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01-07-20 Agenda Packet CITY OF POWAY CITY COUNCIL AGENDA TUESDAY, JANUARY 7, 2020 REGULAR CITY COUNCIL MEETING – 7:00 P.M. COUNCIL CHAMBERS | 13325 CIVIC CENTER DRIVE | POWAY, CALIFORNIA 92064 The City Council also sits as the City of Poway Planning Commission, Poway Housing Authority, Public Financing Authority and Successor Agency to the Poway Redevelopment Agency The City of Poway welcomes you and encourages your continued interest and involvement in the City’s decision-making process. MEETINGS: Regular City Council meetings are held on the first and third Tuesday of the month at 7:00 p.m. PUBLIC MEETING ACCESS: Regular City Council meetings are broadcast live on Cox Communications Channel 24 and Time Warner Channel 19. Council meeting videos are archived and available for viewing on the City’s website. AGENDA MATERIALS: This agenda contains a brief summary of each item the Council will consider. The Agenda and Agenda Packet is posted seven (7) days prior to regular City Council meetings and are available for viewing on the City’s website at www.poway.org or in the City Clerk’s office of City Hall, 13325 Civic Center Drive. Sign up at www.poway.org to receive email notifications when City Council agendas are published online. Items listed on the agenda with a “#” symbol are in preparation. SPEAKERS: Persons wishing to address the Council on matters not on the agenda may do so under Public Comments. Those wishing to speak on items on the agenda may do so when the item is being considered. Please submit a Speaker’s Slip to the City Clerk prior to the meeting or the announcement of the item. All comments will be limited to three (3) minutes. AMERICAN DISABILITIES ACT TITLE II: In compliance with the Americans with Disabilities Act of 1990, persons with a disability may request an agenda in appropriate alternative formats as required by Title II. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s office 858.668.4530 at least 24 hours prior to the meeting. REMINDER: As a courtesy to all attendees, please silence all electronic devices and engage in conversations outside the Council Chambers. John Mullin Caylin Frank Councilmember Deputy Mayor Dave Grosch Barry Leonard Councilmember Councilmember Steve Vaus Mayor Page 2 City Council – Regular Agenda January 7, 2020 CALL TO ORDER ROLL CALL Grosch, Mullin, Leonard, Frank, Vaus PLEDGE OF ALLEGIANCE MOMENT OF SILENCE PRESENTATION Proclamation for Human Trafficking Awareness 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 November 25, 2019 through November 29, 2019; and December 2, 2019 through December 6, 2019 1.3 Approval of the December 3, 2019 Regular City Council Meeting minutes 2. ORDINANCE None. 3. PUBLIC HEARING 3.1 Specific Plan Amendment 19-001 and Development Review 19-003; a request to amend the South Poway Specific Plan and construct a self-storage building City Manager’s Recommendation: It is recommended that the City Council take public input, close the public hearing, adopt the Resolution and introduce the Ordinance for first reading by title only, waive further reading, and schedule adoption for January 21, 2020 3.2 Conditional Use Permit 19-010, Development Review 19-007 and Minor Conditional Use Permit 19-007; a request for modifications to the Pomerado Hospital Campus located at 15615 Pomerado Road City Manager’s Recommendation: It is recommended that the City Council take public input, close the public hearing, and adopt the Resolution Item 1.1 Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on Agenda. January 7, 2020, Item #1.2 January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408355 27-Nov-19 196 AIRGAS USA, LLC 9095169624 Pool Carbon Dioxide 203020 45200 $209.28 408356 27-Nov-19 21 ARAMARK REFRESHMENT SERVICES 6400006 Refreshment Services: Water Filter 400060 47600 $356.54 1630076 Back-ordered coffee, replace broken coffee air pot 500050 47600 $144.40 Total for Check 408356:$500.94 408357 27-Nov-19 835 AT&T 13870821 BAN 9391031633 10/10/19-11/09/19 205020 33010 $41.35 408358 27-Nov-19 835 AT&T 13870575 BAN 9391026536, 10/10/19-11/09/19, Plant Modems 402060 33010 $21.73 408359 27-Nov-19 835 AT&T 13850863 BAN 9391063084 10/03/19-11/02/19 208020 22000 $60.66 408360 27-Nov-19 835 AT&T 13870576 BAN 9391026537 10/10/19-11/09/19 205020 33010 $61.20 408361 27-Nov-19 835 AT&T 13871565 BAN 9391053607 10/10/19-11/09/19 202020 33010 $61.47 408362 27-Nov-19 453 BAY CITY EQUIPMENT INDUSTRIES, INC W216889 Unit 759 Generator Maintenance October 2019 402060 43080 $842.62 W216928 Unit 663 Generator Maintenance November 2019 402060 43080 $732.40 Total for Check 408362:$1,575.02 408363 27-Nov-19 408 BOOT WORLD INC 23397 FY20 Boot Allowance: Williams 402060 49280 $191.99 905367 27-Nov-19 788 CALPERS PERS EFT 2019-23 PERS EFT PE2019-23 F1000 87100 $128,201.10 PERS EFT 2019-23 PERS EFT PE2019-23 111010 13140 $0.10 Total for Check 905367:$128,201.20 408364 27-Nov-19 445 CAL-STATE AUTO PARTS INC 137057 Unit 96: TPMS Sensor 413010 47900 $64.67 408365 27-Nov-19 1620 CARAHSOFT TECHNOLOGY CORP.IN708502 MSSP Project 113010 41200 $2,189.94 408366 27-Nov-19 889 CHEMTRADE CHEMICALS CORPORATION 92779960 Aluminum Sulfate, 10/17/19, 48,000 pounds 402060 45200 $4,765.66 408367 27-Nov-19 1094 COMMERCIAL AQUATIC SERVICES I19-5964 Bulk Chlorine 203020 45200 $552.26 408350 27-Nov-19 999998 CONRAD, SHARLA 11/19 - Conrad Welcome Reception: Andrea Palacios 121010 14020 $51.66 408368 27-Nov-19 286 COSTCO WHOLESALE 775123061 PW All Hands Meeting Refreshments 400060 14010 $143.22 408369 27-Nov-19 2010 CRAYON SOFTWARE EXPERTS LLC 3022696 Microsoft EA 113010 61222 $2,352.00 408370 27-Nov-19 108 CULLIGAN WATER CONDITIONING 91172570 Salt, 11/05/2019, 2,450 pounds 402060 45200 $422.38 905366 25-Nov-19 942 DEPT. OF CHILD SUPPORT SERVICES CLD WH PE2019-24 Payroll Garnishment F1000 86150 $1,889.98 905365 25-Nov-19 97 EMPLOYMENT DEVELOPMENT DEPARTMENT CAL WH PE2019-24 CAL W/H EFT PE2019-24 F1000 86170 $28,705.20 408371 27-Nov-19 2058 EMPLOYMENT DEVELOPMENT DEPARTMENT PPE 11/17/19 Payroll Garnishment F1000 86150 $147.30 The City of Poway Director of Finance Submits the Following Register of Demands for the period 11/25/2019 - 11/29/2019 and Recommends its Ratification/Approval: Run Date:05-Dec-19 ATTACHMENT A3 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408372 27-Nov-19 350 EWING IRRIGATION 8653976 Sycamore Creek: irrigation supplies 424140 47700 $6.69 8653975 3in digging trench shovel 112010 45600 $22.96 Total for Check 408372:$29.65 408373 27-Nov-19 1189 EYE/COMM, INC.53169 MCUP19-003 Extended Public Noticing & Printing 301030 41200 $334.52 408374 27-Nov-19 102 FEDEX 6-779-43248 Express shipment 80004200 P0000 $39.19 6-779-43248 Express shipment 80002412 P2410 $39.19 6-839-68337 Express shipment 80001002 P1000 $38.67 Total for Check 408374:$117.05 408375 27-Nov-19 116 FERGUSON WATERWORKS 0697101 Meter Bolts and Gaskets 402560 43080 $78.68 0690842 Cap & Chain F5100 81350 $202.03 Total for Check 408375:$280.71 408376 27-Nov-19 869 FINANCIAL CREDIT NETWORK PWYEMR 10/22/19 FCN Fees to Collect Invoice 190156 504050 77540 $130.00 408378 27-Nov-19 1628 GARRIEPY, BRENT 1603.100.19 Instructor Payment Summer 2019 208020 41300 $104.40 1603.201.19 Instructor Payment Fall 2019 208020 41300 $345.60 Total for Check 408378:$450.00 408379 27-Nov-19 2070 GOOD-MEN ROOFING & CONSTRUCTION INC 26 Roofing and HVAC 80006171 P6170 $68,659.51 408380 27-Nov-19 120 GRAINGER INC 9363245029 Barricade Tape F1000 81350 $91.54 9360296900 Wye F5200 81350 $249.29 Total for Check 408380:$340.83 408353 27-Nov-19 999995 GREEN, CASEY 2014118.001 Deposit Refund Permit 22186 205020 74710 $282.00 408381 27-Nov-19 2118 HARBOR COATING AND RESTORATION 2200129-PP1 Facilities Painting 80006171 P6170 $70,559.35 2200129-PP1 Facilities Painting 80006171 P6170 $10,450.00 Total for Check 408381:$81,009.35 408382 27-Nov-19 152 HOME DEPOT COMMERCIAL ACCOUNT 0350140 Repair supplies 414040 47600 $39.21 9350155 Oils, Grease, Paint and Malathion 403070 47600 $94.45 9340114 Truck Tools 402560 43080 $26.30 6370353 Concrete Mix F1000 81350 $1,052.29 8340122 Bronto repair supplies 412040 47600 $59.24 8360089 Shovels 414040 45600 $120.59 8340123 Carpet stain remover 112010 47900 $6.78 5220237 Tech-Electrical Plugs 204020 47600 $108.01 Total for Check 408382:$1,506.87 2 of 7Page: Register of Demands: Warrants from 11/25/2019 - 11/29/2019 4 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408383 27-Nov-19 644 INFOSEND 161571 Mailing Statements 10/17/19-10/31/19 112010 33020 $1,256.22 161571 Mailing Statements 10/17/19-10/31/19 112010 41200 $753.30 161279 Mailing Statements 10/03/19-10/16/19 112010 33020 $1,226.28 161279 Mailing Statements 10/03/19-10/16/19 112010 41200 $702.29 162707 Mailing Statements 11/05/19-11/18/19 112010 33020 $1,026.28 162707 Mailing Statements 11/05/19-11/18/19 112010 41200 $588.37 Total for Check 408383:$5,552.74 408384 27-Nov-19 1529 INFRASTRUCTURE ENGINEERING CORPORATION 12099 Design Services 80005106 P5100 $1,645.00 408385 27-Nov-19 2061 J.R. FILANC CONSTRUCTION COMPANY INC 2200083-PP1 Upgrade Projects 80005106 P5100 $56,183.00 408386 27-Nov-19 750 JCI JONES CHEMICALS, INC.806467 Liquid Chlorine, 11/18/19, 17,500 pounds 402060 45200 $2,950.00 408387 27-Nov-19 129 JRC PRINTING LLC 39650 Business Cards: Herron 415010 47100 $34.48 39649 Business Cards: Heidemann 400060 49220 $34.48 39667 Printing for Lake Events 202020 49220 $157.85 Total for Check 408387:$226.81 408389 27-Nov-19 597 KIMBALL-MIDWEST 7553213 Torq CB F1000 81350 $348.72 408390 27-Nov-19 737 LAWSON PRODUCTS, INC.9307180856 Shop: Removable thread locker 413010 47600 $25.22 408391 27-Nov-19 910 LOWE'S 58739 Power sprayers 414040 47900 $549.69 408351 27-Nov-19 999998 MANN, DIANE 11/19 - Mann Mileage, MMASC 2019 410060 14010 $15.66 408392 27-Nov-19 425 MCPHIE, MARILYN FY20 Xmas Emcee-2 FY20 Xmas Emcee-2 205020 41200 $450.00 408394 27-Nov-19 448 MDK PRODUCTIONS, INC 13789 New Kiosk Signs 104030 49320 $2,013.23 408393 27-Nov-19 1364 MICHAEL BAKER INTERNATIONAL INC.1065188 Plan Checks: October 2019 305030 41220 $4,224.00 1065188 Plan Checks: October 2019 391030 59100 $924.00 Total for Check 408393:$5,148.00 408388 27-Nov-19 2129 MORIARTY, ANDREA FY20 Xmas Ent-5 FY20 Xmas Entertainment-5 205020 41200 $200.00 408352 27-Nov-19 999998 MURGUIA, ISRAEL 11/19 - Murguia Mileage 2019 MMASC Conference 400060 14010 $252.88 408395 27-Nov-19 175 NAPA AUTO PARTS/POWAY 412285 Truck Cleaning 402560 43080 $21.53 411203 Unit 96: Tailgate Lock Actuator 413010 47900 $150.88 411247 Unit 67: Wiper 413010 47900 $27.99 410899 Stock: Napa Gold Filters 413010 47900 $201.97 410904 Stock: Oil Filters 413010 47900 $14.27 412261 Unit 42: Fuel Vapo 413010 47900 $48.60 3 of 7Page: Register of Demands: Warrants from 11/25/2019 - 11/29/2019 5 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408395 27-Nov-19 175 NAPA AUTO PARTS/POWAY 412245 900A: Red Fleet Wipers 413010 47900 $27.45 Total for Check 408395:$492.69 408396 27-Nov-19 527 NINYO & MOORE 230828 FY19 Street Maintenance 411040 43203 $7,480.00 231794R FY19 Street Maintenance 411040 43203 $11,579.00 Total for Check 408396:$19,059.00 408397 27-Nov-19 84 OFFICE DEPOT BUSINESS SERVICES DIVISION 403114688-001 Exhibit A Stamp for front counter 301030 47100 $80.80 379721126-001 Blue Sky Office Supplies 207020 47100 $30.16 387714985-001 Office Supplies: 2nd Floor 304030 47100 $43.09 405678080-001 Office Supplies: 2nd Floor 300030 47100 $40.62 Total for Check 408397:$194.67 408398 27-Nov-19 186 PACIFIC PIPELINE SUPPLY S100410592.001 PVC Piping and Fittings 402060 43080 $70.93 408354 27-Nov-19 999997 PARENTI, MICHAEL 20980000-33 Closing Bal Refund: Deposit #2098000-33 F5100 86620 $325.00 20980000-33 Closing Bal Refund: Deposit #2098000-33 F5100 81020 ($120.46) Total for Check 408354:$204.54 408399 27-Nov-19 194 PARKHOUSE TIRE INC 3010306232 Unit 506 Loader: Tires 413010 43120 $1,802.44 3010306607 Tire Disposal 413010 29100 $249.50 Total for Check 408399:$2,051.94 408349 27-Nov-19 999998 PARKS, JESSICA 11/19 - Parks Mileage Reimbursement: 2019 MMASC 401060 14010 $252.88 11/19 - Parks (2)Parking Reimbursement: MMASC 401060 14010 $30.00 Total for Check 408349:$282.88 408400 27-Nov-19 266 PERRY FORD OF POWAY 6128352/2 Unit 20: Water Utility Truck 413010 43120 $1,938.23 408401 27-Nov-19 1688 PETTY CASH COMMUNITY SERVICES PC Nov 2019 Petty Cash Community Services 202020 47600 $56.58 PC Nov 2019 Petty Cash Community Services 202020 49280 $47.49 PC Nov 2019 Petty Cash Community Services 202020 49320 $48.70 PC Nov 2019 Petty Cash Community Services 204020 47600 $11.86 PC Nov 2019 Petty Cash Community Services 204020 31010 $75.59 PC Nov 2019 Petty Cash Community Services 205020 31010 $34.99 PC Nov 2019 Petty Cash Community Services 207020 47600 $40.96 Total for Check 408401:$328.95 408402 27-Nov-19 25 POWAY CENTER FOR THE PERFORMING ARTS FOUNDATION 11172019 Poway OnStage Ticket Sales Transfer F1000 86330 $6,514.00 408377 27-Nov-19 400 POWAY ENTERTAINMENT CO LLC 11617 Deposit for 12/19/19 Safety Patrol Bowling Event 504050 47600 $418.00 408403 27-Nov-19 265 POWAY FIREFIGHTERS ASSOCIATION DUES PPE 11/17/19 Fire Association dues for PPE 11/17/19 F1000 86100 $2,533.50 4 of 7Page: Register of Demands: Warrants from 11/25/2019 - 11/29/2019 6 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408404 27-Nov-19 274 POWAY SENIOR CENTER 1048 PSC Building Repair Reimbursement 80007712 P7710 $26,871.00 408405 27-Nov-19 1058 R & B PINTO PROPERTIES LLC LKCONC 11/12-11/17 Wkly Lk Conc 11/12/19-11/17/19 F1000 86360 $1,667.98 408406 27-Nov-19 1669 RELIANT AQUARIUM DESIGN INC.26278 Library Aquarium Maintenance 206020 43040 $88.69 408407 27-Nov-19 210 REX TROPHIES 7038 Name Plates: Herron & DePriest 401060 47100 $9.16 7038 Name Plates: Herron & DePriest 415010 47100 $9.16 Total for Check 408407:$18.32 408408 27-Nov-19 216 SAN DIEGO COUNTY WATER AUTHORITY 1019-11 October 2019: Water Deliveries and Charges 402060 27011 $925,816.50 1019-11 October 2019: Water Deliveries and Charges 402060 27012 $122,220.00 1019-11 October 2019: Water Deliveries and Charges 402060 27013 $323,081.33 Total for Check 408408:$1,371,117.83 408410 27-Nov-19 221 SAN DIEGO GAS & ELECTRIC 48745089461-11/19 13100 Poway Road 10/13/19-11/12/19 104030 41200 $10.00 59531914804-11/19 13053 Poway Road 10/09/19-11/10/19, 263 kWh 104030 41200 $75.92 48321383007-11/19 12910 Camino Del Valle 10/09/19-11/10/19, 13,485 kWh 403070 21042 $2,630.69 82015538790-11/19 13621 Gregg St 10/09/19-11/10/19, 12,402 kWh 405060 21058 $2,231.40 59971687019-11/19 14114 Midland Rd 10/13/19-11/12/19, 708 kWh 205020 21010 $204.74 96907731131-11/19 18775 1/2 Heritage Dr 10/09/19-11/10/19, 389 kWh 403070 21060 $117.07 84321647992-11/19 17710 1/2 Old Coach 10/09/19-11/10/19, 7,605 kWh 403070 21055 $1,507.84 94601424467-11/19 17749 Saint Andrews 10/09/19-11/10/19, 2,099 kWh 403070 21053 $568.91 32222332511-11/19 14560 Lake Poway Rd 10/09/19-11/10/19 202020 21010 $587.71 25816724085-11/19 13552 Highlands Ranch 10/09/19-11/10/19, 352 kWh 403070 21048 $107.40 25808266178-11/19 14445 Lake Poway 10/09/19-11/10/19, 80, 216 kWh 402060 21056 $10,372.76 Total for Check 408410:$18,414.44 408409 27-Nov-19 218 SAN DIEGO GAS & ELECTRIC/SUNDRY 31507776772-11/19 Group Sundry Bill: Nov 2019 205020 21010 $348.74 31507776772-11/19 Group Sundry Bill: Nov 2019 414040 21010 $28.57 31507776772-11/19 Group Sundry Bill: Nov 2019 430050 21020 $2,106.53 31507776772-11/19 Group Sundry Bill: Nov 2019 430050 21030 $28,709.30 36194890059-11/19 Group Sundry Bill: Nov 2019 208020 21010 $6,533.08 36194890059-11/19 Group Sundry Bill: Nov 2019 203020 21010 $5,047.47 36194890059-11/19 Group Sundry Bill: Nov 2019 204020 21010 $554.62 36194890059-11/19 Group Sundry Bill: Nov 2019 205020 21010 $336.07 5 of 7Page: Register of Demands: Warrants from 11/25/2019 - 11/29/2019 7 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408409 27-Nov-19 218 SAN DIEGO GAS & ELECTRIC/SUNDRY 36194890059-11/19 Group Sundry Bill: Nov 2019 413010 21010 $1,053.72 36194890059-11/19 Group Sundry Bill: Nov 2019 402560 21010 $12.25 36194890059-11/19 Group Sundry Bill: Nov 2019 414040 21010 $766.17 36194890059-11/19 Group Sundry Bill: Nov 2019 421040 21010 $58.47 36194890059-11/19 Group Sundry Bill: Nov 2019 423040 21010 $88.93 36194890059-11/19 Group Sundry Bill: Nov 2019 424040 21010 $10.66 36194890059-11/19 Group Sundry Bill: Nov 2019 420140 21010 $99.34 36194890059-11/19 Group Sundry Bill: Nov 2019 430050 21020 $2,386.30 Total for Check 408409:$48,140.22 408411 27-Nov-19 528 STATEWIDE SAFETY & SIGNS, INC 01005587 Sign bolts 411040 45300 $285.54 408412 27-Nov-19 1352 SYNCB/AMAZON 8781042209-12/19 Amazon.com Purchases 400060 47100 $20.45 8781042209-12/19 Amazon.com Purchases 415010 47600 $259.29 8781042209-12/19 Amazon.com Purchases 401060 47100 $21.19 8781042209-12/19 Amazon.com Purchases 113010 47600 $41.93 8781042209-12/19 Amazon.com Purchases 113010 43080 $96.96 Total for Check 408412:$439.82 408348 27-Nov-19 999991 TECH CONTRACTORS WI18-002 WI18-002 Poway Tech Center West - Improvements 391030 59800 $410.00 408347 27-Nov-19 999993 TECH CONTRACTORS G17-0003 G17-0003 Release Grading Cash Bond 390030 59800 $40,000.00 G17-0003 G17-0003 Release Grading Cash Bond 391030 59800 $42.00 Total for Check 408347:$40,042.00 905364 25-Nov-19 941 U.S. DEPT. OF THE TREASURY FED WH PE2019-24 FED W/H EFT PE2019-24 F1000 86180 $22,028.78 FED WH PE2019-24 FED W/H EFT PE2019-24 F1000 86160 $76,438.18 Total for Check 905364:$98,466.96 408413 27-Nov-19 877 ULINE 113756640 Operating Supplies: Reflective Tape 415010 47600 $135.77 408414 27-Nov-19 1580 UNIFIRST CORPORATION 361 0090889 Uniforms and Mats Weekly Rental Fee 415010 41200 $8.54 361 0090889 Uniforms and Mats Weekly Rental Fee 402060 49280 $21.75 361 0090881 Mats & Uniforms: Fleet 415010 41200 $8.81 361 0090881 Mats & Uniforms: Fleet 413010 49280 $46.02 361 0090884 Mats & Uniforms: Warehouse 415010 41200 $1.22 361 0090884 Mats & Uniforms: Warehouse 410060 49280 $4.14 361 0090043 Twin Peaks Gym: Mats and Mops 415010 41200 $11.37 361 0090894 Weekly mat cleaning service PCPA 204020 49280 $9.63 Total for Check 408414:$111.48 6 of 7Page: Register of Demands: Warrants from 11/25/2019 - 11/29/2019 8 of 19January 7, 2020, Item #1.2 January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408429 06-Dec-19 506 A O REED & CO 314695 Community Pool: odor issue 415010 43020 $182.00 96274 Fire Station #2: lift station service 415010 41200 $206.00 Total for Check 408429:$388.00 408430 06-Dec-19 6 AGRICULTURAL PEST CONTROL 514266 Pest control 415010 41200 $570.36 408431 06-Dec-19 196 AIRGAS USA, LLC 9095130767 Medical Oxygen 503050 47500 $69.70 9095036071 Medical Oxygen 503050 47500 $326.55 Total for Check 408431:$396.25 408432 06-Dec-19 835 AT&T 13944851 BAN 9391026561 10/24/19-11/23/19 208020 33010 $41.84 408433 06-Dec-19 835 AT&T 13944854 BAN 9391026564 10/24/19-11/23/19 201020 33010 $61.14 408434 06-Dec-19 835 AT&T 13945316 BAN 9391051949 -City Hall Net- 10/24/19-11/23/19 114010 22000 $552.48 408435 06-Dec-19 835 AT&T 13944856 BAN 9391026567 -Group Bill- 10/24/19-11/23/19 114010 33010 $759.00 408436 06-Dec-19 835 AT&T 13932402 BAN 9391050366 10/20/19-11/19/19 430050 23010 $1,048.97 408437 06-Dec-19 1853 AT&T 200327 MCCC Relocate Cable to Pool Telco Room 80004200 P0000 $8,610.87 408439 06-Dec-19 700 BLUE PACIFIC ENGINEERING & CONSTRUCTION 2200028-PP5 Martincoit Road Sewer 80004200 P0000 $104,737.50 408440 06-Dec-19 2127 BROWN FORESTRY PRODUCTS LLC INV-001218 Cutting knives 412040 43080 $2,033.40 408441 06-Dec-19 445 CAL-STATE AUTO PARTS INC 460935 Battery Credit 413010 47900 ($111.24) 460968 Battery Credit 413010 47900 ($159.22) 136586 Unit 20 - Sensor 413010 47900 $31.44 136808 Unit 20 - Sensor 413010 47900 $48.37 142731 Unit 24 - Module Kit 413010 47900 $214.63 Total for Check 408441:$23.98 408425 06-Dec-19 999995 CANTWELL, DIANNE 2014142.001 Deposit Refund Permit 22206 205020 74710 $200.00 408442 06-Dec-19 1694 COASTAL APPLIANCE 941826 Fire Station #2: dishwasher 415010 43040 $100.00 408443 06-Dec-19 1112 COLANTUONO, HIGHSMITH & WHATLEY, PC 40655 RPTTF Legal Services 17% Share - Oct 2019 310080 17011 $373.40 408428 06-Dec-19 999997 CONNOLLY, ANTOINETTE 12004200-02 Closing Bal Refund: Overpay #12004200-02 F5100 81020 $72.38 408444 06-Dec-19 2131 CORDERO, RAFAEL PEREZ FY20 Xmas Security FY20 Xmas Security 205020 41200 $1,675.00 408445 06-Dec-19 94 COX COMMUNICATIONS 62872701-12/19 Cable TV / Internet Group Bill: Dec 2019 114010 22000 $517.46 408446 06-Dec-19 94 COX COMMUNICATIONS 41212502-12/19 City Hall Internet Connection: Dec 2019 114010 22000 $1,298.50 408447 06-Dec-19 112 DUDEK & ASSOCIATES INC 20198498 Stormwater Maintenance Monitoring 412040 41200 $950.65 The City of Poway Director of Finance Submits the Following Register of Demands for the period 12/2/2019 - 12/6/2019 and Recommends its Ratification/Approval: Run Date:10-Dec-19 ATTACHMENT B10 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408448 06-Dec-19 2121 EC CONSTRUCTORS, INC 2200152-PP1 Community Center Construction 80004200 P0000 $243,664.55 408449 06-Dec-19 350 EWING IRRIGATION 8708625 Aubrey Park: irrigation supplies 414040 47700 $170.26 408450 06-Dec-19 102 FEDEX 6-833-46721 Express shipment 200020 33020 $39.40 408451 06-Dec-19 2126 FIRE HOOKS UNLIMITED 204381 Irons Strap 501050 47600 $62.40 Total for Check 408451:$62.40 408452 06-Dec-19 1380 FLYERS ENERGY LLC CFS-2114664 Safety Services 11/08/19-11/14/19 fuel 413010 31020 $378.32 408424 06-Dec-19 999995 GONZALEZ, MARIA 2014111.001 Deposit Refund Permit 22134 205020 74710 $300.00 408453 06-Dec-19 573 GOVCONNECTION, INC.57305851 Projector lamp 113010 47600 $160.00 408454 06-Dec-19 120 GRAINGER INC 9369096954 Dock Supplies 202020 47600 $19.07 408455 06-Dec-19 117 HAAKER EQUIPMENT COMPANY C57158 Unit 7 Vactor - Monitor LCD 413010 47900 $650.68 408456 06-Dec-19 483 HANSON AGGREGATES PACIFIC SOUTHWEST, INC 2072174 6.25 Tons of Asphalt 411040 45900 $522.25 2074223 3.18 tons of asphalt 411040 45900 $265.72 Total for Check 408456:$787.97 408457 06-Dec-19 480 HARPER & ASSOCIATES ENGINEERING INC ENG-6784 Special Inspection 80005106 P5100 $17,557.00 408458 06-Dec-19 1048 HARRIS COMPUTER SYSTEMS CT044259 50% Deposit: SSA Calculation Modification 112010 41200 $3,050.00 408459 06-Dec-19 127 HAWTHORNE MACHINERY CO PC000091235 Unit 924 - Red Fleet - Bolts and Seals 413010 47900 ($69.43) PS000869202 Unit 924 - Red Fleet - Seal, Tube 413010 47900 $212.62 Total for Check 408459:$143.19 408460 06-Dec-19 142 HEAVILAND ENTERPRISES INC 29870 Weed Abatement - Wanesta Dr. & 13422 Community Rd.309030 41200 $2,850.00 408461 06-Dec-19 152 HOME DEPOT COMMERCIAL ACCOUNT 1211793 Hammers 411040 45600 $11.44 1360082 Work Order 233617: repair supplies 415010 45600 $26.36 7370381 Repair supplies 415010 47600 $56.50 8340117 Repair supplies 415010 47600 $103.72 9370374 Repair supplies 415010 47600 $268.97 4370391 Water Filter Cartridge F1000 81350 $171.97 4370392 Work Order: 233896 repair supplies 415010 47600 $34.95 2340165 Fire Station #1: dishwasher 415010 48999 $678.79 4360099 Mower repair parts 412040 47600 $14.92 Total for Check 408461:$1,367.62 408462 06-Dec-19 1070 HUNTER GENERAL ENGINEERING INC.2200111-PP2 Hydronic Piping 80006171 P6170 $68,559.60 905370 05-Dec-19 906 INSIGHT NORTH AMERICA LLC 250M-NT Investment Advisory Services Oct 2019 111010 17999 $3,460.56 408463 06-Dec-19 1363 JEFF KATZ ARCHITECTURAL CORPORATION 19392 Construction Documents Design 80004200 P0000 $15,886.33 2 of 10Page: Register of Demands: Warrants from 12/2/2019 - 12/6/2019 11 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408464 06-Dec-19 703 JENAL ENGINEERING CORP.19-2812 Diesel Hose 413010 41200 $141.56 19-4059 Krueger Tank Gauge 80002504 P2500 $135.10 Total for Check 408464:$276.66 408465 06-Dec-19 757 KOI CITY INC 019-722 November, weekly maintenance 414040 41200 $300.00 019-743 Water conditioner 414040 41200 $16.14 Total for Check 408465:$316.14 408421 06-Dec-19 999998 LEDREW, MARC 12/19 - LeDrew FY20 Boot Allowance: LeDrew 420040 49280 $138.62 408466 06-Dec-19 391 LIFE-ASSIST, INC.958164 Medical Supplies for Station 1 503050 47400 $115.49 958170 Medical Supplies for Station 3 503050 47400 $146.78 957741 Medical Supplies for Station 1 503050 47400 $895.23 947737 Medical Supplies for Station 3 503050 47400 $367.93 948384 Medical Supplies for Station 1 503050 47400 $902.75 948835 Medical Supplies for Station 1 503050 47400 $107.61 948855 Medical Supplies for Station 3 503050 47400 $112.74 948918 Medical Supplies for Station 1 503050 47400 $178.87 949029 Medical supplies for Station 1 503050 47400 $29.20 949026 Medical Supplies to Station 3 503050 47400 $29.20 949389 Medical Supplies for Station 1 503050 47400 $1,421.90 950252 Medical Supplies for Station 3 503050 47400 $1,349.34 952969 Medical Supplies for Station 3 503050 47400 $747.05 953391 Medical Supplies for Station 1 503050 47400 $1,310.44 953718 Medical Supplies for Station 1 503050 47400 $424.69 Total for Check 408466:$8,139.22 408505 06-Dec-19 1771 LOS ANGELES TRUCK CENTERS, LLC XA290049955:01 Stock - Exhaust Fluid 413010 47900 $45.19 408468 06-Dec-19 2132 M.A.S.S.H. INC 20426 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20427 Work Order #2259 - Water 402060 47900 EM001 $3,864.00 20428 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20429 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20430 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20431 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20432 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20433 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20434 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 3 of 10Page: Register of Demands: Warrants from 12/2/2019 - 12/6/2019 12 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408468 06-Dec-19 2132 M.A.S.S.H. INC 20435 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20436 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20437 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20438 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20439 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20440 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20441 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20442 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20443 Work Order #2259 - Water 402060 47900 EM001 $2,256.00 20445 Work Order #2259 - Water 402060 47900 EM001 $2,256.00 20446 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20447 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20449 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20450 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20451 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20452 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20453 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20454 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20467 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20469 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20468 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20472 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20475 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20455 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20456 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20457 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20459 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20460 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20461 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20462 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20463 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20464 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20465 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 4 of 10Page: Register of Demands: Warrants from 12/2/2019 - 12/6/2019 13 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408468 06-Dec-19 2132 M.A.S.S.H. INC 20466 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20470 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20471 Work Order #2259 - Water 402060 47900 EM001 $3,864.00 20473 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 20474 Work Order #2259 - Water 402060 47900 EM001 $3,384.00 Total for Check 408468:$157,752.00 408467 06-Dec-19 933 MAIL DISPATCH 189571 Mail Courier Service: Dec 2019 114010 41200 $1,350.00 905372 06-Dec-19 616 MANUFACTURERS & TRADERS TRUST CO. BANK 457 PPE 12/01/19 ICMA 457 deferred comp deductions PPE 12/01/19 F1000 86120 $29,955.83 905373 06-Dec-19 616 MANUFACTURERS & TRADERS TRUST CO. BANK 457R PPE 12/01/19 ROTH 457 deferred comp PPE 12/01/19 F1000 86120 $3,615.99 905374 06-Dec-19 616 MANUFACTURERS & TRADERS TRUST CO. BANK 401A PPE 12/01/19 401A employer contributions PPE 12/01/19 F1000 86130 $11,582.59 905375 06-Dec-19 616 MANUFACTURERS & TRADERS TRUST CO. BANK ROTH PPE 12/01/19 ROTH IRA employee contributions PPE 12/01/19 F1000 86220 $225.00 905376 06-Dec-19 616 MANUFACTURERS & TRADERS TRUST CO. BANK RHS PPE 12/01/19 Retirement Health Savings Plan (Safety) PPE 12/01/19 F1000 87004 $1,698.24 408422 06-Dec-19 999998 MARGIS, ALLIE 12/19 - Margis Mileage 07/19/19-11/19/19 202020 21010 $132.24 408469 06-Dec-19 2055 MBO INC 205272 MCCC: construction phase 80004200 P0000 $885.60 408438 06-Dec-19 40 MEACHAM, ANGELICA 2246 City logo shirts 413010 49280 $150.00 408426 06-Dec-19 999999 OCCUPATIONAL HEALTH CENTERS OF THE SOUTHWEST, P.A.320758432 Pre-Employment Physical 121010 49160 $230.00 408470 06-Dec-19 84 OFFICE DEPOT BUSINESS SERVICES DIVISION 406563750-001 Office supplies 400060 47100 $17.62 406558270-001 Office supplies 400060 47100 $84.29 405966526-001 Office Supplies 101010 47100 $115.69 405966527-001 Office Supplies 101010 47100 $6.78 405965432-001 Office Supplies 101010 47100 $27.57 405966528-001 Office Supplies 101010 47100 $43.08 Total for Check 408470:$295.03 408471 06-Dec-19 1757 ONE RING NETWORKS, INC INV000000328844 City Hall Backup Internet: Dec 2019 114010 22000 $499.00 408472 06-Dec-19 219 PETTY CASH FIRE FDPC-11252019 Fire Department Petty Cash 500050 49040 $36.55 FDPC-11252019 Fire Department Petty Cash 501050 45600 $10.73 FDPC-11252019 Fire Department Petty Cash 501050 47600 $80.00 FDPC-11252019 Fire Department Petty Cash 502050 14010 $15.00 FDPC-11252019 Fire Department Petty Cash 80001005 P1000 $43.00 Total for Check 408472:$185.28 408473 06-Dec-19 274 POWAY SENIOR CENTER 12/19 Monthly Rent - December 2019 Payment 80007712 P7710 $9,500.00 5 of 10Page: Register of Demands: Warrants from 12/2/2019 - 12/6/2019 14 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408474 06-Dec-19 671 PRODUCTIVITY PLUS ACCOUNT 233624 Unit 405: 12 Bellows, Bolts, Nuts, Washers 413010 47900 $120.03 408475 06-Dec-19 524 PROGRESSIVE TECHNOLOGY SECURITY SYSTEMS INC 45762 City Hall: door access 415010 41200 $228.34 45763 City Hall: door access 415010 43040 $114.17 Total for Check 408475:$342.51 408476 06-Dec-19 653 PSOMAS, INC 157776 Design Services 80005207 P5200 $2,032.15 408477 06-Dec-19 1058 R & B PINTO PROPERTIES LLC LKCONC 11/20-11/24 Wkly Lk Conc 11/20/19-11/24/19 F1000 86360 $1,723.44 408478 06-Dec-19 1933 R A BATCHELOR CO.4657 Annual Inspection 413010 43120 $700.00 408479 06-Dec-19 1151 RANCHO BERNARDO SIGNS 7283 Lake Banner Updates 202020 49320 $43.10 408480 06-Dec-19 1669 RELIANT AQUARIUM DESIGN INC.26332 Library Aquarium Maintenance 206020 43040 $65.00 26333 Library Aquarium Maintenance 206020 43040 $94.07 Total for Check 408480:$159.07 408481 06-Dec-19 230 RUTAN AND TUCKER 852944 012782-0005 Professional Service through 10/31/19 102010 17010 $12,443.07 852952 012782-0021 Professional Service through 10/31/19 80001001 P1000 $13,093.14 852961 012782-0027 Professional Service through 10/31/19 102010 17020 $5,936.20 852946 012782-0011 Professional Service through 10/31/19 102010 17010 $805.00 852945 012782-0006 Professional Service through 10/31/19 121010 17011 $345.00 852953 012782-0023 Professional Service through 10/31/19 80001001 P1000 $467.20 852942 012782-0003 Professional Service through 10/31/19 80001001 P1000 $233.60 Total for Check 408481:$33,323.21 408482 06-Dec-19 845 SAGE VIEW INC.2973 Grove Maintenance 414040 41600 $8,474.99 408483 06-Dec-19 213 SAN DIEGO COUNTY SHERIFF'S DEPARTMENT Sept 2019 Contract 73290R Sept Services 504050 41030 $1,111,001.19 Sept 2019 Contract 73290R Sept Services 504050 77580 ($711.81) Sept 2019 Contract 73290R Sept Services 504050 41040 $20,785.62 Total for Check 408483:$1,131,075.00 408485 06-Dec-19 221 SAN DIEGO GAS & ELECTRIC 07047022786-11/19 12335 Crosthwaite Training Tower 10/09/19-11/10/19 501050 21010 $2,409.00 408484 06-Dec-19 218 SAN DIEGO GAS & ELECTRIC/SUNDRY 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 421040 21010 $69.31 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 423040 21010 $45.21 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 424040 21010 $23.83 6 of 10Page: Register of Demands: Warrants from 12/2/2019 - 12/6/2019 15 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408484 06-Dec-19 218 SAN DIEGO GAS & ELECTRIC/SUNDRY 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 425040 21010 $33.42 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 426040 21010 $10.91 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 424140 21010 $23.11 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 425140 21010 $22.89 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 421240 21010 $11.12 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 430050 21020 $1,405.83 04944440039-11/19 Special Districts Group Bill 14 10/08/19-11/07/19 420140 21010 $191.16 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21010 $1,928.17 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21041 $6,554.82 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21043 $3,069.81 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21049 $3,626.25 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21050 $1,851.11 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21051 $8,815.28 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21052 $7,273.89 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21054 $3,727.14 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21057 $1,171.96 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21059 $1,455.52 04920133400-11/19 Group Bill Cycle 14 10/09/19-11/10/19, 240,609 kWh 402060 21061 $1,610.72 Total for Check 408484:$42,921.46 408486 06-Dec-19 829 SC COMMERCIAL, LLC 0733155-IN Fuel for Fleet Diesel 440.50 Gal 413010 31020 $1,704.92 0731297-IN Fuel for Fleet Diesel 420.40 Gal 413010 31020 $1,614.08 Total for Check 408486:$3,319.00 408487 06-Dec-19 1397 SD PARTY RENTALS 7258 Rental Equipment for FY20 Xmas 205020 49360 $3,342.66 408488 06-Dec-19 2078 SIEMENS MOBILITY, INC 5620013487 Maintenance and Repairs 430050 43270 $966.48 5610178914 Monthly Streetlight Maintenance 430050 43270 $3,440.28 5620027250 Maintenance and Repairs 430050 43270 $4,217.30 7 of 10Page: Register of Demands: Warrants from 12/2/2019 - 12/6/2019 16 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 408488 06-Dec-19 2078 SIEMENS MOBILITY, INC 5610186236 Signal maintenance 430050 43260 $3,957.98 5620027260 Maintenance and repairs 430050 43260 $5,450.00 5620027245 Parking Lot call outs, October 2019 415010 41200 $1,559.60 5620027310 Pomerado at Ted Williams and Espola at High Valley 411040 43202 $5,545.56 5620027310 Pomerado at Ted Williams and Espola at High Valley 80004200 P0000 $5,545.56 Total for Check 408488:$30,682.76 408489 06-Dec-19 776 SOUTH COAST EMERGENCY VEHICLE SERVICE 496804 Unit 924: Red Fleet Switch Assembly 413010 47900 $614.52 496737 Command Zone Repair 413010 43120 $10,224.09 Total for Check 408489:$10,838.61 408490 06-Dec-19 771 SPECIALTY ELECTRIC SUPPLY CO.7148-562596 Skate Park: LED Flood lights 415010 47600 $227.62 7148-562540 Water Treatment Plant: bulbs 415010 47600 $128.22 Total for Check 408490:$355.84 408491 06-Dec-19 528 STATEWIDE SAFETY & SIGNS, INC 01005600 Signs 411040 45300 $88.00 01005599 Custom Sign: Lori Lynn Lane 411040 45300 $68.95 Total for Check 408491:$156.95 408492 06-Dec-19 1749 STATEWIDE STRIPES, INC 2200067-PP6 Citywide Striping Contract 411040 43300 $27,426.03 2200067-PP5 Citywide Striping Contract 411040 43300 $54,852.52 Total for Check 408492:$82,278.55 408493 06-Dec-19 1420 STERICYCLE ENVIRONMENTAL SOLUTIONS 72402647577 Household Hazardous Waste 80002504 P2500 $21,029.00 408423 06-Dec-19 999998 STINSON, CAMERON 12/19 - Stinson Tuition Reimbursement: Company Officer 2B 121010 14040 $128.00 408494 06-Dec-19 665 STOTZ EQUIPMENT P55758 Unit 502: Spindle, Repellent 413010 47900 $254.28 408495 06-Dec-19 1517 SWAGIT PRODUCTIONS, LLC 14161 Video Streaming Services: Nov 2019 114010 41200 $725.00 408496 06-Dec-19 351 SWRCB SW-0179724 Annual Permit Fee: Index No. 391805 308040 57300 $14,230.00 408497 06-Dec-19 2086 TANKO STREETLIGHTING, INC 2200100-PP2 LED Street and Safety Lighting 80002795 P2790 $26,843.44 408498 06-Dec-19 248 TIFCO INDUSTRIES 71506189 Washers, Nuts, Fuses 413010 47600 $227.66 408499 06-Dec-19 977 TOSHIBA BUSINESS SOLUTIONS 5101781 Copier 10/24/19-11/23/19 114010 43080 $1,125.03 408427 06-Dec-19 999997 TUK INC 15602130-02 Closing Bal Refund: Overpay #15602130-02 F5100 81020 $237.85 Total for Check 408427:$391.99 999997 TUK INC 15102120-02 Closing Bal Refund: Overpay #15102120-02 F5100 81020 $154.14 Total for Check 408427:$391.99 408500 06-Dec-19 1045 TUPAS, FRANCIS FY20 Xmas Photos FY20 Xmas Photographer 205020 41200 $1,125.00 408501 06-Dec-19 1894 TYLER BUSINESS FORMS Invoice-39390 Envelopes & Forms 111010 47100 $295.76 8 of 10Page: Register of Demands: Warrants from 12/2/2019 - 12/6/2019 17 of 19January 7, 2020, Item #1.2 Check Number Check Date Payee/ Vendor #Payee/Vendor Name Invoice Number Description Org Object Project Check Amount 905368 02-Dec-19 34 U.S. BANK 1498735 TARB15 Debt Service Payment F7200 80220 $6,817,537.21 905377 06-Dec-19 785 U.S. BANK N.A.PARS ARS PE2019-25 PARS ARS PE2019-25 F1000 87200 $1,503.49 905378 06-Dec-19 785 U.S. BANK N.A.PARS REP PE2019-25 PARS REP PE2019-25 F1000 87210 $10,667.62 905379 06-Dec-19 785 U.S. BANK N.A.PARS REPEX PE2019- 25 PARS REP EXCESS PE2019-25 F1000 87210 $25,075.00 408502 06-Dec-19 1580 UNIFIRST CORPORATION 361 0090725 Fire Station 2 mats/towels 501050 49280 $21.89 361 0090726 Fire Station 3 mats/towels 501050 49280 $43.51 361 0090724 Fire Station 1 mats/towels 501050 49280 $29.88 361 0091542 Meadowbrook Gym: mats and mops 415010 41200 $26.31 361 0091541 City Hall: mats 415010 41200 $8.41 361 0091705 Facilities: uniforms 415010 49280 $14.77 361 0091709 North Parks: uniforms 414040 49280 $26.60 361 0091711 Twin Peaks Gym: mats and mops 415010 41200 $11.37 361 0091701 Streets: uniforms 411040 49280 $36.48 361 0091702 Mats & Uniforms: warehouse 415010 41200 $1.22 361 0091702 Mats & Uniforms: warehouse 410060 49280 $4.14 361 0091699 Mats & Uniforms: fleet 415010 41200 $8.81 361 0091699 Mats & Uniforms: fleet 413010 49280 $46.02 361 0091700 Stormwater: uniforms 412040 49280 $21.78 361 0091710 Public Works: mats 415010 41200 $6.45 361 0091713 Lake Poway Dock: mats 415010 41200 $9.89 361 0091703 Uniforms Weekly Rental Fee 405060 49280 $5.44 361 0091708 Uniforms and Wipers Weekly Rental Fee 401060 49280 $40.79 361 0091704 Uniforms Weekly Rental Fee 403570 49280 $31.60 361 0091706 Uniforms Weekly Rental Fee 402560 49280 $32.45 361 0091543 Fire Station 1 mats/towels 501050 49280 $29.88 361 0091545 Fire Station 3 mats/towels 501050 49280 $43.51 361 0091544 Fire Station 2 mats/towels 501050 49280 $21.89 361 0091712 Weekly Mat Cleaning Service PCPA 204020 49280 $9.63 361 0091546 South Parks: mats and uniforms 415010 41200 $32.78 361 0091546 South Parks: mats and uniforms 414040 49280 $21.64 361 0090727 South Parks: mats and uniforms 415010 41200 $32.78 361 0090727 South Parks: mats and uniforms 414040 49280 $34.08 361 0091539 Customer Services: uniforms 112010 49280 $9.25 9 of 10Page: Register of Demands: Warrants from 12/2/2019 - 12/6/2019 18 of 19January 7, 2020, Item #1.2 ...ll,, (D 0 � ...ll,, (D Register of Demands: Warrants from 12/2/2019 - 12/6/2019 Check Check Payee/ Number Date Vendor# PayeeNendor Name 408502 06-Dec-19 1580 UNIFIRST CORPORATION 905369 04-Dec-19 334 UNION BANK-SAN DIEGO 905371 05-Dec-19 334 UNION BANK-SAN DIEGO 408503 06-Dec-19 655 UNITED SITE SERVICES 408504 06-Dec-19 659 VALLEY POWER SYSTEMS, INC. 408506 06-Dec-19 321 VERIZON WIRELESS 408507 06-Dec-19 474 VIP JANITORIAL SERVICE 408508 06-Dec-19 280 WESTERN MOWER AND ENGINE 408509 06-Dec-19 1629 WILLIS INSURANCE SERVICES OF CA 408510 06-Dec-19 1520 WITTMAN ENTERPRISES, LLC Director of Finance Approved: � Date: I 2/2 2-/( r I l Invoice Number 361 0092373 Disc Bene Nov 2019 Disc Bene Nov 2019 Disc Bene Nov 2019 PPE 12/01/19 PPE 12/01/19 PPE 12/01/19 114-9486487 C91982 9842568356 5761 5760 5760 72898 73077 72959 2370615 19110574 Page: 10 of 10 Description Org Object Project Check Amount Customer Services: uniforms 112010 49280 $9.25 Total for Check 408502: $672.50 Flexible Spending Register Nov 2019 F1000 80050 $9,030.29 Flexible Spending Register Nov 2019 F1000 80050 ($9,030.29) Flexible Spending Register Nov 2019 F1000 86190 $9,030.29 Total for Check 905369: $9,030.29 Transfer net payroll to Union Bank TREA 80030 $575,499.82 PPE 12/01/19 Transfer net payroll to Union Bank F1000 80030 ($575,499.82) PPE 12/01/19 Transfer net payroll to Union Bank F1000 80030 $575,499.82 PPE 12/01/19 Total for Check 905371: $575,499.82 Portable Toilets 11/13/19-12/10/19 202020 41200 $572.64 Valve Assembly 413010 47900 $292.39 Field / Mobile Broadband Data: Nov 2019 113010 22000 $76.02 Sanitary Supplies 415010 47200 $270.74 Janitorial Services 206020 41400 $1,597.85 Janitorial Services 415010 41400 $12,982.55 Total for Check 408507: $14,851.14 SE418: Filter, Knob, Lid, Throttle 413010 47900 $20.03 Fuel 412040 47600 $52.93 Mixed fuel 412040 47600 $13.66 Total for Check 408508: $86.62 Consulting Fees: January -March 2020 F1000 87399 $38,250.00 Ambulance Billing: Nov 2019 112010 41200 $4,994.00 Register Total: $9,630,272.99 January 7, 2020, Item #1.2 City of Poway COUNCIL AGENDA REPORT DATE: January 7, 2020 TO: FROM: Honorable Mayor and Members of the City Council Faviola Medina, City Clerk 'J,/\ (858)668-4535 or fmedina@poway.org ---'\" ,-' SUBJECT: Approval of Minutes Summary: The City Council Meeting Minutes submitted hereto for approval are: •December 3, 2019 Regular City Council Meeting Minutes The Poway City Council sits as the Poway Planning Commission, the Poway Housing Authority, the Public Financing Authority, and the Successor Agency to the Poway Redevelopment Agency. Recommended Action: It is recommended that the City Council approve the Minutes as submitted. Public Notification: None. Attachments: A.December 3, 2019 Regular City Council Meeting Minutes Reviewed/Approved By: Wend aserman Assistant City Manager Reviewed By: Alan Fenstermacher City Attorney Approved By: 1 of 10 January 7, 2020, Item #1.3 City of Poway – Minutes – December 3, 2019 2 of 10 January 7, 2020, Item #1.3 CITY OF POWAY CITY COUNCIL REGULAR MEETING MINUTES December 3, 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 John Mullin, Barry Leonard, Caylin Frank, Dave Grosch, Steve Vaus STAFF MEMBERS PRESENT City Manager Chris Hazeltine; 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 Aaron Beanan; Human Resources/Risk Management Director Jodene Dunphy; Public Works Director Eric Heidemann; 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. MOMENT OF SILENCE Mayor Vaus led a moment of silence. PRESENTATION Councilmember Leonard presented a Proclamation to Mental Health System Program Manager Ron Stark and Poway High School’s Friday Night Live Group in recognition of Drugged Driving Prevention Month. City Attorney Alan Fenstermacher explained that there would be an update on the City’s water services provided by Eric Heidemann that was a non-agenized item and per the Brown Act, discussion, questions or action would not be allowed. Mr. Fenstermacher then introduced Director of Public Works Eric Heidemann. Mr. Heidemann described the City’s efforts to identify, isolate and repair the water system. He provided a timeline of events as well as an overview of the NOTE: These draft meeting minutes are not official until approved by the City Council at the next scheduled meeting. ATTACHMENT A City of Poway – Minutes – December 3, 2019 3 of 10 January 7, 2020, Item #1.3 clearwell and surrounding infrastructure and described the investigation staff is conducting and the issue they identified as likely causing the cross contamination. Mr. Heidemann explained staff’s efforts to mitigate the issue, as well as consulting with regional experts. He thanked the residents and the businesses of Poway for their patience and appreciated their support of staff who continues to work around the clock. He stated that the water boil advisory was still in effect and that the City of Poway water continues to meet industry standard. Two certified test results having shown the water was absent of bacteria. He added that the City continues to follow the mandated state protocols for the precautionary water boil advisory and at that time did not have a timeline of when the advisory would be lifted. Council thanked the Public Works Department, the County Emergency Response Team (CERT), the Red Cross, Poway Fire Department and other volunteers. PUBLIC ORAL COMMUNICATIONS Tom Farley spoke regarding his Christmas tree light display. Peter Neild announced that Candy Cane Lane was open and thanked the City for their efforts regarding the water boil advisory. Jim Robinson with Ramona Municipal Water District offered their support to the City. Yuri Bohlen suggested an independent study be conducted on the Clearwell. Janet Lettang discussed Poway Center for the Performing Arts Workshop option 1b. Chris Olps requested more information regarding the water boil advisory. John Carson thanked Eric Heidemann and the Public Works Staff for their efforts during the water boil advisory and suggested that the City provide more updates. Torrey Powers spoke regarding a resolution that was adopted by the Senate and requested its adoption at a meeting. Peter De Hoff commended the City of their response related to the water boil advisory. Terri Sorenson thanked the City for their efforts during the water boil advisory. 