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02-21-2023 Agenda PacketAGENDA Poway City Council Council Chamber I 13325 Civic Center Drive I Poway, CA I 92064 February 21, 2023 I 7 p.m. Thank you for participating in your local government and the City of Poway Council meetings. Meetings I Regular City Council meetings are held on the first and third Tuesday of the month at 7:00 p.m. Meetings I Regular City Council meetings are held in the Council Chambers located at 13325 Civic Center Drive, Poway, CA 92064, the Council Chamber will be open to the public. Public participation is encouraged in a number of ways as described below. Members of the public may attend the City Council meeting in person, watch the City Council meeting live online, or participate remotely via Zoom. Regular City Council meetings are broadcast live on Cox Communication Channel 24 and Spectrum Channel 19. Council meeting videos are archived and available for viewing on the City's website. IN-PERSON SPEAKERS: Persons wishing to address the Council on matters not on the agenda may do so under Public Comment. 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. To Watch Live: www.poway.org/councilmeetings To Speak and Participate Remotely: Go to: www.poway.org/meeting and join using "Computer Audio" If your electronic device has no microphone or speakers: Call: (877) 853 -5247 Enter Meeting ID: 623 291 9830 Enter Participant ID provided on your computer PLEASE NOTE: If you wish to participate, please also read the Remote Speakers section for detailed instructions. REMOTE SPEAKERS: If viewing online or calling in via telephone, it is highly recommended to log in to the waiting room at least 15 minutes prior to the commencement of the meeting. Persons wishing to address the Council on matters not on the agenda may do so under Public Comment. Those wishing to speak on items on the agenda may do so when the item is being considered. If you wish to speak and are joining the meeting online, please let the City Clerk know prior to the meeting or the Steve Vaus Mayor Barry Leonard Deputy Mayor Brian Pepin Councilmember Caylin Frank Councilmember Peter De Hoff Councilmember announcement of the item by raising your hand digitally or by submitting a chat. If you are not using your computer's audio, please remember to enter your Participant ID on your computer screen when prompted on the phone. If you choose to call in without logging in online and you wish to speak on an item, you may press *9 when the Mayor asks for speakers at the time that the item you wish to speak on is being considered. You may speak up to three (3) minutes. The Mayor may reduce this time if there are a large number of speakers. PLEASE NOTE: Comments received via email before 3:00 p.m. the day prior to the meeting will be distributed to the City Council as well as be made available online prior to the City Council meeting. Techn ical Support I For more information on how to connect, visit www.poway.org/meetinghelp. Agenda Materials I 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. Sign up at https://poway.org/li st.aspx to receive email notifications when City Council agendas are published online. Items listed on the agenda with a "#" symbol are in preparation. American Disabilit ies Act Title 11 I 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. 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 CALL TO ORDER: ROLL CALL: PLEDGE OF ALLEGIANCE: MOMENT OF SILENCE: PRESENTATION: None PUBLIC COMMENT: In acco rdance with State law, an item not scheduled on the agend a may be brought forward by the general public for co mment; however, the City Council will not be abl e to discuss or take action on any issue not included on the agenda. You may speak up to three (3) minutes. Speak ers have on e oppor·tunity to address the Council under Public Comment. CONSENT CALENDAR: The Consent Calendar may be en acted in one motion by the Council with a Roll Call Vote without discussion unless a Council member, a member of the public, or City Manager requests that an item be removed for di scu ssion. 2 of 4 Regular City Council Meeting February 21, 2023 1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda 2. Resolution Finding and Declaring an Emergency Within the City of Poway No Longer Exists Due to the Novel Coronavirus (COVID-19) Global Pandemic 3. City's Investment Report as of December 31, 2022 4. Resolution to Award Bid to Vulcan Materials Company for Portions of the Bid, Terminate Portions of the Bid, and Authorize Open Market Purchase or Competitive Negotiations for Asphalt, Aggregates and Related Materials; Bid No. 23-006 5. Award of Contract to Danny Letner, Inc. DBA Letner Roofing Company for the Poway Swim Center Locker Room Roof Replacement Project; RFP No. 23-011 6. Award of Contract to GQ Builders, Inc., for the Fire Station 1 Stairway Replacement Project, Bid No. 23-007 and Determination the Project is· Categorically Exempt from the California Environmental Quality Act (CEQA) ORDINANCES FOR INTRODUCTION: None PUBLIC HEARINGS: 7. Conditional Use Permit (CUP) 20-004 and Development Review (DR) 20-005; a request to construct and operate a three-story 36-room hotel on a 1.23-acre vacant lot located on 14082 Stowe Drive; APN: 323-481-19-00 and determination that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15332 City Manager's Recommendation: It is recommended the City Council take public input, close the public hearing, and adopt the Resolution approving CUP 20-004 and DR 20-005 for the construction of a three-story 36-room hotel and determine that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15332. STAFF REPORTS: 8. Lake Poway Upper Playground Design Presentation and Appropriation of Additional Funds for Construction and Determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA) City Manager's Recommendation: It is recommended the City Council 1) appropriate additional funds in the amount of $1,191,293 from the Park Improvement Fund (4110-30504112) for the construction of the Lake Poway Upper Playground Renovation Project (CIP #PK020), and unappropriate the original $342,505 from the Lake Poway Upper Playground Renovation Project (PK020) back to the General Fund Unassigned Fund Balance (F1000); and 2) make a determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA). 3 of 4 Regular City Council Meeting February 21, 2023 WORKSHOPS: None COUNCIL-INITIATED ITEMS: None COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1 234 -(G.C. 53232(d)) CITY MANAGER ITEMS: CITY ATTORNEY ITEMS: (In cluding any publi c re port of any action taken in closed session) CLOSED SESSION: None AD!OURNMENT State of California County of San Diego ) ) 55, ) AFFIDAVIT OF POSTING I, Carrie Gallagher, CMC, City Clerk of the City of Poway, hereby declare under penalty of perjury that this notice of a Regular Meeting as called by the City Council of the City of Poway was posted and provided on February 14, 2023. Said meeting to be held at 7:00 p.m., February 21, 2023, in the Poway City Council Chambers, 13325 Civic Center Drive, Poway, California. Said notice was posted on the Bulletin Board at the entrance to City Hall. ~~ Carrie Gallagher,CMC,CityC/erk ~ 4 of4 Regular City Council Meeting February 21, 2023 DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway February 21, 2023 Honorable Mayor and Members of the City Council Jeff Chumbley, Fire Chief ru Jeff Chumbley, Fire Chief (858) 668-4461 or jchumbley@poway.org CITY COUNCIL Resolution Finding and Declaring an Emergency Within the City of Poway No Longer Exists Due to the Novel Coronavirus (COVID-19) Global Pandemic The Novel Coronavirus (COVID-19) global pandemic had an impact to economic and social segments of the United States. Federal, state, and county directives, mandates and orders to manage COVID- 19 have subsided to the point of a local state of emergency no longer being required, necessary, or appropriate. On March 18, 2020, the City Council approved a resolution proclaiming a local emergency. The adopted resolution requires the City Council to either continue the emergency action or declare the emergency ended at each regular meeting. Based on a recent announcement by the State of California that the COVID-19 State of Emergency will expire on February 28, 2023, this staff report includes a resolution for City Council consideration finding and declaring a local emergency no longer exists due to the COVI D-19 global pandemic. Recommended Action: It is recommended the City Council approve a resolution finding and declaring an emergency within the City of Poway no longer exists and to allow the local emergency to expire concurrently with the statewide emergency, effective on February 28, 2023. Discussion: The COVID-19 global pandemic impacted business, education, healthcare, military, and social segments of the United States. Federal, state, and county directives, mandates and orders to manage COVID-19 have subsided to the point of a local state of emergency no longer being required, necessary, or appropriate. In response to the COVID-19 global pandemic, and its impact on Poway, the City Manager, serving as Director of Emergency Services for the City of Poway, proclaimed a local emergency on March 13, 2020. On March 18, 2020, the City Council approved Resolution No. 20-013 ratifying the City Manager's Proclamation of Local Emergency. The City Council approved to continue the emergency action at each council meeting in 2020, 2021, 2022, and in 2023 through the February 7, 2023 City Council Meeting. The adopted resolution requires the City Council to either continue the 1 of 4 February 21, 2023, Item #2 emergency action or declare the emergency ended at each regular meeting. Based on a recent announcement by the State of California that it plans to end the COVID-19 State of Emergency on February 28, 2023, this staff report includes a resolution for City Council consideration finding and declaring a local emergency no longer exists due to the COVID-19 global pandemic. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: As of February 02, 2023, City costs to respond to COVID-19 are estimated at $1,452,133. These costs specifically relate to FEMA eligible expenditures. Per the City Council adopted General Fund Reserve policy, the City maintains a General Fund Reserve of 45 percent of the budgeted annual General Fund operating expenditures, or $20,441,896 as of June 30, 2022. Within that 45 percent, $13,227,618 is set aside for Extreme Events/Public Safety. Although it is difficult to estimate the full economic impact of the pandemic, staff believes that most of the prior expenditures have been recovered under State and Federal Disaster programs. Amounts recovered under these programs have been used to replenish the General Fund reserve. Pursuant to the reserve policy, staff will return with a plan to replenish any General Fund reserves not replenished under a State or Federal Disaster program. In addition to using reserves to respond to COVID-19, on April 20, 2020, the City Council approved $2,000,000 to fund the Poway Emergency Assistance Recovery Loans (PEARL) program for small businesses. The PEARL program's goal was to offer financial assistance to small businesses located in Poway by serving as a financial bridge to businesses while they were awaiting state and federal funding provided in response to the pandemic. Thirty-five loans totaling $1,328,188 were approved and five loans totaling $198,000 have been repaid in full, two loan recipients began making monthly payments in January. The total outstanding balance for all loans is $1,127,997. With the anticipated end of the City's local emergency at the February 21, 2023 City Council meeting, all PEARL loan recipients have been notified that loans must be paid in full no later than May 23, 2023 to avoid interest accruing on the loans. In accordance with the loan application documents, loan recipients opting to make monthly payments will have three years to repay the loans with a 3% annual interest rate. The reserve fund will be replenished from the repayment of PEARL loans over a three-year period following the end of the local COVID-19 emergency. This period falls within the General Fund Reserve Policy's direction to fully replenish reserves within five years of use. Public Notification: None. Attachments: A. Resolution Reviewed/Approved By: Assistant City Manager 2 of 4 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager February 21, 2023, Item #2 RESOLUTION NO. 23- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, FINDING AND DECLARING AN EMERGENCY WITHIN THE CITY NO LONGER EXISTS DUE TO THE NOVEL CORONAVIRUS (COVID-19) GLOBAL PANDEMIC WHEREAS, the Novel Coronavirus (COVID-19) global pandemic in the City of Poway, commenced on or about January 24, 2020, and created a threat to public health and safety; WHEREAS, on March 4, 2020, the Governor of the State of California declared the existence of a statewide emergency based on the COVID-19 pandemic; WHEREAS, Government Code section 8630 and Poway Municipal Code (PMC) Section 2.12.060 empower the City Manager, acting as the Director of Emergency Services, to proclaim the existence of a local emergency when the City is affected by a public calamity, and the City Council is not in session; WHEREAS, on March 13, 2020, the City Manager, acting pursuant to Government Code section 8630 and PMC section 2.12.060 and based on the state and County of San Diego declared emergencies, proclaimed the existence of a local emergency based on conditions of extreme peril to the health and safety of persons caused by the Novel Coronavirus (COVI D-19) global pandemic; WHEREAS, on March 18, 2020, the City Council, acting pursuant to Government Code section 8630 and PMC section 2.12.065, ratified the existence of a local emergency within seven (7) days of a Proclamation of Local Emergency by the City Manager; WHEREAS, the City Council, acting pursuant to PMC section 2.12.065, approved extending the emergency declaration during regularly scheduled meetings in 2020 on April 7, April 21, May 5, May 19, June 2, June 16, July 7, July 21, August 4, September 1, September 15, October 6, October 20, November 17, December 1, December 15, and in 2021 on January 19, February 2, February 16, March 2, March 16, April 6, April 20, May 4, May 18, June 1, June 15, July 20, August 3, August 17, September 7, October 5, October 19, November 2, November 16, December 7, and in 2022 on January 18, February 1, February 15, March 1, March 15, April 5, April19, May3, May17, June?, June21, July19, August2, August16, September20, October 4, October 18, November 15, and December 6, and in 2023 on January 17 and February 7· I WHEREAS, the Governor of the State of California has announced that the statewide COVID-19 declared emergency will expire on February 28, 2023; and WHEREAS, for all the same reasons cited by the State of California in allowing the statewide state of emergency to expire, the COVID-19 pandemic has subsided to the point of a local state of emergency no longer being required, necessary or appropriate. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Poway hereby finds and declares: 3 of 4 ATTACHMENT A February 21, 2023, Item #2 Resolution No. 23- Page 2 SECTION 1: An emergency no longer exists within the City as the result of the Novel Coronavirus (COVID-19) global pandemic, and the City Council hereby finds and declares that it will allow the local emergency to expire concurrently with the statewide emergency, effective on February 28, 2023. PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 21st day of February, 2023 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 4of4 February 21, 2023, Item #2 DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT February 21, 2023 Honorable Mayor and Members of the City Council Tim McDermott, Interim Director of Finance ~ Tim McDermott, Interim Director of Finance (858) 668-4411 or tmcdermott@poway.org City's Investment Report as of December 31, 2022 ' City of Poway CITY COUNCIL Quarterly reports of investments are required to be presented to the City Council per state code and the City's Investment Policy. Attached is an investment portfolio report as of December 31, 2022. Recommended Action: It is recommended the City Council accept and file the attached report. Discussion: Pursuant to Government Code Sec. 53646(b)(1) and the City's Investment Policy, the Interim Director of Finance (i.e., City Treasurer) renders a quarterly investment report to the City Council concerning the investment portfolio's earnings and performance results. In accordance with the Investment Policy, the quarterly report includes information such as the investment type, issuer, date of maturity, par value, amount invested, current market value, and the source of the market value information. The City is in compliance with its adopted investment policy, and the City's investment program provides sufficient liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of December 31, 2022, was $119,041,045. It consisted of the following: Investment Portfolio Total Cash $202,255 Deposits at CalTRUST 22,842,949 Deposits at the Local Agency Investment Fund (LAIF) 21,089,325 U.S. Treasury Notes 27,273,744 U.S. Instrumentalities 26,374,063 Corporate Notes 21,258,709 Fair Value of Investment Portfolio as of December 31, 2022 $119,041,045 1 of 30 February 21, 2023, Item #3 It is the City's practice to keep funds (including those identified to pay for Capital Improvement Projects) invested and earning interest until they are needed. In addition to changing market conditions, reductions in the fair value of the Investment Portfolio can also be reflective of payments for large capital projects as well as operational expenses. Additional funding was needed in November and December to issue debt service payments. The attached portfolio report (Attachment B) and investment report (Attachment C) were prepared by the City's investment manager, Insight Investment, with input from the City's Finance Department. The portfolio report includes all investments while the investment report includes only those investments managed by Insight Investment. All City funds, including the General Fund, Water Fund, Wastewater Fund and others -except those identified in Attachment D, are pooled and invested, with earned interest allocated quarterly based on the average daily cash balance in each fund. The funds on deposit at LAIF and CalTRUST earn interest at variable rates. The interest rate for the month ending December 31, 2022, is estimated at 2.17% for LAIF, 3.05% for the CalTRUST short-term fund, and 2.43% for the CalTRUST medium-term fund. For fixed income securities, the difference between amortized cost and fair value is considered an unrealized gain or loss. A realized loss is when the principal of the security is redeemed before its maturity date at a fair value lower than its amortized cost value. The amortized cost value of the externally managed investment portfolio is $77,129,895; the fair value is $75,108,771 for an unrealized loss of $2,021,124 or -2.62% of the total amortized cost value. The source of the fair value information for the U.S. Treasury Notes, the U.S. Instrumentalities, Corporate Notes, and Municipal Bonds is Interactive Data Corporation. Also included with this report are recaps of the City's cash and investments held by fiscal agents, non- managed investments, and cash on hand. The total book value of the cash and investments held by our fiscal agent, U.S. Bank, at December 31, 2022, was $202,255. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $150,325 at December 31, 2022. The City's cash on hand at December 31, 2022 totaled $5,779,364. The December 31, 2022, balance of the City's Library Trust Fund is $261,945. Through the Fiscal Year 2022-23 period ending December 31, 2022, no transfer of interest earnings has been transferred to the General Fund. At the close of Fiscal Year 2022-23, 90% of the Library Trust Fund's interest earnings will be transferred to the General Fund to partially offset library operating costs. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The externally managed investment portfolio earned $130,069 interest during December 2022, as well as $120,491 interest during November 2022, and $123,608 during October 2022. Fees for investment services during this period totaled $9,340. 2 of 30 February 21, 2023, Item #3 Public Notification: None. Attachments: A. Investment Statistics B. Investment Portfolio Report prepared by Insight Investment C. Investment Report prepared by Insight Investment D. City of Poway Investments and Cash with Fiscal Agent; General, Payroll, and Petty Cash Report at December 31, 2022 Reviewed/Approved By: Assistant City Manager 3 of30 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager February 21, 2023, Item #3 City of Poway Investment Statistics Separately Managed Investment Pools Fair Value: CalTRUST Short-Term Deposits CalTRUST Medium-Term Deposits Deposits at the Local Agency Investment Fund (LAIF) Total Fair Value Weighted Average Yield Effective Average Duration in days Weighted Average Maturity in days Externally Managed Investment Pools Fair Value: Cash U. S. Treasury Notes U. S. Instrumentalities Corporate Bonds Total Fair Value Amortized Cost Value: Cash U. S. Treasury Notes U. S. Instrumentalities Corporate Bonds Total Amortized Cost Value Unrealized Gain (Loss) Unrealized Gain (Loss) Percentage Accrued Interest Earned Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Total Fair Value of Portfolio Assets Weighted Average Yield Effective Average Duration in years Weighted Average Maturity in years Glossary of Yield Terminology December September 2021 2022 33,912,075 11,409,244 11,442,789 11,232,705 11,744,381 28,523,955 57,099,245 51,165,904 0.24% 1.75% 1 1 1 1 213,218 32,182 15,853,027 28,001,371 29,733,396 25,240,127 21,100,020 21,214,999 66,899,661 74,488,679 213,218 32,182 15,789,778 28,984,175 29,480,781 25,943,209 20,881,599 21,862,328 66,365,376 76,821,895 534,285 (2,333,216) 0.81% -3.04% 132,480 115,610 1.43% 1.58% 1.53 1.22 1.67 1.33 123,998,906 125,654,583 0.88% 1.65% 0.83 0.72 0.90 0.79 Coupon: A bond's coupon is the periodic interest payment made to the holder of the fixed income security during the life of the bond. Coupon payments can be made monthly, quarterly, or annually. Book Yield: The Book Yield is that rate of return that will make the present value of the future cash flows of a fixed income security equal to the price paid for the security. This assumes that the security will be held to its maturity. Current Yield: Annual rate of return on an investment expressed as a percentage. Current Yield of a fixed income security is the annualized earnings (coupon) divided by the bond's market value as of the valuation date. One Year Total Yield: The One Year Total Yield or One Year Return represents the portfolio's percentage change over a year's time, factoring in interest payments, changes in market value and reinvestment of distributions. December 2022 11,500,594 11,342,355 21,089,325 43,932,274 2.47% 1 1 202,255 27,273,744 26,374,063 21,258,709 75,108,771 202,255 21,798,450 26,966,500 28,162,691 77,129,895 (2,021,124) -2.62% 130,069 1.84% 1.35 1.48 119,041,045 2.07% 0.85 0.93 Weighted Average Yield: The total yield on a bond portfolio divided by the number of bonds contained in ii, weighted for the size of each bond so that the yield of large holdings does not drown out the calculation of yields on small holdings. Yield to Maturity: The Yield to Maturity (YTM) or Market Yield to Maturity of a fixed income security is that rate of interest that will make the present value of the future cash flows equal to the market value as of the valuation date, assuming the bond is held to maturity. 