collected for a large industrial project and decrease in Housing related to the purchase of property. The other changes in this category were reflective of normal activity within the restricted funds.  Unrestricted net position, the part of net position that can be used to finance day-to-day operations without constraints established by debt covenants or other legal requirements, decreased by $0.5 million, or 1.1%, again primarily due to normal operations. Significant items will be discussed in the Governmental Activities section. Governmental Activities The cost of all Governmental activities this year was $61.6 million as shown on Table 2 and 2.1. Of this cost, $9.8 million was paid for by those who directly benefited from the programs, $2.5 million was subsidized by grants received from other governmental organizations for both capital and operating activities, and $48.8 million was financed through general City revenues. Overall governmental program revenues, including intergovernmental aid and fees for services were $12.4 million. Items of significance within Table 2 are described after the table 29 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -8- Table 2 City of Poway Changes in Net Position (in Thousands) Revenues: Program Revenues: Charges for services $ 9,836 $ 9,632 $ 34,070 $29,847 $ 43,906 $ 39,479 $ - $ - Operating grants and contributions 2,323 1,134 - - 2,323 1,134 - - Capital grants - - and contributions 199 271 4 - 203 271 - - General Revenues:- - Property taxes 24,154 22,166 - - 24,154 22,166 47,750 46,954 Sales tax 13,981 13,775 - - 13,981 13,775 - - Other taxes 5,896 5,323 - - 5,896 5,323 - - Investment & misc. 4,753 2,971 4,203 3,484 8,956 6,455 673 3,122 Total revenues 61,142 55,272 38,277 33,331 99,419 88,603 48,423 50,076 Expenses: General government 8,048 7,898 - - 8,048 7,898 46,007 39,808 Public safety 25,140 22,939 - - 25,140 22,939 - - Public works 15,818 13,424 - - 15,818 13,424 - - Development services 4,793 4,122 - - 4,793 4,122 - - Community services 7,373 7,696 - - 7,373 7,696 - - Interest & charges 430 444 - - 430 444 4,968 4,963 Water - - 25,503 21,005 25,503 21,005 - - Sewer - - 8,798 8,565 8,798 8,565 - - Total expenses 61,602 56,523 34,301 29,570 95,903 86,093 50,975 44,771 Change in net position before transfers (460) (1,251) 3,976 3,761 3,516 2,510 (2,552) 5,305 Loss on sale of property - - - - - - (4,504) (2,109) Special item 26,204 - - - 26,204 - (26,204) - Transfers 427 439 (427) (439) - - - - Change in net positon after transfers 26,171 (812) 3,549 3,322 29,720 2,510 (33,260) 3,196 Net position - 7/1 144,192 145,004 59,677 56,355 203,869 201,359 (118,665) (121,861) Net position - 6/30 $ 170,363 $ 144,192 $ 63,226 $59,677 $ 233,589 $ 203,869 $ (151,925) $ (118,665) Governmental Business TotalActivities Activities Private Purpose Trust 2018 2017 2018 2017 2018 2017 2018 2017 Revenues:  Property taxes increased by 9.0% which includes revenues from the Redevelopment Property Tax Trust Fund (RPTTF). When adjustments are made for the RPTTF revenue in both fiscal years, the remaining property taxes increased by 4.2%. Property values have continued to increase, which has resulted in the reassessment of many properties that received temporary assessment reductions during the Great Recession.  Sales tax increased by 1.5%, with the largest increase, of the seven major sales tax categories, being in Building & Construction. Sales tax revenues may have been adversely affected because of timing issues with the state’s new sales tax reporting system.  The remaining taxes increased by 10.7%. This includes taxes that are used for street purposes, franchise fees and transient occupancy tax. The gas and electric franchise fee increased by $149 and the transient occupancy tax increased by $45. The remaining increase was related to taxes collected for streets, including the new Road Maintenance and Rehabilitation Account funds ($294).  Investment earnings increased by 26.0% due to rising interest. As an example, the yield on two-year treasury notes increased from 1.38% on June 30, 2017 to 2.52% on June 29, 2018. The increase was partially offset by a loss in market value which was also caused by the rising interest rates.  The Miscellaneous revenue category increased by $1.8 million, or 101.1%. The current year is primarily higher due to one-time revenue related to the sale of land that was owned by Successor Agency and sold to the City and outside parties. The proceeds from these sales were distributed to all taxing agencies, and the City’s share, $1.2 million is included in this category. 30 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -9-  Charges for services increased by 2.1%, caused primarily by increases in Public Safety for ambulance fees, and in Development Services for inspection fees. Those increases were partially offset by a decrease in Community Services program fees due to the closure of the City pool for repair and improvements.  Operating Grants and contributions increased by 104.9%. The increase was caused by a significant street improvement revenue. Expenses:  General Government Expenses increased 1.9%. There was a decrease related to the purchase of non-capitalized equipment, which was offset by increased pension costs.  The Public Safety line increased by 9.6%. The law enforcement contract with the County of San Diego accounted for 4.4% of the increase, while fire suppression accounted for 5.1% of the increase. Fire suppression’s increase included higher amounts for salaries, benefits and overtime. These increases were driven by the new labor agreement and decreased vacancies, higher pension costs, as well greater mutual aid participation. As a result of the mutual aid participation, the City also had an increase in mutual aid reimbursements.  Public Works had an 17.8% increase in expenses. Increased pension costs contributed to the increase, as well as increased costs in park maintenance and street maintenance. Also contributing to the increase was an analysis by the City which resulted in the General Fund being charged a higher amount for city-wide maintenance operations. Also, the Park Maintenance division was previously performing water conservation duties, so a portion of its costs were allocated to the Water Fund. Those duties were no longer being actively performed so that allocation was discontinued also causing increased costs in the General Fund.  The Development Services department increased by 16.3%. The increase can be primarily attributed to building inspection and capital improvement oversight of projects funded by the General Fund.  Community Services had a decrease of 4.2%. The decrease is primarily related to the closure of the City pool for significant rehab and improvements which led to reduced operating expenses during the closure.  Interest and fiscal charges decreased by 3.2%. The decrease is related to lower interest expense. There were no significant changes in this category. 31 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -10- General government $ 8,048 $ 7,898 $ 960 $ 552 $ (7,088) $ (7,346) Public safety 25,140 22,939 2,723 2,491 (22,417) (20,448) Public works 15,818 13,424 2,855 2,820 (12,963) (10,604) Development services 4,793 4,122 2,875 1,815 (1,918) (2,307) Community services 7,373 7,696 2,944 3,358 (4,429) (4,338) Interest and fiscal chgs 430 444 - - (430) (444) Totals $ 61,602 $ 56,523 $ 12,357 $11,036 $ (49,245) $ (45,487) 2018 of Services 2018 2018 2017 Table 2.1 Net Cost of Governmental Activities (in Thousands ) 20172017 Program Revenues Net Cost of Services Total Cost Fiscal Year 2018 Governmental Activities (Graphic representation of Table 2 in percentages)   Net Cost of Governmental Activities The City’s programs include: General Government, Public Safety, Public Works, Development Services and Community Services. Each program’s net cost (total cost less revenues generated by the activities) is presented on Table 2.1. The net cost shows the extent to which the City’s general taxes support each of the City’s programs.     Sources of Revenue Program Expenses  32 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -11-   Fiscal Year 2018                                                                               Total Cost of Services, Program Revenues & Net Cost –Governmental Activities (in thousands) Total resources available during the year to finance governmental operations were $232.0 million consisting of Net Position at July 1, 2017 of $144.2 million, Program Revenues of $12.4 million, General Revenues of $48.8 million, Transfers of $0.4 million, and the transfer from the Successor Agency of $26.2. Total Governmental Activities during the year were $61.6 million; thus, Net Position increased to $170.4 million. Business-Type Activities Net Position of the Proprietary Funds (Business-Type activities) at June 30, 2018, as reflected in Table 1 were $63.2 million. As shown in Table 2.2, program revenues were $34.1 million, while the cost of providing all Proprietary (Business-Type) Activities this year was $34.3 million, resulting in a decrease of $0.2 million. The net increase of $3.8 million from other revenues, non-operating activity and transfers resulted in a Net Position increase of $3.5 million, or 6.9%. The water revenue increase can be attributed to volume increases related to eased usage restrictions and increased rates. While water purchases did increase, additionally the overall increase in the cost of services was related to the adjustment for pensions. The other revenue increased because the temporary drought recovery surcharge that was implemented while revenues were lower due to decreased consumption, was in full effect for the entire fiscal year. However, the drought recovery surcharge is scheduled to end in December 2018. There was no significant change in the Sewer fund’s activity. Operating revenues slightly increased due to rate increases, and Other revenue was down because while the fund once again received refunds for prior year over-allocations of sewage transportation costs, they were less than received in the previous year. The overall result was an increase in the fund’s net position.     Water $ 25,503 $ 21,005 $ 25,586 $ 21,450 $ 83 $ 445 Sewer 8,798 8,565 8,488 8,397 (310) (168) Totals $ 34,301 $ 29,570 $ 34,074 $ 29,847 $ (227) $ 277 Table 2.2 Net Cost of Business Activities (in Thousands) Total Cost Program Net Cost of Services Revenue of Services 2018 2017 2018 2017 2018 2017 33 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -12-   Fiscal Year 2018 Total Cost of Services, Program Revenues & Net Cost – Business Activities (in thousands) FUND HIGHLIGHTS General Fund: Actual revenues compared favorably to the final budget, resulting in a $4.3 million positive variance (excluding other financing sources). The major variances were in Taxes, Charges for Services, Developer Fees and Other Revenue. Actual Taxes revenue was again higher than budgeted due to distributions from the Redevelopment Property Tax Trust Fund, which accounted for $1.6 million of the variance. Other property related taxes ($305,000), and sales tax ($335,000) also contributed to the positive variance. The Charges for services variance was caused by higher than expected cell site lease revenue due to fewer sites being decommissioned than expected, and higher lease revenue due to the acquisition of properties from the Successor Agency that had existing leases. The increase in Developer Fees was caused by both Development Services and Safety Services plan check and inspection fees, as well as general planning fees and staff time reimbursement charges. The variance in the Other revenues category was related to the City receiving its proportionate share from the Successor Agency to the City of Poway Redevelopment Agency selling property in accordance with its Long-Range Property Management Plan. The final appropriations for the City’s General Fund expenditures at year-end were $26.6 million more than actual expenditures (excluding other financing uses). The largest component of the budget to actual variance, $23.5 million, was in the Capital Outlay category. The variance in the Capital Outlay category is attributable to delays in previously approved projects such as a new community center, the undergrounding of overhead lines, and swim center improvements, as well as the recording as the purchase of land held for resale of $5.4 million which was budgeted as a capital outlay, but recorded as an asset in the General Fund. The variance in the General Government category was primarily caused by delays in equipment purchases, as well as partial year vacancies in the Finance and Human Resources departments. The savings in Public Works was from Park and Facilities Maintenance, with the savings being throughout the divisions. The savings in Development Services is from staffing turnover, spending less on nuisance abatement than anticipated, spending less on external plan check costs, and savings for storm water compliance, though a significant encumbrance was outstanding at year-end. The savings in the remaining expenditure categories is reflective of the City’s ongoing efforts to manage costs. There were no unusual items that contributed to the savings in any of these categories. During the fiscal year, the City produced a midyear budget update, which enhanced focus on the City’s financial position and the current factors affecting that position. 34 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -13-   Housing Authority Special Revenue Fund: The City of Poway created its Housing Authority during fiscal year 2010-11 and transferred all of the Poway Redevelopment Agency’s housing assets to the Housing Authority. As a result of ABX1 26, the Housing Authority was able to retain its capital assets and any related income, but was required to transfer its liquid assets as of February 1, 2012 to the Successor Agency. With the passage of subsequent legislation, AB 1484, twenty-percent of the City’s advances to the former Poway Redevelopment Agency were transferred to the Housing Authority. The Housing Authority’s revenues and other financing sources exceeded its expenditures by $105,247 for operations. Revenues were primarily made up of lease payments from properties owned by the Housing Authority and residual payments from its non-profit partners that own and operate affordable housing projects. Expenditures continue to be minimal as the Housing Authority continues to explore how to best use these funds to improve the quantity and quality of affordable housing in the City. The Housing Authority did purchase land for a future affordable housing site, and received assistance from the Housing In-lieu fund to make the purchase. Non-major Governmental Funds: Three of the Non-major Governmental Funds had activity that should be noted. The Proposition A Fund had a use of fund balance because projects that were planned for the prior fiscal year, but delayed, were completed in the current fiscal year. The Housing In-lieu Fund provided funding to the Housing Authority for the purchase of land for a future affordable housing site. The Street Improvement Fund had unusually large fees related to the development of two large industrial buildings. FIDUCIARY FUNDS Successor Agency to the City of Poway Redevelopment Agency: The provisions of ABX1 26 include the creation of the Successor Agency to the City of Poway Redevelopment Agency effective February 1, 2012. All balances previously associated with the Poway Redevelopment Agency were transferred to the Successor Agency. A seven-member Oversight Board was created to oversee the Successor Agency. The Successor Agency is accounted for as a Private Purpose Trust Fund and therefore both capital assets and long-term liabilities are included in the fund. The Successor Agency must prepare Recognized Obligation Payment Schedules (ROPS) for review and approval by its Oversight Board, as well as the State Controller’s Office, the State Department of Finance, and the County of San Diego. Through this process, the Successor Agency is to receive sufficient funding (formerly the Poway Redevelopment Agency’s tax increment revenue) to pay for the approved items on the ROPS. Any funds in excess of ROPS requirements are distributed to the appropriate taxing agencies based on each agency’s pro rata share of the one-percent property tax. During the fiscal year, as part of its Long-Range Property Management Plan (LRPMP), all but one of the Successor Agency’s remaining properties were sold. Five properties were sold to the City with the intent that they be developed in accordance with the vision for the area that was foreseen when they were purchased by the former Redevelopment Agency. Three properties were sold to private parties via auctions. One property remains with the Successor Agency as it is tied to a long-term lease. Finally, all the remaining capital assets were moved to the City in accordance with the LRPMP. The activity is reflected in the Capital Asset section below 35 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -14-   CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets: The capital assets of the City are those assets that are used in the performance of City functions. Capital Assets include land, buildings, facility improvements, infrastructure, equipment and vehicles. Total capital assets decreased by $13.1 million primarily due to sales of Successor Agency owned assets of $4.4 million and current year depreciation of $8.3 million offset by construction costs of $6.6 million for the swim center renovation, a new boat dock at Lake Poway, Espola Road safety improvements, and reservoir rehabilitation. In addition, land was purchased by the City from the Successor Agency for $5.4 million which resulted in a net loss to the Successor Agency of $2.4 million. Finally, a $26.2 million, net of depreciation, of land, buildings and infrastructure was moved from the Successor Agency to the City in accordance with the Long-Range Property Management Plan. Depreciation on capital assets is recognized in the Government-Wide financial statements. (See Table 3 & Notes 4 and 17 to the financial statements) Debt: At year-end, the City had $14.8 million in governmental-type debt, $292,000 in Proprietary debt, and $157.8 million in Fiduciary debt (Table 4). The overall decrease in bond balances was due to scheduled principal payments and premium/discount amortizations. The increased Loans Payable balance was attributable to accrued interest related to the operating covenant with AZ Poway, LLC (dba Mossy Nissan) which exceeded the payment required under the covenant. The Compensated Absences increases were a result of the normal course of business. (See Table 4 & Note 5 to financial statements) Fiduciary 2018 2017 Tax Allocation Bonds $ - $ - $ - $ - $ 154,505 $163,594 $154,505 $ 163,594 Certificates of Participation 13,196 13,987 - - - 430 13,196 14,417 Revenue Bonds - - - - - - - - Loans Payable - - - - 3,339 3,193 3,339 3,193 Comp Absences 1,586 1,554 292 250 - - 1,878 1,804 Total $ 14,782 $ 15,541 $ 292 $ 250 $ 157,844 $167,217 $172,918 $ 183,008 2017 Table 4 City of Poway Outstanding Debt at Year-End (In Thousands) Governmental Business TotalActivitiesActivities 2018 2017 2018 2017 2018 36 of 281 May 7, 2019, Item #1.7   City of Poway  June 30, 2018 Comprehensive Annual Financial Reporting  -15-   NEXT YEAR’S BUDGET AND ECONOMIC FACTORS In considering the update of the City Budget for fiscal year 2018-2019, the City Council and management continue to expect improvement in the local economy. Both property tax and sales tax are expected to moderately increase over fiscal year’s 2017-18 budgeted revenues. Increases in the budget for property and sales taxes, as well as for Investment Income and Development Services fees, are the primary reasons that the total General Fund revenue budget is projected to be 6.7% higher than that of Fiscal Year 2017-18 revenue budget. Property taxes are expected to continue to rise, though at a slightly slower pace since assessed values for properties that received reductions during the Great Recession have already started to be recovered over the previous three years. Sales taxes are also expected to continue to increase, with no significant increase expected in any one sector. The continued rise in interest rates is expected to increase investment income, and development activity along Poway Road is expected to increase both Development Services revenues and expenditures. General Fund expenditures are budgeted to grow by 7.6%, which was a result of increases in most City functions. One consideration when looking at the increase is that the City’s labor agreements were approved after the adoption of the Fiscal Year 2017-18 budget, so that adopted budget did not include those increases. Therefore, when comparing the two budgets it should be noted that there are in essence two fiscal years’ worth of labor increases in the Fiscal Year 2018-19 budget. As mentioned above, increases in Development Services expenditures are partially offset by additional revenues in these areas. The increase in the City’s Finance Department’s budget was primarily caused by the inclusion of additional personnel expenses for succession planning, and one-time overlap of support costs for two Electronic Resource Planning Systems. During Fiscal Year 2018-19 the City will be converting from its 25-year legacy system to Tyler Munis. There was also a 6% increase in the contract with the County of San Diego for law enforcement services. The City’s initial projections showed a moderate operating surplus of $852,000. Aside from the General Fund, the other budget activity of note concerns the City’s Water and Sewer funds. The Water Fund is being closely monitored because of the significant state-wide water conservation efforts over the past several years. Poway’s consumption was significantly reduced through Fiscal Year 2015-16, but water restrictions were eased, and Poway’s consumption has now increased for the past two years by 13.3% for Fiscal Year 2017-18. However, it was still necessary to increase water rates in January 2018. The City is scheduled to hold a Water and Sewer Rate Workshop in January 2019 where the rate proposal for the next year will be discussed. Projected consumption as well as the estimated pass-through costs will be the determining factors that affect future rate adjustments. The Sewer Fund had accumulated resources over several years in anticipation of significant pass-through costs from San Diego Metro as part of the planned upgrade of sewer treatment facilities at the Point Loma wastewater treatment plant. However, now San Diego has created a Pure Water program which will divert a significant amount of wastewater from the Point Loma Facility. During Fiscal Year 2017-18 the City participated in negotiations for a reinstated regional wastewater agreement that will include the Pure Water program. Over the next several years a portion of these reserves will be used to fund Poway’s portion of this program. The fund is continually analyzed to ensure its long-term stability. CONTACTING THE CITY’S FISCAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s fiduciary responsibility for the funds it receives. If you have questions about this report or need additional financial information, contact the City’s Finance Department, at the City of Poway, 13325 Civic Center Drive, Poway, California 92064 or online at http://www.poway.org. 37 of 281 May 7, 2019, Item #1.7   -16- BASIC FINANCIAL STATEMENTS 38 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 39 of 281 May 7, 2019, Item #1.7   -17- GOVERNMENT-WIDE FINANCIAL STATEMENTS 40 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Net Position June 30, 2018 The accompanying notes are an integral part of these financial statements. -18-  Governmental Activities Business-Type Activities Total ASSETS Current assets: Cash and investments 78,935,151$ 27,028,377$ 105,963,528$ Cash and investments with fiscal agents 627,958 - 627,958 Receivables: Taxes 3,062,142 - 3,062,142 Accounts 782,885 6,309,377 7,092,262 Interest 856,612 - 856,612 Due from other governments 319,246 - 319,246 Prepaid items 121,433 - 121,433 Land held for resale 5,367,000 - 5,367,000 Inventories 140,207 3,160,255 3,300,462 Total current assets 90,212,634 36,498,009 126,710,643 Noncurrent assets: Notes receivable 10,010,396 - 10,010,396 Internal balances 269,741 (269,741) - Loans to the Successor Agency to the Poway Redevelopment Agency 1,518,492 1,824,160 3,342,652 Loans to other governments - 855,221 855,221 Capital assets: Nondepreciable assets 45,012,419 1,032,884 46,045,303 Depreciable assets, net 76,505,365 31,085,180 107,590,545 Total capital assets 121,517,784 32,118,064 153,635,848 Total noncurrent assets 133,316,413 34,527,704 167,844,117 Total assets 223,529,047 71,025,713 294,554,760 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding of debt 173,028 - 173,028 Pension related 10,358,871 1,750,189 12,109,060 Total deferred outflows of resources 10,531,899 1,750,189 12,282,088 Primary Government 41 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Net Position June 30, 2018 (Continued) The accompanying notes are an integral part of these financial statements.  -19- Governmental Activities Business-Type Activities Total LIABILITIES Current liabilities: Accounts payable 3,938,820$ 1,584,732$ 5,523,552$ Accrued liabilities 1,081,185 176,185 1,257,370 Accrued interest payable 199,481 - 199,481 Deposits - 124,617 124,617 Unearned revenue 236,888 98,400 335,288 Long-term debt - due within one year 2,367,918 284,030 2,651,948 Total current liabilities 7,824,292 2,267,964 10,092,256 Noncurrent liabilities: Long-term debt - due in more than one year 12,413,764 8,386 12,422,150 Net pension liability 42,622,262 7,138,439 49,760,701 Total noncurrent liabilities 55,036,026 7,146,825 62,182,851 Total liabilities 62,860,318 9,414,789 72,275,107 DEFERRED INFLOWS OF RESOURCES Pension related 837,212 134,764 971,976 NET POSITION Net investment in capital assets 108,494,835 32,118,064 140,612,899 Restricted for: Debt service 535,900 - 535,900 Drainage 2,930,941 - 2,930,941 Fire protection 125,248 - 125,248 Grants 294,732 - 294,732 Housing 2,920,294 - 2,920,294 Maintenance Districts 7,829,104 - 7,829,104 Other Purposes 2,622,300 - 2,622,300 Parks and recreation 590,313 - 590,313 Streets 1,915,188 - 1,915,188 Transportation 877,455 - 877,455 Total restricted 20,641,475 - 20,641,475 Unrestricted 41,227,106 31,108,285 72,335,391 Total net position 170,363,416$ 63,226,349$ 233,589,765$ Primary Government 42 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Activities For the Year Ended June 30, 2018 The accompanying notes are an integral part of these financial statements. -20-  Operating Capital Total Charges for Contributions Contributions Program Functions/Programs Expenses Services and Grants and Grants Revenues Primary government: Governmental activities: General government 8,048,190$ 352,830$ 607,115$ -$ 959,945$ Public safety 25,139,954 2,171,552 551,042 - 2,722,594 Public works 15,818,102 2,740,562 114,799 - 2,855,361 Development services 4,793,032 1,975,450 899,420 - 2,874,870 Community services 7,372,710 2,595,229 150,495 198,584 2,944,308 Interest and fiscal charges 429,617 - - - - Total governmental activities 61,601,605 9,835,623 2,322,871 198,584 12,357,078 Business-type activities: Water 25,502,524 25,583,581 - 2,108 25,585,689 Sewer 8,797,837 8,486,571 - 1,481 8,488,052 Total business-type activities 34,300,361 34,070,152 - 3,589 34,073,741 Total primary government 95,901,966$ 43,905,775$ 2,322,871$ 202,173$ 46,430,819$ ` Program Revenues 43 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Activities For the Year Ended June 30, 2018 (Continued) The accompanying notes are an integral part of these financial statements.  -21- Governmental Business-type Functions/Programs Activities Activities Total Primary government: Governmental activities: General government (7,088,245)$ -$ (7,088,245)$ Public safety (22,417,360) - (22,417,360) Public works (12,962,741) - (12,962,741) Development services (1,918,162) - (1,918,162) Community services (4,428,402) - (4,428,402) Interest and fiscal charges (429,617) - (429,617) Total governmental activities (49,244,527) - (49,244,527) Business-type activities: Water - 83,165 83,165 Sewer - (309,785) (309,785) Total business-type activities - (226,620) (226,620) Total primary government (49,244,527) (226,620) (49,471,147) General revenues: Taxes: Property taxes 24,153,826 - 24,153,826 Sales tax 13,981,478 - 13,981,478 Transient occupancy taxes 654,235 - 654,235 Franchise taxes 1,611,000 - 1,611,000 Other taxes 3,630,276 - 3,630,276 Total taxes 44,030,815 - 44,030,815 Investment earnings 1,468,845 264,609 1,733,454 Miscellaneous 3,285,592 3,938,311 7,223,903 Transfers in (out)426,823 (426,823) - Total general revenues and transfers 49,212,075 3,776,097 52,988,172 Special Item: Transfer of capital assets 26,204,302 - 26,204,302 Change in net position 26,171,850 3,549,477 29,721,327 Net position, beginning of year 144,191,566 59,676,872 203,868,438 Net position, end of year 170,363,416$ 63,226,349$ 233,589,765$ Changes in Net Position Net (Expense) Revenue and 44 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 45 of 281 May 7, 2019, Item #1.7   -22- FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements 46 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 47 of 281 May 7, 2019, Item #1.7 City of Poway Balance Sheet - Governmental Funds June 30, 2018 The accompanying notes are an integral part of these financial statements.  -23-  Special Revenue Fund Total Housing Non-major Total General Authority Governmental Governmental Fund Fund Funds Funds ASSETS Cash and investments 48,470,359$ 2,128,970$ 18,164,970$ 68,764,299$ Receivables: Taxes 3,040,775 - 21,367 3,062,142 Notes 10,010,396 - - 10,010,396 Accounts 646,478 24,445 111,962 782,885 Interest 855,387 - 1,225 856,612 Due from other funds 274,747 - - 274,747 Advances to other funds 1,335,921 - 17,576 1,353,497 Due from other governments 73,753 - 245,493 319,246 Prepaid items 121,433 - - 121,433 Land held for resale 5,367,000 - - 5,367,000 Inventories, at cost 140,207 - - 140,207 Advances to fiduciary funds - 668,531 849,961 1,518,492 Restricted assets: Cash and investments with fiscal agents - - 627,958 627,958 Total assets 70,336,456$ 2,821,946$ 20,040,512$ 93,198,914$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 3,317,151$ 14,769$ 461,753$ 3,793,673$ Accrued liabilities 1,017,536 - 51,286 1,068,822 Due to other funds - - 328,128 328,128 Advances from other funds 360,500 - 1,109,275 1,469,775 Unearned revenue - 35,730 201,158 236,888 Total liabilities 4,695,187 50,499 2,151,600 6,897,286 Deferred inflows of resources: Unavailable revenue 2,952 - 34,744 37,696 Total deferred inflows of resources 2,952 - 34,744 37,696 FUND BALANCES Nonspendable 15,639,036 - - 15,639,036 Restricted - 2,771,447 17,870,028 20,641,475 Assigned 16,613,992 - - 16,613,992 Committed 19,321,583 - - 19,321,583 Unassigned 14,063,706 - (15,860) 14,047,846 Total fund balances 65,638,317 2,771,447 17,854,168 86,263,932 Total liabilities, deferred inflows of resources and fund balances 70,336,456$ 2,821,946$ 20,040,512$ 93,198,914$ 48 of 281 May 7, 2019, Item #1.7 City of Poway Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position June 30, 2018 The accompanying notes are an integral part of these financial statements.  -24- Total Fund Balances - Total Governmental Funds 86,263,932$ Amounts reported for governmental activities in the Statement of Net Position were different because: resources and, therefore, were not reported in the funds. Non-depreciable 45,012,419$ Depreciable, net of accumulated depreciation 76,505,365 121,517,784 on the Government-Wide Statement of Net Position.173,028 reported in the governmental funds: Pension related deferred outflows of resources (net of $123,780 reported in Internal Service Fund)10,235,091 Pension related deferred inflows of resources (net of $10,415 reported in Internal Service Fund)(826,797) 9,408,294 Long-term liabilities were not due and payable in the current period and therefore were not reported in the governmental funds. Long-term liabilities - due within one year Long-term debt (810,432) Compensated absences (net of $27,890 reported in Internal Service Fund)(1,529,596) Long-term liabilities - due in more than one year Long-term debt (12,385,545) Pension related (net of $513,163 reported in Internal Service Fund)(42,109,099) Compensated absences (net of $824 reported in Internal Service Fund)(27,395) (56,862,067) Funds Balance Sheet.(199,481) Statements.37,696 Statement of Net Position.10,024,230 Net position of governmental activities 170,363,416$ Deferred inflows and outflows of resources related to pensions have not been Capital assets used in governmental activities were not current financial Deferred losses on refunding of debt did not require current financial resources but were deferred and subject to capitalization and amortization activities to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the Government-Wide Interest payable on long-term debt did not require current financial resources. resulting from activities in which revenues were earned but funds were not available were recognized as revenues in the Government-Wide Financial Unavailable revenues recorded in governmental fund financial statements Internal service funds were used by management to charge the costs of certain Therefore, interest payable was not reported as a liability in the Governmental 49 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds For the Year Ended June 30, 2018 The accompanying notes are an integral part of these financial statements.  -25-  Special Revenue Fund Total Housing Non-major Total General Authority Governmental Governmental Fund Fund Funds Funds REVENUES Taxes 38,620,527$ -$ 5,410,288$ 44,030,815$ Licenses and permits 698,848 - - 698,848 Intergovernmental 783,241 - 666,296 1,449,537 Charges for services 2,623,079 59,839 - 2,682,918 Fines and forfeitures 150,968 - - 150,968 Use of money and property 881,797 40,295 454,901 1,376,993 Developer fees 4,458,832 - 1,079,793 5,538,625 Assessments levied - - 1,900,026 1,900,026 Other revenues 2,875,390 59,667 345,042 3,280,099 Total revenues 51,092,682 159,801 9,856,346 61,108,829 EXPENDITURES Current: General government 4,348,184 7,988 - 4,356,172 Public safety 24,203,074 - 158,279 24,361,353 Public works 5,443,423 - 6,221,631 11,665,054 Development services 4,468,523 34,861 - 4,503,384 Community services 5,837,896 - - 5,837,896 Capital outlay 7,292,310 831,705 1,925,036 10,049,051 Debt service: Principal - - 770,000 770,000 Interest and fiscal charges - - 438,961 438,961 Total expenditures 51,593,410 874,554 9,513,907 61,981,871 Excess (deficiency) of revenues over (under) expenditures (500,728) (714,753) 342,439 (873,042) OTHER FINANCING SOURCES (USES) Transfers in 1,679,384 820,000 1,314,282 3,813,666 Transfers out (1,105,779) - (1,590,119) (2,695,898) Total other financing sources (uses)573,605 820,000 (275,837) 1,117,768 Net change in fund balance 72,877 105,247 66,602 244,726 Fund balances, beginning of year 65,565,440 2,666,200 17,787,566 86,019,206 Fund balances, end of year 65,638,317$ 2,771,447$ 17,854,168$ 86,263,932$ 50 of 281 May 7, 2019, Item #1.7 City of Poway Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2018 The accompanying notes are an integral part of these financial statements.  -26- Net change in fund balance - total governmental funds 244,726$ different because: Capital asset expenditures 5,188,167$ Depreciation expense (5,693,254) Loss due to disposition of capital assets (4,669) (509,756) Capital Assets related to transfer of operations is included in the special item on the Statement of Activities.26,204,302 Principal payments on long-term debt 770,000 Changes in pension related items (1,473,838) (703,838) Change in compensated absences (51,301) Change in interest expense on long term debt 9,344 Amortization of deferred loss on bond refunding (11,933) Amortization of bond premium 2005 Certificates of Participation 3,236 Amortization of bond premium 2012 Certificates of Participation 18,086 (32,568) (58,357) 1,027,341 Change in net position of governmental activities 26,171,850$ Government-Wide Statement of Activities, the cost of those assets will be allocated over their estimated useful lives as depreciation expense. Governmental funds report capital outlay as expenditures. However, in the funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when the debt is first issued, whereas these are deferred and amortized in the statement of activities. The issuance of long-term debt provides current financial resources to governmental current financial resources and, therefore, are not reported as expenditures in Some expenses reported in the statement of activities do not require the use of governmental funds. Amounts reported for governmental activities in the Statement of Activities were revenue of the internal service fund was reported with governmental activities. Revenues in the Government-wide Statement of Activities that did not provide current financial resources are not reported as revenues in the funds. The Internal service fund was used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net 51 of 281 May 7, 2019, Item #1.7   -27- PROPRIETARY FUND FINANCIAL STATEMENTS 52 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Net Position Proprietary Funds June 30, 2018 The accompanying notes are an integral part of these financial statements. -28- Governmental Activities - Internal Service Water Sewer Total Fund ASSETS Current assets: Cash and investments 8,628,404$ 18,399,973$ 27,028,377$ 10,170,852$ Receivables: Accounts 4,911,733 1,397,644 6,309,377 - Inventories 3,139,483 20,772 3,160,255 - Due from other funds 32,890 20,491 53,381 - Total current assets 16,712,510 19,838,880 36,551,390 10,170,852 Noncurrent assets: Advances to other funds - 214,500 214,500 439,400 Advances to the Successor Agency to the Poway Redevelopment Agency 1,260,483 563,677 1,824,160 - Loans to other governments 149,446 705,775 855,221 - Capital assets: Nondepreciable 956,087 76,797 1,032,884 - Depreciable 60,480,584 36,491,089 96,971,673 - Less accumulated depreciation (41,754,505) (24,131,988) (65,886,493) - Total net capital assets 19,682,166 12,435,898 32,118,064 - Total noncurrent assets 21,092,095 13,919,850 35,011,945 439,400 Total assets 37,804,605 33,758,730 71,563,335 10,610,252 DEFERRED OUTFLOWS OF RESOURCES Pension related items 1,506,367 243,822 1,750,189 123,780 LIABILITIES Current liabilities: Accounts payable 1,519,551 65,181 1,584,732 145,147 Accrued liabilities 154,857 21,328 176,185 12,363 Deposits 124,617 - 124,617 - Unearned Revenue 68,007 30,393 98,400 - Compensated absences due within one year 246,746 37,284 284,030 27,890 Total current liabilities 2,113,778 154,186 2,267,964 185,400 Noncurrent liabilities: Advances from other funds 537,622 - 537,622 - Compensated absences 6,615 1,771 8,386 824 Net pension liability 6,149,576 988,863 7,138,439 513,163 Total noncurrent liabilities 6,693,813 990,634 7,684,447 513,987 Total liabilities 8,807,591 1,144,820 9,952,411 699,387 DEFERRED INFLOWS OF RESOURCES Pension related items 116,587 18,177 134,764 10,415 NET POSITION Net investment in capital assets 19,682,166 12,435,898 32,118,064 - Unrestricted 10,704,628 20,403,657 31,108,285 10,024,230 Total net position 30,386,794$ 32,839,555$ 63,226,349$ 10,024,230$ 53 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2018 The accompanying notes are an integral part of these financial statements. -29- Governmental Activities - Internal Service Water Sewer Total Fund OPERATING REVENUES Charges for services 25,345,527$ 8,408,917$ 33,754,444$ 3,078,163$ Connection fees 238,054 77,654 315,708 - Other 3,200,735 737,576 3,938,311 - Total operating revenues 28,784,316 9,224,147 38,008,463 3,078,163 OPERATING EXPENSES Personnel services 4,716,874 624,565 5,341,439 237,069 Maintenance and operations 3,884,728 7,086,404 10,971,132 1,221,644 Administrative expenses 523,744 - 523,744 - Cost of purchased water 14,852,123 - 14,852,123 - Depreciation 1,513,219 1,086,868 2,600,087 - Total operating expenses 25,490,688 8,797,837 34,288,525 1,458,713 Operating income 3,293,628 426,310 3,719,938 1,619,450 NONOPERATING REVENUES (EXPENSES) Interest revenue 113,720 150,889 264,609 60,171 Interest expense and fiscal charges (11,836) - (11,836) - Gain on sale of property - - - 25,378 Grant revenue 2,108 1,481 3,589 6,309 Other nonoperating revenue - - - 6,978 Total nonoperating revenues (expenses)103,992 152,370 256,362 98,836 Income before transfers 3,397,620 578,680 3,976,300 1,718,286 TRANSFERS Transfers in 33,364 22,240 55,604 9,580 Transfers out (318,940) (163,487) (482,427) (700,525) Total transfers (285,576) (141,247) (426,823) (690,945) Change in net position 3,112,044 437,433 3,549,477 1,027,341 Net position, beginning of year 27,274,750 32,402,122 59,676,872 8,996,889 Net position, end of year 30,386,794$ 32,839,555$ 63,226,349$ 10,024,230$ 54 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2018 The accompanying notes are an integral part of these financial statements.  -30- Governmental Activities - Internal Service Water Sewer Total Fund Cash flows from operating activities: Cash received from customers 25,209,554$ 8,428,191$ 33,637,745$ -$ Cash received from interfund charges - - - 3,085,845 Cash paid to employees for services (3,827,482) (611,195) (4,438,677) (339,021) Cash paid to suppliers for goods or services (19,218,309) (6,928,474) (26,146,783) (1,291,554) Cash paid to other City funds (221,166) (84,017) (305,183) - Other 3,200,735 737,576 3,938,311 - Net cash provided by operating activities 5,143,332 1,542,081 6,685,413 1,455,270 Cash flows from noncapital financing activities: Payments received on loan to the Business Park Fiduciary Fund - 5,059 5,059 - Loans to other governments (149,446) (656,773) (806,219) 5,397 Loan repayment to the Successor Agency 6,326 - 6,326 - Due to (from) other funds (2,469) (1,341) (3,810) - Advances from other funds (401,250) - (401,250) - Other nonoperating revenues - - - 6,978 Transfers from other funds 33,364 22,240 55,604 9,580 Transfers to other funds (318,940) (163,487) (482,427) (700,525) Net cash used for noncapital financing activities (832,415) (794,302) (1,626,717) (678,570) Cash flows from capital and related financing activities: Acquisition of capital assets (1,664,129) (112,581) (1,776,710) - Sale of capital assets - - - 25,378 Capital grant revenue 2,108 1,481 3,589 6,309 Payment of interest and fees (11,836) - (11,836) - Net cash provided by (used for) capital and related financing activities (1,673,857) (111,100) (1,784,957) 31,687 Cash flows from investing activities: Interest income 113,720 150,889 264,609 60,171 Net cash provided by investing activities 113,720 150,889 264,609 60,171 Net increase in cash and investments 2,750,780 787,568 3,538,348 868,558 Cash and investments, beginning of year 5,877,624 17,612,405 23,490,029 9,302,294 Cash and investments, end of year 8,628,404$ 18,399,973$ 27,028,377$ 10,170,852$ 55 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2018 (Continued) The accompanying notes are an integral part of these financial statements.  -31- Governmental Activities - Internal Service Water Sewer Total Funds Reconciliation of operating income to net cash provided by operating activities: Operating income 3,293,628$ 426,310$ 3,719,938$ 1,619,450$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,513,219 1,086,868 2,600,087 - (Increase) decrease in assets: Accounts receivable (374,027) (58,380) (432,407) 7,682 Inventories (311,487) 89 (311,398) - Increase (decrease) in liabilities: Accounts payable 30,966 43,431 74,397 (69,910) Accrued liabilities 28,903 (3,430) 25,473 (4,516) Compensated absences 42,885 (617) 42,268 (19,360) Net Pension Liability 817,604 17,417 835,021 (78,076) Unearned revenue 68,007 30,393 98,400 - Deposits 33,634 - 33,634 - Net cash provided by operating activities 5,143,332$ 1,542,081$ 6,685,413$ 1,455,270$ 56 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 57 of 281 May 7, 2019, Item #1.7   -32- FIDUCIARY FUND FINANCIAL STATEMENTS Agency funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments, and/or other funds. RDA Successor Agency Private Purpose Trust Fund is used to account for monies received from the San Diego County Auditor Controller for the repayment of the enforceable obligations of the former Poway Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on an approved Recognized Payment Obligation Schedule (ROPS). 58 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 59 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Fiduciary Net Position Fiduciary Funds June 30, 2018 The accompanying notes are an integral part of these financial statements.  -33- Successor Agency to the Poway Agency Redevelopment Funds Agency ASSETS Current assets Cash and investments 3,017,421$ 7,798,953$ Receivables: Interest - 1,835 Prepaid charges, net - 290,619 Total current assets 3,017,421 8,091,407 Noncurrent assets Capital assets: Nondepreciable - 2,864,759 Total noncurrent assets - 2,864,759 Total assets 3,017,421$ 10,956,166 LIABILITIES Current liabilities Accounts payable 61,137$ - Long-term debt - due within one year - 8,958,261 Total current liabilities 61,137 8,958,261 Noncurrent liabilities Developer deposits 2,956,284 - Advances from City of Poway - 3,342,652 Interest payable - 275,010 Long-term debt due - in more than one year - 148,884,891 Total non current liabilities 2,956,284 152,502,553 Total liabilities 3,017,421$ 161,460,814 DEFERRED INFLOWS OF RESOURCES Deferred gain on refunding of debt 1,420,198 NET POSITION (DEFICIT) Held in trust for retirement of obligations of the former Poway Redevelopment Agency (151,924,846)$ 60 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2018 The accompanying notes are an integral part of these financial statements.  -34- Successor Agency to the Poway Redevelopment Agency ADDITIONS Redevelopment Property Tax Trust Fund 47,750,165$ Investment earnings 234,202 Other revenue 438,428 Total additions 48,422,795 DEDUCTIONS Enforceable obligations payments 45,031,330 Administration expenses 975,371 Interest expense and fiscal charges 4,967,776 Loss on sale of property 4,503,803 Loss on transfer of property 26,204,302 Total deductions 81,682,582 Change in net position (33,259,787) Net position (deficit), beginning of year, as restated (118,665,059) Net position (deficit), end of year (151,924,846)$ 61 of 281 May 7, 2019, Item #1.7   -35- City of Poway Comprehensive Annual Financial Report For the year ended June 30, 2018 Notes to Basic Financial Statements 62 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -36- Note 1 – Summary of Significant Accounting Policies The basic financial statements of the City of Poway, California, (the “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 of the City’s accounting policies are described below: A. Financial Reporting Entity The City was incorporated December 1, 1980, under the general laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public safety (police – through the County of San Diego, and fire), community services, engineering services, planning services, public works, general administrative services, and capital improvements. As required by U.S. GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and either the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete. Component units for which the City is considered financially accountable are described below: Poway Public Financing Authority The Poway Public Financing Authority (the “Authority”) is a joint powers authority organized pursuant to the State of California Government Code, Section 6500. The Authority exists under a Joint Exercise of Power Agreement dated October 8, 1991, between the City and the former Poway Redevelopment Agency (the “Agency”). Its purpose is to assist in financing and refinancing projects for the benefit of the City and the Agency. The Authority was included within the scope of the reporting entity of the City because its governing body is composed in its entirety of council members of the City. Separate financial statements can be obtained from the Finance Department located at Poway City Hall. 63 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -37- Note 1 – Summary of Significant Accounting Policies (Continued) A. Financial Reporting Entity (Continued) Housing Authority 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 “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 (the “Agency”) and the Housing 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 Housing Authority for the costs to the Housing 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 Housing Authority as the Successor Agency to the Poway Redevelopment Agency. The Housing Authority was included within the scope of the reporting entity of the City because its governing body is composed in its entirety of council members of the City. Separate financial statements can be obtained from the Finance Department located at Poway City Hall. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and means by which spending activities are controlled. 64 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -38- Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government–Wide and Fund Financial Statements The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. These basic financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’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 City in three categories:  Charges for services  Operating contributions and grants  Capital contributions and grants Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business- type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:  Due to and from other funds  Advances to and from other funds  Transfers in and out 65 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -39- Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met those qualifications. 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 sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the 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 City, are real and personal property tax, other local taxes, franchise fees, forfeitures and penalties, motor license fees, rents and concessions, interest revenue, and state and federal grants and subventions. Expenditures are recorded in the accounting period in which the related fund liability is incurred except for interest on long-term debt, claims and judgments, and compensated absences, which are recorded only when due. 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 GASB Statement No. 34. 66 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -40- Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued) The City reports the following major governmental funds: The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The Housing Authority Fund receives lease payments from properties owned by the Authority as well as residual payments from its non-profit partners that own and operate affordable housing projects that received funding from the former Redevelopment Agency. The fund is not required to be reported as a major fund every year but is reported as such due to the significance of its operations. Proprietary Fund Financial Statements Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for all proprietary funds. A separate column representing the internal service fund is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government-wide financial statements. Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Change in Fund Net Position presents increases (revenues) and decreases (expenses) in total 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. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. 67 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -41- Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued) The City reports the following major proprietary funds: The Water Enterprise Fund is used to account for the provision of water services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to administration, operations, maintenance, financing and related debt service, and billing and collection. The Sewer Enterprise Fund is used to account for the provision of sewer services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to administration, operations, maintenance, financing and related debt service, and billing and collection. The City reports one internal service fund that is used to account for vehicle maintenance services provided to the City’s fleet of vehicles for which the user divisions are charged. Fiduciary Fund Financial Statements The Agency Funds are custodial in nature (assets equal liabilities) and use the accrual basis of accounting, but do not involve measurement of results of operations. The City reports agency funds used to account for the collection of assessments from owners of property with their respective Districts, and for the remittance of such assessments to the bondholders as required by the Mello-Roos Community Facilities Act of 1982. The Private Purpose Trust Fund is used to account for non-housing activities of the City of Poway Successor Agency on behalf of the former Poway Redevelopment Agency. C. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City considers pooled cash and highly liquid investments held with financial institutions, a fiscal agent, and in a pooled account with the State, to be cash equivalents. The cash flow statements require presentation of “cash and cash equivalents.” For the purposes of the statement of cash flows, the City considers all proprietary fund pooled cash and investments as “cash and cash equivalents,” as such funds are available to the various funds as needed. With respect to cash and investments with fiscal agents, the City considers all investments with an original maturity of less than three months to be cash equivalents. 68 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -42- Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents 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 pooled funds in structured notes and asset-backed securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these structured notes and asset-backed securities are subject to market risk and to change in interest rates. The City adheres to certain disclosure requirements, if applicable for deposit and investment risk that are specified for the following areas:  Interest Rate Risk  Credit Risk  Overall  Custodial Credit Risk  Concentration of Credit Risk  Foreign Currency Risk The City pools cash and investments of all funds, except assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds on each fund’s average cash and investment balance. Investments are reported in the accompanying financial statements at fair value. Changes in fair value that occur during a fiscal year are recognized as investment earnings reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of an investment. D. Inter-fund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds” (i.e., current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the governmental-wide financial statements as “interfund balances.” E. Inventories Inventories within the various fund types consist of water, materials and supplies which are valued at cost on a first-in, first-out basis. Reported expenditures reflecting the purchase of supplies have been restated to reflect the consumption method of recognizing inventory- related expenditures. 69 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -43- Note 1 – Summary of Significant Accounting Policies (Continued) F. 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 applicable governmental or business-type activities in the Government-Wide Financial Statements. City 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 acquisition value at the requisition date. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows: Buildings 10-50 years Buildings improvements 10-100 years Furniture and Equipment 5-20 years Infrastructure 20-50 years The City defines infrastructure as the basic physical assets that allow the City to function. These assets include streets, bridges, sidewalks, drainage systems, and lighting systems, etc. Each major infrastructure system can be divided into subsystems. For example the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems are not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. For infrastructure systems, the City elected to use the “Basic Approach” for infrastructure reporting. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest on construction-related debt incurred during the period of construction for business-type and proprietary fund assets is capitalized as a cost of the constructed assets. Capital assets acquired under capital lease are capitalized at the net present value of the total lease payments. Capital Assets Acquired Under Lease Purchase Contracts The long-term principal portion of debt on non-proprietary capital assets acquired through lease purchase contracts is accounted for in the government-wide financial statements as “capital lease obligations.” A capital asset is recorded at the net present value of total lease payments in the government-wide financial statements. 70 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -44- Note 1 – Summary of Significant Accounting Policies (Continued) G. Deferred Inflows and Deferred Outflows of Resources Deferred outflows of resources are transactions that result in the consumption of net position in one period that are applicable to future periods and are not considered assets. Deferred outflows of resources are required to be presented separately after assets on the statement of net position. Deferred inflows of resources are transactions that result in the acquisition of net position in one period that are applicable to future periods and are not considered to be liabilities. Deferred inflows of resources are required to be presented separately after liabilities on the statement of net position. H. Compensated Absences Government-Wide Financial Statements For governmental and business-type activities, compensated absences are recorded as incurred and the related expenses and liabilities are reported. Fund Financial Statements In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the City’s policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund. Vested or accumulated compensated absences are recorded in proprietary funds as an expense and liability of those funds as the benefits accrue to employees. I. Long-Term Debt Government-Wide Financial Statements Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of applicable premium or discount. Fund Financial Statements The governmental fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. 71 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -45- Note 1 – Summary of Significant Accounting Policies (Continued) J. Net Position In the Government-Wide Financial Statements and proprietary fund financial statements, net position is classified as follows: 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 expenses are incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first, then unrestricted net position as it is needed. K. Fund Balances In the Governmental Fund Financial Statements, fund balances are classified in the following categories: Nonspendable – 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 City Council is considered the highest authority for the City. 72 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -46- Note 1 – Summary of Significant Accounting Policies (Continued) K. Fund Balances (Continued) 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 City Council has authorized the City Manager for that purpose. Unassigned – This classification includes all residual fund balances for the General Fund that has not been restricted, committed or assigned to specific purposes within the General Fund. The General Fund is the only fund that reports a positive unassigned fund balance amount. The unassigned classification also includes negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of assigned fund balance amounts. It is the City’s policy to consider restricted fund balance spent first when expenditure is incurred for purposes for which both restricted and unrestricted fund balance are available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. In addition to the Fund types described earlier, the City reports the following fund types: The Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted to expenditure for special purposes other than debt service or capital projects. The Capital Projects Funds are used to account for and report financial resources that are restricted or assigned to expenditures for capital outlays including the acquisition or construction of capital facilities and other capital assets. The Debt Service Fund is used to account for the principal and interest payments on current and long-term debt. The Internal Service Fund is used to account for the financing of special activities that provide services within the City. The primary activity of the City’s Internal Service Fund is vehicle and equipment maintenance. L. Use of Estimates The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the disclosure of contingent assets and liabilities at the date of the basic financial statements and the related reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management believes that the estimates are reasonable. 73 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -47- Note 2 – Cash, Cash Equivalents and Investments The City maintains a cash and investment pool, which includes cash balances and authorized investments of all 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. The following is a summary of cash and investments at June 30, 2018: Fiduciary Funds Governmental Business-Type Statement of Activities Activities Net Position Total Cash and investments 78,935,151$ 27,028,377$ 10,816,374$ 116,779,902$ Cash and investments with fiscal agents 627,958 - - 627,958 Total 79,563,109$ 27,028,377$ 10,816,374$ 117,407,860$ Government-Wide Statement of Net Position Cash, cash equivalents, and investments consisted of the following at June 30, 2018: Cash on hand 7,777$ Demand deposits 943,318 Investments 116,456,765 Total 117,407,860$ 74 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -48- Note 2 – Cash, Cash Equivalents and Investments (Continued) A. Cash Deposits The carrying amounts of the City’s demand deposits were $943,318 at June 30, 2018. Bank balances at June 30, 2018, were $2,507,166 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 City’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 City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured by the Federal Deposit Insurance Corporation. The City, 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. B. Investments City Cash & Investment Pool The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. 75 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -49- Note 2 – Cash, Cash Equivalents and Investments (Continued) B. Investments (Continued) City Cash & Investment Pool (Continued) This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Maximum Maximum Maximum Percentage Investment Authorized Investment Type Maturity of Portfolio* in One Issuer* U.S. Treasury Obligation 5 years None None U.S. Agency Securities 5 years 75% 25% Bankers Acceptances 180 days 40% 5% Medium-Term and Corporate Notes 5 years 30% 5% Money Market Mutual Funds N/A 20% 10% Mortgage Backed Securities 5 years 20% None Asset Backed Securities 5 years 20% None Commercial Paper 270 days 25% 3% Municipal Bonds 5 years 30% 5% Negotiable Certificates of Deposits 5 years 30% 5% Local Agency Investment Fund (LAIF) N/A None None County of San Diego Investment Pool N/A None None CalTrust Joint Powers Authority N/A None None Obligation of any State 5 years None None * Excluding amounts held by trustee that are not subject to California Government Code restriction. Investment Authorized by Debt Agreements Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreement, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Maximum Percentage Investment Authorized Investment Type Maturity of Portfolio in One Issuer Repurchase agreement 1 year None 30% Money Market Mutual Funds N/A None None U.S. Agency Securities 5 years 75% 25% Investment Contracts 30 years None None Local Agency Investment Fund (LAIF) N/A None None 76 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -50- Note 2 – Cash, Cash Equivalents and Investments (Continued) C. Risk Disclosures Interest Rate Risk 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 is to changes in the market interest rates. One of the ways that the City 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. Information about the sensitivity of the fair values of the City’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 City’s investments by maturity: 12 Months 13 to 24 25 to 60 More than Investment Type Amounts or Less Months Months 60 Months U.S. Treasury Bills 13,886,728$ 8,960,517$ 2,969,649$ 1,956,562$ -$ U.S. Agencies 36,409,814 16,865,214 15,636,881 3,907,719 - Municipalities 1,233,432 1,233,432 - - - CalTrust Investment Pool - Short term 10,836,888 10,836,888 - - - CalTrust Investment Pool - Medium term 10,848,111 - 10,848,111 - - Medium-Term and Corporate Notes 21,319,559 3,974,040 13,416,425 3,929,094 - Local Agency Investment Fund (LAIF) 21,182,148 21,182,148 - - - San Diego County Investment Pool 62,126 62,126 - - - Certificates of Deposit 50,000 50,000 - - - Held by bond trustee: Money Market Funds 627,959 627,959 - - - Total 116,456,765$ 63,792,324$ 42,871,066$ 9,793,375$ -$ Remaining Maturities 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 City’s investment policy, or debt agreements, and the actual rating as of June 30, 2018 for each investment type: 77 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -51- Note 2 – Cash, Cash Equivalents and Investments (Continued) C. Risk Disclosures (Continued) Credit Risk (Continued) Minimum Investment Type Rating S&P Moody's Fair Value U.S. Treasury Bills N/A N/A N/A 13,886,728$ U.S. Agencies Aaa AA Aaa 36,409,814 Municipalities Aaa AA not rated 1,233,432 CalTrust Investment Pool-Short term AAf AAf not rated 10,836,888 CalTrust Investment Pool-Medium term N/A not rated not rated 10,848,111 Medium-Term and Corporate Notes A-/A3 AA Aaa 21,319,559 Local Agency Investment Fund (LAIF) N/A not rated not rated 21,182,148 San Diego County Investment Pool AAAf AAAf not rated 62,126 Certificates of Deposit N/A exempt exempt 50,000 Held by bond trustee: Money Market Funds N/A AAAm Aaamf 627,959 Total 116,456,765$ Concentration of Credit Risk The City’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 City from concentration of credit risk, with the following exceptions: U.S. Treasury Obligations and investments pools (State of California – Local Agency Investment Fund and CalTrust Investment Pool). 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 City is in compliance with these provisions of the Policy. The following is a chart of the City’s investment portfolio: Trustee/Custodian Investment Type Reported Amount Union Bank U.S. Treasuries 13,886,728$ Union Bank U.S. Agencies 36,409,814 Union Bank Municipalities 1,233,432 Union Bank Corporates 21,319,559 Wells Fargo CalTrust Investment Pool 21,684,999 Wells Fargo Certificates of Deposit 50,000 State Treasurer Office LAIF 21,182,148 San Diego County Investment Pool 62,126 US Bank Money Market 627,959 116,456,765$ 78 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -52- Note 2 – Cash, Cash Equivalents and Investments (Continued) D. Investment in Local Agency Investment Funds The City’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. The Local Investment Advisory Board provides oversight for LAIF. The Board consists of five members as designated by statute. The State Treasurer, as Chairman, or his designated representative appoints two members qualified by training and experience in the field of investment or finance, and two members who are treasurers, finance or fiscal officers or business managers employed by any county, city or local district or municipal corporation of this state. As of June 30, 2018, the City had $21,182,148 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. The fair value of the City’s position in the pool is the same as the value of the pool shares. E. Investment in CalTRUST The City is a voluntary participant in the Investment Trust of California (CalTRUST) 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, et. 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 CalTRUST, which are recorded on a fair market value basis. Separate CalTRUST financial statements are available from CalTRUST’s offices at 400 Capitol Mall, Suite 702, Sacramento, CA 95814. As of June 30, 2018, the City had $21,684,999 invested in CalTRUST. The City’s investment in this pool is reported in the accompanying financial statements at fair market value. 79 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -53- Note 2 – Cash, Cash Equivalents and Investments (Continued) F. Investment in San Diego County Investment Pool The City is a voluntary participant in the County Treasury Pool (“County Pool”) which is regulated under the oversight of the Treasurer of the County of San Diego. The fair value of the City’s investment in the County Pool is reported in the accompanying financial statements based upon the City’s pro-rata share of the fair value provided by the County Pool for the entire portfolio. The balance available for withdrawal is based on the accounting records maintained by the Pool. Included in the County Pool’s investment portfolio are collateralized and negotiable certificates of deposit, floating rate securities issued by federal agencies and corporations, money market funds, repurchase agreements and commercial paper. At June 30, 2018, the City had $62,126 invested in the San Diego County Investment Pool. The City’s investment in this pool is reported in the accompanying financial statements at fair market value. G. Fair Value Measurements GASB Statement No. 72, Fair Value Measurements and Application, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs are derived principally from or corroborated by observable market data by correlation or other means for an asset or liability, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability. The following table presents the balances of the assets measured at fair value on a recurring basis as of June 30, 2018. Not Subject to Fair Value Level Total Level 1 Level 2 Level 3 GASB 72 U.S. Treasury Bills 13,886,728$ 13,886,728$ -$ -$ -$ U.S. Agencies 36,409,814 36,409,814 - - - Municipal Bonds 1,233,432 - 1,233,432 - - CalTrust Investment Pools 21,684,999 - - - 21,684,999 Medium-Term and Corporate Notes 21,319,559 - 21,319,559 - - Local Agency Investment Fund (LAIF)21,182,148 - - - 21,182,148 San Diego County Investment Pool 62,126 - - - 62,126 Certificates of Deposit 50,000 50,000 - - - Held by Bond Trustees 627,959 - - - 627,959 Total investments by fair value level 116,456,765$ 50,346,542$ 22,552,991$ -$ 43,557,232$ Fair Value Measurement Using Investments by 80 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -54- Note 3 – Interfund Transactions A. Due To and Due From Other Funds As of June 30, 2018, balances were as follows: General Water Sewer Due to other funds Fund Fund Fund Total Governmental Activities: Non-major Governmental Funds 274,747$ 32,890$ 20,491$ 328,128$ Total due to other funds 274,747$ 32,890$ 20,491$ 328,128$ Due from other funds These balances resulted from loans to cover negative cash balances as of June 30, 2018. B. Advances To and Advances From Other Funds Non-major Governmental General Water Advances to other funds Funds Fund Fund Total Governmental Activities: General Fund 798,299$ -$ 537,622$ 1,335,921$ Non-major Governmental Funds 17,576 - - 17,576 Business-Type Activities Internal Service Fund 78,900 360,500 - 439,400 Sewer Fund 214,500 - - 214,500 Total advances to other funds 1,109,275$ 360,500$ 537,622$ 2,007,397$ Advances from other funds C. Advances To and Advances From Fiduciary Funds Advances from governmental funds Successor Agency to the Advances to fiduciary funds Poway RDA Total Governmental Activities: Housing Authority 668,531$ 668,531$ Non-major Governmental Funds 849,961 849,961 Business-Type Activities Water Fund 1,260,483 1,260,483 Sewer Fund 563,677 563,677 Total 3,342,652$ 3,342,652$ 81 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -55- Note 3 – Interfund Transactions (Continued) C. Advances To and Advances From Fiduciary Funds (Continued) The advances to fiduciary funds were primarily used for the following: The City Council authorized various advances to the former Poway Redevelopment Agency, which now reside in the Successor Agency, totaling $3,342,652. As approved by the California Department of Finance, these advances are being repaid through fiscal year 2032-33. D. Transfers To and From Other Funds Transfers for the year ended June 30, 2018, were as follows: Water Sewer Internal Non-major Enterprise Enterprise Service Governmental Transfers In General Fund Fund Fund Funds Total General Fund -$ 150,980$ 57,760$ 700,525$ 770,119$ 1,679,384$ Housing Authority - - - - 820,000 820,000 Non-major Governmental Funds 1,040,595 167,960 105,727 - - 1,314,282 Water Enterprise Fund 33,364 - - - - 33,364 Sewer Enterprise Fund 22,240 - - - - 22,240 Internal Service Funds 9,580 - - - - 9,580 Total 1,105,779$ 318,940$ 163,487$ 700,525$ 1,590,119$ 3,878,850$ Transfers Out Transfers are primarily used for the following:  Move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them;  Move receipt restricted to the debt service from the funds collecting the receipts, to the debt service fund as debt service payments become due;  Move available funds to capital project funds for approved projects;  Move available funds to new funds, or closed funds, at the direction of the Council. 82 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -56- Note 4 – Capital Assets A. Governmental Activities A summary of changes in capital assets for governmental activities for the year ended June 30, 2018 is as follows: Balance at Balance at June 30, 2017 Transfers* Additions Deletions June 30, 2018 Non-Depreciable Assets Land 32,082,894$ 8,362,684$ 830,268$ (879,789)$ 40,396,057$ Construction in progress 512,113 - 4,470,581 (366,332) 4,616,362 Total non-depreciable assets 32,595,007 8,362,684 5,300,849 (1,246,121) 45,012,419 Depreciable Assets Buildings 51,091,788 13,075,366 390,373 - 64,557,527 Improvements other than buildings 3,251,555 2,282,611 - - 5,534,166 Infrastructure 128,788,431 17,739,258 - - 146,527,689 Machinery and equipment 18,886,858 - 743,066 (270,074) 19,359,850 Total depreciable assets 202,018,632 33,097,235 1,133,439 (270,074) 235,979,232 Less accumulated depreciation Buildings (24,703,381) (11,834,758) (1,342,107) - (37,880,246) Improvements other than buildings (1,402,492) (538,914) (200,905) - (2,142,311) Infrastructure (98,717,489) (2,881,945) (3,169,102) - (104,768,536) Machinery and equipment (13,967,039) - (981,140) 265,405 (14,682,774) Total accumulated depreciation (138,790,401) (15,255,617) (5,693,254) 265,405 (159,473,867) Total depreciable assets, net 63,228,231 17,841,618 (4,559,815) (4,669) 76,505,365 Total governmental activities 95,823,238$ 26,204,302$ 741,034$ (1,250,790)$ 121,517,784$ *For additional information on transfers, see Note 17. Governmental activities depreciation expense for capital assets for the year ended June 30, 2018 is as follows: General government 866,623$ Public safety 830,284 Public works 3,498,507 Community services 497,840 Total depreciation expense 5,693,254$ 83 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -57- Note 4 – Capital Assets (Continued) B. Business-type Activities A summary of changes in capital assets for business-type activities for the year ended June 30, 2018 is as follows: Balance at Balance at June 30, 2017 Additions Deletions June 30, 2018 Non-Depreciable Assets Land 76,797$ -$ -$ 76,797$ Construction in progress 1,301,813 2,093,010 (2,438,736) 956,087 Total non-depreciable assets 1,378,610 2,093,010 (2,438,736) 1,032,884 Depreciable Assets Buildings 21,128,309 - - 21,128,309 Improvements other than buildings 70,034,543 1,914,992 - 71,949,535 Machinery and equipment 3,783,853 207,445 (97,469) 3,893,829 Total depreciable assets 94,946,705 2,122,437 (97,469) 96,971,673 Less accumulated depreciation Buildings (18,386,905) (466,824) - (18,853,729) Improvements other than buildings (42,410,614) (1,893,221) - (44,303,835) Machinery and equipment (2,586,356) (240,042) 97,469 (2,728,929) Total accumulated depreciation (63,383,875) (2,600,087) 97,469 (65,886,493) Total depreciable assets, net 31,562,830 (477,650) - 31,085,180 Total business-type activities 32,941,440$ 1,615,360$ (2,438,736)$ 32,118,064$ Business-type activities depreciation expense for capital assets for the year ended June 30, 2018 is as follows: Water Enterprise Fund 1,513,219$ Sewer Enterprise Fund 1,086,868 Total depreciation expense 2,600,087$ 84 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -58- Note 4 – Capital Assets (Continued) C. Fiduciary Activities A summary of changes in capital assets for fiduciary activities for the year ended June 30, 2018 is as follows: Balance at Balance at June 30, 2017 Transfers* Restatement* Additions Deletions June 30, 2018 Non-Depreciable Assets Land 21,774,792$ (8,362,684)$ -$ -$ (10,547,349)$ 2,864,759$ Total non-depreciable assets 21,774,792 (8,362,684) - - (10,547,349) 2,864,759 Depreciable Assets Buildings 17,581,603 (15,357,977) (2,223,626) - - - Infrastructure 17,739,258 (17,739,258) - - - - Total depreciable assets 35,320,861 (33,097,235) (2,223,626) - - - Less accumulated depreciation Buildings (13,351,561) 12,373,672 977,889 - - - Infrastructure (2,881,945) 2,881,945 - - - - Total accumulated depreciation (16,233,506) 15,255,617 977,889 - - - Total depreciable assets, net 19,087,355 (17,841,618) (1,245,737) - - - Total fiduciary activities 40,862,147$ (26,204,302)$(1,245,737)$ -$ (10,547,349)$ 2,864,759$ *For additional information on transfers and restatement, see Note 17 and 18 respectively. All depreciation was recorded in the Successor Agency to the Poway Redevelopment Agency private purpose trust fund. 85 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -59- Note 5 – Long-Term Debt A summary of changes in long-term debt for the year ended June 30, 2018: Amount Amount Balance Balance Due Within Due In More June 30, 2017 Additions Reductions June 30, 2018 One Year Than One Year Governmental Activities Certificates of Participation 13,987,299$ -$ (791,322)$ 13,195,977$ 810,432$ 12,385,545$ Compensated Absences 1,553,764 1,558,061 (1,526,120) 1,585,705 1,557,486 28,219 Total governmental activities 15,541,063$ 1,558,061$ (2,317,442)$ 14,781,682$ 2,367,918$ 12,413,764$ Business-Type Activities Compensated Absences 250,148$ 285,122$ (242,854)$ 292,416$ 284,030$ 8,386$ Total business-type activities 250,148$ 285,122$ (242,854)$ 292,416$ 284,030$ 8,386$ Fiduciary Funds Certificates of Participation 430,053$ -$ (430,053)$ -$ -$ -$ Tax Allocation Bonds 163,593,731 - (9,089,143) 154,504,588 8,858,261 145,646,327 Notes Payable 3,193,031 224,154 (78,621) 3,338,564 100,000 3,238,564 Total fiduciary activities 167,216,815$ 224,154$ (9,597,817)$ 157,843,152$ 8,958,261$ 148,884,891$ Classification A. Governmental Activities Long-Term Debt Certificates of Participation at June 30, 2018, consisted of the following: Amount Amount Balance Balance Due Within Due in More June 30, 2017 Additions Reductions June 30, 2018 One Year Than One Year 2005 Certificates of Participation 2,180,000$ -$ (180,000)$ 2,000,000$ 185,000$ 1,815,000$ Bond Premium 18,406 - (3,236) 15,170 2,977 12,193 2012 Certificates of Participation 11,615,000 - (590,000) 11,025,000 605,000 10,420,000 Bond Premium 173,893 - (18,086) 155,807 17,455 138,352 Total Certificates of Participation 13,987,299$ -$ (791,322)$ 13,195,977$ 810,432$ 12,385,545$ Classification 2005 Certificates of Participation In April 2005, the City issued 2005 Refunding Certificates of Participation in the amount of $8,245,000 to refund and defease the City’s outstanding 1995 and 1996 Certificates of Participation. The original 1995 Certificates of Participation were used for several projects such as the City’s pool and Performing Arts Center, while the 1996 Certificates of Participation were used to build the City’s Sheriff Substation. The 2005 Refunding Certificates of Participation consisted of $6,830,000 serial certificates maturing from 2005 through 2020 in annual installments of $305,000 to $610,000 and term certificates of $1,415,000 maturing in 2026. Interest is payable semi-annually on February 1 and August 1 at rates ranging from 3.00% to 4.50%. Certificates maturing on or after August 1, 2016 are subject to optional redemption in whole or in part, on any date beginning August 1, 2015. Certificates maturing on August 1, 2026 are subject to mandatory redemptions on August 1 of each year beginning August 1, 2021. At February 1, 2012, $2,335,000 was transferred to the Successor Agency. 