1.CONSENT CALENDAR Chris Olps requested that Item 1.8 be pulled for discussion and expressed that he doesn’t think it is the right time to award a raise to the City Manager. Amit Asaravala requested that Item 1.8 be pulled for discussion and expressed that he doesn’t believe the raise is fiscally responsible. Council comments ensued in support of approval of the Amendment to Employment Agreement for the City Manager. Council stated that the increase in salary was not a cost of living increase, but performance based. They explained that the City Manager has exceeded expectations and compared to other City Managers in the County, was below median. Council clarified that the City was now providing fair compensation to the City Manager based on his performance. City of Poway – Minutes – December 3, 2019 4 of 10 January 7, 2020, Item #1.3 Motioned by Mayor Vaus, seconded by Councilmember Mullin to approve Consent Calendar Items 1.1 through 1.8. Motion carried by the following roll-call vote: Ayes: Mullin, Leonard, Frank, Grosch, Vaus Noes: None Absent: None 1.1 Approval of Reading by Title only and Waiver of Reading in full of Ordinances on Agenda 1.2 Ratification of Warrant Registers for the Periods of October 28, 2019 through November 1, 2019; and November 4, 2019 through November 8, 2019 1.3 Approval of the November 5, 2019 Regular City Council Meeting Minutes 1.4 Approval of Local Appointments List of City Council Appointed Committees for 2020 1.5 Second Reading and Adoption of Ordinance No. 832 entitled, “An Ordinance of the City Council of the City of Poway, California, Amending Title 17 Chapter 17.30 of the Poway Municipal Code Pertaining to Lighting of Recreational Courts (Zoning Ordinance Amendment 19-002)” 1.6 Award of Contract to VIP Holdings, Inc., for Janitorial Services; RFP No. 20-006 1.7 Award of Contract to Commercial & Industrial Roofing Co. Inc. for As-Needed Roofing Services; RFP No. 20-009 1.8 Adoption of Resolution No. 19-059 entitled, “A Resolution of the City Council of the City of Poway, California, Approving the Management/Confidential Salary Schedule with the Change in Salary for the City Manager,” and Approval of Amendment to Employment Agreement for the City Manager 2.ORDINANCE 2.1 First Reading of Ordinance Amending Chapter 2.18 (City Council Meetings) City Attorney Alan Fenstermacher presented the report and stated that the Ordinance amends Chapter 2.18 that updates the Poway Municipal Code (PMC). The amendments would conform the text of the PMC, comply with the Brown Act, remove unnecessary procedures and enact enforceable decorum rules. Peter Neild indicated that the Council meetings should be open so residents can express themselves and emotions be transmitted. Yuri Bohlen expressed that the proposed Ordinance impedes freedom of speech. Chris Olps expressed concern related to the enforcement of the Ordinance. Council discussion ensued in support of the adoption of the Ordinance. Council explained that the revisions to the Ordinance are in part to benefit the audience and to conduct the meetings in a pleasant environment. City of Poway – Minutes – December 3, 2019 5 of 10 January 7, 2020, Item #1.3 In response to Council inquiry, City Attorney Alan Fenstermacher stated that section 2.18.180(D)5 of the proposed ordinance allows any member of the Council to make a motion to enforce the rules if the presiding officer was not enforcing the rules as intended. As requested by the Mayor, City Clerk Medina titled the Ordinance. Motioned by Councilmember Frank, seconded by Councilmember Leonard to introduce Ordinance No. 833 entitled “An Ordinance of the City Council of the City of Poway, California, Amending Chapter 2.18 of the Poway Municipal Code Relating to City Council Meetings” and scheduled adoption of the Ordinance for December 17, 2019. Motion carried unanimously by the following roll-call vote: Ayes: Mullin, Leonard, Frank, Grosch, Vaus Noes: None Abstained: None Absent: None Disqualified: None City Attorney Alan Fenstermacher explained that, pursuant to PMC section 2.18.100(D), abstentions are counted as affirmative votes, and the motion passed. 3.PUBLIC HEARING 3.1 First Reading of Ordinance Deleting Chapter 13.20 (Airports) of the Poway Municipal Code and Amending Chapters 2.24 (Municipal Elections), 2.28 (Campaign Contributions and Expenditures), and 17.40 (Comprehensive Sign Regulations) The Mayor opened the public hearing at 8:02 p.m. City Attorney Alan Fenstermacher stated that the proposed Ordinance is mainly aimed at revisions to campaign contribution and expenditure provisions to be consistent with state law, revise regulations regarding temporary political signs and the deletion of Chapter 13.20 which regulates airports. Mr. Fenstermacher explained that the only revision to Chapter 2.24 (Municipal Elections) corrects an incorrect reference to state law. Mr. Fenstermacher stated that changes to Chapter 2.28.030 (Political Contributions Limit, Chapter 2.28.60 and 2.28.070 (Contribution and Expenditure Reporting Requirements) and Chapter 2.28.040 (Independent Expenditure Reporting) will change provisions to the state law thresholds and will now allow the Fair Political Practices Commission (FPPC) to enforce any violations of reporting requirements, except for the $250 contribution limit. Chapter 17.40.090(D) (Temporary Signs) would allow signs to be located in the public right-of-way in single family residential zones, require permission to place signs on private property and signs belonging to serial violators will be held by the City for 15 days. Speakers neutral to staff’s recommendation: Chris Olps and Joel Bocanegra Speakers in Opposition: Jonathan Ryan and Peter Neild Motioned by Deputy Mayor Grosch, seconded by Councilmember Mullin to close the public hearing at 8:16 p.m. Motion carried unanimously. In response to Council inquiry, City Attorney Fenstermacher stated that campaign accounts no longer need to be closed before the next election and office holder accounts are now City of Poway – Minutes – December 3, 2019 6 of 10 January 7, 2020, Item #1.3 permitted. He explained that campaign funds can be transferred to a new account. Mr. Fenstermacher further explained that office holder accounts are used to defer expenses incurred in the office and those funds can come from funds rolled over from the campaign account or contributions into the office holder account. Mr. Fenstermacher stated that there was a clean-up change to be read into the record regarding intent of the temporary sign was to allow signs in the public right of way in residential zones only. The change is to Section 11(D) after the words Notwithstanding the foregoing, “in areas of the City zoned RR-A through RR-C and RS-1 through RS-7,...” As requested by the Mayor, City Clerk Medina titled the Ordinance. Motioned by Mayor Vaus, seconded by Councilmember Frank to introduce Ordinance No. 834 entitled “An Ordinance of the City Council of the City of Poway, California, Rescinding Chapter 13.20 (Airports) And Amending Chapters 2.24 (Municipal Elections), 2.28 (Campaign Contribution And Expenditures) and 17.40 (Comprehensive Sign Regulations) of the Poway Municipal Code” and scheduled adoption of the Ordinance for December 17, 2019. Motion carried by the following roll-call vote: Ayes: Mullin, Leonard, Frank, Grosch, Vaus Noes: None Abstained: None Absent: None Disqualified: None 3.2 First Reading of Ordinance Amending Poway Municipal Code (PMC) Chapters 15.02, 15.04, 15.08, 15.10, 15.12, 15.16, 15.18, 15.19, 15.21, 15.22, 15.23, and 15.24, adopting by reference the 2019 California Building Standards Codes, which includes the 2019 California Administrative Code, the 2019 California Building Code, the 2019 California Residential Code, the 2019 California Electrical Code, the 2019 California Mechanical Code, the 2019 California Plumbing Code, the 2019 California Energy Code, the 2019 California Historical Building Code, the 2019 California Fire Code, the 2019 California Existing Building Code, the 2019 California Green Building Standards Code, and the 2019 Referenced Standards Code with Local Amendments The Mayor opened the public hearing at 8:32 p.m. City Planner David De Vries presented the report. Mr. De Vries stated that the California Building Standards Code is published by the California Building Standards Commission every three years to include fire, building, electrical, residential, plumbing, mechanical, energy, and green building standards which the City then adopts by reference in Title 15 of the Poway Municipal Code. No speakers. Motioned by Councilmember Leonard, seconded by Deputy Mayor Grosch to close the public hearing at 8:36 p.m. Motion carried unanimously. In response to Council inquiry, SafeBuilt Director of Operations Bill Elizarraras explained that the state is now requiring larger, two by six framing in order to be able to install thicker insulation in the walls. City of Poway – Minutes – December 3, 2019 7 of 10 January 7, 2020, Item #1.3 As requested by the Mayor, City Clerk Medina titled the Ordinance. Motioned by Councilmember Mullin, seconded by Deputy Mayor Grosch to introduce Ordinance No. 835 entitled “An Ordinance of the City Council of the City of Poway, California, Amending Poway Municipal Code, Chapters 15.02, 15.04, 15.08, 15.10, 15.12, 15.16, 15.18, 15.19, 15.21, 15.22, 15.23, 15.24, Adopting by Reference the 2019 California Administrative Code, the 2019 California Building Standards Codes, which Includes the 2019 California Building Code, the 2019 California Residential Code, the 2019 California Electrical Code, the 2019 California Mechanical Code, the 2019 California Plumbing Code, the 2019 California Energy Code, the 2019 California Historical Building Code, the 2019 California Fire Code, the 2019 California Existing Building Code, the 2019 California Green Building Standards Code, and 2019 Referenced Standards Code with Local Amendments” and scheduled adoption of the Ordinance for December 17, 2019. Motion carried by the following roll-call vote: Ayes: Frank, Grosch Noes: Vaus Abstained: Mullin, Leonard Absent: None Disqualified: None City Attorney Alan Fenstermacher explained that, pursuant to PMC section 2.18.100(D), abstentions are counted as affirmative votes, and the motion passed. 3.3 General Plan Amendment 19-002 and Zone Change 19-002; A Request to Change the General Plan Land Use Designation and Zoning Designation of Parcels, or Portions Thereof, to the Open Space Resource Management Zoning Designation The Mayor opened the public hearing at 8:49 p.m. Senior Planner Austin Silva presented the report. Mr. Silva stated that the City Council adopted the Poway Subarea Habitat Conservation Plan (HCP) in order to preserve and protect biologically sensitive, threatened, and endangered plant and animal species and their habitat. He explained that when a property owner develops within the HCP, they are required to mitigate for any loss of habitat and most property owners reserve an undeveloped portion of their parcel through a Biological Conservation Easement (BCE) which are then redesignated to Open Space-Resource Management (OS-RM). Submitted a speaker slip in Opposition but did not speak: Fred Huang Speakers neutral to staff’s recommendation: Charles Cohen Motioned by Councilmember Leonard, seconded by Councilmember Mullin to close the public hearing at 8:53 p.m. Motion carried unanimously. In response to Council inquiry, Director of Development Services Bob Manis explained that one of the parcels listed, APN 277-201-11 was removed from the Resolution and Ordinance in order to look into it further. As requested by the Mayor, City Clerk Medina titled the Ordinance. City of Poway – Minutes – December 3, 2019 8 of 10 January 7, 2020, Item #1.3 Motioned by Deputy Mayor Grosch, seconded by Councilmember Leonard to introduce Ordinance No. 836 entitled “An Ordinance of the City Council of the City of Poway, California, Changing the Zoning Classification of Certain Properties (ZC19- 002)” and scheduled adoption of the Ordinance for December 17, 2019. Motion carried by the following roll-call vote: Ayes: Mullin, Leonard, Frank, Grosch, Vaus Noes: None Abstained: None Absent: None Disqualified: None 3.4 Adoption of Ordinance Amending Title 17 of the Poway Municipal Code (PMC) Amending Accessory Dwelling Unit Regulations; Zoning Ordinance Amendment (ZOA) 19-003 The Mayor opened the public hearing at 8:59 p.m. City Planner David De Vries presented the report. Mr. De Vries reported that the ordinance amends the Poway Municipal Code to incorporate new State-required regulations for accessory dwelling units (ADUs) which would be in effect January 2, 2020. Speakers neutral to staff’s recommendation: Amit Asaravala In response to Council’s request for clarification, Mr. De Vries explained that Californians for Home Owners Association disputed the proposal to require a one-year lease for ADUs, therefore the ordinance has been amended to require a 30-day lease with additional changes to PMC sections 17.08.180(A)(2), 17.08.180(A)(5), 17.08.180(A)(8), 17.08.180(A)(10), 17.08.180(A)(12), 17.08.180(B)(1), 17.08.180(D) and 17.08.180(E)(2)(f) as reflected in the revised ordinance language. Motioned by Councilmember Leonard, seconded by Councilmember Mullin to close the public hearing at 9:08 p.m. Motion carried unanimously. In response to Council inquiry, Mr. De Vries stated that a detached ADU and an attached junior additional dwelling unit (JADU) is permissible on one single-family residential lot provided the height of the ADU does not exceed 16 feet and the floor area does not exceed 800 square feet and either the JADU or the primary dwelling is owner-occupied and the building envelope for the primary dwelling can’t exceed 150 square feet to accommodate the JADU. Mr. De Vries explained that if there is an existing, unpermitted ADU in a single- family residence that is determined not to be a life safety concern, the City must inform the resident of a five-year delay in code compliance that would allow them the use of the unpermitted ADU for five years. Mr. De Vries explained that the State prohibits the City from requiring a height restriction of less than 16 feet, but it can be higher, therefore the City will be allowing the ADU to exceed 16 feet if the residence has a second story. Director of Development Services Bob Manis provided further clarification and explained that a second story is not possible with the height requirement of 16 feet. In response to Council inquiry, City Attorney Alan Fenstermacher stated that the City can no longer require detached ADUs to be owner occupied and can be rented out. If there is a City of Poway – Minutes – December 3, 2019 9 of 10 January 7, 2020, Item #1.3 JADU, the City can require it to be owner occupied restricted, to require owner occupancy of one of the dwelling units. As requested by the Mayor, City Clerk Medina titled the Ordinance. Motioned by Councilmember Mullin, seconded by Councilmember Frank to introduce Ordinance No. 837 entitled “An Ordinance of the City of Poway, California, Amending Title 17 of the Poway Municipal Code Amending Regulations for Accessory Buildings, Including Accessory Dwelling Units (Zoning Ordinance Amendment 19-003)” and scheduled adoption of the Ordinance for December 17, 2019. Motion carried by the following roll-call vote: Ayes: Mullin, Frank Noes: Leonard, Grosch Abstained: Vaus Absent: None Disqualified: None City Attorney Alan Fenstermacher explained that, pursuant to PMC section 2.18.100(D), abstentions are counted as affirmative votes, and the motion passed. 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. COUNCILMEMBER COMMITTEE REPORTS - Pursuant to AB1234 – G.C. §53232.3(d) STEVE VAUS 6.1 Selection of Deputy Mayor 2020 Mayor Vaus appointed Councilmember Caylin Frank to serve as Deputy Mayor for 2020. 6.2 Request for Council Concurrence of Appointments to Council Regional Agencies’ Boards, Commissions and Committees 1.San Diego Division League of California Cities 2. Metropolitan Transit District (MTS) 3.San Diego Association of Governments Board (SANDAG) 4.Metro Wastewater Commission/JPA 5.San Dieguito RiverPark JPA 6.City of Poway/PUSD Joint Use Subcommittee for Interjurisdictional Cooperation City of Poway – Minutes – December 3, 2019 10 of 10 January 7, 2020, Item #1.3 7.Regional Solid Waste Association (RSWA) 8.Goodan Ranch Policy Committee Council concurred to make the following appointments to the various regional agencies’ Boards, Commissions, and Committees: 1.San Diego Division, League of California Cities a.Primary – Caylin Frank b. 1st Alternate – Dave Grosch 2.Metropolitan Transit System (MTS) a.Primary – Caylin Frank b.1st Alternate – John Mullin 3.San Diego Association of Governments Board (SANDAG) a.Primary – Steve Vaus b.1st Alternate – John Mullin c.2nd Alternate – Caylin Frank 4.Metro Wastewater Commission/JPA a.Primary – John Mullin b.1st Alternate – Director of Public Works 5.San Dieguito RiverPark JPA a.Primary – Dave Grosch b.1st Alternate – Barry Leonard 6.City of Poway/PUSD Joint Use Subcommittee for Interjurisdictional Cooperation a.Primary – Barry Leonard b.1st Alternate – Caylin Frank 7.Regional Solid Waste Association (RSWA) a.Primary – Dave Grosch b.1st Alternate – John Mullin 8.Goodan Ranch Policy Committee a.Primary – Barry Leonard b.1st Alternate – Community Services Manager 7.CITY MANAGER ITEMS City Manager Chris Hazeltine thanked Council for their feedback regarding his performance evaluation and voiced his enthusiasm for being part of the Poway team. 8.CITY ATTORNEY ITEMS None. ADJOURNMENT The meeting adjourned at 9:08 p.m. ________________________________ Faviola Medina, CMC City Clerk City of Poway, California DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT January 7, 2020 Honorable Mayor and Members of the City CouncJ�JtRobert Manis, Director of Development Services rv · Austin Silva, Senior Planner 6858-668-4658/asilva@poway.org Specific Plan Amendment 19-001 and Development Review 19-003; a request to amend the South Poway Specific Plan and construct a self-storage building This action is a Specific Plan Amendment (SPA) request to amend the South Poway Specific Plan (SPSP) to allow self-storage buildings to contain a maximum of three-stories within the existing maximum height limits and a Development Review (DR) request to construct and operate a 99,895 square-foot self-storage building with three stories meeting the maximum allowable height and two levels of underground basements on a 1.6-acre lot located at 12183 Kirkham Road in the Light Industrial (LI) land use district of the SPSP. Recommended Action: It is recommended that the City Council take public input, close the public hearing, adopt the resolution and introduce the Ordinance for first reading by title only, waive further reading, and schedule the adoption for January 21, 2020. Discussion: This project is initiated by Brian Caster (Applicant) and is a request for a SPA and DR. The SPA is a request to amend the SPSP to allow self-storage buildings to contain a maximum of three stories where a maximum of two stories is currently allowed. The three-story allowance would still require compliance with the existing maximum height limits. The DR is a request to construct and operate a 99,895 square-foot self-storage facility with three stories meeting the maximum allowable height and two levels of underground basements on a 1.6-acre lot located at 12183 Kirkham Road (Attachment C) in the (LI) land use district of the SPSP (Attachment D). Approximately 638 storage units are proposed as a part of the project. The 1.6-acre project site is undeveloped and surrounded by an industrial building to the north containing a light manufacturing business, an industrial building to the south containing multiple businesses, Kohl's department store upslope to the east and a Sysco distribution facility to the west. The site will be graded and excavated to accommodate the two levels of basements in the proposed building. The rear portion of the building will be built into an existing slope on the east with the building wall serving as a retaining wall. The SPSP was originally approved in 1985 and has been amended periodically in response to evolving real estate trends and business needs. With the anticipated increase in multi-family 1 of 21 January 7, 2020, Item #3.1 housing units regionally, self-storage facilities are in high demand. Historically, SPSP amendments have been related to both development standards and land use designation changes. Over the past ten years the City Council has approved one property owner request for changes in development standards. In 2001, the City Council also approved a request to allow three stories within the existing height limit for hotels and motels. Pursuant to Section 17.47.020 of the Poway Municipal Code (PMC), it is required that proposed Specific Plan Amendments be considered by the City Council at a public hearing. The proposed SPA would allow for self-storage buildings to contain a maximum of three stories within the existing allowable height. The existing height limit is 35 feet maximum within two stories, except that industrial buildings up to 45 feet in height within two stories may be allowed when it can be demonstrated that the additional height is necessary for the particular use anticipated for reasons such as automated warehousing, inventory retrieval or bridge cranes. Since this is not an industrial building, the 45-foot height limit is not applicable. Related to the DR, a public storage use is a permitted use within the (LI) land use district. The storage building requires a total of 45 parking spaces and the project proposes 46 parking spaces (Attachment E). The proposed project is consistent with all development standards including setbacks, lot coverage and driveway width. The project will also be required to adhere to the City's Landscape and Irrigation Design Manual including new trees and landscape along the property's street frontage in the public right-of-way. Approval of a final landscape plan is required prior to issuance of building permits. The project will be also constructing a driveway meeting accessibility standards. The building is consistent with the architectural standards of the SPSP (Attachment F). The building utilizes a beige split-face masonry block as the base material with a gray vertical siding made of metal on most of the upper portion of the building. Gray horizontal-metal panels and glass are used to create an architectural feature around the entrance to the office on the first above-ground floor. Windows with architectural vents underneath that are surrounded with burgundy metal panels are used to create visual interest on elevations that are seen from Kirkham Road. The proposed building is compatible with the architecture and colors of the concrete tilt up buildings in the surrounding area which utilize white and earth tone colors and similar materials. Environmental Review: An Environmental Impact Report (EIR) was prepared pursuant to the California Environmental Quality Act (CEQA) in conjunction with the adoption of the SPSP, and was certified on July 30, 1985, and the Final Subsequent EIR was certified on July 26, 1988. The SPSP EIR analyzed the potential impacts of the proposed build-out of the SPSP area in the manner permitted by the Specific Plan. The proposed SPA is consistent with the SPSP and conforms with the requirements, development standards and guidelines therein, and, therefore, as set forth in Chapter 10, Section VIII of the SPSP, no further environmental analysis is required because the project's impacts have already been adequately analyzed and are fully covered by the previously certified EIR. The increase in the allowed number of stories from two to three within the existing maximum height requirements for self-storage buildings does not impact the aesthetics because the allowed building heights will remain the same. Additionally, there are no significant changes proposed that would require subsequent or supplemental environmental review pursuant to Public Resources Code section 21166 and CEQA Guidelines sections 15162 and 15163. Fiscal Impact: None. 2 of 21 January 7, 2020, Item #3.1 Public Notification: A Notice of Public Hearing was published in the Poway News Chieftain on Thursday, December 26, 2019. A public notice was mailed to property owners and occupants located inside of the SPSP boundary and within 500 feet of the project SPSP boundary. Attachments: A.Resolution B.Ordinance C.Zoning and Location Map D.South Poway Specific Plan Map E.Site Plan F.Building Elevations Reviewed/Approved By: ·11 (L-_ Wen�aserman Assistant City Manager 3 of 21 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch � City Manager January 7, 2020, Item #3.1 4 of 21 ATTACHMENT A January 7, 2020, Item #3.1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING DEVELOPMENT REVIEW 19-003 FOR THE CONSTRUCTION OF A 99,895 SQUARE-FOOT SELF-STORAGE BUILDING CONTAINING THREE STORIES AND TWO LEVELS OF UNDERGROUND BASEMENTS ON PROPERTY LOCATED AT 12183 KIRKHAM ROAD WITH A LAND USE DESIGNATION OF LIGHT INDUSTRIAL IN THE SOUTH POWAY SPECIFIC PLAN AREA. ASSESSOR PARCEL NUMBER: 317-270-23 WHEREAS, the City Council considered Development Review (DR) 19-003; a proposed self-storage building containing three stories and two levels of underground basements with related public improvements (Project) on property located at 12183 Kirkham Road with a land use designation of Light Industrial (LI) in the South Poway Specific Plan (SPSP) area; WHEREAS, on January 7, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to DR19-003 and associated Specific Plan Amendment (SPA) 19-001; and WHEREAS, the City Council has read and considered the agenda report for the proposed Project, including the attachments, and has considered all other evidence presented at the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: An Environmental Impact Report (EIR) was prepared pursuant to the California Environmental Quality Act (CEQA) in conjunction with the SPSP, and was certified on July 30, 1985, and the Final Subsequent EIR was certified on July 26, 1988. The SPSP EIR analyzed the potential impacts of the proposed build out of the SPSP area in the manner permitted by the Specific Plan. The proposed DR is consistent with the SPSP and conforms with the requirements, development standards and guidelines therein, and, therefore, as set forth in Chapter 10, Section VIII of the SPSP, no further environmental analysis is required because the Project’s impacts have already been analyzed, and are fully covered by the previously certified EIR. There are no significant changes proposed that would require subsequent or supplemental environmental review pursuant to Public Resources Code section 21166 and CEQA Guidelines sections 15162 and 15163. SECTION 2: The City Council finds the proposed Project is consistent with the SPSP generally, including the (LI) land use designation. SECTION 3: The findings for DR19-003, in accordance with the PMC 17.52.010 Purpose of Development Review, are made as follows: A. The Project is consistent with the SPSP and the Poway General Plan in that the proposed Project has been designed to comply with all City site development standards. B. The approved Project will not have an adverse aesthetic, health, safety, or architecturally- related impact upon adjoining properties, in that the design of the building for the intended purpose conforms to the criteria of the SPSP Development Standards, and will be Resolution No. Page 5 5 of 21 January 7, 2020, Item #3.1 compatible with current and future buildings in the vicinity. C. The approved Project encourages the orderly and harmonious appearance of structures and property within the City in that the Project, as conditioned, is consistent with the general design standards in the SPSP. SECTION 4: The findings, in accordance with Government Code Section 66020 for the public improvements needed as a result of the proposed development to protect the public health, safety and welfare, are made as follows: A. The design and improvements of the proposed development are consistent with all elements of the Poway General Plan, as well as City Ordinances, because all necessary facilities will be available to serve this Project. B. The construction of public improvements is needed as a result of the proposed development to protect the public health, safety and welfare as further described in the conditions of approval. C. In accordance with the Poway General Plan, the Project requires the payment of development impact fees, which are assessed on a pro-rata basis to finance public infrastructure improvements, which promote a safe and healthy environment for the residents of the City. SECTION 5: The City Council hereby approves DR19-003, in association with SPA19- 001, as shown on the approved plans incorporated by reference herein as “Exhibit A”, except as noted and 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 reasonable attorney's fees, collectively the “Claims” against the City or its agents, officers, or employees, relating to the issuance of any aspect of the Project approval set for in this resolution, including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval (including but not limited to DR19-003) and any environmental document or decision made pursuant to CEQA. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, applicant shall pay all of the costs related thereto, including without limitation reasonable attorney's fees and costs. In the event of a disagreement between the City and applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation-related decisions, including, but not limited to, settlement or other disposition of the matter. However, the applicant shall not be required to pay or perform any settlement unless such settlement is approved by applicant. Notwithstanding the foregoing, no indemnity shall be required for claims resulting from the exclusive gross negligence or willful misconduct of the City. B. This approval is based on the existing site conditions and proposed Project details represented on the approved plans (“Exhibit A”). If actual conditions and details vary from representations, the approved plans must be changed to reflect the existing site conditions and proposed Project details. Any substantial changes to the approved plans must be approved by the Director of Development Services and may require approval of the City Resolution No. Page 6 6 of 21 January 7, 2020, Item #3.1 Council if the Director of Development Services finds that the proposed changes do not substantially conform to approved plans. C. The developer is required to comply with the Poway Noise Ordinance (Chapter 8.08 PMC) requirements that govern construction activity and noise levels. D. Prior to issuance of any permit, the applicant shall (1) submit in writing that all conditions of approval have been read and understood; and (2) the property owner shall execute a Covenant Regarding Real Property notarizing and recording said document. In order for the City to prepare the Covenant the applicant must first submit a legal description of the subject site. E. The conditions for the Project shall remain in effect for the life of the subject property, and shall run with the land and be binding upon future owners, successors, heirs, and transferees of the current property owner. F. The approval of DR19-003 does not become effective until the ordinance approving SPA19-001 is effective. G. Prior to issuance of a Building Permit, the applicant shall obtain approval of a Grading Permit. Compliance with the following conditions is required prior to issuance of the Grading Permit: (Engineering) 1. 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 Poway Municipal Code (PMC) shall be submitted. 2. Applicant shall incorporate Low Impact Development (LID) design features into the site development. These shall be clearly shown and identified on the grading plan and be appropriately sized for the proposed level of development. 3. The grading plans shall reflect a minimum two percent grade away from the building in the all areas including the loading dock. 4. A drainage study addressing the impacts of the 100-year storm event prepared by a licensed Civil Engineer is to be submitted and approved. The study shall evaluate existing and proposed hydrologic and hydraulic conditions to the satisfaction of the City Project Engineer. 5. Water Quality Control – Design and Construction The Project shall comply with the City and Regional Water Quality Control Board stormwater requirements. The Project is considered a Priority Development Project and will be subject to all City and State requirements. A Final Storm Water Quality Resolution No. Page 7 7 of 21 January 7, 2020, Item #3.1 Management Plan (SWQMP) prepared by a registered Civil Engineer is to be submitted and approved. a. Provide two copies of an Operation & Maintenance (O&M) plan in accordance with Chapter 16.104 of the PMC, and a signed PDF version. b. Property owner shall execute an approved Storm Water Management Facilities Maintenance Agreement accepting responsibility for all structural BMP maintenance, repair and replacement as outlined in the Operations and Maintenance plan. The operation and maintenance requirements shall be binding on the land throughout the life of the Project as outlined in Chapter 16.104 of the PMC. c. Construction Storm Water Management Compliance: The Project proposes to disturb an area greater than one acre. Proof of coverage under the General Permit for Discharges of Storm Water Associated with Construction Activity (Construction General Permit, 2009-0009-DWQ, as amended by order 2010-0014) shall be provided to the City along with a copy of the Storm Water Pollution Prevention Plan (SWPPP). 6. Grading securities shall be posted with the City prior to grading plan approval per section 16.46.080 of the PMC. A minimum cash security of $2,000 is required in all instances. 7. Erosion control shall be installed and maintained by the developer from October 1 to April 30 annually. The developer shall maintain all erosion control devices throughout their intended life. 8. The applicant shall pay the storm water pollution inspection fee according to the latest adopted master fee schedule. 9. All applicable easement dedications are to be recorded. 10. Any existing and proposed public easements shall be depicted on the grading plans. The proposed public easement dedications shall be submitted prior to grading permit issuance. 11. Any private improvements within any publicly held easement or right-of-way may require an encroachment agreement as determined necessary by the City Engineer. All necessary encroachment agreements shall be approved and executed prior to grading permit issuance. 12. All existing and proposed utilities are required to be installed underground. 13. 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. The applicant’s action plan that identifies measures to be implemented during construction to address erosion, sediment and pollution control will be discussed. Compliance for sediment control shall be provided as directed by the Project Inspector. Resolution No. Page 8 8 of 21 January 7, 2020, Item #3.1 14. 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. 15. Construction staking is to be inspected by the Engineering Inspector prior to any clearing, grubbing or grading. At 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. (Planning) 16. A Tree Removal Permit shall be obtained prior to the removal of all existing trees. A separate permit is required for trees within the public right-of-way and trees located on private property. The removal of both public and private trees shall conform to Chapter 12.32 (Urban Forestry) Articles II and III of the PMC. If the trees are proposed to be removed during the recognized nesting season for birds (February 15 through August 15), a nesting bird survey shall be conducted by a qualified biologist and report the findings in writing to the City. Between February 15 and August 15, removal of trees containing nests shall be delayed until such time as the nest(s) have been abandoned unless the removal can be completed in accordance with California State codes and the Federal Migratory Bird Treaty Act of 1918. 17. Landscape and irrigation on-site and within the right-of-way fronting the property shall be provided in accordance with the SPSP and the Poway Landscape and Irrigation Design Manual. Plans shall be submitted and a minimum of one staff review shall be completed prior to issuance of a grading permit. The landscape and irrigation plans shall demonstrate compliance with the City of Poway Landscape and Irrigation Design Manual, Chapter 17.41 PMC, and all other applicable standards in effect at the time of landscape and irrigation plan check submittal. The landscape and irrigation plan submittal is a separate submittal from other Project plan check submittals, and is made directly to the Planning Division. Contact the Planning Division for copies of applicable City standards, the landscape and irrigation plan submittal checklist and the plan review fee worksheet. Landscape and irrigation plan review fees are required and are the responsibility of the applicant. Any landscaped areas within the adjacent public right-of-way shall be permanently and fully maintained by the owner. All existing irrigation and landscaping within any designated Landscape Maintenance District (LMD) and Land Development Association (LDA) areas shall be protected to the greatest extent possible. Any LMD and LDA areas to be disturbed shall be shown on the landscape plans. These disturbed areas shall be restored per the previously approved landscape plans or proposed revisions shall be part of this landscape plan review. 18. Use of recycled water will be required for on-site landscape and irrigation. Each site shall have a designated user supervisor who has attended the San Diego County Water Authority’s user supervisor class. The County of San Diego Department of Resolution No. Page 9 9 of 21 January 7, 2020, Item #3.1 Environmental Health will assess fees for the following activities: a. Site Plan Check $400 avg. costs* b. Shut Down Test ** $320 avg. costs* c. Title 22 Inspection $ 80 avg. costs* * Based on full cost recovery, actual fee amount may vary. ** Shut down test is required at initial installation and at least every four (4) years intervals on sites with both recycled and potable water. (Public Works) 19. Applicant shall provide detailed plans associated with deep shoring process to include mitigation of ground water into storm drain system and horizonal boring to pin shoring planks. H. Prior to building permit issuance, unless other timing is indicated, the following conditions shall be complied with: (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 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. 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 civil 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. 3. The applicant shall attend a pre-construction meeting at the Department of Development Services. The scheduling request shall be submitted on a City standard form available from the City’s Project Engineer. The applicant’s action plan that identifies measures to be implemented during construction to address erosion, sediment and pollution control will be discussed. Compliance for sediment control shall be provided as directed by the Project Inspector. 4. The applicant shall pay all applicable development impact fees in effect at time of permit issuance. Resolution No. Page 10 10 of 21 January 7, 2020, Item #3.1 (Planning) 5. Trash receptacles shall be enclosed by a six-foot-high masonry wall, with view- obstructing gates, and shall provide an area for recyclable materials. Enhanced exterior treatments to the trash enclosure shall be provided, and shall be architecturally compatible with the buildings. Locations and exterior treatments shall be subject to approval by the Planning Division. 6. All roof appurtenances, including air conditioners, shall be architecturally integrated, screened from view, and sound-buffered from adjacent properties and streets as required by the Planning Division. 7. The applicant shall comply with the latest adopted construction related codes, and all other applicable codes and ordinances in effect at the time of Building Permit issuance. 8. The colors and materials on the building shall be consistent with the approved colors on file in the Planning Division. 9. All two-way traffic aisles shall be a minimum of 25-feet wide. 10. All parking spaces shall be double striped. The minimum dimensions for standard- sized parking stalls shall be eight-foot six-inches x 18-foot six-inches per the SPSP. The parking lot design shall comply with the Americans with Disabilities Act for accessible spaces, with one van-accessible space. 11. Parking lot lights, wall mounted lights and landscape accent lights shall be required and shielded per the SPSP and PMC standards. Wall-mounted security lights shall only be used on the rear or interior sides of buildings. 12. All parking stalls shall observe a minimum 25-foot setback from the right-of-way. 13. Signs shall be proposed and approved under separate permits. 14. The landscape and irrigation plans on-site and within the right-of-way fronting the property shall be approved in conformance with the City’s Landscape and Irrigation Design Manual. I. Compliance with the following conditions is required prior to occupancy and release of securities: (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 stormwater facilities shall be complete and operational prior to occupancy. 3. The drainage facilities, driveway, slope planting measures, and all utility services shall be installed and completed by the property owner and inspected and approved by the Engineering Inspector. All new utility services shall be placed underground. Resolution No. Page 11 11 of 21 January 7, 2020, Item #3.1 4. An adequate drainage system shall be provided around the new building pad capable of handling and disposing all surface water to the satisfaction of the Engineering Inspector. 5. The applicant shall repair, to the satisfaction of the City Engineer, any and all damage to public improvements caused by construction activity from this Project. 6. After completion of all work, record drawings, signed by the engineer of work, shall be submitted to Development Services for review prior to a request of occupancy, per PMC Section 16.52.130(B) of the Grading Ordinance. Approval of record drawings is required prior to issuance of occupancy and release of grading securities. Initial submittal of record drawings at least three weeks prior to a request for occupancy is recommended. (Planning) 7. Approval of this request shall not waive compliance with all sections of the Zoning Ordinance and all other applicable City Ordinances in effect at the time of Building Permit issuance. 