4 of 30 ATTACHMENT A February 21, 2023, Item #3 City of Poway Monthly Investment Portfolio Report December 31, 2022 Separately Managed Investment Pools % Return LAIF $ 21,089,325 48% 2.17% CalTrust -Short $ 11,500,594 26% 3.05% CalTrust -Medium $ 11,342,355 26% 2.43% Total Internally Managed $ 43,932,274 37% Weighted Average Yield 2.47% Days Effective Average Duration -Internal 1 Weighted Average Maturity-Internal 1 Externally Managed Assets % Return Cash $ 202,25S 0% 0.60% Treasury Securities $ 27,273,744 36% 1.95% Instrumentality Securities $ 26,374,063 35% 1.72% Corporate Notes $ 21,258,709 28% 1.85% Total Externally Managed $ 75,108,771 63% Weighted Average Yield 1.84% Years Effective Average Duration -External 1.35 Weighted Average Final Maturity -External 1.48 Total Portfolio Assets % Return LAIF $ CalTrust -Short $ CalTrust -Medium $ Cash $ Treasury Securities $ Instrumentality Securities $ Corporate Notes $ Total Portfolio Assets $ Weighted Average Yield Effective Average Duration -Total Weighted Average Maturity -Total Portfolio Change Beginning Balance Ending Balance Assets values shown at Market 5 of30 21,089,325 18% 2.17% 11,500,594 10% 3.0S% 11,342,355 10% 2.43% 202,255 0% 0.60% 27,273,744 23% 1.95% 26,374,063 22% 1.72% 21,258,709 18% 1.85% 119,041,045 2.07% Years 0.85 0.93 $ $ CalTrust -Short, 26% Securities 27% 118,818,527 119,041,045 ATTACHMENT B LAIF, 48% Cash, 0% Treasury Securities, 36% Instrumentality Securities, 35% CalTrust -Short CalTrust - 12% Cash 0% 28% February 21, 2023, Item #3 6 of30 ATTACHMENT C February 21, 2023, Item #3 ..... Contents 0 .... w 0 Fixed income market review 3 Activity and performance summary 4 Recap of securities held 6 Maturity distribution of securities held 7 Securities held 8 GASB 40-Deposit and investment risk disclosure 13 Securities purchased 17 Securities sold and matured 18 Detail of return and interest received 19 Transaction report 22 Additional information 23 February 21, 2023, Item #3 FIXED INCOME MARKET REVIEW As of December 31, 2022 00 0 .... w 0 Chart 1: The Fed adjusted its dot plot again, but to a lower extent again 6 5 4 ~3 2 1 0 ~ '.\,<o ◊ :;;;f :;;;f :;;;f <,_/l; <,_q; <,_/l; ..... ~ ... /: ·-=···.~:-....... FedOotPlot • • • • • • • ~, December 2022 . . . . . . :--... June 2022 •; September2022 . • • • • •M;r;h 2022 • • • • • • • ~ecember 2021 . . . . . · .... '.\,'b ..e, ~ '.\,"',, '.\,"' ~ <,_~ <,_~ <,_~ <,_~ <,_~ <,_~ ~ ~ <,_~ <,_~ --Fed Funds Rate Source: Federal Reserve, December 31, 2022 Chart 2: Wage growth remained strong 21 20 ._ 19 :::, 0 :: 18 Q) C. <I'> 17 16 15 2017 2018 2019 2020 2021 --Average hourly earnings -leisure and hospitality Source: Bloomberg, December 31, 2022 2022 CITY OF POWAY Economic Indicators and Monetary Policy The Federal Reserve, as expected, announced a "downshift" in its policy tightening. It raised the upper bound of its policy rate by SObp, from 4% to 4.5%, following four consecutive 75bp hikes. The Fed was; however, clear that it still has more hiking to do in 2023. Fed Chair Powell stated that rates are still "not sufficiently restrictive". The Fed once again raised its "dot plot" projections, albeit to a lesser extent than they have at each quarterly meeting this year (see Chart 1 ). The Fed's most notable (and most anticipated) change was to its 2023 year-end forecast, now at 5.13%, up from 4.65%. Only two of the 19 voting members projected a lower rate (at 4.88%). For the second month in a row, inflation came in lower than expected. Headline CPI was 0.1 % month-on-month and core CPI was 0.2%, taking the year-on-year figures to 7.1 % (the lowest since last December) and 6% (the lowest since July). respectively. Most areas of the report offered good news, outside of the stubborn rental and food components. For the second month in a row, core goods prices were in deflation, this time at-0.4% month-on-month. Used car prices were the second largest negative contributor and leading indicators, such as the Manheim Used Car Index, fell -14.2% last month, its largest decrease ever. The labor market remained tight. US economy added 263,000 new jobs in November, above consensus for 200,000. Job growth was broad-based. The service sector remained strong with leisure and hospitality up 88,000. Wage growth surged higher, up 0.6%, or 5.1 % year-on- year, raising further inflation concerns (Chart 2). The unemployment rate stayed at 3.7%. The participation rate fell from 62.2% to 62.1 %. The ratio of jobs to unemployed people remained at ~1.7. The housing market also continued to struggle. Existing home sales have fallen 40% from the peak in late 2020. Building permits fell by 11.2% month-on-month in November and housing starts fell 0.5% month-on-month. Interest Rate Summary Yields rose toward the belly of the curve. At the end of December, the 3-month US Treasury bill yielded 4.41 %, the 6-month US Treasury bill yielded 4. 77%, the 2-year US Treasury note yielded 4.43%, the 5-year US Treasury note yielded 4.01 % and the 10-year US Treasury note yielded 3.88%. February 21, 2023, Item #3 ACTIVITY AND PERFORMANCE SUMMARY For the period December 1, 2022 -December 31, 2022 IJ) 0 :; J Amortized Cost Basis Activity Summary 0 Opening balance Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfollo transfers Realized gain (loss) Change in accruals from security movement Total amortization expense Total 01D/MKT accretion Income Return of capital Closing balance Ending fair value Unrealized gain (loss) 166,637.10 0.00 Comparative Rates of Return (%) *Twelve * Six month trailing month trailing Fed Funds Overnight Repo Merrill Lynch 3m US Treas Bill Merrill Lynch 6m US Treas Bill ML 1 Year US Treasury Note ML 2 Year US Treasury Note ML 5 Year US Treasury Note * rates reflected are cumulative 1.68 1.64 1.95 2.30 2.79 2.98 2.86 1.46 1.44 1.62 1.80 2.00 1.94 1.66 76,968,662.66 166,637.10 0.00 0.00 0.00 0.00 (44,163.62) 38,759.15 0.00 77,129,895.29 75,108,770.85 (2,021,124.44) * One month 0.34 0.34 0.35 0.37 0.39 0.36 0.31 Detail of Amortized CQst Basis Return Interest Accretion Realized earned {amortization) gain (loss) Cash and Cash Equivalents 214.83 0.00 0.00 Corporate Bonds 57,378.60 (21,292.75) 0.00 Government Agencies 46,810.40 (4,928.95) 0.00 Government Bonds 25,665.53 20,817.23 0.00 Total 130,069.36 {5,404.47) 0.00 Summary of Amortized Cost Basis Return for the Period Interest earned Accretion (amortization) Realized gain (loss) on sales Total income on portfolio Average daily amortized cost Period return (%) YTD return (%) Weighted average final maturity in days -----" ---·-- CITY OF POWAY Total income 214.83 36,085.85 41,881.45 46,482.76 124,664.89 Total portfolio 130,069.36 (5,404.47) 0.00 124,664.89 77,074,034.68 0.16 1.49 540 4 February 21, 2023, Item #3 ACTIVITY AND PERFORMANCE SUMMARY For the period December 1, 2022 -December 31, 2022 .... 0 ~ I Fair Value Basis Activity Summary o Opening balance 74,910,625.26 Income received Total receipts Total disbursements lnterportfolio transfers Total lnterportfollo transfers Unrealized gain (loss) on security movements Change in accruals from security movement Return of capital Change in fair value for the period Ending fair value 166,637.10 0.00 Comparative Rates of Return (%} Fed Funds Overnight Repo ICE Bofa 3 Months us T-BILL ICE Bofa 6m US Treas Bill ICE Bofa 1 Yr US Treasury Note ICE BofA US Treasury 1-3 ICE BofA US Treasury 1-5 * rates reflected are cumulative *Twelve month trailing 1.68 1.64 1.46 1.34 (1.02) (3.65) (5.25) * Six month trailing 1.46 1.44 1.31 1.35 0.25 (0.84) (1.35) 166,637.10 0.00 0.00 0.00 0.00 0.00 31,508.49 75,108,770.85 * One month 0.34 0.34 0.36 0.43 0.39 0.20 0.06 Detail of Fair Value Basis Return Interest Change in earned fair value Cash and Cash Equivalents 214.83 0.00 Corporate Bonds 57,378.60 (16,639.24) Government Agencies 46,810.40 37,762.72 Government Bonds 25,665.53 10,385.01 Total 130,069.36 31,508.49 Summary of Fair Value Basis Return for the Period Interest earned Change in fair value Total income on portfolio Average daily total value* Period return (%) YTD return (%) Weighted average final maturity in days * Total value equals market value and accrued interest CITY OF POWAY Total income 214.83 40,739.36 84,573.12 36,050.54 161,577.85 Total portfolio 130,069.36 31,508.49 161,577.85 75,496,654.48 0.21 (2.00) 540 5 February 21, 2023, Item #3 RECAP OF SECURITIES HELD As of December 31, 2022 ... ... 0 .... w 0 Cash and Cash Equivalents Corporate Bonds Government Agencies Government Bonds :,.J.1(-: Historical cost 202,254.50 Amortized cost 202,254.50 Fair value 202,254.50 22,472,738.00 21,798,450.16 21,258,709.47 27,347,196.50 26,966,500.10 26,374,062.72 28,134,115.19 28,162,690.53 27,273,744.16 Unrealized gain (loss) 0.00 (539,740.69) (592,437.38) (888,946.37) Weighted Percent average of final portfolio maturity (days) 417 472 709 0.26 28.75 34.99 36.00 Portfolio diversification {%) ■ Cash and Cash Equivalents ■ Corporate Bonds ■ Government Agencies ■ Government Bonds Total 0.26 28.75 34.99 36.00 100.00 Weighted . average effective duration (years) 0.00 0.89 1.22 1.86 CITY OF POWAY 6 February 21, 2023, Item #3 MATURITY DISTRIBUTION OF SECURITIES HELD As of December 31 , 2022 ... N 0 .... w 0 Maturity Under 90 days 90 to 1 79 days 180 days to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over 5 years 30.00 -25.00 E .S 20.00 .... "' 0 u "§ ·;:: .8 "' :i: o'l>1 o.i<::) 0~ ,f' Ri'o (?l o'l>1 '\o.i " ""t,<::) Maturity distribution ~ "~fl) ,o o~eo rl>~ ~fl) 'l, "'o r$-c, ~fl) ":, 'l, ,o r$-c, . ~fl) t,.. ":l'o Historic cost Percent 9,287,127.00 11.88 8,055,066.00 10.31 14,581,244.73 18.66 25,890,340.43 33.13 9,824,859.99 12.57 5,405,595.71 6.92 5,112,070.33 6.54 0.00 0.00 78,156,304.19 100.00 r$-c, <-:,~fl) t,....s, r$-c, ~fl, I,.<-:, o.,.'l) CITY OF POWAY 7 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 .... w g,cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Cash and Cash Equivalents Cash and Cash Equivalents 0.000 202,254.50 202,254.50 202,254.50 202,254.50 0.00 0.00 0.26 Total Cash and Cash Equivalents 202,254.50 202,254.50 202,254.50 202,254.50 0.00 0.00 0.26 Corporate Bonds 89233P7F7 TOYOTA MOTOR CREDIT CORP 2.625% 1 OJAN2023 2.625 01/10/2023 2,000,000.00 2,001,380.00 2,000,010.49 1,999,214.82 (795.67) 24,937.50 2.56 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 2.750 03/15/2023 1,000,000.00 1,021,370.00 1,000,255.01 995,718.18 (4,536.83) 8,097.22 1.31 (CALLABLE 06FEB23) 01/15/2023 931142DH3 WALMART INC 2.55% 11 APR2023 (CALLABLE 06FEB23) 2.550 04/11/2023 1,000,000.00 1,015,270.00 1,000,134.05 993,752.88 (6,381 .17) 5,666.67 1.30 01/11/2023 037833AK6 APPLE INC 2.4% 03MAY2023 2.400 05/03/2023 1,000,000.00 1,007,920.00 1,000,718.94 991,991.64 (8,727.30) 3,866.67 1.29 69353RFL7 PNC BANK NA 3.5% 08JUN2023 (CALLABLE 09MAY23) 3.500 06/08/2023 1,900,000.00 1,995,436.00 1,909,143.06 1,888,428.43 (20,714.63) 4,248.61 2.55 05/09/2023 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) 3.650 01/23/2024 1,400,000.00 1,484,224.00 1,420,863.91 1,380,633.21 (40,230.70) 22,427.22 1.90 12/23/2023 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) 3.375 02/05/2024 1,900,000.00 1,999,636.00 1,923,630.37 1,866,606.66 (57,023.71) 26,006.25 2.56 01/05/2024 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 3.625 03/04/2024 1,000,000.00 1,070,370.00 1,019,944.44 984,083.58 (35,860.86) 11,781.25 1.37 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 3.550 03/05/2024 2,350,000.00 2,488,495.00 2,361,880.83 2,341,627.26 (20,253.57) 26,881.39 3.18 05MAR23) 03/05/2023 459200JY8 IBM CORP 3% 15MA Y2024 3.000 05/15/2024 2,300,000.00 2,463,231.00 2,371,377.51 2,237,639.46 (133,738.05) 8,816.67 3.15 8 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 .... J:a, 5a.cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Corporate Bonds 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27 JUN2024 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,004,070.97 963,812.31 (40,258.66) 266.67 1.30 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 4.023 12/05/2024 2,000,000.00 2,207,640.00 2,061,885.59 1,970,657.96 (91,227.63) 5,811.00 2.82 05DEC23) 12/05/2023 166764BW9 CHEVRON CORP 1.554% 11 MAY2025 (CALLABLE 1.554 05/11/2025 1,800,000.00 1,715,436.00 1,733,489.87 1,676,021.45 (57,468.42) 3,885.00 2.19 11APR25) 04/11/2025 24422ETC3 JOHN DEERE CAPITAL CORP 3.4% 11 SEP2025 3.400 09/11/2025 1,000,000.00 989,920.00 991,045.12 968,521.63 (22,523.49) 10,388.89 1.27 Total Corporate Bonds 21,650,000.00 22,472,738.00 21,798,450.16 21,258,709.47 (539,740.69) 163,081.01 28.75 Government Agencies 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 4.090 01/18/2023 1,850,000.00 2,008,452.50 1,852,334.00 1,849,989.71 (2,344.29) 34,259.43 2.57 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 2.250 02/08/2023 1,000,000.00 1,017,480.00 1,000,507.44 997,891.31 (2,616.13) 8,937.50 1.30 3130AJ7E3 FEDERAL HOME LOAN BANK 1.375% 17FEB2023 1.375 02/17/2023 2,000,000.00 2,003,400.00 2,000,471 .39 1,992,702.58 (7,768.81) 10,236.11 2.56 3133EJFKO FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 2.650 03/08/2023 1,000,000.00 1,032,790.00 1,001,830.64 997,621 .65 (4,208.99) 8,318.06 1.32 3133EMF31 FEDERAL FARM CREDIT BANK 0.125% 02JUN2023 0.125 06/02/2023 2,000,000.00 1,968,700.00 1,989,284.68 1,963,607.72 (25,676.96) 201 .39 2.52 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 2.750 06/19/2023 2,000,000.00 2,067,740.00 2,008, 113.44 1,983, 123.36 (24,990.08) 1,833.33 2.65 3135G0U43 FANNIE MAE 2.875% 125EP2023 2.875 09/12/2023 1,000,000.00 1,039,050.00 1,006,551.66 987,147.34 (19,404.32) 8,704.86 1.33 9 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 ~ u, g,cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Government Agencies 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 170CT2023 1.860 10/17/2023 2,000,000.00 1,997,646.00 1,999,558.14 1,955,650.54 (43,907.60) 7,646.67 2.56 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 3.000 12/06/2023 1,000,000.00 1,071,740.00 1,025,001.43 983,230.63 (41,770.80) 2,083.33 1.37 3130A3VC5 FEDERAL HOME LOAN BANK 2.25% 08DEC2023 2.250 12/08/2023 1,000,000.00 1,014,600.00 1,003,143.18 976,736.98 (26,406.20) 1,437.50 1.30 3135GOV34 FANNIE MAE 2.5% 05FEB2024 2.500 02/05/2024 1,750,000.00 1,820,547.50 1,774,474.89 1,708,527.00 (65,947.89) 17,743.06 2.33 3133EMRZ7 FEDERAL FARM CREDIT BANK 0.25% 26FEB2024 0.250 02/26/2024 1,250,000.00 1,246,747.50 1,248,605.11 1,188,374.63 (60,230.48) 1,085.Dl 1.60 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 0.300 03/28/2024 2,000,000.00 1,998,500.00 1,999,465.82 1,890,401.66 (109,064.16) 1,550.00 2.56 (CALLABLE 11 JAN23) 3135GOV75 FANNIE MAE 1.75% 02JUL2024 1.750 07/02/2024 2,000,000.00 2,007,920.00 2,002,488.49 1,915,298.52 (87,189.97) 17,402.78 2.57 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 OFEB2025 0.500 02/10/2025 1,000,000.00 1,002,860.00 1,000,000.00 915,839.53 (84,160.47) 1,958.33 1.28 (CALLABLE 1 OFEB23) 02/10/2023 3130AQF65 FEDERAL HOME LOAN BANK 1.25% 21 DEC2026 1.250 12/21/2026 2,300,000.00 2,055,763.00 2,061 ,105.16 2,061,851.40 746.24 798.61 2.63 3130ATHWO FEDERAL HOME LOAN BANK 4.125% 105EP2027 4.125 09/10/2027 2,000,000.00 1,993,260.00 1,993,564.63 2,006,068.16 12,503.53 21 ,312.50 2.55 Total Government Agencies 27,150,000.00 27,347, 196.50 26,966,500.10 26,374,062.72 (592,437.38) 145,508.53 34.99 Government Bonds 91282CCN9 USA TREASURY 0.125% 31JUL2023 0.125 07/31/2023 1,300,000.00 1,287,461.39 1,295,303.56 1,265,773.44 (29,530.12) 675.61 1.65 10 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 ..... O'I g,cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Government Bonds 9128282D1 USA TREASURY 1.375% 31 AUG2023 1.375 08/31/2023 2,000,000.00 1,967,109.38 1,994,685.89 1,955,234.38 (39,451 .51) 9,267.96 2.52 91282CDA6 USA TREASURY 0.25% 30SEP2023 0.250 09/30/2023 1,500,000.00 1,485,761.72 1,493,810.43 1,450, 136.72 (43,673.71) 947.80 1.90 912828T91 USA TREASURY 1.625% 31 OCT2023 1 .625 10/31/2023 1,600,000.00 1,640,630.36 1,616,512.87 1,560,312.50 (56,200.37) 4,381.22 2.10 912828U57 USA TREASURY 2.125% 30NOV2023 2.125 11/30/2023 1,900,000.00 1,925,679.69 1,905,377.44 1,855,617.18 (49,760.26) 3,438.53 2.46 9128285P1 USA TREASURY 2.875% 30NOV2023 2.875 11/30/2023 1,100,000.00 1,151,566.19 1,123,561.02 1,082,039.07 (41,521.95) 2,693.34 1.47 91282CBEO USA TREASURY 0.125% 15JAN2024 0.125 01/15/2024 1,900,000.00 1,890,283.71 1,895,562.27 1,812,050.79 (83,511.48) 1,090.69 2.42 912828X70 USA TREASURY 2% 30APR2024 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,010,437.45 1,930,312.50 (80,124.95) 6,740.33 2.61 912828YH7 USA TREASURY 1.5% 30SEP2024 1.500 09/30/2024 1,000,000.00 1,032,304.69 1,018,012.82 950,078.12 (67,934.70) 3,791.21 1.32 912828YM6 USA TREASURY 1.5% 31 OCT2024 1.500 10/31/2024 1,100,000.00 1,132,015.40 1,119,016.24 1,042,765.63 (76,250.61) 2,780.39 1.45 912828YYO USA TREASURY 1. 75% 31DEC2024 1.750 12/31/2024 1,000,000.00 1,046,643.98 1,026,208.11 949,765.62 (76,442.49) 8,750.00 1.34 912828ZL7 USA TREASURY 0.375% 30APR2025 0.375 04/30/2025 2,900,000.00 2,704,703.13 2,751,476.64 2,648,742.20 (102,734.44) 1,832.53 3.46 91282CAJO USA TREASURY 0.25% 31 AUG2025 0.250 08/31/2025 1,400,000.00 1,279,250.00 1,299,046.78 1,260,164.07 (38,882.71) 1,179.56 1.64 ·-------·· 11 February 21, 2023, Item #3 SECURITIES HELD CITY OF POWAY As of December 31, 2022 .... -...I g,cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % w Call date shares gain accrued Port 0 (loss) interest cost Government Bonds 91282CAT8 USA TREASURY 0.2S% 31 OCT2025 0.250 10/31/2025 1,200,000.00 1,086,046.88 1,098,238.59 1,074,093.74 (24,144.85) 505.53 1.39 91282CBC4 USA TREASURY 0.375% 31 DEC2025 0.375 12/31/2025 2,300,000.00 2,106, 124.89 2,129,601.35 2,057,601.57 (71,999.78) 4,312.50 2.69 91282CBT7 USA TREASURY 0.75% 31 MAR2026 0.750 03/31/2026 1,400,000.00 1,243,707.82 1,255,185.53 1,256,281.25 1,095.72 2,653.85 1.59 91282CDQ1 USA TREASURY 1.25% 31 DEC2026 1 .250 12/31/2026 2,350,000.00 2,088,287.11 2,099,434.78 2,107,380.85 7,946.07 14,687.50 2.67 9128283F5 USA TREASURY 2.25% 15NOV2027 2.250 11/15/2027 1,100,000.00 1,030,523.22 1,031,218.76 1,015,394.53 (15,824.23) 3,145.03 1.32 Total Government Bonds 29,050,000.00 28,134,115.19 28,162,690.53 27,273,744.16 (888,946.37) 72,873.58 36.00 [ditmlt.iffii CT.V:.'T'Z'I~ ""'i, .• ,::.~ =~ ICl':lltr.'1:'11 12 February 21, 2023, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2022 .... 