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.
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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,
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agendas are published online. Items listed on the agenda with a “#” symbol are in preparation.
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considered. Please submit a Speaker’s Slip to the City Clerk prior to the meeting or the announcement
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1990, persons with a disability may request an agenda in appropriate alternative formats as required
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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
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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.
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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.
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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.
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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)
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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.
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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.
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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.
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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)
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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
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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.
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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:
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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)
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(!)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
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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:
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(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.
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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).
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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
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Scope of Services for Clearwell Upgrades Project
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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
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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.
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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.
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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.
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City of Poway
Scope of Services for Clearwell Upgrades Project
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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.
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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
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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
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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
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8 of 281 May 7, 2019, Item #1.7
Introductory Section
9 of 281 May 7, 2019, Item #1.7
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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.
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City Hall Located at 13325 Civic Center Drive
Mailing Address: P.O. Box 789, Poway, California 92074-0789
www.poway.org
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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.
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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.
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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.
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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
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Donna Go ldsmith
Finance Director
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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
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Financial Section
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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.
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STABILITY. ACCURACY. TRUST.
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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.
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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
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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.
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City of Poway
June 30, 2018 Comprehensive Annual Financial Reporting
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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.
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City of Poway
June 30, 2018 Comprehensive Annual Financial Reporting
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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.
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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
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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.
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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.
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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
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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
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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.
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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
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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
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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.
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE
FINANCIAL STATEMENTS
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Statement of Net Position
June 30, 2018
The accompanying notes are an integral part of these financial statements.
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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
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Statement of Net Position
June 30, 2018 (Continued)
The accompanying notes are an integral part of these financial statements.
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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
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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
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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
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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
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57 of 281 May 7, 2019, Item #1.7
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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
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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
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Notes to Basic Financial Statements
June 30, 2018
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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
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Notes to Basic Financial Statements
June 30, 2018
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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
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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
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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.
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City of Poway
Notes to Basic Financial Statements
June 30, 2018
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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.
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City of Poway
Notes to Basic Financial Statements
June 30, 2018
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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, $2,335,000 was transferred to the Successor Agency. At June 30, 2018, the
Successor Agency’s portion of the outstanding balance of the 2005 Certificates of Participation
was paid off in full.
88 of 281 May 7, 2019, Item #1.7
City of Poway
Notes to Basic Financial Statements
June 30, 2018
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Note 5 – Long-Term Debt (Continued)
B. Fiduciary Funds Long Term Debt (Continued)
Tax Allocation Bonds
Tax Allocation Bonds at June 30, 2018, consisted of the following:
Amount Amount
Balance Balance Due Within Due in More
June 30, 2017 Additions Reductions June 30, 2018 One Year Than One Year
2015A Tax Allocation Bonds 133,110,000$ -$ -$ 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
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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
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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
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Notes to Basic Financial Statements
June 30, 2018
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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
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Notes to Basic Financial Statements
June 30, 2018
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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)
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Notes to Basic Financial Statements
June 30, 2018
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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
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Notes to Basic Financial Statements
June 30, 2018
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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.
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Notes to Basic Financial Statements
June 30, 2018
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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
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Notes to Basic Financial Statements
June 30, 2018
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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
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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
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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
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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
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Notes to Basic Financial Statements
June 30, 2018
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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
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Notes to Basic Financial Statements
June 30, 2018
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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
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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
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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
$2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are
paid annually and are not subject to retroactive adjustments. At June 30, 2018, no
liability was recorded in the accompanying basic financial statements.
112 of 281 May 7, 2019, Item #1.7
City of Poway
Notes to Basic Financial Statements
June 30, 2018
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Note 11 – Joint Venture
The City is a member of the Regional Solid Waste Association Joint Powers Authority (“JPA”).
The JPA was formed on September 1, 1997 by the cities of Del Mar, Encinitas, National City,
Poway, Solana Beach and Vista to provide stable, long-term, cost effective options for all
aspects of regional solid waste disposal. Each member provides a proportionate percentage of
revenue to cover all costs related to the obligations and liabilities of the JPA when they become
due and payable. In the event of dissolution of the JPA, any money or assets in possession of
the Regional Solid Waste Association after the payment of all liabilities, costs, expenses and
charges shall be distributed to the member agencies in proportion to their contributions
determined as of the time of termination. The activities of the JPA are supervised by a board
consisting of one elected member of the legislative body of each of the member agencies.
The City of Escondido joined the JPA as a special contract party for the purpose of working on
Regional Household Hazardous Waste issues. Summarized unaudited information of the JPA
for the fiscal year ended June 30, 2018 is as follows:
Total Assets 479$
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
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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
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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
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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
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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
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Notes to Basic Financial Statements
June 30, 2018
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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
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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
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Required Supplementary Information
For the Year Ended June 30, 2018
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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
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Required Supplementary Information
For the Year Ended June 30, 2018
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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
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Required Supplementary Information
For the Year Ended June 30, 2018
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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
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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.
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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
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177 of 281 May 7, 2019, Item #1.7
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Statistical Section
178 of 281 May 7, 2019, Item #1.7
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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
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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
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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 $34,847,960.
237 of 281 May 7, 2019, Item #1.7
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238 of 281 May 7, 2019, Item #1.7
Required Supplementary Information
(Unaudited)
239 of 281 May 7, 2019, Item #1.7
Poway Housing Authority
Budgetary Comparison Schedule
For the Year Ended June 30, 2018
See accompanying note to budgetary comparison schedule.
-23-
Original
Budget Final Budget Actual
Variance with
Final Budget
REVENUES
Charges for services 49,120$ 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
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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
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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
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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
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250 of 281 May 7, 2019, Item #1.7
GOVERNMENT-WIDE FINANCIAL STATEMENTS
251 of 281 May 7, 2019, Item #1.7
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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
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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
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□
□
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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
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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