8. Landscaping and irrigation on-site and within the right-of-way fronting the property shall be installed per the approved landscape plans. 9. Prior to any use of the Project site, or business activity being commenced thereof, all conditions of approval contained herein shall be completed to the satisfaction of the Director of Development Services. (Public Works) 10. The existing recycled irrigation at the rear slope must be properly altered, repaired or abandoned with approval of association responsible for irrigation system. A cross- connection test must be performed and passed prior to occupancy. Applicant will incur all costs associated with cross-connection testing. New irrigation system shall be highlined with potable water until cross-connection tests are complete and the site is approved to operate recycled water for irrigation. J. Upon occupancy the following conditions shall apply: 1. All landscaped areas on-site and within the right-of -way fronting the property shall be maintained in a healthy and thriving condition, free from weeds, trash and debris. The trees shall be encouraged and allowed to retain a natural form. Pruning should be restricted to maintain the health of the trees and to protect the public safety. Unnatural or excessive pruning, including topping, is not permitted. 2. Any fences, walls or signs proposed for this development shall be designed and approved in conformance with the SPSP and to the satisfaction of the Director of Development Services. 3. Uses established on the subject property shall comply with all zoning/SPSP standards applicable to the property for the life of the Project. Resolution No. Page 12 12 of 21 January 7, 2020, Item #3.1 K. The following conditions shall be complied with to the satisfaction of the Director of Safety Services: 1. Fire Department access for use of firefighting equipment shall be provided to the immediate job construction site at the start of construction and maintained at all times until construction is completed. 2. Permanent access roadways for fire apparatus shall be designated as “Fire Lanes” with appropriate signs and curb markings. 3. Fire apparatus access roads shall have an unobstructed, improved width of not less than 20 feet. In most cases, the City of Poway construction standards for streets (Chapter 12.20 PMC) will be more restrictive. The more restrictive standard shall apply. Vertical overhead clearance shall be a minimum of 13 feet 6 inches. Fire apparatus access roads shall be designed and maintained to support the imposed loads of fire apparatus not less than 75,000-pounds with an approved paved surface as to provide all-weather driving capabilities. The turning radius of a fire apparatus access road shall be a minimum of 28 feet as measured to the inside edge of the improvement width or as approved by the fire code official. 4. The angle of departure and the angle of approach of a fire access roadway shall not exceed seven degrees (12 percent) or as approved by the fire code official. 5. The building shall display the approved numbers and/or addresses in a location plainly visible and legible from the street or roadway fronting the property from either direction of approach. Said numbers shall contrast with their background and a size approved by the City. Each building address shall also be displayed on the roof in a manner satisfactory to the Director of Safety Services, and meeting Sheriff Department- ASTREA criteria. 6. The building is required to be equipped with an approved fire sprinkler system according to PMC requirements. The fire sprinkler system shall be designed to meet minimum design density at the roof per NFPA 13 requirements. The system is required to be monitored by a central monitoring company. Backflow valve assemblies with tamper switches shall be monitored. The City Fire Marshal shall locate these fire protection devices prior to installation. Two separate plan submittals to the Fire Department will be required, one for the fire service underground and a second for fire sprinkler design. A water analysis is required. 7. The building is required to be equipped with an approved Class 1 automatic wet fire protection system according to PMC requirements. The standpipe system shall be installed according to NFPA 14. A plan submittal to the Fire Department is required. 8. Fire sprinkler riser(s) shall be located within ten feet of an exterior exit man door or shall be located inside an enclosed closet with an exterior access man door. Door shall be labeled with a sign indicating “Fire Sprinkler Riser.” When the closet method is chosen, applicant shall provide 36 inches of clearance from the standpipe or attached additional risers, accessible by a three-foot man door. 9. A metal sign with raised letters at least one inch (25mm) in size shall be mounted on all Fire Department connections serving automatic sprinklers, standpipes or fire pump Resolution No. Page 13 13 of 21 January 7, 2020, Item #3.1 connections. Such signs shall read: AUTOMATIC SPRINKLERS or STANDPIPES or TEST CONNECTION or a combination thereof as applicable. Where the Fire Department connection does not serve the entire building, a sign shall be provided indicating the portions of the building served. 10. A properly licensed contractor shall install an automatic fire alarm system to approved standards according to the PMC. The system shall be installed according to NFPA 72. Duct detectors shall be tied into system over 2,000 cfm total. The system shall be completely monitored by a UL listed central station alarm company or proprietary remote station. A plan submittal to the Fire Department is required. 11. A ‘Knox’ Security Key Box shall be required for the building at locations determined by the City Fire Marshal. 12. A 2A10BC fire extinguisher(s) are required for office areas every 3,000 square feet and 75 feet of travel distance. 13. At least one elevator shall be sized at a minimum to accommodate a normal hospital gurney. Minimum dimensions for the inside car platform shall meet the “Medical” size standards per the California Building Code. 14. All automatic gates across fire access roadways and driveways shall be equipped with approved, emergency, key-operated switches overriding all command functions and opening gates. Dual-keyed or dual switches shall be provided to facilitate access by law enforcement. SECTION 6: The approval of DR19-003 shall expire January 7, 2021, at 5:00 p.m., unless prior to that time a Building Permit has been issued and construction has commenced on the property unless prior to the expiration, a request for a time extension is submitted to the Development Services Department and a time extension is subsequently granted by the City Council. SECTION 7: 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. Resolution No. Page 14 14 of 21 January 7, 2020, Item #3.1 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 7th day of January, 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: ______________________________ Steve Vaus, Mayor ATTEST: ________________________________ Faviola Medina, CMC, City Clerk 15 of 21 ATTACHMENT B January 7, 2020, Item #3.1 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING SPECIFIC PLAN AMENDMENT 19-001 TO THE SOUTH POWAY SPECIFIC PLAN TO ALLOW SELF-STORAGE BUILDINGS TO CONTAIN A MAXIMUM OF THREE STORIES WITHIN THE EXISTING HEIGHT ALLOWANCE WHEREAS, Chapter 17.47 (Specific Plan Regulations) of Title 17 (Zoning Development Code) of the Poway Municipal Code provides the requirements for the initiation, preparation, and adoption of Specific Plans in accordance with Section 65450, et seq. of the California Government Code (Article 8, Specific Plan); WHEREAS, Specific Plan Amendment (SPA) 19-001, in association with Development Review (DR) 19-003, is proposed to allow self-storage buildings to contain a maximum of three stories within the existing height allowance; WHEREAS, on January 7, 2020, the City Council held a duly advertised public hearing to solicit comments from the public, both in favor and against SPA19-001; 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, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS: SECTION 1: The above recitations are true and correct. SECTION 2: An Environmental Impact Report (EIR) was prepared pursuant to the California Environmental Quality Act (CEQA) in conjunction with the South Poway Specific Plan (SPSP), and was certified on July 30, 1985, and the Final Subsequent EIR was certified on July 26, 1988. The SPSP EIR analyzed the potential impacts of the proposed build out of the SPSP area in the manner permitted by the SPSP. The proposed SPA is consistent with the SPSP and conforms with the requirements, development standards and guidelines therein, and, therefore, as set forth in Chapter 10, Section VIII of the SPSP, no further environmental analysis is required because the project’s impacts have already been analyzed and are fully covered by the previously certified EIR. The increase in the allowed number of stories from two to three within the existing maximum height requirements for self-storage buildings does not impact the aesthetics because the allowed building heights will remain the same. Additionally, there are no significant changes proposed that would require subsequent or supplemental environmental review pursuant to Public Resources Code section 21166 and CEQA Guidelines sections 15162 and 15163. SECTION 3: The City Council hereby approves this Ordinance (SPA19-001), in association with DR19-003, and amends certain sections of the SPSP as specified below. Removals are indicated with strikethroughs and additions are indicated with underline. SECTION 4: Chapter 3, Section IV, Subsection A, Item 3(f) of the SPSP Volume 2 shall be amended as follows: 3. Height [Excerpt only] Ordinance No. Page 2 16 of 21 January 7, 2020, Item #3.1 f. The maximum height of a public storage structure shall not exceed 35 feet. No more than three stories shall be contained within the 35-foot height limit. SECTION 5: Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance or its application to any person or circumstance, is for any reason held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact of any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. SECTION 6: This Ordinance shall be codified. SECTION 7: All references to the Government Code are inclusive of any amendments that may occur following adoption of this Ordinance. EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days after its adoption. CERTIFICATION/PUBLICATION: The City Clerk shall certify the adoption of this Ordinance and cause it or a summary of it, to be published with the names of the City Council members voting for and against the same in the Poway News Chieftain, a newspaper of general circulation in the City of Poway within fifteen (15) days after its adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in accordance with Government Code § 36933. INTRODUCED AND FIRST READ at a Regular Meeting of the City Council of the City of Poway, California, held the 7th day of January, 2020, and thereafter PASSED AND ADOPTED at a Regular Meeting of said City Council held the 21st day of January, 2020, by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: ________________________________ Steve Vaus, Mayor ATTEST: _____________________________ Faviola Medina, CMC, City Clerk KIRKHAM RD SCRIPPS POW A Y P Y PARNELL CT CITY OF POWAYZoning / Location MapItem: SPA19-001/DR19-003o 0 110 22055 Feet SPCSubject Location: APN 317-270-23 LI IP IP LI LI 17 of 21 ATTACHMENT C January 7, 2020, Item #3.1 S c rip p s P o w ay Pky Scripps Poway Pky S c r i p p s P o w a y P k y Cr e e k R d Kirkham Way C r os t h w aite Cir Tech Center DrStone m i l l D rGregg StKi r khamR d Danielson St Com m u nityRdStowe DrCommunityRdStow e D r Po m erad o R d S c r i p p s P o w a y P k y SPC SPC OS RS-2 LI-S SPC OS-1DU LI-S MRE IP LI-S IP OS SPC IP IP SPC OS-1DU OS-RM RA OS-1DU OS-1DU RR-C-1 OS LI-S IPIP OS-1DU OS-1DU IP LI-S LI SPC IP LI LI-S LI-S IPLI-SIP SC IP OS LI-S IP SPC LI-SIPIPLI-S IPLI OS Appendix C - South Poway Land Use Plan Updated 01/2019 Not to Scale Residential Single Family 2 South Poway Commercial Sports Complex RS-2 SPC SC Open Space Resource Management Open Space/1 Dwelling Unit Residential ApartmentRA OS-1DU OS-RMLight Industrial/Outside Storage Mineral Resource Extraction Open Space LI-S MRE OS Creek Road Enclave Specific Plan Industrial Park Light Industrial RR-C-1 IP LI18 of 21ATTACHMENT DJanuary 7, 2020, Item #3.1 NOTE: 17'-411 8" SPLIT-FACE MASONRY 6" CURB 2" HIGH x 24" WIDE ROUNDED CONC. BERM ,--------7,--------7 I 11 I I RECYCLE BIN I I TRASH BIN Iml I ¥%MAX I �1L ________ JL ________ J � 6" CURB b��>��>��>X'�� ENCLO SURE ALLOWS FOR PAIR OF 18 GA., 1 1/2" GALV DECKING W/ HEAVY DUTY HINGES 1 -4'x6' - 3 YARD TRASH BIN 1 -4'x6' - 3 YARD RECYCLE BIN TRASH SCALE: 1/4" = 1'-0" BUILDING AREAS FLOOR LEVEL THIRD FLOOR SECOND FLOOR FIRST FLOOR BASEMENT SUB-BASEMENT TOTAL PLAN AREA 23,492 SF 22,413 SF 22,286 SF 15,852 SF 15,852 SF 99,895 SF i� .. ·., I� \:•,'i . , ..... ..... _!'!_� •• ·1,·;, ,,; 1_:��j. •II ;,,·. ' � ••• .'I 65'-011 ;!If; i.. ·- w. 1' 32 -6 ' +1r.�:-� 851-0 11 CONCRETE DRIVEWAY SPECS: 6" NOMINAL PCC CONCRETE W/ #3 REBAR EACH DIRECTION @ 18" O/C OVER BASE AS SPECIFIED BY THE SOILS ENGINEER. EXTERIOR S LA BS TO BE THICKENED TO 12' FOR 12" HORIZONTAL ,------I WHERE ADJACENT TO LANDSCAPE AREAS. PAR KING AREA TO BE PROVIDED WITH 1/2" DEEP SAW-CUTS AT 1IY O/C IN BOTH DIRECTIONS. WHERE CONCRETE SLABS ABUT THE STRUCTURE, PROVIDE MINIMUM 1/2" THICK EXPAN SION JOINT MATERIAL. CONCRETE COMPRESSION STRENGTH TO BE MIN. 2,500 psi. S UB-GRADE MATERIAL TO BE COMPACTED TO 95%. DENOTES CAR OVERHANG OF LANDSCAPE AREA �=�===----1f��---- SPLIT FACE, 8' HIGH MASONRY TRASH --- - '�.--. ·• . . :.:· .• JI & RECYCUE EN CLOSURE W/ STANDING I ---------- . lt;:3 oo_, OJ g CT: I SEAM METAL ROOF & HEAVY DUTY MTL. GATES. COLORS TO MATCH BUILDING. •'11!...a:,l_ 40'-011 :11'. .. -'.· •' (SEE ENLARGED PLAN ON THIS SHEE1) I .•· 21+43.�0 --I{ I .. 359.59'�-/ / � .. /,,,,.--Bl�E �CKS __ .. _______ ., ________ ., • r: 11 7 ----------� _,1,___ _ _ ( _ ·., ··-· ;11· � •.� .:: ., -... ,. I : ·.;,; I I .... ,.,, .... '· • .... /L : -:_ I 5' I�... I C C C co co © . I· I ;;-.. �-L _J . . . 4 "--------" ,1•tt: · fu'i\c:0 C:01/ ;. ,,• . . ', . �\J ::-;; ---- � ,- ,- .. -.·� -I -� /_..... • . •( X I... T-�-� �-u j,--..;:,.J 8'-6"J 9,_6,,··.I·• '•. / ----..-� TYP. n ::·." ----...._ � • f4?I L4 u I·1: ... , I ; \\ 5' � ,,. ( -� I � � "\ I j: {0;0 ,,/-50' RAD. \ _\\ L5 \--4, . ;;:; .. 1 , \ .. ;.,j r , @- - -@ \_ � I I --------------- EXISTING SLOPE FREE STANDINlSIGN 6' HIGH MAX & SF (SEE NOTE#2 THIS SHEE1) · ... //, A 4 4 w -=- -: rA �-\�,/2 Mm n 1 � --_ : :·· : .· � '\' //I 10 $ u I SEE NOTE #1 REGARDING � I [Q ; ,: '. • • • + + • I \!...J °' ii/ I 1 >-THI S SPA CE a, O .r I •···· • 7· .o' V/ //, L1 L2 L3 � g .{;: ::::::: I ------.---/ \ I / / /,,,; = OFFICE �I � Vo'!" I ♦ ♦ ♦ ♦ ---=---==-� I ' --' "' __... .. �:-♦�♦•♦ [2J � I + I "" EXISTING 10'LJTILITY : -§: ,CL++'., I I : o EASEMENT I ·.:,:·I ·!O'. • +. I '-I i(i 0 <( 0 0:: �· <( ::r: � 0:: ' . ,O • • 0 \ I C I "-' f�•·: ·�♦:· I V � � ' �:: I :�::: I I I I � � .· �f/ I :�::: I n PROPOSED A-1 SELF I � o · ! · ·'"" · · 1 uo: :/1 I:[::: I ,STORAGE FACILITY I : ·�t I :�::: I ,-, c13'-o",_6,,99 ,985 GSF . .. -�·. I.. /�, I :ii<:: I L6 �I ,, / I• ... ♦ ♦ ♦ I ' : •·. • • • •X I·.• ��:' ,{1..ftl�..1 �1 -�1 1 I 251 -0 11 181 -�.k ·-....,. fsLt��2��EDICAL" SIZE . � ••••••• I ' L? 1' "'/ CAR PLATFORMS ON FLOOR I-:.�•-'♦•♦•♦•♦ J X PLANS) •. , I ••• " .,,, ·, • ♦ ♦ ♦ ♦ - ------------ - C") : 0. L{) O') ...... PARNELL COURT - � t·,:, :::::::I .1'18'-6" C I • I ••• i :♦:♦:♦: I I I,· ♦ ♦ ♦ • •• ♦ ♦ ♦ ♦ �-.? I ♦:•:♦:• I n 125•.1011 1 ---------------· • ...•_,_• ... •r u 7 I ---------------------' / \ I EXISTING SLOPE FIRE DEPARTMENT NOTES: 1.FIRE DEPARTMENT ACCESS FOR USE OF FIREFIGHTING EQUIPMENT SHALL BEPROVIDED TO THE IMMEDIATE JOB CONSTRUCTION SITE AT THE START OFCONSTRUCTION AND MAINTAINED AT ALL TIMES UNTIL CONSTRUCTION ISCOMPLETED.2.PERMANENT ACCESS ROADWAYS FOR THE APPARATUS SHALL BE DESIGNATEDAS "FIRE LANES" WITH APPROPRIATE SIGNS AND CURB MARKINGS.3.FIRE APPARATUS ACCESS ROADS SHALL HAVE AN UNOBSTRUCTED, IMPROVEDWIDTH OF NOT LESS THAN 20 FEET. IN MOST CASES, THE CITY OF POWAY CONSTRUCTIONSTANDARDS FOR STREETS (CHPA. 12.20 PMC) WILL BE MORE RESTRICTIVE. THE MORERESTRICTIVE STANDARD SHALL APPLY. VERTICAL OVERHEAD CLEARANCE SHALL BE AA MINIMUM OF 13-FEET 6-INCHES. FIRE APPARATUS ACCESS ROADS SHALL BE DESIGNEDAND MAINTAINED TO SUPPORT THE IMPOSED LOADS OF THE FIRE APPARATUS NOT LESSTHAN 75,000 POUNDS WITH AN APPROVED PAVED SURFACE AS TO PROVIDE ALL-WEATHERDRIVING CAPABILITIES. THE TURNING RADIUS OF A FIRE APPARATUS ACCESS ROAD SHALLBE A MINIMUM OF 28 FEET AS MEASURED TO THE INSIDE EDGE OF THE IMPROVEMENTWIDTH OR AS APPROVED BY THE FIRE CODE OFFICIAL.4.THE ANGLE OF DEPARTURE AND THE ANGLE OF APPROACH OF A FIRE ACCESS ROADWAYSHALL NOT EXCEED 7 DEGREES (12 %) OR AS APPROVED BY THE FIRE CODE OFFICIAL. 5.THE BUILDING SHALL DISPLAY THE APPROVED NUMBERS AND/OR ADDRESSES IN ALOCATION PLAINLY VISIBLE AND LEGIBLE FROM THE STREET OR ROADWAY FRONTING THEPROPERTY FROM EITHER DIRECTION OF APPROACH. SAID NUMBERS SHALL CONTRAST WITHTHEIR BACKGROUND AND SIZE APPROVED BY THE CITY. EACH BUILDING ADDRESS SHALL ALSOBE DISPLAYED ON THE ROOF IN A MANNER SATISFACTORY TO THE DIRECTOR OF SAFETYSERVICES, AND MEETING SHERIFF DEPARTMENT -ASTREA CRITERIA.6.THE BUILDING IS REQUIRED TO BE EQUIPPED WITH AN APPROVED FIRE SPRINKLER SYSTEMACCORDING TO POWAY MUNICIPAL CODE REQUIREMENTS. THE FIRE SPRINKLER SYSTEM SHALL BE DESIGNED TO MEET MINIMUM DESIGN DENSITY AT THE ROOF PER NFPA 13 REQUIREMENTS. THE SYSTEM IS REQUIRED TO BE MONITORED BY A CENTRAL MONITORING COMPANY. BACKFLOW VALVE ASSEMBLIES WITH TAMPER SWITCHES SHALL BE MONITORED. THE CITY FIRE MARSHALL SHALL LOCATE THESE FIRE PROTECTION DEVICES PRIOR TO INSTALLATION. TWO SEPARATE PLAN SUBMITTALS TO THE FIRE DEPARTMENT WILL BE REQUIRED, ONE FOR THE FIRE SERVICE UNDERGROUND AND A SECOND FOR THE FIRE SPRINKLER DESIGN. A WATER ANALYSIS IS REQUIRED. 7.THE BUILDING IS REQUIRED TO BE EQUIPPED WITH AN APPROVED CLASS 1 AUTOMATIC WETFIRE PROTECTION SYSTEM ACCORDING TO POWAY MUNICAPAL CODE REQUIREMENTS. THE STAND PIPE SYSTEM SHALL BE INSTALLED ACCORDING TO NFPA 14. A PLAN SUBMITTAL TO THE FIRE DEPARTMENT IS REQUIRED. •:t\�--I ••••••• 1' C -1 I--.::::::---. ·r .-:! + • + • • •.. I ... .... I :�;�� I : : : : : : : I n 168-14 11 (@ 2nd & 3rd floor)1 1 :�r:·;• ••••••• I u 126·-10· --...... .1 ��er ._, • • • . '\ I ::::::: I f.i?, ';-- - -,'i"?,-c:--!I - - --,:::: - - - - - - - - - -I \ 1:.,i·.- --..,___ --� "' � � )· I N / \ EXISTING b b 41 1-6 11 -----\ ---------- >:' II SLOPE / \ I : ·.,'-. ••- • .. / \ •• ••I 1 .. 1------··-----lte-----l i '.i� O"\_ 356.23' -!lit-�6'MAX.HIGH SPLITFACEMASONRY I SITE DATA I•·· RETAINING WALL. COLOR TO MATCH B UILDING. SEE COLOR S PECS ON SHEET 8. 8.FIRE SPRINKLER RISERS SHALL BE LOCATED WITHIN 10 FEET OF AN EXTERIOR EXIT MAN DOOROR SHALL BE LOCATED INSIDE AN ENCLOSED CLOSET WITH AN EXTERIOR ACCESS MAN DOOR. THEDOOR SHALL BE LABELED WITH AN SIGN INDICATIONG "FIRE SPRINKLER RISER". WHEN THE CLOSETMETHOD IS CHOSEN, APPLICANT SAHLL PROVIDE 36 INCHES OF CLEARANCE FROM THE STANDPIPEOR ATTACHED ADDITIONAL RISERS, ACCESSIBLE BY A 3'-0" MAN DOOR.9.A METAL SIGN WITH RAISED LETTERS AT LEAST ONE INCH IN SIZE SHALL BE MOUNTED ON ALLFIRE DEPARTMENT CONNECTIONS SERVING AUTOMATIC SPRINKLERS, STANDPIPES OR FIRE PUMP CONNECTIONS. SUCH SIGNS SHALL READ: AUTOMATIC SPRINKLERS OR STANDPIPES OR TEST CONNECTION OR A COMBINATION THEREOF AS APPLICABLE. WHERE THE FIRE DEPARTMENT CONNECTION DOES NOT SERVE THE ENTIRE BUILDING, A SIGN SHALL BE PROVIDED INDICATING THE PORTIONS OF THE BUILDING. 10.A PROPERLY LICENSED CONTRACTOR SHALL INSTALL AN AUTOMATIC FIRE ALARM SYSTEM TO APPROVED STANDARDS ACCORDING TO THE POWAY MUNICIPAL CODE. THE SYSTEM SHALL BEINSTALLED ACCORDING TO NFPA 72. DUCT DETECTORS SHALL BE TIED INTO SYSTEM OVER2000 SFM TOTAL. THE SYSTEM SHALL BE COMPLETELY MONITORED BY A UL LISTED CENTRAL STATIONALARM COMPANY OR PROPRIETARY REMOTE STATION. A PLAN SUBMITTAL TO THE FIRE DEPARTMENTIS REQUIRED.11.A 'KNOX' SECURITY KEY BOX SHALL BE REQUIRED FOR THE BUILDING AT LOCATIONS DETERMINEDBY THE CITY FIRE MARSHAL. 12.A2A10BC FIRE EXTINGUISHER(S) ARE REQUIRED FOR OFFICE AREAS EVERY 3000 SF AND 75 FTOF TRAVEL DISTANCE. 13.AT LEAST ONE ELEVATOR SHALL BE SIZED AT A MINIMUM TO ACCOMMODATE A NORMAL HOSPITALGURNEY. MINIMUM DIMENSIONS FOR THE INSIDE CAR PLATFORM SHALL MEET THE "MEDICAL" SIZE STANDARDS PER THE CALIFORNIA BUILDING CODE. NOTE: ELEVATORS PROPOSED MEET THE MIN. SIZE 80"X54" INSIDE REQUIREMENTS OF CBC SECT. 3002 LOT 103 PARKING REQUIRED: 1/ 1,000 SF FOR 1ST 20,000 SF� 20 SPACES 1/ 2,000 SF FOR 2ND 20,000 SF� 10 SPACES 1/ 4,000 SF FOR OVER 40,000 SF� 15 SPACES EMPLOYEE SPACES � 1 SPACES 46 SPACES THEREFORE ... 46 SPACES WILL SUPPORT 100,000 SF STANDARD SPACES: 8.5' X 18.5' COMPACT SPACES: 8' X 15' (20% MAX ALLOWED� 8 SPACES MAX.) NOTES: ACTUAL PROVIDED: STANDARD SPACES: 31 ACCESSIBLE SPACES: 2 COMPACT SPACES: 8 LOADING SPACES: 5 TOTAL 46 #1. A SIGN IS REQUIRED THAT WILL NOTIFY MOTORISTS THAT PARKING WILL NOT BE ALLOWED IN THIS SPACE DURING EDCOREFUSE PICK UP TIMES. #2. THE FREE STANDING SIGN WILL ONLY BE APPROVED AS PART OF A SEPARATE SIGN PERMIT. #3. UTILITY SERVICE FOR PROPOSED STRUCTURE IS REQUIRED TO BE INSTALLED UNDERGROUND NO OVERHEAD SERVICE WILL BE PERMITTED. 0 w ;::a:I=> Ien o::: cnO <( z LANDSCAPING: 51% (35,685 S.F.) ENTIRE LOT: SITE AREA: 69,792.8 S.F. % LOT AREA LANDSCAPED: PARKING AREA: PARKING AREA: 14,385 S.F. REQUIRED 10% LANDSCAPING : 1,439 S.F. PROVIDED LANDSCAPING: 1,790 S.F. SITE PLAN SCALE: 1 "=20'-0" 0 10 20 40 � 5 15 30 60 BAR SCALE REVISION BY � z -1']1']::;: .._ � ol'l □ D Ill N ID -□ llJ .N >(ai �c I{)' ,.. \O LO .-o ��st�□� □--a,-N I � Cl\'□ .._ l,J --I{) '"I-\[) \[) \[) ..:z -_v !. S: · x- � l!I ..: �@) z LL\O� y-w -z :::J � Qi:� �-IO c, ..J >st '" 11.<( [l\ '"�. �-�l,J -Cl\ � IO �::I '"<( □ ..... I- �□i:2;IS � z .,. I-:::i � t;I aw..: Q:: u I']�� l'l..:□<( CD..J CJ �:S-, OWNER (.) z-.,,..... Cf) Cl) wr!,.Q) Uooa:: w ·-::Sc-.i -t:::= a..,....O I-Q) w� 1--o::: a. �e(.) w a:: 0 8 0 a.. L.. "" < LL.I a_ z�a:: 0 z 0� 1--0::: � L.. gi � a.. Q) :::i; z o..- . r--o 0 ,v Cl) O(.!) LL '" i:owuW "' st cI-() zCf) i,i<( • i "C ro 0 0::: <{ E LI ro ....c >--c <{S2 3MO � 0.. C'\I T""" PROJECT DATE: 11.6.19 SCALE: DRAWN: JOB NO: 2 19 of 21ATTACHMENT EJanuary 7, 2020, Item #3.1 ,p :f 11_411 Factory Installed Mastic (When Specified) MasterLine 16 Panel Profile 11-011 6" 1· 6" :f 3 FW-120-1 Panel Profile 733.50' PANEL PRO Fl LES 24'-0" CASTER CASTER BLUE ORANGE -1 Self Sto��!LBACKLJTLETTERS "' 0HEIGHT LIMIT 768.50' --- -- ®VERTICAL SIDING -,.._ EXIST/NATURAL GRADE CALCULATED AVERAGE ------------HEIGHT LIMIT DETERMINATION 2ND FLOOR 729.57--- 1ST FLOOR 719.20 b.. - +- itl � � G)G)------ ----------©-DENOTES LINE OF STAN ING HORIZONTAL SIDING SEAM ROOF BEYOND SPANDREL GLASS @ 1/ AOCHITCGru""-,,rn, � +-rl 1- G)G)1 HEIGHT LIMIT 733.5() _,_ - - - - - - - - +- - - - - - - +- - - - - - - - - -v VERTICAL SIDING 0 4'-0" VERTICAL SIDING 0 22'-7''14'-7" 4 '-0" � n,PI "KINGSPAN" METAL fs\ IIPANELS \::...J ' Ii- ./I y ,Y V t-NH1� =it-f+ V 1-ttt- � �---+--t--VISION GLASS @ ARCHITECTURAL VENT @ i IIII I I I 111 1111 111 1111111-111111 1111 111111 111111111+1-+++-++++++-++++-+++-+H lllllllllllllllllllll-11111 1111111 111111111111 1111 1111111 1111111111111 1111 3RD FLOOR ...... SPLIT FACE-::::-7 MASONRY @ - l�I'• I l�I 1 I I I� I: I: I: I: ti IA I -------- L _______ _ 1li___'.l_J �: I: --------------- EXIT DOOR FROM STAIR© NORTH F • ···�·===111:1: __ �I I ' DID � ROLL-UP DOORS 0 ---------- ------------ Ir 1:-1-�□r ,,, I" ! 2ND FLOOR 722.5 � h ,r-1ST FLOOR (719.201 � SPLIT FACE@ MASONRY I I I I I I ---------------------7 ELECTRONIC SLIDING : ENTRANCE DOORS 1 I I I BASEMENT ---------------------------------------� SUB-BASEMENT ELEVATION EXTERIOR SIGNAGE [ G) G) 0... HEIGHTUMIT 768.50' � HEIGHTUMIT 768.50' 9 !ll 733.50' EXTERIOR FINISH SCHEDULE @ ® 0 0 0 0 RCP SPLIT-FACE MASONRY PAINTED: "TRAVERTINE" DEC738 RCP PRECISION MASONRY PAINTED: "TRAVERTINE" DEC738 METAL WALL PANELS: EXTERIOR HORIZ .. PATTERN METAL SIDING MBCI PANEL "MAS TERLINE 16" COLOR: "SLATE GRAY" METAL WALL PANELS: EXTERIOR VERT. PATTERN METAL SIDING MBCI PANEL "MAS TERLINE 16" COLOR: "ASH GRAY'' METAL WALL PANELS: EXTERIOR VERT. PATTERN METAL SIDING MBCI PANEL "FW-120-1", 24 GA. SIDING COLOR: "RUSTIC RED" METAL FASCIA PANELS KINGSPAN INSULATED PANELS COLOR: "SILVERSMITH" NOTE: ALL PAINT, DUNN EDWARDS PAINTS. EXTERIOR METAL TO HAVE A KYNAR FINISH. 0 0 0 0 @ @ ® ® ® 0 METAL ROOF: MBCI ULTRA-DEK STANDING SEAM ROOF; 1/4" IN 12" SLOPE; 24 GA. METAL; COLOR: "GALVALUME" SIGNATURE 200 ROLL-UP DOORS: JAN US OR EQUAL COLOR: "DESERT TAN" STOREFRONT & WINDOW FRAMES: PAINTED: DUNN-EDWARDS COLOR: "MIL FINISH" MAN DOORS & FRAMES: COLOR: MATCH MBCI "TRAVERTINE" DEC738 VISION GLASS: 1/4" SINGLE PANE ( CLEAR) SPANDREL GLASS: 1/4" SINGLE PANE REFLECTIVE "AZURITE" GUTTERS & DOWNSPOUTS: COLOR: PAINT TO MATCH ADJOINING SURFACE. MECHANICAL LOUVER VENTS@ STOREFRONT COLOR: PAINT TO MATCH ADJOINING MULLIONS ( MIL FINISH. METAL CANOPIES COLOR: MATCH "RUSTIC RED" OF SIDING. LOUVER VENTS IN MASINR Y OR SIDING COLOR: MATCH THE ADJOINING SURFACE l --------------+------- I I HEIGHT LIMIT @ ARCHITECTURAL VENT --------------- _j 1 0 VERTICAL SIDING---.......__ � � �I zl r�===--=--=--�}2 �6�'-�0"�2'.--:'.'._7_,:::�7:=��;;.�,_�o�"i VISION GLASS @ API "KIN A 11. aa11 ,,,,.ccs os,., ""AL0 34'-0" 4'-0" II I � ,J,, I III I I � 1111 1111 1111111 11111111111111111 111 111111 1111111 T/; _ �I 11 1111 I I I I I I I I I I I I I I 1111111111 111-1+++++-I-HI+++-= v �V' SPANDREL GLASS @ ARCHITECTURAL VENT @ 20'-0" ----- _j � � HORIZONTAL 11DING 0 � rERTICAL SIDING© � -111-+++mll f l 11111 3rd FLOOR 738.90 I I "' "' CALCULATED AVERAG E -----HE IGHT LIMIT DETERMINATIO N .SE'UI.F �CE =---.:::::-I-MASONRY '--, 1 1 -----+--733.50' --� � � @ AVEft>.GE GRADE WITHIN 20' OF B�ILDING LINE= 722.5''.:11 I � I I I I I I I I I II--,.-I -- --i--------- 1 I I I I I �-------------------�-------- PLANNING DIVISION NOTES: #4. ALL EXTERIOR SIGNS SHALL BE APPROVED ONLY UNDER A SEPARATE PERMIT. II I #6. ALL LIGHT FIXTURES PROPOSED ARE BUILDING MOUNTED. THEY SHALL BE SHIELDED WITH WELL DEFINED CUT-OFF LIMITS TO CONFINE ILLUMINATIONTO THE SITE AREAS ONLY. ALL LIGHTING TO BE CONSISTENT WITH ALL OTHER REQUIREMENTS CONTAINED IN CHAPTERS 17.10 AND 17.42 OF THE POWAY MUNICIPAL CODE. - □ II I I I I I I I 1;,Ji:�: ::�::::::::_:_ :::::::::::::� ;\,1 1 1�1 1,- nl □:::J8: �§:::J�;: VISION GLASS @ � SPLIT FACE@ MASONRY ��: -�: :_:�: : ; 1, fN,_, 1, 1, 1 �::::::::::I I I I I I fffl y,y □�,�:� IL-.. _ ' I ' I ' I ' 11 - I \JI I 1' I ' I ' I ' I ' I ' II I I I I 2nd FLOOR LJ -719.20 � SPLIT FACE@ MASONRY I c:::I �STAIR E*IT DOOR(u ELECTRONIC SLIDING ENTRANCE DOORS I I BASEMENT---� 729.57 --1st FLOOR I I 9- 9 ---------------__ J__§_SU�BtB�A�S�EM�E�N�T ______________ , - WEST ELEVATION AVERAGE GRADE FOR DETERMINATION OF BUILDING HEIGHT LOWEST FINISHED GRADE WITHIN 20' OF BUILDING PERIMETER = 717.00' HIGHEST FINISHED GRADE WITHIN 20' OF BUILDING PERIMETER = 750.00' 1,467 / 2 = 733.5' EXTERIOR SCALE: 3/32" = 1'-0' ELEVATIONS "I cl, "' �I I REVISI □N BY � I\ I� 1, � z -['][']:,:l!I O C'l D □ a-.; W NCD-tl I L,J • Nx ui \[J 1/'1 -[J �o lf'I' ,- � � ::�□t-0\-N I ct: 0\ I U a-;;; L,J -1/'1 �I-\[J :a \[J -,: z __ '¢ !. 5: · x-� [!I -,: �@) z ..,1..i. \[J I< yz::i-� z z � Eli: -,: ..,_ [JJ ..J >st �II. <(()\ �-q:. �-�L,J -Cl\ � [JJ I< ::I �<( [J -- ,-�u ii2 [J - � � �� I D w -,: Q: [J [']� � � [']-,: □ <( [11..J u ■■■ OWNER (.) I') ZI CX) CX) en en w� -� �� a::: w 0 .= t: a.,._(]) w� I-0:: Q. c.,co o:::-(.) w 11: � a:::0 °oL.. C., N LI.I a.. ZNz 0 0> 1--0:: Ill 3:: L.. Ill c'.S zO.. (]) ::lE 0 __, r--6oo:: en Oc., co cow uW v- (.) �en i?i (.) I i "C co 0 a::: <{ E LI co "'..c >-"C <{ S2 3 C")□ � 0.. N T""" PROJECT DATE• 11.6.19 SCALE• DRA'w'N• JOB N □, B 20 of 21January 7, 2020, Item #3.1ATTACHMENT F [ � � HEIGHT LIMIT 768.5() 0 / VERTICAL SDING0 v i,, SPANDREL GLASS @ ARCHITECTURAL VENT @ / HORIZONTAL SIDING 0 0 ' VERTICAL SIDING© EXISTING SLOPE BANK ----++c+--+j-+++J++-+++--+++-1--'"' " ' ' ,141,r1-r -I 3rd FLOOR 733.50' J.__fALCULATED AVERAGE HEIGHT LIMIT DETER MINATION ------- SPLITFACEV MASONRY I @ I -------lfi.-- I I EXISTING AND ----.....__ FINISH GRADE � ""si-- I LI I I I I I L 20'-0" l EXTERIOR FINISH SCHEDULE �, :::J �I @ ® 0 0 0 0 RCP SPLIT-FACE MASONRY PAINTED: ''TRAVERTINE" DEC 738 RCP PRECISION MASONRY PAINTED: ''TRAVERTINE" DEC 738 METAL WALL PANELS: EXTERIOR HORIZ .. PATTERN METAL SIDING MBCI PANEL "MASTERLINE 16" COLOR: "SLATE GRAY" METAL WALL PANELS: EXTERIOR VERT. PATTERN METAL SIDING MBCI PANEL "MASTERLINE 16" COLOR: "ASH GRAY" METAL WALL PANELS: EXTERIOR VERT. PATTERN METAL SIDING MBCI PANEL "FW-120-1", 24 GA. SIDING COLOR: "RUSTIC RED" METAL FASCIA PANELS KINGSPAN INSULATED PANELS COLOR: "SILVERSMITH" NOTE: ALL PAINT, DUNN EDWARDS PAINTS. EXTERIOR METAL TO HAVE A KYNAR FINISH. 0 0 0 0 @ @ ® @ ® METAL ROOF: MBCI ULTRA-DEK STANDING SEAM ROOF: 1/4" IN 12" SLOPE: 24 GA. METAL: COLOR: "GALVALUME" SIGNATURE 200 ROLL-UP DOORS: JANUS OR EQUAL COLOR: "DESERT TAN" STOREFRONT & WINDOW FRAMES: PAINTED: DUNN-EDWARDS COLOR: "BONE WHITE" MAN DOORS & FRAMES: COLOR: MATCH MBCI "TRAVERTINE" DEC738 VISION GLASS: 114" SINGLE PANE ( CLEAR) SPANDREL GLASS: 114" SINGLE PANE REFLECTIVE "AZURITE" GUTTERS & DOWNSPOUTS: COLOR: PAINT TO MATCH ADJOINING SURFACE. MECHANICAL LOUVER VENTS COLOR: PAINT TO MATCH ADJOINING MULLIONS ( BONE WHITE) . METAL CANOPIES COLOR: MATCH "RUSTIC RED" OF SIDING. UJa. a. 0 u, ,�III /1 � I , 0 - f- - I I ■ II \ FINISH GRADE ------------------------------------ SOUTH ELEVATION II :/� e ,----------! SPLIT FACE@ MASONRY 11 I I I I stI_, I I ----�------'k--2nd FLOOR I I I I I I -----------------� � -6 - S'- 1st FLOOR 719.20 -----+-------------------------'le-BASEMENT I I I I I I -----------------� s � - SUB-BASEMENT - - - - - - -"""Q'Elffl Cl'tt:Stf'ilt,jG@ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---+-20'-0'' � � 3rd FLOOR 733.50' UJ z :::J � o I � I� 0 z - l st HEIGHT LIMIT 768.5() I " II � 111 111 111 11 II 111111 111 111 11111 111111111.llli I I I, ......... ,...,,...,., ... ,, ,...,.....,,.,I I I , '".I ......... I TO MATCH VERTICAL SIDING I - - --,--- _b'J. __ CA LCULATED AVERAGEHEIGHTLIMiT°DETERMiNATION I I ,--------------------------------------------------------------------------------------------------------------, I I I I I I I I I I I I L--------------------------------------------------------------------------------------------------------------� EAST (REAR) ELEVATION EXTERIOR SCALE: 3/32" = 1'-0" 2nd FLOOR 729.57' I J, � -- 1st FLOOR 719.20' ��----1--------'1-� ELEVATIONS 733.50' 9lll REVISION BY � A I\ I\ � z �['J['J::E .._ � ciC'J□□ In NID-UllJ ,N )(ui '-IC l/1 ' I-IC l/1 -u� � ::�□ � -IJ'I -N J:It (]'I ' u ---w�-111�1- IC IC IC <(&: ! -:::: � X IJ'I � l!I <( -@)z W LL. IC >< '-Jz::i-� z z � �� w�ID >,;t � II.. <( (]'I �iiiq: • �-� w -IJ'I It ID ><i. �i� u -� 5-ii-=_ ID UJ: 0W <(Et: u ['J::E !z It: C'l<(□<( ID...J U■■■ OWNER CJ �I Cl) It: UJ 0 � I-0:::u UJ <( a.. It: 0 I-0::: zO.. 0 0::: u UJI-Cl) CJ i I')I"'-IX) IX) (/)LL.I I Q) u!c •-:5N t:: II..,..._ Q)LLJ� Q. (!)ID o::-..., It: 0 8 0I... N w a,_ zN z 0 0> (/) � I... (/)c'S Q) :::E 0 +"" I"'-C/lo co� (_) "'O co 0 0:: <( • 0 8 i5 � E LIco �..c >--c <( �� C")o � D.. N T""" PROJECT DATE, 11.6.19 SCALE, DRA'w'N1 JOB N□, g 21 of 21January 7, 2020, Item #3.1 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT January 7, 2020 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services µI/ Oda Audish, Associate Planner ;1/!A- 858-668-4661 or oaudish@poway.org Conditional Use Permit 19-010, Development Review 19-007 and Minor Conditional Use Permit 19-007; a request for modifications to the Pomerado Hospital campus located at 15615 Pomerado Road This is a request to modify Phase II of a previously approved two-phased expansion project for Pomerado Hospital, located at 15615 Pomerado Road. The applicant is requesting approval to keep various existing temporary facilities needed for medical, storage and maintenance purposes within the northeast portion of the campus. This includes the construction of a covered accessible ramp providing access to medical mobile units and providing associated screening and landscape improvements. The applicant is requesting approval of Conditional Use Permit (CUP) 19-010, Development Review (DR) 19-007 and Minor Conditional Use Permit (MCUP) 19-007. Recommended Action: It is recommended that the City Council take public input, close the public hearing and adopt the Resolution. Discussion: Palomar Health (Applicant) is proposing to modify the CUP for Pomerado Hospital which is located at 15615 Pomerado Road in the Hospital Campus (HC) zone (Attachment B). The applicant is requesting to modify a two-phased hospital expansion project approved by the City Council in 2005 and 2007. The entire Phase I has been completed. The existing site plan is shown in Attachment C. The existing site plan includes several temporary facilities that are currently not permitted or were not included with the Phase I expansion. The modified Phase II will include retaining various existing temporary facilities including two mobile units used for medical purposes (MRI and CT scanning), one maintenance office trailer, and seven metal storage containers used for emergency preparedness and general purpose storage (Attachment D). The mobile units will be retained for no more than six years and the other facilities are proposed to remain on the campus permanently. Metal storage containers and office trailers are permitted on a long-term basis with City Council approval of a MCUP. Furthermore, the applicant is proposing to construct a covered ramp leading from the hospital to the two medical mobile units and associated screening and landscaping improvements. An electric power building which substantially conforms to the previously approved phasing plan is currently in the building and grading permit process. The site is surrounded by properties that are zoned Commercial Office to the south, north, and 1 of 18 January 7, 2020, Item #3.2 west with medical office facilities and assisted care facilities to the south and west, and a church and assisted care facility to the north. The property to the east is zoned Open Space-Resources Management and Rural Residential C, is currently undeveloped and includes hiking trails. In November 2005, the City Council approved Phase I of a major two-phased expansion of the Pomerado Hospital. At that time, only conceptual information was available for the Phase II expansion. Phase I consisted of a five-story attached addition to the hospital for outpatient services (Outpatient Services Pavilion) and a 1,200-space multi-story parking structure. The conditions of approval included the requirement to remove a MRI mobile facility upon completion of Phase I and to remove all remaining temporary facilities upon completion of Phase II. Phase I has been completed and the mobile MRI unit, that was required to have been removed, has remained on-site since the hospital did not have the ability to provide MRI services without it. In February 2007, the City Council approved a detailed plan for the Phase II expansion which included a new, five-story, in-patient building attached to the north side of the existing hospital, an expansion of the diagnostic and treatment services on the south side of the hospital, a Conference and Education Center, a remodel of the existing hospital, and relocation of the existing heliport. Future concept plans for an upgrade to the Central Operations Plant was also presented but not approved pending submittal of further details for City review and approval. Only the relocation of the heliport and portions of the upgrade to the Central Operations Plant have been completed as a part of Phase 11. Palomar Health cancelled the remaining aspect of Phase 11 because the operational capacity needs of Palomar Health were met with the development of the new Palomar Hospital in Escondido. The temporary facilities are all located towards the rear (east) of the property behind the hospital. None of the facilities are visible from the public right-of-way. Many visitors to the hospital using the parking garage pass the temporary facilities and staff is requiring landscape and screening to beautify that portion of the campus. The temporary structures are still needed for medical, storage, or maintenance office purposes. Since the approval of the phased expansion project in 2005 and 2007, five additional metal storage containers and a CT scanning mobile unit has been added without required City approval. The CT mobile unit is expected to be removed by the end of 2020 upon completion of the new power building that would enable a permanent CT scanner to be installed inside the hospital facility. The MRI mobile unit is expected to be removed by 2025 upon completion of tenant improvement that would provide for an MRI suite also inside the hospital which is currently being designed. Permanent landscape improvements will be constructed after each mobile unit is removed as shown in the post-2025 site plan included as Attachment E. Five large planter boxes and a low screening fence would be added east of the mobile medical units to enhance the view of the units. Attachment F provides an illustrative elevation of the mobile medical units and associated covered ramp. One additional in-ground tree and a six-foot high fence will be added along the perimeter of the central operations plant area and adjacent to the interior driveway to provide additional screening from cars leaving the parking structure, as shown in the photo simulations included as Attachment G. Environmental Review: The project is Categorically Exempt from the California Environmental Quality Act (CEQA), as Class 3 Categorical Exemptions, Section 15303(c) of the CEQA Guidelines, in that the project involves the addition of structures or units whose combined total area is less than 10,000 square feet, does not involve the use of significant amounts of hazardous substances, and the structures are located in an area where all necessary public services and facilities are available and not surrounded by an environmentally sensitive area. 2 of 18 January 7, 2020, Item #3.2 Fiscal Impact: None. Public Notification: A Notice of Public Hearing was published in the Poway News Chieftain on Thursday, December 26, 2019. A public notice was mailed to property owners and occupants located within 500 feet of the project site. Attachments: A.City Council Resolution B.Location/Zoning Map C.Existing Site Plan D.Proposed Site Plan E.Post-2025 Site Plan after Removal of Mobile Medical Units F.Illustrative Elevations of the Mobile Medical Units and Associated Covered Ramp G.Photo-Simulation of View of Central Operations Plan Area Reviewed/ Approved By: Assistant City Manager Reviewed By: Alan Fenstermacher City Attorney Approved By: c� City Manager January 7, 2020, Item #3.23 of 18 4 of 18 ATTACHMENT A January 7, 2020, Item #3.2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT 19-010, DEVELOPMENT REVIEW 19-007 AND MINOR CONDITIONAL USE PERMIT 19-007, A MODIFICATION TO THE EXPANSION PROJECT INVOLVING POMERADO HOSPITAL, ASSESSOR PARCEL NUMBERS: 275-461-14 and 275-461-15 WHEREAS, Conditional Use Permit (CUP) 19-010, Development Review (DR) 19-007 and Minor Conditional Use Permit (MCUP) 19-007 submitted by Palomar Health, is a request to modify a previously approved phased expansion of Pomerado Hospital located at 15615 Pomerado Road in the Hospital Campus (HC) Zone, to retain seven metal container storage units, two medical mobile units, and an office trailer, to construct a covered ramp leading from the hospital to the medical mobile units on the east side of the Hospital campus, and to provide associated screening and landscaping improvements; WHEREAS, the existing Pomerado Hospital facility was originally approved and developed prior to City incorporation under entitlements granted by the County of San Diego under P74-18 on April 19, 1974, for a five-story hospital with up to 300 beds; WHEREAS, the Pomerado Hospital facility and its entitlements were modified pursuant to various follow-up approvals granted by the City of Poway: P74-18M on February 16, 1982 (Resolution No. P-82-07), CUP 85-06 on June 4, 1985 (P-85-30), CUP 85-12/CUP 85-13/Minor Development Review Application (MDRA) 85-70/DR 85-18 on January 7,1986 (P-86-01 & P-86- 02), CUP 86-11/MDRA86-83 on November 25, 1986 (P-86-82), CUP 92-02 on April 21, 1992 (P- 92-16), P-74-018M2/MDRA 90-51/MDRA 92-39 on September 18, 1990 (P-90-71); WHEREAS, CUP 92-02M, MCUP 05-05, and DR 04-11, and Variance (VAR) 05-13, and Tentative Parcel Map (TPM) 05-04 were approved by the City Council on November 29, 2005 (Resolution No. P-05-80) to construct Phase I of a two-phased expansion project for the Pomerado Hospital, involving a five-story attached addition to the south side of the hospital for outpatient services, a 1,200-space parking structure, and temporary central operations plant structures and a medical mobile unit to be removed when permanent facilities would be completed as part of Phase I or II; WHEREAS, CUP 86-11M, VAR 06-12, and DR 14-11R were approved by the City Council on February 6, 2007, (Resolution No. P-07-03) for Phase II of the Pomerado Hospital expansion project consisting of a new, five-story, in-patient building attached to the north side of the existing hospital, an expansion of the diagnostic and treatment services on the south side of the hospital, and a Conference and Education Center, a remodel of the existing hospital, relocation of the existing helistop and retention of several central operations plant structures; WHEREAS, Phase I of the expansion project has been completed but only the relocation of the helistop has been completed of Phase II and Palomar Hospital has cancelled the remainder of Phase II. Temporary units to have been removed after Phase I and II remain on the site and one additional medical mobile unit, five metal storage units, and a maintenance office trailer have been added without required City approval; WHEREAS, on January 7, 2020, the City Council held a duly advertised public hearing to receive testimony from the public, both for and against, relative to CUP 19-010, MCUP 19-007, and DR 19-007; and Resolution No. Page 5 5 of 18 January 7, 2020, Item #3.2 WHEREAS, the City Council has read and considered the agenda report for the proposed project, including the attachments and technical reports, and has considered all other evidence presented at the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The project is Categorically Exempt from the California Environmental Quality Act (CEQA), as Class 3 Categorical Exemptions, Section 15303(c) of the CEQA Guidelines, in that the project involves the addition of structures or units whose combined total area is less than 10,000 square feet, does not involve the use of significant amounts of hazardous substances, and the structures are located in an area where all necessary public services and facilities are available and not surrounded by an environmentally sensitive area. SECTION 2: The findings for CUP 19-010 and MCUP 19-007, in accordance with Section 17.48.070 of the Poway Municipal Code (PMC) (Findings required before granting or altering permit), are made as follows: A. The proposed location size, design and operating characteristics of the proposed facilities are in accord with the title and purpose of this title, the purpose of the zone in which the site is located, the General Plan and the development policies and standards of the City in that the modification of the previously approved Pomerado Hospital expansion project is permitted with a modification to the CUP for Pomerado Hospital, and the existing metal containers, medical mobile units, and office trailer are permitted with the approval of a MCUP. The metal containers are used for storage of emergency preparedness supplies and the construction trailer is used for office storage and meetings. The medical mobile units provide essential support to the hospital. B. The placement of the trailers and metal containers is consistent in location, size, design and operating characteristics and scale with surrounding development. All the trailers and storage containers are placed towards the rear (east) of the hospital building and will be partially screened from view by existing structures, landscaping or a fence. The medical mobile units will be removed when permanent facilities can be provided within the existing hospital building. All structures will be consistent and compatible with and will not adversely affect or be materially detrimental to, adjacent uses, buildings, structures, or natural resources. C. The metal containers, medical mobile units, and office trailer are consistent in scale, bulk, coverage and density with adjacent uses. D. There are public facilities, services and utilities available to the site to serve the temporary units. E. The metal containers, medical mobile units, and office trailer are sited towards the rear (east) of the hospital site and will be partially screened by other existing buildings, a fence or landscaping. The metal containers and office trailers are painted in a color that blends in with the adjacent buildings and equipment. Therefore, there will be no harmful effect upon desirable neighborhood characteristics. F. The metal containers, medical mobile units, and office trailer will not generate additional traffic and will not adversely impact the capacity and physical character of surrounding Resolution No. Page 6 6 of 18 January 7, 2020, Item #3.2 streets and/or the Transportation Element of the General Plan. G. The site is suitable for placement of the metal containers, medical mobile units, and office trailer in that they all support the existing hospital operations on the site. H. The use involved has no hazardous materials or processes, nor does it significantly affect natural resources. Therefore, there will not be significant harmful effects upon environmental quality and natural resources. I. There are no other relevant negative impacts associated with the modification of Phase II of the previously approved two-phased hospital expansion project or the keeping of seven temporary buildings/units. J. The impacts, as described above, and the location, size, design and operating characteristics of the uses and the conditions under which they operate or are maintained will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity, nor be contrary to the General Plan. K. The modification of Phase II of the previously approved hospital expansion project and keeping of the storage, medical and office units will comply with each of the applicable provision of the Zoning. SECTION 3: The findings for a DR revision DR 19-007, in accordance with the PMC 17.52.010 Purpose of DR, are made as follows: A. The covered accessibility ramp has been designed to be architecturally compatible with surrounding development in that it will have a color that compliments the adjacent building exterior and skirting will be provided for the raised ramp. The project respects and recognizes the interdependence of land values and aesthetics to the benefit of the City. B. The Project has been designed to minimize impacts on surrounding development by utilizing screening, landscape and a compatible architectural design that complements the colors of the existing hospital building. Also, the area of the improvements is not visible from the public right-of-way. Therefore, the proposed development respects the public concerns for the aesthetics of development and encourages the orderly and harmonious appearance of structures and property within the City. C. The granting of the DR would not be materially detrimental to the public health, safety or welfare within the community since the proposed development will provide essential facilities to the hospital and since the facilities are not visible from the public right-of-way. D. The design and improvements of the proposed facilities are consistent with elements of the Poway General Plan. SECTION 4: The City Council hereby approves CUP19-010, MCUP-007 and DR19-007, as shown on the approved plans, stamped Exhibit A, and dated January 7, 2020 on file in the Development Services Department, except as noted herein and 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, Resolution No. Page 7 7 of 18 January 7, 2020, Item #3.2 including reasonable attorney's fees, collectively the “Claims” against the City or its agents, officers, or employees, relating to the issuance of any aspect of the Project approval set for in this resolution, including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval (including but not limited to CUP19-010, MCUP-007 and DR19-007) and any environmental document or decision made pursuant to CEQA. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, applicant shall pay all of the costs related thereto, including without limitation reasonable attorney's fees and costs. In the event of a disagreement between the City and applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation-related decisions, including, but not limited to, settlement or other disposition of the matter. However, the applicant shall not be required to pay or perform any settlement unless such settlement is approved by applicant. Notwithstanding the foregoing, no indemnity shall be required for claims resulting from the exclusive gross negligence or willful misconduct of the City. B. This approval is based on the existing site conditions and proposed project details represented on the approved plans (“Exhibit A”). If actual conditions and details vary from representations, the approved plans must be changed to reflect the existing site conditions and proposed project details. Any substantial changes to the approved plans must be approved by the Director of Development Services and may require approval of the City Council if the Director of Development Services finds that the proposed changes do not substantially conform to approved plans. C. The developer is required to comply with the Poway Noise Ordinance (Chapter 8.08 PMC) requirements that govern construction activity and noise levels. D. Prior to issuance of any permit or City authorization to Office of Statewide Health Planning and Development (OSHPD), the applicant shall (1) submit in writing that all conditions of approval have been read and understood; and (2) the property owner shall execute a Covenant Regarding Real Property notarizing and recording said document. In order for the City to prepare the Covenant the applicant must first submit a legal description of the subject site. E. The conditions for the project shall remain in effect for the life of the subject property, and shall run with the land and be binding upon future owners, successors, heirs, and transferees of the current property owner. F. The project shall comply with all conditions of approval and mitigation measures established under previous project entitlements unless otherwise modified or superseded by these Conditions of Approval contained herein as determined by the Director of Development Services: G. Condition K.11 in Section 6 on page 22 of Resolution No. P-05-80 is voided. H. Prior to issuance of any permit or City authorization to OSHPD approval and prior to start of work, unless other timing is indicated, the following conditions shall be complied with: (Engineering) 1. Please fill out and submit the “Stormwater Intake Form”. The form can be found on the City of Poway website: https://poway.org/963/Stormwater-Forms Resolution No. Page 8 8 of 18 January 7, 2020, Item #3.2 2. Based on the proposed impervious area shown on the current plan, this project is categorized as a Standard Development Project. Therefore, a Standard Project Storm Water Quality Management Plan (SWQMP) must be submitted. The Standard SWQMP form can be found on the City of Poway website: https://poway.org/963/Stormwater-Forms. (Planning) 3. Install five planter boxes measuring a minimum of 48-inches in width and depth east of the mobile medical units to provide screening and enhance the view of the trailers. Each planter box shall be planted with a 24-inch box tree and shrubs of a species that is acceptable to the Director of Development Services and the Fire Marshal for purpose of screening, hardiness, and lower fuel hazard. Irrigation shall be provided to the planters to the satisfaction of the Director of Development Services. 4. Landscape and irrigation plans shall be submitted and approved for the new planter boxes, trees and shrubs to be added to the site per Exhibit A, and additional landscaping to be installed after the CT and MRI mobile units have been removed. The landscape and irrigation plans shall demonstrate compliance with the City of Poway Landscape and Irrigation Design Manual, Chapter 17.41 of the PMC, and all other applicable standards in effect at the time of landscape and irrigation plan check submittal. This includes but is not limited to the submittal of an irrigation audit report, pursuant to Section 17.41.110 of the PMC, prior to final inspections/issuance of a Certificate of Occupancy. The landscape and irrigation plan submittal are a separate submittal from other project plan check submittals and is made directly to the Planning Division. Contact the Planning Division for copies of applicable City standards, the landscape and irrigation plan submittal checklist and the plan review fee worksheet. Landscape and irrigation plan review fees are required and are the responsibility of the applicant. 5. Screening of the Central Plant Area and undersides of the medical trailers shall be installed per the approved plans to the satisfaction of the Director of Development Services. 6. The metal posts on the ramp shall be painted a color to match the exterior wall color of the hospital or the color of the railings and skirting of the ramp. A note shall be placed on the construction drawings approved by OSHPD. 7. Trash enclosures that are architecturally integrated with the project’s design concept and with an architectural cover that complies with Best Management Practices (BMP) shall be provided for all trash receptables. I. The following requirements shall be adhered to upon establishment of land uses and occupancy is granted to the satisfaction of the Director of Development Services: 1. No exterior generator shall be provided for the temporary mobile medical trailers without prior City approval and the operation of the generator shall operate in compliance with City noise standards. 2. All landscaping on-site and within the adjacent public right-of-way, shall be adequately irrigated, and permanently and fully maintained by the owner at all times in accordance Resolution No. Page 9 9 of 18 January 7, 2020, Item #3.2 with the requirements of the City of Poway Landscape and Irrigation Design Manual. Trees shall be encouraged and allowed to retain a natural form. Pruning should be restricted to maintain the health of the trees and to protect the public safety. Trees should be trimmed or pruned as needed to develop strong and healthy trunk and branch systems. Tree maintenance and pruning shall be in accordance with "American National Standard for Tree Care Operations" latest edition (ANSI A300). Trees shall not be topped, and pruning shall not remove more than 25 percent of the trees' leaf surface. 3. The site shall be kept free from accumulation of discarded equipment and materials. 4. The CT mobile unit shall be removed by December 31, 2020 and replaced with landscaping and hardscape within six months to the satisfaction of the Director of Development Services. 5. The MRI mobile unit and associated covered accessible ramp shall be removed by December 31, 2025 and replaced with landscaping and hardscape within six months to the satisfaction of the Director of Development Services. The covered, accessible ramp shall also be removed at that time. 6. Slats in the fence and gates shall be replaced as needed to the required screening. 7. Gates in the screening fence and trash enclosures shall be open only as necessary for access and shall include push-to-open assemblies on either side and automatic- close mechanisms. Locked gates shall include a knox box to the satisfaction of the Fire Marshal. 8. The driveway and parking lot surface areas and signage shall be well maintained at all times, and parking spaces shall be restriped where existing striping is not clear. 9. All rooftop mechanical equipment shall be screened from view, including, but not limited to, the new power building. 10. Fall protection safety fencing shall be provided adjacent to slopes and retaining wall in accordance with PMC Title 15 11. The owner or operator of the facilities shall routinely and regularly inspect the site to ensure compliance with the standards set forth in this Permit. 12. Except for permitted construction activities, all facilities not shown on the approved plans shall be removed to the satisfaction of the Director of Development Services. SECTION 7: The approval of CUP 19-010, MCUP 19-007 and DR 19-007, shall expire January 7, 2022 at 5:00 p.m., unless construction on the property has begun in reliance on this approval has commenced prior to its expiration. SECTION 8: The parties are hereby informed that the time within which judicial review of this decision must be sought is governed by Section 1094.6 of the California Code of Civil Procedure. Resolution No. Page 10 10 of 18 January 7, 2020, Item #3.2 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 7th day of January 2020 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: ______________________________ Steve Vaus, Mayor ATTEST: ________________________________ Faviola Medina, CMC, City Clerk CO HC OS-RM RR-A RR-C RS-4 RR-C RS-7POMERADO RDMONTE VISTA RD PRIVATE RD CITY OF POWAYZoning / Location MapItem: CUP19-010/MCUP19-007/ DR19-007o 0 175 35087.5 Feet Subject Location: APN 275-461-14 11 of 18 ATTACHMENT B January 7, 2020, Item #3.2 """' N """' 00 )> � � )> (") ::I: s m z � (") " :: I II II � lrriH��::=::��-----. ___________________ ue -------------7 AAEAOFWOAK----------------------------------- ii I � I� ·, ,, ,,1\ \._ ___ _ -----) ' I I/ ft It \\ \' \' ,, \/ --�,·�:) =-----=--= ff ·--�--=-_ -------F1G) �NG SITE Rs=ERENCE PLAN SPIEGEL NANCE DESIGN ARCHITECTURE AND PLANNINC INC !PALOMAR HEALTH PALOMAR MEDICAL CENTER POWAY 15615 POMERADO ROAD POWAY, CALIFORNIA 92064 CITY OF POWAY MCUP AMENDMENT FOR TEMP MODULAR SEAVICES EXlSTlNQ SITE RS=BENCE PLAN REaSTRATIOH ISSUED/RE\1190NS DATE DRA\'IN BY 1lDH'H BIi OECXED BY UNCJIIBIIEll21111 ICN !MET QI' A-1 11 January 7, 2020, Item #3.2 l /'l_/] :� .. C: ra c.. QJ .'!:: 0.0 C: January 7, 2020, Item #3.2 ..Jo. �, ..Jo. 00 I )> --i )> () I �mz --i CJ Outd ��-. _,,,,,-, \ ' \., \! N�IICIH \ 'I../ l MllB> ro� osed Site Plan � �,<). .<'..z � � '1,,,_;;. "I.:� IO I"< 1.aTE Ol•MH, n:,: ... , n •n:>4 r:omt: ro,": ro 5111D Kriasrt :,c,-,1:11; 'T '7 f.f.;1:· r� ��,t • ••v• f';tll/) .','T,lf'o(J,{IISl'(ft_• '-J t)'lol''"•lJ<'I January 7, 2020, Item #3.2 :t c � ; I; ! I; i � § r • � s � 0 15 of 18 ..... 0 �>0 E Q) a: I,. Q) � 4 January 7, 2020, Item #3.2 ....ll. 0) 0 .... ....ll. 00 )> --i --i )> () Is:mz--i '"Tl �TING TEMPORARY TRAILERS IMAGE □[Ill ® PROPOSED TEMPORARY TRALERS WITT-i RAMP AND CANOPY ELEVA TlON -�-� -II-I• CT�■a.TMA�m•IIIMtMllftoe:a-..�PD. n,e: 181DVATIJN OF TI-a 8111'1«> Cf flJOM ,_. TI« l109'n'AL 8 Qlll9fft.Y LIC)Ellt � wn-t ca-t"O OQ9TIIIJC'TICIN -.&.. flQJ.DW�n-EMW■..._TN.:Jn-ECT1'lilil..BIC.ANIEOH r'ATBITLE. Wll'IAI.BllffM9 M �0N_TYl18M:1!.fll0fll ™f:t«-'l'TAI. AtiftYIUTE■l.NBIEACI.JTH�WfflilM!OLl'lil!tlTWBCXl'I LOCAll: A� /i#EA. .,...,lH!:EXSTNlt-«-'ITAL TtE�IICH!DU!:1"011«-tEl1CNOl'�,KJl'l,.-,TtE-lllam; • OE<:aaR Jl - W'lH OQ9TIIIJC'TICIN �"" � Jl --TNE T� .-> flMAl' •JH CNCrf kL Bl:� N flW BllflR:U c»ct: lfl: ...... ,c ■ fu.L.Y cx»aTII.CTDl '1l<J u::a::te::D 10 0f'IM f� ,-ATCHI 1.8:. ® �� MXJO..,an,A..,.-liLc.ri,c:r't' il'ICIIWA,_,......_.lOMm, lal"CllltllfWlNI.Bll.lHltial'Al CNCPtema::Nil> .. HlilCRilll la-nGMID■NJ..T...._.., -DOllC- ••a.DfW'DO,....____,.A!IIC»QlO ICIIBlilHICWl'81)0,MIC>lfflM..M -..... ,.. ..... "°" �� @=��,__.,a, SPIEGEL NANCE DESIGN ARCHITEC TURE AND PLANNING INC I PALOMAR HEALTH PALOMAR MEDICAL CENTER POWAY 15615 POMERADO ROAD POWAY, CALIFORNIA 92064 CITY OF POWAY MCUP AMENDMENT FOR TEMP MODULAR SERVICES IBAILEA IMAGES -»-l"H 9M 27 NCNB.alEA 2011 KN A-6 11 January 7, 2020, Item #3.2 _,Ji. ....... _,Ji. 0) ► --i --i ► ("') I s: m z --i G) EXISTING WASTE MANAGEMENT AREA ELEVATION ®EXISTING FACLITES / PARKING GARAGE AREA ELEVATION �:=m-=.:uc --"':m�-:..Mm�HOIPR'N.. _.,Mlil;NIIP\.NI� 'WIJll�a:;,-.ntl .. 0f1IM'IIE�� ..=--,.,----- ICJla1HIOiM&.l«rac::ea ■ 1'C MMr: M rmnG ,ocaQ �T■CIIRMLY-,.tU..a>N V#IOL91..0CA ... NIDN)n9 ............ ..._ PROPOSED WASTE MANAGEMENT AREA ELEVATION ::n.o�o;=-�..:.-----� �OPOSED FACLmES / PARKING GARAGE AREA ELEVATION •O'&Dl""IIID(hlrlr,jLNt r.n«:Nl/llD�ait.W::. =�� SPIEGEL NANCE DESIGN ARCHITEC TURE ANO PLANNING INC I PALOMAR HEALTH PALOMAR MEDICAL CENTER POWAY 15615 POMERADO ROAD POWAY, CALIFORNIA 92064 CITY OF POWAY MCUP AMENDMENT FOR TEMP MODULAR SERVICES FACUTY OPERATIONS IMAGES O•lt -��- 1RO.CCf -.0 � •oH'H BM 0A.I'( 'JJ NCMMIEA 20111 KN iHCII or A-7 11 January 7, 2020, Item #3.2 � (X) � (X) �TING VE.W FROM PARKING GARAGE RAMP ENTRY / EXrr @) EXISTING FACLrrES CONSTRUCTION TRAILER TO REMAIN �x"I.�� - ��:r�--------- l«)T£10•0t111U«.f'tiNC:aG e ne..,. MDSTICJ,w«>Q 11-.T.a,,om..TM'TNJ_IDN 'IMD,.1/jl.cx:ATDel#tlC:JUl,C)� _....,.._ PROPOSED SCREENING AT PARKING GARAGE RAMP ENTRY/ EXrT @XIST. CONEX BOXES FOR HOSPrT AL AND DISASTER STORAGE TO REMAIN SPIEGEL NANCE DESIGN ARCHITEC TURC ANO PLANNING INC PALOMAR MEDICAL CENTER POWAY 15615 POMERADO ROAD POWAY, CALIFORNIA 92064 CITY OF POWAY MCUP AMENDMENT FOR TEMP MODULAR SERVICES FACILITY OPERATIONS IMAGES "9"'•'_ .!-"-- � 8M VNCl\lB,EEA20II KN A-8 11 January 7, 2020, Item #3.2 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT January 7, 2020 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services� Scott Nespor, Associate Planner 858-668-4656, snespor@poway.org Pre-Development Conference (PDC) 19-002, A request for review of a proposal to construct a 61-room, five-story, 55-foot high, hotel in the South Poway Specific Plan Area Serendipity Hospitality LP (Proponent) is proposing to construct a 61-room, five-story, 55-foot high hotel on a vacant site at the northeast corner of Stowe Drive and Scripps Poway Parkway. The property is within the South Poway Specific Plan (SPSP) on land designated South Poway Commercial (SPC). The Proponent is requesting to modify the SPSP to allow the proposed hotel's height as the current SPSP regulations limit the height for hotels to three stories and 35 feet. The review of Pre-Development Conference (PDC) 19-002 is advisory only. The City Council will not render any decision. If the Proponent wishes to proceed with an application, it is with the understanding that the City Council has made no representation upon which the Proponent may rely. Recommended Action: It is recommended that the City Council provide input and direction regarding the request. Discussion: Serendipity Hospitality LP is proposing to construct a 39,290 square-foot, 61-room hotel on a vacant site at the northeast corner of Stowe Drive and Scripps Poway Parkway within the Poway Business Park (Business Park) on land designated SPC (Attachment A). The proposed hotel would be located on the vacant pad adjacent to the Hampton Inn & Suites. The Proponent is requesting to modify the SPSP to allow the proposed hotel's height to be up to five-stories and 55 feet high when a maximum height of 35 feet is currently permissible. Surrounding land uses consist of the Stowe Plaza commercial center with restaurants and services housed in a complex of one-story buildings to the west. A two-story corporate headquarters and warehouse building for Seirus Innovative Sportswear is to the northwest. General Atomics has facilities to the north and also to the southwest, across Scripps Poway Parkway. These buildings are two-story, light industrial buildings less than 35 feet high. Located immediately to the east is the Hampton Inn & Suites hotel, which is a three-story hotel building that does not exceed 35 feet high. The third story is allowed for hotels located on parcels with a SPC land use designation. The pad of the proposed hotel is approximately six feet above the grade of Stowe Drive. A view study will be required to determine if views from outside the Business Park are impacted. January 7, 2020, Item #4.11 of 26 Background The former Poway Redevelopment Agency (RDA) owned the 4.19-acre corner parcel at Stowe Drive and Scripps Poway Parkway. The RDA subdivided the parcel into two lots with the intention of a hotel/restaurant development. The larger 2.95-acre parcel was developed into the current Hampton Inn & Suites hotel and the subject property, a smaller 1.23-acre parcel, was identified as a potential restaurant pad. With the dissolution of the RDA, this site was eventually sold to the current owner, Serendipity Hospitality LP, through an open bid process. A hotel is allowed in the SPC land use designation with a Conditional Use Permit (CUP) approved by the City Council. A Development Review (DR) would also be required. In order to proceed with these applications, an amendment to the SPSP is required to allow a 55-foot high, five-story building. The SPSP Amendment would need to consider the visual impacts related to the taller structure. The Environmental Impact Report for the SPSP did not consider buildings of this height. Upon conclusions of a visual analysis, additional CEQA noticing and determinations will be required. The proposed hotel would be the tallest building in the Business Park. Height Limits Citywide, the height limit is two-stories or 35 feet, whichever is less, with exceptions for architectural projections such as church steeples and freestanding clock towers. Currently, the two tallest buildings in Poway are the Pomerado Hospital and the Poway Center for the Performing Arts (PCPA). The City's General Plan and Zoning Code would allow an addition to Pomerado Hospital to match the building's existing height. The PCPA is on school property and supports the educational functions of Poway High School, and therefore it is not subject to the City's height limits. On June 20, 1995, a SPSP amendment was approved to allow buildings up to 45 feet tall, subject to certain conditions. The additional height is only allowed to accommodate industrial and warehousing uses that need the additional height to accommodate enhanced features like automated warehousing, inventory retrieval or bridge cranes. Buildings allowed under this provision would still be limited to two-stories. The amendment also required that buildings over 35 feet high provide screening and architectural enhancements to mitigate the visual impact of the building. The 45-foot height allowance is not permitted along the perimeter of the Business Park where the height is still limited to 35 feet. The subject project is within the interior of the Business Park surrounded by other uses. On November 13, 2001, the SPSP was further amended to allow hotels to be three-stories, but limited to 35 feet in height. On December 17, 2002, the SPSP was again amended to allow subterranean parking under a building. The parking level would not be considered a story, but the building would still be limited to 35 feet in overall height. Other factors that affect the building height include the definition of building height, requirements for roof-top mechanical equipment screening, the EIR for the SPSP and the street side yard setback as follows: 1)The zoning definition of "building height" measures the building height from an "average grade" that averages the elevations, measured 20 feet, from each of the corners of the building (Attachment B). 2)Mechanical equipment, such as vents or air conditioning condensers, that are installed on 2 of 26 January 7, 2020, Item #4.1 the top of the roof of the building do not count toward building height. Mechanical equipment must be screened. If an enclosure wall is added to the top of a building for screening purposes it also does not count toward building height. 3)The Environmental Impact Report for the SPSP considered visual impacts from adjoining areas. The analysis considered light industrial buildings up to 35 feet, therefore additional analysis is required for taller buildings requiring an amendment to the EIR. 4)The building's height is used to determine the minimum street side yard setback. Taller buildings are setback further from the street. Development Requirements The property owner submitted the attached conceptual development package that includes a site plan, floor plans, elevations, and conceptual elevation perspective drawings (Attachment C). The hotel would feature a stepped-back fifth level to a accommodate a rooftop deck. The fifth level would contain the hotel's lounge and meeting areas. The Proponent has discussed the proposal with some major employers of the Business Park and is basing the design and amenities on these conversations as much as practical. The architectural design incorporates a mixture of exterior finishes, including high quality metal and wood siding, all of which is allowed in the SPC zone. The submitted site plan does not adequately demonstrate that the building would meet the required 50-foot setback to Scripps Poway Parkway. Additionally, the plan does not show all on site easements and an existing water main and fire hydrant that may need to be relocated to accommodate the proposed development. The parking evaluation in the application package shows that the required parking will be provided. The Fire Department indicated that their current apparatus would provide sufficient support when responding to an emergency to a structure that is 55 feet high. A water system analysis will be required to ensure that adequate water pressure would be available to the building. The applicant has submitted several letters of support for the proposal (Attachment D) and the attached project description from their architect (Attachment E). If the proponent decides to pursue this project, a SPSP amendment, DR, CUP and likely a Variance for the street-side setback would be required. These actions would be considered by the City Council at a noticed public hearing. If the City Council wishes to allow the additional height, it could be allowed for hotels only or expanded to include other land use categories. Allowing the increased building height could include imposing additional requirements related to screening, landscaping, architectural style or materials, building colors, restrictions on lighting and requirements for step backs (upper stories setback further than lower stories) on portions greater than 35 feet in height. Staff does not recommend consideration of increased building heights for buildings along the perimeter of the Business Park. The review of the Pre-Development Conference (PDC) 19-002 is advisory only. The applicant is seeking feedback on their concept for increasing the height limit for the SPC land use designation only. The City Council will not render any decision. If the Proponent wishes to proceed with an application, it is with the understanding that the City Council has made no representation upon which the Proponent may rely. The Agreement of Understanding is included as Attachment F. A neighborhood meeting, or notification of surrounding properties, was not conducted for this item, but would be required if the proponent pursues the project. 3 of 26 January 7, 2020, Item #4.1 Environmental Review: Because no action can be taken, this item is not a "Project" pursuant to the California Environmental Quality Act (CEQA) and is therefore not subject to CEQA review. Fiscal Impact: None. Public Notification: None. Attachments: A.Land Use and Location Map B.Building Height Exhibit C.Conceptual Plan Package D.Letters of Support E.Project Description F.Agreement of Understanding Reviewed/Approved By: Assistant City Manager 4 of 26 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager January 7, 2020, Item #4.1 CG 0 130 260 -- □ om- 520 Feet --- 5 of 26 IP LI Subject Property: 323-481-19------------ CITYOF POWAY Zoning I Location Map Project: PDC19-002 ATTACHMENT A January 7, 2020, Item #4.1 Excerpt from Poway Municipal Code 17 .04.170 Building height. "Building height" means the vertical distance from the average grade to the highest point of the coping of a flat roof or to the deck line of a mansard roof or to the highest point of the highest gable of a pitch or hip roof, but exclusive of vents, air conditioners, chimneys, or other such incidental appurtenances. T e,u rL-o IN ,c:; M�!G:�T (�e16HT) Wl-l� A f'., LES'"? T�AJ-J & C 14:> A CE:SLt.-A� (Ord. 738 § 2, 2012; Ord. 113 § 1 (Exh. A 1. 7(A)(32)), 1983) 6 of 26 ATTACHMENT B ,A.V��G ( Gi-/il:.AOE:;. ..:.J January 7, 2020, Item #4.1 ...... 0 I\.) a, )> � � Poway Boutique Hotel ::I:-------------------------------� SERENDIPITY HOSPITALITY z � (") STUDIO f ARC HITECTS S EPTE M 8 ER 2019 January 7, 2020, Item #4.1 00 0 I\,) a, PROJECT INFORMATION ASSESSOR'S PARCEL NUMBER: 323-481-19-000 SITE AREA: 1.23 Acre Parcel PROJECT DESCRIPTION: The project consists of one building situated at the corner of Scripps Poway Parkway and Stowe Drive The building hos 5 stories containing 61 hotel rooms with an exterior lobby terrace, rooftop lounge and dining area. LEGAL DESCRIPTION: Parcel 2' Parcel A per DOC06-913338 in Parcel 1 & In AREA SUMMARY Notes. Gross areas ore the overall areas of the building per level. Level 1 8,004 GSF Level 2 9,123 GSF Level 3 9,123 GSF Level 4 9,123 GSF Level 5 3,917 GSF Total 39,290 GSF PROJECT TEAM Owner: Architects: Serendipity Hospitality, LP Anil Patel & Hine Patel 12815 Briorcrest Place Son Diego, CA 92130 Studio E Architects 2 2 58 First Avenue Son Diego, CA 92101 PARKING DATA Per Poway Municipal Code, Chapter 17.20 PC Planned Community Zane, parking required to be 1 space per unit plus 1 space per employee. REQUIRED: 1 space/unit plus 1 space/employee PROVIDED: Ded1coced on Site Shored Total Provided Note: 64 Spaces (including 3 employees) 43 23 (od1ocent hotel agreement) 66 Spaces Parking on the two adjacent hotel parcels is documented in easements and shored access embedded in title. The entire site hos 204 total spaces of which the ad1ocent hotel has exclusive rights to 13 6 of the 159 spaces on their parcel leaving 23 spaces to flex between parcels. Their required parking including employees is 123. The two parcel total required parking is 189 leaving the collective site parked 15 spaces 1n excess of city requirements. HOTEL ROOM MIX Single Queen (Accessible) Double Queen Double Queen (Accessible) King Suite King (Accessible) Total 4 22 4 24 7 61 Project Information Poway Boutique Hotel • Poway, California VICINITY MAP STU □IO t ARC HITECTS SE PT EM 8 ER January 7, 2020, Item #4.1 CD 0 """' "" a, Site Plan <ii 0 � NU•J.1"1rw,n21 ______ - - --- - - - - - --- ----- - -- -- --- - - - - ---- - -- - --- - - --- ---7 r --�, � � � I, ! ·---. -.. : -�-u ·---T ·1-1 ·T �I-:T :;:j' I .l : ! ;I ,i 1'I ! TT _. : : I ! ; ·1 : :\ mJ . 1 , _, :: • • , :! : :1 . . Ii •: .; J 1 ! 1 u . . I. , .: , I ! l___, , '--i- l-' I I ' I 1 11 I : I ,1 r�T-.: -IC II I I'I : ;I I i 1 ;;I I ,! I ·I l ,I I ,I I ·1 : l:§; ,,_, ==·--=------.....,....-----�-.7-:-------, __ · XI .ll� i L _ --.---·, 1 _�)l� .. ; \:==-J I """'r" ,.,.,. , : I � ;\ -. ' ·. 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' I ' I ·;17 I· 1'lf, ' ! 1 1 , 1 ,: : 1 I . 1 f( I l IC '1 :· · fc � (iJ Level 1 � I' : I , ,: 11 I,. 1·. 11 1 1 ;l ,I l 111 t f · ' l ·--0-.-:O"-V-1 I I I, "I, & ' Level 0 -2' -O" South Elevation STUDIO f Poway Boutique Hotel • Poway, California ARCHllECl'.> SEPTEMBER 2 0 1 9 January 7, 2020, Item #4.1 11....L,...,11 V, C +-' C w 0) C ·-u a ::J C � o:) 0 ... +-' a 0 u +-' � U)a0 • Q) 0 A. +-' L 0 � ,._ z 0 ::z:: � E :I a-0 ,._ L :I 4-0 5 ID :a-. Q) a·-;:> 0 A. 16 of 26 January 7, 2020, Item #4.1 � ---I N en View from Southeast Corner Poway Boutique Hotel • Poway, California STUDIO f ARC HITECTS S EPTE M 8 ER 2019 January 7, 2020, Item #4.1 � 0) I',.) O') View from Southwest Poway Boutique Hotel • Poway, California STUDIO [ ARCHITECTS SEPT EM 8 ER 2 0 1 9 January 7, 2020, Item #4.1 September 30, 2019 Mr. Craig Ruiz Economic Development Coordinator City of Poway 13325 Civic Center Drive Poway, CA 92064 Dear Craig: Received OCT O 3 2019 City of Poway City Manager's Offise On behalf of the Poway Chamber of Commerce Board of Directors, I would like to express our enthusiastic support for the hotel development in the Poway Business Park proposed by Anil Patel of Serendipity Hospitality. Anil presented his plans to the Board at our September meeting and answered many questions from our Board members regarding plan specifics, potential conflicts or issues, and market opportunities. We are more than satisfied that Anil has done his research on the demand for a hotel at this location and has put a great deal of consideration into the design. We are confident that with Anil's extensive hospitality experience, Serendipity Hospitality will build a high-quality property designed to fit well with the landscape and character of the City of Poway and will meet a critical demand for hotel accommodations in the community. Sincerely, �!J Anita Edmondson te1VI Chair, Board of Directors 19 of 26 l, Poway CA 92064 ------ ATTACHMENT D 858.748.1710 I www.Poway.com January 7, 2020, Item #4.1 RYAN Chris Wood President of West Region chris.wood aryancompanies.com p: 858-812-7960 c: 858-245-8300 September 10, 2019 Mr. Craig Ruiz -(CRuiz owa .or Economic Development Administrator City of Poway 13325 Civic Center Drive Poway, CA 92064 Re: Serendipity Hospitality Boutique Hotel -14068 Stowe Drive, Poway, CA 92064 Dear Craig: As President, West Region of Ryan Companies US, Inc., and the developer and ownership representative of the Vantage Point industrial project at Scripps Poway, General Atomics Way and Kirkham Road, I am pleased to share my support for a proposed hotel project, designed specifically for Poway by developer and hotelier Anil Patel. Below are the details of the project, which he conveyed to me during our meeting. First and foremost, Poway needs an exceptional, higher-end hotel to meet the needs of our business park tenants. Many of their visitors are choosing to stay in hotels outside of Poway. The plans Anil has shared with me for a property at Scripps Poway Parkway and Stowe Drive are exciting and fit the bill for what our community needs. They present a unique aesthetic that I think will complement the business park and be oriented to the many corporate users we service. I am in support of the architectural design and size property Anil has proposed. The contemporary design is fitting for the location, and his request for a ten-foot height variance seems reasonable given the ability to offer 61 hotel rooms and a luxurious rooftop amenity providing a chance for visitors to take in the beauty of Poway's open space views, mountains via a terrific rooftop amenity deck for guests. Finally, I believe the community will benefit greatly from the new TOT tax revenue stream it will create, as well as local spending in Poway by its patrons. I gladly support the future development of this project. Sincerely, RYAN COMPANIES US, INC. {',hJ,,R_ Chris Wood President, West Region 20 of 26 January 7, 2020, Item #4.1 Techbilt Companies 3575 Kenyon St. San Diego, CA 92110 Telephone (619) 223-1663 Mr. Craig Ruiz-(cruiz@poway.org) Economic Development Coordinator City of Poway 13325 Civic Center Dr. Poway, CA 92064 RE: · Serendipity Hospitality Hotel-14068 Stowe Dr., Poway, Ca Dear Craig: Mailing Address P.O. Box 80036 San Diego, CA 92138 FAX (619) 223-2865 September 24, 2019 As President of the Techbilt Companies and one of the original developers of the South Poway Business Park, and as one of the major owners of industrial space in the business park, I wanted to support Anil Patel's proposed hotel development. Anil has shared his plans for his hotel development and I think that it will be a needed and welcome use that will bring needed additional hotel space to Poway and which will contribute significantly to the revenue that the City of Poway derives from the business park. My support extends to the architechu:al design of the proposed development including the request for a height variance to allow a 55 foot high building. The building's aesthetics will complement the surrounding properties and I can see no adverse effects from the height variance. Please contact me if you have any questions. Sincerely, Techbilt Companies Ted Tchang, President TT:tt 21 of 26 January 7, 2020, Item #4.1 + GENERAL ATOWlleS Craig Ruiz -(CRuiz@powav.org) Economic Development Administrator City of Poway 13325 Civic Center Drive Poway, CA 92064 September 27, 2019 Re: Serendipity Hospitality Boutique Hotel -14068 Stowe Drive, Poway, CA 92064 Dear Craig: I met with Anil Patel and as Sr. Manager, Real Estate, Facilities Operations & Services at General Atomics; I am pleased to share my support for a hotel project proposed for Poway by developer and hotelier Anil Patel. Below are the details of the project, which he conveyed to me during our meeting: As you know, Poway is in need of an exceptional hotel to meet the needs of our business park tenants, currently leaving the community to stay elsewhere. The plans for a property at Scripps Poway Parkway and Stowe Drive are exciting and fit the bill for what our community needs. I support the architectural design and size of property Anil has proposed. The contemporary design is fitting for the location, and his request for a ten-foot height variance seems reasonable given the ability to offer 61 hotel rooms and a rooftop amenity for guests. Because it meets the needs of corporations in the Poway Business Park and creates new tax revenue and local spending in Poway, I am pleased to support this project. Sincerely, ��2� David Sikute Sr. Manager, Real Estate Facilities Operations & Services General Atomics 14040 Danielson St, Poway, CA 92064 cc; Anil Patel, Serendipity Hospitality (avpatel01@yahoo.com) 3550 GENERAL ATOMICS COURT, SAN DIEGO, CA 92121 • 1122 PO BOX 85608, SAN DIEGO, CA 92186-5608 22 of 26 (858) 455-3000 January 7, 2020, Item #4.1 \\\ Hilton I Hil on I Patrick Speer Vice President Development, Southwest Region 5694 Mission Center Rd, Suite 602 #895 San Diego, CA 92108-4312 Tel: 310-744-9725 Cell: 310-721-5871 patrick.speer@hilton.com September 5, 2019 Serendipity Hospitality Attn: Anil Patel 3830 Valley Center Dr. #705 PMB 814 San Diego, CA 92130 RE: Hilton Portfolio of brand in Poway, CA Dear Mr. Patel: Thank you so much for exploring with me the potential of developing a Hilton portfolio brand hotel in Poway, CA. This letter is intended to serve as confirmation of Hilton's preliminary interest. Our knowledge of this market leads us to believe that there is room in the market to explore adding a Hilton Portfolio brand in Poway, CA. We understand our discussions with you are preliminary in nature, but based on the information you have shared we have a strong interest in continuing to explore this opportunity. To gain a better understanding about all the brands of Hilton Worldwide, please visit www.HiltonWorldwide.com/portfolio/. This letter is not legally binding on either party, nor is it exclusive. If within 90 days we do not have an application, this letter will be considered expired if you do not specifically request another 30 day extension. Any expenditure or obligation undertaken by either party to the execution and delivery of a franchise agreement is at the party's sole risk and expense. Should you have any questions or concerns please feel free to contact me at Patrick.speer@hilton.com or at (310)721-5871. I look forward to working with you. Sincerely, {lt"L Patrick Speer CONRI\D O>f 'Ji) Hilton n ,HIO mono ■Hilton f,.1nl,·nlnn Hlluon Cr.tnd ..catloo, 23 of 26 [HiltoriJ HONORS January 7, 2020, Item #4.1 STUDIO f ARCHITE CTS 2258 First Avenue San Diego, California 92101 T 619.235.9262 F 619.2 35.0522 September 19, 2019 Scott Nespor, Associate Planner City of Poway 13325 Civic Center Drive Poway, CA 92064 Re: Serendipity Hospitality Boutique Hotel Pre-Development Conference Request Scott: Thank you for your help in describing the process and required exhibits for a pre-development conference with the City Council regarding Serendipity Hospitality's proposed boutique hotel on Scripps Poway Parkway at Stowe Drive. This letter outlines our proposed concept and communicates our reasons for needing early review from the City Council. PROJECT PROPOSAL Anil Patel, a local developer, acquired this parcel from the city in 2018 and desires to build a 61-room boutique hotel to serve the South Poway business community and the city as a whole. The parcel is directly adjacent to and shares access and parking with the existing Hampton Inn and Suites. Mr. Patel's vision is to create a small destination hotel that appeals to the myriad of business interests in the South Poway area that have limited accommodation opportunities within city limits for their visitors and staff. Many of the tenants in the business park have a national presence and bring staff from around the country on a routine basis. In discussions with these companies, Mr. Patel has found that there is a desire for a facility to appeal to younger staff and for a more urbane experience. Many of these visitors are leaving the city to stay remotely to get this experience which is a lost opportunity for the City of Poway. The hotel will feature small gathering and meeting spaces in addition to the rooms but there will not be a restaurant included. Breakfast service is envisioned for guests of the hotel as a component of their stay. Because the site has a small footprint but more than adequate parking, Mr. Patel is seeking to increase the room yield. ISSUES FOR DISCUSSION WITH THE CITY COUNCIL The project adheres to all of the city's zoning and planning criteria with one exception. Mr. Patel is seeking a height waiver to allow for a fourth floor in an area where three are normally allowed. We believe that this is the perfect place with the city for such a variance for the following reasons: •The site is completely remote from the city center and residential areas. The site can only be viewed from within the South Poway business areas and presents no impacts to the city's character and scale. •The site is surrounded by large parcels and very large development with large breaks between developments and buildings. There are no issues of scale transitions. The adjacent hotel, which is the closest structure to this site, is more than 100' away and the remainder of the site is adjacent to wide streets. •The site sits back from two large parkway streets with very broad setbacks with mature trees. These setbacks and mature trees make a perfect visual transition for a slightly taller structure. •The fourth floor will allow for more visibility to the surrounding community in what is a small footprint structure. Additionally, the fourth floor opens long vistas from the top floor where the primary lounge and gathering space 24 of 26 ATTACHMENT E January 7, 2020, Item #4.1 for the hotel is located. ■ The circumstances of this request are narrowly drawn and highly specific meaning that a height deviation would not necessarily undermine the prevailing rationale for the height limit in general nor would it open up the possibility for many more such requests in the future. We would like to be scheduled for a pre-development conference at the earliest convenience of the City Council's schedule. We intend to present the contents of the submitted drawing package and supplement with additional information to fully communicate the project vision and its story. With the direction received, we intend to submit for a CUP as soon as possible to start the entitlements process. Please let me know if you have any questions or have any comments on our request or package. Sincerely, Eric Naslund, FAIA, Principal Studio E Architects 25 of 26 January 7, 2020, Item #4.1 AGREEMENT OF UNDERSTANDING City Council for the City of Poway, hereinafter referred to as "City" and Serendipity Hospitality L.P., hereinafter referred to as "Proponent" enter into this Agreement of Understanding based upon the following facts: Proponent owns or has an equitable interest in land described by tax Assessor's Parcel Number(s) 3234811900. Proponent desires to develop this property in accordance with the will of the City and without the expense of a protracted development. City is concerned that Proponent will create development plans unsatisfactory to City and consume time and effort of City employees needlessly on unsatisfactory development plans unless City assists in directing Proponent. Based upon the above mentioned facts, City will grant Proponent a hearing prior to filing any application for development upon the following understanding: a.City will render no decision with regards to any development proposal or part thereof. b.City will receive no evidence, specific in nature, in support of a particular development plan. c.City will make no representations that will obligate the City to render a decision in favor of or against any development proposal or part thereof Proponent may subsequently submit. d.If any development proposal is subsequently submitted, Proponent will proceed at its sole and exclusive risk with the understanding that City has made no representations upon which Proponent may rely. Dated: December 6, 2019 Proponent: Signature 26 of 26 ATTACHMENT F January 7, 2020, Item #4.1 DATE: TO: FROM: CONTACT: SUBJECT: Summary: City of Poway COUNCIL AGENDA REPORT January 7, 2020 Honorable Mayor and Members of the City Council Aaron Beanan, Director of Finance ks Aaron Beanan, Director of Finance (858)668-4411 or abeanan@poway.org Set Public Hearing for New Rate Structures and Proposed Two-Year Water, Recycled Water, and Wastewater Rates Two public workshops held on October 15, 2019 and November 19, 2019 presented multiple rate design options for consideration by the City Council and public input. The goals of these workshops were to help ensure the City has rate structures that comply with the law, ensure each rate payer class is paying their proportionate share of the water and wastewater costs, and ensure financial sustainability of both the water and wastewater enterprise funds. After comments by the public and City Council discussion over the course of these two workshops, the City Council selected the rate structures associated with water Option 2b and wastewater Option 2c. This staff report recommends setting the public hearing date on March 3, 2020 for these proposed rate structures along with the proposed two-year rate increases for water, recycled water, and wastewater rates. The focus of this staff report will be the drivers of the proposed rate increases since the previous two workshops focused on the proposed rate structures. Recommended Action: It is recommended that the City Council direct staff to set the public hearing for March 3, 2020 and proceed with the Proposition 218 process which includes mailing the notice of public hearing to ratepayers (Attachment A) pursuant to law. Discussion: During the City Council discussion at the January 8, 2019 Water and Sewer Rate workshop, the Council expressed interest in conducting a new water and sewer rate study prior to the 2020 rate setting process, as it had been many years since a Cost of Service Study had been conducted. Some of the goals of the study were to ensure financial sustainability and compliance with the law. During the discussion the City Council also indicated the consultant and staff should evaluate different rate structures and how they impact different classes of rate payers. It was very important to Council that multiple rate designs were presented along with the associated impacts to ratepayers so that each potential option's impacts were easily understood. Since one of the goals of the workshops was to provide several different rate structures and information about how each structure impacts rate payers, multiple options were presented in the October 15, 2019 staff report. A total of nine different rate design options were presented for water along with four different rate design options for wastewater. 