00 g,cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w 0 date rating rating shares cost hist cost value mktvalue dur (yrs) United States Treasury Note/Bond 91282CCN9 USA TREASURY 0.125% 0.125 07/31/2023 AA+ Aaa 1,300,000.00 1,287,461.39 1.65 1,265,773.44 1.69 0.57 9128282D1 USA TREASURY 1.375% 1.375 08/31/2023 AA+ Aaa 2,000,000.00 1,967,109.38 2.52 1,955,234.38 2.60 0.65 91282CDA6 USA TREASURY 0.25% 0.250 09/30/2023 AA+ Aaa 1,500,000.00 1,485,761.72 1.90 1,450,136.72 1.93 0.74 912828T91 USA TREASURY 1.625% 1.625 10/31/2023 AA+ Aaa 1,600,000.00 1,640,630.36 2.10 1,560,312.50 2.08 0.81 912828U57 USA TREASURY 2.125% 2.125 11/30/2023 AA+ Aaa 1,900,000.00 1,925,679.69 2.46 1,855,617.18 2.47 0.89 9128285P1 USA TREASURY 2.875% 2.875 11/30/2023 AA+ Aaa 1,100,000.00 1,151,566.19 1.47 1,082,039.07 1.44 0.89 91282CBEO USA TREASURY 0.125% 0.125 01/15/2024 AA+ Aaa 1,900,000.00 1,890,283.71 2.42 1,812,050.79 2.41 1.01 912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 2.61 1,930,312.50 2.57 1.28 912828YH7 USA TREASURY 1.5% 1.500 09/30/2024 AA+ Aaa 1,000,000.00 1,032,304.69 1.32 950,078.12 1.26 1.68 912828YM6 USA TREASURY 1.5% 1.500 10/31/2024 AA+ Aaa 1,100,000.00 1,132,015.40 1.4S 1,042,765.63 1.39 1.77 912828YYO USA TREASURY 1.75% 1.750 12/31/2024 AA+ Aaa 1,000,000.00 1,046,643.98 1.34 949,765.62 1.26 1.92 912828ZL7 USA TREASURY 0.375% 0.375 04/30/2025 AA+ Aaa 2,900,000.00 2,704,703.13 3.46 2,648,742.20 3.53 2.26 91282CAJO USA TREASURY 0.25% 0.250 08/31/2025 AA+ Aaa 1,400,000.00 1,279,250.00 1.64 1,260, 164.07 1.68 2.59 91282CATB USA TREASURY 0.25% 0.250 10/31/2025 AA+ Aaa 1,200,000.00 1,086,046.88 1.39 1,074,093.74 1.43 2.75 91282CBC4 USA TREASURY 0.375% 0.375 12/31/2025 AA+ Aaa 2,300,000.00 2,106,124.89 2.69 2,057,601.57 2.74 2.91 91282CBT7 USA TREASURY 0.75% 0.750 03/31/2026 AA+ Aaa 1,400,000.00 1,243,707.82 1.59 1,256,281 .25 1.67 3.12 91282CDQ1 USA TREASURY 1.25% 1.250 12/31/2026 AA+ Aaa 2,350,000.00 2,088,287.11 2.67 2,107,380.85 2.81 3.81 9128283FS USA TREASURY 2.25% 2.250 11/15/2027 AA+ Aaa 1,100,000.00 1,030,523.22 1.32 1,015,394.53 1.35 4.50 Issuer total 29,050,000.00 28,134,115.19 36.00 27,273,744.16 36.31 1.86 Federal Farm Credit Banks Funding Corp 31331 KAF7 FEDERAL FARM CREDIT 4.090 01/18/2023 AA+ Aaa 1,850,000.00 2,008,452.50 2.57 1,849,989.71 2.46 0.05 3133EKKT2 FEDERAL FARM CREDIT 2.250 02/08/2023 AA+ Aaa 1,000,000.00 1,017,480.00 1.30 997,891 .31 1.33 0.11 3133EJFKO FEDERAL FARM CREDIT 2.650 03/08/2023 AA+ Aaa 1,000,000.00 1,032,790.00 1.32 997,621 .65 1.33 0.18 3133EMF31 FEDERAL FARM CREDIT 0.125 06/02/2023 AA+ Aaa 2,000,000.00 1,968,700.00 2.52 1,963,607.72 2.61 0.41 --·-·---·-----~---------- 13 February 21, 2023, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2022 .... \D g,cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating 0 rating shares cost hist cost value mkt value dur (yrs) Federal Farm Credit Banks Funding Corp 3133EKVB9 FEDERAL FARM CREDIT 1.860 10/17/2023 AA+ Aaa 2,000,000.00 1,997,646.00 2.56 1,955,650.54 2.60 0.77 3133EJ2B4 FEDERAL FARM CREDIT 3.000 12/06/2023 AA+ Aaa 1,000,000.00 1,071,740.00 1.37 983,230.63 1.31 0.90 3133EMRZ7 FEDERAL FARM CREDIT 0.250 02/26/2024 AA+ Aaa 1,250,000.00 1,246,747.50 1.60 1,188,374.63 1.58 1.12 3133EMBE1 FEDERAL FARM CREDIT 0.300 03/28/2024 AA+ Aaa 2,000,000.00 1,998,500.00 2.56 1,890,401.66 2.52 1.20 Issuer total 12,100,000.00 12,342,056.00 15.79 11,826,767.85 15.75 0.61 Federal Home Loan Banks 3130AJ7E3 FEDERAL HOME LOAN 1.375 02/17/2023 AA+ Aaa 2,000,000.00 2,003,400.00 2.56 1,992,702.58 2.65 0.13 3130A3VC5 FEDERAL HOME LOAN 2.250 12/08/2023 AA+ Aaa 1,000,000.00 1,014,600.00 1.30 976,736.98 1.30 0.91 3130AL2A1 FEDERAL HOME LOAN 0.500 02/10/2025 02/10/2023 AA+ Aaa 1,000,000.00 1,002,860.00 1.28 915,839.53 1.22 2.03 3130AQF65 FEDERAL HOME LOAN 1.250 12/21/2026 AA+ Aaa 2,300,000.00 2,055,763.00 2.63 2,061,851.40 2.75 3.78 3130ATHWO FEDERAL HOME LOAN 4.125 09/10/2027 AA+ Aaa 2,000,000.00 1,993,260.00 2.55 2,006,068.16 2.67 4.17 Issuer total 8,300,000.00 8,069,883.00 10.33 7,953,198.65 10.59 2.39 Federal National Mortgage Association 3135GOU43 FANNIE MAE 2.875% 2.875 09/12/2023 AA+ Aaa 1,000,000.00 1,039,050.00 1.33 987,147.34 1.31 0.68 3135GOV34 FANNIE MAE 2.5% 2.500 02/05/2024 AA+ Aaa 1,750,000.00 1,820,547.50 2.33 1,708,527.00 2.27 1.05 3135GOV75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.57 1,915,298.52 2.55 1.45 Issuer total 4,750,000.00 4,867,517.50 6.23 4,610,972.86 6.14 1.14 Bank of America Corp 06051 GHF9 BANK OF AMERICA CORP 3.550 03/05/2024 0310512023 A-A2 2,350,000.00 2,488,495.00 3.18 2,341,627.26 3.12 0.18 Issuer total 2,350,000.00 2,488,495.00 3.18 2,341,627.26 3.12 0.18 International Business Machines Corp 459200JY8 IBM CORP 3% 3.000 05/15/2024 A-A3 2,300,000.00 2,463,231.00 3.15 2,237,639.46 2.98 1.31 Issuer total 2,300,000.00 2,463,231.00 3.15 2,237,639.46 2.98 1.31 ----------· --------------·------··------------ 14 February 21, 2023, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31, 2022 N 0 s,cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares 0 cost hist cost value mkt value dur (yrs) Toyota Motor Credit Corp 89233P7F7 TOYOTA MOTOR CREDIT 2.625 01/10/2023 A+ A1 2,000,000.00 2,001,380.00 2.56 1,999,214.82 2.66 0.03 Issuer total 2,000,000.00 2,001,380.00 2.56 1,999,214.82 2.66 0.03 Federal Home Loan Mortgage Corp 3137EAEN5 FREDDIE MAC 2.75% 2.750 06/19/2023 AA+ Aaa 2,000,000.00 2,067,740.00 2.65 1,983,123.36 2.64 0.46 Issuer total 2,000,000.00 2,067,740.00 2.65 1,983,123.36 2.64 0.46 JPMorgan Chase & Co 46647PAY2 JPMORGAN CHASE & CO 4.023 12/05/2024 12/05/2023 A-A1 2,000,000.00 2,207,640.00 2.82 1,970,657.96 2.62 0.90 Issuer total 2,000,000.00 2,207,640.00 2.82 1,970,657.96 2.62 0.90 PNC Bank NA 69353RFL7 PNC BANK NA 3.5% 3.500 06/08/2023 05/09/2023 A A2 1,900,000.00 1,995,436.00 2.55 1,888,428.43 2.51 0.43 Issuer total 1,900,000.00 1,995,436.00 2.55 1,888,428.43 2.51 0.43 US Bancorp 91159HHV5 US BANCORP 3.375% 3.375 02/05/2024 01/05/2024 A+ A2 1,900,000.00 1,999,636.00 2.56 1,866,606.66 2.49 1.03 Issuer total 1,900,000.00 1,999,636.00 2.56 1,866,606.66 2.49 1.03 Chevron Corp 166764BW9 CHEVRON CORP 1.554% 1.554 05/11/2025 04/11/2025 AA-Aa2 1,800,000.00 1,715,436.00 2.19 1,676,021.45 2.23 2.25 Issuer total 1,800,000.00 1,715,436.00 2.19 1,676,021.45 2.23 2.25 Citibank NA 17325FA57 CITIBANK NA 3.65% 3.650 01/23/2024 12/23/2023 A+ Aa3 1,400,000.00 1,484,224.00 1.90 1,380,633.21 1.84 0.99 Issuer total 1,400,000.00 1,484,224.00 1.90 1,380,633.21 1.84 0.99 15 February 21, 2023, Item #3 GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE CITY OF POWAY As of December 31 , 2022 N ... g,cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective w date rating rating shares 0 cost hist cost value mkt value dur (yrs) Berkshire Hathaway Inc 084670BR8 BERKSHIRE HATHAWAY 2.750 03/15/2023 01/15/2023 AA Aa2 1,000,000.00 1,021,370.00 1.31 995,718.18 1.33 0.20 Issuer total 1,000,000.00 1,021,370.00 1.31 995,718.18 1.33 0.20 Walmart Inc 931142DH3 WALMART INC 2.55% 2.550 04/11/2023 01/11/2023 AA Aa2 1,000,000.00 1,015,270.00 1.30 993,752.88 1.32 0.28 Issuer total 1,000,000.00 1,015,270.00 1.30 993,752.88 1.32 0.28 Apple Inc 037833AK6 APPLE INC 2.4% 2.400 05/03/2023 AA+ Aaa 1,000,000.00 1,007,920.00 1.29 991 ,991.64 1.32 0.33 Issuer total 1,000,000.00 1,007,920.00 1.29 991,991.64 1.32 0.33 Cisco Systems Inc 17275RAN2 CISCO SYSTEMS INC 3.625 03/04/2024 AA-A1 1,000,000.00 1,070,370.00 1.37 984,083.58 1.31 1.12 Issuer total 1,000,000.00 1,070,370.00 1.37 984,083.58 1.31 1.12 John Deere Capital Corp 24422ETC3 JOHN DEERE CAPITAL 3.400 09/11/2025 A A2 1,000,000.00 989,920.00 1.27 968,521 .63 1.29 2.50 Issuer total 1,000,000.00 989,920.00 1.27 968,521 .63 1.29 2.50 American Honda Finance Corp 02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A-A3 1,000,000.00 1,012,410.00 1.30 963,812.31 1.28 1.43 Issuer total 1,000,000.00 1,012,410.00 1.30 963,812.31 1.28 1.43 Cash and Cash Equivalents INVESTED CASH 0.000 202,254.50 202,254.50 0.00 202,254.50 0.27 0.00 Issuer total 202,254.50 202,254.50 0.00 202,254.50 0.27 0.00 ~i:i(~ - 16 February 21, 2023, Item #3 SECURITIES PURCHASED For the period December 1, 2022 -December 31, 2022 N N g_cusip Description/ Broker Trade date Coupon w · Settle date 0 Government Bonds 9128283F5 USA TREASURY 2.25% 15NOV2027 GOLDMAN, SACHS AND CO. Total Government Bonds 12/13/2022 12/14/2022 2.250 Maturity/ Call date 11/15/2027 Par value or shares 1,100,000.00 1,100,000.00 Unit cost 93.68 Principal cost (1,030,523.22) (1,030,523.22) CITY OF POWAY Accrued interest (1,982.73) (1,982.73) 17 February 21, 2023, Item #3 N w SECURITIES SOLD AND MATURED For the period December 1, 2022 -December 31, 2022 g_ Cu sip Description / Broker Trade date Coupon Maturity/ Par value or Historical cost w Settle date Call date shares 0 Government Agencies 31331K3A6 FEDERAL FARM CR BKS CONS SYSTEMWIDE BOS 2.71 % 12-13-2022 Total (Government Agencies) ·•.lll ... ll.J.~ 12/13/2022 2.710 (1,000,000.00) 1,028,921.06 12/13/2022 (1 ,000,000.00) 1,028,921.06 Amortized cost at sale or maturity 1,000,000.00 1,000,000.00 Price 0.00 Fair value at sale or maturity 1,000,000.00 1,000,000.00 CITY OF POWAY Realized gain (loss) 0.00 0.00 Accrued interest sold 0.00 0.00 16 February 21, 2023, Item #3 DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2022 -December 31, 2022 N .i:,. g,cusip Description Accretion Realized gain Change in fair Interest earned Interest received w 0 (amortization) (loss) value -- Cash Cash and Cash Equivalents 0.00 0.00 0.00 214.83 214.83 ----Total Cash 0.00 0.00 0.00 214.83 214.83 -- Corporate Bonds 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27JUN2024 (227.42) 0.00 1,602.25 2,066.67 12,000.00 037833AK6 APPLE INC 2.4% 03MAY2023 (175.35) 0.00 1,955.36 2,066.67 0.00 06051GHF9 BANK OF AMERICA CORP 3.55% 05MAR2024 (CALLABLE 05MAR23) (5,483.46) 0.00 3,393.15 7,183.82 0.00 084670BR8 BERKSHIRE HATHAWAY INC 2.75% 15MAR2023 (CALLABLE 06FEB23) (510.03) 0.00 342.05 2,368.05 0.00 166764BW9 CHEVRON CORP 1.554% 11 MAY2025 (CALLABLE 11 APR25) 2,344.66 0.00 (6,594.90) 2,408.70 0.00 17275RAN2 CISCO SYSTEMS INC 3.625% 04MAR2024 (1,411.16) 0.00 (4,989.46) 3,121.53 0.00 17325FAS7 CITIBANK NA 3.65% 23JAN2024 (CALLABLE 23DEC23) (1,773.14) 0.00 (76.86) 4,400.28 0.00 459200JY8 IBM CORP 3% 15MA Y2024 (4,325.91) 0.00 (5,006.29) 5,941.67 0.00 24422ETC3 JOHN DEERE CAPITAL CORP 3.4% 11SEP2025 276.67 0.00 (6,565.66) 2,927.78 0.00 46647PAY2 JPMORGAN CHASE & CO 4.023% 05DEC2024 (CALLABLE 05DEC23) (5,541.99) 0.00 (5,287.54) 6,928.50 40,230.00 69353RFL7 PNC BANK NA 3.5% 08JUN2023 (CALLABLE 09MAY23) (2,126.30) 0.00 2,358.77 5,726.39 33,250.00 89233P7F7 TOYOTA MOTOR CREDIT CORP 2.625% 1 OJAN2023 (31.49) 0.00 3,493.78 4,520.83 0.00 91159HHV5 US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) (1,942.22) 0.00 (3,087.94) 5,521.87 0.00 931142DH3 WALMART INC 2.55% 11 APR2023 (CALLABLE 06FEB23) (365.61) 0.00 1,824.05 2,195.84 0.00 -- Total Corporate Bonds (21,292.75) 0.00 (16,639.24) 57,378.60 85,480.00 Government Agencies 3135GOV75 FANNIE MAE 1.75% 02JUL2024 (137.74) 0.00 (238.66) 3,013.89 0.00 19 February 21, 2023, Item #3 DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2022 -December 31, 2022 N u, ~Cusip Description Accretion Realized gain Change in fair Interest earned Interest received w (amortization) (loss) value 0 Government Agencies 3135GOV34 FANNIE MAE 2.5% 05FEB2024 (1,858.86) 0.00 1,987.18 3,767.37 0.00 3135GOU43 FANNIE MAE 2.875% 12SEP2023 (779.96) 0.00 2,045.45 2,475.69 0.00 31331K3A6 FEDERAL FARM CR BKS CONS SYSTEMWIDE BDS 2.71% 12-13-2022 (302.47) 0.00 662.94 978.61 13,550.00 3133EMF31 FEDERAL FARM CREDIT BANK 0.125% 02JUN2023 2,114.86 0.00 9,452.52 215.28 1,250.00 3133EMRZ7 FEDERAL FARM CREDIT BANK 0.25% 26FEB2024 100.59 0.00 3,841.00 269.10 0.00 3133EMBE1 FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 (CALLABLE 11JAN23) 35.77 0.00 5,127.50 516.67 0.00 3133EKVB9 FEDERAL FARM CREDIT BANK 1.86% 170CT2023 46.18 0.00 5,617.58 3,203.34 0.00 3133EKKT2 FEDERAL FARM CREDIT BANK 2.25% 08FEB2023 (400.61) 0.00 1,670.30 1,937.50 0.00 3133EJFKO FEDERAL FARM CREDIT BANK 2.65% 08MAR2023 (807.64) 0.00 1,597.83 2,281 .95 0.00 3133EJ2B4 FEDERAL FARM CREDIT BANK 3% 06DEC2023 (2,151.46) 0.00 1,539.40 2,583 .33 15,000.00 31331KAF7 FEDERAL FARM CREDIT BANK 4.09% 18JAN2023 (3,889.99) 0.00 374.25 6,515.60 0.00 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 OFEB2025 (CALLABLE 1 OFEB23) 0.00 0.00 1,762.81 430.55 0.00 3130AQF65 FEDERAL HOME LOAN BANK 1.25% 21 DEC2026 5,008.27 0.00 (2,53895) 2,475.69 14,375.00 3130AJ7E3 FEDERAL HOME LOAN BANK 1.375% 17FEB2023 (300.88) 0.00 5,465.98 2,368.05 0.00 3130A3VC5 FEDERAL HOME LOAN BANK 2.2S% 08DEC2023 (278.99) 0.00 1,990.67 1,937.50 11,250.00 3130ATHWO FEDERAL HOME LOAN BANK 4.125% 1 OSEP2027 114.23 0.00 (7,944.90) 7,104.17 0.00 3137EAEN5 FREDDIE MAC 2.75% 19JUN2023 (1,440.25) 0.00 5,349.82 4,736.11 27,500.00 ------ Total Government Agencies (4,928.95) 0.00 37,762.72 46,810.40 82,925.00 Government Bonds 91282CBEO USA TREASURY 0.125% 15JAN2024 362.02 0.00 5,640.63 200.06 0.00 20 February 21, 2023, Item #3 DETAIL OF RETURN AND INTEREST RECEIVED CITY OF POWAY For the period December 1, 2022 -December 31, 2022 N °' g,cusip Description Accretion Realized gain Change in fair Interest earned Interest received w (amortization) (loss) value 0 Government Bonds 91282CCN9 USA TREASURY 0.125% 31JUL2023 686.74 0.00 4,925.79 136.89 0.00 91282CDA6 USA TREASURY 0.25% 30SEP2023 702.85 0.00 4,863.29 319.37 0.00 91282CAJO USA TREASURY 0.25% 31 AUG2025 3,213.09 0.00 382.82 299.73 0.00 91282CAT8 USA TREASURY 0.25% 31 OCT2025 3,047.93 0.00 (1 ,406.26) 256.91 0.00 912828ZL7 USA TREASURY 0.375% 30APR2025 5,410.37 0.00 1,359.40 931.29 0.00 91282CBC4 USA TREASURY 0.375% 31 DEC2025 4,819.67 0.00 (1,527.34) 726.56 0.00 91282CBT7 USA TREASURY 0.7S% 31 MAR2026 3,785.20 0.00 (2,679.68) 894.23 0.00 91282CDQ1 USA TREASURY 1.25% 31 DEC2026 5,316.58 0.00 (6,517.59) 2,474.52 0.00 912828201 USA TREASURY 1.375% 31 AUG2023 677.93 0.00 4,843.76 2,354.98 0.00 912828YH7 USA TREASURY 1.5% 30SEP2024 (873.87) 0.00 1,445.31 1,277.47 0.00 912828YM6 USA TREASURY 1.5% 31 OCT2024 (879.86) 0.00 601.56 1,412.99 0.00 912828T91 USA TREASURY 1.625% 31 OCT2023 (1,683.88) 0.00 4,562.50 2,226.52 0.00 912828YYO USA TREASURY 1.75% 31 DEC2024 (1,111.42) 0.00 273.43 1,434.43 0.00 912828X70 USA TREASURY 2% 30APR2024 (665.76) 0.00 1,875.00 3,425.41 0.00 912828U57 USA TREASURY 2.125% 30NOV2023 (499.10) 0.00 4,378.89 3,438.53 0.00 9128283F5 USA TREASURY 2.25% 15NOV2027 695.54 0.00 (15,128.69) 1,162.30 0.00 9128285P1 USA TREASURY 2.875% 30NOV2023 (2,186.80) 0.00 2,492.19 2,693.34 0.00 ~ ----- Total Government Bonds 20,817.23 0.00 10,385.01 25,665.53 0.00 ll!tffliii..111[•_ 21 February 21, 2023, Item #3 TRANSACTION REPORT CITY OF POWAY For the period December 1 , 2022 -December 31 , 2022 "' ~ g, Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Principal Interest Transaction total wsettle date shares gain(loss) 0 12/02/2022 3133EMF31 Income Government Agencies FEDERAL FARM CREDIT BANK 06/02/2023 2,000,000.00 0.00 0.00 1,250.00 1,250.00 12/02/2022 12/05/2022 46647PAY2 Income Corporate Bonds JPMORGAN CHASE & CO 12/05/2024 2,000,000.00 0.00 0.00 40,230.00 40,230.00 12/05/2022 12/06/2022 3133EJ2B4 Income Government Agencies FEDERAL FARM CREDIT BANK 12/06/2023 1,000,000.00 0.00 0.00 15,000.00 15,000.00 12/06/2022 12/08/2022 3130A3VC5 Income Government Agencies FEDERAL HOME LOAN BANK 12/08/2023 1,000,000.00 0.00 0.00 11,250.00 11,250.00 12/08/2022 12/08/2022 69353RFL7 Income Corporate Bonds PNC BANK NA 3.5% 08JUN2023 06/08/2023 1,900,000.00 0.00 0.00 33,250.00 33,250.00 12/08/2022 12/13/2022 31331 K3A6 Income Government Agencies FEDERAL FARM CR BKS CONS 12/13/2022 1,000,000.00 0.00 0.00 13,550.00 13,550.00 12/13/2022 12/13/2022 31331 K3A6 Capital Change Government Agencies FEDERAL FARM CR BKS CONS 12/13/2022 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 12/13/2022 12/13/2022 9128283F5 Bought Government Bonds USA TREASURY 2.25% 11/15/2027 1 , 100,000.00 0.00 (1 ,030,523.22) (1,982.73) (1,032,505.95) 12/14/2022 12/19/2022 3137EAEN5 Income Government Agencies FREDDIE MAC 2.75% 06/19/2023 2,000,000.00 0.00 0.00 27,500.00 27,500.00 12/19/2022 12/21/2022 3130AQF65 Income Government Agencies FEDERAL HOME LOAN BANK 12/21/2026 2,300,000.00 0.00 0.00 14,375.00 14,375.00 12/21/2022 12/28/2022 02665WCZ2 Income Corporate Bonds AMERICAN HONDA FINANCE 06/27/2024 1,000,000.00 0.00 0.00 12,000.00 12,000.00 12/28/2022 12/31/2022 Income Cash and Cash Equivalents Cash 0.00 0.00 0.00 214.83 214.83 ---------·· ---------- 22 February 21, 2023, Item #3 ADDITIONAL INFORMATION As of December 31, 2022 CITY OF POWAY N OOPast performance is not a guide to future performance. The value of investments and any income from them will fluctuate and is not guaranteed (this may partly be due to exchange rate changes) and investors may not get O back the amount invested. Transactions in foreign securities may be executed and settled in local markets. Performance comparisons will be affected by changes in interest rates. Investment returns fluctuate due to changes :;in market conditions. Investment involves risk, including the possible loss of principal. No assurance can be given that the performance objectives of a given strategy will be achieved. The information contained herein is for oyour reference only and is being provided in response to your specific request and has been obtained from sources believed to be reliable; however, no representation is made regarding its accuracy or completeness. This document must not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or otherwise not permitted. This document should not be duplicated, amended, or forwarded to a third party without consent from Insight. This is a marketing document intended for professional clients only and should not be made available to or relied upon by retail clients Investment advisory services in North America are provided through two different SEC-registered investment advisers using the brand Insight Investment: Insight North America LLC (INA) and Insight Investment International Limited (IIIL). The North American investment advisers are associated with a broader group of global investment managers that also (individually and collectively) use the corporate brand Insight Investment and may be referred to as Insight, Insight Group or Insight Investment. INA is an investment adviser registered with the Securities and Exchange Commission (SEC). under the Investment Advisers Act of 1940, as amended. Registration with the SEC does not imply a certain level of skill or training. You may request, without charge, additional information about Insight. Moreover, specific information relating to Insights strategies, including investment advisory fees, may be obtained from INA's Form ADV Part 2A, which is available without charge upon request. Where indicated, performance numbers used in the analysis are gross returns. The performance reflects the reinvestment of all dividends and income. INA charges management fees on all portfolios managed and these fees will reduce the returns on the portfolios. For example, assume that $30 million is invested in an account with INA, and this account achieves a 5.0% annual return compounded monthly, gross of fees, for a period of five years. At the end of five years that account would have grown to $38,500,760 before the deduction of management fees. Assuming management fees of 0.25% per year are deducted monthly from the account, the value at the end of the five year period would be $38,022,447. Actual fees for new accounts are dependent on size and subject to negotiation. INA's investment advisory fees are discussed in Part 2A of its Form ADV. Unless otherwise stated, the source of information is Insight. Any forecasts or opinions are Insight's own at the date of this document (or as otherwise specified) and may change. Material in this publication is for general information only and is not advice, investment advice, or the recommendation of any purchase or sale of any security. Insight makes no implied or expressed recommendations concerning the manner in which an account should or would be handled, as appropriate investment strategies depend upon specific investment guidelines and objectives and should not be construed to be an assurance that any particular security in a strategy will remain in any fund, account, or strategy, or that a previously held security will not be repurchased. It should not be assumed that any of the security transactions or holdings referenced herein have been or will prove to be profitable or that future investment decisions will be profitable or will equ?I or exceed the past investment performance of the securities listed. Please compare the information provided in this statement to the information provided in the statement received from your Custodian. For trading activity the Clearing broker will be reflected. In certain cases the Clearing broker will differ from the Executing broker. In calculating ratings distributions and weighted average portfolio quality, Insight assigns U.5 Treasury and U.5 agency securities a quality rating based on the methodology used within the respective benchmark index. When Moody's, S&P and Fitch rate a security, Bank of America and Merrill Lynch indexes assign a simple weighted average statistic while Barclays indexes assign the median statistic. Insight assigns all other securities the lower of Moody's and S&P ratings. Information about the indices shown here is provided to allow for comparison of the performance of the strategy to that of certain well-known and widely recognized indices. There is no representation that such index is an appropriate benchmark for such comparison. You cannot invest directly in an index and the indices represented do not take into account trading commissions and/or other brokerage or custodial costs. The volatility of the indices may be materially different from that of the strategy. In addition, the strategy's holdings may differ substantially from the securities that comprise the indices shown. The ICE BofA 3 Month UST-Bill index is an unmanaged market index of U.S. Treasury securities maturing in 90 days that assumes reinvestment of all income. The ICE BofA 6 Month UST-Bill index measures the performance of Treasury bills with time to maturity of less than 6 months. The ICE BofA 1-Year US Treasury Index is a one-security index comprised of the most recently issued 1-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 1-year note must be auctioned on or before the third business day before the last business day of the month. The ICE BofA 3-Year US Treasury Index is a one-security index comprised of the most recently issued 3-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 3-year note must be auctioned on or before the third business day before the last business day of the month. The ICE BofA 5-Year US Treasury Index is a one-security index comprised of the most recently issued 5-year US Treasury note. The index is rebalanced monthly. In order to qualify for inclusion, a 5-year note must be auctioned on or before the third business day before the last business day of the month. The ICE BofA 1-3 us Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than three years. The ICE BofA 1-5 US Year Treasury Index is an unmanaged index that tracks the performance of the direct sovereign debt of the U.S. Government having a maturity of at least one year and less than five years. ----·-------· -·-· 23 February 21, 2023, Item #3 N 1.0 ADDITIONAL INFORMATION As of December 31, 2022 CITY OF POWAY g,1nsight does not provide tax or legal advice to its clients and all investors are strongly urged to consult their tax and legal advisors regarding any potential strategy or investment. w Olnsight is a group of wholly owned subsidiaries ofThe Bank of New York Mellon Corporation. BNY Mellon is the corporate brand ofThe Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates and joint ventures ofThe Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction. Unless you are notified to the contrary, the products and services mentioned are not insured by the FDIC (or by any governmental entity) and are not guaranteed by or obligations ofThe Bank of New York Mellon Corporation or any·of its affiliates. The Bank of New York Corporation assumes no responsibility for the accuracy or completeness of the above data and disclaims all expressed or implied warranties in connection therewith. © 2022 Insight Investment. All rights reserved. 24 February 21, 2023, Item #3 w 0 0 .... w 0 )> • ~ City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash December 2022 Part I Investments ft Cash with Fiscal A.!l,ents Settlement Yield to Days to % of Total Face · INVESTMENT DESCRIPTION Date Maturity Maturity Investment Value Book Value 1stAmGov'tObligationsMoneyMktFd 12/31/22 I Various! 