86 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -60- Note 5 – Long-Term Debt (Continued) A. Governmental Activities Long-Term Debt (Continued) 2005 Certificates of Participation (Continued) At June 30, 2018, the City’s portion of the outstanding balance of the 2005 Certificates of Participation was $2,000,000. The annual requirements to amortize the City portion of Certificates of Participation outstanding at June 30, 2018, are as follows: Year Ending June 30, Principal Interest Total 2019 185,000$ 83,875$ 268,875$ 2020 195,000 76,153 271,153 2021 205,000 67,903 272,903 2022 210,000 58,950 268,950 2023 220,000 49,275 269,275 2024 - 2027 985,000 91,238 1,076,238 Total 2,000,000$ 427,394$ 2,427,394$ 2012 Certificates of Participation On October 5, 2012, the City issued 2012 Refunding Certificates of Participation to provide for the defeasance and refunding of 2003 Certificates of Participation, to fund a reserve account for the Certificates, and to pay costs incurred in connection with executing and delivering the Certificates. The City leased certain existing property to the Public Financing Authority (the “PFA”) pursuant to a Site and Facilities Lease dated as of January 1, 2003, as amended by an Amendment to Site and Facilities Lease, dated as of October 1, 2012. The Certificates are payable solely from and secured by certain lease payments to be made by the City to the PFA. The interest with respect to the Certificates is payable on January 1 and July 1 of each year, commencing January 1, 2013 at rates ranging from 2.00% to 3.25%. At June 30, 2018, the outstanding balance of the 2012 Certificates of Participation was $11,025,000. The annual requirements to amortize Certificates of Participation outstanding at June 30, 2018, are as follows: Year Ending June 30, Principal Interest Total 2019 605,000$ 326,870$ 931,870$ 2020 615,000 314,770 929,770 2021 630,000 300,933 930,933 2022 645,000 283,608 928,608 2023 665,000 264,256 929,256 2024 - 2028 3,635,000 1,009,588 4,644,588 2029 - 2033 3,330,000 388,383 3,718,383 2034 900,000 29,250 929,250 Total 11,025,000$ 2,917,658$ 13,942,658$ 87 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -61- Note 5 – Long-Term Debt (Continued) B. Fiduciary Funds Long Term Debt Certificates of Participation Certificates of Participation at June 30, 2018, consisted of the following: Amount Amount Balance Balance Due Within Due in More June 30, 2017 Additions Reductions June 30, 2018 One Year Than One Year 2005 Certificates of Participation 430,000$ -$ (430,000)$ -$ -$ -$ Bond Premium 53 - (53) - - - Total Certificates of Participation 430,053$ -$ (430,053)$ -$ -$ -$ Classification 2005 Certificates of Participation In April 2005, the City issued 2005 Refunding Certificates of Participation in the amount of $8,245,000 to refund and defease the City’s outstanding 1995 and 1996 Certificates of Participation. The original 1995 Certificates of Participation were used for several projects such as the City’s pool and Performing Arts Center, while the 1996 Certificates of Participation were used to build the City’s Sheriff Substation. The 2005 Refunding Certificates of Participation consisted of $6,830,000 serial certificates maturing from 2005 through 2020 in annual installments of $305,000 to $610,000 and term certificates of $1,415,000 maturing in 2026. Interest is payable semi-annually on February 1 and August 1 at rates ranging from 3.00% to 4.50%. Certificates maturing on or after August 1, 2016 are subject to optional redemption in whole or in part, on any date beginning August 1, 2015. Certificates maturing on August 1, 2026 are subject to mandatory redemptions on August 1 of each year beginning August 1, 2021. At February 1, 2012, $2,335,000 was transferred to the Successor Agency. At June 30, 2018, the Successor Agency’s portion of the outstanding balance of the 2005 Certificates of Participation was paid off in full. 88 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -62- Note 5 – Long-Term Debt (Continued) B. Fiduciary Funds Long Term Debt (Continued) Tax Allocation Bonds Tax Allocation Bonds at June 30, 2018, consisted of the following: Amount Amount Balance Balance Due Within Due in More June 30, 2017 Additions Reductions June 30, 2018 One Year Than One Year 2015A Tax Allocation Bonds 133,110,000$ -$ -$ 133,110,000$ 1,885,000$ 131,225,000$ Bond Premium 18,188,731 - (1,884,143) 16,304,588 1,883,261 14,421,327 2015B Tax Allocation Bonds 12,295,000 - (7,205,000) 5,090,000 5,090,000 - Total Tax Allocation Bonds 163,593,731$ -$ (9,089,143)$ 154,504,588$ 8,858,261$ 145,646,327$ Classification 2015A Tax Allocation Bonds On July 1, 2015, the Successor Agency to the Poway Redevelopment Agency (Successor Agency) issued 2015A Tax Allocation Bonds in the amount of $133,110,000 for the purpose of effecting a refunding of the Poway Redevelopment Agency’s outstanding Paguay Redevelopment Project Tax Allocation Refunding Bonds, Series 2000, Series 2001 and Series 2003. The bonds are dated July 1, 2015 and mature on June 15, 2033 in the principal amount and bear interest from 4% to 5%. Interest is payable semi-annually on June 15 and December 15 through 2033. The bonds maturing on December 15, 2026, December 15, 2027, June 15, 2028, December 15, 2028 and on December 15, 2029 are subject to optional redemption prior to maturity at the option of the Successor Agency. The Successor Agency reduced its aggregate debt service payments by $50,776,463 which resulted in an economic gain of $25,436,195. The Successor Agency has pledged all revenues and all of the monies in the Redevelopment Obligation Retirement Fund and all monies in the Debt Service Fund. No funds or properties, other than those previously stated, shall be pledged for the payment of the principal or interest or redemption premium on the bonds. As of June 30, 2018, the balance of the 2015A Tax Allocation Bonds was $133,110,000. 89 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -63- Note 5 – Long Term Debt (Continued) B. Fiduciary Funds Long Term Debt (Continued) Tax Allocation Bonds (Continued) 2015A Tax Allocation Bonds (Continued) The annual requirements to amortize the bonds outstanding at June 30, 2018 are as follows: Year Ending June 30, Principal Interest Total 2019 1,885,000$ 3,300,525$ 5,185,525$ 2020 7,190,000 6,454,450 13,644,450 2021 7,545,000 6,108,625 13,653,625 2022 7,935,000 5,726,500 13,661,500 2023 8,345,000 5,324,750 13,669,750 2024 - 2028 47,845,000 19,711,625 67,556,625 2029 - 2033 40,835,000 7,032,125 47,867,125 2034 11,530,000 434,125 11,964,125 Total 133,110,000$ 54,092,725$ 187,202,725$ 2015B Tax Allocation Bonds On July 1, 2015, the Successor Agency to the Poway Redevelopment Agency (Successor Agency) issued the 2015B Tax Allocation Bonds in the amount of $26,845,000 for the purpose of effecting a refunding of the Poway Redevelopment Agency’s outstanding Paguay Redevelopment Project Tax Allocation Refunding Bonds, Series 2007. The bonds are dated July 1, 2015 and mature on June 15, 2019 in the principal amount of $26,845,000 and bears interest from 0.50% to 2.35%. Interest is paid semi-annually on June 15 and December 15 through 2033. The bonds are not subject to optional redemption prior to maturity. The Successor Agency reduced its aggregate debt service payments by $15,094,128 which resulted in an economic gain of $3,786,053. The Successor Agency has pledged all revenues and all of the monies in the Redevelopment Obligation Retirement Fund and all monies in the Debt Service Fund. No funds or properties, other than those previously stated, shall be pledged for the payment of the principal or interest on the bonds. 90 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -64- Note 5 – Long Term Debt (Continued) B. Fiduciary Funds Long Term Debt (Continued) Tax Allocation Bonds (Continued) 2015B Tax Allocation Bonds (Continued) As of June 30, 2018, the balance of the 2015B Tax Allocation Bonds was $5,090,000. The annual requirements to amortize the bonds outstanding at June 30, 2018 are as follows: Year Ending June 30, Principal Interest Total 2019 5,090,000$ 73,637$ 5,163,637$ Total 5,090,000$ 73,637$ 5,163,637$ Notes Payable Notes payable at June 30, 2018, consisted of the following: Amount Amount Balance Balance Due Within Due in More June 30, 2017 Additions Reductions June 30, 2018 One Year Than One Year Mossy Nissan 3,193,031$ 224,154$ (78,621)$ 3,338,564$ 100,000$ 3,238,564$ Total Notes Payable 3,193,031$ 224,154$ (78,621)$ 3,338,564$ 100,000$ 3,238,564$ Classification The former Poway Redevelopment Agency (the “Agency”) entered into an Owner Participation Agreement with AZ Poway LLC (dba Mossy Nissan) that went into effect upon issuance of the certificate of completion for the Mossy Nissan automobile dealership on July 11, 2003. The Agency purchased an operating covenant for $1,900,000 that accrues interest at the rate of 7% per annum. Annual payment of the operating covenant is based on 50% of the net new sales in effect until (i) the purchase price and accrued interested is paid in full, or (ii) the fifteenth annual payment is made. The operating covenant is deemed paid in full after the fifteenth annual payment is made, and all remaining balances, including accrued interest, are forgiven. The outstanding balance in the amount of $2,598,406 was transferred to the Successor Agency on February 1, 2012 due to the dissolution of the Agency. The remaining balance on the notes was $3,338,564 at June 30, 2018. 91 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -65- Note 5 – Long Term Debt (Continued) C. Compensated Absences This liability represents the total unpaid vacation and compensatory time earned by employees of the City. Since this amount is paid to the employee upon termination of employment, there is no fixed payment schedule for earned but unpaid compensated absences. The compensated absences are predominately associated with the General Fund, Water Fund and Sewer Fund. At June 30, 2018, the outstanding balance of governmental activities and business-type activities compensated absences were $1,585,705 and $292,416, respectively. Note 6 – Pension Plan Summary The City currently has a total of two pension plans administered by CalPERS and one retirement enhancement plan administered by PARS. The pension plans consist of a miscellaneous agent plan and a cost-sharing safety plan (see Note 7 for a full description of the plans). The retirement enhancement plan serves as a supplemental defined benefit pension plan (see Note 8 for a full description of the plan). The summary of the pension related liability, deferred inflows of resources and deferred outflows of resources are as follows: Miscellaneous Safety PARS Total Deferred Outflows of Resources - Pension related 7,278,674$ 4,749,090$ 81,296$ 12,109,060$ Deferred Inflows of Resources - Pension related (411,833) (408,422) (151,721) (971,976) Pension Liability 32,661,161 15,401,317 1,698,223 49,760,701 Note 7 – Defined Benefit Pension Plans – CalPERS A. General Information about the Pension Plans Plan Descriptions The Plans consist of an agent multiple-employer defined benefit pension plan and a public agency cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). 92 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -66- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) A. General Information about the Pension Plans (Continued) Plan Descriptions (Continued) Miscellaneous – Agent, Multiple-Employer Defined Benefit Pension Plan A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the plan’s June 30, 2016, Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. Safety – Cost Sharing, Multiple-Employer Defined Benefit Pension Plan All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other). Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors one safety plan in safety risk pools. Benefit provisions under the Plan are established by State statute and the City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 93 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -67- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) A. General Information about the Pension Plans (Continued) Benefits Provided, (Continued) The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board. The Plans’ provisions and benefits in effect at June 30, 2018, are summarized as follows: On or After Prior to January 1, 2011 Prior On or After Hire date January 1, 2011 to January 1, 2013 January 1, 2013 Benefit formula 2.0% @ 55 2.0% @ 60 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 63 & Up 50 - 63 & Up 52-67 & Up Monthly benefits, as a % of eligible compensations 1.426% to 2.418% 1.092% to 2.418% 1.0% or 2.5% Required employee contribution rates 7.000% 7.000% 6.250% Required employer contribution rates 21.612% 21.612% 21.612% On or After Prior to January 1, 2011 Prior On or After Hire date January 1, 2011 to January 1, 2013 January 1, 2013 Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 & Up 50-55 & Up 50-57 & Up Monthly benefits, as a % of eligible compensations 3.0% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.000% 9.000% 11.500% Required employer contribution rates 18.615% 16.842% 11.990% Miscellaneous Plans Safety Plan 94 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -68- Note 7 – Defined Benefit Pension Plans – CalPERS A. General Information about the Pension Plans (Continued) Employees Covered At June 30, 2016 (valuation date), the following employees were covered by the benefit terms: Miscellaneous Plan Inactive employees or beneficiaries currently receiving benefits 224 Inactive employees entitled to but not yet receiving benefits 206 Active employees 171 Total 601 Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. Miscellaneous – Agent, Multiple-Employer Defined Benefit Pension Plan The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2018, were $2,452,302. Safety – Cost Sharing, Multiple-Employer Defined Benefit Pension Plan For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2018, were $1,517,719. 95 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -69- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) A. General Information about the Pension Plans (Continued) Safety – Cost Sharing, Multiple-Employer Defined Benefit Pension Plan The actual employer payments of $1,340,317 made to CalPERS by the City during the measurement period ended June 30, 2017, differed from the City’s proportionate share of the employer’s contributions of $1,450,314 by $109,997, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan. B. Net Pension Liability The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2017, using an annual actuarial valuation as of June 30, 2016 rolled forward to June 30, 2017, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is as follows. Actuarial Methods and Assumptions Used to Determine Total Pension Liability Valuation Date June 30, 2016 Measurement Date June 30, 2017 Actuarial Cost Method Entry Age Normal Asset Valuation Method:Market Value of Assets Actuarial Assumptions: Discount Rate 7.15% Inflation 2.75% Salary Increase (1)3.3% - 14.2% Investment Rate of Return (2)7.65% Mortality Rate Table (3)Derived using CalPERS' membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.75% until purchasing power protection allowance floor on purchasing power applies, 2.75% thereafter (1) Annual increase vary by category, entry age, and duration of service (2) Net of pension plan investment and administrative expenses; includes inflation (3) The mortality table used was developed based on CalPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on the table, please refer to the 2014 experience study report. All other actuarial assumptions used in the June 30, 2016, valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications. 96 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -70- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) B. Net Pension Liability (Continued) Change of Assumptions In fiscal year 2016-17, the financial reporting discount rate for the PERF C was lowered from 7.65 percent to 7.15 percent. Discount Rate The discount rate used to measure the total pension liability was 7.15 percent and reflects the long-term expected rate of return for the Plan net of investment expenses and without reduction for administrative expenses. To determine whether the municipal bond rate should be used in the calculation of the discount rate for public agency plans (including PERF C), the amortization and smoothing periods adopted by the Board in 2013 were used. For the Plan, the crossover test was performed for a miscellaneous agent plan and a safety agent plan selected as being more at risk of failing the crossover test and resulting in a discount rate that would be different from the long-term expected rate of return on pension investments. Based on the testing of the plans, the tests revealed the assets would not run out. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability for PERF C. The crossover test results can be found on CalPERS’ website, at www.calpers.ca.gov. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The following table reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the CalPERS Board effective on July 1, 2015. 97 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -71- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) B. Net Pension Liability (Continued) Discount Rate (Continued) Asset Class New Strategic Allocation Real Return Years 1 - 101 Real Return Year 11+2 Global Equity 47.0% 4.90% 5.38% Global Fixed income 19.0% 0.80% 2.27% Inflation Sensitive 6.0%0.60% 1.39% Private Equity 12.0% 6.60% 6.63% Real Estate 11.0% 2.80% 5.21% Infrastructure and Forestland 3.0%3.90% 5.36% Liquidity 2.0% (0.40%) (0.90%) Total 100.0% 1 An expected inflation of 2.5% used for this period 2 An expected inflation of 3.0% used for this period Pension Plan Fiduciary Net Position Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value. The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and Other Post-Employment Benefits (OPEB) expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Comprehensive Annual Financial Report closing and final reconciled reserves. 98 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -72- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) C. Net Pension Liability and Proportionate Share of Net Pension Liability Miscellaneous Plan The following table shows the Plan’s change in net pension liability over the measurement period. Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (c) = (a) - (b) Balance at: 6/30/2016 (VD)100,303,363$ 71,519,775$ 28,783,588$ Changes Recognized for the Measurement Period: • Service Cost 1,785,822 - 1,785,822 • Interest on the Total Pension Liability 7,456,135 - 7,456,135 • Changes of Benefit Terms • Changes of Assumptions 6,085,867 - 6,085,867 • Differences between Expected and Actual Experience (471,057) - (471,057) • Net Plan to Plan Resource Movement - - - • Contributions - Employer - 2,311,817 (2,311,817) • Contributions - Employee - 806,615 (806,615) • Net Investment Income - 7,966,356 (7,966,356) • Benefit Payments, including Refunds of - - - Employee Contributions (5,058,914) (5,058,914) - • Administrative Expense - (105,594) 105,594 Net Changes during 2016-17 9,797,853 5,920,280 3,877,573 Balance at: 6/30/2017 (MD)110,101,216$ 77,440,055$ 32,661,161$ Valuation Date (VD), Measurement Date (MD). Safety Plan The following table shows the Plan’s proportionate share of the net pension liability over the measurement period. Plan Total Pension Liability (a) Plan Fiduciary Net Position (b) Plan Net Pension Liability (c) = (a) - (b) Balance at: 6/30/2016 (VD) 52,189,011$ 38,848,860$ 13,340,151$ Balance at: 6/30/2017 (MD) 57,427,165$ 42,025,848$ 15,401,317$ Net changes during 2016-17 5,238,154$ 3,176,988$ 2,061,166$ Increase (Decrease) Valuation Date (VD), Measurement Date (MD) 99 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -73- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) C. Net Pension Liability and Proportionate Share of Net Pension Liability (Continued) The City’s net pension liability for each of the cost sharing, multiple-employer Plans is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2017, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2016, rolled forward to June 30, 2017, using standard update procedures. The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website under Forms and Publications, at www.calpers.ca.gov. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2016, and 2017, was as follows: Safety Plans Proportionate Share of NPL - June 30, 2016 0.25757% Proportionate Share of NPL - June 30, 2017 0.25775% Change - Increase 0.00018% Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of each Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate: Discount Rate - 1% (6.15%) Current Discount Rate (7.15%) Discount Rate + 1% (8.15%) Miscellaneous Plans' Net Pension Liability 47,271,229$ 32,661,161$ 20,566,230$ Safety Plans' Net Pension Liability 23,436,358$ 15,401,317$ 8,833,073$ Subsequent Events There were no subsequent events that would materially affect the results presented in this disclosure. Recognition of Gains and Losses Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. 100 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -74- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) C. Net Pension Liability and Proportionate Share of Net Pension Liability (Continued) Recognition of Gains and Losses (Continued) The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss: Difference between projected and actual earnings 5 year straight-line amortization All other amounts Straight-line amortization over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period For the agent, multiple employer plan, the expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). For the cost sharing, multiple employer plan, the EARSL is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost Sharing Multiple-Employer Plan (PERF C). The EARSL for the miscellaneous agent plan for the June 30, 2017, measurement date is 2.7 years, which was obtained by dividing the total service years of 1,630 (the sum of remaining service lifetimes of the active employees) by 601 (the total number of participants: active, inactive, and retired). Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund. The EARSL for the Plan for the 2016-17 measurement period is 3.8 years, which was obtained by dividing the total service years of 490,088 (the sum of remaining service lifetimes of the active employees) by 130,595 (the total number of participants: active, inactive, and retired). Note that inactive employees and retirees have remaining service lifetimes equal to 0. Also note that total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund. 101 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -75- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions Miscellaneous Plan As of the start of the measurement period (July 1, 2016), the net pension liability is $28,783,588. For the measurement period ending June 30, 2017, (the measurement date), the City incurred a pension expense of $4,974,832 for the Plan. A complete breakdown of the pension expense is as follows: Description Amount Service Cost 1,785,822$ Interest on the Total Pension Liability 7,456,135 Changes of Benefit Terms - Recognized Changes of Assumptions 1,815,348 Recognized Differences between Expected and Actual Experience (292,626) Net Plan to Plan Resource Movement - Employee Contributions (806,615) Projected Earnings on Pension Plan Investments (5,027,236) Recognized differences between Expected and Actual Earnings on Plan Investments (61,590) Administrative Expenses 105,594 Total Pension Expense 4,974,832$ Safety Plan As of the start of the measurement period (July 1, 2016), the net pension liability for the safety plan is $13,340,151. For the measurement period ending June 30, 2017 (the measurement date), the City incurred a pension expense of $2,283,241 for the safety plan.  As of June 30, 2018, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Resources Deferred Inflows of Resources Deferred Outflows of Resources Deferred Inflows of Resources Differences between Expected and Actual Experience -$ (411,833)$ 167,710$ (43,727)$ Changes of Assumptions 3,831,842 - 2,432,218 (186,606) Net Difference between Projected and Actual Earnings on Pension Plan Investments 994,530 - 530,319 - Change in Employer's Proportion - - 101,124 - Difference in Actual vs Projected Contributions - - - (178,089) Pension Contributions Subsequent to Measurement Date 2,452,302 - 1,517,719 - 7,278,674$ (411,833)$ 4,749,090$ (408,422)$ Miscellaneous Safety 102 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -76- Note 7 – Defined Benefit Pension Plans – CalPERS (Continued) D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions, (Continued) These amounts above are net of outflows and inflow recognized in the 2016-17 measurement period expense. $2,452,302 and $1,517,719 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the upcoming fiscal year. Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows: Measurement Period Ended June 30, Miscellaneous Safety 2018 1,902,725$ -$ 2019 2,663,710 711,932 2020 435,927 1,486,243 2021 (587,823) 935,082 2022 - (310,308) Thereafter Deferred Outflows/(Inflows) of Resources, Net E. Payable to the Pension Plan At June 30, 2018, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2018. Note 8 – Defined Benefit Pension Plan – Retirement Enhancement Plan A. General Information about the Pension Plan Plan Description The Plan is a single-employer, agent, supplemental employee defined benefit pension plan (the plan II) administered by the Public Agency Retirement Services (PARS) Phase II Systems. A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not account purposes), and membership information are listed in the July 1, 2017, Annual Actuarial Valuation Report. Details of the benefits provided can be obtained from the actuarial valuation reports. PARS issues a publicly available financial report that includes financial statement and required supplementary information for the plan II. That report may be obtained by writing to PARS, 3961 MacArthur Boulevard, Suite 200, Newport Beach, California, 92660. 103 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -77- Note 8 – Defined Benefit Pension Plan – Retirement Enhancement Plan (Continued) A. General Information about the Pension Plan (Continued) Benefits provided The Retirement Enhancement Plan provides a benefit equal to the PARS "2.7% at 55" plan factor (formula is a static 2.7% at age 55 and older), less the CalPERS "2.0% at 55" plan factor times final compensation for all years of benefit service. The Plan provides a pre-retirement death benefit for the eligible surviving spouse of any active employee who dies after attaining the minimum age requirement and completing the required years of service for the supplemental retirement benefit. The benefit will be equal to the participant’s retirement benefit, actuarially reduced as if the participant had retired and elected a 100% joint-and-survivor annuity and paid as an annuity over the lifetime of the surviving spouse. There is no death benefit payable if there is no surviving spouse. City Councilmembers who do not meet eligibility requirements at termination of employment, but will meet the eligibility requirements at a later date, will be eligible for a deferred retirement benefit upon meeting all the requirements including retirement under CalPERS. The Plan is closed to all employees hired on or before January 9, 2012 ("soft-freeze"). The Plan’s provisions and benefits in effect at June 30, 2018 (measurement date), are summarized as follows: Hire date Benefit formula Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates 13.54% none 21.42% 55 Supplemental On or before January 9, 2012 2.7% @ 55 less CalPERS 2.0% @ 55 from date of hire life only annuity Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through PARS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. For the measurement period ended June 30, 2017 (the measurement date), the employer’s contribution rate is 21.42 percent of annual payroll. Employer contribution rates may change if plan contracts are amended. Employer Contributions for the measurement period ended June 30, 2018, are $1,560,917. 104 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -78- Note 8 – Defined Benefit Pension Plan – Retirement Enhancement Plan (Continued) B. Net Pension Liability The City’s net pension liability for the Retirement Enhancement Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2018, using an annual actuarial valuation as of June 30, 2018. A summary of principal assumptions and methods used to determine the net pension liability is as follows. Actuarial Methods and Assumptions Used to Determine Total Pension Liability Supplemental Valuation Date June 30, 2017 Measurement Date June 30, 2018 Actuarial Cost Method Entry Age Normal Asset Valuation Method None Actuarial Assumptions: Discount Rate 7.00% Inflation 2.75% Salary Increases (1)3.5% - 9.90% Investment Rate of Return 7.00% Cost of Living Adjustment 2.00% Mortality Rate Table (1) Includes inflation. Graded based on years of service, 3.50% after 30 years of service. Pre-retirement: CalPERS Miscellaneous Non-Industrial Rates. Post-retirement: CalPERS 1997-2011 Healthy Retiree Tables (sex distinct) projected using Scale AA and base year of 2008. Discount rate GASB 67 and 68 generally require that a blended discount rate be used to measure the Total Pension Liability (the Actuarial Accrued Liability calculated using the Individual Entry Age Normal Cost Method). The long-term expected return on plan investments may be used to discount liabilities to the extent that the plan's Fiduciary Net Position (fair market value of assets) is projected to cover benefit payments and administrative expenses. A 20-year high quality (AA/Aa or higher) municipal bond rate must be used for periods where the Fiduciary Net Position is not projected to cover benefit payments and administrative expenses. Determining the discount rate under GASB 67 and 68 will often require that the actuary perform complex projections of future benefit payments and asset values. 105 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -79- Note 8 – Defined Benefit Pension Plan – Retirement Enhancement Plan (Continued) B. Net Pension Liability (Continued) Discount rate (continued) GASB 67 and 68 (paragraph 29) do allow for alternative evaluations of projected solvency, if such evaluation can reliably be made. GASB does not contemplate a specific method for making an alternative evaluation of sufficiency; it is left to professional judgment. The following circumstances justify an alternative evaluation of sufficiency for the City of Poway:  The City of Poway has at least a 5-year history of paying at least 100% of the Actuarially Determined Contribution (previously termed the Annual Required Contribution).  The Actuarially Determined Contribution is based on a closed amortization period, which means that payment of the Actuarially Determined Contribution each year will bring the plan to a 100% funded position by the end of the amortization period.  GASB 67 and 68 specify that the projections regarding future solvency assume that plan assets earn the assumed rate of return and there are no future changes in the plan provisions or actuarial methods and assumptions, which means that the projections would not reflect any adverse future experience which might impact the plan's funded position. Based on these circumstances, the City believes that the detailed depletion date projections outlined in GASB 67 and 68 will show that the Fiduciary Net Position is always projected to be sufficient to cover benefit payments and administrative expenses. June 30, 2017 June 30, 2018 Discount rate 7.00% 7.00% Long-term expected rate of return, net of investment expense 7.00% 7.00% Municipal bond rate N/A N/A The plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability is equal to the long-term expected rate of return. Pension Plan Fiduciary Net Position Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in the City’s GASB 68 Employer Accounting Information report. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Investments are reported at fair value. 106 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -80- Note 8 – Defined Benefit Pension Plan – Retirement Enhancement Plan (Continued) C. Changes in the Net Pension Liability The following table shows the changes in net pension liability recognized over the measurement period. Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (c) = (a) - (b) Balances as of June 30, 2017 17,165,512$ 14,340,771$ 2,824,741$ Changes for the year: • Service Cost 228,468 - 228,468 • Interest on the Total Pension Liability 1,191,080 - 1,191,080 • Effect of Plan Changes - - - • Effect of Economic Demographic Gains or Losses 52,208 - 52,208 • Effect of Assumptions Changes or Inputs - - - • Benefit Payments (876,349) (876,349) - • Employer Contributions - 1,560,917 (1,560,917) • Member Contributions - - - • Net Investment Income - 1,062,788 (1,062,788) • Administrative Expenses - (25,431) 25,431 Net Changes during 2017-18 595,407 1,721,925 (1,126,518) Balance as of June 30, 2018 17,760,919$ 16,062,696$ 1,698,223$ Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City of Poway Retirement Enhancement Plan, calculated using the discount rate of 7%, as well as what Plan's net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than the current rate. Discount Rate - 1% (6.00%) Current Discount Rate (7.00%) Discount Rate + 1% (8.00%) Net Pension Liability 3,815,007$ 1,698,223$ (202,500)$ 107 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -81- Note 8 – Defined Benefit Pension Plan – Retirement Enhancement Plan (Continued) C. Changes in the Net Pension Liability (Continued) Subsequent Events There were no subsequent events that would materially affect the results presented in this disclosure. Recognition of Gains and Losses Investment gains/losses are recognized in pension expense over a period of five years; economic/demographic gains/losses and assumption changes or inputs are recognized over the average remaining service life for all active and inactive members. D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2017), the net pension liability is $2,824,741. For the measurement period ending June 30, 2017 (the measurement date), the City incurred a pension expense of $505,960 for the Plan. As of June 30, 2018, the City has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Resources Deferred Inflows of Resources Differences between Expected and Actual Experience 59,950$ (151,721)$ Changes of Assumptions - - Net Difference between Projected and Actual Earnings on Pension Plan 21,346 - Pension Contributions Subsequent to Measurement Date - - Total 81,296$ (151,721)$ 108 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -82- Note 8 – Defined Benefit Pension Plan – Retirement Enhancement Plan (Continued) D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued) Amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows: Measurement Period Ended Deferred Outflows/(Inflows) of Resources, Net June 30, PARS 2019 87,514$ 2020 5,761 2021 (137,969) 2022 (25,731) 2023 - Thereafter - E. Payable to the Pension Plan At June 30, 2018, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2018. Note 9 – City and Housing Authority Rehabilitation Loan Programs Housing Rehabilitation Loan Program There are two types of housing rehabilitation loans. Forgivable rehabilitation loans are forgiven at a rate of 10% per year given all loan covenants are met. 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 forgivable rehabilitation loans at June 30, 2018 is $0, and the balance of the non-forgivable rehabilitation loans at June 30, 2018 is $102,128. BEGIN Program Loans This program is sponsored by a State of California grant to aid first-time buyers in the purchase of affordable housing in the City of Poway. These loans have a thirty year term with a one percent interest rate. If the property is transferred or sold within five years the loan must be repaid. After five years, if the property is transferred or sold the loan must be assumed by the buyer for the remaining term. At the end of the thirty years the loan must be repaid with principal and interest. Per the grant terms, loan repayments must be re-loaned. 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 BEGIN loans, including accrued interest, at June 30, 2018 is $1,660,509. 109 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -83- Note 9 – City and Housing Authority Rehabilitation Loan Programs (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 $3,907,632. 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 $36,698,434. Note 10 – Risk Management The City is a member of the California Joint Powers Insurance Authority (“Authority”). The Authority is composed of 117 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section 6500 et. seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other coverage. The Authority’s pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9-member Executive Committee. The audited Financial Statements can be obtained from the City of Poway. No settlements have exceeded the City’s insurance coverage for each of the past three years. 110 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -84- Note 10 – Risk Management (Continued) Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. The total funding requirement for self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk sharing pool. Additional information regarding the cost allocation methodology is provided below. A. General Liabilities In the liability program claims are pooled separately between police and non-police exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Costs of covered claims for subsidence losses have a sub-limit of $40 million per occurrence. B. Workers’ Compensation In the workers’ compensation program claims are pooled separately between public safety (police and fire) and non-public safety exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. 111 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -85- Note 10 – Risk Management (Continued) B. Workers’ Compensation (continued) For 2017-18 the Authority’s pooled retention is $2 million per occurrence, with reissuance to statutory limits under California Workers’ Compensation Law. Employer’s liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reissuance policy, and Employer’s Liability losses form $5 million to $10 million are pooled among members. C. Pollution Legal Liability Insurance The City of Poway participates in the pollution legal liability insurance program (formerly called environmental insurance) which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Poway. Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2017 through July 1, 2020. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy. D. Property Insurance The City of Poway participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Poway property is currently insured according to a schedule of covered property submitted by the City of Poway to the Authority. City of Poway property currently has all- risk property insurance protection in the amount of $170,388,689. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. E. Crime Insurance The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retroactive adjustments. At June 30, 2018, no liability was recorded in the accompanying basic financial statements. 