1 of 83 January 7, 2020, Item #4.2 2 of 83 January 7, 2020, Item #4.2 At the October 15, 2019 workshop, after comments by the public and City Council discussion, the City Council: 1. Selected two options each for water and wastewater for further discussion, a. Water Option 2b and 2c b. Wastewater Option 2b and 2c 2. Directed staff to adjust the proposed reserve levels from 180-days of operating expenditures to 120-days, and 3. Directed staff to provide rate payers with a bill estimator tool for the four options being considered at the second workshop. At the November 19, 2019 workshop, after comments by the public and City Council discussion, the City Council: 1. Selected W ater Option 2b, a. Three-tier structure with a fixed/variable ratio of 20%/80% 2. Selected W astewater Option 2c, and a. Fixed plus variable structure with a fixed/variable ratio of 30%/70% 3. Directed staff to explore increasing the water fixed/variable ratio over time. As a result, Raftelis Financial Consultants, Inc. (RFC), the consultant hired to conduct the comprehensive cost of service study, prepared a Water and Wastewater Cost of Service and Rate Study Report (Attachment B) summarizing the key findings and recommendations related to the proposed rate structures, financial plans, and water and wastewater rates. Since the first two workshops focused on the proposed rate structures and financial plans, this staff report will focus on the proposed water and wastewater rates and what is driving the recommended two-year revenue increases. A two-year rate setting process strikes a balance between flexibility and efficiency. A two-year period is short enough to allow rate changes if future projections are different than anticipated while also reducing the administrative costs of adopting new rates. Additionally, staff recommends slowly adjusting the water fixed/variable ratio during each two- year rate setting process, beginning with the rates that will be brought to Council for consideration in the Fall of 2021. Proposed Water Rates Two-year revenue increases of 4.5% in March 2020 and 4.5% in January 2021 are being proposed for water to cover the increasing costs of providing safe, reliable water on demand to rate payers. The first-year revenue increases will impact rate payer classes differently as a result of the cost of service study (COSS) and proposed rate structure changes. During a COSS, costs are allocated to rate payer classes based on their current proportional use of the system. This rebalancing of customer classes impacts on the system means there will be uneven impacts to rates the first year. Subsequent years’ revenue increases will uniformly impact rate payer classes. The increases are necessary to fund the costs of imported water, capital expenses, operational expenses, and appropriate reserve levels. One of the largest factors driving the proposed revenue increases is imported water costs. San Diego County has a semi-arid climate. Before 1947, the San Diego region relied on rainfall and groundwater to meets its water needs (San Diego County W ater Authority “SDCWA”, Urban Water Management Plan 2010). As the economy and population grew, local water resources became insufficient to meet the region’s water supply needs and required imported water from hundreds of miles away to support the growth. Much of the region’s water is imported from northern California near San Francisco and Sacramento (i.e. the Bay-Delta). Importing water is very energy intensive. Over-time, the cost to transport this water increases as 3 of 83 January 7, 2020, Item #4.2 factors like energy prices increase. Investment by SDCWA into regional water supply and infrastructure projects to reduce reliance on imported water and mitigate the effects of natural disasters, such as earthquakes, is also expensive. For example, SDCWA’s investment into the Claude “Bud” Lewis Desalination Plant cost close to $1B, but it gave the region a new drought- proof, locally controlled supply of water. Imported water represents 60% of water operating costs. When imported water costs increase, this impacts the City of Poway’s water rates. SDCWA untreated water rates increased 4.8%. SDCWA used reserves to temper this increase, otherwise it would have been greater. Their rate increase was driven by Metropolitan Water District’s (one of SDCWA water suppliers) untreated water rate increase of 3.3% and the Quantification Settlement Agreement (QSA) increase of 6.4%. The QSA is a long-term water supply reliability project that secured a major water supply source for San Diego County through the Imperial Irrigation District water transfer. The next largest factor driving the proposed revenue increases is rate-funded capital improvement projects. Rate-funded capital is paid for via rates or reserves; no debt is currently used to fund capital projects. The City of Poway’s water system includes over a $100M in infrastructure necessary to provide associated services. This infrastructure includes water assets to transport water from the San Diego County Water Authority’s (SDCWA) system to the city’s system, assets to treat the water to safe drinking levels, and assets to deliver safe, reliable water on demand to each rate payer’s property. The following are some facts about the water system: • 294 miles of transmission and distribution pipelines • 5,044 water valves, 21 pressure reducing stations and 14 pump stations (designed to raise water to higher elevations) • 19 reservoirs (Lake Poway holds ~one billion gallons of water) • One 24 million gallon/day water treatment plant, • 2,435 fire hydrants • Approximately 45,000 tests to ensure Poway water meets or exceeds the State and Federal standards for water quality Rate-funded capital is currently proposed at approximately $12M over the next 5 years, or slightly more than $2M per year on average. While not a significant rate driver, it is important to highlight that one-time salary range adjustments are built into the proposed water rate increases. These are not cost of living adjustments. Salary and benefit changes approved for both the Management/Confidential and non-safety Teamsters employees did not include cost of living adjustments. Rather, they included one-time stipends in Fiscal Years 2019-20 and 2020-21 as a result of the General Fund’s financial outlook. However, one-time salary range adjustments are being proposed due to attraction and retention challenges specifically within utilities job classifications. In Fiscal Years 2017-18 and 2018-19 there were 58 vacancies in regular positions across the City, of which 22 (almost half) were in the Public Works Department, with 10 in utilities specifically. Further, the turnover rates during these two fiscal years for positions represented by the Teamsters bargaining unit were the highest out of the city’s bargaining groups at 19.40%. To understand this data, Human Resources conducted an analysis of the market with specific focus on the utility positions. Based on this analysis, it was determined certain pay grades for utility positions are well below the market. This disparity is believed to be the most significant reason for the recruitment and retention challenges the City is experiencing in those positions. As such, salary range adjustments are needed to bring the positions as close to median as possible. This will help improve the attraction and retention of the highly specialized positions needed to ensure the safety and reliability of the water system. The approximate annual cost to bring 24 positions close to median is $205K. Given there are approximately 13,900 water customers, and assuming a perfectly even distribution, that equates to roughly $2.50 per rate payer bi-monthly. 4 of 83 January 7, 2020, Item #4.2 The chart below shows the impacts of the first year’s revenue increase across various water usage levels. Proposed Wastewater Rates Two-year revenue increases of 6.3% in March 2020 and 6.3% in January 2021 are being proposed for wastewater to cover the increasing costs of providing safe, reliable wastewater services to rate payers. Like water, the impacts in the first year will be uneven as a result of the COSS process. The increases are necessary to fund the costs of wastewater treatment, capital expenses, and operational expenses. These proposed rate increases reflect the use of reserves to temper the impacts to rate payers. Funds to cover Poway’s estimated share of the San Diego Pure Water project were set aside as part of a strategic financial management decision to help mitigate the impacts to rate payers and is more fully discussed below. The most significant rate driver driving the proposed revenue increases is wastewater treatment costs. Wastewater treatment represents 44% of all operating expenses. When wastewater treatment costs increase, this impacts the City of Poway’s wastewater rates. The largest factor increasing wastewater treatment costs is the San Diego Pure Water project. San Diego’s Pure Water project is a multi-year project that is projected to supply one-third of San Diego’s water supply locally by 2035. Based on projections from April 2019, Poway’s estimated share of the project is over $4M annually for the next five years. However, several years ago staff began incorporating these costs into rates as part of a long-range financial management strategy to mitigate the impacts of this project to ratepayers. Funds collected have been set aside in reserves. As such, a combination of reserve draws and rate increases will be used over the coming years to temper the impacts to ratepayers. Additionally, a wastewater treatment plant is designed to treat certain types of waste. Lastly, as people dispose of pharmaceuticals, food waste, cooking oil, industrial chemicals, etc. down the wastewater system, the treatment process gets extended which increases costs. The next largest factor driving the proposed revenue increases is rate-funded capital improvement projects. Rate-funded capital is paid for via rates or reserves; no debt is currently used to fund capital projects. The City of Poway’s wastewater system includes over a $100M in infrastructure necessary to provide associated services. Rate funded capital is also being proactively invested 5 of 83 January 7, 2020, Item #4.2 in the rehabilitation and repair of the wastewater infrastructure to ensure Poway continues to provide safe, reliable, and affordable wastewater services. Rate-funded capital is paid for via rates or reserves; no debt is currently used to fund capital projects. Wastewater infrastructure includes infrastructure to transport wastewater from the city to various treatment plants within the County of San Diego in a safe and reliable manner including over 186 miles of wastewater pipes, five lift stations (designed to raise wastewater material to a higher elevation), and over 4,000 maintenance covers. Rate-funded capital is currently proposed at approximately $5M over the next 5 years, or slightly more than $1M per year on average. While not a significant rate driver, it is important to highlight that special salary range adjustments are built into the proposed wastewater rate increases similar to water. The approximate annual cost to bring 11 positions close to median is $145K. Given there are approximately 12,100 water customers, and assuming a perfectly even distribution, that equates to roughly $2 per rate payer bi-monthly. The following chart shows the impacts of the first year’s revenue increase across various wastewater generation levels. Timeline This workshop represents the third step in a proposed two-year rate setting process. The following graphic shows the proposed timeline for the first two-year cycle. Workshop 1: Oct. 15, 2019 Workshop 2: Nov. 19, 2019 Set Public Hearing: Jan. 7, 2020 Mail 218 Notice: By Jan. 17, 2020 Public Hearing: Mar. 3, 2020 Year 1 Rates Effective: Mar. 3, 2020 Year 2 Rates Effective: Jan. 1, 2021 Mail 218 Notice By Jan. 17, 2020 Environmental Review: This project is exempt from the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15273(a): modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies. Fiscal Impact: There is no direct fiscal impact associated with this staff report because it only sets the public hearing. However, based on the information contained in this staff report, sufficient revenues to fund operations, investment in capital infrastructure, and appropriate reserve levels will be generated from the recommended water and wastewater revenue increases. Over the next two-year period, it is estimated approximately $2M in additional water revenues will be generated while approximately $900K in additional wastewater revenues will be generated if the proposed rates are adopted at the public hearing. Safe reliable water delivered on demand to an average residential rate payer costs less than nine tenths of one penny per gallon. Treating the average residential rate payer's wastewater in a safe and reliable fashion also costs less than nine-tenths of one penny per gallon. Public Notification: The California Constitution, Article XIIID, Section 6, states that local governments must hold a Majority-Protest Public Hearing and notify property owners at least 45 days in advance of the public hearing related to proposed water, recycled water, and wastewater rates. The notice (Attachment A) will be mailed at least 45 days prior to the public hearing, or on or before January 17, 2020. The public hearing will take place as follows: Attachments: Tuesday, March 3, 2020 at 7:00 pm City of Poway City Hall 13325 Civic Center Drive Poway, CA 92064 A.Notice of Public Hearing B.City of Poway Water and Wastewater Cost of Service and Rate Study Report Reviewed/Approved By: wend Kaserman Assistant City Manager 6 of 83 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch� City Manager January 7, 2020, Item #4.2 Proposed Rate Change Protests As part of the rate setting process, on March 3, 2020, the City of Poway will conduct a public hearing on the proposed changes to water and wastewater rates and will consider all oral and written protests to the proposed changes. Oral comments at the public hearing will not qualify as formal protests unless accompanied by a written protest. Only one written protest will be counted per identified parcel. While email is not an official rate protest mechanism under California law, the City Council values resident input and will read all email correspondence regarding rates. Written protests must include: • A description of the property, such as the address or assessor’s parcel number; and • The name and signature of the customer submitting the protest. The City Council will receive a final tabulation of all written protests received by the City Clerk. Written protests must be received by the City Clerk’s office no later than 12 p.m. March 3, 2020, or can be submitted in writing in the Council Chambers before the public hearing is closed. If a majority of the affected customers do not file written protests of the proposed rate changes, the Council will then consider and may adopt the rate changes described in this notice. If a majority of affected customers file written protests, the City Council will not adopt the proposed rate adjustments and the City will reconsider the rate structure and rates. Why are you receiving this notice?The City of Poway is mailing this notice to you because you are a water and/or wastewater customer responsible for payment of water and/or wastewater fees, or you are the owner of record for a property that receives water and/or wastewater service. This notice describes proposed adjustments to water and wastewater rates, rate structure changes, and provides notice of the upcoming public hearing at which these proposed changes will be considered by the Poway City Council. The City is committed to providing the highest quality water and wastewater services at the lowest possible rates. To keep this commitment, each year the City evaluates its infrastructure needs and operations and maintenance costs for the next year. Based on this evaluation, rate adjustments are proposed for 2020. The rate adjustments being considered will become effective March 2020 for all bills mailed on or after May 1, 2020, and January 2021 for all bills mailed on or after March 1, 2021. Notice of Public Hearing Proposed Water and Wastewater Rates Tuesday, March 3 @ 7 p.m. Poway City Council Chambers Please send written protests to: City Clerk of the City of Poway PO Box 789 Poway, CA 92074-0789 NOTICE OF PUBLIC HEARING PROPOSED WATER AND WASTEWATER RATES DATE Tuesday, March 3, 2020 at 7 p.m. LOCATION City Council Chambers 13325 Civic Center Dr. Poway, CA On Tuesday, March 3 at 7 p.m. the Poway City Council will consider adopting proposed changes to water and wastewater charges. The rate adjustments being considered will become effective March 2020 for all bills mailed on or after May 1, 2020. The City bills for water and wastewater service bimonthly (every two months) based on consumption during the two months prior to the billing date. 7 of 83 January 7, 2020, Item #4.2ATTACHMENT A Proposed Changes to Water and Wastewater RatesThe City of Poway provides safe, reliable water on demand to its customers and purchases nearly 100 percent of its water from the San Diego County Water Authority (SDCWA). The cost to purchase and treat imported water continues to increase. The City proactively plans for increases in these costs, along with costs associated with operations, maintenance, and replacement of infrastructure along with maintaining appropriate reserves. To accommodate these increases, the City is proposing adjustments in potable water rates over the next two years.The City of Poway maintains a wastewater system that provides customers with wastewater collection and conveyance services to the San Diego Metropolitan Wastewater System (Metro) where the wastewater is treated at the Point Loma Wastewater Treatment Plant and then discharged into the ocean. The City proactively plans for increases in costs associated with operations, maintenance, and replacement of infrastructure along with maintaining appropriate reserves. The City also pays a percentage share of the operation, maintenance, and capital replacement costs of the Metro system. To accommodate these increases in costs, adjustments in wastewater rates over the next two years are being proposed.A two-year rate setting process strikes a balance between flexibility and efficiency. A two-year period is short enough to allow rate changes if future projections are different than anticipated while also reducing the administrative costs of adopting new rates. The rate evaluation for both water and wastewater services has been underway since January 2019, with City Council workshops held in October and November to receive public input. How are your rates calculated? To cover the costs of purchasing imported water, treating and distributing it, the city is proposing rate changes. All water rates are allocated among customer classes (e.g., residential, non-residential) based on their proportionate use of the system. There are two components: the fixed charge based on the size of the meter and the variable charge based on the volume of water used. The proposed rates include increasing the fixed/variable ratio from 16% fixed/84% variable to 20%/80% to support the financial sustainability of the system. The proposed rates include moving to a three-tiered rate structure (versus the current two-tiered structure) for residential customers to more accurately recoup costs based on water usage. The usage charge is a flat per unit rate instead of a tiered rate for non- residential customers based on their usage patterns. To cover the costs of collecting, conveying, and treating wastewater, the city is proposing rate changes. All wastewater rates are allocated amongst customer classes based on their proportionate use of the system. The proposed rates include moving to a “fixed plus variable” rate structure similar to water. Since residential customers impact the wastewater system differently than non-residential customers, rates are approached differently. For residential customers the variable rate is tied to their winter water usage (when most water is used indoors: wastewater out generally matches water in). For non-residential customers, it is based on water usage. The proposed rates also include increasing the fixed/variable ratio from 20% fixed/80% variable to 30%/70% to support the financial sustainability of the system. To cover the costs of purchasing imported recycled water and distributing it, the city is proposing rate changes. The recycled water rate will no longer be a percentage of non-residential water rates; rather, it will be based on the costs associated with the recycled water service. For additional information on how your rates have been calculated, please refer to the staff report on January 7, 2020 titled “Set Public Hearing for New Rate Structures and Proposed Two-Year Water, Recycled Water, and Wastewater Rates.” 8 of 83 January 7, 2020, Item #4.2 CURRENT AND PROPOSED WATER RATES CURRENT AND PROPOSED WASTEWATER RATES Bi-Monthly Water Meter Service Charges METER SIZE CURRENT 3/4/2020 1/1/2021 5/8" 42.28 41.14 43.00 3/4" and 1" fire 42.28 55.62 58.13 1" 70.47 84.58 88.39 1 1/2" 140.90 156.96 164.03 2" 225.44 243.82 254.80 3" 422.72 518.89 542.25 4" 704.52 924.25 965.85 6" 1,409.05 1,894.22 1,979.46 8" 2,254.46 3,486.72 3,643.63 Bi-Monthly Wastewater Service Charges METER SIZE CURRENT 3/4/2020 1/1/2021 Single Family Residential (Residential wastewater flow based on 85% of lowest winter water use averaged over the past three years.) Flat 21.34 N/A N/A Non-residential, Multi-family, Mobile Home 5/8" 28.16 N/A N/A 3/4" 28.16 N/A N/A 1" 38.23 N/A N/A 1 1/2" 63.44 N/A N/A 2" 93.69 N/A N/A 3" 174.35 N/A N/A 4" 265.07 N/A N/A 6" 617.97 N/A N/A 8" 819.62 N/A N/A Customer Class All Customer Classes (Except Schools) N/A 26.63 28.31 Bi-Monthly Commodity Rates ($/Unit Wastewater) CUSTOMER CLASS CURRENT 3/4/2020 1/1/2021 Single Family Residential Tier 1: 0-5 Units 29.54 N/A N/A Tier 2: 6-12 Units 52.12 N/A N/A Tier 3: 13-19 Units 78.45 N/A N/A Tier 4: 20-26 Units 85.99 N/A N/A Tier 5: 27-37 Units 101.04 N/A N/A Tier 6: 38-50 Units 116.09 N/A N/A Tier 7: 51+ Units 127.39 N/A N/A Single Family Residential N/A 4.38 4.66 Multi-family & Mobile Home 4.02 5.50 5.85 Non-Residential General Commercial 4.02 4.74 5.04 Medium-low 4.60 5.31 5.65 Medium-low 5.35 5.96 6.34 Medium-high 6.85 6.09 6.48 High 8.15 8.39 8.92 Light Industry 4.22 5.16 5.49 Industrial Special User 4.02 5.20 5.53 Government & Membership Organizations 4.02 3.89 4.14 Churches 4.02 4.74 5.04 Elementary School (ADA) 4.02 4.80 5.11 Secondary & High School (ADA) 4.02 4.76 5.06 Bi-Monthly Water Commodity Charges ($/Unit) CUSTOMER CLASS CURRENT 3/4/2020 1/1/2021 Single Family Residential Tier 1: 1-199 Units 5.36 N/A N/A Tier 2: 200+ Units 7.65 N/A N/A Tier 1: 1-20 Units N/A 4.59 4.80 Tier 2: 21-56 Units N/A 5.35 5.60 Tier 3: 56+ Units N/A 7.45 7.79 Multi-family Residential 5.47 4.69 4.91 Landscape Irrigation 5.47 6.52 6.82 Non-residential 5.47 4.99 5.22 Recycled Water 4.92 4.06 4.25 City Potable Usage 2.36 4.99 5.22 Wastewater Rate Notes: Any water rates or fees associated with water service, including raw water, not addressed within this notice shall remain in full force and effect as previously adopted by the Poway City Council. Multi-family and mobile home customers' wastewater flow is calculated based on 75% of bimonthly water use for accounts without a landscape meter and 85% of bimonthly water use for accounts with a landscape meter. Non-residential customers' wastewater flow is calculated based on 75%, 85% or 90% of bimonthly water use depending on customer class. Wastewater flow for schools is estimated based on the average flow per student per day using 75% or 85% of the water use from the March/April billing period. 1 unit = 748 gallons 9 of 83 January 7, 2020, Item #4.2 PO Box 789Poway, California 92074-0789www.poway.org DATED MATERIAL - DO NOT DELAY DELIVERY Important information about your WATER and WASTEWATER account! Facts about Poway’s Water and Wastewater System Poway imports nearly 100% of its water through the San Diego County Water Authority (SDCWA). The City’s water system includes: • 294 miles of transmission and distribution pipelines • 5,044 water valves, 21 pressure reducing stations and 14 pump stations (designed to raise water to higher elevations) • 19 reservoirs (Lake Poway holds ~one billion gallons of water) • One 24 million gallon/day water treatment plant • 2,435 fire hydrants • Approximately 45,000 tests to ensure Poway water meets or exceeds the State and Federal standards for water quality. Poway contracts with the City of San Diego (Metro) for wastewater treatment and disposal. The City’s wastewater infrastructure transports wastewater to various treatment plants within the County of San Diego in a safe and reliable manner. It includes: • 186 miles of wastewater pipes • 5 lift stations (designed to raise wastewater material to a higher elevation) • More than 4,000 maintenance covers. The cost to provide water service in Poway is about $27.7 million per year. Wastewater service costs are approximately $11.3 million per year. Over half of the City’s water and wastewater expenditures are pass-through costs (raw water, wastewater treatment), which the City cannot control. If you have questions regarding this notice, please call our Finance Department at (858) 668-4411. 10 of 83 January 7, 2020, Item #4.2 Water and Wastewater Cost of Service and Rate Study Report Final Report /December 12, 2019 CITY OF POWAY 24640 Jefferson Avenue, Suite 207 Murrieta, CA 92562 www.raftelis.com December 12, 2019 Aaron Beanan Director of Finance City of Poway 13325 Civic Center Drive Poway, CA 92064 Subject: Water and Wastewater Cost of Service and Rate Study Dear Mr. Beanan, Raftelis is pleased to provide this Water and Wastewater Cost of Service and Rate Study Report (Report)for the City of Poway (City).The overall goal of the study was to develop updated water and wastewater rates for the City for the next five fiscal years (FYE 2020-FYE 2024) that are fair and equitable and in compliance with Proposition 218 requirements. The major objectives of the study include the following: 1.Develop five-year financial plans for the water and wastewater enterprises through FYE 2024 that sufficiently funds the City’s operating costs,debt obligations,prudent reserves,and necessary capital expenditures 2.Review and revise as necessary the current water and wastewater rate structure 3.Perform a cost of service analysis to equitably allocate costs across customers classes 4.Propose equitable water rates for FYE 2020 to FYE 2024 This Report summarizes the key findings and recommendations related to the development of the financial plans and proposed water and wastewater rates. It has been a pleasure working with you and we thank you ,Ms. Jessica Parks,and other City staff for the support provided during this study. Sincerely, Sudhir Pardiwala Lauren Demine Executive Vice President Consultant CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT i Table of Contents 1.EXECUTIVE SUMMAR Y ............................................................1 SYSTEM OVERVIEW .............................................................................1 METHODOLOGY ....................................................................................1 1.2.1.Water Utility ................................................................................................................1 1.2.2.Wastewater Utility ......................................................................................................2 PROPOSED FINANCIAL PLANS ...........................................................2 1.3.1.Water Utility Financial Plan .......................................................................................2 1.3.2.Wastewater Utility Financial Plan .............................................................................5 PROPOSED RATES ...............................................................................7 1.4.1.Proposed Water Rates ...............................................................................................7 1.4.2.Proposed wasteWater Rates .....................................................................................8 2.STUDY BACKGROUND ............................................................9 SYSTEM OVERVIEW .............................................................................9 LEGAL FRAMEWORK ...........................................................................9 RATE-SETTING METHODOLOGY .......................................................10 3.KEY ASSUMPTIONS ...............................................................12 4.WATER RATE STUDY .............................................................14 WATER UTILITY FINANCIAL PLAN ....................................................14 4.1.1.Existing Rate Structure and Rates ..........................................................................14 4.1.2.Account and Usage Projections .............................................................................15 4.1.3.Revenues ..................................................................................................................16 4.1.4.O&M Expenses .........................................................................................................17 4.1.5.Capital Improvement Plan .......................................................................................18 4.1.6.Recommended Reserve Policies ............................................................................18 4.1.7.Status Quo Financial Plan .......................................................................................19 4.1.8.Proposed Financial Plan ..........................................................................................21 COST OF SERVICE ANALYSIS ...........................................................24 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT ii 4.2.1.Cost of Service Methodology ..................................................................................24 4.2.2.Revenue Requirement..............................................................................................24 4.2.3.Functionalization and Allocation of Expenses ......................................................25 4.2.4.Peaking Factors ........................................................................................................26 4.2.5.Allocation of Costs ...................................................................................................27 4.2.6.Units of Service ........................................................................................................33 4.2.7.Allocation of Revenue Requirements to Cost Causation Components ...............34 4.2.8.Distribution of Cost Causation Components .........................................................36 WATER RATE DEVELOPMENT...........................................................37 4.3.1.Derivation of Proposed Bimonthly Fixed Charge ..................................................37 4.3.2.Revisions to Tier Definitions ...................................................................................38 4.3.3.Derivation of Proposed Commodity Rates .............................................................38 4.3.4.Proposed Water Rate Schedule ..............................................................................40 BILL IMPACTS .....................................................................................40 5.WASTEWATER RATE STUDY ................................................42 WASTEWATER UTILITY FINANCIAL PLAN .......................................42 5.1.1.Existing Rate Structure and Rates ..........................................................................42 5.1.2.Account and Usage Projections .............................................................................43 5.1.3.Revenues ..................................................................................................................44 5.1.4.O&M Expenses .........................................................................................................45 5.1.5.Capital Improvement Plan .......................................................................................45 5.1.6.Recommended Reserve Policies ............................................................................46 5.1.7.Status Quo Financial Plan .......................................................................................47 5.1.8.Proposed Financial Plan ..........................................................................................48 WASTEWATER COST OF SERVICE ANALYSIS ................................52 5.2.1.Cost of Service Methodology ..................................................................................52 5.2.2.Revenue Requirement..............................................................................................52 5.2.3.Mass Balance ............................................................................................................53 5.2.4.Functionalization and Allocation of Expenses ......................................................54 5.2.5.Allocation of Costs ...................................................................................................55 5.2.6.Units of Service ........................................................................................................57 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT iii 5.2.7.Allocation of Revenue Requirements to Cost Causation Components ...............57 5.2.8.Distribution of Cost Causation Components .........................................................59 WASTEWATER RATE DEVELOPMENT ..............................................60 5.3.1.Derivation of Proposed Bimonthly Fixed Charge ..................................................60 5.3.2.Revisions to Commodity Rates ...............................................................................60 5.3.3.Derivation of Proposed Commodity Rates .............................................................61 5.3.4.Proposed WasteWater Rate Schedule ....................................................................62 BILL IMPACTS .....................................................................................63 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT iv List of Tables Table 1-1: FYE 2020-2024 Proposed Water Bimonthly Meter Service Charges ..........................................7 Table 1-2: FYE 2020-2024 Proposed Water Commodity Rates ($/ccf)1 ........................................................8 Table 1-3: FYE 2020-2024 Proposed Wastewater Charges ............................................................................8 Table 3-1: Water Key Inflationary Factors .....................................................................................................12 Table 3-2: Water Key Revenue Assumptions ................................................................................................12 Table 3-3: Wastewater Key Inflationary Factors ...........................................................................................13 Table 3-4: Wastewater Key Revenue Assumptions ......................................................................................13 Table 4-1: Existing Bimonthly Water Meter Service Charges......................................................................14 Table 4-2: Existing Bimonthly Water Commodity Rates ($/ccf)..................................................................14 Table 4-3: Potable and Recycled Water Meters1 ...........................................................................................15 Table 4-4: Potable and Recycled Water Use by Class (ccf).........................................................................16 Table 4-5: Projected Operating Revenues Under Existing Water Rates ....................................................17 Table 4-6: Water Projected Other Revenues .................................................................................................17 Table 4-7: Water Revenue Summary ..............................................................................................................17 Table 4-8: Water Operating Expenditures Summary ....................................................................................18 Table 4-9: Water Capital Improvement Plan ..................................................................................................18 Table 4-10: Water Proposed Reserve Targets...............................................................................................19 Table 4-11: Water Financial Plan under Current Rates ................................................................................20 Table 4-12: Water Projected Fund Balances Under Current Rates.............................................................20 Table 4-13: Water Proposed Revenue Adjustments .....................................................................................21 Table 4-14: Water Proposed Financial Plan ..................................................................................................21 Table 4-15: Water Projected Fund Balances Under Proposed Rates .........................................................22 Table 4-16: Water Revenue Requirement ......................................................................................................25 Table 4-17: System Peaking Factors ..............................................................................................................26 Table 4-18: Customer Class Peaking Factors ...............................................................................................27 Table 4-19: Functionalized O&M Cost Distributions to Cost Causation Factors ......................................28 Table 4-20: Water O&M Cost Allocations.......................................................................................................29 Table 4-21: Functionalized Capital Cost Distributions to Cost Causation Factors ..................................30 Table 4-22: Water Capital Cost Allocations ...................................................................................................31 Table 4-23: Water Cost Allocation Distribution Summary ...........................................................................32 Table 4-24: Potable Water Equivalent Meters1 ..............................................................................................33 Table 4-25: Recycled Water Equivalent Meters.............................................................................................33 Table 4-26: Derivation of Cost Causation Component Units of Service ....................................................34 Table 4-27: Water Unit Cost Calculation ........................................................................................................35 Table 4-28: Allocation of Costs to Customer Classes .................................................................................36 Table 4-29: Derivation of the Bimonthly Fixed Charges ..............................................................................37 Table 4-30: Revised Single-Family Residential Tier Definitions .................................................................38 Table 4-31: Peaking Unit Cost by Class and Tier..........................................................................................38 Table 4-32: Recycled Water Commodity Rate Calculation ..........................................................................39 Table 4-33: Derivation of the Commodity Rates ($/ccf)...............................................................................39 Table 4-34:FYE 2020-2024 Proposed Water Bimonthly Meter Service Charges ......................................40 Table 4-35: FYE 2020-2024 Proposed Water Commodity Rates .................................................................40 Table 5-1: Existing Bimonthly Wastewater Service Charges ......................................................................42 Table 5-2: Existing Bimonthly Commodity Rates ($/ccf wastewater).........................................................43 Table 5-3: Wastewater Accounts ....................................................................................................................43 Table 5-4: Accounts per Tier and Billed Wastewater Flow by Class (ccf).................................................44 Table 5-5: Projected Operating Revenues Under Existing Wastewater Rates ..........................................44 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT v Table 5-6: Projected Other Wastewater Revenues .......................................................................................45 Table 5-7: Wastewater Revenue Summary ....................................................................................................45 Table 5-8: Wastewater Operating Expenditures Summary ..........................................................................45 Table 5-9: Wastewater Capital Improvement Plan ........................................................................................46 Table 5-10: Wastewater Proposed Reserve Targets.....................................................................................47 Table 5-11: Wastewater Financial Plan under Current Rates ......................................................................47 Table 5-12: Wastewater Projected Fund Balances Under Current Rates ..................................................48 Table 5-13: Wastewater Proposed Revenue Adjustments...........................................................................48 Table 5-14: Wastewater Proposed Financial Plan ........................................................................................49 Table 5-15: Wastewater Projected Fund Balances Under Proposed Rates ...............................................49 Table 5-16: Wastewater Revenue Requirement ............................................................................................53 Table 5-17: Mass Balance Analysis ................................................................................................................54 Table 5-18: Wastewater O&M Cost Allocations ............................................................................................55 Table 5-19: Wastewater Capital Cost Allocations .........................................................................................56 Table 5-20: Wastewater Cost Allocation Distribution Summary .................................................................56 Table 5-21: Wastewater Customer Class Data ..............................................................................................57 Table 5-22: Wastewater Unit Cost Calculation ..............................................................................................58 Table 5-23: Allocation of Costs to Customer Classes .................................................................................59 Table 5-24: Derivation of the Wastewater Bimonthly Fixed Charge ...........................................................60 Table 5-25: Derivation of the Wastewater Commodity Rates ($/ccf)..........................................................61 Table 5-26: FYE 2020-2024 Proposed Bimonthly Wastewater Charges .....................................................62 List of Figures Figure 1-1: Water Revenue Adjustments and Debt Coverage .......................................................................3 Figure 1-2: Water Operating Financial Plan at Proposed Rates ...................................................................3 Figure 1-3: Proposed Water Capital Improvement Plan and Funding Sources ..........................................4 Figure 1-4: Water Projected Ending Balances at Proposed Rates ...............................................................4 Figure 1-5: Wastewater Revenue Adjustments and Debt Coverage.............................................................5 Figure 1-6: Wastewater Operating Financial Plan ..........................................................................................6 Figure 1-7: Wastewater Capital Replacement Plan and Funding Sources ..................................................6 Figure 1-8: Wastewater Projected Ending Balances ......................................................................................7 Figure 4-1: Water Operating Financial Plan at Proposed Rates .................................................................22 Figure 4-2: Proposed Water Capital Improvement Plan and Funding Source ..........................................23 Figure 4-3: Water Projected Ending Balances at Proposed Rates .............................................................23 Figure 4-4: Single-Family Residential Water Bill Impact Analysis ..............................................................41 Figure 4-5: Non-Residential Water Bill Impact Analysis ..............................................................................41 Figure 5-1: Wastewater Operating Financial Plan at Proposed Rates .......................................................50 Figure 5-2:Proposed Wastewater Capital Improvement Plan and Funding Source ................................50 Figure 5-3: Projected Ending Wastewater Reserves at Projected Rates ...................................................51 Figure 5-4: Single-Family Residential Wastewater Bill Impact Analysis ...................................................63 Figure 5-5: Non-Residential Wastewater Bill Impact Analysis ....................................................................63 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT vi This page intentionally left blank to facilitate two-sided printing. 