1j 100.00%! T ,---,---_ $1,2_96,665 . 95 J -,__:::-."':".':"'-=-' 1-===---: -~~--: I r-------' I I J I I --1.----I ---I ___ __, Average/Total -----1 Various! -1! 100.00%1 $1,296,665.95 1 $1 ,296,665.95 j Paying Agent or Uninvested Cash &. DITs ·------u I -$0.00 I Total Investments and Cash with Fiscal Agent $1 ,296,665.95 ) Market I Unrealized Value Gain(L~s) $0.00 $1 ,296,665.95 j $0.00 ~ -t'art II )> n ~ ~ m z ~ C Non-Managed Investments INVESTMENT DESCRIPTION County Pool Average/Total General, Payroll ft Petty Cash General Cash (Union Bank) Payroll Cash (Union Bank) Emergency Cash (Union Bank) Grant Cash (Union Bank) Flexible Benefits Cash (Union Bank) Petty Cash Total Cash Settlement Yield to Date Maturity 12/31/22 1 2.97%1 I l , 2.97%1 Days to % of Total Maturity Investment 1 I 100.00%1 I -I N/A I 100.00%1 - Part Ill ~ =,, Face Book Value Value $150,325.28 1 $150,325.28 1 I I $150,325.28 1 $150,325.28 1 ------ Book Value $5,720,764.35 $20,000.00 $10,000.00 $0.00 $20,000.00 $8,600.00 $5,779,364.35 Market Unrealized Value Gain(Loss) $143,248.oo 1 ($7,077.28)1 I -I $143,248.00 j -($7,077.28)1 February 21, 2023, Item #3 DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA RE PO RT City of Poway CITY COUNCIL February 21, 2023 Honorable Mayor and Members of the City Co~ncil Eric Heidemann, Director of Public Works tz Will Wiley, Assistant Director of Public Works for Maintenance Operations ~./ (858) 668-4705 or wwiley@poway.org '/ JV Resolution to Award Bid to Vulcan Materials Company for Portions of the Bid, Terminate Portions of the Bid, and Authorize Open Market Purchase or Competitive Negotiations for Asphalt, Aggregates and Related Materials; Bid No. 23-006 A request for bid (RFB) for Asphalt, Aggregates and Related Materials, Bid No. 23-006, was duly advertised on December 8 and December 15, 2022. Bid specifications allowed the City of Poway (City) to award one or more of each material bid to the same vendor or separate vendors and to reject any or all bids or all items. One (1) bid was received and opened on January 19, 2023. The bid received included pricing for 15 of the 19 items. Staff reviewed the bid and determined Vulcan Materials Company to be responsible and responsive. The length of the sale and purchase of goods and materials contract (contract) is one (1) year beginning February 22, 2023. The contract may be extended annually dependent on Council appropriation of funds for up to four (4) additional one (1) year terms, for a maximum total contract length of five (5) years. In accordance with Poway Municipal Code sections 3.28.070 (E) and 3.28.080 (G), Council may adopt the Resolution authorizing open market purchase for the items not bid, which were crushed coarse washed aggregate for Portland cement concrete (bid items 9 and 15) and sand for Portland cement concrete (bid items 11 and 17). Recommended Action: It is recommended City Council: (1) Adopt the Resolution terminating portions of the bid and authorizing an open market purchase or competitive negotiations for the four (4) bid line items that did not receive bids; (2) Award the bid for asphalt aggregates and related materials to Vulcan Materials Company for bid items 1-8, 10, 12-14, 16, and 18-19; (3) Authorize an appropriation totaling $163,000.00 from the General Fund Unassigned Fund Balance (Fund 1000); and (4) Authorize the City Manager to execute any necessary documents. 1 of 14 February 21, 2023, Item #4 Discussion: In order for Public Works staff to maintain the City's streets and infrastructure, the purchase of asphalt and related materials is necessary. This contract will provide supplies and materials for the annual asphalt program and as-needed material purchases for various divisions within Public Works. Asphalt products will be picked up from the plant by City vehicles and/or contract trucking, as well as delivered by the vendor to the jobsite or the Public Works Materials Handling Yard. On December 8 and December 15, 2022, staff duly advertised an RFB. The RFB was advertised on the City's website, online bid portal, and in the local newspaper. In addition, staff contacted three (3) vendors regarding the bid opportunity. One (1) bid was received and opened on January 19, 2023. A summary of the bid received is provided in Tables 1 -4 below and on the following page. Table 1: Vulcan Materials Company Bid Summary-Product for Annual Asphalt Program ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL NO. QUANTITY 1. 3/4" Asphalt Base Course 500 TON $104.36 $52,180.00 2. 1 /2" Asphalt Surface Course 3,000 TON $104.36 $313,080.00 3. 3/8" Asphalt Surface Course 1,000 TON $115.14 $115,140.00 4. Asphalt Skin Patching Sheet 200 TON $115.14 $23,028.00 Mix 5 Berm Mix 200 TON $131.30 $26,260.00 6. 3/8" Cold Mix 300 TON $131.30 $39,390.00 Table 2: Vulcan Materials Company Bid Summary -Disposal ITEM DESCRIPTION QUANTITY UNIT TOTAL NO. 7. Asphalt/ Concrete Disposal 1 EA $1,000.00 10YDDUMP Table 3: Vulcan Materials Company Bid Summary -Product and Delivery ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL PRICE NO. QUANTITY DELIVERED 8. 3/4" Crushed Coarse 50 TON $46.94 $2,347.00 Aggregates 3/4" Crushed Coarse Washed No Bid No Bid 9. Aggregate for Portland 100 TON Submitted Submitted Cement Concrete 10. Sand / Fine Aggregate 100 TON $39.40 $3,940.00 11. Sand for Portland Cement 50 TON No Bid No Bid Concrete Submitted Submitted 12. Crushed Aggregate Base 400 TON $52.33 $20,932.00 13. Class II Recycled Base 500 TON $22.78 $11,390.00 2 of 14 February 21, 2023, Item #4 Table 4: Vulcan Materials Company Bid Summary -Product Only ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL PRICE NO. QUANTITY 14. 3/4" Crushed Coarse 50 TON $28.94 $1,447.00 Aggregates 3/4" Crushed Coarse Washed No Bid No Bid 15. Aggregate for Portland Cemen 100 TON Submitted Submitted Concrete 16. Sand / Fine Aggregate 100 TON $21.40 $2,140.00 17. Sand for Portland Cement 50 TON No Bid No Bid Concrete Submitted Submitted 18. Crushed Aggregate Base 400 TON $34.33 $13,732.00 19. Class II Recycled Base 500 TON $12.78 $6,390.00 It is recommended the bid be awarded to Vulcan Materials Company for the materials and services as outlined in the bid summary tables. Due to increased materials and service costs, the estimated cost of asphalt and materials required for the annual asphalt program is $591,200.00. This will exceed the current available budget of approximately $428,200.00. Staff is requesting an appropriation in the amount of $163,000.00 to cover the annual asphalt program for Fiscal Year 2022-23. The asphalt and ' materials purchased for the asphalt program will be monitored, not to exceed the amount requested. Funds for subsequent fiscal years will be included in the annual budget process for Council consideration. Staff is requesting open market purchases to be approved for the remaining four (4) material items not bid. Open market purchases would allow staff to secure competitive quotes on a case-by-case and as-needed basis for the remaining materials. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The Fiscal Year 2022-23 Streets Division budget (411040-43201) includes $428,213.21 for the annual asphalt program. An appropriation is being requested from the General Fund Unassigned Fund Balance (Fund 1000) to cover the remaining amount of $163,000.00 for the initial year of the agreement due to increased material costs. Amounts for subsequent fiscal years will be included in the annual budget process for Council's consideration. There is sufficient funding available in the following divisions' operating budgets for as-needed asphalt, aggregate and purchase of related materials: Water Transmission and Distribution (402560- 47600); Wastewater Collection (403570-47600); Street Maintenance (411040-45900); Stormwater and Flood Control (412040-47600); Park, Trail and Landscape Maintenance (414040-47600). Amounts for subsequent fiscal years will be included in the annual budget process for Council's consideration. Public Notification: None. 3 of14 February 21, 2023, Item #4 Attachments: A. Resolution B. Contract Reviewed/Approved By: Assistant City Manager 4 of 14 Reviewed By: Alan Fenstermacher City Attorney Approved By: cff!!.2 City Manager February 21, 2023, Item #4 RESOLUTION NO. 23- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, TERMINATING PORTIONS OF BID NO. 23-006 FOR ASPHALT, AGGREGATES AND RELATED MATERIALS AND DIRECTING STAFF TO PROCEED WITH OPEN MARKET PURCHASING OR COMPETITIVE NEGOTIATIONS WHEREAS, the City of Poway did duly advertise for bids for Asphalt, Aggregates and Related Materials, Bid No. 23-006; WHEREAS, the deadline to receive bids for asphalt, aggregates and related materials was 2:00 p.m. on January 19, 2023; WHEREAS, no bids were received for four (4) of the 19 items by the City on or before the deadline; WHEREAS, pursuant to Poway Municipal Code Section 3.28.070 (E) and 3.28.080 (G), the City Council may reject all bids or part thereof, and re-advertise for bids, or, in the event no bids are received, the City Council may follow the procedures set forth in Public Contract Code Section 20166 and 20167, and waive formal bidding and authorize the Director of Finance or designee to proceed with purchasing materials through the open market process or competitive negotiations; and WHEREAS, due to the City receiving no bids for specific aggregate materials through formal bidding procedures, the City Council believes it to be in the best interest of the City to proceed with the purchasing of these materials through either open market purchasing or competitive negotiations with one or more vendors. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The City Council hereby finds that after fully complying with the City's purchasing ordinance, no bids were received for four (4) items (9, 11, 15 and 17) in the Asphalt, Aggregates and Related Materials, Bid No . 23-006. SECTION 2: The City Council hereby terminates the bid process for the four (4) items in the Asphalt, Aggregates and Related Materials bid and authorizes the Director of Finance or designee to proceed with the purchase of materials for the project through either open market purchasing or competitive negotiation with one or more vendors, such procedure to be determined at the sole discretion of the Director. SECTION 3: This Resolution shall require a four-fifths vote of the City Council. 5 of 11 ATTACHMENT A February 21, 2023, Item #4 Resolution No. 23- Page 2 PASSED, ADOPTED AND APPROVED at a regular Meeting of the City Council of the City of Poway, California on the 21st day of February, 2023 by the following vote, to wit: AYES: NOES: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 6 of14 February 21, 2023, Item #4 CONTRACT FOR THE SALE AND PURCHASE OF GOODS AND MATERIALS This Contract, entered into this 22nd day of February, 2023, by and between the CITY OF POWAY, a general law city and municipal corporation (the "City"), and VULCAN MATERIALS COMPANY, an Alabama corporation (the "Seller"). 1. Sale and Purchase. Seller will sell, transfer and deliver to City, and City will accept and purchase from Seller at the locations identified in Section 5, below, and in Bid Schedule, attached hereto as Exhibit "A" and made part hereof, all of the goods, materials and other items in such quantities as City may require, of such specified sizes, quality and types, classifications, and minimum order for each shipment, as defined by the Department of Public Works, and as are identified in Bid Schedule. The initial length of the City of Poway contract will be one (1) year, beginning February 22, 2023, and ending on February 21, 2024. This contract may be extended for up to four (4) additional one-year periods upon approval in writing of the City Manager and Seller. 3. Price. Seller agrees to invoice the goods and services, as it may apply, sold at the prices identified in Bid Schedule for the first year of the contract, with an escalation of price in the second year of the contract based on the following: Asphalt Products: If a price increase is requested, prices will be negotiated by City and Contractor based on the annual change in the previous calendar year's California Statewide Crude Oil Price Index published by CalTrans, or other similar industry index. Any negotiated price increases will be capped at 10%. The first adjustment would occur no earlier than February 21, 2024. Aggregate, Sand, and Other Materials: The annual change in the previous calendar year's Consumer Price Index for the San Diego area (All Urban Consumers CPI- U) or 5% whichever is less. The first adjustment would occur no earlier than February 21, 2024, and would be based on the change in the San Diego Region Consumer Price Index for the previous calendar year. 7 of 14 ATTACHMENT B February 21, 2023, Item #4 4. Payment. The City shall make payment within 30 days of receipt of invoice after delivery of product. Payment shall be considered as having been made upon the date such payment is deposited in the U.S. Mail, first-class postage pre-paid and addressed to Seller. 5. Delivery. The goods identified in the Bid Schedule will be delivered in accordance with the Bid Specifications. 6. Supply and Output Capability of Seller. If Seller is unable for any reason to supply City's requirements, Seller shall immediately notify City and provide its best estimate of the delivery and installation, as it may apply. City may, at its sole and exclusive option, notify Seller in writing of City's decision to terminate the order without liability. If the inability to supply City with its needs is not due to the negligence or faults of Seller, and Seller has notified City in writing as soon as Seller discovers the circumstances necessitating a revised delivery date, the termination of the order shall not entitle City to any damages. 7. Claims. The shipment will be FOB Poway, CA at the address set forth in Section 5 above, and all delivery charges and claims for damage in route are the responsibility of the Seller. Evident damage to any shipment will be indicated by a notation, which will, with the exception of concealed damages, be made by the carrier's agent on the delivery receipt before the receipt is signed for acceptance. The notation must clearly specify the extent of damage. Concealed damage must be reported to the carrier within 15 days of delivery. 8. Assignment and Delegation: Successors. Neither Seller nor City shall assign any rights or delegate any obligations to the Contract without express written approval and acceptance of the other party. Any such assignment or delegation without express written approval and acceptance shall be null and void. All terms, conditions and provisions of this Contract, the Seller's Bid, and the Poway RFP shall inure to and bind each of the parties hereto, and each of their successors in interest, executors, and administrators. 8 of 14 February 21, 2023, Item #4 9. Indemnification. Seller agrees to indemnify, defend by an attorney of the City's own choice, and hold harmless, the City, and its elected and appointed officers, agents and employees (the "lndemnitees") against any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys' fees and disbursements (collectively "Claims"), which lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of or allegedly caused by the City's use of the product or installation services sold by seller to City, provided that City has not altered or tampered with such product in any way and has used such product in accordance with Seller's or manufacturer's instructions and warnings. If any action or proceeding is brought against lndemnitees by reason of any of the matters against which Seller has agreed to indemnify lndemnitees as provided above, Seller, upon notice from City, shall defend lndemnitees at Seller's expense in the manner set forth above in this Section 9. lndemnitees need not have first paid for any of the matters to which lndemnitees are entitled to indemnification in order to be so indemnified. The insurance required to be maintained by Seller shall ensure Seller's obligations under this section, but the limits of such insurance shall not limit the liability of Seller hereunder. The provisions of this section shall survive the expiration or earlier termination of this Contract. The provisions of this section do not apply to Claims occurring as a result of this City's sole negligence or willful acts or omissions. The parties agree to cooperate fully in the resolution of any claims for such liability, loss or damage. 10. Seller's Insurance. The City shall be named as an additional insured with the bidder. Refer to the Insurance Code of the State of California. Evidence shall be furnished that the requirements of said code are met. Unless specified otherwise, the minimum requirements are as follows: 9 of 14 a. Comprehensive General Liability: $1,000,000 Bodily Injury & Property Damage combined each occurrence and $2,000,000 aggregate; b. Automobile Liability, including owned, hired, and non-owned vehicles: $1,000,000 Combined Single Limit coverage; c. Workers' Compensation insurance: Per the statutory amount. Each policy is to provide primary coverage to City and its elected and February 21, 2023, Item #4 appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City. Upon request by City prior to the time of Award of Contract, the bidder agrees to promptly provide City with letters from insurance companies meeting the requirements of the contract documents verifying that they are prepared to issue insurance to bidder meeting all requirements of the contract documents. The failure of bidder to provide City with insurance meeting all requirements of the contract documents within 15 calendar days after the Award of Contract shall constitute a material breach of the contract, entitling City to terminate the contract. All bonds and all insurance shall meet the following standards. The issuing company: a. Shall be an "admitted surety" or an insurance company listed by the State Insurance Commissioner; and b. Shall have a rating in the latest Best's Rating Guide of "A-" or better and Class VI or better; or be "treasury listed" for the size of risk to be undertaken. In the event that the company does not satisfy subsection (b) above, the City Attorney or City Manager may only approve such company if the small size of the insurance or surety obligation or other risk factor justify approval, and satisfactory evidence is produced by the company that its financial responsibility and performance capability are sufficient to insure or secure adequately the risk obligation (See City Council Resolution 90-082). 11. Integration. The terms of this Contract are intended by the parties to be the final expression of the parties' agreement with respect to such terms and also as a complete and exclusive statement of such terms. There are no oral or written agreements other than this Contract, and the Seller's Bid. However, in the event of any conflict between the written expressions of this Contract and the Seller's Bid, the terms and interpretations given to the provisions of this writing shall prevail. 12. Applicable Law. The order shall be governed by the laws of the State of California. Any legal action brought to enforce the terms and conditions of this Contract shall be filed in a court of competent jurisdiction with San Diego County. Seller hereby waives any right to remove any action from San Diego County as is otherwise provided in California Code of Civil Procedure Section 394. In the event any legal action is taken by either party to this Contract, the prevailing party shall be entitled to recover reasonable attorney fees and court costs from the other party. 10 of 14 February 21, 2023, Item #4 IN WITNESS WHEREOF, the parties hereto have duly executed this Contract on the date first above written. CITY OF POWAY By:------------Chris Hazeltine, City Manager Date: ----------- ATTEST: Carrie Gallagher, CMC, City Clerk APPROVED AS TO FORM: By: __________ _ Alan Fenstermacher, City Attorney 11 of 14 VULCAN MATERIALS COMPANY By:------------- David A. Church, Sales Analyst II Date: ------------ February 21, 2023, Item #4 EXHIBIT "A" PROPOSAL TO THE CITY OF POWAY, CALIFORNIA Pursuant to and in compliance with the notice inviting sealed bids, the undersigned bidder proposes and agrees to supply: ASPHALT, AGGREGATES AND RELATED MATERIALS Bid No. 23-006 in accordance with these specifications, instructions and conditions to the City of Poway in the time, form and manner provided by law at the bid prices herein. Firm Name: Vv\. / C;). n ·1;1\ct f eri':~ k (~ 'j"' f 0 {1\;\ ~/t~/ _} By: (signature) Name and Title: {Please print) Address: Telephone: Fax: Email Address: A I O(Jrs-J Company State of California Business Registration Number: 3 0 9 3 L 7 'o Please use https://businesssearch.sos.ca.gov/ 12 of 14 February 21, 2023, Item #4 EXHIBIT "A" BID SCHEDULE CITY OF POWAY ASPHALT, AGGREGATES AND RELATED MATERIALS Bid No. 23-006 The City reserves the right to award asphalt products, asphalt / concrete disposal and aggregate materials to separate vendors. TABLE1:PRODUCT ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE NO. QUANTITY TOTAL 1. 3/4" Asphalt Base Course 500 TON $~.2~-$ S:2.,; f5◊-, 2. 1/2" Asphalt Surface Course 3,000 TON $J0L/1_¼_ $--2.l.1..Ql(Q.=_ 3. 3/8" Asphalt Surface Course 1,000 TON $J ~.l.:L_ $jlJ , jL-i{J- I 4. Asphalt Skin Patching Sheet 200 TON $ 115 ,I~ $ 27:),0 l.~--Mix V 5 Berm Mix 200 TON $ .J.3.L3.o_ $ 2.6, 2.60 --r- 6. 3/8" Cold Mix 300 TON $ ' .3.l.._3.Q 1 --$ .... 3.9.; 3 <J. 0 .- TABLE 1 TOTAL BID IN FIGURES:£._$ __::5:.::.......::0:__· l..1,I ,-; ...::O:.......J.7~3 ..!.., _0.::....;:(J;....' --------- TABLE 1 TOTAL BID IN WORDS: ____,F_-_;\_,t._. _ _,_H ::...:½=" {lc...:...>L;QC...:...(-'-<e,'-><J .__---=5:::....· .....:i x.::....t.,_3-1-· _-..... N .... · lc..:...r ..:....:, t-~:...._.....:T....:.h.:...:c:_\,::...:l ~=J..:..c.,1...;..,-=' _.S~e."-"v--"'e-'-11'--t-3_---'-f;:.---'-(J"-"\!+'-h-'--t-'-. __ DOLLARS and __ ......,M ....... oL _______ CENTS Please nqte any additional cost to dump clean asphalt grinds:$ _____ _ per I oat.