2021 08-03CITY OF POWAY
CITY COUNCIL REGULAR MEETING
MINUTES
August 3, 2021
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, Caylin Frank, Dave Grosch, Barry Leonard, Steve Vaus
STAFF MEMBERS PRESENT
City Manager Chris Hazeltine; City Attorney Alan Fenstermacher; Interim City Clerk Deborah
Harrington; Development Services Director Bob Manis; Finance Director Aaron Beanan; Human
Resources and Risk Management Director Jodene Dunphy; Public Works Director Eric
Heidemann; Fire Chief Jon Canavan; Captain Dave Schaller, 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 Leonard led the Pledge of Allegiance.
MOMENT OF SILENCE
Mayor Vaus led a moment of silence.
PRESENTATIONS
Welcome the 1st Naval Gunfire Liaison Company (ANGLICO).
Councilmember Mullin provided information regarding the 1st Air Naval Gunfire Liaison Company
(ANGLICO) and presented a Resolution to Sergeant Major Jeremy Black and Lieutenant Colonel
Morris Sharber whom explained that ANGLICO is the premier fire support of the Marine Corps.
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City of Poway — Minutes — August 3, 2021
Mayor Vaus congratulated Poway native Kelsey Plum for winning the gold medal in the women's
3x3 basketball Olympic team.
PUBLIC COMMENT
Carol Triebel discussed the need for a stage at the Mickey Cafagna Community Center for use
during older adult exercise classes.
CONSENT CALENDAR
Motioned by Councilmember Mullin, seconded by Deputy Mayor Leonard to approve
Consent Calendar Items 1 through 5. Motion carried by the following roll -call vote:
Ayes: Mullin, Frank, Grosch, Leonard, Vaus
Noes: None
Abstained: None
Absent: None
Disqualified: None
1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda
2. Adoption of Resolution No. 21-063 entitled "A Resolution of the City Council of the City of
Poway, California, Finding and Declaring the Continued Existence of an Emergency within
the City due to the Novel Coronavirus (COVID-19) Global Pandemic"
3. Approval of Award of Agreement to Bay City Equipment Industries Inc. dba Bay City Electric
Works for Generator and Switchgear Maintenance Services, RFP No. 21-031
4. Adoption of Resolution No. 21-064 entitled "A Resolution of the City Council of the City of
Poway, California, Amending the Investment Policy for Public Funds"
5. Adoption of Resolution No. 21-065 entitled "A Resolution of the City Council of the City of
Poway, California, Supporting the "America Supporting Americans' Adoption Program and
Adopting the 1st Air Naval Gunfire Liaison Company"
ORDINANCES FOR INTRODUCTION
None.
ORDINANCES FOR ADOPTION
None.
PUBLIC HEARINGS
6. Resolution Renewing the Fire Protection Special Tax to be Collected on the Property Tax
Rolls for Fiscal Year 2021-22.
Mayor Vaus opened the public hearing at 7:14 p.m.
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City of Poway — Minutes — August 3, 2021
Finance Manager Stacey Tang presented the item and explained that the City annually
collects various taxes, fees, charges and assessments on the property tax roll and in order to
collect them, it is necessary to adopt a Resolution.
No speakers.
In response to Council inquiry, Deputy Fire Chief Scott Post explained that each residential
lot up to two acres with a dwelling unit is assessed 10 points at $3.12 per point. If there is an
additional dwelling unit on the property or if it exceeds two acres, an additional two points per
acre is assessed.
Mayor Vaus noted that the amount of the tax being assessed has not increased since the tax
amount was passed in 1997.
Councilmember Grosch added that in 1997, the revenues collected by the tax represented
approximately 17 percent of the fire budget as opposed to approximately 5 percent today.
Mayor Vaus closed the public hearing at 7:19 p.m.
Motioned by Mayor Vaus seconded by Councilmember Grosch to adopt Resolution No.
21-066 entitled "A Resolution of the City Council of the City of Poway, California,
Renewing the Fire Protection Special Tax to be Collected on the Property Tax Rolls for
Fiscal Year 2021-22." Motion carried 5/0.
7. Environmental Assessment (EA) 21-001, General Plan Amendment (GPA) 21-001 and GPA
21-002; a staff -initiated request to adopt the City of Poway 2020-2029 Housing Element and
Submittal of the Housing Element Update to the California Department of Housing and
Community Development for 90-Day Review
Mayor opened the public hearing at 7:20 p.m.
City Planner David DeVries presented the report along with a PowerPoint presentation. Mr.
DeVries stated that there was a public outreach program coordinated by the City. Six
comments were received during the 30-day public review period and as a result, staff will
update the 2020-2029 Housing Element to include some minor changes.
Yuri Bohlen expressed concern on how the number of units are not evenly distributed
throughout the City.
Michael Yee via teleconference, expressed concern regarding transportation.
Mayor Vaus closed the public hearing at 7:31 p.m.
In response to Council inquiry, Mr. DeVries explained that Regional Housing Needs
Assessment (RHNA) numbers are negotiated by SANDAG which are then presented to the
California Department of Housing and Community Development (HCD). Once the numbers
are accepted by HCD, the Cities then distribute the housing units among the 19 jurisdictions
in San Diego County.
In response to Council inquiry, Fire Chief Canavan explained that the high fire areas were
determined by the State of California. Chief Canavan stated that after the Oakland Hills fires
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City of Poway — Minutes — August 3, 2021
of 1991 the State of California passed the Bates Bill directing Cal -Fire to conduct an
assessment and identified very high fire hazard severity areas in Poway.
