AGENDA Poway City Counc il
Council Ch amber I 73325 Civic Center Driv e I Pow ay, CA I 92064 May 21, 2024 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. in the Council Chambers located at 13325 Civic Center Drive, Poway, CA 92064. The Council Chamber will be open to the public.
Public Meeting Access I Members of the public may attend the City Council meeting in person, or watch the City Council meeting live online. 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.
Speakers I 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. Per the Poway Municipal Code, the speaking time may be reduced.
To Watch Live:
www.poway.org/councilmeetings
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/list.aspx to receive email notifications when City Council agendas are published online. Items listed on the agenda with a"#" symbol are in preparation.
PLEASE NOTE: Written comments received via email before 3:00 p.m. the day prior to the meeting will be distributed as formal additional material as well as be made available online prior to the City Council meeting. Written comments received after this deadline will be forwarded to the Council, but not available online until after the City Council meeting.
American Disabilities Act Title II 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 .
Steve Vaus
Mayor
Caylin Frank
Deputy Mayor
Peter De Hoff
Councilmember
Anita Edmondson
Councilmember
Brian Pepin
Councilmember
Reminder I As a courtesy to all attendees , please silence all electronic devices and engage in conversations outside the Council Chambers .
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:
PUBLIC COMMENT : In accordance with State law, an item not scheduled on the agenda may be brought forwa rd by the genera l publ ic for comment; howeve r, the City Council will not be able to discuss or take action on any issue not included on the agenda. You may speak up to three (3) minu tes.
Per the Poway Municipa l Code, the speaking time may be reduced. Speakers have one opportun ity to add ress the Council under Public Comment.
CONSENT CALENDAR: The Consent Calendar may be enacted in one mot ion by the Council with a Ro ll Call Vote without discussion unless a Councilmember, a mem ber of the public, or City Manager requests that an item be removed for discussion .
1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda
2. Approval of the April 2, 2024, and April 16, 2024 Regular City Council Meeting Minutes
3. Second Reading and Adoption of Ordinance No. 868 entitled "An Ordinance of the City Council of the City of Poway, California, Amend ing Section 2.04.020 of the Poway Municipal Code to Increase Mayor and Council Compensation"
4. Approval of the Fourth Amendment to Joint Exercise of Powers Agreement for the Metro Wastewater Joint Powers Authority to Amend Section 3.02 and 3.05 of the Joint Powers Agreement
5. Second Extension of the Fiscal Year 2021-22 Street Overlay Project Contract for the Fiscal Year 2023-24 Street Overlay Project with Hazard Construction ENGR, LLC, Bid No. 22-011, Approval of Consultant Agreement for Construction Management Services with Reddy Engineering Services, Inc., RFP No. 24-019, and Determination the Project is Categorically Exempt from the California Environmental Quality Act
6. Award of Contract to DBX, Inc., for the Poway Road Safety Improvements Project, Bid No. 24-003, and Determ ination the Project is Categorically Exempt from the California Environmental Quality Act
7. Poway Housing Successor Annua l Report fo r Fiscal Year 2022-23 2 of 4 Regular City Council Meeting May 21, 2024
8. City's Investment Report as of March 31, 2024
9. Annual Investment Policy Review
10. Approval of Agreement between the City of Poway and Gary F. Hoyt Landscape Architecture, Inc. and lnterwest Consulting Group, Inc., for as-needed Landscape Plan Check and Inspection Services
11. Acceptance of Public Improvements for the Poway Commons Project, Street Improvement Plan 20-0002
ORDINANCES FOR INTRODUCTION: None
PUBLIC HEARINGS:
12. Amendments to Chapters 17.08, 17.30 and 17.52 of the Poway Municipal Code Regarding Minor Development Review Applications; Zoning Ordinance Amendment (ZOA 24-0002) City Manager 's Recommendation: It is recommended the City Council introduce the Ordinance for first reading by title only, waive further reading, and schedule the adoption of the Ordinance for the June 4, 2024 Regular City Council meeting .
13. Conditional Use Permit 24-0004 and Development Review 24-0001, a Request to Modify the Approved Conditional Use Permit 22-0006 and Development Review 22-0005 by Relocating the Outdoor Dining Area for Raising Cane's, located at 12665 Poway Road (APN 317-490-14-00) City Manager's Recommendation: It is recommended the City Council take public input, close the public hearing, and adopt the Resolution approving CUP 24-0004 and DR 24-0001 for the modification of CUP 22-0006 and DR 22-0005 and make the determination the project does not require additional California Environmental Quality Act (CEQA) review pursuant to CEQA Guidelines 15162.
STAFF REPORTS:
14. Underground Waiver (UW) 23-0002; a Request for a Waiver of the Requirement to Underground an Existing Overhead Pole and Utility Lines by Paying an In-Lieu Fee to be Established by Resolution of the City Council
City Manager's Recommendation: It is recommended the City Council adopt a resolution to establish the in-lieu fee amount to be paid by the applicant for the deferral of the undergrounding requirements.
15. Pre-Development Conference 24-0001, a Proposal for a Specific Plan Amendment to Allow a Car Wash as a Conditional Use in the Mixed Use Land Use Designation in the Poway Road Specific Plan, APN 317-540-64-00
City Manager's Recommendation: It is recommended the City Council provide input and direction regarding the request.
3 of 4 Regular City Council Meeting May 21, 2024
WORKSHOPS : None
COUNCIL-INITIATED ITEMS: None
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C. 53232(d)) CITY MANAGER ITEMS:
CITY ATTORNEY ITEMS: (Includ ing any pub lic report of any action ta ken in closed session) CLOSED SESSION: None
AD!OURNMENT:
State of California
County of San Diego
)
) ss.
)
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 May 14, 2024. Said meeting to be held at 7:00 p.m., May 21, 2024, 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, CityOer
4 of 4 Regular City Council Meeting May 21, 2024
AGENDA REPORT CityofPoway
DATE:
TO:
FROM:
CITY COUNCIL
SUBJECT:
May 21, 2024
Honorable Mayor and Members of the City Council
Carrie Gallagher, City Clerk �
(858) 668-4535 or [email protected]
Approval of the April 2, 2024, and April 16, 2024 Regular City Council Meeting Minutes
Summary
The City Council Meeting Minutes submitted hereto for approval are:
• April 2, 2024 Regular City Council Meeting Minutes
• April 16, 2024 Regular City Council Meeting Minutes
The Poway City Council sits as the Poway Planning Commission, the Poway Housing Authority, the Public Financing Authority, and the Successor Agency to the Poway Redevelopment Agency.
Recommended Action:
It is recommended the City Council approve the April 2, 2024 and April 16, 2024 Regular City Council Meeting Minutes.
Public Notification:
None.
Attachments:
A. April 2, 2024 Regular City Council Meeting Minutes
B. April 16, 2024 Regular City Council Meeting Minutes Reviewed/Approved By:
w�1J.�
Assistant City Manager
Reviewed By:
Alan Fenstermacher
City Attorney
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May 21, 2024, Item #2
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May 21, 2024, Item #2
ATTACHMENT A
CITY OF POWAY
CITY COUNCIL REGULAR MEETING
MINUTES
April 2, 2024
City Council Chambers
13325 Civic Center Drive, Poway, California
(Per Government Code 54953)
(Meeting Called to Order as City Council/City of Poway Planning Commission/Poway Housing Authority/Public Financing Authority and Successor Agency to the Poway Redevelopment Agency) CALL TO ORDER:
Mayor Vaus called the Regular Meeting to order at 7:00 p.m.
ROLL CALL:
Present: Brian Pepin, Peter De Hoff, Anita Edmondson, Caylin Frank, Steve Vaus STAFF MEMBERS PRESENT:
City Manager Chris Hazeltine; Assistant City Manager Wendy Kaserman; City Attorney Alan Fenstermacher; City Clerk Carrie Gallagher; Director of Development Services Bob Manis; Interim Director of Finance Brad Rosen; Director of Human Resources and Risk Management Jodene Dunphy; Director of Public Works Eric Heidemann; Fire Chief Jeff Chumbley; Commander Nancy Blanco, Sheriff's Department.