\ . This will be taken into consideration for the total bid pricing. TABLE 2: DISPOSAL ITEM DESCRIPTION QUANTITY UNIT I TOTAL NO. 7. Asphalt/ Concrete Disposal 1 EA I $ _4QQQ.l.QD 10 YD DUMP TABLE 2 TOTAL BID IN ;..;Fl...::G...::U...:...R=E=S;_,;:$ _ ___,,,L,.......,,Q.,_1.....;o_o~,,.....,_C ... 1 .... C~---~------- TABLE 2 TOTAL BID 1N woRDs:_---'C~)~;_..1 __ ~"-----➔l------h ...... o .... \A. .......... '2 ..... 0__,__n ..... J ..... · ______ _ -----~------DOLLARS and n/4., CENTS 13 of 14 February 21, 2023, Item #4 EXHIBIT "A" BID SCHEDULE {Page 2) TABLE 3: PRODUCT AND DELIVERY ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL PRICE NO. QUANTITY DELIVERED 8. 3/4" Crushed Coarse 50 TON i lj '.Ct ~ $ 2.3~7 -Aggregates 3/4" Crushed Coarse Washed 9. Aggregate for Portland Cement 100 TON $ -$ - Concrete 10. Sand I Fine Aggregate 100 TON $ 3~.~' $ ~3. CL '-I u - 11. Sand for Portland Cement 50 TON $ -$ - Concrete 12. Crushed Aggregate Base 400 TON $ 52,13 $ 20 , ~ 22--T 13. Class II Recycled Base 500 TON $ Z2J 'i5 $ 11, 3 j o ·- TABLE 3 TOTAL BID IN FIGURES: $ 3 7.) 1 0 0 9 ---=-..:;...;., --'---------------- TABLE 3 TOTAL BID IN WORDS: _·..:...1...:.h-'-',..!...·,r_t:J..c.,(,· ..... -__...[,_,_.:)-=+d...,_'.).._f _ ..... T _h ..:;.c --""·-1 ...._:,i:1;,a..;" ·l...._10:....i..·1 _--"-'S--'-'ix ..... · _ .... -H'-'\A"-'t_,_1,...d-'r e .... ,_! __ {\_J..._//J ........ f __ , ________ DOLLARS and ----'-Af'-'-,,_', ________ CENTS TABLE 4: PRODUCT ONLY ITEM DESCRIPTION ESTIMATED UNIT UNIT PRICE TOTAL PRICE NO. QUANTITY NOT DELIVERED 14. 3/4" Crushed Coarse 50 TON $ 2 g, 9'-/ $ l .t./i./l ~ Aggregates 3/4" Crushed Coarse Washed 15. Aggregate for Portland Cement 100 TON $ -$ ---- Concrete 16. Sand I Fine Aggregate 100 TON $ 2 1.~o $ 2.i i.f 6 ·- 17. Sand for Portland Cement 50 TON $ -$ -Concrete 18. Crushed Aggregate Base 400 TON $ 34,.33 $15 :73 2-,. 19. Class II Recycled Base 500 TON $ l 2,1g $_4"3i0 TABLE 4 TOTAL BID IN FIGURES: $ L 3 · 7 0 9 , (J Q -----;---'-~~------------- TABLE 4 TOTAL em IN woRDS: T we,aJ.9 -Th ,'"e,\,, l hov.:xtv1 d .Seven /1 y(")dr e, d A I~'() e, DOLLARS and 1/4 CENTS ' ---~~-------- BIDDER'S TITLE: 5J It 5 A n11 !ys f J(- sIGNATURE: ~/!:~--DATE: I lief /2-3 p- 14 of 14 February 21, 2023, Item #4 DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT CityofPoway CITY COUNCIL February 21, 2023 Honorable Mayor and Members of the City Council Eric Heidemann, Director of Public Works ~ + Will Wiley, Assistant Director of Public Works for Maintenance Operation (858) 668-4705 or wwiley@poway.org Award of Contract to Danny Letner, Inc. DBA Letner Roofing Company for the Poway Swim Center Locker Room Roof Replacement Project; RFP No. 23-011 An informal request for bids for the Poway Swim Center Locker Room Roof Replacement Project, RFP No. 23-011, was solicited on December 16, 2022, by the City of Poway (City). Bids for this project were solicited directly from a pre-approved list of contractors in an informal bidding process under the California Uniform Public Construction Cost Accounting Act (CU PC CAA). The informal bidding process does not require public advertisement, but a proposal number was assigned for internal record keeping purposes. A mandatory pre-bid meeting was held on January 5, 2023, and attended by six (6) contractors. Four (4) bids were received and opened on January 17, 2023. Staff reviewed the bids and determined the lowest responsible and responsive bidder to be Danny Letner, Inc. DBA Letner Roofing Company (Letner Roofing Company). Recommended Action: It is recommended City Council award the contract for the Poway Swim Center Locker Room Roof Replacement Project to Danny Letner, Inc. DBA Letner Roofing Company in the amount of $133,825.00 and authorize the City Manager to execute any necessary documents. Discussion: As part of the annual budget process, funds are allocated for capital projects through the Capital Improvement Program (CIP) for investment in City infrastructure, including City facilities. During the Fiscal Year 2022-23 budget process funds were allocated to the Facilities General Maintenance Roofing Project (MN035). It was determined a portion of the funds would be utilized for the locker room roof replacement at the Poway Swim Center. The roof was not included in the 2018 renovations at the facility, and it is in need of replacement. The scope of work for this project consists of the labor and incidental materials only, as the City purchased materials through the California Multiple Award Schedules (CMAS) cooperative purchasing program. Materials were purchased under a purchase order with Weatherproofing Technologies, Inc. This eliminated contractor mark-up on the materials 1 of 12 February 21, 2023, Item #5 for the project. All project work will be coordinated with the Community Services Department. The work can be completed while the facility is occupied, so there will be no interruptions to facility operations. The contract time for this project is 15 working days. On December 16, 2022, bids were solicited directly from six (6) contractors on the City's pre-approved list of contractors in an informal bidding process under CUPCCAA. To be placed on the pre-approved contractors list, contractors must complete the contractor's pre-qualification application form available on the City's website. Annually, the City provides notice of the registration opportunity to contractors through written notice published in trade journals. On January 5, 2023, City staff held a mandatory pre-bid meeting at the Poway Swim Center, which was attended by the six (6) contractors. Four (4) bids were received and opened on January 17, 2023. The bids received were more than the estimated project budget, so staff requested best and final offers (BAFO) from all four (4) proposing contractors. Three (3) BAFO bids were received on January 26, 2023. A summary of the bids received is provided in Table 1 below: Table 1: Poway Swim Center Locker Room Roof Replacement Project Bids Summary Company Original Bid Best and Final (BAFO) Bid A Good Roofer, Inc. $306,838.00 N/A Chambers Inc. DBA $140,810.00 $140,710.00 Roof Construction Danny Letner, Inc. DBA $224,075.00 $133,825.00 Letner Roofing Company Sylvester Roofing Co. Inc. $161,000.00 $161,000.00 The low bid submitted by Letner Roofing Company was responsive and met the requirements of the bid specifications. Based on the bids received and the work required to complete the project, Letner Roofing Company's price is fair, reasonable, and Letner Roofing Company is qualified to complete the work. Staff recommends the contract be awarded to Letner Roofing Company for the labor to replace the roof at the Poway Swim Center in the total amount of $133,825.00. The Capital Facilities Renovation Roofing Project (MN035) has a remaining balance of $62,435.19 to award this contract. Due to increased labor costs, available remaining funds from Capital Facilities Renovation Project (MN027) will also be used. The total project amount, including $53,036.17 in materials cost, is $186,861.17. Environmental Review: This action is not subject to review under the California Environmental Quality Act (CEQA). Fiscal Impact: The Capital Facilities Renovation Roofing Project (MN035) includes $62,435.19 to award a portion of this contract. There is sufficient funding available in Capital Facilities Renovation Project (MN027) to award the remaining $71,389.81. This project is being split amongst project accounts due to increased materials and labor costs. 2 of 12 February 21, 2023, Item #5 Public Notification: None. Attachments: A. Contract Reviewed/ Approved By: We ~Kaserman Assistant City Manager 3 of 12 Reviewed By: Alan Fenstermacher City Attorney Approved By: City Manager February 21, 2023, Item #5 SECTION 8 CONSTRUCTION CONTRACT CITY OF POWAY Poway Swim Center Locker Room Roof Replacement This Contract made and entered into this 22nd day of February, 2023, by and between City of Poway, a municipal corporation of the State of California, hereinafter referred to as "City" and Danny Letner, Inc. OBA Letner Roofing Company, hereinafter referred to as "Contractor." The City and the Contractor, for the consideration hereinafter named, mutually agree as follows: 1. The complete Contract includes all of the Contract Documents, which are incorporated herein by this reference, and include: a. This Contract b. Contract Addenda c. Contract Change Orders d. Instructions to Bidders, Proposal Requirements and Conditions e. Contract Specifications f. Contract Plans g. General Condition h. Special Conditions i. Standard Specification for Public Works, most current edition 2. The Contract Documents are complementary, and that which is required by one shall be as binding as if required by all. 3. Contractor shall provide and furnish all labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the following work of improvement: Services to be performed include furnishing of all labor, tools, equipment, services, and incidental and customary work necessary to competently perform the roof replacement at the City of Poway Swim Center Locker Room facility. 4. Contractor agrees to perform all the said work and furnish all the said materials at his own cost and expense that are necessary to construct and complete in strict conformance with Contract Documents and to the satisfaction of the City Engineer, 4 of 12 ATTACHMENT A February 21, 2023, Item #5 the work hereinafter set forth in accordance with the Contract adopted by the City Council. 5. City agrees to pay and Contractor agrees to accept in full payment for performance of this work of improvement as described, the stipulated sum of One Hundred Thirty-Three Thousand, Eight Hundred Twenty-Five Dollars ($133,825) the "Contract Price." City agrees to make progress payments and final payment in accordance with the method set forth in the Special Provisions. 6. Contractor agrees to commence construction of the work provided for herein within Fifteen (15) Calendar Days after the date specified in the Notice to Proceed, and to continue diligently in strict conformance with Contract Documents and without interruption, and to complete the construction thereof within Fifteen (15) Working Days after the date specified in the Notice to Proceed. 7. Time is of the essence of this Contract, and it is agreed that it would be impracticable or extremely difficult to ascertain the extent of actual loss or damage which the City will sustain by reason of any delay in the performance of this Contract. It is, therefore, agreed that Contractor will pay as liquidated damages to the City the following sum: Five Hundred Dollars ($500.00) per Calendar Day, for each and every Calendar Days delay in finishing the Work in excess of the number of Working Days prescribed above. If liquidated damages are not paid, as assessed by the City, the City may deduct the amount thereof from any money due or that may become due the Contractor under this Contract in addition to any other remedy available to City. By executing this Contract, Contractor agrees that the amount of liquidated damages is reasonable and shall not constitute a penalty. 8. In accordance with State of California Senate Bill No. 854, Contractor will maintain and will require all subcontractors to maintain valid and current Department of Industrial Relations (DIR) Public Works Contractor registration during the term of this project. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor's or any of its Subcontractor's DIR registration status has been suspended, revoked, expired , or otherwise changed . 9. Contractor will pay, and will require all subcontractors to pay, all employees on said Contract a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations and wage standards applicable to this work, a copy of which is on file in the office of the City Clerk of the City of Poway. Federal prevailing wage rates apply for federally funded projects. Travel and subsistence pay shall be paid in accordance with Labor Code § 1773.1. 10. Contractor shall be subject to the penalties in accordance with Labor Code of § 1775 for each worker paid (either by him or by any subcontractors under him) less than the prevailing rate described above on the work provided for in this Contract. 5 of 12 February 21, 2023, Item #5 11. Contractor and subcontractors shall comply with Labor Code § 1810 and § 1811 which stipulates that eight hours labor constitutes a legal day's work, and § 1812 which stipulates that the Contractor and subcontractors shall keep an accurate record showing the name of and actual hours worked each calendar day and each calendar week by each worker employed by him in connection with the work performed under the terms of the Contract. Failure to comply with these sections of the Labor Code will subject the Contractor to penalty and forfeiture provisions of the Labor Code§ 1813. 12. Contractor will comply with the provisions of Labor Code§ 1777.5 pertaining to the employment of apprentices to the extent applicable to this Contract. 13. Contractor, by executing this Contract, hereby certifies: "I am aware of and will comply with the Labor Code § 3700 by securing payment for and maintaining in full force and effect for the duration of the contract, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of the Contract. The City, its officers, or employees, will not be responsible for any claims in law or equity occasioned by failure of the Contractor to comply with this paragraph." Contractor further agrees to require all subcontractors to carry Workers' Compensation Insurance as required by the Labor Code of the State of California. 14. Contractor shall, concurrent with the execution of this Contract, furnish two bonds approved by the City, one in the amount of One Hundred Percent (100%) of the Contract Price, to guarantee the faithful performance of the work ("Performance Bond"), and one in the amount of One Hundred Percent (100%) of the Contract Price to guarantee payment of all claims for labor and materials furnished ("Payment Bond"). This Contract shall not become effective until such bonds are supplied to and approved by the City. 15. a. Contractor shall procure and maintain at its own expense, until completion 6 of 12 of performance, commercial general liability insurance of not less than One Million Dollars ($2,000,000) combined single limit per occurrence, and Two Million Dollars ($4,000,000) in the aggregate, for bodily injury, personal injury, death, loss or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers and agents and independent contractors. Contractor shall provide insurance on an occurrence, not claims- made basis. Contractor acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess insurance, personal and advertising injury coverage shall be triggered by an "offense" while bodily injury and property damage coverage shall be triggered by an "occurrence" during the policy period. February 21, 2023, Item #5 7 of12 b. Contractor shall further procure and maintain at its own expense, until completion of performance, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, covering any vehicle utilized by Contractor or its officers, employees, servants, volunteers and agents and independent contractors in performing the services required by this Agreement. c. Contractor shall further procure and maintain at its expense, until completion of performance, workers' compensation insurance providing coverage as required by the California State Workers' Compensation Law. If any class of employees employed by the Contractor pursuant to this Agreement is not protected by the California State Workers' Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Contractor has no employees performing work under this Agreement. Contractor agrees to waive its statutory immunity under any worker's compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved with the Project to do the same. Worker's Compensation Insurance: o Contractor has no employees and is exempt from workers' compensation requirements. o Contractor carries workers' compensation insurance for all employees. d. All policies required by this section shall be secured from insurers authorized to do business in the State of California with an "A" policyholder's rating or better and a financial rating of at least Class VII, in accordance with the current Best's Ratings. e. Contractor agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Contractor enters into contracts or whom Contractor hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and, except for worker's compensation coverage, name as additional insureds the parties to this Agreement. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. f. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City's review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated . February 21, 2023, Item #5 g. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the Project, Contractor shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City, and/or its officers, employees, servants, volunteers, agents and independent contractors, that result from such failure by Contractor. 16. a. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times until completion of performance and acceptance by the City. b. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the commercial general liability and commercial vehicle liability policies shall bear endorsements whereby it is provided that the City, and its officers, employees, servants, volunteers, agents and independent contractors are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages. c. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City, and its officers, employees, servants, volunteers, agents and independent contractors. d. Each policy required herein must be endorsed to provide that the policy shall not be cancelled in coverage or limits (except by paid claims) unless the insurer has provided the City with 30 days prior written notice of cancellation. Contractor agrees to provide the City with 30 days written notice prior to any non- renewal or reduction in coverage or limits. e. All insurance policies required to be provided by Contractor or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and its officers, employees, servants, volunteers, agents and independent contractors. 17. a. Contractor shall defend, indemnify and hold harmless the City, its officers, 8 of 12 officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therewith) to the extent actually caused by the negligence of Contractor, Contractor's employees, subcontractors or independent contractors except for any such claim arising out of February 21, 2023, Item #5 the negligence or willful misconduct of the City, or its officers, agents, employees or volunteers. b. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. 18. Any amendments to any of the Contract Documents, including but not limited to Contract Change Orders, must be in writing executed by the Contractor and the City. Any time an approval, time extension, or consent of the City is required under the Contract Documents, such approval, extension, or consent must be in writing in order to be effective. 19. The Contract Documents contain all of the agreements and understandings of the parties and all previous understandings, negotiations, and contracts are integrated into and superseded by this Contract. 20. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 21. The persons executing this Contract on behalf of the parties hereto warrant that they are duly authorized to execute this Contract on behalf of said parties and that, by so executing this Contract, the parties hereto are formally bound to the provisions of this Contract. 22 . This Contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns. 23. In performing its obligations and duties under this Contract, each party shall comply with all applicable local, state, and federal laws, regulations, rules, standards and ordinances. 24. This Contract may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 25. After completion of the work contemplated by this Contract, Contractor shall file with the City Manager an affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering 9 of 12 February 21, 2023, Item #5 disputed claims or items in connection with a Stop Notice that has been filed under the provision of the laws of the State of California. 26. All work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the work. 27. Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, Contractor shall immediately give notice thereof, including all relevant information with respect thereto, to City. 28. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4216.2. 29. Contractor shall submit its detailed plan for worker protection during the excavation of trenches required by the scope of the work in accordance with Labor Code Section 6705. 30. a. Contractor shall, without disturbing the condition, notify City, in writing, as soon as Contractor, or any of Contractor's subcontractors, agents, or employees have knowledge and reporting is possible, of the discovery of any of the following conditions: i. The presence of any material that Contractor believes is hazardous waste. as defined in Section 25117 of the Health and Safety Code; ii. Subsurface or latent physical conditions at the site differing from those indicated in the specifications: or iii. Unknown physical conditions at the site of any unusual nature. different materially for those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract. b. Pending a determination by City of appropriate action to be taken, Contractor shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person. c. City shall promptly investigate the reported conditions . If City, through and in the exercise of its sole discretion, determines that the conditions do materially differ or do involve hazardous waste, and will cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, then City shall issue a change order. 10 of 12 February 21, 2023, Item #5 d. In the event of a dispute between City and Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the contract. Contractor shall retain any and all rights that pertain to the resolution of disputes and protests between the parties. 31. This Contract is to be governed by the laws of the State of California. 