1 CITY OF POWAY 1.Executive Summary System Overview The City of Poway provides potable water, recycled water, and sewer service to a population of over 50,200. The majority of water customers receive sewer service and recycled water is provided to approximately 200 customers primarily located in the South Poway Business Park. The City currently imports all of its potable water as raw water from the San Diego County Water Authority (SDCWA) and treats the water in its own treatment plant. The City also provides wastewater collection service and transports the wastewater to the San Diego Metropolitan Wastewater System (METRO) for treatment and disposal. Recycled water is purchased from the City of San Diego. The City currently charges potable water customers a fixed bimonthly meter charge and a volumetric rate based on customer class. Single-family residential customers pay based on a two -tier rate structure based on units of consumption. All other customers pay a uniform volumetric rate. Recycled water customers pay based on the same rate structure, with the volumetric rates set at 90 percent of the potable water rates. Single -family residential sewer customers pay a uniform bimonthly fixed service charge and a seven -tiered volumetric charge based on the customer’s winter water usage. All other customers pay a fixed bimonthly service charge based on meter size and a uniform flow charge. The City engaged Raftelis in 2019 to conduct a comprehensive cost of service water and wastewater rate study to establish proposed water and wastewater rates for fiscal years ending (FYE)2020 to FYE 2024.The primary project objectives of the study include: 1.Develop five-year financial plans for the water and wastewater enterprises through FYE 2024 that generate sufficient revenues to fund the City’s operating costs, debt obligations,prudent reserves,and necessary capital expenditures 2.Review and revise as necessary the current water and wastewater rate structure 3.Perform a cost of service analysis to equitably alloca te costs across customers classes in compliance with Proposition 218 4.Propose equitable water and wastewater rates for FYE 2020 to FYE 2024 A FYE is defined as beginning on July 1 and ending on June 30;for example,FYE 2020 begins July 1, 2018 and ends June 30. 2020. Methodology 1.2.1.WATER UTILITY The water rates presented in this report were developed using cost of service principles set forth by the American Water Works Association M1 Manual titled Principles of Water Rates, Fees and Charges (AWWA M1 Manual).Cost of service principles endeavor to distribute costs to customer classes in accordance with the way each class uses the water system.This methodology is described in detail in Sections 4.2 and 5.2.The Base-Extra Capacity Method of the AWWA M1 Manual was used to distribute costs to customer classes and tiers.This method separates costs into four main components: (1) base costs, (2) extra capacity costs, (3) customer costs, and (4) fire protection costs.Base costs are costs associated with meeting average daily demand needs and include operations and maintenance costs and capital costs designed to meet average load conditions. Extra capacity costs are costs (both operating and capital costs) associated with meeting peak demand.Customer costs are associated with serving customers, such as CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 2 meter reading, billing and customer service, etc.Fire protection costs are related solely to the fire protection function of a water system, such as fire hydrants, private fire connections,and related mains and valves. 1.2.2.WASTEWATER UTILITY The wastewater rates presented in this report were developed using cost of service principles set forth in the Water Environment Federation (WEF) Manual of Practice No. 27,Financing and Charges for Wastewater Systems, 2018.To calculate fair and equitable rates so that users pay in proportion to the cost of providing service,Raftelis allocated the total revenue requirements to wastewater flow,chemical oxygen demand (COD),and total suspended solids (TSS) consistent with the previously identified WEF/industry guidelines .Since wastewater flow or volumes are not directly measured for each customer, wastewater flows and loadings (flow, COD,and TSS)are estimated for each customer class through a plant balance analysis,which is used to estimate and validate the wastewater loadings (flow , COD, and TSS) generated by each customer class. Proposed Financial Plan s 1.3.1.WATER UTILITY FINANCIAL PLAN To determine the revenue requirements needed to fund the City’s ongoing expenses, Raftelis projected the O&M costs, capital improvement costs,and reserve requirements for the study period between FYE 2020 to FYE 2024. O&M expenses include salaries and benefits, materials, services, supplies, utilities,water purchases,and general administrative costs. The City plans to spend approximately $12.4M on capital expenditures from FYE 2020 to FYE 2024. Reserve targets are provided for prudent fiscal management and described in detail in Sections 4.1.6 and 5.1.6 for water and wastewater, respectively.The minimum operating reserve is 90 days of operating expenses and the target is 120 days of operating expenses.The capital reserve target is five-year average capital expense. Figure 1-1 through Figure 1-4 display the Water Utility Financial Plan in graphical format.Figure 1-1 shows the proposed revenue adjustments (dark blue bars)of 4.5% and 5.25%for the next five years on the left axis.The rate models are based on each revenue adjustment going into effect in March of the corresponding fiscal year;however, the City will implement the first increase in March of 2020 and subsequent increases in January of each fiscal year. Although the graph shows anticipated revenue adjustments for the entire study peri od, the City will review and confirm the necessary revenue adjustments each year. The right axis of the graph shows the calculated and requir ed coverage ratios for the City. Over the five-year planning period, the City does not anticipate issuing any debt for the water utility. 3 CITY OF POWAY Figure 1-1:Water Revenue Adjustments and Debt Coverage Figure 1-2 graphically illustrates the water financial plan,comparing existing and proposed revenues (solid and dashed black lines,respectively)with projected expenses (bars). The expenses are represented by stacked bars to indicate each expense type’s share of total expenses.The net cash flow is shown in yellow. Figure 1-2:Water Operating Financial Plan at Proposed Rates CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 4 Figure 1-3 shows the total amount of the water capital projects are funded by rates/reserves as shown by the dark blue bars. The total estimated water CIP for the study period of FYE 2020 to FYE 2024 is $12.4M. Figure 1-3:Proposed Water Capital Improvement Plan and Funding Sources Figure 1-4 shows the City’s water operating and capital reserve ending balances for each fiscal year after operating and capital costs are funded. As shown, the City will draw down its reserves in FYE 2020 and FYE 2023 to cover capital costs but will meet its minimum reserve targets beginning in FYE 2021 (indicated by the dashed blue line). Figure 1-4:Water Projected Ending Balances at Proposed Rates 5 CITY OF POWAY 1.3.2.WASTEW ATER UTILITY FINANCI AL PLAN To determine the revenue requirements needed to fund the City’s ongoing expenses, Raftelis projected the O&M costs, capital improvement costs, and reserve requirements for the study period between FYE 2020 to FYE 2024. O&M expenses include salaries and benefits, materials, services, supplies, utilities, wastewater treatment, and general administrative costs. The City plans to spend approximately $5.1M on capital expenditures from FYE 2020 to FYE 2024. Figure 1-5 through Figure 1-8 display the Wastewater Utility Financial Plan in graphical format.Figure 1-5 shows the proposed revenue adjustments (dark blue bars)of 6.3% each year for the next five years on the left axis.The rate models are based on each revenue adjustment going into effect in March of the corresponding fiscal year; however, the City will implement the first increase in March of 2020 and subs equent increases in January of each fiscal year. Although the graph shows anticipated revenue adjustments for the entire study period, the City will review and confirm the necessary revenue adjustments each year. The right axis of the graph shows the calcu lated and required coverage ratios for the City. Over the five-year planning period, the City does not anticipate issuing any debt for the wastewater utility. Figure 1-5: Wastewater Revenue Adjustments and Debt Coverage Figure 1-6 graphically illustrates the wastewater financial plan,comparing existing and proposed revenues (solid and dashed gray lines, respectively)with projected expenses (bars). The expenses are represented by stacked bars to indicate each expense type’s share of total expenses.The net cash flow is shown in yellow. CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 6 Figure 1-6: Wastewater Operating Financial Plan Figure 1-7 shows the total cost of the wastewater capital projects and their funding sources. The total estimated water CIP for the study period of FYE 2020 to FYE 2024 is $5M.As shown by the dark blue bars, the City plans to fund its capital projects through rates. Figure 1-7: Wastewater Capital Replacement Plan and Funding Sources 7 CITY OF POWAY Figure 1-8 shows the City’s wastewater operating and capital reserve ending balances for each fiscal year after operating and capital costs are funded. As shown, the City will draw down its reserves through the study period to cover operating and capital costs but will still exceed its reserve targets as indicated by the solid green line.The targets are defined the same as for the water utility. Figure 1-8: Wastewater Projected Ending Balances Proposed Rates 1.4.1.PROPOSED WATER RATES The proposed cost of service potable and non-potable rates effective, March 1, 2020 are shown below.The rates for subsequent years are increased by the revenue adjustments in Figure 1-1 to arrive at the 5-year rate schedules shown in Table 1-1 and Table 1-2. Table 1-1:FYE 2020-2024 Proposed Water Bimonthly Meter Service Charges Meter Size Current Charge March 2020 March 2021 March 2022 March 2023 March 2024 5/8"$42.28 $41.14 $43.00 $45.26 $47.64 $50.15 3/4"$42.28 $55.62 $58.13 $61.19 $64.41 $67.80 1"$70.47 $84.58 $88.39 $93.04 $97.93 $103.08 1 1/2"$140.90 $156.96 $164.03 $172.65 $181.72 $191.27 2"$225.44 $243.82 $254.80 $268.18 $282.26 $297.08 3"$422.72 $518.89 $542.25 $570.72 $600.69 $632.23 4"$704.52 $924.25 $965.85 $1,016.56 $1,069.93 $1,126.11 6"$1,409.05 $1,894.22 $1,979.46 $2,083.39 $2,192.77 $2,307.90 8"$2,254.46 $3,486.72 $3,643.63 $3,834.93 $4,036.27 $4,248.18 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 8 Table 1-2:FYE 2020-2024 Proposed Water Commodity Rates ($/ccf)1 1.The current rate structure is two-tiered with the first tier at 199 ccf bimonthly.The current rate for Tier 2 is $7.65/ccf 1.4.2.PROPOSED WASTEWATER RATES The proposed cost of service wastewater rates effective March 1, 2020 are shown below.Rates for subsequent years are increased by the revenue adjustments in Figure 1-5 to arrive at the 5-year rate schedules shown in Table 1-3. Table 1-3: FYE 2020-2024 Proposed Wastewater Charges Customer Class Bimonthly Tiers (ccf) Current Rate March 2020 March 2021 March 2022 March 2023 March 2024 Single Family Residential Tier 1 20 $5.36 $4.59 $4.80 $5.06 $5.33 $5.61 Tier 2 56 $5.36 $5.35 $5.60 $5.90 $6.21 $6.54 Tier 3 56+$5.36 $7.45 $7.79 $8.20 $8.64 $9.10 Multi-Family Residential $5.47 $4.69 $4.91 $5.17 $5.45 $5.74 Landscape Irrigation $5.47 $6.52 $6.82 $7.18 $7.56 $7.96 Non-Residential $5.47 $4.99 $5.22 $5.50 $5.79 $6.10 City Potable Usage $2.36 $4.99 $5.22 $5.50 $5.79 $6.10 Recycled Water $4.92 $4.06 $4.25 $4.48 $4.72 $4.97 Customer Class Current Charge March 2020 March 2021 March 2022 March 2023 March 2024 Bi-Monthly Fixed Charge All Customer Classes Varies by Meter Size $26.63 $28.31 $30.10 $32.00 $34.02 Commodity Rate per ccf of Wastewater Residential Single Family Residence $5.79 $4.38 $4.66 $4.96 $5.28 $5.62 Multi-Family & Mobile home $4.02 $5.50 $5.85 $6.22 $6.62 $7.04 Non-Residential General Commercial $4.02 $4.74 $5.04 $5.36 $5.70 $6.06 Medium-Low $4.60 $5.31 $5.65 $6.01 $6.39 $6.80 Medium $5.35 $5.96 $6.34 $6.74 $7.17 $7.63 Medium-High $6.85 $6.09 $6.48 $6.89 $7.33 $7.80 High $8.15 $8.39 $8.92 $9.49 $10.09 $10.73 Light Industry $4.22 $5.16 $5.49 $5.84 $6.21 $6.61 Industrial Special User $4.02 $5.20 $5.53 $5.88 $6.26 $6.66 Government & Membership Organizations $4.02 $3.89 $4.14 $4.41 $4.69 $4.99 Churches $4.02 $4.74 $5.04 $5.36 $5.70 $6.06 Elementary School (ADA)$4.02 $4.80 $5.11 $5.44 $5.79 $6.16 Secondary & High School (ADA)$4.02 $4.76 $5.06 $5.38 $5.72 $6.09 9 CITY OF POWAY 2.Study Background System Overview The City of Poway provides potable water, recycled water, and sewer service to a population of over 50,200. The majority of water customers receive sewer service and recycled water is provided to approximately 200 customers primarily located in the South Poway Business Park. The City currently imports all of its potable water as raw water from the San Diego County Water Authority (SDCWA) and treats the water in its own treatment plant. The City also provides wastewater collection service and transports the wastewater to the San Diego Metropolitan Wastewater System (METRO) for treatment and disposal. Recycled water is purchased from the City of San Diego. The City currently charges potable water customers a fixed bimonthly meter charge and a volumetric rate based on customer class. Single-family residential customers pay based on a two -tier rate structure based on units of consumption. All other customers pay a uniform volumetric rate. Recycled wate r customers pay based on the same rate structure, with the volumetric rates set at 90 percent of the potable water rates. Single-family residential sewer customers pay a uniform bimonthly fixed service charge and a seven -tiered volumetric charge based on the customer’s winter water usage. All other customers pay a fixed bimonthly service charge based on meter size and a uniform flow charge. The City engaged Raftelis in 2019 to conduct a comprehensive cost of service water and wastewater rate study to propose water and wastewater rates for FYE 2020 to FYE 2024. The primary project objectives of the study include: 1.Develop five-year financial plans for the water and wastewater enterprises through FYE 2024 that generates sufficient revenues to fund the City’s operating costs, debt obligations,prudent reserves,and necessary capital expenditures 2.Review and revise as necessary the current water and wastewater rate structure 3.Perform a cost of service analysis to equitably allocate costs across customers classes in compliance with Proposition 218 4.Propose equitable water rates for FYE 2020 to FYE 2024 Legal Framework California Constitution -Article XIII D, Section 6 (Proposition 218) Proposition 218, reflected in the California Constitution as Article XIII D,was enacted in 1996 to ensure that rates and fees are reasonable and proportional to the cost of providing service.The principal requirements, as they relate to public water service are as follows: 1.A property-related charge (such as water rates) imposed by a public agency on a parcel shall not exceed the costs required to provide the property related service. CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 10 2.Revenues derived by the charge shall not be used for any purpose other than that for which the charge was imposed. 3.The amount of the charge imposed upon any parcel shall not exceed the proportional cost of service attributable to the parcel. 4.No charge may be imposed for a service unless that service is actually used or immediately available to the owner of property. 5.A written notice of the proposed charge shall be mailed to the record owner of each parcel at least 45 days prior to the public hearing, when the agency considers all written protests against the charge. As stated in the American Water Works Association’s (AWWA) Principles of Water Rate s, Fees, and Charges: Manual of Water Supply Practices M1 Sixth Edition (M1 Manual), “water rates and charges should be recovered from classes of customers in proportion to the cost of serving those customers.” Raftelis follows industry standard rate setting methodologies set forth by the AWWA M1 Manual to ensure this study meets Proposition 218 requirements and establishes rates that do not exceed the proportionate cost of providing water services. The methodology in the M1 Manual is a nationally recognize d industry ratemaking standard which courts have recognized as consistent with Proposition 218. California Constitution Article X, Section 2 California Constitution Article X, Section 2 mandates that water resources be put to beneficial use and that the waste or unreasonable use of water be prevented through conservation. Section 106 of the Water Code declares that the highest priority use of water is for domestic purposes, with irrigation secondary. Thus, management of water resources is part of the property-related service provided by public water suppliers to ensure the resource is available over time. The City currently has inclining tiered (also known as inclining block) water rates to incentivize customers to conserve water. The inclining tier rates must be based on the proportionate costs incurred to provide water to customers to achieve compliance with Proposition 218. “Inclining” tier rate structures (which are synonymous with “increasing” tier rate structures and “tiered” rates), when properly designed, allow a water utility to send conservation price signals to customers. Due to heightened interest in water conservation and efficiency of water use, tiered water rates have gained widespread use, especially in relatively water -scarce regions like Southern California. Tiered rates meet the requirements of Proposition 218 as long as they reasonably reflect the proportionate cost of providing service for each tier. Rate-Setting Methodology This rate study was conducted using industry -standard principles outlined by the AWWA M1 Manual and the WEF Manual of Practice No. 27. The process and approach Raftelis utilized in the study to determine water and wastewater rates is informed by the City’s policy objectives, the current water and wastewater system and rates, and the legal requirements in California (namely, Proposition 218). The resulting financial plan s, cost of service analysis, and rate design process take all factors into consideration and follow five key steps, outlined below, to determine proposed rates that fulfill the City’s objectives, meet industry standards, and comply with relevant regulations. 1.Financial Plan:The first study step is to develop multi-year financial plans that projects the water and wastewater utilities revenues, expenses,capital project financing, annual debt service, and reserve funding. The financial plans are used to determine the revenue adjustment, which allows the utility to recover adequate revenues to fund expenses and reserves. 2.Revenue Requirement Determination:After completing the financial plan, the rate -making process begins with the determination of the revenue requirement for the test year, also known as the rate-setting year. 11 CITY OF POWAY The test year for this study is FYE 2020. The revenue requirement should sufficiently fund the utilities operations and maintenance (O&M) costs, annual debt service, capital improvement plan (CIP) costs, and reserve funding as projected based on the utilities FYE 2020 budget. 3.Cost of Service Analysis:The annual cost of providing water or wastewater service, or the revenue requirement, is then distributed to customer classes commensurate with their use of and burden on the water or wastewater system. A cost of service analysis involves the following steps: a. Functionalize costs –the different components of the revenue requirement are categorized into functions such as supply, transmission and distribution (T&D),collection , treatment,customer service and billing, etc. b. Allocate to cost causation components –the functionalized costs are then allocated to cost causation components such as supply, base delivery, peaking, etc.for water and flow and strength characterized by chemical oxygen demand and total suspended solids for wastewater. c. Develop unit costs –unit costs for each cost causation component are determined using units of service, such as total usage, peaking units, equivalent meters, number of customers,total wastewater loadings,etc. for each component. d.Distribute cost components –the cost components are allocated to each customer class and tier using the unit costs in proportion to their demand and burden on the system. 4.Rate Design:After allocating the revenue requirement to each customer class, the rate design and calculation process can begin. Rates do more than simply recover costs; within the legal framework and industry standards, properly designed rates should support and optimize the City’s policy objectives. Rates also act as a public information tool in communicating these policy objectives to custo mers.This process also includes a rate impact analysis and sample customer bill impacts. 5.Administrative Record Preparation and Rate Adoption:The final step in a rate study is to develop the administrative record or report in conjunction with the rate adoption process. The administrative record documents the study results and presents the methodologies, rationale, justifications, and calculations used to determine the proposed rates. A thorough and methodological administrative record serves two important functions: maintaining defensibility in a stringent legal environment and communicating the rate adoption process to customers and important stakeholders. CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 12 3.Key Assumptions The Study uses the City’s FYE 2020 budget as the base year and the model projects the City’s revenue requirements through FYE 2030; however, the proposed water and wastewater rates herein are for FYE 2020 through FYE 2024.The City will continue to periodically review rates and take a measured approach with any potential rate adjustments.Certain cost escalation assumptions and inputs were incorporated into the Study to adequately model expected future costs of the City expenses. These assumptions were based on discussions with and/or direction from City staff and are presented in Table 3-1 through Table 3-4. Most of the inflationary factors are self-explanatory, the demand factor for potable and recycled water represent the change in water consumption per account.The assumption is that there is no change in the consumption per account and the only change in use will result from any growth in accounts. Table 3-1: Water Key Inflationary Factors Table 3-2: Water Key Revenue Assumptions Inflationary Factors FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 General 3.0%3.0%3.0%3.0%3.0% Salary 5.0%5.0%3.0%3.0%3.0% Benefits 10.0%10.0%10.0%10.0%10.0% General Utilities 3.0%3.0%3.0%3.0%3.0% Power 5.0%5.0%5.0%5.0%5.0% SDCWA Water Purchases 0.0%6.0%6.0%6.0%6.0% Recycled Water Purchases 6.0%6.0%6.0%6.0%6.0% Capital 5.0%5.0%5.0%3.2%3.2% FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Account Growth Single Family Residential 0.0%0.5%0.5%0.5%0.5% Multi-Family Residential 0.0%0.0%0.0%0.0%0.0% Landscape Irrigation 0.0%0.0%0.0%0.0%0.0% Non-Residential 0.0%0.0%0.0%0.0%0.0% Recycled 0.0%0.0%0.0%0.0%0.0% Demand Factor Potable 100.0%100.0%100.0%100.0%100.0% Recycled 100.0%100.0%100.0%100.0%100.0% Revenue Escalation Factors Non-Inflated 0.0%0.0%0.0%0.0%0.0% Non-Rate Revenues 0.0%0.0%0.0%0.0%0.0% Interest Income 1.0%1.0%1.0%1.0%1.0% 13 CITY OF POWAY Table 3-3: Wastewater Key Inflationary Factors Table 3-4: Wastewater Key Revenue Assumptions FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Account Growth Single Family Residential 0.0%0.5%0.5%0.5%0.5% Multi-Family Residential 0.0%0.0%0.0%0.0%0.0% Non-Residential 0.0%0.0%0.0%0.0%0.0% Revenue Escalation Factors Non-Inflated 0.0%0.0%0.0%0.0%0.0% Non-Rate Revenues 0.0%0.0%0.0%0.0%0.0% Interest Income 1.0%1.0%1.0%1.0%1.0% Inflationary Factors FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 General 3.0%3.0%3.0%3.0%3.0% Salary 5.0%5.0%3.0%3.0%3.0% Benefits 10.0%10.0%10.0%10.0%10.0% General Utilities 3.0%3.0%3.0%3.0%3.0% Power 5.0%5.0%5.0%5.0%5.0% Capital 4.1%4.1%4.1%4.1%4.1% CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 14 4.Water Rate Study Water Utility Financial Plan This section details the development of the five-year financial plan for City’s water utility. This includes the determination of annual revenues required from potable water and recycled water rates based on annual cash flow projections. Assumptions and inputs related to projected revenues, operating expenses,and capital expenditures are clearly outlined in the following subsections. 4.1.1.EXISTING RATE STRUCTURE AND RATES The City bills every two months (bimonthly), resulting in six total bills per year for each customer.The City’s current rates went into effect on March 1, 2019.The existing rate structure for potable and recycled water consists of a bimonthly fixed service charge based on meter size.The City’s existing bimonthly service charges are shown below in Table 4-1. Table 4-1:Existing Bimonthly Water Meter Service Charges Additionally, customers pay a commodity rate by customer class on all wate r consumption. These rates are shown in Table 4-2.Single-Family Residential customers pay a two-tiered rate based on consumption at each tier level. All other customers pay a uniform rate per hundred cubic feet (ccf)of water consumed.Please note that the Potable and Recycled rates for City use are for calendar year (CY)2019. Table 4-2:Existing Bimonthly Water Commodity Rates ($/ccf) Meter Size CY 2019 5/8"$42.28 3/4"$42.28 1"$70.47 1 1/2"$140.90 2"$225.44 3"$422.72 4"$704.52 6"$1,409.05 8"$2,254.46 Customer Class Tier Width (ccf)CY 2019 Single Family Residential Tier 1 0-199 ccf $5.36 Tier 2 >200 ccf $7.65 Multi-Family Residential Uniform $5.47 Landscape Irrigation Uniform $5.47 Non-Residential Uniform $5.47 Recycled Water Uniform $4.92 Potable Rate City Use Uniform $2.36 Recycled Rate City Use Uniform $1.73 15 CITY OF POWAY 4.1.2.ACCOUNT AND USAGE PROJECTIONS Table 4-3 shows the estimated number of water accounts by meter size for FYE 2019 through FYE 2024.The projections are based on account data provided by the City for FYE 2018. The number of accounts are used to forecast the amount of fixed revenue the City will receive from the bimonthly meter service charges. Table 4-3: Potable and Recycled Water Meters1 1 The number of accounts for the ¾” Potable Water meters includes 1” residential fire accounts. Table 4-4 projects the potable and recycled water consumption by class for the study period based on FYE 2018 usage data. Meter Size FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Potable Water Meters 5/8"0 0 0 0 0 0 3/4"12,120 12,120 12,182 12,244 12,306 12,368 1"959 959 962 966 969 973 1 1/2"306 306 306 306 306 307 2"285 285 285 285 285 285 3"19 19 19 19 19 19 4"5 5 5 5 5 5 6"2 2 2 2 2 2 8"2 2 2 2 2 2 Total Potable Water Meters 13,698 13,698 13,764 13,829 13,895 13,961 Recycled Water Meters 5/8"0 0 0 0 0 0 3/4"3 3 3 3 3 3 1"100 100 100 100 100 100 1 1/2"57 57 57 57 57 57 2"48 48 48 48 48 48 3"0 0 0 0 0 0 4"0 0 0 0 0 0 6"0 0 0 0 0 0 8"0 0 0 0 0 0 Total Recycled Water Meters 208 208 208 208 208 208 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 16 Table 4-4: Potable and Recycled Water Use by Class (ccf) 4.1.3.REVENUES The City’s water revenues consist of operating revenues (i.e. water rate revenues), other oper ating revenues, and non-operating revenues. Projected water rate revenues under existing rates are calculated for the years FYE 2020 to FYE 2024 by multiplying current rates (Table 4-1and Table 4-2)by the corresponding units of service (Table 4-3 and Table 4-4).1 Projecting water rate revenues under existing rates is necessary to evaluate the City’s projected baseline financial position in the absence of any proposed rate increases.Note that for City Potable and Recycled use,operating revenues for FYE 2019 were calculated based on CY 2018 rates for 6 months and CY 2019 rates for 6 months. This is because these rates were each in effect for half of FYE 2019.2 1 Fixed charge revenues = [number of meters assessed] x [monthly rate] x [ 6 billing periods]. Volumetric charge revenues = [annual usage in CCF] x [volumetric rate per CCF]. 2 The City’s fiscal year is from July 1 through June 30. For example, fiscal ye ar 2019 spanned from July 1, 2018 through June 30, 2019. Customer Class FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Single Family Residential Block 1 2,595,033 2,595,033 2,608,515 2,621,997 2,635,479 2,648,961 Block 2 173,190 173,190 174,090 174,990 175,889 176,789 Multi-Family Residential 188,531 188,531 188,531 188,531 188,531 188,531 Landscape Irrigation 75,421 75,421 75,421 75,421 75,421 75,421 Non-Residential 728,397 728,397 728,397 728,397 728,397 728,397 Agricultural 12,304 12,304 12,304 12,304 12,304 12,304 City Potable Usage 96,327 96,327 96,327 96,327 96,327 96,327 Total Potable Usage 3,869,203 3,869,203 3,883,585 3,897,967 3,912,348 3,926,730 Total Potable Usage (AF)8,882 8,882 8,915 8,949 8,982 9,015 Recycled Water 250,833 250,833 250,833 250,833 250,833 250,833 City Recycled Usage 260 260 260 260 260 260 Total Recycled Usage 251,093 251,093 251,093 251,093 251,093 251,093 Total Recycled Usage (AF)576 576 576 576 576 576 17 CITY OF POWAY Table 4-5:Projected Operating Revenues Under Existing Water Rates Table 4-6 shows a summary of other revenues.Revenues from the sale of raw water to a golf course were projected beyond FYE 2020 assuming 174 acre-feet per year (AFY) in sales. The majority of other operating and non- operating revenues were held constant beyond FYE 2020. Table 4-6:Water Projected Other Revenues Table 4-7 shows a revenue summary for the study period based on revenues shown previously in Table 4-5 and Table 4-6. Once again, operating revenues shown in this section reflect projected water rate revenues under existing rates in the absence of any rate increases over the study period. Table 4-7:Water Revenue Summary 4.1.4.O&M EXPENSES The City’s operations and maintenance (O&M) expenses, shown in Table 4-8,are based on the FYE 2020 City budget and projected out through FYE 2024. The City’s projected purchased water and recycled water expenses were calculated over the study period based on the projected water supply and anticipated supply rates from SDCWA and the City of San Diego.All other O&M expenses were projected beyond FYE 2020 by increasing FYE 2020 budgeted expenses using the inflationary factors discussed in Table 3-1. Operating Revenues FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Bimonthly Service Charges Potable Water $4,040,446 $4,237,569 $4,255,005 $4,272,441 $4,289,877 $4,307,313 Recycled Water $148,893 $156,158 $156,158 $156,158 $156,158 $156,158 Commodity Rates Single Family Residential $14,750,313 $15,234,280 $15,313,427 $15,392,575 $15,471,722 $15,550,869 Multi-Family Residential $997,781 $1,031,265 $1,031,265 $1,031,265 $1,031,265 $1,031,265 Landscape Irrigation $399,158 $412,553 $412,553 $412,553 $412,553 $412,553 Non-Residential $3,854,968 $3,984,332 $3,984,332 $3,984,332 $3,984,332 $3,984,332 Agricultural $53,242 $55,245 $55,245 $55,245 $55,245 $55,245 City Potable Use $224,277 $227,549 $227,549 $227,549 $227,549 $227,549 Drought Surcharge $0 $0 $0 $0 $0 $0 Recycled $1,194,758 $1,234,851 $1,234,851 $1,234,851 $1,234,851 $1,234,851 City Recycled Use $451 $451 $451 $451 $451 $451 Total $25,664,287 $26,574,252 $26,670,835 $26,767,418 $26,864,001 $26,960,584 Other Revenue FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Fees $116,760 $118,730 $118,730 $118,730 $118,730 $118,730 Other $81,100 $0 $0 $0 $0 $0 Miscellaneous $14,790 $14,790 $14,790 $14,790 $14,790 $14,790 Raw Water Sales - Contract $252,679 $262,736 $278,185 $294,552 $311,891 $330,260 Total $465,329 $396,256 $411,705 $428,072 $445,411 $463,780 Revenues FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Operating Revenues $25,664,287 $26,574,252 $26,670,835 $26,767,418 $26,864,001 $26,960,584 Other Revenues $465,329 $396,256 $411,705 $428,072 $445,411 $463,780 Total $26,129,615 $26,970,508 $27,082,540 $27,195,490 $27,309,412 $27,424,364 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 18 Table 4-8:Water Operating Expenditures Summary 4.1.5.CAPITAL IMPROVEMENT PLAN The City has developed a capital improvement plan (CIP) to address ongoing water system needs in each year throughout the study period. Detailed CIP expenditures in each year are shown at the individual project level in Table 4-9.Inflated project costs in all years throughout the study period were provided by City staff. Table 4-9:Water Capital Improvement Plan 4.1.6.RECOMMENDED RESERVE POLICIES To enhance financial management transparency and financial risk management, Raftelis recommends the Water Utility to maintain the following reserves. The following sections describe our recommendations in detail for each reserve. Operating Expenditures FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Water Purchases SDCWA Fixed Charges $4,057,800 $4,066,842 $4,394,585 $4,658,260 $4,937,756 $5,234,021 SDCWA Supply Charges $10,170,054 $10,391,465 $10,803,586 $11,493,140 $12,226,548 $13,006,589 City of San Diego - Recycled Water $361,954 $367,686 $389,747 $413,132 $437,920 $464,195 Other O&M Legislative & Administrative $701,245 $672,831 $693,016 $713,806 $735,221 $757,277 Finance Services $1,366,234 $1,457,327 $1,501,047 $1,546,078 $1,592,461 $1,640,234 Human Resources $410,027 $410,396 $422,708 $435,389 $448,451 $461,904 Development Services $386,489 $429,508 $442,393 $455,665 $469,335 $483,415 Public Works $1,220,760 $1,309,158 $1,348,433 $1,388,886 $1,430,552 $1,473,469 Treatment & Storage $3,362,082 $3,518,088 $3,683,906 $3,845,130 $4,013,101 $4,190,516 Water Transmission & Distribution $1,485,462 $1,807,544 $1,906,590 $1,998,347 $2,094,801 $2,197,788 Reclaimed Water $578,244 $435,632 $460,040 $484,239 $509,862 $537,103 Total Operating Expenditures $24,100,352 $24,866,477 $26,046,051 $27,432,072 $28,896,007 $30,446,512 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Ongoing Projects Clearwell Upgrades Part 2 $500,000 $0 $0 $0 $0 Subtotal Ongoing Projects $500,000 $0 $0 $0 $0 Proposed Projects Clearwell Upgrades (includes floating cover replacement)$2,164,000 $0 $0 $0 $0 Annual Water Valve Replacement $150,000 $169,000 $176,000 $183,000 $191,000 Annual ACP Water Main Replacement $0 $0 $0 $0 $300,000 Boulder Mtn Reservoir 1 & 2 Rehabilitation ($1,100,000 previously funded)$0 $140,000 $0 $0 $0 Water Treatment Plant Filter Gallery Upgrades $0 $734,000 $0 $0 $0 Water Treatment Plant Sedimentation Basin Upgrades $0 $293,000 $0 $0 $0 WTP Valves and Actuators $0 $100,000 $100,000 $0 $0 Gregg Street Reclaimed Reservoir Rehabilitation $0 $0 $1,172,000 $0 $0 Boulder Mountain Reservoir 3 Rehabilitation $0 $0 $622,000 $0 $0 MCC Upgrades (Welton, Community, Gregg Pot, Gregg Reclaim, Woodcliff)$0 $0 $0 $715,000 $0 Water Treatment Plant Upgrade Filters 1-8 $0 $0 $0 $1,587,000 $0 WTP Washwater Recovery Basin and Pumping Station $0 $0 $0 $733,000 $0 WTP Electrical/Instrumentation Upgrades $0 $0 $0 $0 $2,414,000 Subtotal Proposed Projects $2,314,000 $1,436,000 $2,070,000 $3,218,000 $2,905,000 Total CIP $2,814,000 $1,436,000 $2,070,000 $3,218,000 $2,905,000 19 CITY OF POWAY 4.1.6.1.Operating Reserve The purpose of an operating reserve is to provide working capital to support the operation, maintenance, and administration of the utility. From a risk management perspective, the O&M reserve supports the City’s cash flow needs during normal operations and additionally ensures that operations can continue should there be significant events that impact cash flows. As it is unlikely for a utility to perfectly predict the revenues and revenue requirements for each billing period, a reserve set aside to hedge the risk of monthly negative cash positions is prudent in financial planning. Another factor to consider when creating a cash flow reserve is the frequency of billing. A utility that bills once a month would require a lower minimum reserve than a utility that bil ls bimonthly or twice a year. Raftelis recommends that the City revise its current operating reserve target of 20% of operating expenditures to a minimum of 90 days of operating expenses and establish a target balance of 120 days to ensure adequate working capital for operating expenses. The City bills bimonthly; thus 120 days provides sufficient working capital to account for time differential between when expenses occur and when revenues are collected. Additionally, this accounts for revenues varying seasonally while expenses remain relatively static. 4.1.6.2.Capital Replacement Reserve Adequate and timely capital replacement planning is a critical task to ensure reliability and sustainability of the water system. Capital reserves are used to provide funding for capital expenditures due to the capital-intensive nature of the water system. The City does not currently maintain a separate capital replacement reserve.Raftelis recommends the City adopt a policy using the estimated 5-year average CIP as the target balance. In FYE 2020, this average is $2.5 million. 