(Note: Hereinafter the titles Mayor, Deputy Mayor, Council member, City Manager, Assistant City Manager, City Attorney, City Clerk and Director of Finance shall be used to indicate Mayor/Chair, Deputy MayorNice Chair, Councilmember/Director, City Manager/Executive Director, Assistant City Manager/Assistant Executive Director, City Attorney/Counsel, City Clerk/Secretary and Director of Finance/Finance Officer.)
PLEDGE OF ALLEGIANCE:
Deputy Mayor Frank led the Pledge of Allegiance.
MOMENT OF SILENCE:
Mayor Vaus led a moment of silence.
PRESENTATIONS:
None.
PUBLIC COMMENT:
Peter Neild encouraged Council to consider the varying perspectives of Poway residents. 3 of 13
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Eric Weller spoke regarding safety concerns at The Farm in Poway.
Arthur Blain spoke regarding City Council term limits.
CONSENT CALENDAR:
Motioned by Mayor Vaus, seconded by Councilmember De Hoff to approve Consent Calendar Items 1 through 7. Motion carried 510 by the following roll-call vote:
Ayes:
Noes:
Abstained:
Absent:
Disqualified:
Pepin, De Hoff, Edmondson, Frank, Vaus
None
None
None
None
1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda
2. Approval of the January 16, 2024 Regular City Council Meeting Minutes
3. Second Reading and Adoption of Ordinance No. 865 entitled "An Ordinance of the City Council of the City of Poway, California, Amending Chapters 2.21, 13.12, 16.10, 17.40, 17.46,
17.47, 17.48 and 17.50 of the Poway Municipal Code to Eliminate the Rehearing Procedure and Amending Chapter 17.02 to Require Cost Recovery for Public Noticing of Private Development Projects"
Eric Weller spoke in opposition to Item #3 and requested Council consider pulling the item for further discussion at a later date.
The following submitted comment cards in opposition to item #3:
Neil Schneider
Deborah Schneider
4. Authorization to Purchase Technology Hardware Utilizing NASPO ValuePoint Purchasing Program Contract #7-15-70-34-002 from Nth Generation Computing, Inc
5. Authorization to Purchase One (1) Cab and Chassis Utilizing Sourcewell Cooperative Purchasing Program Contract #091521-NAF, One (1) Portable Screening Plant Utilizing Omnia Cooperative Purchasing Program Contract #159469 and Appropriation of Funds
6. Approval of Consultant Agreement with Frontier Energy, Inc., for the Zero Emission Vehicle Transition Assessment; RFP No. 24-012
7. Approval of Consultant Agreement with Matrix Consulting Group, LTD to Prepare a Cost Allocation Plan and Citywide User Fee Study
ORDINANCES FOR INTRODUCTION:
None.
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PUBLIC HEARINGS:
8. General Plan Amendment (GPA) 24-0001, Amendment to GPA 21-001 and 21-002; a Request to Adopt the City of Poway 2020-2029 Housing Element Mayor Vaus opened the Public Hearing at 7: 12 p.m.
Director of Development Services Robert Manis presented the item. He stated the Housing Element is a required element of the Poway General Plan. He added, state law requires local governments to update their Housing Elements every eight years which require certification by the Department of Housing and Community Development (HCD), following determine of compliance with state law.
Mr. Manis explained a Housing Element as addressing housing laws and identifying how a jurisdiction will provide opportunities for housing development including programs and goals for the jurisdiction and ways to achieve their Regional Housing Needs Assessment (RHNA) allocation. He noted the update for the current Housing Element cycle began in 2020, with an online survey, two community meetings, and one City Council workshop.
On August 3, 2021, the Council adopted the 2020-2029 Housing Element. Following an early submittal to HCD, the City received a letter dated July 9, 2021 with requested revisions. City staff worked with HCD staff to address the issues raised and negotiated language for the document appropriate for Poway. In addition to many phone calls and the submission of informal letters, on October 30, 2022 and again on January 22, 2024, the City submitted formal letters to HCD.
On March 13, 2024, the City received a letter from HCD confirming the Poway Housing Element met the statutory requirements of Housing Element law and will be in full compliance with state law after adoption and submittal to HCD for final approval. Mr. Manis noted approval of the item is covered by the negative declaration, which was adopted by Council at the August 3, 2021 City Council meeting, with no further CEQA review requirement.
Public Comment:
Joe St. Lucas spoke neutrally on Item #8 and suggested raising inclusionary in lieu fees as a means to induce development of more low-income housing.
Yuri Bohlen spoke in opposition to Item #8 and state-imposed housing quotas.
The following submitted comment cards in opposition to Item #8:
Zack Vans/ager
Leslie Vans/ager
End of Public Comment.
Mayor Vaus closed the Public Hearing at 7:20 p.m.
Council discussion ensued. Council thanked City staff for their work with HCD and for presenting a compliant Housing Element. Changes in state law that impact local control were discussed including laws related to low-income housing and density law bonuses, and 5 of 13
May 21, 2024, Item #2
City of Poway -Minutes -April 2, 2024
creating affordable housing was also discussed. Council noted concerns over the lack of state funding available for affordable housing development projects.
Motioned by Mayor Vaus, seconded by Deputy Mayor Frank to adopt Resolution No. 24-010 entitled "An Resolution of the City Council of the City of Poway, California, Approving General Plan Amendment (GPA) 24-0001 (Amendment to GPA 21-001 and GPA 21-002) for the Adoption of City of Poway 2020-2029 Housing Element." Motion carried unanimously.
9. Specific Plan (SP) 22-0001, Environmental assessment (EA) 23-0001, General Plan Amendment (GPA) 22-0001, Zone Change (ZC) 22-0001, Zoning Ordinance Amendment (ZOA) 24-0001, Tentative Tract Map (TTM) 22-0001 and Development Review (DR) 23- 0003; a request to adopt a specific plan, subdivide 11.5 acres of land and construct 63 new single-family residences, preserve one locally designated historic home and certify the associated Environmental Impact Report (EIR)
Mayor Vaus opened the Public Hearing at 7:32 p.m.
Senior Planner Hector Salgado presented the item along with a PowerPoint presentation. Mr.
Salgado identified the project site location within the Residential Single Families (RS-7) zone and the surrounding land uses within the Poway Road Specific Plan (PRSP). He described the project site, which includes four existing single-family residences. One of the residences is a locally designated historic building known as the Harmon House and will be retained in place.
Mr. Salgado explained the proposed zoning is consistent with the General Plan (GP) land use and zoning designation of Planned Community (PC) and provided general information on Specific Plan Amendments (SPAs). The Harmon Ranch Specific Plan (HRSP) includes 63 new single family detached homes plus one existing historic home on site for a total of 64 lots within the project boundary and a public right-of-way on Oak Knoll Road.
As part of the HRSP, modifications from the RS-7 zone are proposed for density, setbacks, minimum lot size, maximum allowable lot coverage and number of floor plans for a subdivision. The proposed density provides an appropriate transition between the neighboring apartments and lower density single family residences.
Mr. Salgado provided a site plan of the project illustrating a passive open space area and eight-foot-wide segment of community trail, discussed proposed landscaping, parking and garage requirements and with the use of elevation drawings, he noted variable floor plans configurations, sizes, and color schemes.
Mr. Salgado noted a November 7, 2023 neighborhood meeting held at the Mickey Cafagna Community Center to discuss the Harmon Ranch project with approximately 40 people in attendance. Topics covered were density, consistency with the GP, access and traffic.
Additionally, the applicant held meetings with the residents from Roca Grande to discuss their concerns and spoke individually with residents adjacent to the project.
Speaking on behalf of the applicant, Senior Vice President Alex Plishner of Lennar discussed the initial stages of the project and neighborhood outreach efforts. Mr. Plishner noted pre development meetings between Lennar and the City. Based on resident and Council input, 6 of 13
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Lennar addressed privacy concerns, vehicular and pedestrian access to adjoining neighborhoods, drainage, density, configuration and building style.