32. All work shall be guaranteed for a period of one (1) year from the date of acceptance by the City. Contractor shall promptly make all needed repairs arising out of defective materials, workmanship, and equipment. City is hereby authorized to make such repairs if within ten (10) days after giving written notice to Contractor, or its agent, Contractor should fail to make or undertake with due diligence the aforesaid repairs; provided, however, that in case of an emergency, where, in the opinion of City, delay would cause serious loss or damage, repairs may be made without notice being sent to Contractor, and Contractor shall pay the costs thereof. (Remainder of page intentionally left blank) 11 of 12 February 21, 2023, Item #5 IN WITNESS WHEREOF, the said Contractor and the City Manager, City Clerk and City Attorney have caused the names of said parties to be affixed hereto, the day and year first above written. Contractor's Name: Danny Letner, Inc. OBA Letner Roofing Company By: -------------Signature Print Name Contractor information: Address for Notices and Payments Telephone Number: ______ _ Email: ------------ ATTEST: Carrie Gallagher, CMC, City Clerk APPROVED AS TO FORM: RUTAN & TUCKER, LLP Alan Fenstermacher, City Attorney 12 of 12 CITY OF POWAY a Municipal Corporation Chris Hazeltine, City Manager February 21, 2023, Item #5 DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT Cityof Poway February 21 , 2023 Honorable Mayor and Members of the City Couni, Robert Manis, Director of Development Services rv" Jeff Beers, Special Projects Engineer (858) 668-4624 or jbeers@poway.org C ITY COUNCIL Award of Contract to GQ Builders, Inc., for the Fire Station 1 Stairway Replacement Project, Bid No. 23-007 and Determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA) This action will award a construction contract for the demolition of interior space at Fire Station 1 and construction of a new stairway between the first and second floor. The project also includes removing an existing exterior stairway, and surface patching and painting to match the existing building exterior. Recommended Action: (1) It is recommended the City Council award the contract for the Fire Station 1 Stairway Replacement project to GQ Builders, Inc., in the amount of $141,000.00 and authorize the City Manager to execute the contract (Attachment A); and (2) Make a determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA). Djscussjon: The Fire Station 1 Stairway Replacement project consists of constructing an interior accessway for Fire Station 1 employees from the first floor to the second floor. Currently the only stair access to the second fl oor is by two exterior stairs on the southern and western walls of the station. This project will demolish the ex isting western exterior stairs to construct the interior second story landing of the new stairs. The contract time for this project is 60 working days with an engineer's estimate of $137,000. Bids were opened on January 18, 2023. The following 3 bids were received: Company Total Bid Amount Corrected Amount GQ Builders, Inc. $141,000.00 RJ Nichols Construction, Inc. $141,396.74 $80,774.00 LM Rasmussen Construction, Inc. $186,000.00 1 of 11 February 21, 2023, Item #6 RJ Nichols Construction, Inc. submitted a bid well below the engineer's estimate and contained math errors. Staff contacted the bidder and they acknowledged they had math errors which deemed their bid non-responsive. Therefore, GQ Builders, Inc. is recommended for award of this contract. Environmental Review: The proposed remodel of an existing facility is Categorica lly Exempt from the California Environmental Quality Act {CEQA) as a Class 1 Categorical Exemption, pursuant to Section 15301{c) of the CEQA Guidelines, in that the project involves interior modification of an existing facility with no expansion of use. Fiscal impact: There is sufficient funding available in the Fire Station 1 Stairway Replacement project account (BO009) to award the contract. Public Notification: None. Attachments: A. Contract Reviewed/Approved By: Wendyerman Assistant City Manager 2 of 11 Reviewed By: Alan Fenstermacher City Attorney Approved By: CW!iZ City Manager February 21, 2023, Item #6 SECTION 8 CONSTRUCTION CONTRACT CITY OF POWAY FIRE STATION 1 STAIRWAY REPLACEMENT This Contract made and entered into this 22nd day of February 2023, by and between City of Poway, a municipal corporation of the State of California, hereinafter referred to as "City" and GQ Builders, Inc., hereinafter referred to as "Contractor." The City and the Contractor, for the consideration hereinafter named, mutually agree as follows: 1. The complete Contract includes all of the Contract Documents, which are incorporated herein by this reference, and include: a. This Contract b. Contract Addenda c. Contract Change Orders d. Instructions to Bidders, Proposal Requirements and Conditions e. Contract Specifications f. Contract Plans g. General Condition h. Special Conditions i. Standard Specification for Public Works, most current edition 2. The Contract Documents are complementary, and that which is required by one shall be as binding as if required by all . 3. Contractor shall provide and furnish all labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the following work of improvement: Demolition of interior space at Poway Fire Station 1, located at 13050 Community Road, and construction of a new stairway between the first and second floor. The project also includes removing an existing exterior stairway, exterior wall fill-in, and surface patching and painting to match the existing building exterior. 4. Contractor agrees to perform all the said work and furnish all the said materials at their own cost and expense that are necessary to construct and complete in strict conformance with Contract Documents and to the satisfaction of the City Engineer, the work hereinafter set forth in accordance with the Contract adopted by the City Council. 3 of 11 ATTACHMENT A 1 February 21, 2023, Item #6 Fire Station 1 Stairway Replacement I Construction Contract 5. City agrees to pay and Contractor agrees to accept in full payment for performance of this work of improvement as described, the stipulated sum of $141,000.00 the "Contract Price." City agrees to make progress payments and final payment in accordance with the method set forth in the Special Provisions. 6. Contractor agrees to commence construction of the work provided for herein within Fifteen (15) Calendar Days after the date specified in the Notice to Proceed, and to continue diligently in strict conformance with Contract Documents and without interruption, and to complete the construction thereof within 60 Working Days after the date specified in the Notice to Proceed. 7. Time is of the essence of this Contract, and it is agreed that it would be impracticable or extremely difficult to ascertain the extent of actual loss or damage which the City will sustain by reason of any delay in the performance of this Contract. It is, therefore, agreed that Contractor will pay as liquidated damages to the City the following sum of $500.00 per Calendar Day, for each and every Calendar Days delay in finishing the Work in excess of the number of Working Days prescribed above. If liquidated damages are not paid, as assessed by the City, the City may deduct the amount thereof from any money due or that may become due the Contractor under this Contract in addition to any other remedy available to City. By executing this Contract, Contractor agrees that the amount of liquidated damages is reasonable and shall not constitute a penalty. 8. In accordance with State of California Senate Bill No. 854, Contractor will maintain and will require all subcontractors to maintain valid and current Department of Industrial Relations (DIR) Public Works Contractor registration during the term of this project. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor's or any of its Subcontractor's DIR registration status has been suspended, revoked, expired, or otherwise changed. 9. Contractor will pay, and will require all subcontractors to pay, all employees on said Contract a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations and wage standards applicable to this work, a copy of which is on file in the office of the City Clerk of the City of Poway. Federal prevailing wage rates apply for federally funded projects. Travel and subsistence pay shall be paid in accordance with Labor Code§ 1773.1. 10. Contractor shall be subject to the penalties in accordance with Labor Code of § 1775 for each worker paid (either by Contractor or by any subcontractors working under Contractor) less than the prevailing rate described above on the work provided for in this Contract. 11. Contractor and subcontractors shall comply with Labor Code§ 1810 and§ 1811 which stipulates eight hours labor constitutes a legal day's work, and§ 1812 which stipulates that the Contractor and subcontractors shall keep an accurate record showing the name of and actual hours worked each calendar day and each calendar 4 of 11 2 February 21, 2023, Item #6 Fire Station 1 Stairway Replacement I Construction Contract week by each worker employed in connection with the work performed under the terms of the Contract. Failure to comply with these sections of the Labor Code will subject the Contractor to penalty and forfeiture provisions of the Labor Code§ 1813. 12. Contractor will comply with the provisions of Labor Code § 1777 .5 pertaining to the employment of apprentices to the extent applicable to this Contract. 13. Contractor, by executing this Contract, hereby certifies: "I am aware of and will comply with the Labor Code § 3700 by securing payment for and maintaining in full force and effect for the duration of the contract, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of the Contract. The City, its officers, or employees, will not be responsible for any claims in law or equity occasioned by failure of the Contractor to comply with this paragraph." Contractor further agrees to require all subcontractors to carry Workers' Compensation Insurance as required by the Labor Code of the State of California. 14. Contractor shall, concurrent with the execution of this Contract, furnish two bonds approved by the City, one in the amount of One Hundred Percent (100%) of the Contract Price, to guarantee the faithful performance of the work ("Performance Bond"), and one in the amount of One Hundred Percent (100%) of the Contract Price to guarantee payment of all claims for labor and materials furnished ("Payment Bond"). This Contract shall not become effective until such bonds are supplied to and approved by the City. 15. a. Contractor shall procure and maintain at its own expense, until completion of performance, commercial general liability insurance of not less than One Million Dollars ($1 ,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers and agents and independent contractors. Contractor shall provide insurance on an occurrence, not claims-made basis. Contractor acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess insurance, personal and advertising injury coverage shall be triggered by an "offense'' while bodily injury and property damage coverage shall be triggered by an "occurrence" during the policy period. S of 11 b. Contractor shall further procure and maintain at its own expense, until completion of performance, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, covering any vehicle utilized by Contractor or its officers, employees, servants, volunteers and agents and independent contractors in performing the services required by this Agreement. 3 February 21, 2023, Item #6 6 of 11 Fire Station 1 Stairway Replacement I Construction Contract c. Contractor shall further procure and maintain at its expense, until completion of performance, workers' compensation insurance providing coverage as required by the California State Workers' Compensation Law. If any class of emp loyees employed by the Contractor pursuant to this Agreement is not protected by the California State Workers' Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Contractor has no employees performing work under this Agreement. Contractor agrees to waive its statutory immunity under any worker's compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved with the Project to do the same. Worker's Compensation Insurance: o Contractor has no employees and is exempt from workers' compensation requirements. o Contractor carries workers' compensation insurance for all employees. d. All policies required by this section shall be secured from insurers authorized to do business in the State of California with an "A" policyholder's rating or better and a financial rating of at least Class VII, in accordance with the current Best's Ratings. e. Contractor ag rees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Contractor enters into contracts or whom Contractor hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and, except for worker's compensation coverage, name as additional insureds the parties to this Agreement. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. f. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City's review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated. g. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the Project, Contractor shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City, and/or its officers, employees, servants, volunteers, agents and independent contractors, that result from such fa ilure by Contractor. 4 February 21, 2023, Item #6 Fire Station 1 Stairway Replacement I Construction Contract 16. a. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times until completion of performance and acceptance by the City. b. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the commercial general liability and commercial vehicle liability policies shall bear endorsements whereby it is provided that the City, and its officers, employees, servants, volunteers, agents and independent contractors are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages. c. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City, and its officers, employees, servants, volunteers, agents and independent contractors. d. Each policy required herein must be endorsed to provide that the policy shall not be cancelled in coverage or limits (except by paid claims) unless the insurer has provided the City with 30 days prior written notice of cancellation. Contractor agrees to provide the City with 30 days written notice prior to any non-renewal or reduction in coverage or limits. e. All insurance policies required to be provided by Contractor or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and its officers, employees, servants, volunteers, agents and independent contractors. 17. a. Contractor shall defend, indemnify and hold harmless the City, its officers, 7 of 11 officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therewith) to the extent actually caused by the negligence of Contractor, Contractor's employees, subcontractors or independent contractors except for any such claim arising out of the negligence or willful misconduct of the City, or its officers, agents, employees or volunteers. b. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. 5 February 21, 2023, Item #6 Fire Station 1 Stairway Replacement I Construction Contract 18. Any amendments to any of the Contract Documents, including but not limited to Contract Change Orders, must be in writing executed by the Contractor and the City. Any time an approval, time extension, or consent of the City is required under the Contract Documents, such approval, extension , or consent must be in writing in order to be effective. 19. The Contract Documents contain all of the agreements and understandings of the parties and all previous understandings, negotiations, and contracts are integrated into and superseded by this Contract. 20. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder. 21. The persons executing this Contract on behalf of the parties hereto warrant that they are duly authorized to execute this Contract on behalf of said parties and that, by so executing th is Contract, the parties hereto are formally bound to the provisions of this Contract. 22. This Contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns. 23. In performing its obligations and duties under this Contract, each party shall comply with all applicable local, state, and fed eral laws, regulations, rules, standards and ordinances. 24 . This Contract may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 25. After completion of the work contemplated by this Contract, Contractor shall file with the City Manager an affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice that has been filed under the provision of the laws of the State of California. 26. All work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. 8 of 11 6 February 21, 2023, Item #6 Fire Station 1 Stairway Replacement I Construction Contract Such final inspection shall be made within a reasonable time after completion of the work. 27. Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, Contractor shall immediately give notice thereof, including all relevant information with respect thereto, to City. 28. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4216.2. 29. Contractor shall submit its detailed plan for worker protection during the excavation of trenches required by the scope of the work in accordance with Labor Code Section 6705. 30. a. Contractor shall, without disturbing the condition, notify City, in writing , as 9 of 11 soon as Contractor, or any of Contractor's subcontractors, agents, or employees have knowledge and reporting is possible, of the discovery of any of the following conditions: i. The presence of any material that Contractor believes is ha:zardous waste, as defined in Section 25117 of the Health and Safety Code: ii. Subsurface or latent physical conditions at the site differing from those indicated in the specifications: or iii. Unknown physical conditions at the site of any unusual nature, different materially for those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract. b. Pending a determination by City of appropriate action to be taken, Contractor shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person. c. City shall promptly investigate the reported conditions. If City, through and in the exercise of its sole discretion, determines that the conditions do materially differ or do involve hazardous waste, and will cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, then City shall issue a change order. d. In the event of a dispute between City and Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or in crease in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the contract. Contractor shall retain any and all rights that pertain to the resolution of disputes and protests between the parties. 7 February 21, 2023, Item #6 Fire Station 1 Stairway Replacement I Construction Contract 31. This Contract is to be governed by the laws of the State of California. 32. All work shall be guaranteed for a period of one (1) year from the date of acceptance by the City. Contractor shall promptly make all needed repairs arising out of defective materials, workmanship, and equipment. City is hereby authorized to make such repairs if within ten (10) days after giving written notice to Contractor, or its agent, Contractor should fail to make or undertake with due diligence the aforesaid repairs; provided, however, that in case of an emergency, where, in the opinion of City, delay would cause serious loss or damage, repairs may be made without notice being sent to Contractor, and Contractor shall pay the costs thereof. (Remainder of page intentionally left blank) 10of11 8 February 21, 2023, Item #6 Fire Station 1 Stairway Replacement I Construction Contract IN WITNESS WHEREOF, the said Contractor and the City Manager, City Clerk and City Attorney have caused the names of said parties to be affixed hereto, the day and year first above written. Contractor's Name: Print Name of Construction Company · By: ------------Signature Print Name Contractor information : Address for Notices and Payments Telephone Number: ______ _ Email: ___________ _ CITY OF POWAY a Municipal Corporation Chris Hazeltine, City Manager ATTEST: Carrie Gallagher, CMC, City Clerk APPROVED AS TO FORM: RUTAN & TUCKER, LLP Ala n Fenstermacher, City Attorney 11 of 11 9 February 21, 2023, Item #6 The applicant proposes to construct a 20,604-square-foot, three-story boutique hotel consisting of 36 rooms with an exterior lobby terrace on the northeast corner of the intersection of Scripps Poway Parkway and Stowe Drive. The project will be required to comply with Poway Municipal Code requirements associated with the hotel. The proposed hotel can be allowed in the SPC land use designation area with the approval of a CUP and DR by City Council. The proposed site plan, floor plan and elevations are included as Attachment C. Background The subject parcel was previously owned by the City's former Redevelopment Agency. The parcel was created, along with being graded and partially improved with parking and landscaping as part of the adjoining Hampton Inn & Suites development. The parcels were configured, and the parking lot was created, with the intent of a future sit-down restaurant located on the subject property. The parking lot created for Hampton Inn & Suites originally included 214 parking spaces, of which 154 were required for the Hampton Inn & Suites. Of the 214, 50 of the spaces are partially or entirely located on the subject property intended for the restaurant. Following the dissolution of redevelopment agencies statewide that became effective in 2012, the Successor Agency to the Redevelopment Agency eventually sold the site through a public auction to Serendipity Hospitality, L.P. The subject project was initially proposed for the construction of a five-story hotel with a height of 59 feet which exceeds the maximum height requirement for a hotel in an SPC land use designation- three stories contained within the 35-foot height limit. In July of 2021, the item was removed from the City Council agenda at the request of the property owner who originally was proposing a specific plan amendment for the height extension. In July of 2022, the project was resubmitted for the construction of a three-story hotel with a height of 34 feet 6 inches. Findings The project satisfies all applicable development standards within the SPSP including the three-story and 35-foot height limit, open space, parking, setbacks, and architectural design requirements. The proposed architectural style is contemporary with similar form, massing, and materials found from surrounding developments. The exterior materials feature horizontal metal siding, lumber cladding, metal window cowl, and stucco with earth tone colors. The materials and colors have been strategically allocated on the fa~ade to enliven the vertical and horizontal surfaces of the architectural planes. As for the hotel interior, the first floor would consist of the supportive and amenity uses (a lounge, reception, office space, laundry/ maintenance rooms, a break room, and an exercise room) including eight hotel rooms with the second and third floors consisting of the remaining 28 rooms. A hotel use is permitted on the property subject to a CUP to ensure the proposed use is compatible with the surrounding uses. The prevailing existing businesses within the neighborhood are food services, offices, and general industrial uses. There is one existing hotel use (Hampton Inn & Suites) within the SPSP abutting the project site to the east. The proposed hotel is compatible with the surrounding developments and will provide additional accommodations to the surrounding neighborhood and the City. In addition, the hotel use is compatible with the use designation which is intended for commercial offices and various retail services that serve the needs of employees within the South Poway community and travelers on Scripps Poway Parkway. Staff believes the design and operation of the hotel would be compatible with the surrounding uses and support the business community. 