4.1.6.3.Recommended Total Reserve Targets Table 4-10 summarizes the proposed reserve policies for the City. Table 4-10:Water Proposed Reserve Targets Reserve Policy Operating Minimum: 90 days Target: 120 days Capital Replacement 5-Year Average CIP 4.1.7.STATUS QUO FINANCIAL PLAN Table 4-11 shows the operating cash flow detail for the City during the study period under current rates with no adjustments. As shown in Line 28, the City is unable to meet its expenses, with particularly large deficits starting in FYE 2022 through FYE 2024 due to increasing O&M costs and capital projects. CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 20 Table 4-11:Water Financial Plan under Current Rates Table 4-12 shows the City’s fund balances over study period under current rates with no adjustments. The operating reserve target is equal to 120 days of operating and the capital reserve target is equal to the 5-year average CIP. The City’s operating fund balance (Line 5)will not meet the reserve target (Line 6)in the planning period and, therefore, no funds are transferred the capital replacement fund (Line 9).The City currently does not have capital reserves. Table 4-12:Water Projected Fund Balances Under Current Rates Line Revenue FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 1 Rate Revenue $26,574,252 $26,670,835 $26,767,418 $26,864,001 $26,960,584 2 Other Revenue 3 Fees $118,730 $118,730 $118,730 $118,730 $118,730 4 Miscellaneous $14,790 $14,790 $14,790 $14,790 $14,790 5 Raw Water Sales - Contract $262,736 $278,185 $294,552 $311,891 $330,260 6 Total Other Revenue $396,256 $411,705 $428,072 $445,411 $463,780 7 Total Revenue $26,970,508 $27,082,540 $27,195,490 $27,309,412 $27,424,364 8 Operating Expenditures 9 Water Purchases 10 SDCWA Fixed Charges $4,066,842 $4,394,585 $4,658,260 $4,937,756 $5,234,021 11 SDCWA Supply Charges $10,391,465 $10,803,586 $11,493,140 $12,226,548 $13,006,589 12 City of San Diego - Recycled Water $367,686 $389,747 $413,132 $437,920 $464,195 13 Other O&M 14 Legislative & Administrative $672,831 $693,016 $713,806 $735,221 $757,277 15 Finance Services $1,457,327 $1,501,047 $1,546,078 $1,592,461 $1,640,234 16 Human Resources $410,396 $422,708 $435,389 $448,451 $461,904 17 Development Services $429,508 $442,393 $455,665 $469,335 $483,415 18 Public Works $1,309,158 $1,348,433 $1,388,886 $1,430,552 $1,473,469 19 Treatment & Storage $3,518,088 $3,683,906 $3,845,130 $4,013,101 $4,190,516 20 Water Transmission & Distribution $1,807,544 $1,906,590 $1,998,347 $2,094,801 $2,197,788 21 Reclaimed Water $435,632 $460,040 $484,239 $509,862 $537,103 22 Total Operating Expenditures $24,866,477 $26,046,051 $27,432,072 $28,896,007 $30,446,512 23 Debt Service & Capital Projects 24 Rate Funded Capital Projects $2,814,000 $1,436,000 $2,070,000 $3,218,000 $2,905,000 25 New Proposed Debt $0 $0 $0 $0 $0 26 Total Debt Service & Capital Projects $2,814,000 $1,436,000 $2,070,000 $3,218,000 $2,905,000 27 Total Expenses $27,680,477 $27,482,051 $29,502,072 $32,114,007 $33,351,512 28 Net Cashflow ($709,969)($399,511)($2,306,582)($4,804,595)($5,927,148) Line Operating Fund (5100)FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 1 Beginning Balance $8,556,284 $7,928,391 $7,606,230 $5,364,241 $589,328 2 Net Cashflow ($709,969)($399,511)($2,306,582)($4,804,595)($5,927,148) 3 Interest Income $82,076 $77,350 $64,593 $29,683 $63 4 Transfers to Capital Replacement $0 $0 $0 $0 $0 5 Ending Balance $7,928,391 $7,606,230 $5,364,241 $589,328 ($5,337,756) 6 Target Reserve Balance $8,288,826 $8,682,017 $9,144,024 $9,632,002 $10,148,837 7 Capital Replacement Fund FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 8 Beginning Balance $0 $0 $0 $0 $0 9 Transfers from Operating $0 $0 $0 $0 $0 10 New Debt Proceeds $0 $0 $0 $0 $0 11 Debt Funded Capital Projets $0 $0 $0 $0 $0 12 Ending Balance $0 $0 $0 $0 $0 13 Target Reserve Balance $2,488,600 $2,522,400 $2,441,400 $2,515,680 $2,360,360 21 CITY OF POWAY 4.1.8.PROPOSED FINANCIAL PLAN Balancing the need for the City to meet its revenue requirements while mitigating impacts to ratepayers, Raftelis worked with staff to determine the revenue adjustment schedule in Table 4-13.All revenue adjustments in the rate models are set for March of each calendar year;however, the City will implement the first revenue adjustment in March 2020 and subsequently in January of each fiscal year. Table 4-13:Water Proposed Revenue Adjustments Table 4-14 incorporates the proposed revenue adjustments into the financial plan. As noted above, the City needs to balance its revenue needs with mitigating rate increases for customers. While the proposed financial plan still shows a deficit in funding for FYE 2020 and FYE 2023 (Line 28),the City will rely on reserves to fund the balance of expenditures rather than significantly increase its rates in deficit years. Table 4-14:Water Proposed Financial Plan Table 4-15 shows the City’s projected fund balances over the study period. The operating reserve target is equal to 120 days of operating expenses to mitigate against any potential cash flow risks or unexpected O&M costs. The capital reserve target is equal to the 5-year average CIP.The City’s combined operating and capital fund balances FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 March March March March March 4.50%4.50%5.25%5.25%5.25% Line Revenue FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 1 Rate Revenue $26,972,865 $28,289,088 $29,742,226 $31,416,644 $33,184,899 2 Other Revenue 3 Fees $118,730 $118,730 $118,730 $118,730 $118,730 4 Miscellaneous $14,790 $14,790 $14,790 $14,790 $14,790 5 Raw Water Sales - Contract $262,736 $278,185 $294,552 $311,891 $330,260 6 Total Other Revenue $396,256 $411,705 $428,072 $445,411 $463,780 7 Total Revenue $27,369,122 $28,700,793 $30,170,299 $31,862,055 $33,648,679 8 Operating Expenditures FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 9 Water Purchases 10 SDCWA Fixed Charges $4,066,842 $4,394,585 $4,658,260 $4,937,756 $5,234,021 11 SDCWA Supply Charges $10,391,465 $10,803,586 $11,493,140 $12,226,548 $13,006,589 12 City of San Diego - Recycled Water $367,686 $389,747 $413,132 $437,920 $464,195 13 Other O&M 14 Legislative & Administrative $672,831 $693,016 $713,806 $735,221 $757,277 15 Finance Services $1,457,327 $1,501,047 $1,546,078 $1,592,461 $1,640,234 16 Human Resources $410,396 $422,708 $435,389 $448,451 $461,904 17 Development Services $429,508 $442,393 $455,665 $469,335 $483,415 18 Public Works $1,309,158 $1,348,433 $1,388,886 $1,430,552 $1,473,469 19 Treatment & Storage $3,518,088 $3,683,906 $3,845,130 $4,013,101 $4,190,516 20 Water Transmission & Distribution $1,807,544 $1,906,590 $1,998,347 $2,094,801 $2,197,788 21 Reclaimed Water $435,632 $460,040 $484,239 $509,862 $537,103 22 Total Operating Expenditures $24,866,477 $26,046,051 $27,432,072 $28,896,007 $30,446,512 23 Debt Service & Capital Projects 24 Rate Funded Capital Projects $2,814,000 $1,436,000 $2,070,000 $3,218,000 $2,905,000 25 New Proposed Debt $0 $0 $0 $0 $0 26 Total Debt Service & Capital Projects $2,814,000 $1,436,000 $2,070,000 $3,218,000 $2,905,000 27 Total Expenses $27,680,477 $27,482,051 $29,502,072 $32,114,007 $33,351,512 28 Net Cashflow ($311,356)$1,218,742 $668,226 ($251,951)$297,167 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 22 will meet the minimum reserve levels beginning in FYE 2021.The City’s operating fund balance will not meet the target reserve level beginning in FYE 2023. Additionally, the City will not meet the capital reserve target in the study period in order to minimize rate impacts to customers; however,the reserves will begin to increase in the following years. Table 4-15:Water Projected Fund Balances Under Proposed Rates Figure 4-1 through Figure 4-3 display the Financial Plan in graphical format.Figure 4-1 illustrates the operating position of the City, where expenses, inclusive of reserve funding, are shown by stacked bars; and total revenues at both current rates and proposed rates are shown by the horizontal trend lines.Figure 4-2 summarizes the projected CIP and its funding sources (100%Rates/Reserves funded.Figure 4-3 displays the ending total reserve balance for the water utility, inclusive of operating and capital funds. The horizontal trend lines indicate the minimum and target reserve balances and the bars indicate ending reserve balance. No new debt is proposed to be issued as part of the proposed five-year financial plan. Figure 4-1:Water Operating Financial Plan at Proposed Rates Line Operating Fund (5100)FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 1 Beginning Balance $8,556,284 $8,328,998 $8,771,464 $9,243,801 $9,094,705 2 Net Cashflow ($311,356)$1,218,742 $668,226 ($251,951)$297,167 3 Interest Income $84,070 $89,447 $99,776 $102,856 $104,110 4 Transfers to Capital Replacement $0 ($865,723)($295,667)$0 $0 5 Ending Balance $8,328,998 $8,771,464 $9,243,801 $9,094,705 $9,495,982 6 Target Reserve Balance $8,288,826 $8,682,017 $9,144,024 $9,632,002 $10,148,837 7 Capital Replacement Fund FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 8 Beginning Balance $0 $0 $865,723 $1,161,389 $1,161,389 9 Transfers from Operating $0 $865,723 $295,667 $0 $0 10 New Debt Proceeds $0 $0 $0 $0 $0 11 Debt Funded Capital Projets $0 $0 $0 $0 $0 12 Ending Balance $0 $865,723 $1,161,389 $1,161,389 $1,161,389 13 Target Reserve Balance $2,488,600 $2,522,400 $2,441,400 $2,515,680 $2,360,360 23 CITY OF POWAY Figure 4-2:Proposed Water Capital Improvement Plan and Funding Source Figure 4-3:Water Projected Ending Balances at Proposed Rates CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 24 Cost of Service Analysis 4.2.1.COST OF SERVICE METHODOLOGY The first step in the COS analysis process is to determine the revenue requirement, which is based on the results of the financial plan and the proposed revenue adjustments. The framework and methodology utilized to develop the COS analysis and to apportion the revenue requirement to each customer class and tier is informed by the processes outlined in the M1 Manual. COS analyses are tailored specifically to meet the unique needs of each water system. However, there are four distinct steps in every analysis to recover costs from customer classes in an accurate, equitable, and defensible manner: 1.Cost functionalization:O&M expenses and capital assets are categorized by their function in the system. Functions include supply, treatment, storage, distribution,customer service, etc. 2.Cost causation component allocation:the functionalized costs are then allocated to cost causation components based on their burden on the system. The cost causation components include supply, base delivery, peaking, meter, customer, etc. The revenue requirement is allocated accordingly to the cost causation components and results in the total revenue requirement for each cost causation component. 3.Unit cost development:the revenue requirement for each cost causation component is div ided by the appropriate units of service to determine the unit cost for each cost causation component. 4.Revenue requirement distribution:the unit cost is utilized to distribute the revenue requirement for each cost causation component to customer classes a nd tiers based on their individual service units. The City’s customer classes include Domestic, Agricultural, Commercial, Irrigation, Construction, and Recycled. 4.2.2.REVENUE REQUIREMENT The revenue requirement for the proposed rates will be based on FYE 2020,the designated Test Year.Table 4-16 shows the revenue requirement derivation with the total revenue required from rates. The totals shown in the “Operating” and “Capital” columns are the total O&M and capital revenue requirements, respectively, that are to be recovered through rates.The operating costs (Line 7)flow from Table 4-8. The Debt Service category (Line 10) represents both replacement capital projects (Table 4-9)and any proposed debt.Note there is no debt issuance proposed for FYE 2020.Revenue offsets are composed of various miscellaneous,non-rate revenues, shown in Table 4-6.To arrive at the rate revenue requirement, we subtract these revenue offsets from the combined operating and debt service costs.The net cash flow from Table 4-14, Line 28, is shown on Line 19 as Adjustment for Cash Balance.The adjustment to annualize the rate increase (Line 20) is due to the mi d-year proposed revenue adjustment occurring in March 2020.These adjustments are then combined to arrive at the total annual revenue requirement from rates. This is the amount that the City’s rates are designed to collect,for a full year,in the “Total”column at Line 22. 25 CITY OF POWAY Table 4-16:Water Revenue Requirement 4.2.3.FUNCTIONALIZATION AND ALLOCATION OF EXPENSES After determining the revenue requirement, the next step of the COS analysis is to allocate the O&M expenses and capital assets to the following functions: 1.Administration –overhead costs associated with the management of the utility 2.Billing –all customer billing costs 3.Customer Service –represents the costs associated with meter reading, billing and customer and meter service 4.Supply –represents costs of procuring water supplies from SDCWA 5.Production –the costs of buying potable water 6.Treatment –represents costs of water treatment 7.Transmission &Distribution –represents costs pertaining to the City’s water distribution system 8.Meters –represents costs relating to maintenance and capital costs of water meters as well as a portion of costs related to water system capacity 9.Recycled Water –represents costs related to the City’s recycled water system 10.Capital –infrastructure costs 11.General -represents costs for general operational expenses which cannot be categorized under any of the above The functionalization of costs allows for the allocation of costs to the co st causation components, which include: 1.Supply –costs associated with procuring water supplies from SDCWA 2.Base Delivery –costs associated with providing water under average conditions 3.Peaking (Max Day and Max Hour)–costs associated with providing water under peak demand conditions 4.Recycled Water –costs associated with the City’s recycled water system Line Revenue Requirements Operating Capital Total 1 Operating Costs 2 SDCWA Fixed Charges $4,066,842 $4,066,842 3 SDCWA Supply Charges $10,391,465 $10,391,465 4 City of San Diego - Recycled Water $367,686 $367,686 5 Treatment & Storage $3,518,088 $3,518,088 6 Other O&M $6,522,396 $6,522,396 7 Subtotal Operating Costs $24,866,477 $0 $24,866,477 8 Debt Service 9 Rate Funded Capital Projects $2,814,000 $2,814,000 10 New Proposed Debt $0 $0 11 Subtotal Debt Service $0 $2,814,000 $2,814,000 12 Total Revenue Requirements $24,866,477 $2,814,000 $27,680,477 13 Less: Revenue Offsets 14 Fees $118,730 $118,730 15 Miscellaneous $14,790 $14,790 16 Raw Water Sales - Contract $262,736 $262,736 17 Total Revenue Offsets $396,256 $0 $396,256 18 Less: Adjustments 19 Adjustment for Cash Balance $311,356 $311,356 20 Adjustment for Mid-Year Increase ($797,228)($797,228) 21 Total Adjustments ($485,872)$0 ($485,872) 22 Total Revenue Requirement from Rates $24,956,093 $2,814,000 $27,770,093 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 26 5.Treatment –costs associated with treating water for the potable water system 6.Meters –costs associated with purchasing, maintaining, and servicing water meters as well as some costs related to system capacity 7.Customer –costs associated with customer service and billing 8.General –costs that do not have any direct cost causation 4.2.4.PEAKING FACTORS Water systems are designed to handle maximum day (Max Day)and maximum hour (Max Hour) demands. Different facilities, such as distribution and storage facilities, are designed to meet the peaking demands of customers. Therefore, peaking costs, also known as extra capacity costs, are associated with meeting peak customer demand. Peaking costs are therefore based on Max Day and Max Hour demands. Table 4-17 shows the system-wide peaking factors used to derive the cost component allocation bases for Base Delivery, Max Day, and Max Hour costs. The Base Delivery, or Base use is considered average daily demand over one year, which has been normalized to a factor of 1.00 (Column B, Line 1). The Max Day peaking factor (Line 2) indicates that the Max Day demand is two times greater than the average daily demand. Similarly, the Max Hour peaking factor (Line 3) shows that the Max Hour demand is three times greater than average demand.These factors were determined during the development of the City’s Water Master Plan. The percentage allocations of costs are calculated using the equations outlined. The Base allocation is 1/1 x 100%=100% The Max Day allocation are calculated as follows: »Base Delivery: 1 / 2 x 100% = 50% »Max Day: (2 -1) / 2 x 100% = 50% The Max Hour allocations are calculated as follows: »Base Delivery: 1 /3 x 100% =33% »Max Day: (2 -1) / 3 x 100% =33% »Max Hour: (3 -2) / 3 x 100% =33% The Average Max Day / Max Hour allocation averages the Max Day and Max Hour allocations to Base, Max Day, and Max Hour,respectively,and is used to allocate the cost of transmission and dist ribution assets which are not identified separately. Table 4-17: System Peaking Factors Line Allocation Factor System Peaking Factor Base Max Day Max Hour Total A B C D E F 1 Base 1.00 100%0%0%100% 2 Max Day 2.00 50%50%0%100% 3 Max Hour 3.00 33%33%33%100% 4 Average Max Day/Max Hour 42%42%17%100% 27 CITY OF POWAY Table 4-18 shows the derivation of the peaking factors by customer class and tier, determined by dividing the total maximum monthly usage (Column C) by the average monthly usage (Column D) for each customer class and tier. For this analysis, we employ the classes and tiers used in the proposed rate schedule. These peaking factors are used to allocate the peaking costs to each customer class and tier. See the Rate Derivation section of this report for a detailed discussion of tier widths and the use of peaking factors in determining rates. Table 4-18: Customer Class Peaking Factors The Max Hour peaking factor is for each class is derived by multiplying the Max Day factor by 1.5 which is the ratio of the Max Hour to Max Day system peaking factors. 4.2.5.ALLOCATION OF COSTS As detailed in Section 4.2.1, functionalizing costs allows us to better distribute costs to the cost causation components.Table 4-19 shows the function categories used in this study in Column A. Column B identifies the chosen rationale for distributing these functionalized costs to the cost causation components. For example, all costs allocated to the Administration function (Column A, Line 1) are all initially allocated to the General cost causation components (Column K, Line 1). Line 9 shows the distribution of Capital costs based on the City’s total current asset value distributed to the relevant cost allocations. Line Customer Class Selected Bimonthly Tiers Max Month Average Month Max Day Peaking Factor A B C D E 1 Single Family Residential 2 Tier 1 20 206,218 192,428 1.07 3 Tier 2 56 187,011 133,559 1.40 4 Tier 3 56+312,864 135,243 2.31 5 Multi-Family Residential 35,087 31,422 1.12 6 Landscape Irrigation 20,926 10,981 1.91 7 Non-Residential 151,167 121,400 1.25 8 Recycled Water 54,881 41,849 1.31 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 28 Table 4-19: Functionalized O&M Cost Distributions to Cost Causation Factors Using Table 4-19 as a guide, all of the operating costs are then allocated based on their related function’s cost allocation distribution.Table 4-20 shows first the percent distributions, then dollar allocations of each O&M cost. Line Function Rationale Supply Base Delivery Max Day Max Hour Treatment Meter Customer Recycled General Total A B C D E F G H I J K L 1 Administration General 100%100% 2 Billing Customer 60%40%100% 3 Customer Service Customer 100%100% 4 Supply Supply 100%100% 5 Production Max Day 50%50%0%100% 6 Transmission & Distribution Max Hour 33%33%33%100% 7 Treatment Treatment 100%100% 8 General General 100%100% 9 Capital Capital 0%35%36%11%14%0%0%2%1%100% 10 Recycled Recycled 100%100% 29 CITY OF POWAY Table 4-20:Water O&M Cost Allocations O&M Allocation Function Supply Base Delivery Max Day Max Hour Treatment Meter Customer Recycled General Total SDCWA - MWD Readiness-to-Serve Charge 50%50%100% SDCWA - MWD Capacity Charge 100%100% SDCWA - Supply Reliability Charge 50%50%100% SDCWA - Customer Service Charge 50%50%100% SDCWA - Storage Charge 50%50%100% SDCWA - Infrastructure Access Charge 100%100% SDCWA Supply Charges Supply 100%0%0%0%0%0%0%0%0%100% City of San Diego - Recycled Water Recycled 0%0%0%0%0%0%0%100%0%100% Legislative & Administrative Administration 0%0%0%0%0%0%0%0%100%100% Finance Services Billing 0%0%0%0%0%60%40%0%0%100% Human Resources Administration 0%0%0%0%0%0%0%0%100%100% Development Services Capital 0%35%36%11%14%0%0%2%1%100% Public Works General 0%0%0%0%0%0%0%0%100%100% Treatment & Storage Treatment 0%0%0%0%100%0%0%0%0%100% Water Transmission & Distribution Transmission & Distribution 0%33%33%33%0%0%0%0%0%100% Reclaimed Water Recycled 0%0%0%0%0%0%0%100%0%100% O&M Allocation Function Supply Base Delivery Max Day Max Hour Treatment Meter Customer Recycled General Total SDCWA - MWD Readiness-to-Serve Charge 0 $169,530 $0 $0 $0 $0 $169,530 $0 $0 $0 $339,060 SDCWA - MWD Capacity Charge $0 $0 $0 $174,450 $0 $0 $0 $0 $0 $174,450 SDCWA - Supply Reliability Charge $416,385 $0 $0 $0 $0 $416,385 $0 $0 $0 $832,770 SDCWA - Customer Service Charge $272,649 $0 $0 $0 $0 $0 $272,649 $0 $0 $545,298 SDCWA - Storage Charge $749,883 $0 $0 $0 $0 $749,883 $0 $0 $0 $1,499,766 SDCWA - Infrastructure Access Charge $0 $0 $0 $0 $0 $675,498 $0 $0 $0 $675,498 SDCWA Supply Charges Supply $10,391,465 $0 $0 $0 $0 $0 $0 $0 $0 $10,391,465 City of San Diego - Recycled Water Recycled $0 $0 $0 $0 $0 $0 $0 $367,686 $0 $367,686 Legislative & Administrative Administration $0 $0 $0 $0 $0 $0 $0 $0 $672,831 $672,831 Finance Services Billing $0 $0 $0 $0 $0 $874,396 $582,931 $0 $0 $1,457,327 Human Resources Administration $0 $0 $0 $0 $0 $0 $0 $0 $410,396 $410,396 Development Services Capital $0 $150,989 $156,190 $48,111 $60,550 $952 $0 $7,119 $5,596 $429,508 Public Works General $0 $0 $0 $0 $0 $0 $0 $0 $1,309,158 $1,309,158 Treatment & Storage Treatment $0 $0 $0 $0 $3,518,088 $0 $0 $0 $0 $3,518,088 Water Transmission & Distribution Transmission & Distribution $0 $602,515 $602,515 $602,515 $0 $0 $0 $0 $0 $1,807,544 Reclaimed Water Recycled $0 $0 $0 $0 $0 $0 $0 $435,632 $0 $435,632 Total O&M Expenses $11,999,912 $753,504 $758,705 $825,076 $3,578,638 $2,886,644 $855,580 $810,437 $2,397,981 $24,866,477 O&M Allocation 48%3%3%3%14%12%3%3%10%100% CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 30 Table 4-21 distributes the functionalized capital asset values to cost causation factors similar to Table 4-19 and Table 4-22 shows the resulting percent and dollar allocations of the different capital assets.Capital costs are allocated based on the system assets because capital costs are incurred to refurbish and replace system assets.Using system assets takes a longer-term view of the allocations of capital costs and provides a consistent allocation of costs from year to year even if the capital costs associated with different typ es of system assets change every year.In valuing the assets, we utilized the original cost less depreciation to account for aging of the assets, thus a decrease in the value. For example, Storage costs are alloc ated according to Max Day rationale because storage is constructed to meet base and peak day demand. Contrastingly, other costs, such as Meter,Recycled, General and Administrative costs are allocated 100% to their relevant cost causation factor. Table 4-21: Functionalized Capital Cost Distributions to Cost Causation Factors Line Function Rationale Supply Base Delivery Max Day Max Hour Treatment Meter Customer Recycled General Total A B C D E F G H I J K L 1 Storage Max Day 50%50%0%100% 2 Pumping Max Hour 33%33%33%100% 3 Pipelines Avg. Max Day/Hour 42%42%17%100% 4 Fire Hydrants Fire 33%67%100% 5 Treatment Treatment 100%100% 6 Administration Customer Service 100%100% 7 Meters Meter 100%100% 8 Equipment Avg. Max Day/Hour 42%42%17%100% 9 Production Supply 100%100% 10 General General 100%100% 11 Recycled Recycled 100%100% 31 CITY OF POWAY Table 4-22:Water Capital Cost Allocations The goal of allocating the costs and asset values in Table 4-20 and Table 4-22 is to allocate the total O&M costs and capital assets to the different cost causation components. This results in a percent distribution shown in the last line each of Table 4-20 and Table 4-22.Table 4-23 summarizes those cost allocations. Capital Asset Allocation Function Supply Base Delivery Max Day Max Hour Treatment Meter Customer Recycled General Total General General 0%0%0%0%0%0%0%0%100%100% Land & Easement General 0%0%0%0%0%0%0%0%100%100% Pumping Pumping 0%33%33%33%0%0%0%0%0%100% Source Of Supply Production 100%0%0%0%0%0%0%0%0%100% Transmission & Distribution Pipelines 0%42%42%17%0%0%0%0%0%100% Treatment Plant Treatment 0%0%0%0%100%0%0%0%0%100% Recycled Recycled 0%0%0%0%0%0%0%100%0%100% Storage Storage 0%50%50%0%0%0%0%0%0%100% Meters Meters 0%0%0%0%0%100%0%0%0%100% Fire Fire Hydrants 0%0%33%67%0%0%0%0%0%100% Administration Administration 0%0%0%0%0%0%100%0%0%100% Buildings & Improvements General 0%0%0%0%0%0%0%0%100%100% Equipment Equipment 0%42%42%17%0%0%0%0%0%100% Capital Asset Allocation Function Supply Base Delivery Max Day Max Hour Treatment Meter Customer Recycled General Total General General $0 $0 $0 $0 $0 $0 $0 $0 $253,497 $253,497 Land & Easement General $0 $0 $0 $0 $0 $0 $0 $0 $85 $85 Pumping Pumping $0 $706,198 $706,198 $706,198 $0 $0 $0 $0 $0 $2,118,595 Source Of Supply Production $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Transmission & Distribution Pipelines $0 $2,288,608 $2,288,608 $915,443 $0 $0 $0 $0 $0 $5,492,660 Treatment Plant Treatment $0 $0 $0 $0 $2,774,694 $0 $0 $0 $0 $2,774,694 Recycled Recycled $0 $0 $0 $0 $0 $0 $0 $326,230 $0 $326,230 Storage Storage $0 $3,676,490 $3,676,490 $0 $0 $0 $0 $0 $0 $7,352,980 Meters Meters $0 $0 $0 $0 $0 $43,627 $0 $0 $0 $43,627 Fire Fire Hydrants $0 $0 $238,359 $483,942 $0 $0 $0 $0 $0 $722,301 Administration Administration $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Buildings & Improvements General $0 $0 $0 $0 $0 $0 $0 $0 $2,876 $2,876 Equipment Equipment $0 $247,758 $247,758 $99,103 $0 $0 $0 $0 $0 $594,620 Total Capital Assets $0 $6,919,055 $7,157,415 $2,204,687 $2,774,694 $43,627 $0 $326,230 $256,458 $19,682,167 Capital Asset Allocation 0%35%36%11%14%0%0%2%1%100% CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 32 Table 4-23:Water Cost Allocation Distribution Summary Function Rationale Supply Base Delivery Max Day Max Hour Treatment Meter Customer Recycled General Total O&M O&M Expenses 48%3%3%3%14%12%3%3%10%100% Capital Capital Assets 0%35%36%11%14%0%0%2%1%100% 33 CITY OF POWAY 4.2.6.UNITS OF SERVICE This subsection describes the next step in the COS analysis, which is to determine the appropriate units of service to be used to calculate the unit costs for each cost causation component. 4.2.6.1.Equivalent Meters To allocate meter-related costs appropriately, the concept of equivalent meters needs to be understood. By using equivalent meters instead of a straight meter count, the analysis accounts for the fact that larger meters impose greater demands on the system and are more expensive to install, maintain, and replace than smaller meters. Equivalent meters are used in calculating meter service costs. Equivalent meters are based on meter hydraulic capacity. Equivalent meters represent the potential demand on the water system in terms of the base or smallest meter size. A ratio of hydraulic capacity is calculated by dividing large meter capacities by the base meter capacity. The capacity ratio is calculated using the meter ca pacity in gallons per minute (gpm) provided in the AWWA M1 Manual Principles of Water Rates, Fees and Charges (7th Edition). The base meter is the smallest meter, in this case, a 3/4-inch meter. The actual number of meters by size is multiplied by the corresponding capacity ratio to calculate equivalent meters.Table 4-24 and Table 4-25 show the equivalent meters for FYE 2020 for potable and recycled water service, respectively. Table 4-24: Potable Water Equivalent Meters1 1 The number of accounts for the ¾” Potable Water meters includes 1” residential fire accounts. Table 4-25: Recycled Water Equivalent Meters Potable Meter Size Capacity (gpm)AWWA Ratio Number of Meters Equivalent Meters 3/4"30 1.00 12,120 12,120 1"50 1.67 959 1,598 1 1/2"100 3.33 306 1,020 2"160 5.33 285 1,520 3"350 11.67 19 222 4"630 21.00 5 105 6"1300 43.33 2 87 8"2400 80.00 2 160 Total Potable Meters 13,698 16,832 Recycled Meter Size Capacity (gpm)AWWA Ratio Number of Meters Equivalent Meters 3/4"30 1.00 3 3 1"50 1.67 100 167 1 1/2"100 3.33 57 190 2"160 5.33 48 256 3"350 11.67 0 0 4"630 21.00 0 0 6"1300 43.33 0 0 8"2400 80.00 0 0 Total Recycled Meters 208 616 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 34 4.2.6.2.Peaking Units of Service Our goal is to proportionately distribute costs to each user class. To accomplish this, we calculate unit costs for each cost causation component. The first step in this process is to calculate the total number of service units demanded by each class for each cost causation component. This is shown in Table 4-26. The capacity or peaking factor for each customer class was derived in Table 4-18. The total equivalent meters are from Table 4-24 and Table 4-25.The Max Day and hour capacities are calculated by multiplying the average daily use by the Max Day or Max Hour peaking factor for each class and tier. This results in the total capacity, with extra capacity ca lculated by subtracting the average daily use from the total capacity for either Max Day or Max Hour. Table 4-26: Derivation of Cost Causation Component Units of Service 4.2.7.ALLOCATION OF REVENUE REQUIREMENTS TO COST CAUSATIONCOMPONENTS Table 4-27 shows the cost causation component unit cost derivations. The operatin g revenue requirement shown in Column K, Line 1 is equal to the operating revenue requirement (Line 22) in Table 4-16. The operating revenue requirement is allocated to the cost causation components using the resulting O&M allocation from Table 4-23. Similarly, the capital revenue requirement in Column K,Line 2 is equal to the capital revenue requirement (Line 22) in Table 4-16 and is allocated to the cost causation factors per Table 4-23. General costs, shown on Line 4, which cannot be tied to a specific function are redistributed in proportion to the resulting allocations of the other cost causation components except for Supply.Half the treatment costs are reallocated to Max Day in Line 5 since treatment facilities are designed for Max Day and a portion of Max Hour and Max Day costs are redistributed to the Meter component in Line 6.The final adjustments are intended to provide revenue stability for the Ci ty by ensuring that approximately 20 percent of rate revenues are from fixed charges. The total adjusted cost of service (Line 7) is divided by the relevant units of service in Line 8 (and from Table 4-26) to calculate the unit cost (Line 10 and Line 11). For example, the unit cost for the Base Delivery component is determined by dividing the total base delivery cost by total potable water use in ccf, while annual Customer costs are divided by the estimated number of bills in each year (total number of customers in Table 4-26 times six bills per year). These unit costs will next be used to distribute the cost causation components to the customer classes. Customer Class Bimonthly Tiers (hcf) Percent in Tier Annual Use (hcf) Average Daily Use (hcf/day) Capacity Factor Total Capacity (hcf/day) Extra Capacity (hcf/day) Capacity Factor Total Capacity (hcf/day) Extra Capacity (hcf/day) Number of Equivalent Meters Number of Customers Single Family Residential 2,768,223 13,230 12,650 Tier 1 20 42%1,154,921 3,164 1.07 3,386 221 1.61 5,078 1,693 Tier 2 56 29%801,599 2,196 1.40 3,075 878 2.10 4,612 1,537 Tier 3 56+29%811,703 2,224 2.31 5,137 2,913 3.47 7,706 2,569 Multi-Family Residential 188,531 517 1.12 577 60 1.67 865 288 572 146 Landscape Irrigation 75,421 207 1.91 394 187 2.86 591 197 85 10 Non-Residential 728,397 1,996 1.25 2,485 489 1.87 3,727 1,242 2,754 824 Agricultural 12,304 34 1.91 64 31 2.86 96 32 City Potable Usage 96,327 264 1.25 329 65 1.87 493 164 191 68 Recycled Water 251,093 688 1.31 902 214 1.97 1,353 451 616 208 Total 4,120,296 11,288 16,348 4,845 23,169 8,174 17,447 13,906 Max Day Max Hour 35 CITY OF POWAY Table 4-27:Water Unit Cost Calculation Line Cost Allocation Supply Base Delivery Max Day Max Hour Treatment Meter Customer Recycled General Total A B C D E F G H I J K 1 Operating Revenue Requirement $12,043,158 $756,219 $761,439 $828,049 $3,591,535 $2,897,047 $858,663 $813,358 $2,406,623 $24,956,093 2 Capital Revenue Requirement $0 $989,232 $1,023,310 $315,209 $396,704 $6,237 $0 $46,642 $36,666 $2,814,000 3 Total Cost of Service $12,043,158 $1,745,451 $1,784,750 $1,143,258 $3,988,239 $2,903,285 $858,663 $860,000 $2,443,290 $27,770,093 4 Allocation of General Cost $321,045 $328,273 $210,282 $733,565 $534,008 $157,936 $158,182 ($2,443,290)$0 5 Allocation of Treatment to Max Day $2,360,902 ($2,360,902)$0 $0 6 Allocation of Peak to Meter ($676,167)($433,133)$1,109,300 $0 7 Total Adjusted Cost of Service $12,043,158 $2,066,495 $3,797,757 $920,407 $2,360,902 $4,546,592 $1,016,599 $1,018,181 $0 $27,770,093 8 Unit of Service 3,869,203 3,869,203 4,845 7,723 3,869,203 104,684 83,436 251,093 9 Unit hcf hcf hcf/day hcf/day hcf equiv. meter/yr bills/yr hcf 10 Unit Cost $3.11 $0.53 $783.83 $119.18 $0.61 $43.43 $12.18 $4.05 11 Unit hcf hcf hcf/day hcf/day hcf equiv. meter/2-mo per bimonthly bill hcf CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 36 4.2.8.DISTRIBUTION OF COST CAUSATION COMPONENTS The final step in the cost of service analysis is to distribute the cost causation components to the user classes using the u nit costs derived in Table 4-27, thereby arriving at the cost to serve each customer class.Table 4-28 shows the cost allocation to each class. To derive the cost to serve each class, the unit costs from Table 4-27 are multiplied by the service units shown in Table 4-26 for each customer class and tier. For example, the supply costs for Tier 1 Single Family usage is calculated by multiplying the supply unit cost by that class’ annual usage in Tier 1. S imilarly, the Customer costs are derived by multiplying the Customer unit cost by the total number of bills by class in each year. Similar calculations yield the total c ost to serve each user class, as shown in the last column of Table 4-28. We have now calculated the cost to serve each user class and can proceed to derive rates that collect the cost to serve each class. Table 4-28: Allocation of Costs to Customer Classes Customer Class Supply Base Delivery Max Day Max Hour Treatment Meter Customer Recycled Total COS Single Family Residential $3,447,513 $924,779 $19,992,891 Tier 1 $3,594,769 $616,829 $173,611 $201,751 $704,707 Tier 2 $2,495,032 $428,125 $688,564 $183,216 $489,118 Tier 3 $2,526,482 $433,521 $2,283,472 $306,118 $495,283 Multi-Family Residential $586,816 $100,692 $47,225 $34,370 $115,037 $149,144 $10,673 $1,043,957 Landscape Irrigation $234,753 $40,281 $146,684 $23,465 $46,020 $22,063 $731 $513,998 Non-Residential $2,267,185 $389,028 $383,549 $148,077 $444,452 $717,664 $60,239 $4,410,193 Agricultural $38,297 $6,571 $23,930 $3,828 $7,508 $0 $0 $80,134 City Potable Usage $299,824 $51,447 $50,723 $19,582 $58,777 $49,773 $4,971 $535,097 Recycled Water $160,436 $15,206 $1,018,181 $1,193,823 Total Cost of Service $12,043,158 $2,066,495 $3,797,757 $920,407 $2,360,902 $4,546,592 $1,016,599 $1,018,181 $27,770,093 37 CITY OF POWAY Water Rate Development This section includes the calculation of rates and the results of the study.Rates and charges are designed for the study period,FYE 2020 to FYE 2024.Rates and charges in the rate model are assumed to be implemented in March of each year;however, the City will implement the first revenue adjustment in March 2020 and subsequently in January of each fiscal year. 4.3.1.DERIVATION OF PROPOS ED BIMONTHLY FIXED CHARGE We propose the City retain its schedule of a bimonthly fixed charges by meter size for all customer classes.Table 4-29 shows the derivation of the bimonthly fixed charge, which represents the Meter and Customer cost components determined in Table 4-27. This charge accounts for the fact that even when a customer does not use any water, the City incurs fixed costs related to maintaining the ability to serve each connection.In FYE 2019, more than 50% of the costs incurred by the water utility are fixed; therefore, to increase revenue stabi lity, the City Council decided to increase the revenue collected from fixed charges to 20% from the current 16%. Meter Component The meter component consists of costs to the City that vary based on meter size. It reflects the fact that larger meters have the potential to demand more capacity compared to smaller meters. The potential capacity demanded is proportional to the potential flow through each meter size as established by t he AWWA hydraulic capacity ratios which are shown in the “Capacity Ratio” column of Table 4-29. The ratios show the potential flow through each meter size compared to the flow through a 3/4-inch meter. The Meter capacity component for larger meters is scaled up using the AWWA capacity ratios shown in the “Capacity Ratio” column. Allocating capacity costs by meter size is a common way to equitably recover the fixed cost of operating the utility. Customer The customer component recovers costs associated with meter reading, customer billing and collection as well as customer service costs. These costs are the same for all meter sizes as it costs th e same to provide billing and customer services to a small meter as it does a larger meter. The Meter and Customer components are combined to form the proposed charge by meter size.The difference between proposed FYE 2020 and current fixed charges are also shown Table 4-29: Derivation of the Bimonthly Fixed Charges Meter Size Capacity Ratio Meter Customer Proposed Charge Current Charge Difference ($) 3/4"1.00 $43.43 $12.18 $55.62 $42.28 $13.34 1"1.67 $72.39 $12.18 $84.58 $70.47 $14.11 1 1/2"3.33 $144.77 $12.18 $156.96 $140.90 $16.06 2"5.33 $231.64 $12.18 $243.82 $225.44 $18.38 3"11.67 $506.70 $12.18 $518.89 $422.72 $96.17 4"21.00 $912.06 $12.18 $924.25 $704.52 $219.73 6"43.33 $1,882.04 $12.18 $1,894.22 $1,409.05 $485.17 8"80.00 $3,474.53 $12.18 $3,486.72 $2,254.46 $1,232.26 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 38 4.3.2.REVISIONS TO TIER DEFINITIONS The only customer class subject to a tiered volumetric rate structure is the Single-Family Residential customer class. The basis for Single-Family Residential tier definitions is shown in Table 4-30.Single-Family Residential Tier 1 usage is intended to provide an affordable rate for essential indoor water usage needs.3 Tier 2 usage is intended to provide for reasonable outdoor usage, and,therefore its upper limit is set to average summer bimonthly usage. Tier 3 usage is designed to capture inefficient and excess usage. Note that all water usage projections by customer class and tier utilized in Section 4.2.6 to develop units of service are based on the proposed tier definitions. Table 4-30: Revised Single-Family Residential Tier Definitions 4.3.3.DERIVATION OF PROPOSED COM MODITY RATES Proposed commodity rates are comprised of unit costs for the Supply, Base Delivery, Peaking, and Treatment cost causation components. Unit costs from Table 4-27 are used to provide the basis for the calculation of volumetric rates. However, peaking unit rates must first be differentiated by customer class, as these unit costs are not applied uniformly to each customer class and tier.Additionally,because recycled water customers are a homogenous class using water for irrigation,the Recycled volumetric rate is comprised solely of the Recycled Water unit cost, while all other volumetric rates are comprised of the other cost causation component unit costs listed above. Peaking Unit Rates Peaking costs represent the cost of providing Max Day and Max Hour flow capacity to each customer class and are assessed on total usage.Table 4-31 combines the Max Day and Max hour costs in Table 4-28 into Peaking Costs. These costs are divided by total annual use by class and tier to arrive at the Peaking unit cost for each. Table 4-31: Peaking Unit Cost by Class and Tier 3 The 20 ccf Single-Family Residential Tier 1 limit is based on an assumed 60 gallons per capita per day (GPCD) for essential water use needs and an average family of four. Single-Family Residential Tiers Current Bimonthly Tier Width Proposed Bimonthly Tier Width Tier 1 0-199 ccf 0-20 ccf Tier 1 max set equal to essential indoor needs Tier 2 199+ ccf 21-56 ccf Tier 2 max set equal to average summer bimonthly usage Tier 3 56+ ccf Use greater than average summer bimonthly usage Proposed Basis for Tier Widths Customer Class Annual Use (ccf)Peaking Costs Unit Cost Single Family Residential Tier 1 1,154,921 $375,362 $0.33 Tier 2 801,599 $871,781 $1.09 Tier 3 811,703 $2,589,590 $3.19 Multi-Family Residential 188,531 $81,595 $0.43 Landscape Irrigation 87,725 $197,906 $2.26 Non-Residential 728,397 $531,626 $0.73 City Potable Usage 96,327 $70,305 $0.73 39 CITY OF POWAY Recycled Water Unit Rates Recycled water customers pay the same bimonthly meter service charges as potable water customers.Table 4-32 shows the calculation of the recycled water commodity rate.The total revenue requirement (Line 1) is divided by the total recycled water consumption (Line 2) to arrive at the proposed FYE 2020 rate in Line 3. Table 4-32:Recycled Water Commodity Rate Calculation Line No.FYE 2020 1 Total Recycled Water Revenue Requirement $1,018,181 2 Total Recycled Water Consumption 251,093 3 Proposed FYE 2020 Recycled Water Commodity Rate $4.05 Table 4-33 shows the calculation of proposed FYE 2020 volumetric rates per ccf by customer class and tier. Supply, Base Delivery unit rates are directly from Table 4-27.Peaking unit rates were established in Table 4-31. The Recycled Water volumetric rate was established in Table 4-32.The differences between proposed FYE 2020 and current volumetric rates are also shown. Table 4-33: Derivation of the Commodity Rates ($/ccf) Customer Class Bimonthly Tiers Supply Base Delivery Peaking Treatment Proposed Rate Current Rate Difference ($) Single Family Residential Tier 1 20 $3.11 $0.53 $0.33 $0.61 $4.59 $5.36 -$0.77 Tier 2 56 $3.11 $0.53 $1.09 $0.61 $5.35 $5.36 -$0.01 Tier 3 56+$3.11 $0.53 $3.19 $0.61 $7.45 $5.36 $2.09 Multi-Family Residential $3.11 $0.53 $0.43 $0.61 $4.69 $5.47 -$0.78 Landscape Irrigation $3.11 $0.53 $2.26 $0.61 $6.52 $5.47 $1.05 Non-Residential $3.11 $0.53 $0.73 $0.61 $4.99 $5.47 -$0.48 City Potable Usage $3.11 $0.53 $0.73 $0.61 $4.99 $2.36 $2.63 Recycled Water $4.05 $4.06 $4.92 -$0.86 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 40 4.3.4.PROPOSED WATER RATE SCHEDULE The proposed rates derived in Table 4-29 and Table 4-33 are increased annually by the proposed revenue adjustments shown in Table 4-12. The resulting proposed rates for the study period are provided in Table 4-34 and Table 4-35. Table 4-34:FYE 2020-2024 Proposed Water Bimonthly Meter Service Charges Table 4-35:FYE 2020-2024 Proposed Water Commodity Rates Bill Impacts Figure 4-4 shows the impacts of the proposed rates on a hypothetical Single-Family Residential customer with a 3/4” meter at different usage levels.Figure 4-5 shows the impacts on a hypothetical Non-Residential customer with a 1” meter and different levels of consumption. Meter Size Current Charge March 2020 March 2021 March 2022 March 2023 March 2024 5/8"$42.28 $41.14 $43.00 $45.26 $47.64 $50.15 3/4"$42.28 $55.62 $58.13 $61.19 $64.41 $67.80 1"$70.47 $84.58 $88.39 $93.04 $97.93 $103.08 1 1/2"$140.90 $156.96 $164.03 $172.65 $181.72 $191.27 2"$225.44 $243.82 $254.80 $268.18 $282.26 $297.08 3"$422.72 $518.89 $542.25 $570.72 $600.69 $632.23 4"$704.52 $924.25 $965.85 $1,016.56 $1,069.93 $1,126.11 6"$1,409.05 $1,894.22 $1,979.46 $2,083.39 $2,192.77 $2,307.90 8"$2,254.46 $3,486.72 $3,643.63 $3,834.93 $4,036.27 $4,248.18 Customer Class Bimonthly Tiers (ccf) Current Rate March 2020 March 2021 March 2022 March 2023 March 2024 Single Family Residential Tier 1 20 $5.36 $4.59 $4.80 $5.06 $5.33 $5.61 Tier 2 56 $5.36 $5.35 $5.60 $5.90 $6.21 $6.54 Tier 3 56+$5.36 $7.45 $7.79 $8.20 $8.64 $9.10 Multi-Family Residential $5.47 $4.69 $4.91 $5.17 $5.45 $5.74 Landscape Irrigation $5.47 $6.52 $6.82 $7.18 $7.56 $7.96 Non-Residential $5.47 $4.99 $5.22 $5.50 $5.79 $6.10 City Potable Usage $2.36 $4.99 $5.22 $5.50 $5.79 $6.10 Recycled Water $4.92 $4.06 $4.25 $4.48 $4.72 $4.97 41 CITY OF POWAY Figure 4-4: Single-Family Residential Water Bill Impact Analysis Figure 4-5:Non-Residential Water Bill Impact Analysis CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 42 5.Wastewater Rate Study Wastewater Utility Financial Plan This section details the development of the five-year financial plan for City’s wastewater utility. This includes the determination of annual revenues required from wastewater rates based on annual cash flow projections. Assumptions and inputs related to projected revenues, operating expenses, capital expenditures are clearly outlined in the following subsections. 