112 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -86- Note 11 – Joint Venture The City is a member of the Regional Solid Waste Association Joint Powers Authority (“JPA”). The JPA was formed on September 1, 1997 by the cities of Del Mar, Encinitas, National City, Poway, Solana Beach and Vista to provide stable, long-term, cost effective options for all aspects of regional solid waste disposal. Each member provides a proportionate percentage of revenue to cover all costs related to the obligations and liabilities of the JPA when they become due and payable. In the event of dissolution of the JPA, any money or assets in possession of the Regional Solid Waste Association after the payment of all liabilities, costs, expenses and charges shall be distributed to the member agencies in proportion to their contributions determined as of the time of termination. The activities of the JPA are supervised by a board consisting of one elected member of the legislative body of each of the member agencies. The City of Escondido joined the JPA as a special contract party for the purpose of working on Regional Household Hazardous Waste issues. Summarized unaudited information of the JPA for the fiscal year ended June 30, 2018 is as follows: Total Assets 479$ Total Liabilities 7$ Total Equity 472$ Total Revenues 315$ Total Expenses 329$ Net Increase in Fund Equity (14)$ Amounts in Thousands City’s share of the JPA’s assets and liabilities are not available. Separate financial statements of the JPA are available at the City of Poway. Note 12 – Deficit Net Position At June 30, 2018, the following funds had deficit net position: Fund Type Fund Deficit Special Revenue Fund 800 MHz Communication System (15,860)$ Fiduciary Fund Successor Agency to the Poway Redevelopment Agency (151,924,846)$ 113 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -87- Note 12 – Deficit Net Position (Continued) Successor Agency to the Poway Redevelopment Agency - The Successor Agency to the Poway Redevelopment Agency Private Purpose Trust fund had an accumulated deficit of $(151,924,844), which resulted from the issuance of tax allocation bonds that were intended to be repaid by the former Poway Redevelopment Agency’s future property tax increment revenue. Now that the Redevelopment Agency has been dissolved, the Successor Agency expects to receive sufficient Redevelopment Property Tax Trust Fund distributions through the remaining life of the bonds to fully fund their repayment. The 800 MHz Special Revenue fund had a deficit balance of $(15,860) which resulted from an inter-fund loan from the Internal Service fund which was used for its share of payments to the County of San Diego for system infrastructure improvements. The collection of assessments in future years will be sufficient to eliminate the deficit. Note 13 – Property Taxes Property taxes are levied on March 1 and are payable in two installments: November 1 and February 1 of each year. Property taxes become delinquent on December 10 and April 10, for the first and second installments, respectively. The lien date is January 1. The County of San Diego, California (the “County”) bills and collects property taxes and remits them to the City according to a payment schedule established by the County. The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the property tax rate no more than 2% per year. The City receives a share of this basic tax levy proportionate to what it received during the years 1980-1981. Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date are not considered available as a resource that can be used to finance the current year operations of the City and, therefore, are not recorded as revenue until collected. No allowance for doubtful accounts was considered necessary. Note 14 – Contingent Liabilities and Commitments A. Litigation The City is a defendant in certain legal actions arising in the normal course of operations. The accompanying basic financial statements reflect a liability for the probable amounts of loss associated with these claims. 114 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -88- Note 14 – Contingent Liabilities and Commitments (Continued) B. Grants The City participates in a number of programs that are fully or partially funded by grants received from federal, state, and county governments. Expenditures financed by grants are subject to audit by the appropriate grantor agency. If expenditures are disallowed due to non- compliance with grant program regulations, the City may be required to reimburse the grantor agency. As of June 30, 2018, significant amounts of grant expenditures have not been audited by the grantor agencies, but the City believes that disallowed expenditures, if any, based on subsequent audits will not have a material effect on any of the individual governmental funds or the City’s overall financial position. C. Construction Various construction projects were in progress at June 30, 2018 with an estimated cost to complete of approximately $14,750,336 in all fund types. D. Significant Encumbrances Encumbrances represent purchase orders, contracts or other commitments for the expenditure of monies. However, because these commitments will be honored in subsequent years, they do not constitute an expenditure or liability for financial statement purposes. At fiscal year-end, the City had the following significant encumbrances. Special General Enterprise Revenue Purpose Fund Funds Funds Total Water Projects -$ 819,876$ -$ 819,876$ Sewer Projects - 78,111 - 78,111 Drainage Projects 88,000 - - 88,000 Street Projects 2,365,929 482,808 - 2,848,737 Computer Equipment and Software 169,905 - - 169,905 Vehicles 1,339,948 - - 1,339,948 Facilities 2,308,594 - - 2,308,594 Professional Services 107,221 - 3,401 110,622 Total Outstanding Encumbrances 6,379,597$ 1,380,795$ 3,401$ 7,763,793$ E. Other Matters As of June 30, 2018, in the opinion of City management, there were no additional outstanding matters that would have a significant effect on the financial position of the funds of the City. 115 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -89- Note 15 – Commitments Under Developer Agreements On April 1, 1999, the former Poway Redevelopment Agency (the “Agency”) entered into an Owner Participation Agreement with a developer with regard to certain parcels of real estate located in the Project Area within the boundaries of Community Facilities District (“CFD”) No. 88-1. In order to provide for the funding of certain public improvements associated with the project, the Agency will pay the developer on each annual payment date, an amount equal to gross property tax increment allocated to and received by the Agency with respect to the site, less the housing set-aside and the County and City administrative charges for the previous fiscal year ending June 30 preceding the annual payment date. 116 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -90- Note 16 – Fund Balances Classification The City’s fund balances at June 30, 2018 are tabulated below by fund types. Total Housing Non-Major General Authority Governmental Fund Fund Funds Total Nonspendable: Prepaid Items 121,433$ -$ -$ 121,433$ Inventories 140,207 - - 140,207 Land held for resale 5,367,000 - - 5,367,000 Notes Receivable 10,010,396 - - 10,010,396 Total nonspendable 15,639,036 - - 15,639,036 Restricted: Debt Service Payments - - 535,900 535,900 Drainage - - 2,930,941 2,930,941 Fire Protection - - 125,248 125,248 Grants - - 294,732 294,732 Housing - 2,771,447 148,847 2,920,294 Maintenance Districts - - 7,829,104 7,829,104 Other Purposes - - 2,622,300 2,622,300 Parks and Recreation - - 590,313 590,313 Streets - - 1,915,188 1,915,188 Transportation - - 877,455 877,455 Total restricted - 2,771,447 17,870,028 20,641,475 Committed: Economic Volatility 6,440,524 - - 6,440,524 Extreme Events 12,881,059 - - 12,881,059 Total committed 19,321,583 - - 19,321,583 Assigned: Capital Projects 11,404,089 - - 11,404,089 Contractual Services 197,182 - - 197,182 Equipment/ Furniture 8,007 - - 8,007 Library 255,775 - - 255,775 Parks and Recreation 280,571 - - 280,571 Public Education & Govt Programming 588,452 - - 588,452 Public Safety 104,648 - - 104,648 Repair and Maintenance 3,775,268 - - 3,775,268 Total assigned 16,613,992 - - 16,613,992 Unassigned 14,063,706 - (15,860) 14,047,846 Total unassigned 14,063,706 - (15,860) 14,047,846 Total fund balances 65,638,317$ 2,771,447$ 17,854,168$ 86,263,932$ Major Funds 117 of 281 May 7, 2019, Item #1.7 City of Poway Notes to Basic Financial Statements June 30, 2018 -91- Note 17 – Special Item (Transfer of Capital Assets) The Successor Agency transferred capital asset to the City in accordance with the approved Long Range Property Management Plan. The following capital assets were transferred from the Successor Agency to the City: Related to transfer of capital assets Land (8,362,684)$ Buildings (15,357,977) Infrastructure (17,739,258) A/D- Building 12,373,672 A/D- Infrastructure 2,881,945 Total special item (26,204,302)$ Note 18 – Prior Period Restatement During the fiscal year ended June 30, 2018, the City discovered that Land improvements from the prior year sale were still being reported on the City’s financial statements. Therefore, an adjustment to beginning fund balance and net position has been recorded to account for these variances. Beginning Net Position, as previously reported Restatement Beginning Net Position, as restated Fiduciary Fund Successor Agency to the Poway Redevelopment Agency (117,419,322)$ (1,245,737)$ (118,665,059)$ 118 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 119 of 281 May 7, 2019, Item #1.7   -92- City of Poway Comprehensive Annual Financial Report For the year ended June 30, 2018 Required Supplementary Information (Unaudited) 120 of 281 May 7, 2019, Item #1.7 City of Poway Required Supplementary Information For the Year Ended June 30, 2018 -93- 1) Budgetary Information The City prepares its budgets on the basis of estimated expenditures and, accordingly, the budget amounts included in the accompanying financial statements are presented on a basis consistent with generally accepted accounting principles. The City Manager presents a proposed budget to the City Council appointed Budget Review Committee (BRC) in May. The BRC holds public budget meetings during May and early June. The final budget is adopted by the City Council during late June. No budget expenditures can be disbursed without proper appropriations. Once the budget is adopted, no additional fund appropriations can be authorized without the Council’s approval. The level of budget control (the level on which expenditures may not legally exceed appropriations) is the individual fund level. The City Manager can authorize budget transfers between departments without additional appropriations. The City holds a mid-year budget review meeting. During the meeting, all the budget expenditures are reviewed and projections for the whole year are made. Therefore, any necessary changes are submitted for approval by the City Council with a resolution. Annual appropriated budgets are adopted for the general, special revenue (except for the Performing Arts Center Trust), the permanent funds, and one debt service fund. Budgets are adopted on a basis consistent with generally accepted accounting principles. Budgeted amounts are as originally adopted and as further amended by the City Council. Capital improvement projects budgets are adopted upon project approval and remaining project balances are carried forward to subsequent fiscal years until the project’s completion. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders and contracts) outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities. The commitments will be reappropriated and honored in the subsequent year. The following are the budget comparison schedules for the General Fund and major special revenue funds. 2) Expenditure in Excess of Appropriations Final Governmental Funds - Non-Major Fund Budget Expenditures Excess Special Revenue Funds: Housing Authority 32,450$ 34,861$ (2,411)$ Maintenance Districts Fund - 185,431 (185,431) 121 of 281 May 7, 2019, Item #1.7 City of Poway Required Supplementary Information For the Year Ended June 30, 2018 -94- Budgetary Comparison Schedule, General Fund Actual Variance with Original Final Amounts Final Budget REVENUES Taxes 35,828,350$ 36,238,350$ 38,620,527$ 2,382,177$ Licenses and permits 693,050 693,050 698,848 5,798 Intergovernmental 371,930 658,520 783,241 124,721 Charges for services 2,458,410 2,506,940 2,623,079 116,139 Fines and forfeitures 130,000 130,000 150,968 20,968 Use of money and property 863,920 863,920 881,797 17,877 Developer fees 3,932,440 4,133,750 4,458,832 325,082 Other revenues 741,230 1,561,230 2,875,390 1,314,160 Total revenues 45,019,330 46,785,760 51,092,682 4,306,922 EXPENDITURES Current: General government 7,133,486 7,110,015 4,348,184 2,761,831 Public safety 23,555,220 24,237,957 24,203,074 34,883 Public works 4,163,335 4,241,175 5,443,423 (1,202,248) Development services 5,289,871 5,611,291 4,468,523 1,142,768 Community services 6,059,515 6,225,247 5,837,896 387,351 Capital outlay 21,024,284 30,742,925 7,292,310 23,450,615 Total expenditures 67,225,711 78,168,610 51,593,410 26,575,200 Excess (deficiency) of revenues over (under) expenditures (22,206,381) (31,382,850) (500,728) 30,882,122 OTHER FINANCING SOURCES (USES) Transfers in 4,404,529 4,978,891 1,679,384 (3,299,507) Transfers out (2,326,720) (2,836,852) (1,105,779) 1,731,073 Total other financing sources (uses) 2,077,809 2,142,039 573,605 (1,568,434) Net change in fund balance (20,128,572)$ (29,240,811)$ 72,877 29,313,688$ Fund balance, beginning of year 65,565,440 Fund balance, end of year 65,638,317$ Budget Amounts 122 of 281 May 7, 2019, Item #1.7 City of Poway Required Supplementary Information For the Year Ended June 30, 2018 -95- Budgetary Information (Continued) Budgetary Comparison Schedule, Housing Authority Fund Actual Variance with Original Final Amounts Final Budget REVENUES Charges for services 49,120$ 49,120$ 59,839$ 10,719$ Use of money and property 22,000 22,000 40,295 18,295 Other revenues 40,000 40,000 59,667 19,667 Total revenues 111,120 111,120 159,801 48,681 EXPENDITURES Current: General government 10,400 10,400 7,988 2,412 Development services 10,000 32,450 34,861 (2,411) Capital outlay 554,319 1,645,819 831,705 814,114 Total expenditures 574,719 1,688,669 874,554 814,115 Excess (deficiency) of revenues over (under) expenditures (463,599) (1,577,549) (714,753) (765,434) OTHER FINANCING SOURCES (USES) Transfers in - 820,000 820,000 - Total other financing sources (uses)- 820,000 820,000 - Net change in fund balance (463,599)$ (757,549)$ 105,247 862,796$ Fund balance, beginning of year 2,666,200 Fund balance, end of year 2,771,447$ Budget Amounts 123 of 281 May 7, 2019, Item #1.7 City of Poway Required Supplementary Information For the Year Ended June 30, 2018 -96- Schedule of Changes in Net Pension Liability and Related Ratios Last 10 Years* Miscellaneous Plan Measurement Measurement Measurement Measurement Period Period Period Period 6/30/2014 6/30/2015 6/30/2016 6/30/2017 TOTAL PENSION LIABILITY Service Cost 1,515,714$ 1,463,621$ 1,552,133$ 1,785,822$ Interest 6,646,592 6,973,473 7,241,818 7,456,135 Changes of Benefit Terms - - - - Difference Between Expected and Actual Experience - 179,245 (444,504) (471,057) Changes of Assumptions - (1,692,043) - 6,085,867 Benefit Payments, Including Refunds of Employee Contributions (3,875,819) (4,300,520) (4,757,620) (5,058,914) Net Change in Total Pension Liability 4,286,487 2,623,776 3,591,827 9,797,853 Total Pension Liability - Beginning 89,801,273 94,087,760 96,711,536 100,303,363 Total Pension Liability - Ending (a) 94,087,760$ 96,711,536$ 100,303,363$ 110,101,216$ PLAN FIDUCIARY NET POSITION Contributions - Employer 1,590,147$ 1,651,614$ 1,961,662$ 2,311,817$ Contributions - Employee 716,942 773,660 778,160 806,615 Net Investment Income 11,075,599 1,674,500 387,630 7,966,356 Benefit Payments, Including Refunds of Employee Contributions (3,875,819) (4,300,520) (4,757,620) (5,058,914) Administrative Expenses - (82,323) (44,608) (105,594) Net Change in Fiduciary Net Position 9,506,869 (283,069) (1,674,776) 5,920,280 Plan Fiduciary Net Position - Beginning 63,970,749 73,477,618 73,194,551 71,519,775 Plan Fiduciary Net Position - Ending (b) 73,477,618$ 73,194,549$ 71,519,775$ 77,440,055$ Plan Net Position Liability - Ending (a) - (b) 20,610,142$ 23,516,987$ 28,783,588$ 32,661,161$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 78.09% 75.68% 71.30% 70.34% Covered Payroll 10,373,075$ 10,272,463$ 10,938,986$ 11,566,248$ Plan Net Pension Liability as a Percentage of Covered-Employee Payroll 198.69% 228.93% 263.13% 282.38% Notes to Schedule: * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only four years are presented. Changes in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). Changes in Assumptions: In 2017, the accounting discount rate reduced from 7.65 to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflected an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. 124 of 281 May 7, 2019, Item #1.7 City of Poway Required Supplementary Information For the Year Ended June 30, 2018 (Continued) -97- Schedule of Plan Contributions Last 10 Years* Miscellaneous Plan Contribution in Contributions as Relation to the a Percentage of Contractually Contractually Contribution Covered- Determined Determined Deficiency Employer's Employee Contributions Contributions (Excess) Covered Payroll Payroll 2014-15 1,651,614$ (1,651,614)$ -$ 10,272,463$ 16.08% 2015-16 1,961,662$ (1,961,662)$ -$ 10,938,986$ 17.93% 2016-17 2,311,817$ (2,311,817)$ -$ 11,566,248$ 19.99% 2017-18 2,452,302$ (2,452,302)$ -$ 11,662,050$ 21.03% Notes to Schedule: Actuarial Cost Method Entry Age Normal Amortization Method/Period For details, see June 30, 2014, Funding Valuation Report. Asset Valuation Method Inflation 2.75% Salary Increases Varies by Entry Age and Service Payroll Growth 3.00% Investment Rate of Return Retirement Age Mortality The probabilities of mortality are based on the 2014 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and Post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. * Measurement period 2013-14 (fiscal year 2014-15) was the first year of implementation, therefore, only four years are presented. The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2016-17 were derived from the June 30, 2014, Funding Valuation Report. Fiscal Year Actuarial Value of Assets. For details, see June 30, 2014, Funding Valuation Report. 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. The probabilities of Retirement are based on the 2014 CalPERS Experience Study for the period from 1997 to 2007. 125 of 281 May 7, 2019, Item #1.7 City of Poway Required Supplementary Information For the Year Ended June 30, 2018 (Continued) -98- Schedule of the City's Proportionate Share of the Plan's Net Pension Liability and Related Ratios as of the Measurement Date Last 10 Years* Safety Plan Employer's Proportionate Share of the Collective Net Pension's Plans Employer's Employer's Pension Liability Fiduciary Net Proportion of Proportion as a Percentage Position as a the Collective Share of the of the Employer's Percentage of Net Pension Collective Net Employer's Covered- the Total Liability1 Pension Liability Covered Payroll Employee Payroll Pension Liability 6/30/2014 0.14119% 8,785,355$ 4,733,734$ 185.59% 81.42% 6/30/2015 0.25032% 10,314,344$ 4,875,746$ 211.54% 79.03% 6/30/2016 0.25757% 13,340,151$ 4,765,209$ 279.95% 74.44% 6/30/2017 0.25775% 15,401,317$ 4,813,604$ 319.95% 74.14% * Measurement date June 30, 2014 was the first year of implementation, therefore, only four years are presented. Measurement Date 1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes both the Miscellaneous and Safety Risk Pools excluding the 1959 Survivors Risk Pool. 126 of 281 May 7, 2019, Item #1.7 City of Poway Required Supplementary Information For the Year Ended June 30, 2018 (Continued) -99- Schedule of Plan Contributions Last 10 Years* Safety Plan Contribution in Contributions as Relation to the a Percentage of Contractually Contractually Contribution Covered- Determined Determined Deficiency Employer's Employee Contributions Contributions (Excess) Covered Payroll Payroll 2014-15 1,159,123$ (1,159,123)$ -$ 4,875,746$ 23.77% 2015-16 1,322,635$ (1,172,369)$ 150,266$ 4,765,209$ 24.60% 2016-17 1,340,317$ (1,340,317)$ -$ 4,813,604$ 27.84% 2017-18 1,517,719$ (1,517,719)$ -$ 4,948,089$ 30.67% Notes to Schedule: Change in Benefit Terms: None * Measurement period 2013-14 (fiscal year 2014-15) was the first year of implementation, therefore, only four years are presented. Change in Assumptions: In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan plan administrative expense). In 2014, amounts reported were based on the 7.5 discount rate. Fiscal Year 127 of 281 May 7, 2019, Item #1.7 City of Poway Required Supplementary Information For the Year Ended June 30, 2018 (Continued) -100- Schedule of Changes in Net Pension Liability and Related Ratios Last 10 Years* Retirement Enhancement Plan Measurement Date Measurement Date Measurement Date Measurement Date 2014-15 2015-16 2016-17 2017-18 TOTAL PENSION LIABILITY Service Cost 252,845$ 253,408$ 235,041$ 228,468$ Interest 1,071,102 1,117,733 1,148,044 1,191,080 Effect of plan changes - - - - Effect of economic/demographic gains or losses - 32,923 (231,575) 52,208 Effect of assumptions changes or inputs - - - - Benefit payments (628,101) (689,668) (753,594) (876,349) Net Change in Total Pension Liability 695,846 714,396 397,916 595,407 Total Pension Liability - Beginning 15,357,354 16,053,200 16,767,596 17,165,512 Total Pension Liability - Ending (a)16,053,200$ 16,767,596$ 17,165,512$ 17,760,919$ PLAN FIDUCIARY NET POSITION Contributions - Employer 1,302,085$ 1,379,421$ 3,846,093$ 1,560,917$ Net Investment Income 205,418 (43,672) 1,332,806 1,062,788 Benefit Payments, Including Refunds of Employee Contributions (628,101) (689,668) (753,594) (876,349) Administrative Expenses (18,030) (18,906) (24,614) (25,431) Net Change in Fiduciary Net Position 861,372 627,175 4,400,691 1,721,925 Plan Fiduciary Net Position - Beginning 8,451,533 9,312,905 9,940,080 14,340,771 Plan Fiduciary Net Position - Ending (b)9,312,905$ 9,940,080$ 14,340,771$ 16,062,696$ Plan Net Position Liability - Ending (a) - (b)6,740,295$ 6,827,516$ 2,824,741$ 1,698,223$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 58.01%59.28%83.54%90.44% Covered Payroll 8,347,917$ 7,653,837$ 7,041,971$ 6,666,563$ Plan Net Pension Liability as a Percentage of Covered Payroll 80.74%89.20%40.11%25.47% Notes to Schedule: * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation, therefore, only four years are presented. Changes in Benefit Terms: None Changes in Assumptions: The retirement, disability, salary scale and pre-retirement mortality assumptions were updated to be consistent with those recommended for CalPERS actuarial valuations of public agency pension plans. These new demographic assumptions are described in the January 2014 experience study of the California Public Employees Retirement System. This study used data from 1997 to 2011. The post-retirement mortality was updated to the CalPERS 1997-2011 Healthy Retiree Mortality Tables (sex-distinct) with an assumed base year of 2008 and full generational projections using Scale AA. 128 of 281 May 7, 2019, Item #1.7 City of Poway Required Supplementary Information For the Year Ended June 30, 2018 (Continued) -101- Schedule of Plan Contributions Last 10 Years* Retirement Enhancement Plan Contribution in Contributions as Relation to the a Percentage of Contractually Contractually Contribution Covered- Fiscal Year Determined Determined Deficiency Employer's Employee Contributions Contributions (Excess) Covered Payroll Payroll 2014-15 1,298,155$ (1,302,085)$ (3,930)$ 7,807,232$ 16.68% 2015-16 1,335,335$ (1,379,421)$ (44,086)$ 7,653,837$ 18.02% 2016-17 1,320,199$ (3,846,093)$ (2,525,894)$ 7,041,971$ 54.62% 2017-18 1,427,809$ (1,560,917)$ (133,108)$ 6,666,563$ 23.41% Notes to Schedule: Valuation Timing Actuarial Cost Method Amortization Method/Period Asset Valuation Method Inflation Salary Increases Varies by years of Service Cost of Living Adjustments 2.00% Investment Rate of Return 7.00% Payroll Growth 3.00% Withdrawal/Disability Retirement Age Mortality Maximum Benefits and Salary No benefit or salary maximum is applied. Family Composition Form of Payment Single Life Annuity Pre-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous CalPERS Pension Plans. Post-Retirement: CalPERS 1997-2001 Healthy Retiree Mortality Tables (sex- distinct) with an assumed base year of 2008 and full generational improvements using Scale AA. 85% of active members are asssumed to have an eligible beneficiary who is potentially eligible to receive a preretirement death benefit. Wives are assumed to be three years younger than their husbands. Entry Age Normal Level dollar, closed periods, 7 years amortization period 0.00% growth rate The actuarial value of assets is the market value of assets as provided by Public Agency Retirement Services. 2.75% * Measurement period 2013-14 (fiscal year 2014-15) was the first year of implementation, therefore, only four years are presented. The actuarial methods and assumptions used to set the actuarially Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which the contributions are reported. Consistent with Non-Industrial rates used to value Miscellaneous Agency CalPERS Pension Plans. The retirement rates are consistent with those used to value the Miscellaneous CalPERS Pension Plans 2.7% at age 55. The rates used are those for retirees with 20 years of service, with an increased retirement rate of 20% at age 55. 129 of 281 May 7, 2019, Item #1.7   -102- SUPPLEMENTARY INFORMATION 130 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 131 of 281 May 7, 2019, Item #1.7   -103- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS: Fire Protection Fund – Used to account for revenues received from the Fire Protection Special Tax. Voters approved this special tax in June 1997. It is used to pay for a portion of the costs of fire protection within the City of Poway. 800 MHz Communication System Fund – Used to account for revenues received from the 800 MHz Regional Communication System Special Tax. Voters approved this special tax in June 1998. It is used to pay for the City's share of the County-wide radio backbone system, and a portion of the annual maintenance expenses. Gas Tax Fund – Used to account for revenues received and expenditures made for street maintenance. Financing is provided by the City's share of State gasoline taxes made pursuant to the California State Constitution and authorized by the State Legislature. Drainage Fund – Used to account for operations of the flood control and drainage division. Financing is provided by developer's drainage fees and flood zone fees from the County. Poway Municipal Code Section 16.72 requires the segregation of the funding. Miscellaneous Grants Fund – Used to account for grants from various agencies used for operations and maintenance, and to account for specific in-lieu fees from developers. Financing for grants is provided by the State, County and Federal Government. Such grants provide for payment of all current operating costs and may be used only for specified purposes. AB 939 Integrated Waste Management Fund – Used to account for revenue received from a fee collected with solid waste disposal that was created as a result of AB 939. All revenues in this fund are to be used to reduce the toxicity of solid waste in landfills and improve the management of waste resources. Community Development Block Grant Fund – Used to account for revenues received and expenditures made for community development and housing assistance. Financing is provided under agreement with the county whereby the City is a secondary recipient with funds made available from the U.S. Department of Housing and Urban Development under the Housing and Community Development Acts of 1974 and 1977. Transportation Development Act Fund – Used to account for revenues received and expenditures made for transportation development, transit and related studies. Funding is provided to the City as secondary recipient under agreements with the county and with the San Diego Association of Governments. 132 of 281 May 7, 2019, Item #1.7   -104- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS (Continued): Proposition A Fund – To account for the San Diego County special Proposition A one-half (1/2) cent transportation sales tax which became effective July 1, 1988. All revenues of this fund must be expended for certain transportation related purposes. SB 1186 Disabled Access Law Fund – Used to account for revenue received from a fee collected upon issuance of a business registration that was created as a result of AB 1186. All revenues in this fund are to be used to pay for certified access specialists in local building departments and to pay for educational and training resources at the state and local level to promote compliance. Excess SAFE Reserve Fund – Used to account for revenue received related to the dissolution of the San Diego Service Authority for Freeway Emergencies (SAFE), and their expenditure for motorist aid services and support. Regional Arterial Traffic Mitigation Fund – Used to account for new fees required by the San Diego Association of Governments. Fire Protection Impact Fees Fund – Used to account for revenues received and expenditures made for fire protection improvements. Financing is provided primarily from developer fees. BEGIN Program Fund – The Building Equity and Growth in Neighborhoods program (BEGIN) is funded by the California Department of Housing and Community Development to provide down payment assistance to low and moderate income first-time home buyers of newly constructed homes. Housing In-lieu Fund – Used to account for revenues received and expenditures made for affordable housing. Funding is provided primarily from developer fees that are collected in-lieu of the developer providing inclusionary affordable housing units. The funds are used by the City to support its first-time home buyer program, Supporting Home Ownership in Poway (SHOP), which is available to low and moderate income homebuyers. Abandoned Vehicle Fees Fund – Used to account for fees collected from the sale and citation of abandoned vehicles remitted from San Diego County. A budget was not adopted for this fund. Habitat In-lieu Fund – Used to account for revenues received and expenditures made for the mitigation of environmental impacts to natural habitat. Funding is provided primarily from developer fees that are collected in-lieu of the developer providing actual land. The funds are used by the City to purchase open space as land and funding become available. 133 of 281 May 7, 2019, Item #1.7   -105- NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS (Continued): Maintenance Districts Fund receives assessments from property owners based on the proportionate share of the costs, as estimated by an engineer’s report. Assessments are collected via tax rolls. The fund is used for lighting, landscape and maintenance. Road Repair – Used to account for revenues received and expenditures made for road maintenance and rehabilitation. Financing is provided by the City’s share of the Road Maintenance and Rehabilitation account revenues pursuant the Road Repair and Accountability Act of 2017 (SB1) DEBT SERVICE FUND: City of Poway Debt Service Fund – Used to account for lease payments received and transfers in from other funds that are used to make debt service payments. PERMANENT FUND: Mary Patricia Ross Trust Fund – Used to account for revenue and expenses provided by a private estate to finance community park and recreation purposes. The principal must be maintained intact until 2006. Interest income must also be used to finance such recreational purposes. CAPITAL PROJECTS FUNDS: Park Improvement Fund – Used to account for the financing and construction of park facilities throughout the City. Street Improvement Fund receives revenues and expenditures made for street improvements. Financing is provided primarily from developer's traffic mitigation fees. City Ordinance No. 80 authorized the collection and the segregation of the funding. Municipal Improvement Fund – Used to account for the financing and construction of the Old Coach water line. The remaining funds are to be used for the maintenance and operation costs of the water line. 134 of 281 May 7, 2019, Item #1.7 City of Poway Combining Balance Sheet Non-Major Governmental Funds June 30, 2018 -106- 800 MHz Fire Communication Gas Miscellaneous Protection System Tax Drainage Grants ASSETS Cash and investments -$ 62,126$ 1,113,378$ 2,157,485$ 337,156$ Receivables: Taxes 3,988 265 - 5,656 - Accounts - - 2,826 - 30 Interest - 649 - - - Advances to other funds - - - 17,576 - Due from other governments - - - - 34,744 Advances to fiduciary funds - - - 849,961 - Restricted assets: Cash and investments with fiscal agents - - - - - Total assets 3,988$ 63,040$ 1,116,204$ 3,030,678$ 371,930$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable -$ -$ 154,262$ 36,732$ -$ Accrued liabilities - - 27,859 18,484 - Due to other funds - - - - 34,044 Advances from other funds - 78,900 - - - Unearned revenues - - - 44,521 14,386 Total liabilities - 78,900 182,121 99,737 48,430 Deferred inflows of resources: Unavailable revenue - - - - 34,744 Total deferred inflows of resources - - - - 34,744 FUND BALANCES (deficit) Restricted 3,988 - 934,083 2,930,941 288,756 Unassigned - (15,860) - - - Total fund balances 3,988 (15,860) 934,083 2,930,941 288,756 Total liabilities, deferred inflows of resources and fund balances 3,988$ 63,040$ 1,116,204$ 3,030,678$ 371,930$ Special Revenue Funds 135 of 281 May 7, 2019, Item #1.7 City of Poway Combining Balance Sheet Non-Major Governmental Funds June 30, 2018 (Continued) -107- AB 939 Integrated Community Transportation SB 1186 Excess Waste Development Development Disabled SAFE Management Block Grant Act Proposition A Access Law Reserve 737,627$ 14,694$ 359,952$ 187,229$ 10,238$ 148,555$ - - - - - - 49,589 - - - - - - - - - - - - - - - - - - 86,950 17,288 - - - - - - - - - - - - - - - 787,216$ 101,644$ 377,240$ 187,229$ 10,238$ 148,555$ 45,777$ 14,694$ 2,697$ 6,861$ -$ -$ - - - - 234 - - 86,950 - - - - - - - - - - - - - - - - 45,777 101,644 2,697 6,861 234 - - - - - - - - - - - - - 741,439 - 374,543 180,368 10,004 148,555 - - - - - - 741,439 - 374,543 180,368 10,004 148,555 787,216$ 101,644$ 377,240$ 187,229$ 10,238$ 148,555$ Special Revenue Funds 136 of 281 May 7, 2019, Item #1.7 City of Poway Combining Balance Sheet Non-Major Governmental Funds June 30, 2018 (Continued) -108- Regional Fire Arterial Protection Abandoned Traffic Impact BEGIN Housing Vehicle Habitat Mitigation Fees Program In-lieu Fees In-lieu ASSETS Cash and investments 325,093$ 121,260$ 5,976$ 148,847$ 320,619$ 1,547,078$ Receivables: Taxes - - - - - - Accounts - - - - - - Interest - - - - - - Advances to other funds - - - - - - Due from other governments - - - - - - Advances to fiduciary funds - - - - - - Restricted assets: Cash and investments with fiscal agents - - - - - - Total assets 325,093$ 121,260$ 5,976$ 148,847$ 320,619$ 1,547,078$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 2,549$ -$ -$ -$ -$ 800$ Accrued liabilities - - - - - - Due to other funds - - - - - - Advances from other funds - - - - - - Unearned revenues - - - - - - Total liabilities 2,549 - - - - 800 Deferred inflows of resources: Unavailable revenue - - - - - - Total deferred inflows of resources - - - - - - FUND BALANCES (deficit) Restricted 322,544 121,260 5,976 148,847 320,619 1,546,278 Unassigned - - - - - - Total fund balances 322,544 121,260 5,976 148,847 320,619 1,546,278 Total liabilities, deferred inflows of resources and fund balances 325,093$ 121,260$ 5,976$ 148,847$ 320,619$ 1,547,078$ Special Revenue Funds 137 of 281 May 7, 2019, Item #1.7 City of Poway Combining Balance Sheet Non-Major Governmental Funds June 30, 2018 (Continued) -109- Debt Service Permanent Fund Fund Total Mary Non-major Maintenance Road Debt Patricia Park Street Municipal Governmental Districts Repair Service Ross Trust Improvement Improvement Improvement Funds 7,959,219$ -$ 213,052$ 93,813$ 804,728$ 1,492,885$ 3,960$ 18,164,970$ 11,458 - - - - - - 21,367 59,517 - - - - - - 111,962 - - 576 - - - - 1,225 - - - - - - - 17,576 - 106,511 - - - - - 245,493 - - - - - - - 849,961 - - 627,958 - - - - 627,958 8,030,194$ 106,511$ 841,586$ 93,813$ 804,728$ 1,492,885$ 3,960$ 20,040,512$ 196,381$ -$ -$ -$ 1,000$ -$ -$ 461,753$ 4,709 - - - - - - 51,286 - 43,699 163,435 - - - - 328,128 - - - - 307,228 723,147 - 1,109,275 - - 142,251 - - - - 201,158 201,090 43,699 305,686 - 308,228 723,147 - 2,151,600 - - - - - - - 34,744 - - - - - - - 34,744 7,829,104 62,812 535,900 93,813 496,500 769,738 3,960 17,870,028 - - - - - - - (15,860) 7,829,104 62,812 535,900 93,813 496,500 769,738 3,960 17,854,168 8,030,194$ 106,511$ 841,586$ 93,813$ 804,728$ 1,492,885$ 3,960$ 20,040,512$ Capital Projects FundsSpecial Revenue Funds 138 of 281 May 7, 2019, Item #1.7 City of Poway Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds For the Year Ended June 30, 2018 -110- 800 MHz Fire Communication Gas Miscellaneous Protection System Tax Drainage Grants REVENUES Taxes 636,285$ 135,637$ 1,018,492$ 1,367,769$ -$ Intergovernmental - - 15,576 224,058 261,916 Use of money and property - 2,038 7,574 50,014 1,804 Developer fees - - - 56,953 - Assessments levied - - - - - Other revenues - - 64,563 3,997 - Total revenues 636,285 137,675 1,106,205 1,702,791 263,720 EXPENDITURES Current: Public safety - 158,279 - - - Public works - - 1,135,455 686,590 - Capital outlay - - - 996,593 61,546 Debt service: Principal - - - - - Interest and fiscal charges - - - - - Total expenditures - 158,279 1,135,455 1,683,183 61,546 Excess (deficiency) of revenues over (under) expenditures 636,285 (20,604) (29,250) 19,608 202,174 OTHER FINANCING SOURCES (USES) Transfers in - - - 3,835 - Transfer out (636,178) - - - (129,324) Total other financing sources (uses) (636,178) - - 3,835 (129,324) Net change in fund balances 107 (20,604) (29,250) 23,443 72,850 Fund balances, beginning of year 3,881 4,744 963,333 2,907,498 215,906 Fund balances (deficit), end of year 3,988$ (15,860)$ 934,083$ 2,930,941$ 288,756$ Special Revenue Funds 139 of 281 May 7, 2019, Item #1.7 City of Poway Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds For the Year Ended June 30, 2018 (Continued) -111- AB 939 Integrated Community Transportation SB 1186 Excess Waste Development Development Disabled SAFE Management Block Grant Act Proposition A Access Law Reserve -$ -$ -$ 1,518,950$ -$ -$ 28,199 105,862 16,879 - - - 5,055 - 2,654 2,506 35 1,056 - - - - - - - - - - - - 226,565 - 409 - 4,057 - 259,819 105,862 19,942 1,521,456 4,092 1,056 - - - - - - - - 409 1,420,169 - - 212,243 105,862 16,879 251,570 - - - - - - - - - - - - - - 212,243 105,862 17,288 1,671,739 - - 47,576 - 2,654 (150,283) 4,092 1,056 - - - - - - - - - - - - - - - - - - 47,576 - 2,654 (150,283) 4,092 1,056 693,863 - 371,889 330,651 5,912 147,499 741,439$ -$ 374,543$ 180,368$ 10,004$ 148,555$ Special Revenue Funds 140 of 281 May 7, 2019, Item #1.7 City of Poway Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds For the Year Ended June 30, 2018 (Continued) -112- Regional Fire Arterial Protection Abandoned Traffic Impact BEGIN Housing Vehicle Habitat Mitigation Fees Program In-lieu Fees In-lieu REVENUES Taxes -$ -$ -$ -$ -$ -$ Intergovernmental - - - - - - Use of money and property 2,627 745 73 8,940 2,281 10,464 Developer fees 43,275 45,858 - 12,200 - 73,389 Assessments levied - - - - - - Other revenues - - - - - - Total revenues 45,902 46,603 73 21,140 2,281 83,853 EXPENDITURES Current: Public safety - - - - - - Public works - - - - - - Capital outlay 57,755 - - - - 16,068 Debt service: Principal - - - - - - Interest and fiscal charges - - - - - - Total expenditures 57,755 - - - - 16,068 Excess (deficiency) of revenues over (under) expenditures (11,853) 46,603 73 21,140 2,281 67,785 OTHER FINANCING SOURCES Transfers in - - - - - - Transfer out - - - (820,000) - - Total other financing sources (uses)- - - (820,000) - - Net change in fund balances (11,853) 46,603 73 (798,860) 2,281 67,785 Fund balances, beginning of year 334,397 74,657 5,903 947,707 318,338 1,478,493 Fund balances (deficit), end of year 322,544$ 121,260$ 5,976$ 148,847$ 320,619$ 1,546,278$ Special Revenue Funds 141 of 281 May 7, 2019, Item #1.7 City of Poway