Public Comment:
The following spoke in support of Item #9:
Alyssa Roscoe
Don Urena
David Farmer
Adrienne Wilson
Jennifer Urena
Phil Rath
Kevan Koskie
Blake Darling
The following submitted a comment card in support of Item #9:
Arlene Tendick
The following spoke in opposition to Item #9:
Ellen Pi/seeker
Ron Chapman
Ann Tipps
Jana Johnson
Joe St. Lucas
Lisa Higbee
Eric Weller
Tim Palmer
Dirk Funk
Barbara Diederichs
The following submitted comment cards in opposition to Item #9:
Deborah Schneider
Kathleen Wright
Neil Schneider
Anna
Esta Browning
Juliet Vasel-Phillips
Torrey Powers
Carl Browning
Amy Bettinger
Matt Egan
Eric Labonte
Zack Vans/ager
JanetLettang
Karen Podvin
Gary Ja/aty
Nancy Jalaty
Bonita Palmer
Brian Palmer
Leslie Vans/ager
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May 21, 2024, Item #2
City
of
Poway
-
Minutes
-
April
2,
2024
End
of
Public
Comment.
Mayor
Vaus
closed
the
Public
Hearing
at
8:35
p.m.
Council
discussion
ensued.
Mayor
Vaus
addressed
misconceptions
about
the
use
of
Specific
Plan
Amendments
(SPAs),
noting
the
California
Department
of
Housing
and
Community
Development
(HCD)
strongly
encourages
the
use
of
SPAs
to
meet
housing
needs
. Council
responded
positively
to
the
applicant's
project
amendments,
including
removing
one
residential
unit,
widening
driveways,
increasing
setbacks,
adequate
parking,
and
dialoguing
with
neighbors.
Council
clarified
density
bonuses
and
total
units
allowable,
and
the
proposed
trail
connection
on
Oak
Knoll
Road.
Council
shared
concerns
over
privacy,
traffic
and
density
.
Council
discussed
the
implication
of
rejecting
the
SPA,
noting
new
developers
would
have
the
ability
to
add
more
units
than
the
current
proposal
using
affordable
housing
and
density bonus
laws. Responding
to
Council
questions,
City
staff
noted
the
use
of
Specific
Plan
Amendments
is
not
uncommon
and
has
been
used
for
other
City
project
developments
.
Motioned
by
Mayor
Vaus,
seconded
by
Councilmember
Pepin
to
1)
adopt
Resolution
No.
24-011
entitled
"A
Resolution
of
the
City
Council
of
the
City
of
Poway,
California,
Certifying
an
Environmental
Impact
Report
(EA)
23-0001
and
Adopting
Findings
Pursuant
to
the
California
Environmental
Quality
Act
for
the
Harmon
Ranch
Specific
Plan
(SP)
22-0001
Including
the
Subdivision
of
11.5 Acres
of
Land
and
the
Construction
of
63 Homes
and
the
Preservation
of
a
Locally
Designated
Historic
Home;
Assessor's
Parcel
Numbers;
317-500-14-00,
317-500-13-00,
317-500-12-00, 317-500-11-00,
317-500-
09-00,
317-500-10-00,
317-500-03-00,
317-500-02-00,
317-501-02-00
AND
317-501-01-00:"
2)
adopt
Resolution
No.
24-012
entitled
"A
Resolution
of
the
City
Council
of
the
City
of
Poway,
California,
Amending
the
City's
General
Plan
for
the
Harmon
Ranch
Specific
Plan
(SP)
22-0001
(General
Plan
Amendment
(GPA)
22-0001);
Assessor's
Parcel
Numbers;
317-500-14-00,
317-500-13-00,
317-500-12-00,
317-500-11-00,
317-500-09-00,
317-500-10-00,
317-500-03-00, 317-500-02-00,
317-501-02-00
and
317-501-01-00;"
and
3)
adopt
Resolution
No.
24-013
entitled
"A
Resolution
of
the
City
Council
of
the
City
of
Poway,
California,
Approving
Tentative
Tract
Map
(TTM)
22-0001
and
Development
Review
(DR)
22-0003
for
the
Harmon
Ranch
Specific
Plan
SP
22-0001;
Assessor's
Parcel
Numbers;
317-500-14-00,
317-500-13-00, 317-500-12-00, 317-500-11-00,
317-500-
09-00,
317-500-10-00,
317-500-03-00,
317-500-02-00,
317-501-02-00
and
317-501-01-00."
Motion
carried
4/1
(No:
Frank).
As
requested
by
the
Mayor,
City
Clerk
Gallagher
titled
the
Ordinances
.
Motioned
by
Mayor
Vaus,
seconded
by
Councilmember
Pepin
to
introduce
Ordinance
No.
866,
entitled
"An
Ordinance
of
the
City
Council
of
the
City
of
Poway,
California,
Approving
the
Harmon
Ranch
Specific
Plan
(SP)
22-0001;
Assessor's
Parcel
Numbers
317-500-14-00,
317-500-13-00, 317-500-12-00, 317-500-11-00, 317-500-09-00, 317-500-10-
00,
317-500-03-00,
317-500-02-00,
317-501-02-00
and
317-501-01-00."
Motion
carried
4/1
by
the
following
roll-call
vote:
Ayes: Noes: Abstained: Absent: Disqualified:
De
Hoff,
Edmondson,
Pepin,
Vaus
Frank None None None
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May 21, 2024, Item #2
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Motioned by Mayor Vaus, seconded by Councilmember Pepin to introduce Ordinance No. 867 entitled "An Ordinance of the City Council of the City of Poway, California, Amending the City's Zoning and General Plan Land Use Map, Changing the Zoning and General Plan Land Use Designations from Residential Single Family 7 (RS-7) to the Harmon Ranch Planned Community (PC-10) with Related Amendments to the Poway Municipal Code for the Harmon Ranch Specific Plan (SP) 22-0001 (Zone Change 22- 0001, Zoning Ordinance Amendment 24-0001); Assessor's Parcel Numbers 317-500-14- 00, 317-500-13-00, 317-500-12-00, 317-500-11-00, 317-500-09-00, 317-500-10-00, 317-500- 03-00, 317-500-02-00, 317-501-02-00 and 317-501-01-00." Motion carried 4/1 by the following roll-call vote:
Ayes:
Noes:
Abstained:
Absent:
Disqualified:
STAFF REPORTS:
None.
WORKSHOPS:
None.
De Hoff, Edmondson, Pepin, Vaus
Frank
None
None
None
COUNCIL-INITIATED ITEMS:
None.
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 -(G.C. 53232(d))
Mayor Vaus provided an update on the San Diego Board Association of Governments (SAN DAG), discussing pending investigations related to tolling procedures.
CITY MANAGER ITEMS:
None.
CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) None.
CLOSED SESSION:
None.
ADJOURNMENT:
The meeting was adjourned at 9:14 p.m.
9 of 13
May 21, 2024, Item #2
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Carrie Gallagher, CMC
City Clerk
City of Poway, California
10 of 13
May 21, 2024, Item #2
ATTACHMENT B
CITY OF POWAY
CITY COUNCIL REGULAR MEETING
MINUTES
April 16, 2024
City Council Chambers
13325 Civic Center Drive, Poway, California
In accordance with Section 54953(b) of the California Government Code, the following location was noticed as a teleconference location 20 Massachusetts Avenue NW, Washington, DC 20001.
(Per Government Code 54953)
(Meeting Called to Order as City Council/City of Poway Planning Commission/Poway Housing Authority/Public Financing Authority and Successor Agency to the Poway Redevelopment Agency) CALL TO ORDER:
Deputy Mayor Frank called the Regular Meeting to order at 7:00 p.m.
ROLL CALL:
Present: Peter De Hoff, Anita Edmondson, Caylin Frank, Steve Vaus (via teleconference)
Absent: Brian Pepin
STAFF MEMBERS PRESENT:
City Manager Chris Hazeltine; Assistant City Manager Wendy Kaserman; City Attorney Alan Fenstermacher; City Clerk Carrie Gallagher; Interim Director of Finance Brad Rosen; Director of Human Resources and Risk Management Jodene Dunphy; Director of Public Works Eric Heidemann; Director of Community Services Audrey Denham; Fire Chief Jeff Chumbley; Captain Claudia Delgado, Sheriff's Department.