5.1.1.EXISTING RATE STRUCTURE AND RATES The City bills every two months (bimonthly), resulting in six total bills per year for each customer.The City’s current rates went into effect on March 1, 2019.The existing rate structure for wastewater customers consists of a uniform bimonthly fixed service charge for Single-Family residential customers. All other customers pay a fixed bimonthly service charge based on meter size.The City’s existing bimonthly service charges are shown below in Table 5-1. Table 5-1: Existing Bimonthly Wastewater Service Charges Additionally,all customers pay a commodity rate by customer class. These rates are shown in Table 5-2. Single- Family Residential customers pay a seven-tiered volumetric charge based on the customer’s average winter water usage determined by taking 85% of the lowest winter water use averaged over the last three year s.All other customers pay a uniform volumetric charge per unit of wastewater flow estimated as 90%of the customers’ bimonthly water use. Customer Class Meter Size CY 2019 Single-Family Residential (flat)$21.34 Non-Residential, Multi-Family, & Mobile Home 5/8"$28.16 3/4"$28.16 1"$38.23 1 1/2"$63.44 2"$93.69 3"$174.35 4"$265.07 6"$617.97 8"$819.62 43 CITY OF POWAY Table 5-2: Existing Bimonthly Commodity Rates ($/ccf wastewater) 5.1.2.ACCOUNT AND USAGE PROJECTIONS Table 5-3 shows the estimated number of wastewater accounts by customer class and meter size for FYE 2019 through FYE 2024.The projections are based on account data provided by the City for FYE 2018. The number of accounts is used to forecast the amount of fixed revenue the City will receive from the bimonthly meter service charges. Table 5-3:Wastewater Accounts Table 5-4 projects the number of Single-Family Residential accounts per tier and the billed wastewater flow by class for the study period based on FYE 2018 data. Customer Class Tier Width (ccf)CY 2019 Single Family Residential Tier 1 0-5 $29.54 Tier 2 6-12 $52.12 Tier 3 13-19 $78.45 Tier 4 20-26 $85.99 Tier 5 27-37 $101.04 Tier 6 38-50 $116.09 Tier 7 >51 $127.39 Non-Residential, Multi-Family, & Mobile Home General Commercial $4.02 Medium-Low $4.60 Medium $5.35 Medium-High $6.85 High $8.15 Light Industry $4.22 Multi-Family & Mobile home $4.02 Churches $4.02 Schools $4.02 Customer Class Meter Size FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Single Family Residential 11,420 11,420 11,479 11,539 11,598 11,657 Non-Residential, Multi-Family, & Mobile Home 5/8"0 0 0 0 0 0 3/4"123 123 123 123 123 123 1"224 224 224 224 224 224 1 1/2"166 166 166 166 166 166 2"206 206 206 206 206 206 3"16 16 16 16 16 16 4"5 5 5 5 5 5 6"1 1 1 1 1 1 8"2 2 2 2 2 2 Total Non-Residential, Multi-Family, & Mobile Home 743 743 743 743 743 743 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 44 Table 5-4:Accounts per Tier and Billed Wastewater Flow by Class (ccf) 5.1.3.REVENUES The City’s wastewater revenues consist of operating revenues (i.e.wastewater rate revenues), other operating revenues, and non-operating revenues. Projected wastewater rate revenues under existing rates are calculated for the years FYE 2020 to FYE 2024 (Table 5-5)by multiplying current rates (Table 5-1 and Table 5-2)by the corresponding units of service (Table 5-3 and Table 5-4).4 Projecting wastewater rate revenues under existing rates is necessary to evaluate the City’s projected baseline financial position in the absence of any proposed rate increases. Table 5-5: Projected Operating Revenues Under Existing Wastewater Rates 4 Fixed charge revenues =[number of accounts/meters assessed] x [bimonthl y rate] x [ 6 billing periods]. Volumetric charge revenues = [annual flow in CCF] x [volumetric rate per CCF]. Customer Class FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Single Family Residential (Number of Accounts per Tier) Tier 1 1,612 1,612 1,620 1,629 1,637 1,645 Tier 2 4,271 4,271 4,293 4,315 4,338 4,360 Tier 3 3,789 3,789 3,809 3,828 3,848 3,868 Tier 4 850 850 854 859 863 868 Tier 5 491 491 494 496 499 501 Tier 6 214 214 215 216 217 218 Tier 7 193 193 194 195 196 197 Total Number of Accounts 11,420 11,420 11,479 11,539 11,598 11,657 Non-Residential, Multi-Family, & Mobile Home General Commercial 202,246 202,246 202,246 202,246 202,246 202,246 Medium-Low 46,867 46,867 46,867 46,867 46,867 46,867 Medium 7,952 7,952 7,952 7,952 7,952 7,952 Medium-High 516 516 516 516 516 516 High 35,502 35,502 35,502 35,502 35,502 35,502 Light Industry 35,816 35,816 35,816 35,816 35,816 35,816 Multi-Family & Mobile home 179,261 179,261 179,261 179,261 179,261 179,261 Churches 10,748 10,748 10,748 10,748 10,748 10,748 Schools 38,050 38,050 38,050 38,050 38,050 38,050 Total Billed Wastewater Flow (ccf)556,957 556,957 556,957 556,957 556,957 556,957 Operating Revenues FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Bi-Monthly Service Charges Single-Family Residential $1,431,611 $1,462,217 $1,469,813 $1,477,410 $1,485,007 $1,492,604 Non-Residential, Multi-Family, & Mobile Home $283,309 $289,383 $289,383 $289,383 $289,383 $289,383 Bi-Monthly Flow Charges Single Family Residential $4,344,481 $4,437,610 $4,460,665 $4,483,720 $4,506,775 $4,529,830 Non-Residential, Multi-Family, & Mobile Home $2,391,489 $2,431,972 $2,431,972 $2,431,972 $2,431,972 $2,431,972 Total $8,450,890 $8,621,183 $8,651,834 $8,682,486 $8,713,137 $8,743,789 45 CITY OF POWAY Table 5-6 shows a summary of other revenues. The other operating and non-operating revenues were projected beyond FYE 2020 budgeted amounts by holding constant through FYE 2024 Table 5-6: Projected Other Wastewater Revenues Table 5-7 shows a revenue summary for the study period based on revenues shown previously in Table 5-5 and Table 5-6. Once again, operating revenues shown in this section reflect projected wastewater rate revenues under existing rates in the absence of any rate increases over the study period. Table 5-7:Wastewater Revenue Summary 5.1.4.O&M EXPENSES The City’s operations and maintenance (O&M) expenses, shown in Table 5-8, are based on the FYE 2020 City budget and projected out through FYE 2024. O&M expenses were projected beyond FYE 2020 by increasing FYE 2020 budgeted expenses using the inflationary factors discussed in Table 3-1. Table 5-8:Wastewater Operating Expenditures Summary 5.1.5.CAPITAL IMPROVEMENT PLAN The City has developed a capital improvement plan (CIP) to address ongoing wastewater system needs in each year throughout the study period. Detailed CIP expenditures in each year are shown at the individual project level in Table 5-9. Project costs in all years throughout the study period were provided by City staff. Other Revenue FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Fees $22,230 $22,720 $22,720 $22,720 $22,720 $22,720 Other $48,540 $63,000 $63,000 $63,000 $63,000 $63,000 Miscellaneous $600,360 $0 $0 $0 $0 $0 Total $671,130 $85,720 $85,720 $85,720 $85,720 $85,720 Revenues FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Operating Revenues $8,450,890 $8,621,183 $8,651,834 $8,682,486 $8,713,137 $8,743,789 Other Revenue $671,130 $85,720 $85,720 $85,720 $85,720 $85,720 Total $9,122,020 $8,706,903 $8,737,554 $8,768,206 $8,798,857 $8,829,509 Operating Expenditures FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Legislative & Administrative $372,947 $369,768 $380,861 $392,287 $404,055 $416,177 Finance Services $953,593 $1,051,669 $1,083,219 $1,115,716 $1,149,187 $1,183,663 Human Resources $178,498 $186,148 $191,732 $197,484 $203,409 $209,511 Development Services $247,668 $262,319 $270,189 $278,294 $286,643 $295,242 Public Works $1,058,254 $1,157,381 $1,192,102 $1,227,866 $1,264,701 $1,302,643 Treatment $3,564,910 $4,421,733 $4,578,047 $4,739,759 $5,264,229 $5,449,893 Wastewater Disposal $969,260 $859,614 $889,925 $921,311 $953,811 $987,464 Wastewater Collection $1,180,630 $1,304,423 $1,375,961 $1,441,136 $1,510,568 $1,584,610 Total Operating Expenditures $8,525,760 $9,613,055 $9,962,037 $10,313,854 $11,036,603 $11,429,203 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 46 Table 5-9: Wastewater Capital Improvement Plan 5.1.6.RECOMMENDED RESERVE POLICIES To enhance financial management transparency and financial risk management, Raftelis recommends the Wastewater Utility to maintain the following reserves. The following sections describe our recommendations in detail for each reserve. 5.1.6.1.Operating Reserve The purpose of an operating reserve is to provide working capital to support the operation, maintenance, and administration of the utility. From a risk management perspective, the O&M reserve supports the City’s cash flow needs during normal operations and additionally ensures that operations can continue should there be significant events that impact cash flows. As it is unlikely for a utility to perfectly predict the revenues and revenue requirements for each billing period, a reserve set aside to hedge the risk of monthly negative cash positions is prudent in financial planning. Another factor to consider when creating a cash flow reserve is the frequency of billing. A utility that bills once a month would require a lower minimum reserve than a utility th at bills bimonthly or twice a year. Raftelis recommends that the City revise its current operating reserve target of 20% of operating expenditures to a minimum of 90 days of operating expenses and establish a target balance of 120 days to ensure adequate working capital for operating expenses. The City bills bimonthly; thus 120 days provides sufficient working capital to account for time differential between when expenses occur and when revenues are collected. Additionally, this accounts for revenues varying seasonally while expenses remain relatively static. 5.1.6.2.Capital Replacement Reserve Adequate and timely capital replacement planning is a critical task to ensure reliability and sustainability of the wastewater system. Capital reserves are used to provide funding for capital expenditures due to the capital- intensive nature of the wastewater system. The City does not currently maintain a separate capital replacement reserve. Raftelis recommends the City adopt a policy using the estimated 5-year average CIP as the target balance. In FYE 2020, this average is about $1.0 million. 5.1.6.3.Recommended Total Reserve Targets Table 5-10 summarizes the proposed reserve policies for the City. FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 Ongoing Projects Martincoit Road Sewer Upsize (MP CAP-01)$550,000 $0 $0 $0 $0 Subtotal Ongoing Projects $550,000 $0 $0 $0 $0 Proposed Projects Manhole Rehabilitation $150,000 $169,000 $176,000 $183,000 $191,000 Sewer Line Repair Replace 16/17 (Exposed Sewer east of Martincoit)$1,000,000 $0 $0 $0 $0 Sewer Line Repair Replace $0 $281,000 $293,000 $305,000 $318,000 Butterfield Trail Sewer Upsize (MP CAP-02)$0 $0 $0 $0 $0 Sagewood Drive Sewer Upsize-Orchard Bend to Martincoit (MP CAP-04)$0 $0 $530,000 $0 $0 Treatment Plant Sludge Discharge Study $0 $0 $0 $25,000 $0 Camino Del Valle MCC Rebuild $0 $0 $0 $50,000 $0 Camino Del Valle Lift Station Upgrades (MP CAP-11)$0 $0 $0 $45,000 $0 Old Coach Lift Station Capacity Upgrade (MP CAP-10)$0 $0 $0 $0 $660,000 Replace generator at Old Coach Lift Station $0 $0 $0 $0 $125,000 Subtotal Proposed Projects $1,150,000 $450,000 $999,000 $608,000 $1,294,000 Total CIP $1,700,000 $450,000 $999,000 $608,000 $1,294,000 47 CITY OF POWAY Table 5-10:Wastewater Proposed Reserve Targets Reserve Policy Operating Minimum: 90 days Target: 120 days Capital Replacement 5-Year Average CIP 5.1.7.STATUS QUO FINANCIAL PLAN Table 5-11 shows the operating cash flow detail for the City during the study period under current rates with no adjustments. As shown in Line 22, the City is unable to meet its expenses beginning in FYE 2020 due to increasing O&M costs and capital projects. Table 5-11:Wastewater Financial Plan under Current Rates Table 5-12 shows the City’s fund balances over the study period under current rates with no adjustments. The operating reserve target is equal to 120 days of operating and the capital reserve target is equal to the 5-year average CIP. The City’s operating fund balance will not meet the operating reserve target (Line 5)beginning in the FYE 2024 and will not meet the capital replacement reserve target beginning in FYE 2024 (Line 12).The City currently does not have capital reserves. Line Revenue FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 1 Rate Revenue $8,621,183 $8,651,834 $8,682,486 $8,713,137 $8,743,789 2 Other Revenue 3 Fees $22,720 $22,720 $22,720 $22,720 $22,720 4 Other $63,000 $63,000 $63,000 $63,000 $63,000 5 Total Other Revenue $85,720 $85,720 $85,720 $85,720 $85,720 6 Total Revenue $8,706,903 $8,737,554 $8,768,206 $8,798,857 $8,829,509 7 Operating Expenditures 8 Legislative & Administrative $369,768 $380,861 $392,287 $404,055 $416,177 9 Finance Services $1,051,669 $1,083,219 $1,115,716 $1,149,187 $1,183,663 10 Human Resources $186,148 $191,732 $197,484 $203,409 $209,511 11 Development Services $262,319 $270,189 $278,294 $286,643 $295,242 12 Public Works $1,157,381 $1,192,102 $1,227,866 $1,264,701 $1,302,643 13 Treatment $4,421,733 $4,578,047 $4,739,759 $5,264,229 $5,449,893 14 Wastewater Disposal $859,614 $889,925 $921,311 $953,811 $987,464 15 Wastewater Collection $1,304,423 $1,375,961 $1,441,136 $1,510,568 $1,584,610 16 Total Operating Expenditures $9,613,055 $9,962,037 $10,313,854 $11,036,603 $11,429,203 17 Debt Service & Capital Projects 18 Rate Funded Capital Projects $1,700,000 $450,000 $999,000 $608,000 $1,294,000 19 New Proposed Debt $0 $0 $0 $0 $0 20 Total Debt Service $1,700,000 $450,000 $999,000 $608,000 $1,294,000 21 Total Expenses $11,313,055 $10,412,037 $11,312,854 $11,644,603 $12,723,203 22 Net Cashflow ($2,606,152)($1,674,482)($2,544,648)($2,845,746)($3,893,694) CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 48 Table 5-12:Wastewater Projected Fund Balances Under Current Rates 5.1.8.PROPOSED FINANCIAL PLAN Balancing the need for the City to meet its revenue requirements while mitigating increases to ratepayers’ cost of service, Raftelis worked with staff to determine the revenue adjustment schedule in Table 5-13. All revenue adjustments in the rate model are set for March of each year;however, the City will implement the first revenue adjustment in March 2020 and subsequently in January of each fiscal year. Table 5-13:Wastewater Proposed Revenue Adjustments Table 5-14 incorporates the proposed revenue adjustments into the financial plan. As noted above, the City needs to balance its revenue needs with mitigating rate increases for customers. While the propo sed financial plan still shows a negative net cashflow in FYE 2020 and FYE 2023 (Line 22), the City’s wastewater reserves exceed the proposed target. The City will rely on reserves to fund the balance of expenditures rather than significantly increase its rates in deficit years.This was a strategic decision made by the City in preparation for funding the City’s share of San Diego’s Pure Water Project.These funds have been set aside to help mitigate impacts to rate payers.The reserves are being gradually drawn down to pay the City’s share of the Pure Water Program. Line Operating Fund (5200)FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 1 Beginning Balance $15,459,676 $11,984,890 $10,431,986 $7,833,921 $4,964,484 2 Net Cashflow ($2,606,152)($1,674,482)($2,544,648)($2,845,746)($3,893,694) 3 Interest Income $141,566 $121,578 $101,699 $75,764 $42,824 4 Transfers from (to) Captial Replacement ($1,010,200)$0 ($155,116)($99,454)$0 5 Ending Balance $11,984,890 $10,431,986 $7,833,921 $4,964,484 $1,113,614 6 Target Reserve Balance $3,204,352 $3,320,679 $3,437,951 $3,678,868 $3,809,734 7 Capital Replacement Fund FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 8 Beginning Balance $0 $1,010,200 $1,010,200 $1,165,316 $1,264,770 9 Transfers from Operating $1,010,200 $0 $155,116 $99,454 $0 10 New Debt Proceeds $0 $0 $0 $0 $0 11 Debt Funded Capital Projets $0 $0 $0 $0 $0 12 Ending Balance $1,010,200 $1,010,200 $1,165,316 $1,264,770 $1,264,770 13 Target Reserve Balance $1,010,200 $960,585 $1,165,316 $1,264,770 $1,447,133 FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 March March March March March 6.3%6.3%6.3%6.3%6.3% 49 CITY OF POWAY Table 5-14:Wastewater Proposed Financial Plan Table 5-15 shows the City’s projected fund balances over the study period. The operating reserve target is equal to 120 days of operating expenses to mitigate against any potential cash flow risks or unexpected O&M costs. The capital reserve target is equal to the 5-year average CIP.Under the recommended plan, the City will draw down its current reserves to fund operating and capital costs but will meet the 5-year financial reserve targets. Table 5-15:Wastewater Projected Fund Balances Under Proposed Rates Figure 5-1 through Figure 5-3 display the Financial Plan in graphical format.Figure 5-1 illustrates the operating position of the City, where expenses, inclusive of reserve funding, are shown by stacked bars; and total revenues at both current rates and proposed rates are shown by the horizontal trend lines.Figure 5-2 summarizes the projected Line Revenue FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 1 Rate Revenue $8,802,228 $9,390,035 $10,016,970 $10,685,629 $11,398,783 2 Other Revenue 3 Fees $22,720 $22,720 $22,720 $22,720 $22,720 4 Other $63,000 $63,000 $63,000 $63,000 $63,000 5 Total Other Revenue $85,720 $85,720 $85,720 $85,720 $85,720 6 Total Revenue $8,887,948 $9,475,755 $10,102,690 $10,771,349 $11,484,503 7 Operating Expenditures 8 Legislative & Administrative $369,768 $380,861 $392,287 $404,055 $416,177 9 Finance Services $1,051,669 $1,083,219 $1,115,716 $1,149,187 $1,183,663 10 Human Resources $186,148 $191,732 $197,484 $203,409 $209,511 11 Development Services $262,319 $270,189 $278,294 $286,643 $295,242 12 Public Works $1,157,381 $1,192,102 $1,227,866 $1,264,701 $1,302,643 13 Treatment $4,421,733 $4,578,047 $4,739,759 $5,264,229 $5,449,893 14 Wastewater Disposal $859,614 $889,925 $921,311 $953,811 $987,464 15 Wastewater Collection $1,304,423 $1,375,961 $1,441,136 $1,510,568 $1,584,610 16 Total Operating Expenditures $9,613,055 $9,962,037 $10,313,854 $11,036,603 $11,429,203 17 Debt Service & Capital Projects 18 Rate Funded Capital Projects $1,700,000 $450,000 $999,000 $608,000 $1,294,000 19 New Proposed Debt $0 $0 $0 $0 $0 20 Total Debt Service $1,700,000 $450,000 $999,000 $608,000 $1,294,000 21 Total Expenses $11,313,055 $10,412,037 $11,312,854 $11,644,603 $12,723,203 22 Net Cashflow ($2,425,107)($936,282)($1,210,164)($873,254)($1,238,701) Line Operating Fund (5200)FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 1 Beginning Balance $15,459,676 $12,166,840 $11,357,647 $10,109,995 $9,245,673 2 Net Cashflow ($2,425,107)($936,282)($1,210,164)($873,254)($1,238,701) 3 Interest Income $142,471 $127,089 $117,628 $108,387 $98,911 4 Transfers from (to) Captial Replacement ($1,010,200)$0 ($155,116)($99,454)($182,363) 5 Ending Balance $12,166,840 $11,357,647 $10,109,995 $9,245,673 $7,923,521 6 Target Reserve Balance $3,204,352 $3,320,679 $3,437,951 $3,678,868 $3,809,734 7 Capital Replacement Fund FYE 2020 FYE 2021 FYE 2022 FYE 2023 FYE 2024 8 Beginning Balance $0 $1,010,200 $1,010,200 $1,165,316 $1,264,770 9 Transfers from Operating $1,010,200 $0 $155,116 $99,454 $182,363 10 New Debt Proceeds $0 $0 $0 $0 $0 11 Debt Funded Capital Projets $0 $0 $0 $0 $0 12 Ending Balance $1,010,200 $1,010,200 $1,165,316 $1,264,770 $1,447,133 13 Target Reserve Balance $1,010,200 $960,585 $1,165,316 $1,264,770 $1,447,133 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 50 CIP and its funding sources (100%Rates/Reserves funded).Figure 5-3 displays the ending total reserve balance for the wastewater utility, inclusive of operating and capital funds. The horizontal trend lines indicates the minimum and target reserve balances and the bars indicate ending reserve balance. No new debt is proposed to be issued as part of the proposed five-year financial plan.It should be noted that reserves are being drawn down to fund capital expenses every year. The reserves exceed the target because the City is saving reserves to fund the Pure Water Program from the City of San Diego. This program is estimated to cost the City approximately $47M over the next ten years. Figure 5-1:Wastewater Operating Financial Plan at Proposed Rates Figure 5-2: Proposed Wastewater Capital Improvement Plan and Funding Source 51 CITY OF POWAY Figure 5-3: Projected Ending Wastewater Reserves at Projected Rates CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 52 Wastewater Cost of Service Analysis 5.2.1.COST OF SERVICE METH ODOLOGY The first step in the COS analysis process is to determine the revenue requirement, which is based on the results of the wastewater financial plan and the proposed revenue adjustments. The framework and methodology u tilized to develop the COS analysis and to apportion the revenue requirement to each customer class and tier is informed by the processes outlined in the WEF Manual of Practice 27.. COS analyses are tailored specifically to meet the unique needs of each wastewater system. However, there are four distinct steps in every analysis to recover costs from customer classes in an accurate, equitable, and defensible manner: 1.Cost functionalization:O&M expenses and capital assets are categorized by their function in the system. Functions include wastewater collection, disposal, treatment , administration, pumps, equipment, etc. 2.Cost causation component allocation:the functionalized costs are then allocated to cost causation components based on their burden on the system. The cost causation components include flow, chemical oxygen demand (COD), total suspended solids (TSS), customer, and general .The revenue requirement is allocated accordingly to the cost causation components and results in the total revenue requirement for each cost causation component. 3.Unit cost development:the revenue requirement for each cost causation component is divided by the appropriate units of service to determine the unit cost for each cost causation component. 4.Revenue requirement distribution:the unit cost is utilized to distribu te the revenue requirement for each cost causation component to customer classes and tiers based on their individual service units. The City’s customer classes include Residential, Commercial based on strength, Industrial and Schools . 5.2.2.REVENUE REQUIREMENT The revenue requirement for the proposed rates will be based on FYE 2020, designated the Test Year.Table 5-16 shows the revenue requirement derivation with the total revenue required from rates. The totals shown in the “Operating” and “Capital” columns are the total O&M and capital revenue requirements, respectively, that are to be recovered through rates. The operating costs (Line 6) flow from Table 5-8. The Debt Service category (Line 10) represents both replacement capital projects (Table 5-9) and any proposed debt. Note there is no debt issuance proposed for FYE 2020. Revenue offsets are composed of various miscellaneous, non -rate revenues, shown in Table 5-6. To arrive at the rate revenue requirement, we subtract these revenue offsets from the combined operating and debt service costs. The adjustments for cash balance represent the drawdown of reserves and the adjustment to annualize the rate increase (Line 18)is due to the mid-year proposed revenue adjustment occurring in March 2020. These are then combined to arrive at the total annual revenue requirement from rates. This is the amount that the City’s rates are designed to collect, for a full year, in the “Total” column at Line 20. 53 CITY OF POWAY Table 5-16:Wastewater Revenue Requirement 5.2.3.MASS BALANCE A cost of service analysis requires that costs are assigned to customers in proportion to their loadings. Customers are divided into different classes as shown in Table 5-2. Since measurement of wastewater flow is expansive and prone to errors, wastewater flow is not measured for most customers. To determine wastewater flow, a mass balance analysis is done by taking the total flow and strength of the wastewater influent into the METRO plant and reducing that by the wastewater loadings of the City’s non - residential customers and inflow and infiltration (I&I). A small quantity of wastewater is estimated to result from I&I, which is water that enters the collection system during rain-related events, run-off, etc. I&I is estimated to be under 2% of the total influent. Multi-family and mobile home customers’ wastewater flow is calculated based on 75% of bimonthly water use for accounts without a landscape meter and 85% of bimonthly water use for accounts with a landscape meter.Non- residential customers’ wastewater flow is calculated based on 75%, 85%, or 90% of bimonthly water use depending on customer class.Wastewater flow for schools is estimated based on the average flow per student per day using 75% or 85% of the water use from the March/April billing period.Residential flow can be estimated after reducing the total wastewater influent by I&I and estimated non-residential wastewater flow. Table 5-17 shows the total annual units of flow and strength for each customer class based on the results of the mass balance analysis.Non-residential loadings for COD and TSS in pounds per year (lbs/year) were calculated based on wastewater flow and sewage strength classifications provided by City staff for different user classifications (e.g. car washes, hotels, restaurants, etc.).Multi-Family and mobile home loadings for COD and TSS in pounds per year (lbs/year) were calculated based on wastewater flow and the residual residential strength of 622 and 278 mg/l of COD and TSS, respectively. The estimated Single-Family residential wastewater flow was derived by subtracting the Multi-Family and mobile home flow from the Net Residential flow.The estimated Single-Family Line Revenue Requirements Operating Capital Total 1 Operating Costs 2 Treatment $4,421,733 $4,421,733 3 Wastewater Disposal $859,614 $859,614 4 Wastewater Collection $1,304,423 $1,304,423 5 Other O&M $3,027,285 $3,027,285 6 Subtotal Operating Costs $9,613,055 $0 $9,613,055 7 Debt Service 8 Rate Funded Capital Projects $1,700,000 $1,700,000 9 New Proposed Debt $0 $0 10 Subtotal Debt Service $0 $1,700,000 $1,700,000 11 Total Revenue Requirements $9,613,055 $1,700,000 $11,313,055 12 Less: Revenue Offsets 13 Fees $22,720 $22,720 14 Other $63,000 $63,000 15 Total Revenue Offsets $85,720 $0 $85,720 16 Less: Adjustments 17 Adjustment for Cash Balance $2,425,107 $2,425,107 18 Adjustment for Mid-Year Increase ($362,090)($362,090) 19 Total Adjustments $2,063,018 $0 $2,063,018 20 Total Revenue Requirement from Rates $7,464,317 $1,700,000 $9,164,317 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 54 residential wastewater flow is 55 gallons per capita per day (GPCD)based on an average household density of approximately 3.19 people. 55 GPCD of wastewater flow is the provisional standard for domestic use in the state of California5. The residential strength of 622 and 278 mg/l of COD and TSS, respectively,is also reasonable based on the residential wastewater flow. Table 5-17:Mass Balance Analysis 5.2.4.FUNCTIONALIZATION AND ALLOCATION OF EXPENSES After determining the revenue requirement, the next step of the COS analysis is to allocate the O&M expenses and capital assets to the following functions: 1.Legislative &Administration –City overhead costs associated with the management of the utility 2.Finance Services –costs associated with customer services, finance, and support services 3.Human Resources –City overhead costs associated with human resources 4.Wastewater Collection –costs of collecting wastewater 5.Public Works –costs associated with operations and maintenance of the utility 6.Wastewater Disposal –costs of transporting wastewater to METRO 7.Treatment –represents costs of wastewater treatment The functionalization of costs allows for the allocation of costs to the cost causation components, which include: 1.Flow –costs associated with the amount of wastewater flow entering the collection system 2.COD –the costs associated with the amount of organic compounds in wastewater.Higher strength wastewater is more costly to treat. 3.TSS –costs associated with the amount of suspended solids in wastewater. Higher suspended solids are also more costly to treat. 4.Customer –costs associated with customer service and billing 5.General –costs that do not have any direct cost causation 5 California Senate Bill No. 7, Chapter 4 Flow (mgd)COD (mg/L)TSS (mg/L)Flow (ccf)COD (lbs/year)TSS (lbs/year) Total Plant Influent 3.20 601 261 1,561,393 5,855,864 2,541,252 Less: I&I 0.06 50 50 31,230 9,747 9,747 Net Plant Influent 3.14 551 211 1,530,163 5,846,117 2,531,504 Non-Residential General Commercial 0.359 365 144 174,949 399,167 157,563 Medium-Low 0.096 606 256 46,867 177,250 74,949 Medium 0.016 1,061 307 7,952 52,702 15,240 Medium-High 0.001 2,529 165 516 8,145 531 High 0.073 2,096 712 35,502 464,577 157,786 Light Industry 0.073 440 220 35,816 98,379 49,189 Industrial Special User 0.055 440 220 26,812 73,648 36,824 Government & Membership Organizations 0.001 286 110 485 866 333 Churches 0.022 385 192 10,748 25,833 12,917 Elementary School 0.032 286 110 15,836 28,274 10,875 Secondary & High School 0.046 288 110 22,214 39,967 15,255 Subtotal Non-Residential Flow 0.77 580 225 377,696 1,368,808 531,461 Net Residential Flow 2.36 622 278 1,152,467 4,477,309 2,000,043 Single Family Residence 1.99 973,206 3,781,039 1,689,015 Multi-Family & Mobile home 0.37 179,261 696,269 311,028 55 CITY OF POWAY 5.2.5.ALLOCATION OF COSTS As detailed in Section5.2.1, functionalizing costs allows us to better distribute costs to the cost causation components.Table 5-18 shows the function categories used in this study in Column A. Columns B through F show the cost causation components. For example, all costs allocated to the Public Works function (Column A,Line 5) are initially allocated to the General cost causation components (Column F, Line 5).Allocation of treatment costs is based on the allocation of those costs provided by the City of San Diego.Table 5-18 shows first the percent distributions, then dollar allocations of each O&M cost. Table 5-18: Wastewater O&M Cost Allocations Table 5-19 distributes the functionalized capital asset values to cost causation factors similar to Table 5-18 and shows the resulting percent and dollar allocations of the different capital assets.Capital costs are allocated based on the system assets because capital costs are incurred to refurbish and replace system assets.Using system assets takes a longer-term view of the allocations of capital costs and provides a consistent allocation of costs from year to year even if the capital costs associated with different types of system assets change every year. Line O&M Allocation Flow COD TSS Customer General Total A B C D E F G 1 Legislative & Administrative 50%50%100% 2 Finance Services 50%50%100% 3 Human Resources 100%100% 4 Development Services 100%100% 5 Public Works 100%100% 6 Treatment 48%28%24%100% 7 Wastewater Disposal 100%100% 8 Wastewater Collection 100%100% 9 10 O&M Allocation Flow COD TSS Customer General Total 11 Legislative & Administrative $0 $0 $0 $184,884 $184,884 $369,768 12 Finance Services $0 $0 $0 $525,835 $525,835 $1,051,669 13 Human Resources $0 $0 $0 $0 $186,148 $186,148 14 Development Services $0 $0 $0 $0 $262,319 $262,319 15 Public Works $0 $0 $0 $0 $1,157,381 $1,157,381 16 Treatment $2,131,275 $1,215,977 $1,074,481 $0 $0 $4,421,733 17 Wastewater Disposal $859,614 $0 $0 $0 $0 $859,614 18 Wastewater Collection $1,304,423 $0 $0 $0 $0 $1,304,423 19 Total O&M Expenses $4,295,312 $1,215,977 $1,074,481 $710,719 $2,316,567 $9,613,055 20 O&M Allocation 45%13%11%7%24%100% CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 56 Table 5-19:Wastewater Capital Cost Allocations The goal of allocating the costs and asset values in Table 5-18 and Table 5-19 is to allocate the total O&M costs and capital assets to the different cost causation components. This results in a percent distribution shown in the last line each of Table 5-18 and Table 5-19.Table 5-20 summarizes those cost allocations. Table 5-20:Wastewater Cost Allocation Distribution Summary Line Capital Asset Allocation Flow COD TSS Customer General Total A B C D E F G 1 General 100%100% 2 Land & Easement 100%100% 3 Pumps 100%100% 4 Collection & Transmission 100%100% 5 Treatment 100%100% 6 Administration 100%100% 7 Buildings & Improvements 100%100% 8 Equipment 100%100% 9 10 Capital Asset Allocation Flow COD TSS Customer General Total 11 General $2,636 $0 $0 $0 $0 $2,636 12 Land & Easement $76,797 $0 $0 $0 $0 $76,797 13 Pumps $2,288,427 $0 $0 $0 $0 $2,288,427 14 Collection & Transmission $9,497,758 $0 $0 $0 $0 $9,497,758 15 Treatment $0 $0 $0 $0 $0 $0 16 Administration $0 $0 $0 $0 $0 $0 17 Buildings & Improvements $0 $0 $0 $0 $0 $0 18 Equipment $570,280 $0 $0 $0 $0 $570,280 19 Total Capital Assets $12,435,899 $0 $0 $0 $0 $12,435,899 20 Capital Asset Allocation 100%0%0%0%0%100% Function Rationale Flow COD TSS Customer General Total O&M O&M Expenses 45%13%11%7%24%100% Capital Capital Assets 100%0%0%0%0%100% 57 CITY OF POWAY 5.2.6.UNITS OF SERVICE Table 5-21 shows the flow, strength, and accounts data for all customer classes. The Flow,COD, and TSS data are derived from the mass balance in Table 5-17. The residential and non-residential customer units in Lines 2 through 13 are from Table 5-3. The school units in Line 15 and 16 are based on the number of students in each grade,or average daily attendance (ADA),provided by the City. Table 5-21: Wastewater Customer Class Data 5.2.7.ALLOCATION OF REVENUE REQUIREMENTS TO COST CAUSATIONCOMPONENTS Table 5-22 shows the allocation of revenue requirements from Table 5-16 to the cost causation components unit cost derivations. The operating revenue requirement shown in Column F, Line 1 of is equal to the operating revenue requirement (Line 20)in Table 5-16. The operating revenue requirement is allocated to the cost causation components using the resulting O&M allocation from Table 5-20.Similarly, the capital revenue requirement in Column F, Line 2 is equal to the capital revenue requirement (Line 20) in Table 5-16 and is allocated to the cost causation factors per Table 5-20. General costs, shown on Line 4, which cannot be tied to a specific function are redistributed in proportion to the resulting allocations of the other cost causation components . The total adjusted cost of service (Line 5) is divided by the relevant units of service from Table 5-21 in Line 7 to calculate the unit cost (Line 9 and Line 10). For example, the unit cost for the Flow component is determined by dividing the total flow cost by total estimated wastewater flow in ccf, while annual Customer costs are divided by the estimated number of bills in each year (number of customers times six bills per year). These unit costs will next be used to distribute the cost causation components to the customer classes. Line Customer Class Flow (ccf)COD (lbs/year)TSS (lbs/year)Customer Units Bills 1 Residential 2 Single Family Residence 973,206 3,781,039 1,689,015 11,420 68,520 3 Multi-Family & Mobile home 179,261 696,269 311,028 154 924 4 Subtotal Residential 1,152,467 4,477,309 2,000,043 11,574 69,444 5 Non-Residential 6 General Commercial 174,949 399,167 157,563 325 1,950 7 Medium-Low 46,867 177,250 74,949 94 564 8 Medium 7,952 52,702 15,240 20 120 9 Medium-High 516 8,145 531 8 48 10 High 35,502 464,577 157,786 56 336 11 Light Industry 35,816 98,379 49,189 18 108 12 Industrial Special User 26,812 73,648 36,824 5 30 13 Government & Membership Organizations 485 866 333 4 24 14 Churches 10,748 25,833 12,917 35 210 15 Elementary School 15,836 28,274 10,875 5,408 108 16 Secondary & High School 22,214 39,967 15,255 5,224 36 17 Subtotal Non-Residential 377,696 1,368,808 531,461 11,197 3,534 18 Total 1,530,163 5,846,117 2,531,504 22,771 72,978 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 58 Table 5-22:Wastewater Unit Cost Calculation Line Flow COD TSS Customer General Total A B C D E F 1 Operating Cost $3,335,212 $944,178 $834,310 $551,857 $1,798,761 $7,464,317 2 Capital Cost $1,700,000 $0 $0 $0 $0 $1,700,000 3 Total Cost of Service $5,035,212 $944,178 $834,310 $551,857 $1,798,761 $9,164,317 4 Allocation of General Costs $1,229,662 $230,580 $203,749 $134,770 ($1,798,761)$0 5 Adjusted Cost of Service $6,264,873 $1,174,758 $1,038,059 $686,627 $0 $9,164,317 6 7 Units of Service 1,530,163 5,846,117 2,531,504 72,978 8 Units ccf lbs/yr lbs/yr bills/yr 9 Unit Cost $4.09 $0.20 $0.41 $9.41 10 Units ccf lbs/yr lbs/yr per bimonthly bill 59 CITY OF POWAY 5.2.8.DISTRIBUTION OF COST CAUSATION COMPONENTS The final step in the cost of service analysis is to distribute the cost causation components to the user classes using the u nit costs derived in Table 5-22, thereby arriving at the cost to serve each customer class.Table 5-23 shows the cost allocation to each class. To derive the cost to serve each class, the unit costs from Table 5-22 are multiplied by the service units shown in Table 5-21 for each customer class. For example, the flow costs for General Commercial usage is calculated by multiplying the flow unit cost by that class’ wastewater flow. Similarly, the Customer cost s are derived by multiplying the Customer unit cost by the total number of bills by class in each year. Similar calculations yield the total cost to serve each user class, as shown in the last column of Table 5-23. We have now calculated the cost to serve each user class and can proceed to derive rates that collect the cost to serve each class. Table 5-23: Allocation of Costs to Customer Classes Customer Class Flow COD TSS Customer Total Residential Single Family Residence $3,984,551 $759,787 $692,591 $644,683 $6,081,613 Multi-Family & Mobile home $733,938 $139,913 $127,539 $8,694 $1,010,083 Non-Residential General Commercial $716,286 $80,211 $64,610 $18,347 $879,454 Medium-Low $191,884 $35,618 $30,733 $5,306 $263,541 Medium $32,555 $10,590 $6,249 $1,129 $50,524 Medium-High $2,111 $1,637 $218 $452 $4,418 High $145,355 $93,355 $64,701 $3,161 $306,573 Light Industry $146,638 $19,769 $20,170 $1,016 $187,593 Industrial Special User $109,775 $14,799 $15,100 $282 $139,956 Government & Membership Organizations $1,986 $174 $137 $226 $2,523 Churches $44,006 $5,191 $5,297 $1,976 $56,469 Elementary School $64,837 $5,682 $4,459 $1,016 $75,994 Secondary & High School $90,950 $8,031 $6,255 $339 $105,576 Subtotal Non-Residential $1,546,384 $275,058 $217,929 $33,250 $2,072,621 Total COS $6,264,873 $1,174,758 $1,038,059 $686,627 $9,164,317 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 60 Wastewater Rate Development This section includes the calculation of wastewater rates and the results of the study.Rates and charges are designed for the study period, FYE 2020 to FYE 2024. Rates and charges in the rate model are assumed to be implemented in March of each year;however, the City will implement the first revenue adjustment in March 2020 and subsequently in January of each fiscal year. 5.3.1.DERIVATION OF PROPOS ED BIMONTHLY FIXED CHARGE We recommend that the City revises its current bimonthly fixed charges shown in Table 5-1 to a uniform bimonthly fixed charge for all customer classes except for schools.Raftelis recommends recovering the elementary and secondary school customers through the commodity rate.Table 5-24 shows the derivation of the uniform bimonthly fixed charge for all customer classes except for schools.More than 50% of the costs of the wastewater utility are fixed;therefore,to increase revenue stability, the City Council decided to increase the revenue collected from fixed charges to 30% from the current 20%.The bimonthly fixed charge was calculated by multiplying the total cost of service for the Single-Family residential customers (Column B) by the 30% fixed revenue percentage (Column C) to arrive at the amount of revenue to be collected by the fixed charge (Column D). The fixed charge allocation was then divided by the annual number of Single-Family residential bills (Column E) to arrive at the bimonthly fixed charge (Column F). Table 5-24: Derivation of the Wastewater Bimonthly Fixed Charge 5.3.2.REVISIONS TO COMMODITY RATES Single-Family residential customers currently pay a seven -tiered volumetric charge based on the 3-year average of the customer’s lowest winter water usage each year. Raftelis recommends revising the volumetric charge for Single- Family residential customers to a uniform volumetric charge based on the customer’s average winter water use. Additionally, Raftelis recommends capping billed wastewater flow to 24 ccf bimonthly. This cap was determined by examining the average bimonthly winter water use of wastewater customers and comparing it to the total wastewater flow calculated to be discharged by residential customers as shown in Table 5-17. Raftelis recommends retaining the uniform commodity rate for all other customer classes. Customer Class COS Fixed Revenue Percentage Fixed Charge Allocation Bills Bimonthly Fixed Charge A B C D E F Single-Family Residential $6,081,613 30%$1,824,484 68,520 $26.63 61 CITY OF POWAY 5.3.3.DERIVATION OF PROPOSED COMMODITY RATES Table 5-25 shows the derivation of the proposed bimonthly commodity rates. The commodity rate for each customer class is calculated using the cost of service by customer class from Table 5-23 and the proposed bimonthly fixed charge from Table 5-24. First, the bimonthly fixed charge (Column C) is multiplied by the number of annual bills (Column D) from Table 5-21 for each customer class to arrive at the total amount of fixed revenue generated for each customer class (Column E). Next, the amount of fixed revenue for each customer class (Column E) is subtracted from the total cost of service by customer class (Column B) to arrive at the variable charge allocation in Column F. The last step in calculating the commodity charge is to divide the variable charge allocation (Column F) by the wastewater flow for each customer class in Column G to arrive at the volumetric commodity rate shown in Column H. Table 5-25:Derivation of the Wastewater Commodity Rates ($/ccf) Customer Class COS Bimonthly Fixed Charge Bills Fixed Revenue Variable Charge Allocation Wastewater Flow Commodity Rate (per WW ccf) A B C D E F G H Residential Single Family Residence $6,081,613 $26.63 68,520 $1,824,484 $4,257,129 973,206 $4.37 Multi-Family & Mobile home $1,010,083 $26.63 924 $24,603 $985,480 179,261 $5.50 Non-Residential General Commercial $879,454 $26.63 1,950 $51,923 $827,531 174,949 $4.73 Medium-Low $263,541 $26.63 564 $15,018 $248,524 46,867 $5.30 Medium $50,524 $26.63 120 $3,195 $47,329 7,952 $5.95 Medium-High $4,418 $26.63 48 $1,278 $3,139 516 $6.09 High $306,573 $26.63 336 $8,947 $297,626 35,502 $8.38 Light Industry $187,593 $26.63 108 $2,876 $184,717 35,816 $5.16 Industrial Special User $139,956 $26.63 30 $799 $139,157 26,812 $5.19 Government & Membership Organizations $2,523 $26.63 24 $639 $1,884 485 $3.88 Churches $56,469 $26.63 210 $5,592 $50,878 10,748 $4.73 Elementary School (ADA)$75,994 $0.00 0 $0 $75,994 15,836 $4.80 Secondary & High School (ADA)$105,576 $0.00 0 $0 $105,576 22,214 $4.75 CITY OF POWAY WATER AND WASTEWATER COST OF SERVICE AND RATE STUDY REPORT 62 5.3.4.PROPOSED WASTEWATER RATE SCHEDULE The proposed rates derived in Table 5-24 and Table 5-25 are increased annually by the proposed revenue adjustments shown in Table 5-13. The resulting proposed rates for the study period are provided in Table 5-26. Table 5-26: FYE 2020-2024 Proposed Bimonthly Wastewater Charges Customer Class Current Charge March 2020 March 2021 March 2022 March 2023 March 2024 Bi-Monthly Fixed Charge All Customer Classes Varies by Meter Size $26.63 $28.31 $30.10 $32.00 $34.02 Commodity Rate per ccf of Wastewater Residential Single Family Residence $5.79 $4.38 $4.66 $4.96 $5.28 $5.62 Multi-Family & Mobile home $4.02 $5.50 $5.85 $6.22 $6.62 $7.04 Non-Residential General Commercial $4.02 $4.74 $5.04 $5.36 $5.70 $6.06 Medium-Low $4.60 $5.31 $5.65 $6.01 $6.39 $6.80 Medium $5.35 $5.96 $6.34 $6.74 $7.17 $7.63 Medium-High $6.85 $6.09 $6.48 $6.89 $7.33 $7.80 High $8.15 $8.39 $8.92 $9.49 $10.09 $10.73 Light Industry $4.22 $5.16 $5.49 $5.84 $6.21 $6.61 Industrial Special User $4.02 $5.20 $5.53 $5.88 $6.26 $6.66 Government & Membership Organizations $4.02 $3.89 $4.14 $4.41 $4.69 $4.99 Churches $4.02 $4.74 $5.04 $5.36 $5.70 $6.06 Elementary School (ADA)$4.02 $4.80 $5.11 $5.44 $5.79 $6.16 Secondary & High School (ADA)$4.02 $4.76 $5.06 $5.38 $5.72 $6.09 63 CITY OF POWAY Bill Impacts Figure 5-4 shows the impacts of the proposed rates on a hypothetical Single-Family Residential customer at different usage levels.Figure 5-5 shows the impacts on a hypothetical Non-Residential customer with a 1” meter and different usage levels. Figure 5-4: Single-Family Residential Wastewater Bill Impact Analysis Figure 5-5:Non-Residential Wastewater Bill Impact Analysis