2 of 32 February 21, 2023, Item #7 RESOLUTION NO. 23- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT 20-004 AND DEVELOPMENT REVIEW 20-005 FOR THE CONSTRUCTION AND OPERATION OF A THREE-STORY AND 35-FOOT-TALL HOTEL WITH 36 HOTEL ROOMS LOCATED AT 14082 STOWE DRIVE WITHIN THE SOUTH POWAY COMMERCIAL LAND USE DESIGNATION OF THE SOUTH POWAY SPECIFIC PLAN AREA; ASSESSOR PARCEL NUMBER: 323-481-19-00 WHEREAS, the City Council considered Conditional Use Permit (CUP) 20-004 and Development Review (DR) 20-005; a proposed three-story hotel contained within the 35-foot height building (Project) on property located at 14082 Stowe Drive within the South Poway Commercial (SPC) land use designation of the South Poway Specific Plan (SPSP) area; WHEREAS, on February 21, 2023, the City Council held a duly advertised public hearing to solicit comments from the public, both for and against, relative to CUP 20-004 and DR 20-005; 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; and WHEREAS, the Poway Municipal Code (PMC) establishes findings required for granting a CUP and DR. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows: SECTION 1: The project is exempt from CEQA as a Class 32 Categorical Exemption (In-Fill Development Projects) pursuant to Section 15332 of the CEQA Guidelines, in that the project use and development meets the general plan policies, zoning regulations and the South SPSP; the project site is 1.23-acres which is not more than five acres; the existing site is a parking lot that contains no habitat for endangered species; the proposed use would not result in significant effects to traffic, noise, air quality and water quality; and the site is adequately served by utilities and public services. SECTION 2: The City Council finds the proposed Project is consistent with the SPSP generally, including the SPC land use designation. SECTION 3: The findings, in accordance with Section 17.48.070 of the Poway Municipal Code (PMC) (findings required for a conditional use permit), for CUP 20-004 are made as follows: A The proposed location, size, design, and operating characteristics of the proposed use is in accordance with the title and purpose of Chapter 17.48 PMC (Conditional Use Permits Regulations), the purpose of the zone in which the site is located, the City general plan and the development policies and standards of the City in that hotels are permitted as a conditional use within the SPC land use. The proposed project meets all City development standards. 4 of 32 ATTACHMENT A February 21, 2023, Item #7 Resolution No. 23- Page 2 B. The location, size, design, and operating characteristics of the proposed use will be compatible with and will not adversely affect or be materially detrimental to adjacent uses, residents, buildings, structures, or natural resources in that all business operations will occur inside the proposed hotel with parking and circulation occurring within the parcel boundaries and adjoining parcel boundaries at 14068 Stowe Drive. As described under a reciprocal access and parking agreement, the project will have access to 77 parking spaces, 54 of which are either completely or partially on-site and 23 of which are on the adjoining parcel at 14068 Stowe Drive. C. The proposed use is in harmony with the scale, bulk, coverage, and density is consistent with the adjacent uses in that the proposed hotel will be in a building that meets the allowance for the SPC zone. D. There are adequate public facilities, services and utilities available at the subject site to serve the proposed use. E. There will not be a harmful effect upon desirable neighborhood characteristics in that the proposed architectural style of the hotel is contemporary with similar forms, massing, materials, and colors found within surrounding developments. The hotel is compatible with the SPSP guidelines. F. The generation of traffic will not adversely impact the capacity and physical character of the surrounding streets and/or the Circulation Element of the General Plan in that the parking evaluation demonstrated that the 36-room hotel will generate less vehicle trips than those generated for a restaurant previously considered for the site. G. The site is suitable for the type and intensity of use and development that is proposed in that the required 39 parking spaces can be accommodated by the 54 parking spaces on- site in addition to the 23 shared parking spaces on the adjacent hotel parcel at 14068 Stowe Drive. H. There will not be significant harmful effects upon environmental quality and natural resources in that the site was previously graded and partially developed and contains no natural habitat. I. There are no relevant negative impacts of the proposed use that cannot be mitigated. J. The impacts, as described in subsections A through I of this Section, and the proposed location, size, design, and operating characteristics of the proposed use and the conditions under which it would be operated or 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 adopted General Plan. K. The proposed conditional use will comply with each of the applicable provisions of this title. SECTION 4: The findings to approve DR 20-005, in accordance with the Poway Municipal Code (PMC) Chapter 17.52, are made as follows: A. The building form has been designed with the existing graded site topography which allows the land to be engaged in an architectural representation and minimizes the impact 5 of 32 February 21, 2023, Item #7 Resolution No. 23- Page 3 upon the topography and environment; therefore, the proposal recognizes and respects the interdependence of land values and aesthetics and provides a method by which the City may implement this interdependence to its benefit. B. The elements of site planning, such as site consideration, building placement, parking, circulation, and landscape, for the proposal has been taken into account which allows proper structure arrangement on the land and shaping of spaces between. The orientation and placement of the building is created such that the fa9ade along the public right-of-way has appropriate architectural treatment while the parking and vehicle circulation is within the interior of the lot thus creating a pedestrian-oriented public realm; therefore, the proposal demonstrates the orderly and harmonious appearance of structures and property within the City along with associated facilities. C. The hotel is consistent with the existing and surrounding development and meets the general plan guidelines and development standards such as developing and designing a hotel within the required site envelope created by City's development standards; therefore, it will maintain the public health, safety and general welfare, and property throughout the City. D. The proposed building fits the purpose for which it is designed (hotel within the South Poway Commercial), designed to be soundly built and durable, and provides natural materials, neutral color schemes, and uniform architectural articulations indicative of a contemporary style hotel; therefore, the proposed development respects the public concerns for the aesthetics of development. E. The proposed development has been designed in response to its specific build and natural environment by staying within the required site envelope created by City's development standards and general plan while balancing the use of the previously graded lot; therefore, the proposal does not have an adverse aesthetic, health, safety or architecturally related impact upon existing adjoining properties, or the City in general. F. The proposal has considered building form, site planning, architecture, context, and health and safety, which complies with the provisions of the Zoning Ordinance and the intent of SPC zone in the South Poway Specific Plan-diverse commercial uses to serve the office and retail needs of employees within the South Poway community and travelers on Scripps Poway Parkway. SECTION 5: 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 6 of32 February 21, 2023, Item #7 Resolution No. 23- Page 4 public infrastructure improvements, which promote a safe and healthy environment for the residents of the City. SECTION 6: The City Council hereby approves CUP 20-004 and DR 20-005, in as shown on the approved plans incorporated by reference herein as shown on the approved plans stamped as "Exhibit A", and dated January 23, 2023 on file in the Development Services Department 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 attorney's fees, against the City or its agents, officers, or employees, relating to the issuance of this permit, including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, applicant shall pay all the costs related thereto, including without limitation reasonable attorney's fees and costs. In the event of a disagreement between the City and applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter. However, the applicant shall not be required to pay or perform any settlement unless such settlement is approved by applicant. B. This approval is based on the existing site conditions and proposed Project details represented on the plans stamped "Exhibit A", and dated January 23, 2023 on file in the Development Services Department. 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 (PMC Chapter 8.08) 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. 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 7 of 32 February 21, 2023, Item #7 8 of32 Resolution No. 23- Page 5 Poway standard sheet at a scale of 1" = 20', unless otherwise approved by the City project engineer. The plans shall use vertical datum NAVD88. Please be aware that all elevations in the Poway Benchmark list are datum NGVD 29 and will need to be converted. Submittal shall be made to the Department of Development Services Engineering Division for review and approval. The grading design shall be 100% complete at the time of submittal, ready for approval and issuance of permit. Incomplete submittals will not be accepted. All technical studies as requ ired by Chapter 16 of the Poway Municipal Code shall be submitted. The applicant shall pay the grading permit and plan check fee according to the latest adopted master fee schedule. 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. 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. 4. 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. Two copies of a final Storm Water Quality Management Plan (SWQMP) prepared by a registered Civil Engineer is to be submitted and approved. Once the final SWQMP is approved; a. Provide two copies of an Operation & Maintenance (O&M) plan in accordance with Chapter 16.104 of the Poway Municipal Code, 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 section 16.104 of the Poway Municipal Code. 5. Grading securities shall be posted with the City prior to grading plan approval per section 16.46.080 of the Poway Municipal Code. A minimum cash security of $2,000 is required in all instances. 6. The applicant shall pay the storm water pollution inspection fee according to the latest adopted master fee schedule. 7. Following approval of the grading plans, posting of securities and fees, and receipt of four 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 along with four copies of the approved grading plans. The applicant's action plan that identifies measures to be implemented during construction to address erosion, February 21, 2023, Item #7 9 of 32 Resolution No. 23- Page 6 sediment and pollution control will be discussed. Compliance for sediment control shall be provided as directed by the project inspector. 8. 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. 9. 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) 10. Label and dimension all surface improvements (e.g., walkways, patios, landscape areas). The grading plan shall indicate the location of the projects required trash enclosure area. The area shall be an adequate size to accommodate recycled material and composting bins in addition to the trash dumpster. 11. 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 Ill 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. 12. 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, PMC Chapter 17.41, 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. a. A minimum of one 15-gallon tree, per City specification, shall be provided for every three parking spaces. Tree wells may be used to satisfy the parking lot tree planting requirement. Said trees shall be located to provide shade cover for the vehicles where practical. February 21, 2023, Item #7 10 of 32 Resolution No. 23- Page 7 b. The ratio of 15-gallon trees to 24-inch boxed trees or larger shall be four to one (4:1). c. The plans shall include shrubs to provide screening of the parking areas as seen from adjacent public streets. d. Any landscaped areas within the adjacent Stowe Drive public right-of-way shall be permanently and fully maintained by the owner. The landscaping plan shall incorporate a minimum one 24-inch box tree for every 30 feet of frontage along the public right-of-way. e. All existing irrigation and landscaping within any designated Scripps Poway Parkway Landscape Maintenance District (LMD) shall be protected to the greatest extent possible. Any LMD 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 the landscape plan review. f. Calipers, heights, and spreads at 15-year maturity shall be specified on the landscape plan and shall be to the satisfaction of the Development Services Director. 13. 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 Environmental Health (DEH) will assess fees for the following activities: a. b. C. Site Plan Check Shut Down Test** Title 22 Inspection $400 avg. costs* $320 avg. costs* $ 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) 14. A new recycled water service shall be installed and the existing shared recycled water service with the adjoining parcel that provides irrigation to the parcel shall be vacated. A new landscaping irrigation controller shall be installed on site. The DEH shall review plans for the new irrigation system in addition to the alteration to the existing shared irrigation system with the adjoining parcel. An inspection of all irrigation work will be required with the approved Landscape Plan. Both irrigation systems must be high lined to potable construction meter until complete and a cross- connection test is performed. 15. All existing irrigation and landscaping within any designated Landscape Maintenance District (LMD) and Land Development Association (LOA) areas shall be protected to the greatest extent possible. Any LMD and LOA 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 February 21, 2023, Item #7 be part of the landscape plan review. Resolution No. 23- Page 8 G. 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. Erosion control shall be installed and maintained by the developer from October 1 to April 30. The developer shall maintain all erosion control devices throughout their intended life. 3. Applicant shall obtain a Grading Permit and complete rough grading of the site . The grading shall meet the approval of the Engineering Inspector and the project's geotechnical engineer. Following completion of rough grading, please submit the following: a. Two copies of certification of line and grade for the lot, prepared by the civil engineer of work. b. Two copies of a soil compaction report for the lot, prepared by the project's geotechnical engineer. The certification and report are subject to review and approval by the City. 4. Improvement plans prepared on a City of Poway standard sheet at a scale of 1" = 20', unless otherwise approved by the City project engineer, in accordance with the submittal and content requirements listed in the Poway Municipal Code shall be approved. Submittal shall be made to the Department of Development Services Engineering Division for review and approval. The improvement design shall be 100% complete at the time of submittal and ready for approval. The applicant shall pay the improvement plan check fees according to the latest adopted master fee schedule. The plan shall include, at a minimum, the following features: a. 8-inch public water main to loop to the existing water main in the parking lot. b. 6-inch fire service and RPDA. 5. A plat and legal description for a minimum 20-foot-wide water easement shall be submitted to accommodate the public water main and fire service on the project site. 6. The applicant shall enter into a Standard Agreement for the work to be done as part of the Public Improvement plan. The applicant will be responsible for posting securities for public improvements in accordance with the Poway Municipal Code Section 16.20. 7. The applicant shall pay all applicable development impact fees according to the latest 11 of 32 February 21, 2023, Item #7 adopted master fee schedule at time of permit issuance. Resolution No. 23- Page 9 (Planning) 8. Trash receptacles shall be enclosed by a six-foot-high masonry wall, with view- obstructing gates, and shall provide an area for recyclable materials and compost bins (SB1383). 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 . 9. 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. 10. 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. 11. The colors and materials on the building shall be consistent with the approved colors on file in the Planning Division. 12. All two-way traffic aisles shall be a minimum of 25-feet wide. 13. 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. 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. A photometric analysis shall be provided after lighting installations to restrict light trespass and limit glare onto the adjacent public roads and onto existing neighboring properties to the satisfaction of the Director of Development Services. 14. All parking stalls shall observe a minimum 25-foot setback from the right-of-way. 15. Signs shall be proposed and approved under separate permits. 16. 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. 17. School impact fees shall be paid at the rate established at the time of Building Permit Issuance. Please contact the Poway Unified School District for the latest fee information. (Building) 12 of 32 18. The plans shall comply with the current addition of the California Building Code, Electrical Code, Mechanical Code, Plumbing Code and Title 24 at date of submittal to February 21, 2023, Item #7 the Building Division for review. Resolution No. 23- Page 10 H. Compliance with the following conditions is required prior to occupancy and release of securities: 13 of 32 (Engineering) .. 1. The stormwater facilities shall be complete and operational prior to occupancy. 2. All applicable easement dedications and maintenance agreements are to be recorded prior to occupancy. 3. 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. 4. 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. 5. The drainage facilities, driveway, slope planting measures, and all utility services shall be installed, and completed by the property owner, and inspected by the Engineering Inspector for approval. 6. An adequate drainage system around the new building pad capable of handling and disposing all surface water shall be provided to the satisfaction of the Engineering Inspector. 7. The applicant shall repair, to the satisfaction of the City Engineer, any and all damages to public improvements caused by construction activity from this project. 8. The applicant must complete upgrades of all driveways as shown on the site plan to be ADA complaint. Applicant must be approved for Right-of-Way permit prior to start of construction. 9. After completion of all work, record drawings for both the grading and improvement plans, signed by the engineer of work, shall be submitted to Development Services for review prior to a request of occupancy, per Section 16.52.130B of the Grading Ordinance. Approval of all record drawings is required prior to issuance of occupancy and release of grading and improvement securities. Initial submittal of record drawings at least three weeks prior to a request for occupancy is recommended. (Planning) 10. 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. 11. Landscaping and irrigation on-site and within the right-of-way fronting the property shall be installed per the approved landscape plans. February 21, 2023, Item #7 Resolution No. 23- Page 11 12. 