(Note: Hereinafter the titles Mayor, Deputy Mayor, Councilmember, City Manager, Assistant City Manager, City Attorney, City Clerk and Director of Finance shall be used to indicate Mayor/Chair, Deputy MayorNice Chair, Councilmember/Director, City Manager/Executive Director, Assistant City Manager/Assistant Executive Director, City Attorney/Counsel, City Clerk/Secretary and Director of Finance/Finance Officer.)
PLEDGE OF ALLEGIANCE:
Councilmember Edmondson led the Pledge of Allegiance.
MOMENT OF SILENCE:
Deputy Mayor Frank led a moment of silence.
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City of Poway -Minutes -April 16, 2024
PRESENTATIONS:
None.
Deputy Mayor Frank introduced the new captain at the Poway Sheriff's Station, Captain Claudia Delgado.
PUBLIC-COMMENT:
Representing Poway Girl Scout Troop 2169, the following spoke in support of PUSD's Youth in Transition (YIT) program.
Caryn Darling
Lennon Lewis
Lauren Dillon
Hailey Kingsbury
Quinn Hatch
Anisiya Nixon
Amelia Palka
lnara An
Hailey Jackson, representing Girl Scout Troop 2169, submitted a comment card in support of the Youth in Transition (YIT) program.
Janet Lettang spoke regarding the 2024 Budget Review Committee meeting schedule.
Eric Weller spoke regarding public access to documents and city records relating to the Life Time Fitness proposal.
CONSENT CALENDAR:
Motioned by Mayor Vaus, seconded by Councilmember De Hoff to approve Consent Calendar Items 1 through 6. Motion carried 4/0/1 by the following roll-call vote:
Ayes: De Hoff, Edmondson, Frank, Vaus
Noes: None
Abstained: None
Absent: Pepin
Disqualified: None
Motioned by Mayor Vaus, seconded by Councilmember De Hoff to approve Consent Calendar Items 7 through 8. Motion carried 3/1/1 by the following roll-call vote:
Ayes: De Hoff, Edmondson, Vaus
Noes: Frank
Abstained: None
Absent: Pepin
Disqualified: None
12 of 13
May 21, 2024, Item #2
City of Poway -Minutes -April 16, 2024
1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda
2. Approval of the February 6, 2024 Regular City Council Meeting Minutes
3. Resolution Approving a 4.9% Increase in the Regional Transportation Congestion Improvement Program Traffic Mitigation Fee for Fiscal Year (FY) 2024-25, as required by the TransNet Ordinance
4. Acceptance of the FY2022-23 ADA Barrier Removal -Community Park Project with Fordyce Construction, as Complete
5. Acceptance of the Caustic Soda Tank Replacement with Eastridge Engineering and Construction, as Complete
6. Approval of Fifth Amendment to the Employment Agreement for the City Manager
7. Second Reading and Adoption of Ordinance No. 866 entitled "Approving the Harmon Ranch Specific Plan (SP) 22-0001; Assessor's Parcel Numbers 317-500-14-00, 317-500-13-00, 317- 500-12-00, 317-500-11-00, 317-500-09-00, 317-500-10-00, 317-500-03-00, 317-500-02-00, 317-501-02-00 and 317-501-01-00"
Nick Carruthers, on behalf of Poway Voices, spoke in opposition to Item #7 and requested Council consider pulling the item to continue discussions on the proposed Ordinance.
The following submitted comment cards in opposition to Item #7:
Juliet Phillips
Torrey Powers
8. Second Reading and Adoption of Ordinance No. 867 entitled "An Ordinance of the City Council of the City of Poway, California, Amending the City's Zoning and General Plan Land Use Map, Changing the Zoning and General Plan Land Use Designations from Residential Single Family 7 (RS-7) to the Harmon Ranch Planning Community (PC-10) with Related Amendments to the Poway Municipal Code for the Harmon Ranch Specific Plan (SP) 22-0001 (Zone Change 22-0001, Zoning Ordinance Amendment 24-001 ); Assessor's Parcel Numbers 317-500-14-00, 317-500-13-00, 317-500-12-00, 317-500-11-00, 317-500-09-00, 317-500-10- 00, 317-500-03-00, 317-500-02-00, 317-501-02-00 and 317-501-01-00" Eric Weller spoke in opposition to Item #8 and requested the item be pulled for further consideration.
The following comment cards were submitted in opposition to Item #8:
Juliet Phillips
Torrey Powers
ORDINANCES FOR INTRODUCTION:
None.
13 of 13
May 21, 2024, Item #2
City of Poway -Minutes -April 16, 2024
PUBLIC HEARINGS:
None.
STAFF REPORTS:
None.
WORKSHOPS:
None.
COUNCIL-INITIATED ITEMS:
None.
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 -(G.C. 53232(d))
None.
CITY MANAGER ITEMS:
None.
CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) None.
CLOSED SESSION:
None.
ADJOURNMENT:
The meeting was adjourned at 7:19 p.m.
Carrie Gallagher, CMC
City Clerk
City of Poway, California
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA RE PQ RT City of Poway
May 21, 2024
Honorable Mayor and Members of the City Council
Carrie Gallagher, City Clerk ~
Carrie Gallagher, City Clerk
(858) 668-4435 or [email protected]
CITY COUNCIL
Second Reading and Adoption of Ordinance No. 868 entitled "An Ordinance of the City Council of the City of Poway, California, Amending Section 2.04.020 of the Poway Municipal Code to Increase Mayor and Council Compensation" The introduction and first reading of the above-entitled Ordinance was approved at a Regular City Council Meeting on May 7, 2024. There were no speakers.
The Ordinance is now presented for second reading and adoption by title only.
Vote at first reading:
Recommended Action:
AYES:
NOES:
DE HOFF, EDMONDSON, FRANK, VAUS
PEPIN
ABSTAINED: NONE
ABSENT: NONE
DISQUALIFIED: NONE
It is recommended the City Council adopt Ordinance No. 868.
Environmental Review:
None.
Fiscal Impact:
None.
1 of4 May 21, 2024, Item #3
Public Notification:
An ordinance summary notice was published in the Poway News Chieftain on Thursday, May 16, 2024.
A certified copy of th is Ordinance will also be posted in the Office of the City Clerk in accordance with Government Code section 36933.
Attachments:
A. Ordinance No. 868
Reviewed/ Approved By:
Assistant City Manager
2 of4
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Ce ~
City Manager
May 21, 2024, Item #3
ORDINANCE NO. 868
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, AMENDING SECTION 2.04.020 OF THE
POWAY MUNICIPAL CODE TO INCREASE MAYOR AND
COUNCIL COMPENSATION
WHEREAS, Section 2.04.020 of the Poway Municipal Code sets forth the salary for the Mayor and each member of the City Council;
WHEREAS, California Government Code section 36516 allows Councilmember compensation to be increased by no more than five percent (5%) for each calendar year since the last increase became operative;
WHEREAS, the City Council last increased its salary by ordinance in 2022; WHEREAS, thus, State law permits a maximum pay increase of ten percent (10%); and WHEREAS, the pay increase being adopted at this time equals 10%, with the Mayor retaining a 40% differential from the salaries of the remainder of the Council, pursuant to City policy.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS:
SECTION 1: The above recitals are true and correct, and incorporated herein by this reference.
SECTION 2: Section 2.04.020(A)(1) of the Poway Municipal Code is hereby added to read as follows, with deletions shown in strikethrough and additions shown in underline:
2.04.020 Compensation.
A. The Mayor and each member of the City Council shall receive compensation as follows:
1. Effective January 1, 202~.§.. the Mayor shall receive as salary the sum of $2,306.912,537.91 per month as authorized by Sections 36516 and 36516.1 of the Government Code, and all other members of the City Council shall receive the sum of $1,647.791,812.57 per month as authorized by Section 36516 of the Government Code, payable at the same time and in the same manner as salaries that are paid to other officers and employees of the City.