Combining Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Governmental Funds For the Year Ended June 30, 2018 (Continued) -113- Debt Service Permanent Fund Fund Total Mary Non-major Maintenance Road Debt Patricia Park Street Municipal Governmental Districts Repair Service Ross Trust Improvement Improvement Improvement Funds 438,695$ 294,460 -$ -$ -$ -$ -$ 5,410,288$ 13,806 - - - - - - 666,296 54,425 - 287,765 667 5,216 8,933 29 454,901 - - - - 91,240 756,878 - 1,079,793 1,900,026 - - - - - - 1,900,026 45,451 - - - - - - 345,042 2,452,403 294,460 287,765 667 96,456 765,811 29 9,856,346 - - - - - - - 158,279 2,747,360 231,648 - - - - - 6,221,631 185,431 - - - 11,065 10,024 - 1,925,036 - - 770,000 - - - - 770,000 - - 438,961 - - - - 438,961 2,932,791 231,648 1,208,961 - 11,065 10,024 - 9,513,907 (480,388) 62,812 (921,196) 667 85,391 755,787 29 342,439 375,528 - 934,919 - - - - 1,314,282 - - (4,617) - - - - (1,590,119) 375,528 - 930,302 - - - - (275,837) (104,860) 62,812 9,106 667 85,391 755,787 29 66,602 7,933,964 - 526,794 93,146 411,109 13,951 3,931 17,787,566 7,829,104$ 62,812$ 535,900$ 93,813$ 496,500$ 769,738$ 3,960$ 17,854,168$ Capital Projects FundsSpecial Revenue Funds 142 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 143 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Fire Protection Special Revenue Fund For the Year Ended June 30, 2018 -114- Actual Variance with Original Final Amounts Final Budget REVENUES Taxes 633,000$ 633,000$ 636,285$ 3,285$ Total revenues 633,000 633,000 636,285 3,285 OTHER FINANCING (USES) Transfers out (633,000) (636,180) (636,178) 2 Total other financing (uses) (633,000) (636,180) (636,178) 2 Net change in fund balance - (3,180) 107 3,287 Fund balance, beginning of year 3,881 3,881 3,881 - Fund balance, end of year 3,881$ 701$ 3,988$ 3,287$ Budget Amounts 144 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 800 MHz Communication System Special Revenue Fund For the Year Ended June 30, 2018 -115- Actual Variance with Original Final Amounts Final Budget REVENUES Taxes 136,000$ 136,000$ 135,637$ (363)$ Use of money and property 200 200 2,038 1,838 Total revenues 136,200 136,200 137,675 1,475 EXPENDITURES Current: Public Safety 160,124 160,124 158,279 1,845 Total expenditures 160,124 160,124 158,279 1,845 Net change in fund balance (23,924) (23,924) (20,604) 3,320 Fund balance, beginning of year 4,744 4,744 4,744 - Fund balance (deficit), end of year (19,180)$ (19,180)$ (15,860)$ 3,320$ Budget Amounts 145 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund For the Year Ended June 30, 2018 -116- Actual Variance with Original Final Amounts Final Budget REVENUES Taxes 1,056,190$ 1,056,190$ 1,018,492$ (37,698)$ Intergovernmental - - 15,576 15,576 Use of money and property 11,500 11,500 7,574 (3,926) Other revenues 57,330 57,330 64,563 7,233 Total revenues 1,125,020 1,125,020 1,106,205 (18,815) EXPENDITURES Current: Public works 2,149,161 1,779,288 1,135,455 643,833 Total expenditures 2,149,161 1,779,288 1,135,455 643,833 Net change in fund balance (1,024,141) (654,268) (29,250) 625,018 Fund balance, beginning of year 963,333 963,333 963,333 - Fund balance, end of year (60,808)$ 309,065$ 934,083$ 625,018$ Budget Amounts 146 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Drainage Special Revenue Fund For the Year Ended June 30, 2018 -117- Actual Variance with Original Final Amounts Final Budget REVENUES Taxes 1,265,100$ 1,265,100$ 1,367,769$ 102,669$ Intergovernmental - - 224,058 224,058 Use of money and property 17,340 17,340 50,014 32,674 Developer fees 26,040 26,040 56,953 30,913 Other revenues - - 3,997 3,997 Total revenues 1,308,480 1,308,480 1,702,791 394,311 EXPENDITURES Current: Public works 724,721 728,717 686,590 42,127 Capital outlay 1,207,871 1,182,329 996,593 185,736 Total expenditures 1,932,592 1,911,046 1,683,183 227,863 OTHER FINANCING SOURCES Transfers in 4,700 4,700 3,835 (865) Total other financing sources 4,700 4,700 3,835 (865) Net change in fund balance (619,412) (597,866) 23,443 621,309 Fund balance, beginning of year 2,907,498 2,907,498 2,907,498 - Fund balance, end of year 2,288,086$ 2,309,632$ 2,930,941$ 621,309$ Budget Amounts 147 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Miscellaneous Grants Special Revenue Fund For the Year Ended June 30, 2018 -118- Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 125,710$ 125,710$ 261,916$ 136,206$ Use of money and property 1,860 1,860 1,804 (56) Total revenues 127,570 127,570 263,720 136,150 EXPENDITURES Capital outlay 367,587 375,728 61,546 314,182 Total expenditures 367,587 375,728 61,546 314,182 OTHER FINANCING USES Transfers out (100,000) (129,330) (129,324) 6 Total other financing uses (100,000) (129,330) (129,324) 6 Net change in fund balance (340,017) (377,488) 72,850 450,338 Fund balance, beginning of year 215,906 215,906 215,906 - Fund balance, end of year (124,111)$ (161,582)$ 288,756$ 450,338$ Budget Amounts 148 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual AB 939 Integrated Waste Management Special Revenue Fund For the Year Ended June 30, 2018 -119- Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 22,600$ 22,600$ 28,199$ 5,599$ Use of money and property 6,940 6,940 5,055 (1,885) Other revenue 197,160 197,160 226,565 29,405 Total revenues 226,700 226,700 259,819 33,119 EXPENDITURES Capital outlay 262,086 262,086 212,243 49,843 Total expenditures 262,086 262,086 212,243 49,843 Net change in fund balance (35,386) (35,386) 47,576 82,962 Fund balance, beginning of year 693,863 693,863 693,863 - Fund balance, end of year 658,477$ 658,477$ 741,439$ 82,962$ Budget Amounts 149 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund For the Year Ended June 30, 2018 -120- Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 136,050$ 136,050$ 105,862$ (30,188)$ Total revenues 136,050 136,050 105,862 (30,188) EXPENDITURES Capital outlay 136,228 200,013 105,862 94,151 Total expenditures 136,228 200,013 105,862 94,151 Net change in fund balance (178) (63,963) - 63,963 Fund balance, beginning of year - - - - Fund balance, end of year (178)$ (63,963)$ -$ 63,963$ Budget Amounts 150 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Transportation Development Act Special Revenue Fund For the Year Ended June 30, 2018 -121- Actual Variance with Original Final Amounts Final Budget REVENUES Intergovernmental 5,000$ 5,000$ 16,879$ 11,879$ Use of money and property 3,970 3,970 2,654 (1,316) Other revenue 5,000 5,000 409 (4,591) Total revenues 13,970 13,970 19,942 5,972 EXPENDITURES Current: Public works 5,000 5,000 409 4,591 Capital outlay 375,334 375,334 16,879 358,455 Total expenditures 380,334 380,334 17,288 363,046 Net change in fund balance (366,364) (366,364) 2,654 369,018 Fund balance, beginning of year 371,889 371,889 371,889 - Fund balance, end of year 5,525$ 5,525$ 374,543$ 369,018$ Budget Amounts 151 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Proposition A Special Revenue Fund For the Year Ended June 30, 2018 -122- Actual Variance with Original Final Amounts Final Budget REVENUES Taxes 1,552,170$ 1,514,070$ 1,518,950$ 4,880$ Use of money and property 500.00 500.00 2,506 2,006 Total revenues 1,552,670 1,514,570 1,521,456 6,886 EXPENDITURES Current: Public works 1,352,170 1,518,086 1,420,169 97,917 Capital outlay 317,447 317,447 251,570 65,877 Total expenditures 1,669,617 1,835,533 1,671,739 163,794 Net change in fund balance (116,947) (320,963) (150,283) 170,680 Fund balance, beginning of year 330,651 330,651 330,651 - Fund balance, end of year 213,704$ 9,688$ 180,368$ 170,680$ Budget Amounts 152 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual SB 1186 Disabled Access Law Special Revenue Fund For the Year Ended June 30, 2018 -123- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 50$ 50$ 35$ (15)$ Other revenue 1,050 1,050 4,057 3,007 Total revenues 1,100 1,100 4,092 2,992 Net change in fund balance 1,100 1,100 4,092 2,992 Fund balance, beginning of year 5,912 5,912 5,912 - Fund balance, end of year 7,012$ 7,012$ 10,004$ 2,992$ Budget Amounts 153 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Excess SAFE Reserve Special Revenue Fund For the year ended June 30, 2018 -124- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 1,640$ 1,640$ 1,056$ (584)$ Total revenues 1,640 1,640 1,056 (584) EXPENDITURES Capital outlay 141,872 141,872 - 141,872 Total expenditures 141,872 141,872 - 141,872 Net change in fund balance (140,232) (140,232) 1,056 141,288 Fund balance, beginning of year 147,499 147,499 147,499 - Fund balance, end of year 7,267$ 7,267$ 148,555$ 141,288$ Budget Amounts 154 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Regional Arterial Traffic Mitigation Special Revenue Fund For the Year Ended June 30, 2018 -125- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 3,000$ 3,000$ 2,627$ (373)$ Developer fees 27,020 27,020 43,275 16,255 Total revenues 30,020 30,020 45,902 15,882 EXPENDITURES Capital outlay 56,092 57,762 57,755 7 Total expenditures 56,092 57,762 57,755 7 Net change in fund balance (26,072) (27,742) (11,853) 15,889 Fund balance, beginning of year 334,397 334,397 334,397 - Fund balance, end of year 308,325$ 306,655$ 322,544$ 15,889$ Budget Amounts 155 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Fire Protection Impact Fees Special Revenue Fund For the Year Ended June 30, 2018 -126- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 690$ 690$ 745$ 55$ Developer fees 3,510 3,510 45,858 42,348 Total revenues 4,200 4,200 46,603 42,403 Net change in fund balance 4,200 4,200 46,603 42,403 Fund balance, beginning of year 74,657 74,657 74,657 - Fund balance, end of year 78,857$ 78,857$ 121,260$ 42,403$ Budget Amounts 156 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual BEGIN Program Special Revenue Fund For the Year Ended June 30, 2018 -127- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 70$ 70$ 73$ 3$ Total revenues 70 70 73 3 Net change in fund balance 70 70 73 3 Fund balance, beginning of year 5,903 5,903 5,903 - Fund balance, end of year 5,973$ 5,973$ 5,976$ 3$ Budget Amounts 157 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Housing In-lieu Special Revenue Fund For the Year Ended June 30, 2018 -128- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 9,000$ 9,000$ 8,940$ (60)$ Developer fees 8,000 8,000 12,200 4,200 Total revenues 17,000 17,000 21,140 4,140 EXPENDITURES Capital outlay 259,379 136,719 - 136,719 Total expenditures 259,379 136,719 - 136,719 OTHER FINANCING SOURCES Transfers out - (820,000) (820,000) - Total other financing sources - (820,000) (820,000) - Net change in fund balance (242,379) (939,719) (798,860) 140,859 Fund balance, beginning of year 947,707 947,707 947,707 - Fund balance, end of year 705,328$ 7,988$ 148,847$ 140,859$ Budget Amounts 158 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Abandoned Vehicle Fees Special Revenue Fund For the year ended June 30, 2018 -129- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 3,540$ 3,540$ 2,281$ (1,259)$ Total revenues 3,540 3,540 2,281 (1,259) Net change in fund balance 3,540 3,540 2,281 (1,259) Fund balance, beginning of year 318,338 318,338 318,338 - Fund balance, end of year 321,878$ 321,878$ 320,619$ (1,259)$ Budget Amounts 159 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Habitat In-lieu Special Revenue Fund For the year ended June 30, 2018 -130- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 14,000$ 14,000$ 10,464$ (3,536)$ Developer fees 17,000 17,000 73,389 56,389 Total revenues 31,000 31,000 83,853 52,853 EXPENDITURES Capital outlay 3 16,073 16,068 5 Total expenditures 3 16,073 16,068 5 Net change in fund balance 30,997 14,927 67,785 52,858 Fund balance, beginning of year 1,478,493 1,478,493 1,478,493 - Fund balance, end of year 1,509,490$ 1,493,420$ 1,546,278$ 52,858$ Budget Amounts 160 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts Special Revenue Fund For the year ended June 30, 2018 -131- Actual Variance with Original Final Amounts Final Budget REVENUES Taxes 415,530$ 415,530$ 438,695$ 23,165$ Intergovernmental - - 13,806 13,806 Use of money and property 82,760 82,760 54,425 (28,335) Assessment levied 1,438,310 1,869,820 1,900,026 30,206 Other revenue - - 45,451 45,451 Total revenues 1,936,600 2,368,110 2,452,403 84,293 EXPENDITURES Current: Public works 3,270,377 3,462,238 2,747,360 714,878 Capital outlay - - 185,431 (185,431) Total expenditures 3,270,377 3,462,238 2,932,791 529,447 Excess (deficiency) of revenues over (under) expenditures (1,333,777) (1,094,128) (480,388) 613,740 OTHER FINANCING SOURCES Transfers in 375,650 375,650 375,528 (122) Total other financing sources 375,650 375,650 375,528 (122) Net change in fund balance (958,127) (718,478) (104,860) 613,618 Fund balance, beginning of year 7,933,964 7,933,964 7,933,964 - Fund balance, end of year 6,975,837$ 7,215,486$ 7,829,104$ 613,618$ Budget Amounts 161 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Road Repair Special Revenue Fund For the year ended June 30, 2018 -132- Actual Variance with Original Final Amounts Final Budget REVENUES Taxes 288,930$ 288,930$ 294,460$ 5,530$ Total revenues 288,930 288,930 294,460 5,530 EXPENDITURES Current: Public works 250,000 250,000 231,648 18,352 Total expenditures 250,000 250,000 231,648 18,352 Net change in fund balance 38,930 38,930 62,812 23,882 Fund balance, beginning of year - - - - Fund balance, end of year 38,930$ 38,930$ 62,812$ 23,882$ Budget Amounts 162 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual City Debt Service Fund For the year ended June 30, 2018 -133- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 285,740$ 285,740$ 287,765$ 2,025$ Total revenues 285,740 285,740 287,765 2,025 EXPENDITURES Debt service: Principal 1,200,000 1,200,000 770,000 430,000 Interest and fiscal charges 446,450 446,450 438,961 7,489 Total expenditures 1,646,450 1,646,450 1,208,961 437,489 Excess (deficiency) of revenues over (under) expenditures (1,360,710) (1,360,710) (921,196) 439,514 OTHER FINANCING SOURCES (USES) Transfers in 1,372,300 1,373,540 934,919 (438,621) Transfers out (4,620) (4,620) (4,617) 3 Total other financing sources (uses) 1,367,680 1,368,920 930,302 (438,618) Net change in fund balance 6,970 8,210 9,106 896 Fund balance, beginning of year 526,794 526,794 526,794 - Fund balance, end of year 533,764$ 535,004$ 535,900$ 896$ Budget Amounts 163 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Mary Patricia Ross Trust Permanent Fund For the year ended June 30, 2018 -134- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 950$ 950$ 667$ (283)$ Total revenues 950 950 667 (283) Net change in fund balance 950 950 667 (283) Fund balance, beginning of year 93,146 93,146 93,146 - Fund balance, end of year 94,096$ 94,096$ 93,813$ (283)$ Budget Amounts 164 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Park Improvement Capital Projects Fund For the year ended June 30, 2018 -135- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 2,500$ 2,500$ 5,216$ 2,716$ Developer fees 63,870 63,870 91,240 27,370 Total revenues 66,370 66,370 96,456 30,086 EXPENDITURES Capital outlay 11,065 11,065 11,065 - Total expenditures 11,065 11,065 11,065 - Net change in fund balance 55,305 55,305 85,391 30,086 Fund balance, beginning of year 411,109 411,109 411,109 - Fund balance, end of year 466,414$ 466,414$ 496,500$ 30,086$ Budget Amounts 165 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Street Improvement Capital Projects Fund For the year ended June 30, 2018 -136- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 5,000$ 5,000$ 8,933$ 3,933$ Developer fees 94,650 94,650 756,878 662,228 Total revenues 99,650 99,650 765,811 666,161 EXPENDITURES Capital outlay 74,634 74,634 10,024 64,610 Total expenditures 74,634 74,634 10,024 64,610 Net change in fund balance 25,016 25,016 755,787 730,771 Fund balance, beginning of year 13,951 13,951 13,951 - Fund balance, end of year 38,967$ 38,967$ 769,738$ 730,771$ Budget Amounts 166 of 281 May 7, 2019, Item #1.7 City of Poway Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Municipal Improvement Capital Projects Fund For the year ended June 30, 2018 -137- Actual Variance with Original Final Amounts Final Budget REVENUES Use of money and property 40$ 40$ 29$ (11)$ Total revenues 40 40 29 (11) Net change in fund balance 40 40 29 (11) Fund balance, beginning of year 3,931 3,931 3,931 - Fund balance, end of year 3,971$ 3,971$ 3,960$ (11)$ Budget Amounts 167 of 281 May 7, 2019, Item #1.7   -138- INTERNAL SERVICE FUND Vehicle Maintenance Fund - Used to account for the cost of operating a maintenance facility for automotive equipment used by other City departments. Such costs to other departments are billed on a direct cost basis. The Vehicle Maintenance Fund is responsible for financing replacement vehicles, as necessary. 168 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Net Position Internal Service Fund - Vehicle Maintenance Fund June 30, 2018 -139- ASSETS Current assets: Cash and investments 10,170,852$ Advances to other funds 439,400 Total current assets 10,610,252 Total assets 10,610,252 DEFERRED OUTFLOWS OF RESOURCES Pension related 123,780 LIABILITIES Current liabilities: Accounts payable 145,147 Accrued liabilities 12,363 Compensated absences due within one year 27,890 Total current liabilities 185,400 Noncurrent liabilities: Compensated absences 824 Net pension liability 513,163 Total noncurrent liabilities 513,987 Total liabilities 699,387 DEFERRED INFLOWS OF RESOURCES Pension related 10,415 NET POSITION Unrestricted 10,024,230 Total net position 10,024,230$ 169 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Revenues, Expenses and Changes in Net Position Internal Service Fund - Vehicle Maintenance Fund For the year ended June 30, 2018 -140- OPERATING REVENUES Charges for services 3,078,163$ Total operating revenues 3,078,163 OPERATING EXPENSES Personnel services 237,069 Maintenance and operations 1,221,644 Total operating expenses 1,458,713 Operating income 1,619,450 NONOPERATING REVENUES Interest revenue 60,171 Gain on sale of property 25,378 Grant revenue 6,309 Other nonoperating revenue 6,978 Total nonoperating revenues 98,836 Income before transfers 1,718,286 TRANSFERS Transfers in 9,580 Transfers out (700,525) Total transfers (690,945) Change in net position 1,027,341 Net position, beginning of year 8,996,889 Net position, end of year 10,024,230$ 170 of 281 May 7, 2019, Item #1.7 City of Poway Statement of Cash Flows Internal Service Fund - Vehicle Maintenance Fund For the year ended June 30, 2018 -141- Cash flows from operating activities: Cash receipts from interfund charges 3,085,845$ Cash paid to employees for services (339,021) Cash paid to suppliers of goods or services (1,291,554) Net cash provided by operating activities 1,455,270 Cash flows from noncapital financing activities: Due from other governments 5,397 Other nonoperating revenues 6,978 Transfers from other funds 9,580 Transfer to other funds (700,525) Net cash (used for) noncapital financing activities (678,570) Cash flows from capital and related financing activities: Sale of capital assets 25,378 Capital grant revenue 6,309 Net cash provided by capital and related financing activities 31,687 Cash flows from investing activities: Interest income 60,171 Net cash provided by investing activities 60,171 Net increase in cash and investments 868,558 Cash and investments, beginning of year 9,302,294 Cash and investments, end of year 10,170,852$ Reconciliation of operating income to net cash provided by operating activities: Operating income 1,619,450$ Adjustments to net cash provided by operating activities: (Increase) decrease in assets: Accounts receivable 7,682 Increase (decrease) in liabilities: Accounts payable (69,910) Accrued liabilities (4,516) Compensated absences (19,360) Net Pension Liability (78,076) Total adjustments (164,180) Net cash provided by operating activities 1,455,270$ 171 of 281 May 7, 2019, Item #1.7   -142- FIDUCIARY FUNDS AGENCY FUNDS The agency funds are used to account for assets held by the City as an agent. Agency funds include the following: Developer Deposits Fund - Used to account for the collection and payments of development deposits from and on behalf of the collective and individual developers. Parkway Business Centre CFD No. 88-1 Bond Deposits Fund - Used to account for debt service payments CFD No. 88-1 Bond Deposits collected through property tax assessments remitted to fiscal agent-trustee for payment on bonds. High Valley Road AD No. 96-1 Bond Deposits Fund - Used to account for debt service payments AD No. 96-1 Bond Deposits collected through property tax assessments remitted to fiscal agent-trustee for payment on bonds. Old Coach Waterline AD No. 00-1 Bond Deposits Fund - Used to account for debt service payments AD No. 00-1 Bond Deposits collected through property tax assessments remitted to fiscal agent-trustee for payment on bonds. 172 of 281 May 7, 2019, Item #1.7   This page intentionally left blank. 173 of 281 May 7, 2019, Item #1.7 City of Poway Combining Statement of Fiduciary Net Position Agency Funds June 30, 2018 -143- Parkway Business Old Coach Centre CFD High Valley Water Line No. 88.1 Road AD No. 96-1 AD No. 00-1 Total Developer Bond Bond Deposits Bond Deposits Agency Deposits Deposits Fund Fund Fund Funds ASSETS Cash and investments 2,975,932$ 3,235$ 26,811$ 11,443$ 3,017,421$ Total assets 2,975,932$ 3,235$ 26,811$ 11,443$ 3,017,421$ LIABILITIES Accounts payable 19,898$ 3,257$ 26,620$ 11,362$ 61,137$ Developer deposits 2,956,034 (22) 191 81 2,956,284 Total liabilities 2,975,932$ 3,235$ 26,811$ 11,443$ 3,017,421$ 174 of 281 May 7, 2019, Item #1.7 City of Poway Combining Statement of Changes in Assets and Liabilities Agency Funds For the year ended June 30, 2018 -144- Balance Balance June 30, 2017 Additions Deletions June 30, 2018 Assets Cash and investments 2,893,316$ 705,725$ (623,109)$ 2,975,932$ Total assets 2,893,316$ 705,725$ (623,109)$ 2,975,932$ Liabilities Accounts payable 20,595$ 19,898$ (20,595)$ 19,898$ Developer deposits 2,872,721 685,827 (602,514) 2,956,034 Total liabilities 2,893,316$ 705,725$ (623,109)$ 2,975,932$ Assets Cash and investments -$ 3,235$ -$ 3,235$ Total assets -$ 3,235$ -$ 3,235$ Liabilities Accounts payable -$ 3,257$ -$ 3,257$ Developer deposits - - (22) (22) Total liabilities -$ 3,257$ (22)$ 3,235$ Assets Cash and investments 26,620$ 191$ -$ 26,811$ Total assets 26,620$ 191$ -$ 26,811$ Liabilities Accounts payable 26,620$ -$ -$ 26,620$ Developer deposits - 191 - 191 Total liabilities 26,620$ 191$ -$ 26,811$ HIGH VALLEY ROAD AD No. 96-1 BOND DEPOSITS FUND CFD No. 88-1 BOND DEPOSITS FUND DEVELOPER DEPOSITS FUND PARKWAY BUSINESS CENTRE 175 of 281 May 7, 2019, Item #1.7 City of Poway Combining Statement of Changes in Assets and Liabilities Agency Funds For the year ended June 30, 2018 (Continued) -145- Balance Balance June 30, 2017 Additions Deletions June 30, 2018 Assets Cash and investments 11,362$ 81$ -$ 11,443$ Total assets 11,362$ 81$ -$ 11,443$ Liabilities Accounts payable 11,362$ -$ -$ 11,362$ Developer Deposits - 81 - 81 Total liabilities 11,362$ 81$ -$ 11,443$ Assets Cash and investments 2,931,298$ 709,232$ (623,109)$ 3,017,421$ Total assets 2,931,298$ 709,232$ (623,109)$ 3,017,421$ Liabilities Accounts payable 58,577$ 23,155$ (20,595)$ 61,137$ Developer Deposits 2,872,721 685,827 (602,514) 2,956,034 Total liabilities 2,931,298$ 709,254$ (623,131)$ 3,017,421$ ALL AGENCY FUNDS AD No. 00-1 BND DEPOSITS FUND OLD COACH WATERLINE 176 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 177 of 281 May 7, 2019, Item #1.7   -146- Statistical Section 178 of 281 May 7, 2019, Item #1.7   This page intentionally left blank. 179 of 281 May 7, 2019, Item #1.7   -147- STATISTICAL SECTION This part of the City of Poway's comprehensive annual financial report presents detailed information as context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue sources. Debt Capacity These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 180 of 281 May 7, 2019, Item #1.7 City of Poway Net Position by Component Current and Prior Nine Fiscal Years (accrual basis of accounting) -148- Year Ended Year Ended Year Ended Year Ended June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Governmental activities Net investment in capital assets 108,494,835$ 82,020,900$ 83,171,720$ 86,341,264$ Restricted 20,641,475 20,453,766 20,846,798 27,543,292 Unrestricted - as restated 41,227,106 41,716,900 40,985,170 38,671,488 Total governmental activities net position 170,363,416 144,191,566 145,003,688 152,556,044 Business-type activities Net investment in capital assets 32,118,064 32,941,440 34,817,565 36,827,442 Restricted - - 272,301 Unrestricted - as restated 31,108,285 26,735,432 21,537,274 26,130,925 Total business-type activities net position 63,226,349 59,676,872 56,354,839 63,230,668 Primary government Net investment in capital assets 140,612,899 114,962,340 117,989,285 123,168,706 Restricted 20,641,475 20,453,766 20,846,798 27,815,593 Unrestricted - as restated 72,335,391 68,452,332 62,522,444 64,802,413 Total primary government net position 233,589,765$ 203,868,438$ 201,358,527$ 215,786,712$ The City is reporting its ten year history with the implementation of GASB 44 in fiscal year 2006. The City restated the Unrestricted Net Position as of June 30, 2014 for the implementation of GASB 68. Note: The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. The City implemented the retroactive reporting of infrastructure in fiscal year 2007. 181 of 281 May 7, 2019, Item #1.7 City of Poway Net Position by Component Current and Prior Nine Fiscal Years (accrual basis of accounting)  (Continued) -149- Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended June 30, 2014 June 30, 2013 June 30, 2012 June 30, 2011 June 30, 2010 June 30, 2009 90,442,061$ 94,657,067$ 93,097,532$ 50,255,141$ 46,412,443$ 36,713,773$ 28,126,711 25,637,627 24,523,246 70,931,373 78,369,565 99,252,462 33,998,725 63,928,726 59,865,964 (71,148,492) (93,996,026) (98,283,120) 152,567,497 184,223,420 177,486,742 50,038,022 30,785,982 37,683,115 38,731,821 40,746,468 42,846,682 43,976,262 43,508,027 39,127,764 279,579 279,604 279,575 280,450 280,450 280,469 26,867,660 33,305,899 34,543,173 36,469,136 35,320,341 34,194,395 65,879,060 74,331,971 77,669,430 80,725,848 79,108,818 73,602,628 129,173,882 135,403,535 135,944,214 94,231,403 89,920,470 75,841,537 28,406,290 25,917,231 24,802,821 71,211,823 78,650,015 99,532,931 60,866,385 97,234,625 94,409,137 (34,679,356) (58,675,685) (64,088,725) 218,446,557$ 258,555,391$ 255,156,172$ 130,763,870$ 109,894,800$ 111,285,743$ 182 of 281 May 7, 2019, Item #1.7 City of Poway Changes in Net Position Current and Prior Nine Years (accrual basis of accounting) Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year EndedJune 30, 2018June 30, 2017June 30, 2016June 30, 2015June 30, 2014June 30, 2013June 30, 2012June 30, 2011June 30, 2010June 30, 2009Expenses:Governmental Activities:General Government8,048,190$ 7,897,624$ 5,131,272$ 5,196,033$ 5,227,809$ 5,981,436$ 14,226,478$ 17,144,376$ 23,947,500$ 23,261,446$ Public Safety25,139,954 22,939,218 22,347,525 21,500,327 20,906,884 20,213,645 19,514,321 18,899,606 19,475,481 19,227,914 Public Works15,818,102 13,424,529 12,381,234 11,595,286 11,863,623 12,283,876 12,484,070 12,622,204 12,595,756 11,213,841 Development Services4,793,032 4,122,212 3,821,920 3,664,378 3,815,282 3,745,329 2,767,969 2,348,622 4,423,865 5,226,071 Community Services7,372,710 7,695,548 7,197,816 5,843,807 6,115,485 5,063,022 4,848,768 14,398,426 25,213,955 16,195,999 Interest and fiscal charges429,617 443,901 505,811 481,905 509,206 (249,757) 8,247,159 17,232,642 14,969,311 16,692,399 Total governmental expenses61,601,605 56,523,032 51,385,578 48,281,736 48,438,289 47,037,551 62,088,765 82,645,876 100,625,868 91,817,670 Business-type activities:Water25,502,524 21,005,264 21,502,464 22,349,556 23,314,233 22,367,122 20,652,724 18,143,829 18,226,463 18,697,576 Sewer8,797,837 8,564,971 8,730,955 9,451,529 9,434,739 10,069,336 8,374,223 7,651,228 7,522,634 8,011,470 Total business-type expenses34,300,361 29,570,235 30,233,419 31,801,085 32,748,972 32,436,458 29,026,947 25,795,057 25,749,097 26,709,046 Total primary government expenses95,901,966$ 86,093,267$ 81,618,997$ 80,082,821$ 81,187,261$ 79,474,009$ 91,115,712$ 108,440,933$ 126,374,965$ 118,526,716$ Program revenues:Governmental Activities:Charges for services:General Government352,830$ 326,019$ 276,113$ 280,796$ 260,802$ 118,347$ 120,126$ 96,397$ 91,745$ 105,084$ Public Safety2,171,552 2,067,306 1,884,369 1,759,543 1,908,337 2,155,607 2,030,510 2,121,984 2,131,729 2,413,197 Public Works2,740,562 2,727,104 2,733,956 2,699,095 2,753,917 2,738,196 3,537,666 4,422,522 4,479,896 4,868,530 Development Services1,975,450 1,648,388 1,780,160 1,558,945 1,534,304 1,384,543 1,049,318 1,584,838 1,332,714 1,388,448 Community Services2,595,229 2,862,789 2,625,260 2,570,423 2,436,024 2,243,495 2,160,596 2,111,476 2,821,718 3,033,466 Operating grants and contributions2,322,871 1,133,734 1,356,811 1,543,785 1,706,081 1,811,203 4,760,819 5,857,360 7,615,477 5,826,044 Capital grants and contributions198,584 270,802 120,271 90,379 66,168 99,831 833,137 1,155,384 1,246,555 2,110,463 Total program revenues12,357,078 11,036,142 10,776,940 10,502,966 10,665,633 10,551,222 14,492,172 17,349,961 19,719,834 19,745,232 Business-type activities:Charges for services:Water25,583,581 21,450,064 18,590,894 20,629,080 23,381,953 22,207,174 20,612,607 18,694,318 17,881,695 16,714,571 Sewer8,486,571 8,396,553 8,003,913 7,423,494 7,347,502 7,228,097 7,300,875 8,759,001 8,651,681 8,651,968 Capital grants and contributions3,589 - - - - - - - - - Total program revenues34,073,741 29,846,617 26,594,807 28,052,574 30,729,455 29,435,271 27,913,482 27,453,319 26,533,376 25,366,539 Total primary government program revenue46,430,819$ 40,882,759$ 37,371,747$ 38,555,540$ 41,395,088$ 39,986,493$ 42,405,654$ 44,803,280$ 46,253,210$ 45,111,771$ Net (expense)/revenueGovernmental activities(49,244,527) (45,486,890) (40,608,638) (37,778,770) (37,772,656) (36,486,329) (47,596,593) (65,295,915) (80,906,034) (72,072,438) Business-type activities(226,620) 276,382 (3,638,612) (3,748,511) (2,019,517) (3,001,187) (1,113,465) 1,658,262 784,279 (1,342,507) Total primary governmentnet (expense)(49,471,147)$ (45,210,508)$ (44,247,250)$ (41,527,281)$ (39,792,173)$ (39,487,516)$ (48,710,058)$ (63,637,653)$ (80,121,755)$ (73,414,945)$ -150-183 of 281 May 7, 2019, Item #1.7 City of Poway Changes in Net Position Current and Prior Nine Years (accrual basis of accounting) (Continued) General revenues and Other Changes in Net Position:Governmental Activities:Taxes:Property taxes 24,153,826$ 22,166,004$ 20,455,287$ 18,998,523$ 20,188,541$ 21,378,147$ 34,713,961$ 50,960,736$ 51,526,758$ 51,190,712$ Sales taxes13,981,478 13,774,763 13,172,467 12,520,103 13,418,087 13,692,553 11,276,884 10,418,322 9,833,390 10,325,455 Motor vehicle license tax- - - - - 22,085 26,685 262,412 150,641 173,673 Transient occupancy tax654,235 609,306 615,482 573,531 523,112 483,568 462,508 433,934 367,434 247,787 Franchise taxes1,611,000 1,466,388 1,639,956 1,696,186 1,555,816 1,491,227 1,512,878 1,465,926 1,491,231 1,590,066 Other Taxes3,630,276 3,247,931 3,423,165 3,192,356 2,761,696 1,816,574 626,421 616,466 629,589 597,880 Total taxes44,030,815 41,264,392 39,306,357 36,980,699 38,447,252 38,884,154 48,619,337 64,157,796 63,999,043 64,125,573 Investment earnings1,468,845 1,165,528 1,845,972 1,380,030 1,573,545 1,000,883 1,297,998 5,964,802 8,287,516 9,879,153 Miscellaneous3,285,592 1,805,482 1,195,244 1,330,954 1,846,762 3,374,664 542,954 512,858 1,251,844 607,387 Sale/disposal of capital assets- - - (385,253) - - (2,088,434) 13,561,625 - - Transfers426,823 439,366 467,591 (1,539,113) 1,425 (36,694) 2,284,985 350,874 470,498 147,503 Extraordinary Item26,204,302 - (9,758,882) - - - 128,406,347 - - - Total governmental activities75,416,377 44,674,768 33,056,282 37,767,317 41,868,984 43,223,007 179,063,187 84,547,955 74,008,901 74,759,616 Business-type activities:Property taxes- - - - - - - - - - Investment earnings264,609 102,656 230,982 149,611 217,194 23,733 65,593 254,279 463,177 1,987,778 Contributed capital- - - - - - - - 4,225,637 4,720,039 Miscellaneous3,938,311 3,382,361 1,077,957 1,261,448 82,930 47,583 276,439 55,363 503,595 933,994 Transfers(426,823) (439,366) (467,591) (310,940) (441,725) (407,588) (2,284,985) (350,874) (470,498) (147,503) Extraordinary Item- (4,078,565) - - - - - - - Total business-type activities3,776,097 3,045,651 (3,237,217) 1,100,119 (141,601) (336,272) (1,942,953) (41,232) 4,721,911 7,494,308 Total primary government79,192,474$ 47,720,419$ 29,819,065$ 38,867,436$ 41,727,383$ 42,886,735$ 177,120,234$ 84,506,723$ 78,730,812$ 82,253,924$ Change in Net PositionGovernmental activities26,171,850$ (812,122)$ (7,552,356)$ (11,453)$ 4,096,328$ 6,736,678$ 131,466,594$ 19,252,040$ (6,897,133)$ 2,687,178$ Business-type activities3,549,477 3,322,033 (6,875,829) (2,648,392) (2,161,118) (3,337,459) (3,056,418) 1,617,030 5,506,190 6,151,801 Total primary government29,721,327$ 2,509,911$ (14,428,185)$ (2,659,845)$ 1,935,210$ 3,399,219$ 128,410,176$ 20,869,070$ (1,390,943)$ 8,838,979$ Notes:The City is reporting its ten year history with the implementation of GASB 44 in fiscal year 2006.The City began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. The City implemented theretroactive reporting of infrastructure in fiscal year 2007.-151-184 of 281 May 7, 2019, Item #1.7 City of Poway Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) -152-  June 30, 2018 2017 2016 2015 General Fund Non-spendable 15,639,036$ 10,477,915$ 10,286,955$ 10,495,426$ Restricted - - - - Committed 19,321,583 - - 10,022,691 Assigned 16,613,992 40,438,366 40,367,436 15,870,595 Unassigned 14,063,706 14,649,159 16,010,227 29,285,138 Reserved - - - - Unreserved: Designated - - - - Undesignated - - - - Total General Fund 65,638,317$ 65,565,440$ 66,664,618$ 65,673,850$ All Other Governmental Funds Non-spendable -$ -$ -$ -$ Restricted 20,641,475 20,453,766 20,846,798 27,543,292 Committed - - - - Assigned - - - - Unassigned (15,860) - - - Reserved - - - - Unreserved: Designated: Special revenue funds - - - - Debt service funds - - - - Capital projects funds - - - - Undesignated: Special revenue funds - - - - Debt service funds - - - - Capital projects funds - - - - Total all Other Governmental Funds 20,625,615$ 20,453,766$ 20,846,798$ 27,543,292$ Total Fund Balance 86,263,932$ 86,019,206$ 87,511,416$ 93,217,142$ Note: The City implemented GASB 54, which established new classifications for fund balances, in Fiscal Year 2011. 185 of 281 May 7, 2019, Item #1.7 City of Poway Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Continued) -153- June 30, 2014 2013 2012 2011 2010 2009 10,134,007$ 10,157,087$ 10,218,860$ 10,151,108$ -$ -$ - - - - - - 10,026,079 9,999,309 10,019,883 10,037,638 - - 15,383,344 7,173,822 6,666,188 6,466,719 - - 26,624,039 30,695,920 22,906,009 23,955,242 - - - - - - 4,647,709$ 5,561,391$ - - - - 31,724,737 32,152,754 - - - - - - 62,167,469$ 58,026,138$ 49,810,940$ 50,610,707$ 36,372,446$ 37,714,145$ -$ -$ -$ -$ -$ -$ 28,126,711 25,929,921 23,733,859 62,455,191 - - - - - - - - - - - 8,564,840 - - - - - (88,658) - - - - - - 51,660,768$ 62,868,328$ - - - - - - - - - - - - - - - - 20,795,704 24,840,402 - - - - 5,913,093 5,982,341 - - - - - - - - - - - - 28,126,711$ 25,929,921$ 23,733,859$ 70,931,373$ 78,369,565$ 93,691,071$ 90,294,180$ 83,956,059$ 73,544,799$ 121,542,080$ 114,742,011$ 131,405,216$ 186 of 281 May 7, 2019, Item #1.7 City of Poway Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) -154-  2018 2017 2016 2015 Revenues Taxes 44,030,815$ 41,264,392$ 39,306,357$ 36,980,699$ Licenses and permits 698,848 691,524 608,914 546,742 Intergovernmental 1,449,537 978,759 1,252,604 1,361,671 Charges for services 2,682,918 2,870,826 2,629,776 2,564,852 Fines and forfeitures 150,968 137,772 121,246 135,609 Use of money and property 1,376,993 1,116,686 1,664,836 1,265,837 Developer Fees 5,538,625 4,339,215 4,317,628 4,013,227 Assessment levied 1,900,026 1,919,533 1,926,988 1,903,369 Other revenues 3,280,099 1,802,405 1,241,968 1,328,515 Total revenues 61,108,829 55,121,112 53,070,317 50,100,521 Expenditures Current: General government 4,356,172 4,920,707 4,713,981 4,372,077 Public safety 24,361,353 22,842,844 21,857,490 21,299,851 Public works 11,665,054 10,914,521 10,063,808 9,526,140 Development services 4,503,384 4,305,937 4,067,434 3,811,954 Community services 5,837,896 6,197,514 5,954,740 5,212,917 Capital outlay 10,049,051 7,898,228 2,855,748 1,603,241 Debt service: Principal 770,000 755,000 735,000 715,000 Principal-early retirement-sale of capital asset - - - Interest and fiscal charges 438,961 452,512 514,008 490,336 Transfers to fiduciary funds - - - - Debt Issuance Costs - - - - Tax shift - - - - Tax increment reimbursements - - - - Total expenditures 61,981,871 58,287,263 50,762,209 47,031,516 Excess of revenues over (under) expenditures (873,042) (3,166,151) 2,308,108 3,069,005 Other Financing Sources (Uses) Proceeds from issuance of debt - - - - Refunding bond activity -net - - - - Proceeds from sale of capital assets - - - - Transfers in (out) net 1,117,768 1,673,941 1,745,048 (146,043) Total other financing sources 1,117,768 1,673,941 1,745,048 (146,043) Extraordinary Items - - (9,758,882) - Net change in fund balance 244,726$ (1,492,210)$ (5,705,726)$ 2,922,962$ Debt service as a percentage of noncapital expenditures 2.1%2.2%2.5%2.6% Year Ended June 30, Note: The City implemented GASB 34 beginning with the fiscal year ended June 30, 2003. Prior to that time, interfund loans were treated as "Other Financing Sources" and classified as "Proceeds from issuance of debt" in the fund receiving the loan. 187 of 281 May 7, 2019, Item #1.7 City of Poway Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Continued) -155- 2014 2013 2012 2011 2010 2009 38,447,252$ 38,996,849$ 51,939,098$ 66,623,806$ 67,411,848$ 66,062,646$ 561,251 543,838 507,908 457,905 433,517 422,948 828,278 1,062,851 1,564,484 1,800,145 2,994,005 2,889,804 2,386,206 1,671,506 1,439,891 3,232,221 3,140,274 2,954,967 184,855 527,006 554,570 678,468 750,551 852,535 1,495,911 2,188,570 3,291,466 7,821,732 12,180,028 14,862,137 4,806,170 4,029,232 3,279,373 4,516,243 3,711,578 3,897,877 1,898,872 1,895,888 1,874,967 1,902,409 1,886,300 1,873,179 1,834,531 2,862,343 497,517 729,933 2,228,662 1,013,135 52,443,326 53,778,083 64,949,274 87,762,862 94,736,763 94,829,228 4,202,841 4,239,824 5,798,899 2,680,162 6,056,348 6,733,135 20,433,826 19,536,711 18,889,733 18,328,287 18,966,380 18,673,036 9,639,766 9,971,383 10,084,437 9,990,368 9,943,681 8,566,157 3,830,435 3,779,577 2,807,935 2,388,077 4,475,943 5,279,297 4,912,545 4,733,922 4,678,369 9,894,345 9,048,983 9,741,990 2,282,947 860,039 8,542,370 16,818,821 27,639,839 17,981,861 700,000 635,000 2,405,000 6,703,020 7,150,000 6,855,000 - - - 26,720,000 - - 506,527 570,087 6,820,619 17,972,119 14,943,766 16,732,005 440,300 444,282 - - - - - - - - - - - - - 2,820,770 13,700,882 - - - 48,711 5,948,554 2,380,740 6,205,709 46,949,187 44,770,825 60,076,073 120,264,523 114,306,562 96,768,190 5,494,139 9,007,258 4,873,201 (32,501,661) (19,569,799) (1,938,962) - 14,350,000 105,109 169,930 161,049 154,734 - (15,013,350) - - - - - 842,166 - 38,300,000 - - 843,982 1,225,186 3,823,436 831,800 2,745,545 644,351 843,982 1,404,002 3,928,545 39,301,730 2,906,594 799,085 - - (56,799,027) - - - 6,338,121$ 10,411,260$ (47,997,281)$ 6,800,069$ (16,663,205)$ (1,139,877)$ 2.6%2.7%15.8%22.1%21.3%25.8% Year Ended June 30, 188 of 281 May 7, 2019, Item #1.7 City of Poway Assessed Value of Taxable Property Last Ten Fiscal Years -156- Fiscal Year Assessed Value Ended Personal Net Taxable June 30,Land Improvements Property Total Exemptions Value before HOE 2009 3,647,796,486$ 4,472,160,193$ 254,000,489$ 8,373,957,168$ (166,537,126)$ 8,207,420,042$ 2010 3,640,861,781 4,548,446,929 288,729,686 8,478,038,396 (183,766,176) 8,294,272,220 2011 3,606,251,228 4,540,602,915 276,448,124 8,423,302,267 (178,136,001) 8,245,166,266 2012 3,638,418,566 4,608,371,669 286,292,343 8,533,082,578 (193,398,758) 8,339,683,820 2013 3,604,077,934 4,615,585,498 294,522,436 8,514,185,868 (212,901,964) 8,301,283,904 2014 3,770,334,144 4,733,730,176 298,807,480 8,802,871,800 (227,065,282) 8,575,806,518 2015 3,980,268,935 4,944,098,407 286,435,733 9,210,803,075 (236,519,578) 8,974,283,497 2016 4,198,319,498 5,193,793,825 287,853,187 9,679,966,510 (243,798,083) 9,436,168,427 2017 4,360,983,790 5,372,307,118 303,567,743 10,036,858,651 (248,041,928) 9,788,816,723 2018 4,572,607,138 5,547,678,336 299,989,126 10,420,274,600 (255,512,475) 10,164,762,125 Source: San Diego County Assessor's Office In 1978 the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to property tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property being taxed. Each year the assessed value of property may be increased by an "inflation factor" that may not exceed 2%. With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point the new assessed value is fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed value base has become significantly undervalued when compared to the true market value of the property. Because the true market value is not tied to any type of annual valuation process, there is no reliable means of determining the market value of the parcels within the City and therefore this amount is not disclosed. 