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) 13. The existing shared recycled irrigation connection shall be abandoned. 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. I. Upon occupancy the following conditions of CUP 20-004 shall apply: 1. All landscaped areas on-site and 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. 4. The parking areas and driveways shall be well maintained and kept free from trash and debris. Any damage from any cause shall be repaired as soon as reasonably possible to minimize occurrences of dangerous conditions or visual blight. 5. Trash receptacles shall be enclosed by a six-foot-high masonry wall with view- obstructing gates. Locations shall be subject to approval by the Planning Division . 6. All parking lot landscaping shall include a minimum of one 15-gallon-size tree for every three spaces. For parking lot islands, a minimum 12-inch-wide walk adjacent to parking stalls shall be provided and separated from vehicular areas by a six-inch-high, six- inch-wide Portland concrete cement curb. 7. All parking spaces shall be double striped. The minimum dimensions for standard parking stalls shall be 8.5' x 18.5'. The parking lot design shall comply with the Americans with Disabilities Act for accessible spaces with one van accessible space. A minimum of 39 parking spaces shall be provided by either on-site parking spaces and off-site parking spaces provided by the Reciprocal Access and Parking Agreement with the adjoining parcel located at 14608 Stowe Drive. 8. All two-way traffic aisles shall be a minimum of 25-feet wide. A minimum 25-foot-wide emergency vehicle access shall be provided in accordance with Safety Services Department requirements. 9. Parking lot lighting and security lighting shall comply with Chapter 17.10.150(H) of the PMC. 14 of 32 February 21, 2023, Item #7 Resolution No. 23- Page 12 10. 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. 11. The owner or operator of the facility shall routinely and regularly inspect the site to ensure compliance with the standards set forth in this permit. 12. The use of the facility shall be limited to activities described in the application. The lounge and outdoor facilities is limited to hotel guests and shall not be operated as a restaurant or drinking establishment that is open to the public. 13. The activities of the facility shall not occur in such a manner as to create adverse impacts on the circulation and parking on surrounding streets. 14. The facility shall be operated in such a manner as to minimize any possible disruption caused by noise and shall comply with noise standards contained in Chapter 8.08 of the PMC. At no time, shall noise from any source exceed the noise standards defined in the PMC. 15. No outdoor storage, display or activities shall occur onsite except through approval of the appropriate permits. J. The following conditions shall be complied with as required by Public Services: 1. Any irrigation and/or vegetation damaged during construction shall be repaired/replaced at the cost of the contractor. 2. All trash treatment control devices and storm drain maintenance will be the property owner's responsibility. 3. Protect Stowe/Scripps Poway Parkway signal and Stowe Streetlight, LMD 19-1 landscaping and irrigation in place. Any damage done to LM D 19-1, the traffic signal or streetlight will be repaired at property owner's expense. 4. Plans to reference installation of Highline Bypass Assembly. This assembly will allow a temporary connection to an auxiliary source of water in the case of an emergency. It also enables continued potable water service to the site during Regulatory Recycled Water Shutdown Inspections. See attached recommended drawing on attachments page. 5. Return Completed FSEWDP (Food Service Establishment Wastewater Discharge Permit) Application, Employee Training Log, and GRE (Grease Trap/Interceptor) Cleaning Log. Ensure correctly sized and properly installed GRE (Grease Trap/Interceptor) is onsite, utilized and maintained. Submitted plans should reference correct size, type, location of installation, and all applicable tie-ins. Plans to be submitted to Development Services and County DEH. Schedule A Site Inspection Before The First Day of Business. (858) 668 4735. 6. Any damaged recycled water irrigation to be repaired with approved materials in accordance with original approved plans and agreement with the City Of Poway. Any 15 of 32 February 21, 2023, Item #7 Resolution No. 23- Page 13 major amendments to existing recycled irrigation systems to be marked in red . Copies of plans to be submitted to Poway Development Services and to the County Of San Diego DEH. Any damage to surrounding private irrigation (City Of Poway LMD, Hampton Inn) is to be repaired with approved materials, in accordance with the City of Poway Site User Agreement and to the Satisfaction of the appropriate party. b) The following conditions shall be complied with to the satisfaction of the Director of Safety Services: 1. The required fire flow shall be according to Appendix B of the 2022 California Fire Code, and, approved by the City. The water supply may require approved improvement to include the addition of water mains and fire hydrants as determined and approved by the Fire Department. A new fire hydrant may be required based on location of fire service underground and FDC. 2. The approved water supply for fire protection, either temporary or permanent, shall be made available as soon as combustible material arrives on site. 3. Prior to the delivery of combustible building material on site, the approved vehicle access, including driveways, for firefighting shall be installed, satisfactorily pass all required tests and approved by the City. All accesses shall be provided within 150- feet of all construction areas. Use of temporary vehicle access for firefighting shall require plan submittal, review, and approval by the City. 4. The project shall be accessible to Fire Department apparatus by way of access roadways with all-weather driving surface of not less than 20-feet of unobstructed width, with adequate roadway turning radius capable of supporting the imposed loads of fire apparatus having a minimum of 13'6" of vertical clearance. This 20-foot access width is the minimum required for Fire Department emergency access. In most cases, City Engineering standards will be more restricting. The more restrictive standard shall apply. The Fire Chief, pursuant to the City of Poway Municipal Code, shall approve the road surface type. 5. Permanent access roadways for fire apparatus shall be designated as "Fire Lanes" with appropriate signs and curb markings. 6. 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. 7. All dead-end fire access roads greater 150-feet in length shall be provided with approved provisions that allow emergency apparatus to turn around. 8. 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. 9. The building is required to be equipped with an approved fire sprinkler system according to Poway Municipal Code requirements. The fire sprinkler system shall be designed to meet California Fire Code and NFPA standards. All systems are required to be monitored by a central monitoring company. Backflow valve assemblies with 16 of 32 February 21, 2023, Item #7 Resolution No. 23- Page 14 tamper switches shall be monitored. The City Deputy Fire Marshal shall approve location of 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. 10. Fire sprinkler riser(s) shall be located inside an enclosed closet with an exterior access man door. Door shall be labeled with a sign indicating "Fire Sprinkler Riser." 11. Approved signage is required for fire sprinkler valves, fire alarm room, fire department connections, and backflow control valves. 12. A properly licensed contractor shall install an automatic fire alarm system to approved standards according to the Poway Municipal Code. The system shall be installed according to NFPA 72. The fire alarm system shall include, emergency voice/alarm communications, smoke detection, occupant notification, 1 manual fire alarm box (pull station), duct detection, annunciation, 7 sleeping rooms with visible notification. 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. 13. A 'Knox' Security Key Box shall be required for the building at locations determined by the City Deputy Fire Marshal. 14. 2A 10BC fire extinguisher(s) are required for office areas every 3,000 square feet and 75 feet of travel distance. 15. At least one elevator installed in the building shall be sized to accommodate a normal hospital gurney. Minimum dimensions for the inside car platform shall meet the "Medical" size standards per the California Building Code. 16. If commercial cooking appliances are to be used and create any grease laden vapors, then the installation of a fire suppression system and commercial kitchen hood & duct shall be provided and approved by the Fire Department via a separate plan submittal. 17. Smoke alarms shall be installed to meet the current California Fire and Building Codes. 18. Carbon monoxide alarms shall be installed to meet the current California Fire and Building Codes. SECTION 7: The approval of CUP 20-004 and DR 20-005 shall expire February 21, 2025, 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 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. 17 of 32 February 21, 2023, Item #7 Resolution No. 23- Page 15 PASSED, ADOPTED AND APPROVED at a Regular Meeting of the City Council of the City of Poway, California on the 21st day of February 2023 by the following vote, to wit: AYES: NOES: ABSTAINED: ABSENT: DISQUALIFIED: Steve Vaus, Mayor ATTEST: Carrie Gallagher, CMC, City Clerk 18 of 32 February 21, 2023, Item #7 N 0 0 .... w N ~ -I > n ~ Poway Boutique Hotel m Z SERENDIPITY HOSPITALITY -I n Poway Boutique Hotel • Poway, California STUDIO f A R C H I T ( C T S February 21, 2023, Item #7 N N 0 .... w N w > 1i:: Cl w s: 0 I-C/) I I I I I I I I I I I I I I I I I I I I ,I 'o ,~ ,~ 0 I I I , WI I L ,' . . ;?; w -' ' ~:' ~I I ----------'----- ~! ffil /c=--=-1~ .~~ ... -, ~ D.. .,, I I,, i"--- - -~ - -_.i I :_c ________ f/ • I ',, 7 : ~ ?S'-,W\ , , ✓----------_ ----cc---r-4 r '-, I ' L I . 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MAINS AND FllE HYOkANTS AS DETIIUillNED AND AtPl!OVlD 1Y nu FIU D[P.U.TMENT.A NEW FIIU liYDRANT MAY IE IEQUIIED lAS[D ON lOCATION OF mu SUV\CE UNDflGIOUND AND FDC. 1 THE ,.,.,IIOVlD WAilll SU,,LY FOR. mu noncnoN, EITTIU TlMl'OM.ltY Olt PEU.4ANENT, SHA.LL IE MADE AVAILAllE AS SOON AS COMIUSTIILE MAID1"1. AllltMS ONSITl- 3 Pl.IOI. TO THE DELMIIY OF COMIUSTIILE IUILDING MATERIAL ON SIU, THE APPI.OVlD VEHICLE ACCESS, INCLUDING 0JJV£WAY5, FOlt flltHIGHTING SHAU ll INSTAWO, SATISFAc:TOltllY ,.us Ml ltEQ.UlllED TUT AND APPIIOVlD IYTHE CtlY. ALL ACCESSES SHAU. IE PIIOVID[D WITHIN 150-fEU OF AU CONnaucnoN AHAS. USE OF TtMPOUltY VEHICLE ACCEU FOIi FIAUIGHllNG SHALL UQ.Ullll '1..AN SUIMITTAl., UVIEW AND A,rllQVALIYTHECITY. 4 THE PllOJ[CT SHAU I[ ACClSSlllE TO FIJ.[ DU All TM ENT APPAU.T\JS IY WAY Of ACCUS 110>.DWAYS WITH AU...WEATMEII DIIIV1NG SUUAC"EOF NOT WS lMAN .10-fEETOf UNOISTI.UCTUIIEO WIDTH, wtlll ADEQ.UATt llDADWAYT\JIINING IUOIUS CAPAIU OF SU,.,OIITING TME IMPOSED LOADS Of FIIIE APPAIIAT\JS HAVING A MINIMUM Of u•,• OF vtllTICAJ.. CUAIIANCL THIS 20-fOOT ACCESS WIDTl-1 ll TME MINIMUM llEQ.UIIIED FOJ. FlllE DEIAUMENT EMUG(NCY ACCESS. IN MOST CASES, art ENGINUIIING STANOAIIDS Wlll IE MOIIE lltsnJCTING. TME MOIIE llEfP:ICTM STANDA.110 SHALL APPLY. lME flllE CHIEF, PUii.SU.ANT TO THE cm Of P<YWAY MUNIOP"1. CODE. SHAU ,.,.,ll<M:: lME 110>.0 SUUACETYPL 5 PU.MAN ENT ACCESS ROADWAYS FOi. FIRE APPAIIATUS SHAU IE DESIGNAUD AS ·FIIIE LANES• WITH APn.OPII.IAU SIGNS AND CUIII MAJ.KINGS. fi THE ANGLE OF DEPAll;T\Jlll AND lME ANGLE Of APPllOACH OF A flllE ACCUS 110>.0WAY SHAU NOT EXCUO SEVUI DEGIIEU (U..PEllCENl} OIi ASA,,IIOVUI l'YFIII.ECODEOFACIAL 7 AU.DEAO-EHD RIIEACCESS ROAOSGREATU. 1SO-fEET IN LENGTH SHAU IE PIIOVIDEO wmt APPllOV!:D n.OVISIONS THAT ALLOW EMUGEHCY A"AIIATUS TO TUllN AllOUND. I THE 1Ull01NG SHAU Dl5PLAYTHEAPn.OVlO NUMIEIIS ANO/OJ. AODRESSU IN A LOCATION '1..AINtY VIS11LE AND LEGIILE FROM THE muT 01. IIOAOWAY n.ONTING TH[ PJ.OP'Elll' FIIOM EITHEII DIIIECTION Of AP'P'II.OACH. SAID NUMIUlS SHALL CONTIIAST WITH THEIII IACltGIIOl.lND A.HDASll.E APPIIOVlD IYlME cm. 9 lMl IUllDING IS REQ.UIUD TO IE EQ.UIP'1D WITH AN APPllovtD flll( snlNIClU SYSTEM ACCORDING TO POWAY MUNICIPAL CODE ll(Q.UlllEMENTS. 11-ll FIIIE SP'IIJNICl.Ell SHALL IE DUIGNED TO MEET CAUFOkNIA FlllE CODE AND NFPA STANDAIIDS. AU. SYSTEMS AIIE ll!Q.Ulll(D TO IE MONITOllED IY A CENTUL MONrTOIIING COMPANY. IACICFLOW VALVE ASSEMIUU wmt TAMPEII. SWITCttU SHALL IE MONflOIIED. lME CflY DEPUTY FlllE l,lAllSHAL SHAU. APPIIO'VE LOCATION OF lMUE Fll;E P'IIOTECTION DEVICES PklOR TO INST"1.lAT10N, TWO SEPAIUTt Pl.AH SUIMITTALli TOlMERkE DEPAIITMENTWIU. IE UQUIIIED, ONE FOil FIRE SEI.VICE UNDERGROUND AND A SECOND fOllTl-llfllllSP'IIINIClUDESIGN. 10 FlltE S"'-INKLEll lllS(ltlS) SHAU IE tOCATtO INSIOl AN ENClOSED CLOSET WITH AN OOUIOR ACCESS DOOR. DOOi. SHAU IE LAIEUO WITH A SIGN INDICATING •f11tE SPJ.INICLEI\RISU•. 11 Al'n.O'VED SIGMM.E IS RIQUIIIED FOIi FIRE SUJNKLEII VAi.VU, FIIIE AL,UM IIOOM, FlllE DlPAIITMlNT CONNECTIONS AND IAOCFLOW COMB.Cl VALVES. 12 A PAOtO.LY UClHSlO CONTIIACTOII SHAU INSTALL AN AUTOMATIC flllf AI.AIIM SYSUM TO A,,11.0VED STANDAltDS ACCOllDING TO THE POWAY MUNIOtAL CODE. THE SYSTEM SHAU IE INUAllEO ACCOIIDING TO NFPA 72. THE FIil[ ALAllM SYSTEM SHAU INCLUDE EMEJ.GENC'I' votCE/ALUM COMMUNICATIONS, SMOKE DfflCTION, OCCUPANT NOTIFlCATION. ONE MANUAL Flltf A\.Al;M IOX 1ruu. STATION), DUCT DETlcnoN, ANNUNClATION, SEVEN SLHP'ING kOOMS wmt VUIIU NOTIFICATlON. lME SYSRM SHALL IE COMP'LETtlY MONITO"-ED SY A UL usno (:lNTIUJ. STATION AlAAM COMPANY Oil PllOPIIIITAIIYIIEMOTE STATION. A P'LAN SUBMITTAL TO THE FIil( DEP'AJ.TMENT IS IIEQ.UIIIED. 1:!I A'kN~'S[CUllfTYltEYIOXSHALLIE UQ.UlllED FOil nn IUILOING AT LOCATIONS DETUMINED IY TttE OTT FIIIE MAU HAL 14 A 2.A.IOIC FlllE EXTINGUISHEll[SJ All:E ltfQ.UIIIED FOIi OFFICE AltEAS EVlltY l,000 SQUAllE FE£T ANO 7S FEET Of TU.VU DISTANCL 15 AT LEAn ONE EI.IVATOll lNnAWD IN lME IUILDING SKAU IE SIZED TO ACCOMMODATE A NORMAL HOSPITAL GUIINEY. MINIMUM DIMENSIONS FOii lME INSIDE CAR P'LAlJOllM SHAU MEET •MEDICAL• Stu STANDAllDS PII. lME CAUFOllNIA IUILDING COOL 16 NO COMWUCIAL ICITCHEN INCLUDED AS PAIIT Of TlllS n.OJECT. 17 SMOKE ALAI.MS SHAU IE INSTAU.ED TO MEET lME CUHENT CALIFOllNIA FIIIE AND IUILDING CODES. 11 CAUON MONOXIDE AI.AJ.MS SHAU IE INSTAUED TO MlETTHE CUHEHT CAUFOllNIA flllE ANO IUtlOING CODES. General Notes 1 CONTIIACTOll TO MAk.E AN'f llEP'AIIIS TO LMO \.ANDSCAP'ING AND/Oil lllllGATION TO TME SATISFACTION Of THE CJTY"S LMD INSPECTOII. 2 ANY DAJ.lAGED RECYCLED WA.TU lltltlGATION TO IE IIEPAIUD WITH APUOV[D MATElllALS IN ACCO II DANCE WITH lME OllJGIN.Al A"IIOVlD PLAHS AND AGJ.UMENT WlTH lME CfTY Of 1'0WAY. ANY MA.JOit AMEND.l,UNTi TO EXISTING IIECYO.ED llllllGAllON sYSTEM TO IE MAIIICED IN ll[D. COP'IES OF PLANS TO IE SUIMITTEO TO POW AT DEVELOPMENT SEIIVICES A.HD TO THE COUNTY OF SAN DIEGO DEH. ANY OAWAGE TO SUlllOUNDING PlllVATf. llllltcATION (CnY OF P'aWAY, HAM'1"0N INN] IS TO IE ltU'AIIIED 'MTM AffllOVEO MATtlllALS, IN ACCO II DANCE WITH nu CITY OF ra-NAY SrTE USEJ. AGllU:MlNT A.HO TO lME SATISFACTION OF THE APPROPlllATE PAI.TT. J ANY DAMAGE CAUSED IY CONSTIIUCTlON TO AlllA STl;E[T UGHTING, TAAfflC saGNALS o• u.to All(A, 17-1 lllllGATION SYSTEMS Olt LANDSCA,tNG Wlllll flX!D IY APPLICANT. Legend 1 LUSTING l-iTOllY HOTEL 2 P'ROP'OSE05-STOkY IOUTIQ.UE HOTU J FlllEACCUS\.ANE STUDIO E A R C H I T [ C T S I 20 I "" ~ JANUAIIY 1023 N O II T H February 21, 2023, Item #7 DATE: TO: FROM: CONTACT: SUBJECT: Summary: AGENDA REPORT Ci t yof Po way February 21, 2023 Honorable Mayor and Members of the City Council Robert Manis, Director of Development Services Jeff Beers, Special Projects Engineer c:;e__ (858) 668-4624 or jbeers@poway.~ CITY COUNCIL Lake Poway Upper Playground Design Presentation and Appropriation of Additional Funds for Construction and Determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA) The Lake Poway Recreational Area is a regional park serving all segments of the community. The recreation amenities at the lake include fishing, hiking, and family play at the two playgrounds. This project will significantly renovate the upper playground. The City received a grant through the California State Department of Parks and Recreation, that will pay for a portion of the construction costs. Recommended Action: It is recommended the City Council: (1) Appropriate additional funds in the amount of $1,191,293 from the Park Improvement Fund (4110-30504112) for the construction of the Lake Poway Upper Playground Renovation Project (CIP #PK020), and unappropriate the original $342,505 from the Lake Poway Upper Playground Renovation Project (PK020) back to the General Fund Unassigned Fund Balance (F1000); and (2) Make a determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA). Discussion: The Lake Poway Recreational Area was established in 1974 with the construction of the lake and the water treatment facility. The establishment of the recreational area was to provide families in Poway with a regional open space park that offered a wide variety of uses. The recreational uses in the park were added over time to include fishing, hiking, softball facilities and playgrounds, among other activities. The upper playground was constructed in 1994 with modifications in 1996 and is located next to the pavilion and the large parking area leading to the lake as depicted in the site map (Attachment A). All 1 of 5 February 21, 2023, Item #8 the play equipment is either from the original construction or the modification in 1996. The play equipment is out of date and has outlived its useful life. Maintenance has become difficult as parts are no longer available. A Capital Improvement Project (CIP) was studied and submitted for construction in the Fiscal Year 2021-22 CIP Project list. The scope of that project was to replace the play equipment with a system that was equal to the existing structures and replace the existing poured-in-place play surfacing with a new tiled system that has been used at other playgrounds. To augment funding for the project, on December 7, 2021, staff was granted approval (Resolution 21- 095) by the City Council to apply for grant funds through the California State Department of Parks and Recreation. On January 18, 2022, the City was awarded grant funds in the total amount of $208,707 from the Per Capita Fund ($177,952) and the Urban County Fund ($30,755) to support the construction of the project. Conditions of the grants require construction be completed by December 31, 2023, and a deed restriction placed on the parcel, terminating on June 30, 2048. Initially, the $208,707 grant funded portion will need to be advanced by the City and then intermittently reimbursed by the State for eligible expenditures once incurred. The intent is to use the grant funds to increase the scope of the project and renovate the existing playground in a way that is more appropriate to a regional park. Typically, amenities of a regional park are larger in scope, provide more varied play opportunities, and are designed in a way that represents the place in the city where the playground is located. In this case, Lake Poway. Since the original CIP submission was completed, it has been determined that future playgrounds will incorporate shade structures that shade most of the play devices, protecting them from excessive heat, therefore extending the playability of the structure throughout the day. The scope of the project includes replacement of all the existing play structures with modern, non- customized equipment that represent the Lake Poway Recreational Area in theme and color. The new equipment will expand the capacity of the playground with larger and ADA accessible play structures. This requirement will make it easy for the Public Works Department to obtain replacement parts. The proposed project will also replace the existing poured-in-place and wood chip mulch surfacing with the padded tile system that has been used throughout the other playground renovation projects and construct a shade structure covering most of the play devices. The layout of the proposed park improvements is shown in Attachment B. If Council elects to move forward with this design, the project will be advertised for bid on February 22, 2023. The bidding and contracting phase typically last approximately three months to the start of construction. The construction is anticipated to start mid-summer and last until December 2023. Environmental Review: The proposed playground renovation of an existing facility is Categorically Exempt from the California Environmental Quality Act (CEQA) as a Class 1 Categorical Exemption, pursuant to Section 15301 (c) of the CEQA Guidelines, in that the project involves renovation of an existing facility with no expansion of use. Fiscal Impact: Approval of this item will result in an appropriation of $1,191,293 from Park Improvement Fund (4110- 30504112) as will require a short-term advance in the amount of $208,707 from the General Fund 2 of 5 February 21, 2023, Item #8 Unassigned Fund Balance (F1000) for the construction of the Lake Poway Upper Playground Renovation Project (CIP #PK020). The $208,707 will be reimbursed through the California State Department of Parks and Recreation grant. The original appropriated balance of $342,505 from Lake Poway Upper Playground Renovation Project (PK020) will be returned back to the General Fund Unassigned Fund Balance (F1000). There is approximately $3.0 million currently available in the Park Development Fund (4110) for park related improvements. Based on an analysis from Development Services, it is expected that an additional $100,000 to $250,000 in park impact fees will be received over the next couple of years. Public Notification: None. Attachments: A. Site Map B. Playground Site Plan Reviewed/Approved By: Assistant City Manager 3 of 5 Reviewed By: Alan Fenstermacher City Attorney Approved By: Ch~ City Manager February 21, 2023, Item #8 SITE MAP 4 of 5 ATTACHMENT A February 21, 2023, Item #8 NORTH PLAYGROUND SITE PLAN 5 of 5 ATTACHMENT B February 21, 2023, Item #8