SECTION 3: This Ordinance shall be codified.
EFFECTIVE DATE: This Ordinance shall take effect and be in force thirty (30) days after its adoption.
CERTIFICATION/PUBLICATION: The City Clerk shall certify the adoption of this Ordinance and cause it or a summary of it, to be published with the names of the City Council members voting for and against the same in the Poway News Chieftain, a newspaper of general 3 of4 ATTACHMENT A May 21, 2024, Item #3
Ordinance No. 868
circulation in the City of Poway within fifteen (15) days after its adoption and shall post a certified copy of this Ordinance in the Office of the City Clerk in accordance with Government Code section 36933.
INTRODUCED AND FIRST READ at a Regular Meeting of the City Council of the City of Poway, California, held the 7th day of May, 2024, and thereafter PASSED AND ADOPTED at a Regular Meeting of said City Council held the 21st day of May, 2024, by the following vote, to wit:
AYES:
NOES:
ABSTAINED :
ABSENT:
DISQUALIFIED:
Steve Vaus, Mayor
ATTEST:
Carrie Gallagher, CMC, City Clerk
4of4 May 21, 2024, Item #3
May 21, 2024, Item #4
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AG EN DA REPORT City of Poway
May 21, 2024
Honorable Mayor and Members of the City Cou~I
Eric Heidemann, Director of Public Works jJAo/
Alisa Nichols, Utilities Administrator .71r
(858) 668-4703 or [email protected]
CITY COUNCIL
Approval of the Fourth Amendment to Joint Exercise of Powers Agreement for the Metro Wastewater Joint Powers Authority to Amend Section 3.02 and 3.05 of the Joint Powers Agreement
The proposed Fourth Amendment to Joint Exercise of Powers Agreement for the Metro Wastewater Joint Powers Authority to Amend Section 3.02 and 3.05 of the Joint Powers Agreement (Fourth JPA Amendment) makes two amendments to the joint powers agreement to revise language that reflects recent Metro Wastewater Joint Powers Authority (Metro JPA) organizational updates approved by the Metro JPA. The Metro JPA has requested the proposed Fourth JPA Amendment be taken to each Participating Agencies' (PAs) elected body for consideration and approval by June 30, 2024.
Recommended Action:
It is recommended the City Council approve the Fourth Amendment to Joint Exercise of Powers Agreement for the Metro Wastewater Joint Powers Authority and authorize the City Manager to execute the agreement and any related documents.
Discussion:
The Metropolitan Wastewater Commission was formed in 1998 pursuant to the terms of the Regional Wastewater Disposal Agreement (Metro Agreement) between the City of San Diego and twelve PAs.
The City of Poway is a party to the Metro Agreement for wastewater conveyance, treatment and disposal in the City of San Diego's Metropolitan Sewerage System (Metro System). In 2001, the Metro JPA was formed to provide the PAs with the authority and responsibility to take actions and make decisions pertaining to the Metro Agreement and provide for financing of public capital improvements for the Metro System, for which they collectively pay approximately 35 percent of the operation and capital costs. Poway is a signatory to the Joint Exercise of Powers Agreement for the Metro JPA. 1 of 8
May 21, 2024, Item #4
The Metro JPA chair, vice chair, secretary and treasurer are appointed by the Metro JPA Board of Directors pursuant to the Joint Exercise of Powers Agreement. In February 2024, after a recent organizational assessment, the Metro JPA voted to approve organizational changes to allow more flexibility in selecting and appointing the treasurer, auditor and legal advisor. The Fourth JPA Amendment updates two items that accompany the Metro JPA's recent organizational assessment as follows:
1) It amends section 3.02, Treasurer and Auditor, by expanding the definition to allow the Metro JPA Board to appoint anyone authorized by the Joint Powers Law to be treasurer/auditor, whereas currently the language only allows the finance manager or director of one of the PAs to be designated as the auditor/treasurer (the final appointment, however, remains with the Metro JPA Board of Directors); and
2) It amends section 3.05 by striking the provision that requires the Metro JPA's legal advisor to also be counsel to one of the PAs. This strikeout is proposed to avoid potential or perceived conflicts of interest, although it does not preclude the Metro JPA's legal advisor from also being legal counsel to one of the PAs.
Neither amendment changes the current appointments for treasurer/auditor or legal advisor.
Environmental Review:
This action is not subject to review under the California Environmental Act (CEQA).
Fiscal Impact:
There is no fiscal impact as a result of this action.
Public Notification:
None.
Attachments:
A. Cover letter from Procopio dated February 28, 2024
B. Fourth Amendment to Joint Exercise of Powers Agreement for the Metro Wastewater Joint Powers Authority to Amend Sections 3.02 and 3.05 of the Joint Powers Agreement Reviewed/Approved By:
Assistant City Manager
2 of 8
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
City Manager
May 21, 2024, Item #4
~Procopio~
-
MEMORANDUM
TO:
FROM:
DATE:
Metro Wastewater JPA Board of Directors
Metro Wastewater Technical Advisory Committee
Participating Agency City Clerks and Board
Secretaries
Adriana R. Ochoa
February 28, 2024
PROCOPIO
525 BStreet
Suite 2200
San Diego, CA 92101
T. 619.238.1900
F. 619.235.0398
DEL MAR HEIGHTS
LAS VEGAS
ORANGE COUNlY
PHOENIX
SAN DIEGO
SILICON VALLEY
WASHINGTON, DC
RE: Fourth Amendment to Metro Wastewater JPA's Joint Powers Agreement Enclosed with this cover memo is the proposed Fourth Amendment to the Joint Exercise of Powers Agreement for the Metro Wastewater Joint Powers Authority to Amend Section 3.05 of the Joint Powers Agreement for each Participating Agency's review and approval.
This proposed Fourth Amendment makes two amendments to the joint powers agreement to reflect updates in officers for the Metro Wastewater Joint Powers Authority (the "Metro JPA"): (1) It amends section 3.02, Treasurer and Auditor, by expanding the definition to allow the Metro JPA Board to appoint anyone authorized by the Joint Powers Law to be treasurer/auditor, whereas currently the language of the JPA only allows the finance manager or director of one of the Participating Agencies to be designated as the auditor/treasurer (the final appointment, however, remains with the Metro JPA Board of Directors); and (2) It amends section 3.05 by striking the provision that requires the Metro JPA's legal advisor to also be counsel to one of the Participating Agencies. This strikeout is proposed to avoid potential or perceived conflicts of interest, although it does not preclude the Metro JPA's legal advisor from also being legal counsel to one of the Participating Agencies. Neither amendment changes either of the current appointments for treasurer/auditor or legal advisor. These are merely clean-up items that accompany the Metro JPA's recent organizational assessment.
Comparisons between the old and proposed new language are below for your information and convenience. The strikeout shows the old language in comparison to the new language.
3.02 Treasurer and Auditor. Pursuant to Section 6505.6 of the Gm'ernment Gode, the finance manager or director of one of the Participating Agencies shall be designated as the Auditor and Treasurer of the JP/\. The Auditor and Treasurer shall be the depository, shall have custody of all of the accounts, funds, and money of the JPA from whatever source, shall have the duties and procopio.com
3 of 8 ATTACHMENT A
May 21, 2024, Item #4
~Procopio
-
obligations set forth in Section 6505 and 6505.5 of the Government Code and shall assure that there shall be strict accountability of all funds and reporting of all receipts and disbursements of the WA-
3.02 Treasurer and Auditor. The Treasurer and Auditor may be any person(s) duly appointed by the Board and permitted to serve as the JPA Treasurer and/or Auditor pursuant to Government Code Sections 6505.5 and/or 6505.6. The Treasurer shall be the depository, shall have custody of all of the accounts, funds, and money of the JPA from whatever source, and shall have the duties and obligations set forth in Government Code sections 6505, 6505.5 and/or 6505.6 as applicable, and shall assure that there shall be strict accountability of all funds and reporting of all receipts and disbursements of the JPA. The officer performing the duties of Auditor shall have the duties and obligations set forth in Government Code section 6505, 6505.5 and/or 6505.6, as applicable.