189 of 281 May 7, 2019, Item #1.7 City of Poway Assessed Value of Taxable Property Last Ten Fiscal Years (Continued) -157-  Assessed Value (Continued)Change Estimated Total Homeowners Net Taxable From Tax Direct Exemptions (HOE) Value Prior Year Revenues Tax Rate (78,430,066)$ 8,128,989,976$ 1.86% 9,282,993$ 0.211% (78,218,791) 8,216,053,429 1.07% 9,189,474 0.211% (77,678,375) 8,167,487,891 -0.59% 9,169,316 0.211% (76,787,840) 8,262,895,980 1.17% 9,374,419 0.211% (75,843,150) 8,225,440,754 -0.45% 9,311,665 0.211% (74,913,680) 8,500,892,838 3.35% 9,648,224 0.211% (74,448,910) 8,899,834,587 4.69% 10,117,764 0.211% (73,706,162) 9,362,462,265 5.20% 10,614,545 0.211% (73,044,158) 9,715,772,565 3.77% 11,043,425 0.211% (72,492,736) 10,092,269,389 3.88% 11,498,968 0.211% 190 of 281 May 7, 2019, Item #1.7 City of Poway Direct and Overlapping Property Tax Rates Last Ten Fiscal Years -158- Overlapping Rates Poway Educational Palomar Total 1% Fiscal Year City Unified Revenue Community Property Ended Direct School San Diego Augmentation College All Tax June 30,Rate District County Fund District Other Rate 2009 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% 2010 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% 2011 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% 2012 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% 2013 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% 2014 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% 2015 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% 2016 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% 2017 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% 2018 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000% Rates for Voter Approved Bond Indebtedness Total 1%Poway Total Fiscal Year Property Unified Property Ended Tax City School All Tax June 30,Rate Rate District Other Rate 2009 1.000% 0.000% 0.047% 0.035% 1.082% 2010 1.000% 0.000% 0.055% 0.031% 1.086% 2011 1.000% 0.000% 0.055% 0.042% 1.097% 2012 1.000% 0.000% 0.055% 0.041% 1.096% 2013 1.000% 0.000% 0.055% 0.041% 1.096% 2014 1.000% 0.000% 0.055% 0.040% 1.095% 2015 1.000% 0.000% 0.055% 0.040% 1.095% 2016 1.000% 0.000% 0.055% 0.040% 1.095% 2017 1.000% 0.000% 0.055% 0.045% 1.100% 2018 1.000% 0.000% 0.055% 0.044% 1.100% Source: San Diego County Assessor's Office In 1978 the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to property tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property being taxed. The 1.00% is shared by all taxing agencies which the subject property resides within. Because the rate is fixed at 1.00%, each agency's portion of the 1.00% does not change materially from year-to-year. Rates over the 1.00% are for voter approved bonded indebtedness. 191 of 281 May 7, 2019, Item #1.7 City of Poway Principal Secured Property Tax Payers Current Year and Nine Years Ago -159- 2018 2009 Taxable % of Total Taxable % of Total Assessed City Assessed Assessed City Assessed Secured Value Rank Secured Value Secured Value Rank Secured Value Sorrento West Properties Inc 315,394,937$ 1 3.03%88,745,482$ 1 1.06% HCPLS Poway I LLC 101,311,386 2 0.97% Ventas Inc 80,690,401 3 0.77% San Miguel Valley Corp 65,769,732 4 0.63% Hometown Poway Royal Estates LLC 42,141,634 5 0.40% P M I Summerlyn LLC 41,973,000 6 0.40% Sysco Food Services 37,500,000 7 0.36%35,374,370 5 0.42% Costco Wholesale Corp 36,499,129 8 0.35%35,326,203 6 0.42% Poway Crossings Investors LLC 35,369,861 9 0.34%31,275,000 9 0.37% C T Crosthwaite I LLC 34,731,000 10 0.33% Slough Poway I LLC 66,779,944 3 0.80% Prudential Insurance 39,714,613 4 0.47% PDP Pomerado LLC 69,558,551 2 0.83% Government Employees Insurance Co.35,299,468 7 0.42% Fairfield Township LLC 33,686,003 8 0.40% Poway Tech Center Investors LLC 27,030,000 10 0.32% 791,381,080$ 7.58%462,789,634$ 5.53% Source: San Diego County Assessor's Office 192 of 281 May 7, 2019, Item #1.7 City of Poway Assessed Value of Taxable Property Successor Agency & Redevelopment Tax Increment Property Tax Last Ten Fiscal Years Fiscal YearAssessed ValueChange Estimated TotalEndedPersonalBase Year Net Taxable FromTaxDirectJune 30,Land Improvements PropertyTotalExemptionsValuesValue Prior Year Revenues Tax RateRedevelopment Agency20091,666,217,121$ 2,208,050,046$ 191,508,808$ 4,065,775,975$ (66,638,280)$ (186,287,869)$ 3,812,849,826$ 1.73% 38,500,704$ 1.010%20101,698,144,577 2,286,610,454 213,648,005 4,198,403,036 (68,141,344) (186,287,869) 3,943,973,823 3.44% 39,822,711 1.010%20111,669,652,573 2,277,541,902 210,644,139 4,157,838,614 (67,140,049) (186,287,869) 3,904,410,696 -1.00% 39,482,933 1.011%Successor Agency20121,645,381,909 2,296,714,929 219,462,356 4,161,559,194 (73,438,572) (186,287,869) 3,901,832,753 -0.07% 39,018,328 1.000%20131,625,001,094 2,299,815,065 244,826,073 4,169,642,232 (90,214,209) (186,287,869) 3,893,140,154 -0.22% 38,931,402 1.000%20141,673,995,306 2,366,297,428 249,192,369 4,289,485,103 (94,861,189) (186,287,869) 4,008,336,045 2.96% 40,083,360 1.000%20151,765,636,957 2,462,514,646 237,703,511 4,465,855,114 (95,034,853) (186,287,869) 4,184,532,392 4.40% 41,845,324 1.000%20161,858,719,377 2,594,263,565 243,714,010 4,696,696,952 (99,167,944) (186,287,869) 4,411,241,139 5.42% 44,112,411 1.000%20171,913,629,433 2,680,780,152 252,543,674 4,846,953,259 (99,807,403) (186,287,869) 4,560,857,987 3.39% 45,608,580 1.000%20182,000,869,745 2,762,424,969 245,541,310 5,008,836,024 (101,399,206) (186,287,869) 4,721,148,949 3.51% 47,211,489 1.000%Source: San Diego County Assessor's OfficeIn 1978 the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to property tax collections. Proposition 13established a property tax of 1% based upon the assessed value of the property being taxed. Each year the assessed value of property may be increased by an"inflation factor" that may not exceed 2%. With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point the new assessedvalue is fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed value base has become significantly undervaluedwhen compared to the true market value of the property. Because the true market value is not tied to any type of annual valuation process, there is no reliable meansof determining the market value of the parcels within the City and therefore this amount is not disclosed.AB XI 26 dissolved all Redevelopment Agencies in California and created Successor Agencies to manage the dissolution process which will last the lifeof eachagency. Poway's Redevelopment Agency was scheduled to expire in January 2037.-160-193 of 281 May 7, 2019, Item #1.7 City of Poway Redevelopment Property Tax Levies and Collections Fiscal Years 2009-2012 -161-  Within The Year of Levy Collections Fiscal Year Current Current Percent From Prior Ended Secured Secured of Levy Years'Total June 30,Tax Levy Collected Collected Levies Collections 2009 38,031,377$ 37,099,651$ 97.55%1,465,939$ 38,565,590$ 2010 39,609,344 38,592,272 97.43%1,495,015 40,087,287 2011 39,189,880 38,684,907 98.71%1,399,870 40,084,777 2012 39,162,627 21,655,038 55.30%580,773 22,235,811 Source: San Diego County Assessor's Office Note 1:San Diego County does not break out prior years' collections by fiscal year, therefore, the amount reported in the Collections From Prior Years' Levies column is the cumulative amount collected during that fiscal year for all prior year levies, not the amount related to each fiscal year. Note 2:As part of AB XI 26 the Agency's last tax increment distribution was received in January 2012. Consequently, the Percent of Levy Collected was only 55.30%. Note 3:AB XI 26 dissolved all Redevelopment Agencies in California and created Successor Agencies to manage the dissolution process which will last the life of each agency. Poway's Redevelopment Agency was scheduled to expire in January 2037. Note 4:As part of AB XI 26 the Redevelopment Agency' was dissolved and the last tax increment distribution was received in January 2012, which is why there is less than ten years of activity presented. 194 of 281 May 7, 2019, Item #1.7 City of Poway General Property Tax Levies and Collections Last Ten Fiscal Years Within The Year of LevyCumulative Prior Years of LevyTotal Collections to DateFiscal YearCurrentCurrentPercentCollections PercentEndedSecuredSecuredof LevyPrior From Prior of Prior Year'sTotalTotalJune 30,Tax LevyCollectedCollected Year's Levies Year's Levies Levies Collected Levies Collections Percentage200917,295,459$ 16,805,480$ 97.17% 674,580$ 378,562$ 56.12% 17,970,039$ 17,184,042$ 95.63%201016,665,674 16,276,757 97.67% 849,654 490,66857.75% 17,515,328 16,767,426 95.73%201114,772,947 14,515,679 98.26% 808,521 411,30550.87% 15,581,468 14,926,983 95.80%201214,976,590 14,752,163 98.50% 702,501 232,77333.13% 15,679,092 14,984,936 95.57%201315,044,676 14,897,994 99.03% 550,273 214,57138.99% 15,594,949 15,112,565 96.91%201415,325,043 15,160,972 98.93% 507,586 226,14644.55% 15,832,630 15,387,118 97.19%201512,524,910 12,418,741 99.15% 470,515 278,06959.10% 12,995,425 12,696,810 97.70%201612,958,510 12,859,128 99.23% 312,585 143,34545.86% 13,271,094 13,002,474 97.98%201713,390,895 13,279,054 99.16% 285,552 140,08149.06% 13,676,447 13,419,135 98.12%2018 13,802,364 13,694,43399.22% 267,874133,32549.77% 14,070,237 13,827,75898.28%Source: San Diego County Assessor's OfficeNote: San Diego County does not break out prior years' collections by fiscal year, therefore, the amount reported in the Collections From Prior Years' Levies column is the cumulative amount collected during that fiscal year for all prior year levies, not the amount related to each fiscal year. The significant decrease in the June 30, 2015 Current Secured Tax Levy was due to the final assessment for theCommunity Facilities District #88-1 being in the prior fiscal year. That amount was $3,209,813.-162-195 of 281 May 7, 2019, Item #1.7 City of Poway Ratios of Outstanding Debt by Type Last Ten Fiscal Years Business-typeGovernmental Activities Activities Private Purpose TrustFiscal Year Tax Certificates Total Percentage Certificates Tax TotalEnded Allocation of Loan Revenue Primary of Personal Per of Allocation Loan PrivateJune 30, Bonds Participation Payable Bonds Government Income Capita Participation Bonds Payable Purpose Trust2009 240,800,638$ 50,068,163$ 2,282,702$ 1,568,547$ 294,720,050$ 12.61% 5,765 - - - - 2010234,987,072 48,454,096 2,400,513 1,380,571 287,222,252 12.39% 5,518 - - - - 2011228,957,393 20,870,836 2,542,009 1,182,394 253,552,632 11.53% 5,265 - - - - 2012- 17,627,771 - 969,149 18,596,920 0.81% 384 2,344,312 222,516,942 2,672,503 227,533,757 2013- 16,753,498 - 745,904 17,499,402 0.72% 360 1,986,311 215,576,452 2,780,463 220,343,226 2014- 16,261,467 - 512,660 16,774,127 0.69% 342 1,618,877 208,316,472 2,885,549 212,820,898 2015- 15,522,575 - 264,415 15,786,990 0.62% 322 1,237,034 200,633,015 2,971,614 204,841,663 2016- 14,764,508 - - 14,764,508 0.54% 295 840,722 172,587,873 3,087,885 176,516,480 2017- 13,987,299 - - 13,987,299 0.49% 278 430,053 163,593,731 3,193,031 167,216,815 2018- 13,195,978 - - 13,195,978 0.45% 263 - 154,504,587 3,338,564 157,843,151 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. The Tax Allocation Bonds were refunded in July 2015.Source: City of Poway Finance Department-163-196 of 281 May 7, 2019, Item #1.7 City of Poway Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years -164-  Outstanding General Bonded Debt Fiscal Year Tax Percent of Ended Allocation Assessed Per June 30, Bonds Value (a) Capita 2009 -$ 0.00% - 2010 - 0.00% - 2011 - 0.00% - 2012 222,516,942 2.61% 4,599 2013 215,576,452 2.53% 4,439 2014 208,316,472 2.37% 4,253 2015 200,633,015 2.18% 4,091 2016 172,587,873 1.78% 3,445 2017 163,593,731 1.63% 3,255 2018 154,504,587 1.48% 3,077 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (a) Assessed value has been used because the actual value of taxable property is not readily available in California. The Tax Allocation Bonds were refunded in July 2015. Source: City of Poway Finance Department 197 of 281 May 7, 2019, Item #1.7 City of Poway Direct and Overlapping Debt As of June 30, 2018 -165-  2017-18 Assessed Valuation:10,164,762,125$ Estimated Share Debt %of Overlapping OVERLAPPING TAX AND ASSESSMENT DEBT:Outstanding Applicable (1)Debt Metropolitan Water District 60,600,000$ 0.369%223,614$ Palomar Community College District 627,826,320 8.764%55,022,699 Poway Unified School District School Facilities Improvement District No. 2002-1 139,985,766 39.710%55,588,348 Poway Unified School District School Facilities Improvement District No. 2007-1 176,749,937 40.348%71,315,065 Escondido Union High School District 87,884,694 0.077%67,671 San Pasqual Union School District 243,535 2.284%5,562 Palomar Pomerado Hospital District 436,358,740 12.787%55,797,192 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 1,529,648,992$ 238,020,151$ DIRECT & OVERLAPPING GENERAL FUND DEBT: San Diego County General Fund Obligations 273,220,000$ 2.050%5,601,010$ San Diego County Pension Obligations 558,525,000 2.050%11,449,763 San Diego County Superintendent of Schools General Fund Obligations 10,785,000 2.050%221,093 Palomar Community College District Certificates of Participation 2,720,000 8.764%238,381 Escondido Union High School District Certificates of Participation 55,510,000 0.077%42,743 Poway Unified School District Certificates of Participation 61,718,869 23.811%14,695,880 City of Poway Certificates of Participation 13,195,977 100.000%13,195,977 TOTAL OVERLAPPING GENERAL FUND DEBT 975,674,846$ 45,444,847$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): Tax Allocation Bonds 138,200,000$ 100.000% 138,200,000$ Certificates of Participation - 100.000% - TOTAL OVERLAPPING TAX INCREMENT DEBT 138,200,000$ 138,200,000$ TOTAL DIRECT DEBT 13,195,977$ TOTAL OVERLAPPING DEBT 408,469,021$ COMBINED TOTAL DEBT 421,664,998$ (2) Ratios to 2017-18 Assessed Valuation: Total Overlapping Tax and Assessment Debt 2.34% Total Direct Debt 0.13% Combined Total Debt 4.15% Ratios to Redevelopment Successor Agency Incremental Valuation ($4,721,148,949): Total Overlapping Tax Increment Debt 2.93% Notes: (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Source: California Municipal Statistics, Inc. and City of Poway Finance Department Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value. 198 of 281 May 7, 2019, Item #1.7 City of Poway Legal Debt Margin Information Last Ten Fiscal Years -166-  2018 2017 2016 2015 2014 Assessed valuation 5,443,613,176$ 5,227,958,736$ 5,024,927,288$ 4,789,751,105$ 4,567,470,473$ Conversion percentage 25%25%25%25%25% Adjusted assessed valuation 1,360,903,294 1,306,989,684 1,256,231,822 1,197,437,776 1,141,867,618 Debt limit percentage 15%15%15%15%15% Debt limit 204,135,494 196,048,453 188,434,773 179,615,666 171,280,143 Total net debt applicable to limit: General obligation bonds - - - - - Legal debt margin 0.00%0.00%0.00%0.00%0.00% Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. Source: City of Poway Administrative Services Department San Diego County Assessors Office The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. FISCAL YEAR 199 of 281 May 7, 2019, Item #1.7 City of Poway Legal Debt Margin Information Last Ten Fiscal Years (Continued) -167-  2013 2012 2011 2010 2009 4,408,143,750$ 4,437,851,067$ 4,340,755,570$ 4,350,898,397$ 4,394,570,216$ 25%25%25%25%25% 1,102,035,938 1,109,462,767 1,085,188,893 1,087,724,599 1,098,642,554 15%15%15%15%15% 165,305,391 166,419,415 162,778,334 163,158,690 164,796,383 - - - - - 0.00%0.00%0.00%0.00%0.00% FISCAL YEAR 200 of 281 May 7, 2019, Item #1.7 City of Poway Pledged Revenue Coverage Last Ten Fiscal Years -168-  Tax Allocation Bonds Fiscal Year Debt Service Ended Tax RPTTF June 30, Increment Distribution Principal Interest Total Coverage 2009 38,940,302$ -$ 5,340,000$ 12,068,451$ 17,408,451$ 2.24 2010 39,377,603 - 5,555,000 11,877,545 17,432,545 2.26 2011 39,015,261 - 5,775,000 11,658,142 17,433,142 2.24 2012 21,926,632 16,047,570 6,180,000 11,411,148 17,591,148 2.16 2013 - 39,511,570 6,695,000 11,169,832 17,864,832 2.21 2014 - 40,907,420 7,020,000 10,889,354 17,909,354 2.28 2015 - 42,495,591 7,450,000 10,565,336 18,015,336 2.36 2016 - 44,786,412 7,440,000 6,558,087 13,998,087 3.20 2017 - 46,953,802 7,110,000 6,895,377 14,005,377 3.35 2018 - 47,750,166 7,205,000 6,802,425 14,007,425 3.41 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. RPTTF is the acronym for the Redevelopment Property Tax Trust Fund Source: City of Poway Administrative Services Department 201 of 281 May 7, 2019, Item #1.7 City of Poway Demographic and Economic Statistics Last Ten Calendar Years -169-  Per Capita Calendar Personal Personal Labor Unemployment Year Population Income Income Force Rate 2009 51,126 2,336,764,956$ 45,706$ 28,100 6.1% 2010 52,056 2,318,838,039 44,545 28,000 6.3% 2011 48,155 2,198,908,930 45,663 27,900 6..2% 2012 48,382 2,292,564,112 47,385 28,600 5.5% 2013 48,559 2,418,759,897 49,811 29,100 4.3% 2014 48,979 2,434,069,144 49,696 28,900 3.6% 2015 49,041 2,530,249,449 51,595 26,000 3.2% 2016 50,103 2,723,859,688 54,365 25,900 3.3% 2017 50,253 2,832,825,802 56,371 25,500 2.8% 2018 50,207 2,934,102,264 58,440 26,000 3.2% Source: Population - State of California Department of Finance Personal Income - State of California Department of Finance/U.S. Bureau of Economic Analysis Employment Information - State of California Employment Development Department - Fiscal Year 202 of 281 May 7, 2019, Item #1.7 City of Poway Principal Employers Current Year and Nine Years Prior -170-  2018 2009 Percent of Percent of Number of Total Number of Total Employer Employees Rank Employment Employees Rank Employment General Atomics Aeronautical Systems 4,571 1 17.58% Geico Direct 1,720 2 6.62%1,500 1 5.34% Poway Unified School District 1,366 3 5.25%1,462 2 5.20% Delta Design, Inc.750 4 2.88% Pomerado Hospital 738 5 2.84%743 3 2.64% A.O. Reed & Co.450 6 1.73% Sysco Food Services of SD 385 7 1.48%456 5 1.62% Walmart 367 8 1.41%340 8 1.21% H M Electronics, Inc 300 9 1.15% Arch Health Partners 300 10 1.15% Cohu Inc.650 4 2.31% Digirad Corporation 434 6 1.54% First American Credco 416 7 1.48% City of Poway 310 9 1.10% Mitchell Repair Information Company 265 10 0.94% Total 10,947 42.10%6,576 23.40% Total City Labor Force 26,000 28,100 Sources: City of Poway Economic Development Division-by Employer State of California Employment Development Department-Total City Labor Force 203 of 281 May 7, 2019, Item #1.7 City of Poway Full-Time-Equivalent City Employees by Function Last Ten Fiscal Years -171-  Function 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 General government 30 31 31 29 28 27 31 33 40 35 Public Safety (a)58 56 56 55 54 54 54 54 54 57 Public works 82 85 84 81 79 81 85 84 83 92 Redevelopment Services - - - - - - - 9 9 9 Community Services 20 20 20 20 20 20 20 20 20 27 Development Services 25 22 22 21 22 23 30 29 29 37 215 214 213 206 203 205 220 229 235 257 Notes: Amounts shown are the number of positions approved in each operating budget for the fiscal year. (a) Law enforcement services are provided through contract with the County of San Diego Sheriff. Source: City of Poway Financial Plan The City is reporting its ten year history starting with the implementation of GASB 44 in fiscal year 2006, and in this instance was able to add an additional two years. 204 of 281 May 7, 2019, Item #1.7 City of Poway Operating Indicators Current and Prior Nine Years -172-  Function 2018 2017 2016 2015 2014 General government: Business registrations issued 1,859 1,987 1,509 1,510 1,285 Vendor payments processed 6,203 6,689 6,623 6,705 6,426 Public Safety: Arrests made 900 900 1,079 1,214 1,069 Fire emergency responses 5,146 4,755 4,564 4,229 4,099 Safety Inspections 2,451 2,652 2,587 3,069 2,899 Development Services: Building permits issued (1)2,465 2,013 2,444 2,070 1,504 Building inspections 9,023 9,600 9,162 12,488 8,221 Culture and recreation: Performing arts center attendance 56,573 56,637 57,908 60,276 55,652 Library-number of holdings in collection (3)(3)(3)(3)93,951 Library-number of holdings circulated 897,531 863,874 782,599 733,689 709,823 Athletic field permits issued 335 285 225 232 282 Highways and streets: Roads resurfaced in square feet 204,000 306,543 306,000 237,024 299,038 Roads slurry sealed in square feet 4,231,308 4,627,262 4,933,522 4,378,483 4,379,695 Pot holes repaired/work orders (2)189 191 213 193 175 Water: Residential water customers 12,662 12,631 12,625 12,765 12,674 Commercial water customers 500 495 493 658 645 All other water customers 816 812 811 ---------------------------------------- Average daily consumption (mg)9.47 8.13 7.39 8.21 10.66 Sewer: Residential sewer customers 11,410 11,391 11,381 11,530 11,498 Commercial sewer customers 480 475 472 630 627 All other sewer customers 328 329 329 ---------------------------------------- Average daily treatment (mg)2.35 2.68 2.48 2.53 2.73 Source: City of Poway Notes: (1) In Fiscal Year 2007-08 the Development Services Department changed the method used to count the number of permits issued which led to the large decrease from the previous year. (2) In Fiscal Year 2008-09 the Public Works Department began reporting pot holes fixed rather than pot holes work orders. (3) Because of County-wide interbranch loan program this statistic is no longer tracked. 205 of 281 May 7, 2019, Item #1.7 City of Poway Operating Indicators Current and Prior Nine Years (Continued) -173-  2013 2012 2011 2010 2009 1,522 1,418 1,317 1,192 942 6,770 7,020 7,063 7,804 8,936 1,038 1,123 1,145 1,334 1,015 3,846 3,638 3,811 3,691 3,711 2,687 2,474 2,863 1,606 2,104 1,345 1,237 1,176 1,144 1,157 8,349 5,981 6,126 6,580 7,417 59,389 59,897 53,249 61,214 68,993 75,000 96,000 104,367 125,977 124,977 782,288 693,783 765,704 638,494 562,865 156 161 152 148 144 188,561 201,968 207,968 290,877 600,000 3,928,425 4,563,496 4,369,160 4,369,503 4,980,000 644 1,323 571 193 147 12,509 12,523 12,439 12,492 12,458 529 464 496 514 514 ----------------------not reported------------------------------------------------------------- 10.16 9.36 8.99 9.57 11.61 11,474 11,383 11,241 11,225 11,191 623 782 770 774 770 ----------------------not reported------------------------------------------------------------- 2.86 3.01 3.27 3.15 3.43 206 of 281 May 7, 2019, Item #1.7 City of Poway Capital Assets Statistics Current and Prior Nine Years -174-  Function 2018 2017 2016 2015 2014 Public Safety: Number of fire stations 3 3 3 3 3 Number of sheriff stations 1 1 1 1 1 Public works: Total number of streetlights 3,059 3,059 3,059 3,059 3,059 Signal controlled intersections 56 56 56 56 56 Health and welfare: Senior center facilities 1 1 1 1 1 Culture and recreation: Number of Libraries 1 1 1 1 1 Number of Performing Arts Centers 1 1 1 1 1 Number of Parks 19 19 19 19 19 Acres of developed parks 232 232 232 232 232 Number of reserves/preserves 2 2 2 2 2 Acres of reserves/preserves 2,400 2,400 2,400 2,400 2,400 Miles of trails 56 56 56 56 56 Highways and streets: Miles of roadway 165 165 165 165 165 Water: Miles of water lines 289 289 289 289 289 Water storage capacity (billon/gallons)1.11 1.11 1.11 1.11 1.11 Sewer: Miles of sewer lines 186 186 186 186 186 Miles of storm sewers 64 64 64 64 64 Source: City of Poway 207 of 281 May 7, 2019, Item #1.7 City of Poway Capital Assets Statistics Current and Prior Nine Years (Continued) -175-  2013 2012 2011 2010 2009 3 3 3 3 3 1 1 1 1 1 3,059 3,073 3,073 3,045 3,045 55 55 55 55 55 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 19 19 19 18 18 232 232 232 232 232 2 2 2 2 2 2,400 2,400 2,400 2,400 2,400 56 56 56 56 56 165 165 165 165 165 289 289 289 253 253 1.11 1.11 1.11 1.11 1.11 186 186 186 175 175 64 64 64 64 64 208 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 209 of 281 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 735 E. Carnegie Dr. Suite I 00 San Bernardino, CA 92408 909 889 087 I T 909 889 5361 F ramscpa.net PARTNERS Brenda L. Odle, CPA, MST Terry P. Shea, CPA Kirk A . Franks, CPA Scott W . Manno, CPA , CGMA Leena Shanbhag, CPA, MST, CGMA Bradferd A. Welebir, CPA, MBA, CGMA Jay H. Zercher, CPA (Partner Emeritus) Phillip H. Waller, CPA (Partner Eme ritus) 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 Eve lyn Morenti n-Barcena, CPA Jin Gu, CPA, MT Veronica Hernandez, CPA M EMBERS American Institute of Certified Public Accountants PCPS The A/CPA A//iance (or CPA Firms Govemme11ta/ Audit Quality Center Employee Benc(,t Plan Audit Qualit y Center Cali fornia Soci ety of Certified Public Accountants 210 of 281 ROGERS , ANDERSON, MALODY & SCOTT, LLP CERT IFI ED PUBLIC ACCOUNTANTS, SINCE 1948 Re p o rt on Inte rna l Control Over Fina ncia l Reporting a nd o n Co m p lia n ce a n d Other Matte rs bas e d o n a n Audit of Fin an c ia l Stateme nts P e rform e d in A ccordance w ith Governme nt A uditing Standa rds INDEPENDEN T AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of 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 a udits con tained in Government Auditing Standards issued by the Comptroller Genera l of the United States, the accompanying financia l statements of the governmental activities, t he bus iness-type activities, each major f und, and t he aggregate remaining fund i nformation of the City of Poway, Cal ifornia ("City"), as of and for the year ended June 30, 20 18, and the related notes to the fi nancial statements, which collectively com prise the City's basic financ ial st atements, and have issued our report thereon dat ed January 28, 2019. Internal Co ntro l over F inancial Re porting In planning and performing our audit of the financ ia l statements, we cons idered the City's internal control over financial reporting (internal contro l) to determi ne the audit procedu res that a re appropriate in t he circumstances for the purpose of expressing our opinions on the financial statements, but not fo r the purpose of expressing an opinion on t he effectiveness of the City's internal co ntrol. According ly, we do not express an opinion on t he effectiveness of the City's Intern al cont rol. A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned f unctions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that t here is a reasonable possibility that a material misstatement of the entity's f inancial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness , yet important enough to merit attention by those charged with governance. 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 i n internal control that might be material weaknesses or, sign ificant deficie ncies. Given these limitations, during our audit we did not identify any deficiencies in interna l control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. -176- STABILITY. ACCURACY. TRUST.   -177- Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’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 City’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. San Bernardino, California January 28, 2019 211 of 281 May 7, 2019, Item #1.7     Poway Housing Authority Poway, California Basic Financial Statements and Independent Auditor’s Report For the Year Ended June 30, 2018 ATTACHMENT B 212 of 281 May 7, 2019, Item #1.7     Poway Housing Authority Basic Financial Statements For the Year Ended June 30, 2018 TABLE OF CONTENTS Page Independent Auditor's Report………………………………………………………………1 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position……………………………………………………………….4 Statement of Activities………………………….………………………………………..5 Fund Financial Statements Balance Sheet……………………………………………………………………………6 7 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 25 Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ………………………………. Statement of Revenues, Expenditures and Changes in Fund Balance…………….. Reconciliation of the Balance Sheet to the Statement of Net Position……………… 213 of 281 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 735 E. Carnegie Dr. Suite I 00 San Bernardi no, CA 92408 909 889 0871 T 909 889 5361 F ramscpa.net PARTNERS Brenda L. Odle, CPA, MST Ter ry P. Shea. C PA Kirk A. Franks, CPA Scott W. Manno, CPA. CGMA Leena Shanbhag, CPA, MST, CGMA Bradferd A . Wele bir, CPA. MBA, CGMA Jay H . Zercher, CPA (Parmer Emeri tus) Phillip H . Waller, CPA (Partn•r Emeritus) MANAGERS / STAFF Jenny Liu, CPA. MST Seong-Hyea Lee, CPA, MBA Charles De Simoni, CPA Gardenya D uran, CPA Brianna Schultz, CPA Samuel Singery, C PA Jing Wu, CPA Evelyn Morentin-Barcena, CPA Jin Gu, CPA. MT Veronica Hernandez, CPA MEMBERS American Institute of Certi fied Publ ic Accountants PCPS The A /CPA Allicm cc (or CPA Firms Govc111me11 tal Audit Qualily Center Employee 0c11cfit Plan Audi! Qrrnlity CcMer C;,IHornia Society of Certified Public Accountants 214 of 281 ROGERS , ANDERSON, MALODY & SCOTT, LLP CERT I FIED 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 , Californ ia (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 Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from 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 aud iting 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 selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such o pinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. -1- STABILITY. ACCURACY. TRUST.   ‐2- 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. 215 of 281 May 7, 2019, Item #1.7   ‐3- 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.    San Bernardino, California January 28, 2019 216 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 217 of 281 May 7, 2019, Item #1.7     Basic Financial Statements 218 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Statement of Net Position June 30, 2018 The accompanying notes are an integral part of these financial statements. -4- 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$ 219 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Statement of Activities For the Year Ended June 30, 2018 The accompanying notes are an integral part of these financial statements. -5- Governmental Activities Net (Expenses) 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$ Program Revenues Contributions Grants and 220 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Balance Sheet Governmental Fund June 30, 2018 The accompanying notes are an integral part of these financial statements. -6- 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$ 221 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Fund June 30, 2018 The accompanying notes are an integral part of these financial statements. -7- 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$ 222 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund For the Year Ended June 30, 2018 The accompanying notes are an integral part of these financial statements. -8- 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 105,248 Fund balance, beginning 2,666,200 Fund balance, ending 2,771,448$ 223 of 281 May 7, 2019, Item #1.7 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 The accompanying notes are an integral part of these financial statements. -9- Net change in fund balance - total governmental fund 105,248$ 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 820,000 Change in net position of governmental activities 925,248$ 224 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐10- 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. 225 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐11- Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting/Measurement Focus (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. 226 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐12- 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. 227 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐13- 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 228 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐14- 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. 229 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐15- 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. 230 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐16- 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. 231 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐17- 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 Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer U.S. Treasury Obligations 5 years None None U.S. Agency Securities 5 years 75%25% Bankers' Acceptances 180 days 40%5% Medium-Term and Corporate Notes 5 years 30%5% Money Market Mutual Funds N/A 20%10% Mortgage Backed Securities 5 years 20%None Asset Backed Securities 5 years 20%None Commercial Paper 270 days 25%3% Municipal Bonds 5 years 30%5% Negotiable Certificates of Deposit 5 years 30%5% Local Agency Investment Fund (LAIF)N/A None None County of San Diego Investment Pool N/A None None CalTrust Joint Powers Authority N/A None None Obligation of any state 5 years None None C. Risk Disclosures Interest Rate Risk 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. 232 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐18- 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: 12 Months 13 to 24 25 to 60 Investment Type Amounts or Less Months Months U.S. Treasury Bills 297,709$ 157,121$ 87,715$ 52,873$ U.S. Agencies 711,130 295,729 77,493 337,908 Municipalities 43,350 21,628 21,722 - CalTrust Investment Pool - Short term 190,023 190,023 - - CalTrust Investment Pool - Medium term 190,220 190,220 - - Medium-Term and Corporate Notes 307,915 69,684 70,108 168,123 Local Agency Investment Fund (LAIF) 371,425 371,425 - - Total 2,111,772$ 1,295,830$ 257,038$ 558,904$ Remaining Maturities 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 Investment 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 2,111,772$ 233 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐19- 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 AAA+ AA+ AA AA- A+A A- U.S. Treasury Bills 297,709$ Aaa -$ - 297,708$ -$ -$ -$ -$ -$ U.S. Agencies 711,130 Aaa - - 711,130 - - - - - Municipalities 43,350 Aaa - - - - 43,350 - - - CalTrust Investment Pool - Short term 190,023 Aaf 190,023 - - - - - - - CalTrust Investment Pool - Medium term 190,220 N/A 190,220 - - - - - - - Medium-Term and Corporate Notes 307,915 A1 - 21,398 14,239 28,479 58,154 113,923 28,593 43,130 Local Agency Investment Fund (LAIF)371,425 N/A 371,425 - - - - - - - Total 2,111,772$ 751,668$ 21,398$ 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. 234 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐20- Note 2 – Cash and Investments (Continued) E. Investment in CalTRUST The Authority is a voluntary participant in the Investment Trust of California (CalTRUST), 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, et. 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 CalTRUST, which are recorded on a fair market value basis. Separate CalTRUST 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 $380,243 invested in CalTRUST. The Authority’s investment in this pool is reported in the accompanying financial statements at fair market value. F. Fair Value Measurements Generally accepted accounting principles establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs consist of inputs that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability. The following table presents the balances of the assets measured at fair value on a recurring basis as of June 30, 2018. Investments by Not Subject Fair Value Level Level 1 Level 2 Level 3 to GASB 72 Total June 30, 2018 Assets U.S. Treasury Bills 297,709$ -$ -$ -$ 297,709$ U.S. Agencies 711,130 - - - 711,130 Municipalities 43,350 - - - 43,350 CalTrust Investment Pool - Short term - - - 190,023 190,023 CalTrust Investment Pool - Medium term - - - 190,220 190,220 Medium-Term and Corporate Notes 307,915 - - - 307,915 Local Agency Investment Fund (LAIF)- - - 371,425 371,425 1,360,104$ -$ -$ 751,668$ 2,111,772$ Fair Value Measurement Using 235 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐21- Note 3 – Capital Assets The summary of changes in capital assets for the year ended June 30, 2018 is as follows: Balance June 30, 2017 Additions Deletions Balance 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. 236 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Notes to the Basic Financial Statements June 30, 2018 ‐22- 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 $34,847,960. 237 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 238 of 281 May 7, 2019, Item #1.7     Required Supplementary Information (Unaudited) 239 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Budgetary Comparison Schedule For the Year Ended June 30, 2018   See accompanying note to budgetary comparison schedule. -23- Original Budget Final Budget Actual Variance with Final Budget REVENUES Charges for services 49,120$ 49,120$ 59,839$ 10,719$ Investment income 22,000 22,000 40,295 18,295 Other revenues 40,000 40,000 59,667 19,667 Total revenues 111,120 111,120 159,801 48,681 EXPENDITURES Current: General government 10,400 10,400 7,987 2,413 Development services 10,000 32,450 34,861 (2,411) Capital outlay 554,319 1,645,819 831,705 814,114 Total expenditures 574,719 1,688,669 874,553 814,116 OTHER FINANCING SOURCES Transfers in - 820,000 820,000 - Total other financing sources - 820,000 820,000 - Net change in fund balance (463,599)$ (757,549)$ 105,248 862,797$ Fund balance, beginning 2,666,200 Fund balance, ending 2,771,448$ 240 of 281 May 7, 2019, Item #1.7 Poway Housing Authority Note to Budgetary Comparison Schedule For the Year Ended June 30, 2018 ‐24- 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. 241 of 281 May 7, 2019, Item #1.7     This page intentionally left blank. 242 of 281 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 735 E. Car negie D r . Su i te I 00 San Bernardi no, C A 92408 909 889 0871 T 909 889 536 1 F r amscpa.ner PARTNERS Brenda L. Odle, CPA. M ST Terry P. Shea . CPA Kiri< A. Franks. C PA Scott W . Manno, CPA, CGMA Leena Shan bhag, CPA, MST, CGMA Bradfe r d A. W elebir, C PA, MBA, CGMA Jay H. Zercher, C PA (Partner Emeri tus) Phillip H . Waller , CPA (P artne r Emerit us) MANA GERS / STA FF Jenny Liu, CPA , MST Seong-Hyea Lee, CPA, MBA Charles De Simoni, CPA Gardenya Duran, CPA Brianna Sc hultz, CPA Samuel Slngery, CPA JingWu,CPA Evelyn M orentin-Barcena, CPA Jin Gu, CPA. MT Veronica Hernandez, CPA MEMBERS Am e rican Institute o f C ert ified Public A ccount ants PCPS The A/CPA A//io11 ce (or CPA Firms Govc rnmento/ Audit Quality Ce11ter Em ployee Ocnc(,1 P/011 A11dir Quolity Center Cali fo rnia Soc iety o f Certifi ed Public Acco untants 243 of 281 ROGE RS, A N DERSON , MALODY & SCOTT, LLP CERTI FIED PUBLIC ACCO U NTANTS, SINCE 1948 Report on Internal Control Over Financial Reporting and o n Compliance and Other Matters Based on an Audit of Financial Statements Performed in Acc ordance W ith Government Auditing S tandards Independent Auditor's Repo rt To t he Chairman and Commissioners of the Poway Housing Authority Poway, California We have audited, in accordance wit h the auditi ng standards generally accepted in the United St ates of America an d t he standard s applicable t o financia l aud its contained in Government Auditing Standards issued by t he Com ptroller General of the Un ited Stat es, t he financia l statements of the governme ntal activities and the major fund of t he Housing A ut hority of the City of Poway (A ut hority), a compo ne nt u nit of the City of Poway (City), as of and fo r t he year ended June 30, 2018, and the related notes to th e fina ncial statements, which collective ly co mprise the Authority 's basic financial statements and have issued our report t hereon dated January 28, 20 19. Inte rnal Control Over Financial Reporting In planning and performing o ur audit of t he financial statements, we considered t he Authority's internal control over financial re porti ng (internal control) to determine the audit procedu res that are appropr iate in the circumstances for the purpose of expressing our opinions on the fina ncial statements, but not for the purpose of expressing an opinion on the effectiveness of the Author ity'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 control does not allow management or employees , in the normal course of performing their assig ned functions, to prevent, or detect and correct, misstatements on a timely bas is. A material weakness is a deficiency, or a combination of d efic iencies , in internal control, such t hat there is a re asonable possibi lity that a material misstatement of the entity's financial stat ement s will not be preve nted, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in i nternal control that is less severe t han a material weakness, yet important enough to merit attention by those charged w ith governance. -25 - STA BILITY. ACCURACY. TRUST.   ‐26- 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.    San Bernardino, California January 28, 2019 244 of 281 May 7, 2019, Item #1.7     Poway Public Financing Authority Poway, California Basic Financial Statements and Independent Auditor’s Report For the Year Ended June 30, 2018 ATTACHMENT C 245 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Basic Financial Statements For the year ended June 30, 2018     TABLE OF CONTENTS Page Number Independent Auditor's Report ........................................................................................................... 1 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position ............................................................................................................ 3 Statement of Activities ................................................................................................................. 4 Governmental Fund Financial Statements Balance Sheet .............................................................................................................................. 5 Reconciliation of the Balance Sheet of the Governmental Fund to the Statement of Net Position ........................................................................................................... 6 Statement of Revenues, Expenditures and Changes in Fund Balance ....................................... 7 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the Governmental Fund to the Statement of Activities ................................. 8 Notes to the Basic Financial Statements .......................................................................................... 9 Independent Auditor's 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………………………………….……….…. 17 246 of 281 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 735 E. Carnegie Dr. Suite I 00 San Bernardino, CA 92408 909 889 0871 T 909 889 5361 F ramscpa.net PARTNERS Brenda L. Odle, CPA. MST Teny P. Shea, CPA Kirk A. Franks. CPA Scott W. Manno, CPA. CGMA Leena Shanbhag, CPA, MST, CGMA Bradferd A. Welebir, CPA. MBA, CGMA Jay H. Zercher, CPA (Panner Eme1i tus) Phillip H . Waller, CPA (Partner Emeritus) MANAGERS / STAFF Jenny Liu, CPA, MST Seong-Hyea Lee, CPA, MBA Charles De Simoni. CPA Gardenya Duran, CPA B1ianna Schultz, CPA Samuel Slngery, CPA Jing Wu, CPA Evelyn Morentin -Barcena, CPA Jin Gu, CPA, MT Ve ronica Hernandez, CPA MEMBERS American lnstitulc of Certifi ed Public Accountants ('CPS The A/CPA Alliance for CPA Firms Govcmmcntol A"dit Quality Cclller Emp loyee 0cnc(,1. Plan Audi t Q1wli1y Cen ter Califon1i<i Society of Certified Public Accountanls 247 of 281 ROGERS, ANDERSO N , MALODY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS, S11\ICE 1948 To the Honorable Mayor and Members of the Board of the Poway Public Financing Authority Poway, California Independe nt Auditor's Re po rt Report on the Finan c ial State ments We have audited the accompanying financial statements of the government al activities and the majo r fund of the Poway Public Financing Authority (the Authori ty), a component unit of t he City of Poway, Californ ia (the City), as of and for the year ended June 30, 2018, and the related notes to the fi nancia l statements, wh ich collectively comprise the Aut hority's basic financ ial statements as listed in the table of contents. M a nage ment's Responsibility for the Fin an cial Statements Management is resp onsible for the preparation and fa ir prese ntation of t hese financia l statements in accordance with accounting principles generally accepted in the United States of America; t his inc lu des the design , implementation, and maintenance of internal contro l re levant to the preparation and fair presentation of financia l statements that are f ree from material misstatement, whether due t o fraud or error. Auditor's Re sponsibility Our responsibility is to express opinions on t hese fi nancia l stat ements based on our audit. We conducted our au d it in accorda nce with aud iting st andards generally accepted in the U nited States of America and the sta ndards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Unit ed States, and the State Contro ll er's Minimum Audit Requirement for California Special Districts. Those standards requ ire that we plan and perform the audit to obta in reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures t o obtain audit evidence about the amounts and disclosures in the fi nancia l statements. T he procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, w hether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effect iveness of the entity's internal control. Accordingly, we express no such opinion . An audit also inc ludes evaluating the appropriateness of accounting policies used and the reasonable ness of significant accounting estimates made by management, as well as eva luating the overall presentation of the financial statements. -1- STABILITY. ACCURACY. TRUST.   -2- 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 a 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 and budgetary comparison information 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 basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated January 28, 2019 on our consideration of the Authority's internal control over financial reporting and 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. San Bernardino, California January 28, 2019 248 of 281 May 7, 2019, Item #1.7     BASIC FINANCIAL STATEMENTS 249 of 281 May 7, 2019, Item #1.7     This page intentionally left blank 250 of 281 May 7, 2019, Item #1.7     GOVERNMENT-WIDE FINANCIAL STATEMENTS 251 of 281 May 7, 2019, Item #1.7     This page intentionally left blank 252 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Statement of Net Position June 30, 2018 The accompanying notes are an integral part of these financial statements. -3- Governmental Activities ASSETS Current assets: Cash with fiscal agents 627,876$ Direct finance lease, collectible within one year 605,000 Total current assets 1,232,876 Noncurrent assets: Direct finance lease, collectible in more than one year 10,420,000 Total noncurrent assets 10,420,000 Total assets 11,652,876 DEFERRED OUTFLOWS OF RESOURCES Loss on refunding of 2012 certificates of participation 173,028 LIABILITIES Current liabilities: Accrued interest payable 163,435 Certificates of participation, due within one year (Note 4) 605,000 Total current liabilities 768,435 Noncurrent liabilities: Certificates of participation, net of current portion (Note 4) 10,575,807 Total noncurrent liabilities 10,575,807 Total liabilities 11,344,242 NET POSITION Restricted for debt service 481,662 Total net position 481,662$ 253 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Statement of Activities For the year ended June 30, 2018 The accompanying notes are an integral part of these financial statements. -4- Net (Expenses) Revenues and Changes in Program Revenues Net Position Operating Capital Charges for Grants and Grants and Governmental Functions/Program Expenses Services Contributions Contributions Activities Primary Government General government -$ 922,221$ -$ -$ 922,221$ Interest and fiscal charges 326,617 - - - (326,617) Adjustment to notes receivable upon bond refunding 590,000 - - - (590,000) Total governmental activities 916,617$ 922,221$ -$ -$ 5,604 General Revenues Use of money and property 4,007 Total general revenues 4,007 Change in net position 9,611 Net position - beginning 472,051 Net position - ending 481,662$ 254 of 281 May 7, 2019, Item #1.7     GOVERNMENTAL FUND FINANCIAL STATEMENTS 255 of 281 May 7, 2019, Item #1.7     This page intentionally left blank 256 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Balance Sheet Governmental Fund June 30, 2018 The accompanying notes are an integral part of these financial statements. -5- Cash with fiscal agents (Note 2)627,876$ Direct finance lease (Note 3)11,025,000 Total assets 11,652,876$ Unavailable revenue 11,025,000$ Total deferred inflows of resources 11,025,000 FUND BALANCE Restricted for debt service 627,876 Total fund balance 627,876 Total deferred inflows of resources and fund balance 11,652,876$ DEFERRED INFLOWS OF RESOURCES ASSETS 257 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Reconciliation of the Balance Sheet of the Governmental Fund to the Statement of Net Position June 30, 2018 The accompanying notes are an integral part of these financial statements. -6- Total governmental fund balance 627,876$ statement of net position are different because: refunding reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the Governmental Fund.173,028 current period. Therefore, they are not reported in the Governmental Fund Balance Sheet. Certificates of participation - due within one year (605,000)$ Certificates of participation - due in more than one year (10,575,807) (11,180,807) Financial Statements resulting from activities in which revenues were earned but funds were not available were recognized as revenues in the Government-Wide Financial Statements.11,025,000 current financial resources. Therefore, interest payable was not reported as a liability in the Governmental Funds Balance Sheet.(163,435) Net position of governmental activities 481,662$ Unavailable revenue recorded in Governmental Fund Interest payable on long-term debt did not require Long-term liabilities are not due and payable in the Amounts reported in governmental activities in the Expenses related to the amortization of losses on bond 258 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund For the year ended June 30, 2018 The accompanying notes are an integral part of these financial statements. -7- REVENUES Charges for services 922,221$ Use of money and property 4,007 Total revenues 926,228 EXPENDITURES Debt service: Principal retirement 590,000 Interest 338,670 Total expenditures 928,670 Excess (deficiency) of revenues over (under) expenditures (2,442) Net change in fund balance (2,442) Fund balance - beginning 630,318 Fund balance - ending 627,876$ 259 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the Governmental Fund to the Statement of Activities For the year ended June 30, 2018 The accompanying notes are an integral part of these financial statements. -8- Net change in fund balance - total governmental fund (2,442)$ Position.590,000 in governmental funds. 2012 Certificates of Participation 18,086$ Loss on refunding of 2012 certificates of participation (11,933) 6,153 fund. 5,900 (590,000) Change in net position of governmental activities 9,611$ inflows of resources because they are measureable but Therefore, amortization was not reported as expenditures not reported as expenditures in the governmental Certain revenues in the governmental fund are deferred Accrued interest expense on long-term debt is reported in the Government-Wide Statement of Activities, but governmental fund, but the repayment reduces long-term liabilities in the Government-Wide Statement of Net on refunding was reported as interest and fiscal charges does not require the use of current financial resources. Therefore, the change in accrued interest expense is in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Amortization of bond premium, discount and deferred loss not available under the modified accrual basis of accounting. However, the revenues are included on the This amount represents the change during the year. accrual basis used in the government-wide statements. Repayment of bond principal was an expenditure in the 260 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Notes to the Basic Financial Statements June 30, 2018 -9- Note 1 - Summary of Significant Accounting Policies The basic financial statements of the Poway Public Financing Authority (Authority) 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 significant accounting policies are described below. A. Financial Reporting Entity The Poway Public Financing Authority (the Authority) is a joint powers authority organized pursuant to the State of California Government Code, Section 6500. The Authority exists under a Joint Exercise of Power Agreement dated October 8, 1991, between the City and the former Poway Redevelopment Agency (the Agency). Its purpose is to assist in financing and refinancing projects for the benefit of the City and the Agency. Transfers are made by the City to the Authority to cover debt service payments made by the Authority on the City's behalf. The Authority governing body is composed in its entirety of council members of the City. 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 financial activities 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 and 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, liabilities, 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. 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. 261 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Notes to the Basic Financial Statements June 30, 2018 -10- Note 1 - Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balance for all major governmental funds. An accompanying schedule is presented to reconcile and explain the differences in fund balances 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 Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the 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. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days after year-end) are recognized when due. Expenditures are recorded in the accounting period in which the related fund liability is incurred, except for debt service payments which are recognized when paid. C. Long-Term Obligations In the Government-Wide Financial Statements, long-term debt and other long-term obligations are reported as noncurrent liabilities in the applicable governmental activities. Bond premiums and discounts, if material, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred. In the Fund Financial Statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 262 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Notes to the Basic Financial Statements June 30, 2018 -11- Note 1 - Summary of Significant Accounting Policies (Continued) D. Fund Balances For the Governmental Fund Financial Statements, fund balance is classified as follows: 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, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. All Authority funds are classified as "Restricted". E. Net Position In the Government-Wide Financial Statements, net position is classified in the following categories: Restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. F. Use of Restricted/Unrestricted Net Position When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the Authority's policy is to apply restricted net position first. G. Use of Estimates The preparation of Basic Financial Statements in conformity with generally accepted accounting principles requires the Authority’s management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates. H. 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. 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. 263 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Notes to the Basic Financial Statements June 30, 2018 -12- Note 2 - Cash, Cash Equivalents and Investments The Authority maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. This pooled cash is invested by the Authority Treasurer to enhance earnings. Cash, cash equivalents, and investments consisted of the following at June 30, 2018: Governmental Activities Cash and investments with fiscal agents 627,876$ A. Investments The following table identifies the investment types that are authorized for the Authority by the California Government Code (or the Authority's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Authority's investment policy, where 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 Authority's investment policy. 264 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Notes to the Basic Financial Statements June 30, 2018 -13- Note 2 - Cash, Cash Equivalents and Investments (Continued) A. Investments (Continued) Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer U.S. Treasury Obligations 5 years None None U.S. Agency Securities 5 years 75% 25% Banker's Acceptances 180 days 40% 5% Medium Term and Corporate Notes 5 years 30% 5% Money Market Mutual Funds N/A 20%10% Mortgage Backed Securities 5 years 20%None Asset Backed Securities 5 years 20%None Commercial Paper 270 days 25%3% Municipal Bonds 5 years 30%5% Negotiable Certificates of Deposit 5 years 30%5% Local Agency Investment Fund (LAIF)N/A None None County of San Diego Investment Pool N/A None None CalTrust Joint Powers Authority N/A None None Obligation of any state 5 years None None *Excluding amounts held by trustee that are not subject to California Government Code restriction. B. Investment Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreement, rather than the general provisions of the California Government Code or the Authority's investment policy. The table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Authorized Maximum Percentage of Investment in Investment Type Maturity Portfolio One Issuer Repurchase Agreement 1 year None 30% Money Market Mutual Funds N/A None None U.S. Agency Securities 5 years 75%25% Investment Contracts 30 years None None Local Agency Investment Fund (LAIF)N/A None None 265 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Notes to the Basic Financial Statements June 30, 2018 -14- Note 2 - Cash, Cash Equivalents and Investments (Continued) C. Risk Disclosures Interest Rate Risk 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 is 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. 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: Remaining Maturities 12 Months Investment Type Amounts or Less Held by bond trustee: Money Market 627,876$ 627,876$ Total 627,876$ 627,876$ 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 June 30, 2018 for each investment type: Minimum Investment Type Amounts Rating AAAm/Aaamf Held by bond trustee: Money Market 627,876$ N/A 627,876$ Total 627,876$ 627,876$ 266 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Notes to the Basic Financial Statements June 30, 2018 -15- Note 3 - Investment in Direct Finance Lease On October 5, 2012, the Authority leased certain property to the City. Under the terms of the agreement, lease payments made by the City will be sufficient to pay principal and interest amounts when due to bond holders for the 2012 revenue bonds. The lease agreement extends through January 1, 2033 and includes interest at rates ranging from 2.00% to 3.25%. The net investment in the direct financing lease for the Authority at June 30, 2018, is as follows: Total minimum lease payments receivable 13,942,658$ Less: unearned interest income (2,917,658) Net direct finance lease receivable 11,025,000$ Classification Current portion 605,000$ Long-term portion 10,420,000 11,025,000$ Future minimum lease payments for the direct financing lease, including interest for each of the next five years and each five years thereafter are as follows: Year Ending June 30, Total 2019 931,870$ 2020 929,770 2021 930,933 2022 928,608 2023 929,258 2024-2028 4,644,586 2029-2033 4,647,633 Total 13,942,658$ Lease payments made by the City during the year ended June 30, 2018 were $928,670. 267 of 281 May 7, 2019, Item #1.7 Poway Public Financing Authority Notes to the Basic Financial Statements June 30, 2018 -16- Note 4 - Long-Term Obligations A summary of the Authority's long-term debt transactions for the year ended June 30, 2018, is presented below: Description Balance June 30, 2017 Debt Issued Debt Retired Balance June 30, 2018 Amount due within one year Amount due in more than one year 2012 Certificates of Participation 11,615,000$ -$ (590,000)$ 11,025,000$ 605,000$ 10,420,000$ Bond Premium 173,893 - (18,086) 155,807 - 155,807 Total 11,788,893$ -$ (608,086)$ 11,180,807$ 605,000$ 10,575,807$ Classification 2012 Certificates of Participation On October 5, 2012, the Authority issued the 2012 Refunding Certificates of Participation to provide for the defeasance and refunding of the 2003 Certificates of Participation, to fund a reserve account for the Certificates, and to pay costs incurred in connection with executing and delivering the Certificates. The Authority will lease certain existing property to the City pursuant to a Site and Facilities Lease dated as of January 1, 2003, as amended by an Amendment to Site and Facilities Lease, dated as of October 1, 2012. The Certificates are payable solely from and secured by certain lease payments to be made by the City to the Authority. The interest with respect to the Certificates is payable on January 1 and July 1 of each year, commencing January 1, 2013 at rates ranging from 2.00% to 3.25%. At June 30, 2018, the outstanding balance of the 2012 Certificates of Participation was $11,025,000. The annual requirements to amortize Certificates of Participation outstanding at June 30, 2018, are as follows: Year Ending June 30, Principal Interest Total 2019 605,000$ 326,870$ 931,870$ 2020 615,000 314,770 929,770 2021 630,000 300,933 930,933 2022 645,000 283,608 928,608 2023 665,000 264,258 929,258 2024-2025 3,635,000 1,009,586 4,644,586 2029-2033 4,230,000 417,633 4,647,633 Total 11,025,000$ 2,917,658$ 13,942,658$ 268 of 281 May 7, 2019, Item #1.7 269 of 281 May 7, 2019, Item #1.7 735 E . C arnegie Dr. Suite l 00 San Bernardino. C A 92408 9 09 889 0871 T 9 09 889 5 3 6 1 F ramscpa. net P ARTN ERS Brenda L. Odle, C:PA, MST Teny P Shea, CPA Kirk A. Franks , CPA Scort W , Manno, CPA. CGMA Leena Shanbh~g, C PA, MST , CGMA Bradferd A Waleb,r, CPA, MBA. CGMA Jay H . Zercher, CPA (Pa,,:ner Ementus) Ph•IIJp H. Walle,. CPA (P.ir,net E,nemu1) MANAGERS/ STAFF Jenny Liu, CPA. MST Seong,Hyea Lee. CPA, MBA Chai"les De Simo11i, CPA Garde11ya Duran, CPA Brianna Schultz. CPA Sam uel Singery, GPA Jing Wu, CPA Evelyn Morem,n-Barcena, CPA Jin Gu. CPA, MT Veronica t-1ema,,dez, CPA MEMBERS American I r,sritute of Certified Public Accountant-.s f>CPS T/1r A/CPA Alliance (m CPA Firms Gove, r1mental A11</it Quol,ty Center [mp/<1yee 8Mr./Jr Pion Audit QiJalrry c~11Ler Cuhlonua Society ot Col'l'lled Pubhc Accm,mancs ROGE R.S, AN DE RS O N. MAL ODY & SCOTT, L LP CERTIFIED PUBLIC ACCOUNTANTS, SIN C E 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 Honorable Mayor and Members of the Board of the Poway Public Financing 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 Public Financing 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 control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness , yet important enough to merit attention by those charged with governance. -17- STABILITY ACCURACY. TRU ST.   -18- 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. San Bernardino, California January 28, 2019 270 of 281 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 The Honorable City Council Page 2 City of Poway, California This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Appropriations Limit Worksheets for the year ended June 30, 2018. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the City Council and management of the City of Poway, California, and is not intended to be and should not be used by anyone other than these specified parties. San Bernardino, California January 28, 2019 272 of 281 May 7, 2019, Item #1.7 Page 3 City of Poway Appropriations Limit Computation 2017 – 2018 2017 - 2018 Change in California Per Capita Personal Income 3.69% Change in Population for the County 0.92% Change in California Per Capita Personal Income Converted to a Ratio 1.0369 Change in Population for the County Converted to a Ratio 1.0092 Calculation of Factor for Ratio of Change (1.0369 x 1.0092) 1.0464 2016 - 2017 limit 827,517,567$ 2017 - 2018 limit ($827,517,567 x 1.0369 x 1.0092)865,947,053$ 273 of 281 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 275 of 281 May 7, 2019, Item #1.7 Honorable City Council City of Poway Compliance with All Ethics Requirements Regarding Independence January 28, 2019 Page 2 The engagement team and others in our firm, as appropriate, have complied with all relevant ethical requirements regarding independence. Qualitative Aspects of the Entity's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting poclies or their application during the current year. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are: Management's estimate of the fair value of investments is based on information provided by financial institutions. We evaluated the key factors and assumptions used to develop the fair value of investment in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of the depreciation expense is based on the allocation of capital assets costs over the estimated useful life of depreciable capital assets. The actual life of any single asset may vary significantly based on a variety of unknown factors, such as defects in the quality of manufacturing or materials used in the asset. Assets may last longer or shorter than anticipated resulting in disproportionate allocation of expense to various accounting periods. We evaluated the useful lives employed by the City to determine if the lives utilized appeared reasonable based on the asset classes in service in determining that it is reasonable in relation to the financial statements taken as a whole. Management's estimate of the net pension liability and related deferred inflows of resources and outflows of resources is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the financial statements taken as a whole. 276 of 281 May 7, 2019, Item #1.7 Honorable City Council City of Poway Financial Statement Disclosures January 28, 2019 Page 3 Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City's financial statements relate to: The disclosure of fair value of investments in Note 2 to the financial statements represents amounts susceptible to market fluctuations. The disclosure of accumulated depreciation in Note 4 to the financial statements is based on estimated useful lives which could differ from actual useful lives of each capitalized item. The disclosure of net pension liability and related deferred inflows of resources and outflows of resources in Notes 7 & 8 to the financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates. Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's financial statements or the auditor's report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the management representation letter dated January 28, 2019. 277 of 281 May 7, 2019, Item #1.7 Honorable City Council City of Poway Management's Consultations with Other Accountants January 28 , 2019 Page 4 In some cases. management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with othe r accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City , we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operational plans and strateg fes that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the C ity of Poway's auditors. "-,U-4 / ,4-~ ... , M~ ~ ktt, LLP. San Bernardino, California January 28, 2019 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 City Management Representation Letter January 28, 2019 27.All transactions have been recorded in the accounting records and are reflected in the financial statements. 28.We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 29.We have no knowledge of any fraud or suspected fraud that affects the City and involves: a.Management; b.Employees who have significant roles in internal control; or c.Others where the fraud could have a material effect on the financial statements. 30.We have no knowledge of any allegations of fraud, or suspected fraud, affecting the City's financial statements communicated by employees, former employees, vendors, regulators, or others. 31.We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. 32.We have disclosed to you the identity of the City's related parties and all the related party relationships and transactions of which we are aware. 33.There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. 34.The City has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities. 35.We have disclosed to you all guarantees, whether written or oral, under which the City is contingently liable. 36.We have disclosed to you all nonexchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Nonexahange Financial Guarantees, for those guarantees where it is more likely than not that the City will make a payment on any guarantee. 37.For nonexchange financial guarantees where we have declared liabilities, the amount of the liability recognized is the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee. Where there was no best estimate but a range of estimated future outflows has been established, we have recognized the minimum amount within the range. 38.We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and A/CPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year. Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year. 39.We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. 40.There are no: a.Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations. b.Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62. c.Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62. d.Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12). 3 280 of 281 May 7, 2019, Item #1.7 May 7, 2019, Item #1.7 May 7, 2019, Item #3.1 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT May 7, 2019 Honorable Mayor and Members of the City Coun~l,A Robert Manis , Director of Development ServicesfVI Scott Nespor, Associate Planner SA.JJ . 858-668-4656 or snespor@poway .org APPROVED APPROVED AS AMENDED (SEE MINUTES) DENIED REMOVED CONTINUED Tentative Parcel Map 16-001; a request for approval of a two-lot subdivision located at 14724 Pomerado Road in the Residential Single Family -3 (RS-3) zone This project is a request to subdivide a 1.02-acre parcel at 14724 Pomerado Road into two lots . An existing residence will remain on one of the lots. The site is located on the northwest corner of Pomerado Road and Kozy Crest Lane in the Residential Single Family-3 (RS -3) zone. The project complies with all City standards. Recommended Action: It is recommended that the City Council approve Tentative Parcel Map (TPM) 16-001 subject to the conditions of approval in the Resolution included as Attachment A. Discussion: The project applicant is Robert Soto of S&S General Contractor and the property owner is The Phung Family Trust. The 1.02-acre project site is located on the west side of Pomerado Road, between Twin Peaks Road and Ted Williams Parkway. The Twin Peaks Plaza shopping center is located across Pomerado Road to the east. The Adobe Ridge neighborhood park is located on Adobe Ridge Road northwest of the subject parcel. The existing parcel is a corner lot, with frontage on Pomerado Road and Kozy Crest Lane . The existing residence and the proposed new lot will take access from Kozy Crest Lane, which is a private road. A zoning location map is included as Attachment B. The minimum lot size in the RS-3 zone is 15,000 square feet. The applicant proposes to split the property into two parcels with the existing residence to be located on an approx imate 25 ,000 square-foot parcel, allowing the second parcel to be 19,400 square feet. The proposed subdivision map is included as Attachment C . Necessary improvements for the subdivision will include construction of a fire hydrant at the corner of Pomerado Road and Kozy Crest Lane , street trees and irrigation along the property 's frontage of Kozy Crest Lane and Pomerado Road, widening approximately 250-feet of Kozy Crest Lane to the Private Road minimum standard of 20-feet and the replacement of existing overhead utility lines with underground lines, resulting in the elimination of two utility poles. 1 of 14 □ □ □ □ May 7, 2019, Item #3.1 It would be preferable to locate the fire hydrant further west, up Kozy Crest Lane. However, locating the fire hydrant along Kozy Crest is not feasible for the applicant since the underlying property owner of the Kozy Crest Lane easement was not willing to grant the City an easement for a public water transmission main (Attachment D). This would have shortened the route for the homes along Kozy Crest to a fire hydrant. Instead, the fire hydrant is proposed to be placed at the corner of Kozy Crest Lane, within the Pomerado Road Public Right-of-Way. The applicant provided a noise study which concluded a noise wall will be required at the top of the building pad fronting Pomerado Road. This project feature will be required as part of the grading plan for the new residence. The General Plan identifies the subject property to be within an area of a moderate probability that an archeological site exists. The applicant provided a Cultural Resource Survey which did not identify any on-site resources on the surface of the property. However, since there are 11 recorded archeological sites within one-mile of the site, a cultural resource monitoring program will be required during any soil disturbance as a condition of approval. The proposed subdivision would be consistent with General Plan policies and standards in the Poway Municipal Code. Neighborhood Meeting Over 20 people attended a neighborhood meeting that was held on June 7, 2018. There were three recurring issues from the meeting to be noted: 1) The existing private water laterals for the Kozy Crest Lane residents are long and shallow as they extend to their meters at Pomerado Road. For many years, the neighbors have experienced repair costs and service interruptions due to damage of the lateral lines. Some residents are worried the construction of this project, including the road widening and undergrounding will further damage their water service lines. Although the applicant is aware of the location of the lines and will make an effort to protect the lines during construction, accidents during construction are possible and the project applicant will be required to repair any damage that occurs during construction. 2) Some residents of the neighborhood proposed the applicant take access for the new lot from Adobe Ridge Road. This solution is problematic for numerous reasons. The property does not have frontage on Adobe Ridge Road and an access easement would be required across a City-owned property that is already encumbered by a San Diego Gas and Electric (SDGE) easement. Significant grading would be required for the new access point. Additionally, it would not eliminate the requirement to widen Kozy Crest Lane as the existing residence would continue to have access to Kozy Crest Lane. 3) The property owner south of the subject property on Kozy Crest Lane, who owns the underlying property where the private road easement exists, claims the necessary improvements within the easement amounts to trespassing. The easement for Kozy Crest Lane is 60-feet wide. The northerly limit of the easement is the shared property line between the subject property and the property to the south. From this 2 of 14 May 7, 2019, Item #3.1 property line, the easement extends 60-feet into the property. Therefore, the entirety of this easement is located on the neighboring property to the south . Of the 60-feet, the current paved portion of Kozy Crest Lane varies from 16-feet to over 30-feet wide . The road will only be widened where it does not meet the current 20-foot wide standard . Since the subject property, along with other residents of Kozy Crest Lane, have rights to the 60-foot easement for vehicular access and private utilities, the project applicant believes they have the right to make the necessary improvements to the easement related to the allowed uses of the easement. The easement does not address public utilities and the southerly property owner objected to a City water line and fire hydrant being located in the easement. Therefore , the waterline will not extend up Kozy Crest Lane and the fire hydrant will be located within Pomerado Road Right-of-Way. Environmental Review: The project is Categorically Exempt from the California Environmental Quality Act (CEQA), as Class 15 Categorical Exemption, pursuant to Section 15315 of the CEQA Guidelines , in that the project involves the division of land into two parcels within an urbanized area in compliance with all City codes and standards and the average slope of the property is less than 20 percent . Fiscal Impact: None. Public Notification: A public notice was published in the Poway News Chieftain and mailed to property owners and occupants located within 500 feet of the project site . Additionally, a Notice of Pending Development Application concerning the project was posted on the subject property by the Applicant. Attachments: A. Resolution approving TPM B. Zoning and Location Map C. Proposed TPM D. Letter from the Adjacent Property Owner regarding the Kozy Crest Lane Easement Reviewed/Approved By: Wendy Kaserman Assistant City Manager 3 of 14 Reviewed By: Alan Fenstermacher City Attorney Tina M. White City Manager May 7, 2019, Item #3.1 ATTACHMENT A RESOLUTION NO. P-19- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING TENTATIVE PARCEL MAP 16-001, ASSESSOR'S PARCEL NUMBER 314-350-29 WHEREAS, Tentative Parcel Map (TPM) 16-001 was submitted by Robert Soto of S&S, General Contracting, Applicant and The Phung Family Trust, Owner, requesting a two-lot subdivision of an approximate 1.02-acre parcel at 14724 Pomerado Road, which is developed with an existing single-family residence to remain within the Residential Single Family-3 (RS-3) zone; WHEREAS, on May 7, 2019, the City Council duly held a noticed public hearing to solicit comments from the public, both for and against, relative to this application; and WHEREAS, the City Council has read and considered the agenda report for the proposed project and has considered other evidence presented at the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: Section 1: The project is Categorically Exempt from the California Environmental Quality Act (CEQA), as Class 15 Categorical Exemption, pursuant to Section 15315 of the CEQA Guidelines, in that the project involves the division of land into two parcels within an urbanized area in compliance with all City codes and standards and the average slope of the property is less than 20 percent. Section 2: The findings, in accordance with the State Subdivision Map Act (Government Code Section 66410 et. Seq.), TPM 16-001 are made as follows: A. That the proposed map is consistent with the objectives, policies, general land uses and programs of the General Plan in that it proposes to create two residential lots at a density that is consistent with the General Plan designations and Poway Municipal Code (PMC) standards. B. That the design or improvement of the proposed subdivision or lot division is consistent with the General Plan in that the approved lot sizes and configurations adhere to the development standards of the General Plan and PMC. C. That the site is physically suitable for the type of development in that the site is large enough to provide two lots meeting size standards and the existing residence will remain. D. That the site is physically suitable for the proposed density of development in that the site is large enough to provide two residential lots meeting size standards. E. That the design of the lot division is not contrary to the policy of the State legislature as stated in Chapter 1, commencing with Section 21000, of the State Public Resources Code, or likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat in that the project will not be impacting any native habitat. No development is proposed as a part of this project. 