In response to Council inquiry, Mr. DeVries explained that a credit of approximately 300 units
was given by the HCD for housing that was planned or under construction.
Motioned by Councilmember Frank, seconded by Councilmember Mullin to adopt
Resolution No. 21-067 entitled "A Resolution of the City Council of the City of Poway,
California, Adopting a Negative Declaration (Environmental Assessment) For General
Plan Amendment 21-001 and 21-002 for the Adoption of City of Poway Housing Element
Update (2020-2029)" and Resolution No. 21-068 entitled "A Resolution of the City
Council of the City of Poway, California, Approving General Plan Amendment 21-001
and 21-002 for the Adoption of City of Poway 2020-2029 Housing Element." Motion
carried 5/0.
STAFF REPORTS:
8. Provide Information Regarding Pension Obligation Bonds and Adopt a Resolution Authorizing
Judicial Validation Proceedings for the Proposed Pension Debt Refinancing and Related Bond
Financing Agreements
Director of Finance Aaron Beanan presented the report along with a PowerPoint presentation.
Mr. Beanan provided information regarding the California Public Employees Retirement
System (CaIPERS) and the history of the City's pension plan. Mr. Beanan explained that due
to low interest rates, the City has an opportunity to potentially generate future savings by
refinancing certain pension obligations with CaIPERS using pension obligation bonds (POBs).
He went on to explain that POBs are taxable debt issued by governmental employers to retire
all or a portion of their Unfunded Accrued Liability (UAL) and some of the benefits of POBs
would provide budgetary savings, interest rate savings and preserve reserve and service
levels.
Fieldman Rolapp & Associates Principal Jim Fabian explained what a pension obligation bond
is and the options that the City has to issue them. Mr. Fabian went on to explain that there is
a UAL unfunded actuarial liability that is on the City's books and the options to pay that off
with the issuance of POBs. There are two different scenarios, 85 percent funded scenario and
100 percent funded scenario.
Bartel Associates Vice President Mary Beth Redding reported the projected change in the
City's future cash flows with and without a POB. Ms. Redding explained that if a POB is issued,
the City would take on the obligation for a future debt service and invest the funds with
CaIPERS, reducing the unfunded liability which could reduce the required contributions. Ms.
Redding further elaborated that an actual calculation of savings will depend on future years'
CaIPERS investment return which in most scenarios the City's cash flow with POB will be
lower, but in some scenarios the cash flow will be higher if the investment return is very bad
or very good.
No speakers.
In response to Council inquiry, Mr. Fabian explained that what drives the interest rate is the
rating it has received and if there is a delay in the bond sale, he recommends waiting until
January 2022.
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City of Poway — Minutes — August 3, 2021
In response to Council inquiry, Mr. Beanan explained that CaIPERS has made an effort to put
policies in place and strengthen the likelihood for them to achieve their discount rate targets
and increase the funds sustainability over time. Mr. Beanan added that the discussion on a
potential bond sale is occurring now due to Council interest and a low interest rate
environment. He went on to explain that the analyses that were run included a contingency
that had a higher interest rate to account for adverse movements in the market.
In response to Council inquiry, Ms. Redding explained that the analysis conducted determined
that the average of the successful trial was $12 million dollars, and the average of the
unsuccessful trials was a $5 million dollar loss.
Motioned by Deputy Mayor Leonard, seconded by Mayor Vaus to adopt Resolution No.
21-069 entitled "A Resolution of the City Council of the City of Poway, California,
Authorizing the Issuance of Bonds to Refund Certain Pension Obligations of the City,
Approving the Form and Authorizing the Execution of a Trust Agreement and Purchase
Contract, Authorizing Judicial Validation Proceedings Relating to the Issuance of Such
Bonds and Approving Additional Actions Related Thereto." Motion carried 5/0.
WORKSHOPS:
None.
COUNCIL -INITIATED ITEMS:
9. Town Center Arch Entry Sign
Deputy Mayor Leonard and Councilmember Frank presented the report along with a
PowerPoint presentation regarding the Town Center Arch Entry Sign.
Council expressed enthusiasm and support of the installation of a Town Center Arch Entry
Sign.
Yuri Bohlen expressed support of the concept with no tax dollars expended and suggested
the sign be placed at the beginning of Poway Road.
Council concurred to support the concept of a Poway welcome arch, community
fundraising effort and the creation of a subcommittee to work with the Poway Valley
Garden Club and other organizations.
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C.
53232(d))
The Mayor and Council made announcements and reported on various events taking place in the
City. No action was taken.
CITY MANAGER ITEMS:
None.
CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session)
10. Conference with Legal Counsel — Anticipated Litigation
Government Code § 54956.9(d)(2) — one (1) case
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City of Poway — Minutes — August 3, 2021
11. Conference with Labor Negotiators
Government Code Section 54957.6
Designated City Representatives: Chris Hazeltine, Wendy Kaserman, Aaron Beanan and
Jodene Dunphy
Employee Organizations: Poway Firefighters' Association
City Attorney Alan Fenstermacher announced that there was no reportable action at the
Closed Session held on Tuesday July 20, 2021. At his request, Mayor Vaus adjourned the
meeting into Closed Session at 9:04 p.m.
City Council came out of Closed Session at 9:37 p.m.
ADJOURNMENT
The meeting adjourned at 9:37 p.m.
Deborah Harrington
Interim City Clerk
City of Poway, California
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