3.05 Legal Advisor. The Board shall have the power to appoint the legal advisor of the JPA who shall perform such duties as may be prescribed by the Board. Such legal advisor shall be legal counsel to one of the Participating /\gencies.
REQUESTED ACTION: The Metro JPA respectfully requests the enclosed Fourth Amendment be added to each Participating Agencies' regular meeting agendas for consideration and approval, and returned to the Metro JPA Board Secretary, Lori Peoples, at [email protected], by no later than June 30, 2024. Any questions can be directed to Metro JPA's Executive Director, Karyn Keze, at [email protected] or Metro JPA's legal counsel, Adriana Ochoa, at [email protected]. procopio.com
4 of 8
May 21, 2024, Item #4
FOURTH AMENDMENT TO JOINT EXERCISE OF POWERS AGREEMENT
FOR THE METRO WASTEWATER JOINT POWERS AUTHORITY
TO AMEND SECTIONS 3.02 AND 3.05 OF THE JOINT POWERS AGREEMENT This Fourth Amendment to the Joint Exercise of Powers Agreement for the Metro Wastewater Joint Powers Authority is made effective as of the date of the last signature by a Participating Agency (defined below), in the County of San Diego, State of California by each of the Participating Agencies of the Metro Wastewater JPA, a Joint Powers Agency ("JP A") existing and organized pursuant to the provisions of Government Code section 6500 et seq.
RECITALS
WHEREAS, on October 25, 2000, the City of Coronado, a municipal corporation; the City of Del Mar, a municipal corporation; the City of El Cajon, a municipal corporation; the City of Imperial Beach, a municipal corporation; the City of La Mesa, a municipal corporation; the Lemon Grove Sanitation District, a political subdivision of the State of California, the City of Poway, a municipal corporation; Padre Dam Municipal Water District, a political subdivision of the State of California; and the County of San Diego ( on behalf of: the Winter Gardens Sewer Maintenance District, a maintenance district established pursuant to California Streets & Hwys. Code section 5820 et seq.; the Lakeside/Alpine Sanitation District, a political subdivision of the State of California; and the Spring Valley Sanitation District, a political subdivision of the State of California) (the "Participating Agencies") entered into a Joint Exercise of Powers Agreement ("Agreement"), creating the JPA for the purpose of taking responsibility, actions, and decisions pertaining to the Regional Waste Water Disposal Agreement; and WHEREAS, on February 12, 2003, the Otay Water District was added as a Participating Agency of the JP A; and
WHEREAS, on June 4, 2003, the City of National City was added as a Participating Agency of the JP A; and
WHEREAS, on October 17, 2007, the City of Chula Vista was added as a Participating Agency of the JP A; and
WHEREAS, Article VIII, Section 8.05 of the Agreement allows for amendments of the Agreement; and
WHEREAS, the Participating Agencies wish to make certain amendments to reflect updates in officers and employees of the organization.
AGREEMENT
5 of 8 ATTACHMENT B
May 21, 2024, Item #4
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
A. Pursuant to Article VIII, Section 8.05 of the Agreement, each of the Participating Agencies hereby amend the Joint Exercise of Powers Agreement for the Metro Wastewater JPA, as follows:
1. Article III, Section 3.02 is hereby revised in its entirety to read as follows:
3.02 Treasurer and Auditor. The Treasurer and Auditor may be any person(s) duly appointed by the Board and permitted to serve as the JPA Treasurer and/or Auditor pursuant to Government Code Sections 6505.5 and/or 6505.6. The Treasurer shall be the depository, shall have custody of all of the accounts, funds, and money of the JP A from whatever source, and shall have the duties and obligations set forth in Government Code sections 6505, 6505.5 and/or 6505.6 as applicable, and shall assure that there shall be strict accountability of all funds and reporting of all receipts and disbursements of the JP A. The officer performing the duties of Auditor shall have the duties and obligations set forth in Government Code section 6505, 6505.5 and/or 6505.6, as applicable.
2. Article III, Section 3.05 is hereby revised in its entirety to read as follows:
3.05 Legal Advisor. The Board shall have the power to appoint the legal advisor of the JP A who shall perform such duties as may be prescribed by the Board.
B.. All other terms and conditions of the Joint Exercise of Powers Agreement for the Metro Wastewater JP A shall remain in full force and effect and shall remain binding upon each of the Participating Agencies.
IN WITNESS WHEREOF, the parties have executed this Fourth Amendment as of the date first written above.
1. CITY OF CORONADO ATTEST
By:
2. CITY OF DEL MAR ATTEST
By:
3. CITY OF EL CAJON ATTEST
By:
6 of8
May 21, 2024, Item #4
4. CITY OF IMPERIAL BEACH ATTEST
By:
5. CITY OF LA MESA ATTEST
By:
6. LEMON GROVE SANITATION ATTEST
DISTRICT
By:
7. CITY OF POWAY ATTEST
By:
8. PADRE DAM MUNICIPAL WATER ATTEST
DISTRICT
By:
9. COUNTY OF SAN DIEGO on behalf of ATTEST
WINTER GARDENS SEWER
MAINTENANCE DISTRICT, LAKESIDE
SANITATION DISTRICT, ALPINE
SANITATION DISTRICT, AND SPRING
VALLEY SANITATION DISTRICT
By:
10. OTAY WATER DISTRICT ATTEST
By:
11. NATIONAL CITY ATTEST
By:
7 of8
May 21, 2024, Item #4
12. CHULA
VISTA
By:--------------
8 of8
ATTEST
May 21, 2024, Item #5
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT
May 21, 2024
Honorable Mayor and Members of the City Counc» i J
Robert Manis, Director of Development Services rt
Alex Ubaldo, P.E., Principal Civil EngineerjQ
858-668-4602 or [email protected] (!:-
City of Poway
CITY COUNCIL
Second Extension of the Fiscal Year 2021-22 Street Overlay Project Contract for the Fiscal Year 2023-24 Street Overlay Project with Hazard Construction ENGR, LLC, Bid No. 22-011, Approval of Consultant Agreement for Construction Management Services with Reddy Engineering Services, Inc., RFP No. 24-019, and Determination the Project is Categorically Exempt from the California Environmental Quality Act.
The Fiscal Year (FY) 2023-24 Street Overlay project consists of removal and replacement of asphalt concrete within select streets needing repair in pavement management Zone 7. On May 17, 2022, the FY 2021-22 Street Overlay project was awarded to Hazard Construction ENGR, LLC. The contract includes a provision that allows for the contract to be extended. This is the second of two allowable extensions.
Recommended Action:
It is recommended the City Council:
1) Award the second extension of the FY 2021-22 Street Overlay project contract for the FY 2023-24 Street Overlay project to Hazard Construction ENGR, LLC, in the amount of $2,202,010.20 and authorize the City Manager to execute the contract (Attachment A); 2) Award the construction management services contract to Reddy Engineering Services, Inc., in the amount of $169,648.00 and authorize the City Manager to execute the contract (Attachment B); 3) Approve an increase in estimated TransNet revenue in the amount of $700,300.00 and appropriate those funds for the FY 2023-24 Street Overlay project (ST028); 4) Appropriate additional funds in the amount of $600,000.00 from the Road Maintenance and Rehabilitation Account (RMRA) funds (2120), available fund balance for the FY 2023-24 Street Overlay project (ST028); and
5) Make a determination the project is Categorically Exempt from the California Environmental Quality Act (CEQA).
1 of 29
May 21, 2024, Item #5
Discussion:
Hazard Construction ENGR, LLC successfully executed and completed both the FY 2021-22 Street Overlay project in pavement management Zone 5 and the FY 2022-23 Street Overlay project in pavement management Zone 6. For this second and final extension to the contract, new unit prices were submitted as required by the contract documents. The new unit prices have been reviewed and accepted by staff. The scope of work is consistent with last year's scope and the unit prices remain competitive and are within the expected escalation rates. All other provisions of the FY 2021-22 Street Overlay contract will remain in effect.