4 of 14 May 7, 2019, Item #3.1 Resolution No. P-19- Page 2 F. That the design of the lot division is not likely to cause serious public health problems in that City water and sewer services are available to the site. G. That the design of the lot division will not conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision in that the lot split can occur without obstructing or otherwise impacting existing or new easements. Section 3: The findings in accordance with Government Code Section 66020 for the public improvements are made as follows: A. The design and improvements, including the construction of a new fire hydrant, of the proposed development are consistent with all elements of the Poway General Plan, as well as City ordinances, because all necessary services and facilities will be available to serve the project. B. In accordance with the Poway General Plan, the project and future dwelling units will require the payment of development impact fees, which are assessed on a pro-rata basis to finance public infrastructure improvements which promote a safe and healthy environment for the residents of the City. Section 4: The City Council hereby approves TPM 16-001 as shown on the approved plans on file dated received April 18, 2018 with the City, subject to the following conditions: A. The applicant shall defend, indemnify, and hold harmless the City, its agents, officers, and employees from any and all claims, actions, proceedings, damages, judgments, or costs, including attorney's fees, against the City or its agents, officers, or employees, relating to the issuance of this permit, including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, applicant shall pay all of the costs related thereto, including without limitation reasonable attorney's fees and costs. In the event of a disagreement between the City and applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation-related decisions, including, but not limited to, settlement or other disposition of the matter. However, the applicant shall not be required to pay or perform any settlement unless such settlement is approved by applicant. B. Approval of this request shall not waive compliance with any section of the Zoning Ordinance or other applicable City ordinances in effect at the time of Building Permit issuance. C. This approval is based on the existing site conditions represented on the TPM. If actual conditions vary from representations, the TPM must be changed to reflect the actual conditions. Any changes to the approved TPM, prior to parcel map approval, must be approved by the Director of Development Services and substantial changes may require approval of the City Council. D. The developer is required to comply with the Poway Noise Ordinance (Chapter 8.08 PMC) requirements that govern construction activity and noise levels. 5 of 14 May 7, 2019, Item #3.1 Resolution No. P-19- Page 3 E. Within 30 days of this approval the applicant shall submit in writing that all conditions of approval have been read and understood. F. Prior to parcel map recordation, unless other timing is indicated, the following conditions shall be complied with: 6 of 14 (Engineering) 1. The applicant shall include provisions in their design contract with their design consultants that, following acceptance by the City, all construction drawings or technical reports accepted by the City (exclusive of architectural building plans) shall become the property of the City. Once accepted, these plans may be freely used, copied or distributed by the City to the public or other agencies as the City may deem appropriate. An acknowledgement of this requirement from the design consultant shall be included on all construction drawings at the time of plan submittal. 2. The existing two power poles fronting Parcel 2 on Kozy Crest Lane shall be removed and all overhead utility lines located underground. The existing power pole near the westerly property line of Parcel 2 shall remain. All overhead utility connections serving the existing residences and all proposed utility connections shall be relocated underground. 3. Applicant shall enter into a Private Street Maintenance Agreement for Kozy Crest Lane. If an agreement does not already exist, the owner shall enter into a covenant agreeing to participate in and not oppose a private road maintenance agreement in the future. The form and content shall be in a form satisfactory to the City Attorney. 4. A cash deposit to the City, in an amount equivalent to $100.00 per sheet of the parcel map, for the mylar reproduction of the recorded tract map shall be posted. If a mylar copy of the map is provided to the City within three months of its recordation or prior to building permit issuance, whichever comes first, the security shall then be returned (See PMC Section 16.12.060 (B) for subdivider's responsibility to provide a reproducible mylar copy to the City). 5. The applicant shall pay the drainage impact development fee in effect at the time of subdivision. Listed below is the current applicable fee: 0.45 Acres x $1,200/acre Pomerado Creek Basin = $540 6. The project requirements for fire protection call for the installation of one fire hydrant and expansion of the public water system necessary to support the installation of the hydrant. A water system analysis is required for final design of the proposed public water system expansion. Applicant shall pay for the cost of preparing the analysis prior to submittal of improvement plans. 7. A Public Improvement plan shall be submitted per Municipal Code requirements to the Department of Development Services, Engineering Division. Improvement design should be 100 percent complete at time of submittal and should include the following Public Improvements: May 7, 2019, Item #3.17 of 14 Resolution No. P-19- Page 4 a. Public water and fire hydrant improvements and related appurtenances to the public water main located in Pomerado Road. Final fire hydrant location is subject to review and approval on the improvement plans. 8. The Public Improvement plan shall be approved. The applicant shall enter into a Standard Agreement for public improvements for the work to be done as part of the Public Improvement plan. The applicant will be responsible for posting securities for public improvements and monumentation. 9. A deposit of $1100.00 per sheet of the final map for plan check is required. 10. After subdivision, both parcels will continue to be considered one project as defined by the San Diego Regional Water Quality Control Board. Any future improvements (on either parcel) adding and/or replacing impervious area may cause the project to be classified as a Priority Development Project as defined in the Poway BMP Design Manual. (Safety Services) 11. Fire apparatus access roads shall have an unobstructed, improved width of not less than 20 feet, except single-family residential driveways serving no more than two improved parcels containing dwelling units shall have a minimum of 16 feet of unobstructed improved width. Kozy Crest Lane shall be improved to an unobstructed width of 20 feet from Pomerado Road to the westerly parcel boundary of Parcel 2. Driveway access to both parcels shall be a minimum of 16 feet of unobstructed width. All access roadways shall have an all-weather paved driving surface, a roadway interior turning radius of not less than 28 feet, an outside turning radius of not less than 45 feet, and capable of supporting the imposed loads of 75,000-pounds with a minimum of 13 feet, 6-inches of vertical clearance. The angle of departure and the angle of approach of a fire apparatus access roadway shall not exceed 7-degrees (12 percent). 12. A new approved water supply and fire hydrant shall be located at the intersection of Pomerado Road and Kozy Crest Lane. The new fire hydrant shall be capable of supplying the required fire flow of 1,500GPM for fire protection. A water analysis shall be performed to establish the adequacy of the existing water main and all necessary system design to serve the project. Costs of the water analysis shall be the responsibility of the applicant. (Planning) 13. Any damage to existing water service laterals caused by the applicant during construction will be the responsibility of the applicant. 14. The applicant shall provide a minimum 15-gallon street tree with minimum 25 square feet of planting area planted at a ratio of every 30 feet of street frontage along Pomerado Road and Kozy Crest Lane with a species approved in the City adopted Street Tree Program. The appropriate irrigation shall be provided. Landscape and Irrigation plans shall be provided. Landscape and irrigation plans shall be reviewed and approved prior to installation. Once installed the property will be removed from the City's annual Weed Abatement Program. 15. The project is located within the Federal Aviation Administration (FAA) Influence May 7, 2019, Item #3.1 Resolution No. P-19- Page 5 Area 2 for Marine Corps Air Station Miramar. As such, provide appropriate exemption or mitigations requested from the FAA. 16. Provide Will-Serve letters from all serving utilities. G. Prior to final of the Grading Permit, unless other timing is indicated, the following conditions shall be complied with: 8 of 14 (Engineering) 1. Upon issuance of the grading plan, applicant shall incorporate Low Impact Development (LID) design features into the site development. These shall be clearly shown and identified on the site plan and be appropriately sized for the proposed level of development. 2. Submit a precise grading plan for the development of the lot prepared on a City of Poway standard sheet at a scale of 1" = 20', unless otherwise approved by the City project engineer. Submittal shall be made to the Department of Development Services Engineering Division for review and approval. The grading design shall be 100 percent complete at the time of submittal, ready for approval and issuance of permit. Incomplete submittals will not be accepted. All technical studies as required by Chapter 16 of the PMC shall be submitted. 3. The grading plans shall show Kozy Crest Lane improved to an unobstructed width of 20 feet from Pomerado Road to the westerly parcel boundary of Parcel 2. The plans shall incorporate design changes to drainage along Pomerado Road at the northerly intersection with Kozy Crest Lane due to the road widening and proposed fire hydrant. 4. A drainage study addressing the impacts of the 100-year storm event prepared by a registered Civil Engineer is to be submitted and approved. The study shall evaluate existing and proposed hydrologic and hydraulic conditions to the satisfaction of the City project engineer. 5. Grading securities in the form of a performance bond and a cash deposit, or a letter of credit shall be posted with the City prior to grading plan approval. A minimum cash security of $2,000 is required in all instances. 6. Construction staking is to be installed and inspected by the Engineering Inspector prior to any clearing, grubbing or grading. As a minimum, all protected areas as shown on the approved grading plans are to be staked under the direction of a licensed land surveyor or licensed civil engineer and delineated with lathe and ribbon. As applicable, provide two copies of a written certification, signed and sealed in accordance with the Business and Professions Code, by the engineer of record stating that all protected areas have been staked in accordance with the approved plans. 7. Following approval of the grading plans, posting of securities and fees, and receipt of five copies of the approved plans, the applicant shall attend a pre-construction meeting at the Department of Development Services. The scheduling request shall be submitted on a City standard form available from the City's project engineer. May 7, 2019, Item #3.1 (Planning) Resolution No. P-19- Page 6 8. A Minor Development Review Application for the new residence shall be submitted and approved. 9. The six-foot high sound wall as described in the Noise Analysis Update from Sound Solutions Acoustical Consulting shall be included as part of the Grading Plan and constructed on top of the building pad. The wall shall be constructed with decorative block and pilasters shall be provided every 50 feet. 10. The grading plans shall indicate the Pomerado Road frontage will serve as the front yard setback area. 11. Slopes shall be landscaped and irrigated per an approved landscape plan. H. Prior to issuance of a Building Permit unless other timing is indicated, the following conditions shall be complied with: 9 of 14 (Engineering) 1. The site shall be developed in accordance with the approved grading plans on file in the Development Services Department and the conditions contained herein. Grading of lots shall be in accordance with the Uniform Building Code, the City Grading Ordinance, the approved grading plan, the approved soils report, and grading practices acceptable to the City. 2. Erosion control shall be installed and maintained by the developer from October 1 to April 30. The developer shall maintain all erosion control devices throughout their intended life. 3. Applicant shall obtain a Grading Permit and complete rough grading of the site. The grading shall meet the approval of the Engineering Inspector and the project's geotechnical engineer. Following completion of rough grading, please submit the following: a) Three copies of certification of line and grade for the lot, prepared by the engineer of work. b) Three copies of a soil compaction report for the lot, prepared by the project's geotechnical engineer. The certification and report are subject to review and approval by the City. 4. Prior to start of any work within a City-held easement or right-of-way, a Right-of- Way Permit shall be obtained from the Engineering Division of the Development Services Department. All appropriate fees shall be paid prior to permit issuance. 5. The applicant shall pay all applicable development impact fees in effect at time of permit issuance. The following is a list of the currently estimated fees due for Parcel 1: a. b. C. Water ( 1" Meter) Sewer Traffic $5,448 $5,836 $2,483.48 May 7, 2019, Item #3.1 d. e. Park Fire Apparatus $4,562 $122.03 Resolution No. P-19- Page 7 There is also a required fee to the San Diego County Water Authority in the amount of $8,428.00 for a 1" meter. (Planning) 6. An Affordable Housing In-Lieu Fee will be required. The current rate is $500. I. Prior to issuance of a Building Permit unless other timing is indicated, the following conditions shall be complied with: (Engineering) 1. All existing and proposed utilities or extension of utilities required to serve the project shall be installed underground. No extension of overhead utilities shall be permitted. 2. The private road improvements shall be completed. 3. The drainage facilities, driveway, slope planting measures, and all utility services shall be installed, and completed by the property owner, and inspected by the Engineering Inspector for approval. All new utility services shall be placed underground. 4. An adequate drainage system around the new building pad capable of handling and disposing all surface water shall be provided to the satisfaction of the Engineering Inspector. 5. The applicant shall repair, to the satisfaction of the City Engineer, any and all damages to the streets caused by construction activity from this project. Record drawings, signed by the engineer of work, shall be submitted to Development Services prior to a request of occupancy, per Section 16.52.130B of the Grading Ordinance. Record drawings shall be submitted in a manner to allow the City adequate time for review and approval prior to issuance of occupancy and release of grading securities. At least three weeks prior to a request for occupancy is recommended. Section 5: The approval of TPM 16-001 shall expire on May 7, 2021, at 5:00 p.m. The parcel map conforming to this conditionally approved TPM shall be filed with the City so that the City may approve the parcel map before this approval expires, unless at least 90 days prior to the expiration of the TPM, a request for a time extension is submitted to the Development Services Department and a time extension is subsequently granted by the City Council. Section 6: The parties are hereby informed that the time within which judicial review of this decision must be sought is governed by Section 1094.6 of the California Code of Civil Procedure. 10 of 14 May 7, 2019, Item #3.1 Resolution No. P-19- Page 8 PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway, California, at a regular meeting this 7th day of May 2019. ATTEST: Faviola Medina, CMC, City Clerk STATE OF CALIFORNIA ) ) ss COUNTY OF SAN DIEGO ) Steve Vaus, Mayor I, Faviola Medina , CMC, City Clerk of the City of Poway, California, do hereby certify under penalty of perjury that the foregoing Resolution No. P-19-was duly adopted by the City Council at a meeting of said City Council held on the 7th day of May 2019, and that it was so adopted by the following vote: AYES: NOES: ABSENT: DISQUALIFIED: Faviola Medina, CMC, City Clerk 11 of 14 May 7, 2019, Item #3.1 ATTACHMENT B 0 120 240 --480 Feet --- 12 of 14 RR-C CITY OF POWAY Zoning / Location Map Item: TPM16-001 May 7, 2019, Item #3.1 ATTACHMENT C ..... .., 0 -..... .I>, HORIZONTAL CONTROL DETAIL /,/ •,,, STATIO<l.,..7,--•: •.90<.>ll0,0it ., .... .,.,.., • ~~'g"'.,.';'f~~~~=·'""" .. :,,g~~~=::ur~~~~ rnuNO. ACCEFJEO ,,,. 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S,□""""s I'"''"""" ...... , NruRE -rw """""""""'--"""'"E....,.., !IUl!□IIIICER WLL FOLt.OWCJl'Y0Uttl.lNEljA1<0"""-'CA811' OM ... "'1ATM TO EROSION CONfflOL""""'°CONS"""""""'OF '"CW'OSEl> _..,NTS ABBREVIATED LEGAL DESCRIPTION APCRT10000F<CT 130FTRACT"A• OF "°""'Y, IN TI<E CITYOF "°""Y. ccum-QF SANl>eoo,BTATEOFOA-ACC<Rl<NGTO .... THEREOl'NG W"l.E□N lHE OFFIC• OF Tl<E CCl'Jr<TYRECOAllEA OF SANl>EOOCOUNN<N ...... ?. 1-AS D<SC ... El> IN GFW<l" CEEC ... CDRDE□ N THE OFFICE □, 9"!0 C"""1'Y ... CORDER ONN--,0,,01lASDOC.,,0!,-0FOFF!C"'-""CCW>Ds. ' , , I \, ·~, ' \ I I I ,. \ y ""---t"· f=-~"· TORGERSEN SURVEYING, INC. 1012 MAR VISTA DR. VISTA. CA92081 61!1-5:15-""74 I TOROS~@GMAIL..COM RECOA□-RTYov,tE"' TUYEN QUANG PHUNG AND ROBERT SOTO, KIMTHY DINH PHUNG, TRUSTEES e OWNER'S STATEMENT S & S GENERAL CONTRACTOR OF THE PHUNG FAMIL YTRUST wEHEA .. Y "'-""Ol<IZE THE SUODMCERT0..-1fTHISTENTATII/E?ARCE<...,, 1QTHECITY0FF'<)W;,Y TUYbNQii...:.jlHuNtiNil™jj""PlfUN(l. ---,:;:nr mlJBTleEBOFTI<EPHIJNG,,..,LYfflUS'TC,,TECFEMIIARY""."'°' .. ,..__,.. .... eOOLev....,,suma• DATED FEBRUARY 24, 2004 9"'01'-00.0All,1121 1''7<""'-"IWIOROAl>.POWAY,Cl',0--REFERENCE• JOB# 1614 SHEET 1 OF 2 May 7, 2019, Item #3.1 ATTACHMENT D March 11, 2017 The Phung and Dinh Families 14724 Pomerado Rd Poway, CA 92064 Dear Phung and Dinh Families, RECEIVED MAR i ~ 2017 CITY OF POWPY ,r DEVELOPMENT SEflV- On behalf of Janina Sztechmiler, the owner of the front section of Kozy Crest Lane, we are writing to inform you of the decision regarding the easement. Mrs. Sztechmiler is DENYING the request for a public water main easement. We have talked to the residents of Kozy Crest Lane and the majority of the families do not want to make any part of Kozy Crest public. It has always been, since the beginning private and will stay private. In your letter you to Mrs. Sztechmiler, you wanted an answer by March 29, 2017 and if you didn't hear from her by that date "you would assume Mrs. Sztechmiler was denying the request". According to the City of Poway she must respond to every request in writing. You should check with your source on the correct way these issues should be responded too. To reaffirm Mrs. Sztechmiler is telling you NO, she will not allow the public water main easement on her property. ~L,~~ Lorraine and Jamie Grover On behalf of Janina Sztechmiler 14706 Pomerado Rd. Poway, CA 92064 Cc: Development Services Department City of Poway 14 of 14 May 7, 2019, Item #4.1 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT May 7, 2019 Honorable Mayor and Members of the City Council Robert Ma nis , Development Services Director ~ Robert Manis, Development Services Director (858) 668-4601 I bmanis@poway.org APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED ____ _ RESOLUTION NO. Acquisition of Real Property at Van Dam Peak for Open Space, APNs #316-020-04-00, #316-020-05-00, #316-020-20-00, and #316-020-21-00 City staff has been working with the Trust for Public Lands (TPL) to secure grants for the acquisition of 162.31 acres near Van Dam Peak for open space. Two grants have been approved that will provide $1,500,000 towards the purchase. The City has committed $125,000 toward the purchase. The structure of one of the grants requires that $50,000 be withheld unti l escrow closes and a sign is erected at the property, after which those funds will be re leased. An additional appro priation from the Habitat In-Lieu Fee Fund is needed for the purchase to temporarily cover the withheld $50 ,000. Funds for the cost of the s ign and escrow fees also need to be appropriated. Recommended Acti on: It is recommended that the City Council appropriate an additional $60,000 from the Ha bitat In - Lieu Fee Fund for the acquisition of real property, APNs #316-020-04-00, #316-020-05-00, #316- 020-20-00 , and #316-020-21-00 for open space. Discussion: In 2016 a staff member from TPL contacted the City stating that they were working with a private property owner who is interested in selling their property consisting of four parcels at Van Dam Peak, totali ng 162 .31 acres . T he Poway Subarea Ha bitat Conservation Plan (PSHCP) considers Van Dam Cornerstone a resource protection area of high preservation value. The subj ect property is located between existing public lands (the Califo rnia Department of Fish and Wildlife 's 150-acre Meadowbrook Ecological Reserve to the east and the City's 141-acre Van Dam Peak property to the west) and would create more than 450 acres of continuous public open space. A location map of the four parcels is provided as Attachment A The City partnered with TPL to submit applications to the California Natural Resources Agency (CNRA) requesting $500 ,000 in Environmental Enhancement a nd Mitigation Program (EEMP) fu nds and to the Ca lifornia Department of F ish and Wildl ife , via the Wildlife Conservation Board (WCB), requesting $1,000,000 in Section 6 grant funds . The City has committed $125,000 from the Habitat In-Lieu Fee Fund towards the purchase of the parcels. This fund is made up entirely of contributions from developers to mitigate biological impacts from development projects and can only be used for open space purposes. The total purchase price of the four parcels is $1,698,000. Rema ining funds needed for the acquisition, beyond the $1,625,000, will be paid by TPL. TPL 1 of 3 May 7, 2019, Item #4.1 will purchase the property from the property owner and the City will immediately purchase the property from TPL using the grant funds and the $125,000 of Habitat In-Lieu Fee Fund. Both grants have been approved and the City has entered into Grant Agreements with both agencies. The City has also ent ered into a Purchase and Sale Agreement with TPL to purchase the property after they acquire it. It is expected that t he transactions will be complete and escrow closed at the end of May. Both agencies require that a sign be displayed n ear the property that identifies the open space and the various agencies involved with the acquisition. It is the policy of CNRA that they withhold $50,000 of their grant funds until such a sign is erected . City staff has begun working with TPL on the design of a sign that will meet the requirements of both agencies. It is anticipated that one sign will be displayed at the property that will contain the logos of all involved (the City of Poway, TP L, WCB and CNRA). Because of the $50,000 being withheld, it is necessary for the City to pay that amount upfront to complete the sale transaction. Once the sign is installed, CNRA will reimburse the City for the $50,000. T he City Council approved the appropriation of $125,000 from the Habitat In-Lieu Fee Fund on February 19, 2019. An additional appropriation is now needed for the "temporary" $50,000 payment. In addition to this amount, the City must pay for the sign (estimated to be less than $1,000) and its share of escrow costs (estimated to be $9,000). The total of $60,000 would come from the Habitat In-Lieu Fee F und. Environmenta l Review: T his item is not subject to CEQA review. Fisc al Impact : Acquisition of the parcels for the transaction requires an additional $60,000 appropriation from the Habitat Mitigation In-Lieu unappropriated fund balance (F2520-89010) to the Sensitive Lands Acquisition project (PRK0010-30) of which $50,000 will be reimbursed to the City. Public Notification: Public Notification is not required for this item. Attachm e nts: A. Location Map of Real Property Reviewed/Approved By: Wendy Kaserman Assistant City Manager 2 of 3 Reviewed By: Alan Fenstermacher City Attorney Approved By: Tina White City Manager May 7, 2019, Item #4.1 ATTACHMENT A Print Date : 1/10/2019 Van Dam and Poway APNs Van Dam is outlined in red , City of Poway is in blue Map Scale: 1:9,028 Oiscla lmer : ~apQfd ;tcel dala am believed to be aceurale, but aeOJracy Is not guaranleed. This is not a leg al document and s hould not be subs l)uted for a title search, appraisal, survey, or for zoning verific:alion. May 7, 2019, Item #4.2 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT May 7 , 2019 APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED ____ _ RESOLUTION NO. Honorable Mayor and Members of the City Council Michael Obermiller, P.E., Director of Public Works ~ Eric Heidemann, Jt.~~istant Director of Public Works for Maintenance Operations { 1-1'" Update on the Hazard Mitigation Grant Program (HMGP) Application and Reconciliation of Funds for Maintenance of LMDs 83-1 and 86-1 On March 19, 2019 , the City Council authorized staff to submit an application under the Federal Emergency Management Agency (FEMA) Hazard Mitigation Grant Program (HMGP) in the amount of $2,000 ,000 for hazardous tree removals along Twin Peaks and Espola roads (Project Area). At the same meeting, the Council also conducted a workshop to discuss the Landscape Maintenance District (LMD) Advisory Group's recommendation . During the workshop, there was Council consensus to roll all unused funds that were appropriated to LMDs 83-1 and 86-1 for emergency water and tree maintenance to Fiscal Year 2019-20. Staff indicated at the workshop . that it would also return with additional i nformation on tree removal at the May 7, 2019 C ity Council meeting as an informational item . This report summarizes the criteria that will be used by a certified arborist to conduct a tree risk assessment as contained in the grant application and provides a final reconcil iation of maintenance funds for next fisca l year. Both of these items relate to th e short-and long-term maintenance of LMDs 83-1 and 86-1 . Recommended Action: It is recommended that the City Counci l: 1. Direct staff to defer work on the tree risk assessment until the HMGP is awarded and until such time that tree removal work is ready to beg in . The tree risk assessment is a time sensitive task. Performing this task prematurely may undermine the validity of the assessment, to the extent that its findings change over time . It may also require a duplicate effort to update once the tree remova l phase begins . 2. Authorize $97 ,197, which is the unused funds appropriated to LMD 83-1 (water: $77,265, trees: $19,932) and $75,702, which is the unused funds appropriated to LMD 86-1 (water: $51 ,660, trees : $24 ,042) be rolled over to Fiscal Year 2019-20 for the same intended purpose. 1 of 4 May 7, 2019, Item #4.2 Discussion: HMGP Update: In October 2018, the City filed a Notice of Interest (NOi), seeking a maximum of $2,000,000 for the hazardous tree removal mitigation project. The HMGP is a 75/25 cost share. If awarded, the City is required to fund 25 percent of the cost of the project. The application was submitted prior to the April 18, 2019 deadline. Grants are expected to be awarded by December 31, 2019. If Poway is selected, the first installment of funding would be received by Spring 2020, at the earliest. The City Council has already appropriated the City's $250,000 match, in the event that the Poway is selected for the Grant. In anticipation of the HMGP being awarded to Poway, staff has worked with its arborist to develop a scope of work to complete an inventory and assessment of trees within the Project Area. The completion of an inventory will include a title search for all affected trees to ensure trees subject to removal are within public right-of-way and not on private property. Subsequently, a tree risk assessment performed by a certified arborist will be completed to identify vulnerable and high- risk trees, ensure they meet industry criteria for removal and identify appropriate mitigation measures. Additionally, this phase will consist of public outreach through a series of community forums to discuss the conceptual scope of the project and assessment findings relative to respective removals. Staff included a written proforma from the City's tree maintenance contractor, West Coast Arborists, for arborist services report writing in the amount of $15,913.44 for trees within LMDs 83-1 and 86-1. The contractor will utilize the removal criteria listed below to make appropriate decisions on tree removal candidates for hazardous trees in the Project Area. • Overhead Spacing: Trees that pose overhead spacing hazards cause conflicts with overhead utility lines, buildings or aerial signage. In many cases, the conflict could be alleviated by excessive pruning. The trimming technique utilized in the past on these trees (topping) compromises the trees natural form, causes weak limb attachments, allows for insect infestation and initiates rapid new growth which will require a more frequent trim cycle. The most cost-effective solution in this case is to remove the trees and not allow them to create future conflict. Additionally, removal of trees posing a fire fuel ladder threat due to overhead spacing would be considered. • Dead: All dead trees shall be scheduled for immediate removal. Dead trees can become a potential fuel source for fire. Preservation may be an exception to removal to create suitable wildlife habitat only where conditions for public safety are not a concern. • Diseased or Declining: Trees that are diseased or declining, to a point beyond any management strategy to recover them, shall be scheduled for removal. It is recommended that these trees be removed to reduce the potential spread of infestation and also for public safety concerns where targets are in proximity to structures. • Poorly Structured: Trees that have hazardous cracks or structural problems that present above normal safety concerns, and the potential for tree failure that cannot be mitigated through pruning. Other examples of poorly structured trees have active separating, including bark located in a primary branch attachment which greatly increases the potential for limb failure in the future. 2 of 4 May 7, 2019, Item #4.2 • Seedling or Volunteer: Trees not intentionally planted by the City and are inappropriate for the current site conditions. These may be trees planted by homeowners, grown from seeds, grown from surrounding trees or from bird droppings. These trees were not part of the site plan and can contribute to fire fuel ladder potential. • Tree Spacing: Trees that do not have enough growing space in the City right-of-way and pose hazards. Crowding or inappropriate locations often result in displaced hardscape which may present a serious trip and fall hazard for the public. Canopies proximal to other canopies or within 30 feet of structures may encourage a fire fuel potential. Trees that may be planted too close to one another or to objects such as hydrants, poles or meters, or influenced by overhanging private trees. The removal criteria are industry tree care best practices and will be based on maximizing public safety and improving the vigor and growth of the residual trees. While the inventory and assessment could be conducted at this time, staff recommends waiting for a determination on the Grant because of the Grant timeline. Tree condition could change considerably in the next year, which is when Grant funds would become available if Poway is awarded the Grant. If Poway does not receive the Grant, staff will return to Council with options for next steps. Reconciliation of LMD Funds: On August 21, 2018, the City Council appropriated $165,530 from the General Fund Reserves to restore watering to three days per week [from once a week for LMD 83-1 ($113,870) and twice a week for LMD 86-1 ($51,660)] only for the remainder of the fiscal year; appropriated $100,000 from the General Fund Reserves for emergency removal of dead/diseased/fallen trees in LMD 83-1 ($50,000) and LMD 86-1 ($50,000) on/yforthe remainder of the fiscal year. The City Council appropriated the above additional funds this year for water and emergency tree removals. For several reasons, including the unusually wet year, staff does not expect to spend the total balance of those funds. Below is a final reconciliation of the appropriated funds estimated for the balance of the fiscal year: LMD 83-1 One-time additional appropriations Water: $113,870, with $77,265 remaining Trees: $50,000, with $19,932 remaining LMD 86-1 One-time additional appropriations Water: $51,660, with $51,660 remaining Trees: $50,000, with $24,042 remaining Although staff's recommendation last year was to have any unused funds returned to the General Fund Reserves, staff recommends that the remaining funds be rolled over to next fiscal year for the same intended purpose. Staff expects that this funding will be sufficient to continue minimal water schedules of three days a week for both Districts. Environmental Review: This item is not subject to California Environmental Quality Act review. 3 of 4 May 7, 2019, Item #4.2 Fiscal Impact: None Public Notification: A copy of this report was provided to Ms. Toni Bates, chair of the LMD Advisory Group. Attachments: None Reviewed/Approved By: Wendy Kaserman Assistant City Manager 4of4 Reviewed By: Alan Fenstermacher C ity Attorney Approved By: hl.~ Tina M. White City Manager May 7, 2019, Item #4.3 DATE : TO: FROM: C ONT ACT: SUBJ ECT: Sum mary: City of Poway COUNC I L AGENDA REPORT May 7, 2019 Honorable Mayor and Members of the City Council Brenda Sylvia, Director of Community Services APPROVED □ APPROVED AS AMENDED □ (SEE MINUTES) DENIED □ REMOVED □ CONTINUED _____ _ R ESOLUTION NO. Brenda Sylvia , Director of Community Servic~ bsylvia@poway.org or (858) 668-4585 --,.,.~ City of Poway and Poway Unified School District (PUSD) Joint Use Agreement for Cooperative Facilities Use and Maintenance On April 2, 2019, the City Council continued t h is item to the May 7 meeting. Staff is recommending a further continuance so that additional questions can be answered and a comprehensive understanding of responsibilities and impacts can be realized . Recommend e d A ction: It is recommended that the City Council continue this item to an undetermined later meeting. Disc ussion: An updated Joint-Use Agreement for Cooperative Facilities Use and Maintenance with the Poway Unified School District has been drafted, but questions remain ; therefore, staff is recommend ing that this item be continued until a full understanding of obligations can be achieved . Environme ntal Review: This item is not subject to CEQA rev iew. Fiscal Impact: None. Publ ic Notification : Additional notification was sent to the Superintendent, Poway Unified School District. Reviewed/Approved By: Assistant City Manager 1 of 1 Reviewed By: Alan Fenstermacher City Attorney Approved By: ~'oh -~ Tina M. White City Manager DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway MEMORANDUM May 7, 2019 Hon orable Mayor and Members of the City Council Faviola Medina (858)668-4535, fmedina@poway.org Request Council Concurrence of Acting Committee Appointment to the Budget Review Committee per Government Code Section 54974(b) On March 5, 2019, Council appointed five members to the Budget Review Committee (BRC). Each Councilmember offered one nomination for appointment to the committee for the Mayor's appointment with Council concurrence. On April 30, 2019, staff received a resignation from Barry Long, Councilmember Mullin's nominee. His resignation has created an unscheduled vacancy. Pursuant to Government Code Section 54974(b), the legislative body may, if it finds that an emergency exists, fill the unscheduled vacancy immediately. A person appointed to fill the vacancy shall serve only on an acting basis until a final appointment is made. Due to the number of upcoming scheduled Budget Review Committee meetings in May and the work they have to complete within a tight timeframe prior to the budget being presented to the City Council for consideration in June, Councilmember Mullin is requesting that the Mayor with Council concurrence appoint a committee member from the original pool of applicants to serve on an acting basis until the final appointment is made on May 21, 2019. Rec ommended Action: Councilmember Mullin is requesting that the Mayor with Council concurrence appoint Michael E. Firenze as a Budget Review Committee member to serve on an acting basis until the final appointment is made on May 21, 2019 at the Regular City Council meeting. Public Notification: The Notice of Unscheduled Vacancy was posted on the City's website, at the Poway Library and at City Hall on April 30, 2019 and will remain posted until May 15, 2019 to remain in compliance with the Maddy Act. Attachments: A.Notice of Unscheduled Vacancy 1 of 3 May 7, 2019, Item #6.1 Reviewed/Approved By: � c__---· We�aserman Assistant City Manager Reviewed By: Alan Fenstermacher City Attorney Approved By:�J1J.:J� Tina M. White City Manager 2 of 3 May 7, 2019, Item #6.1 3 of 3 May 7, 2019, Item #6.1 NOTICE OF UNSCHEDULED VACANCY VACANCY: NUMBER OF VACANCIES: APPOINTED BY: APPLICATION DEADLINE: Budget Review Committee One (1) -Appointee will fill the position vacated by Barry Long whose term expires 12/31/2020. Councilmember Mullin with City Council concurrence. 5:30 p.m . on Wednesday, May 15, 2019 All applications must be submitted to the City Clerk's office, located in Poway City Hall, 13325 Civic Center Drive or via email to cityclerk@powav.org by 5:30 p.m. May 15, 2019. PURPOSE OF COMMITTEE: To review the annual Operating and Capital Improvement Budget as proposed by the City Manager and report its findings to the City Council. The committee consists of five members. To be appointed to this committee, one must be nominated by a member of the City Council and approved by a simple majority vote of Councilmembers. QUALIFICATIONS: To serve on this Committee, you must be a resident of Poway. NOTICE: Persons holding a position on this Committee are required to 1) file Conflict of Interest Statements in accordance with the Political Reform Act and the City of Poway Conflict of Interest Code, 2) uphold the City Code of Ethics; 3) complete online AB 1234 Ethics Training ; and 4) Sexual Harassment Prevention Training and Education. Members serve without compensation. Committee meetings are held in the City Council Chambers, located at Poway City Hall, 13325 Civic Center Drive, Poway. Meetings are scheduled for: April 30, May 2 , May 8, May 14 and May 22 , 2019. For further information, contact the City Clerk's Office at citycler k@poway.org or (858) 668-4530. Cl ick here for Committee Application. POSTING DATE: April 30, 2019 State of California ) ) SS. County of San Diego ) I , Faviola Medina, CMC, City Clerk of the City of Poway, California, hereby declare under penalty of perjury this Notice was posted on the Bulletin Board in front of City Hall, on the City's website, and at the Poway Library on April 30, 2019. /s/ Faviola Medina Faviola Medina, CMC, City Clerk