The scope of this year's project consists of asphalt cold milling, asphalt patching, and pedestrian access ramp removal and replacement. The work will be performed on the arterial and collector streets in the South Poway Business Park in pavement management Zone 7 (see Attachment C). This work has been coordinated with the FY 2024-25 Street Maintenance project also occurring in Zone 7, which will follow immediately after the Street Overlay project.
The Second Amendment to the contract is attached (see Attachment A); however, due to the length of the full contract, not all referenced attachments are included. The complete contract is available for review with the Development Services Department.
Construction Management Services
The construction management of the street overlay project is normally performed by in-house staff.
However, due to a retirement and the recent resignation of staff who have the expertise and experience to perform this work, retaining an experienced consultant to provide construction management services was determined to be the best solution in order to not delay the project. The construction management contract will be covered entirely by Trans Net and RMRA funds.
Staff recommends the award of a construction management services contract in the amount of $169,648.00 with Reddy Engineering Services, Inc. (RE Services). On April 1, 2024, the Development Services Department issued a Request for Proposal (RFP No. 24-019), to provide construction management, inspection, and material testing services for the FY 2023-24 Street Overlay project. The City received proposals from four consulting firms. After evaluating and scoring the proposals, staff concluded that RE Services is the most qualified consultant for this project. RE Services presented a team with substantial experience providing similar pavement construction management and inspection services throughout San Diego County.
Environmental Review:
The proposed asphalt/concrete pavement rehabilitation of existing City streets with the FY 2023-24 Street Overlay project is Categorically Exempt from CEQA as a Class 1 Categorical Exemption, pursuant to Section 15301 (c) of the CEQA Guidelines, in that the project involves maintenance of existing streets with no expansion of use.
Fiscal Impact:
This project is funded primarily with TransNet funds and supplemented with RMRA funds. TransNet funds are generated by a half-cent sales tax approved by San Diego County voters to fund 2 of 29
May 21, 2024, Item #5
transportation projects in San Diego County. RMRA funds are generated from Senate Bill 1 (SB1 ): Road Repair and Accountability Act of 2017 and are used for basic road maintenance, rehabilitation, and critical safety needs on both the state highways, and local streets and road systems. This project was identified and included in both the TransNet and SB1 List of Projects, which were adopted at the May 7, 2024, City Council meeting. With the recommended appropriations included in this report, there are sufficient funds in the FY 2023-24 Street Overlay project account (ST028) to cover the construction costs of the project. The construction management contract is also fully funded by Transnet and RMRA.
Public Notification:
None.
Attachments:
A. Second Amendment to the Contract
B. Construction Management Services Contract
C. Zone 7 Location Map
Reviewed/Approved By:
Assistant City Manager
3 of 29
Reviewed By:
Alan Fenstermacher
City Attorney
May 21, 2024, Item #5
SECOND AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF POWAY AND
HAZARD CONSTRUCTION ENGR, LLC
10529 Vine Street
Lakeside, CA 92040
This Second Amendment to Contract (the "Second Amendment") is made effective May 22, 2024, by and between the City of Poway, a municipal corporation (the "City") and Hazard Construction ENGR, LLC, a California corporation (the "Contractor") to extend the term of that certain City of Poway Unit Price Contract to the 2021-2022 Street Overlay Project dated May 18, 2022 (the "Contract").
RECITALS
A. The City and Contractor entered into the Contract for a term that began on May 18, 2022, and which was originally to expire on June 27, 2022.
B. Under the conditions of the 2021-2022 Street Overlay Project Special Provisions, Section 2-15, Contract Length, the parties by mutual consent, can extend the agreement by up to two (2) one-year periods.
C. The City and Contractor entered into the First Amendment for a term that began on May 6, 2022 and expired on June 30, 2023.
D. The parties now wish to extend the term of the Contract to December 31, 2024.
NOW, THEREFORE, in consideration of the mutual benefits to be derived thereupon, the parties agree to amend the Contract as follows:
4 of29
1. For the period of July 1, 2023, through December 31, 2024, the title of the project shall be changed from the "2021-2022 STREET OVERLAY PROJECT" to the "2023-2024 STREET OVERLAY PROJECT," (the "2023- 2024 Project"). Except for work to cure any defaults in work performed under the Contract during its initial term, all work to be performed between the effective date and expiration date of this Contract extension shall be for the 2023-2424 Project.
2. The Construction Contract for the 2023-2024 Project, attached to this Extension as Attachment 1, shall apply to all work performed for the 2023- 2024 Project.
3. The Bonds for Material and Labor and for Faithful Performance, attached to this Extension as Attachments 2 and 3, respectively, shall apply to all work performed for the 2023-2024 Project.
4. The Guaranty for the 2023-2024 Project, attached to this Extension as Attachment 4, shall apply to all work performed for the 2023-2024 Project.
5. The Worker's Compensation Insurance Certificate dated _____ , attached to this Extension as Attachment 5, shall apply to all work performed for the 2023-2024 Project.
ATTACHMENT A
May 21, 2024, Item #5
Second Amendment
Hazard Construction ENGR, LLC
6. The Unit Price Proposal for the 2023-2024 Project, together with the Bid Schedule, collectively attached to this Extension as Attachment 6, shall apply to all work performed for the 2023-2024 Project.
7. The List of Subcontractors for the 2023-2024 Project, attached to this Extension as Attachment 7, shall apply to all work performed for the 2023- 2024 Project.
8. The Worker Classifications for the 2023-2024 Project, attached to this Extension as Attachment 8, shall apply to all work performed for the 2023- 2024 Project.
9. The Non-Collusion Affidavit for the 2023-2024 Project, attached to this Extension as Attachment 9, shall apply to all work performed for the 2023- 2024 Project.
10. The Asphalt Quantity Table for the 2023-2024 Project, attached to this Extension as Attachment 10, shall apply to all work performed for the 2023- 2024 Project.
11. The Addendum to Sections 4 and 7.4, Vicinity Maps, and Construction Details for the 2023-2024 Project, attached to this Extension as Attachment 11, shall apply to all work performed for the 2023-2024 Project.
Except as otherwise expressly provided above, all the provisions of the Contract between the City of Poway and Hazard Construction ENGR, LLC, effective May 22, 2024, as extended by the second amendment, shall remain in full force and effect.
IN WITNESS WHEREOF the parties have caused the Contract to be executed as follows:
BY: DATED
Jason A. Mordhorst
President
Hazard Construction ENGR, LLC
BY: DATED
Chris Hazeltine
City Manager
City of Poway
ATTEST: DATED
Carrie Gallagher
City Clerk
City of Poway
5 of 29
May 21, 2024, Item #5
City of Poway
STANDARD AGREEMENT FOR SERVICES
This Agreement, entered into this 22nd day of May, 2024, by and between the CITY OF POWAY (hereinafter referred to as "City") and REDDY ENGINEERING SERVICES, INC., (hereinafter referred to as "Consultant").
RECITALS
WHEREAS, City desires to obtain the services of a private consultant to perform construction management services for the Fiscal Year 2023-24 Street Overlay Project (Project); WHEREAS, Consultant is a construction management consultant and has represented that Consultant possesses the necessary qualifications to provide such services; and WHEREAS, City has authorized the preparation of an agreement to retain the services of Consultant as hereinafter set forth.
NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONSUL TANT ON THE FOLLOWING TERMS AND CONDITIONS:
1. Scope of Services.
Consultant shall provide services as described in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
2. Compensation and Reimbursement.
City shall compensate and reimburse Consultant as provided in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
3. Term of Agreement.
The term of this Agreement shall be as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
4. Termination.
This Agreement may be terminated with or without cause by City. Termination without cause shall be effective only upon 60-day written notice to Consultant. During said 60- day period Consultant shall perform all consulting services in accordance with this Agreement.
This Agreement may be terminated by City for cause in the event of a material breach of this Agreement, misrepresentation by Consultant in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City.
Termination for cause shall be effected by delivery of written notice of termination to Consultant.
Such termination shall be effective upon delivery of said notice. 6 of 29 ATTACHMENT B
May 21, 2024, Item #5
5. Confidential Relationship.
City may from time to time communicate to Consultant certain information to enable Consultant to effectively perform the services. Consultant shall treat all such information as confidential, whether or not so identified, and shall not disclose any part thereof without the prior written consent of the City. Consultant shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services.
The foregoing obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of Consultant, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of Consultant without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to Consultant by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party.
Consultant shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this contract without the prior written consent of the City. In its performance hereunder, Consultant shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation.
6. Office Space and Clerical Support.
Consultant shall provide its own office space and clerical support at its sole cost and expense.
7. Covenant Against Contingent Fees.
Consultant declares that it has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of the Agreement. For breach of violation of this warranty, City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
8. Ownership of Documents.
All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement shall be the property of City and shall be delivered to City by Consultant upon demand.
9. Conflict of Interest and Political Reform Act Obligations.
During the term of this Agreement Consultant shall not act as consultant or perform services of any kind for any person or entity whose interests conflict in any way with those of the City of Poway. Consultant shall at all times comply with the terms of the Political Reform Act and the local conflict of interest code. Consultant shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Consultant has a financial interest as defined in Government Code Section 87103.
Consultant represents that it has no knowledge of any financial interests which would require it to disqualify itself from any matter on which it might perform services for the City. 7 of 29 2
May 21, 2024, Item #5
"Consultant" means an individual who, pursuant to a contract with a state or local agency:
(A) Makes a governmental decision whether to:
1. Approve a rate, rule or regulation;
2. Adopt or enforce a law;
3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement;
4. Authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires City approval;
5. Grant City approval to a contract that requires City approval and to which the City is a party, or to the specifications for such a contract;
6. Grant City approval to a plan, design, report, study, or similar item;
7. Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or
(B) Serves in a staff capacity with the City and in that capacity participates in making a governmental decision as defined in the Political Reform Act and/or implementing regulations promulgated by the Fair Political Practices Commission, or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code.
DISCLOSURE DETERMINATION:
~ 1. Consultant/Contractor will not be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above.
No disclosure required.
D 2. Consultant/Contractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, Consultant/Contractor shall be required to file a Statement of Economic Interest with the City Clerk of the City of Poway in a timely manner as required by law.
Robert J. Manis, Director of Development Services
10. No Assignments.
Neither any part nor all of this Agreement may be assigned or subcontracted, except as otherwise specifically provided herein, or to which City, in its sole discretion, consents to in advance thereof in writing. Any assignment or subcontracting in violation of this provision shall be void.
11. Maintenance of Records.
Consultant shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the contract period and for three 8 of 29 3
May 21, 2024, Item #5
(3) years from the date of final payment under this Agreement, for inspection by City and copies thereof shall be furnished, if requested.
12. Independent Contractor.
At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of the City of Poway. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes such services.
13. Licenses, Permits, Etc.
Consultant represents and declares to City that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for Consultant to practice its profession.
14. Consultant's Insurance.
Consultant shall provide insurance as set forth in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
15. Indemnification.
(a) For Claims (as defined herein) other than those alleged to arise from Consultant's negligent performance of professional services, City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "lndemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless lndemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses, including reasonable attorneys' fees and disbursements (collectively "Claims"), which lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of Consultant's negligent performance under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees. (b) For Claims alleged to arise from Consultant's negligent performance of professional services, lndemnitees shall have no liability to Consultant or any other person for, and Consultant shall indemnify and hold harmless lndemnitees from and against, any and all Claims that lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise to the extent occurring as a result of Consultant's negligent performance of any professional services under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees, committed in performing any of professional services under this Agreement. For Claims alleged to arise from Consultant's professional services, Consultant's defense obligation to lndemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Consultant's negligence.
9 of 29 4
May 21, 2024, Item #5
(c) The foregoing obligations of Consultant shall not apply to the extent that the Claims arise from the sole negligence or willful misconduct of City or its elected and appointed boards, officials, officers, agents, employees and volunteers. (d) In any and all Claims against City by any employees of the Consultant, anyone directly or indirectly employed by it or anyone for whose acts it may be liable, the indemnification obligation under this Section 15 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Consultant under worker's compensation acts, disability benefit acts or other employee benefit acts. (e) Consultant shall, upon receipt of written notice of any Claim, promptly take all action necessary to make a claim under any applicable insurance policy or policies Consultant is carrying and maintaining; however, if Consultant fails to take such action as is necessary to make a claim under any such insurance policy, Consultant shall reimburse City for any and all costs, charges, expenses, damages and liabilities incurred by City in making any claim on behalf of Consultant under any insurance policy or policies required pursuant to this Agreement. (f) The obligations described in Section 15(a) through (e) above shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person indemnified pursuant to this Section 15. (g) The rights and obligations of the parties described in this Section 15 shall survive the termination of this Agreement.
16. Assumption of Risk.
Except for injuries to persons caused by the willful misconduct of any lndemnitee and not covered by insurance maintained, or required by this Agreement to be maintained, by Consultant: (a) Consultant hereby assumes the risk of any and all injury and damage to the personnel (including death) and property of Consultant that occurs in the course of, or in connection with, the performance of Consultant's obligations under this Agreement, including but not limited to Consultant's Scope of Services; and (b) it is hereby agreed that the lndemnitees are not to be liable for injury or damage which may be sustained by the person, goods or property of Consultant or its employees in connection with Consultant's performance its obligations under this Agreement, including but not limited to Consultant's Scope of Services.
17. Consultant Not an Agent.
Except as City may specify in writing, Consultant shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent.
Consultant shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
18. Personnel.
Consultant shall assign qualified and certified personnel to perform requested services. The City shall have the right to review and disapprove personnel for assignment to Poway projects.
City shall have the unrestricted right to order the removal of any person(s) assigned by Consultant by giving oral or written notice to Consultant to such effect. 10 of 29 5
May 21, 2024, Item #5
Consultant's personnel shall at all times comply with City's drug and alcohol policies then in effect.
19. Notices.
Notices shall be given as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
20. Governing Law, Forum Selection and Attorneys' Fees.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Each party to this Agreement consents to personal jurisdiction in San Diego County, California, and hereby authorizes and accepts service of process sufficient for personal jurisdiction by first class mail, registered or certified, postage prepaid, to its address for giving notice as set forth in Exhibit "A" hereto. Any action to enforce or interpret the terms or conditions of this Agreement shall be brought in the Superior Court in San Diego County, Central Division, unless the parties mutually agree to submit their dispute to arbitration.
Consultant hereby waives any right to remove any such action from San Diego County as is otherwise permitted by California Code of Civil Procedure section 394. The prevailing party in any such action or proceeding shall be entitled to recover all of its reasonable litigation expenses, including its expert fees, attorneys' fees, courts costs, arbitration costs, and any other fees. Notwithstanding the foregoing, in the event that the subject of such an action is compensation claimed by Consultant in the event of termination, Consultant's damages shall be limited to compensation for the 60-day period for which Consultant would have been entitled to receive compensation if terminated without cause, and neither party shall be entitled to recover their litigation expenses.
21. Gender.
Whether referred to in the masculine, feminine, or as "it," "Consultant" shall mean the individual or corporate consultant and any and all employees of consultant providing services hereunder.
22. Counterparts.
This Agreement (and any amendments) may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. Documents delivered by telephonic facsimile transmission shall be valid and binding.
23. Entire Agreement.
This Agreement shall constitute the entire understanding between Consultant and City relating to the terms and conditions of the services to be performed by Consultant. No agreements, representations or promises made by either party, whether oral or in writing, shall be of any force or effect unless it is in writing and executed by the party to be bound thereby.
24. Certification and Indemnification Regarding Public Employees' Retirement Law/Pension Reform Act of 2013.
Contractor hereby certifies that all persons providing services to City by Contractor are not current members of the California Public Employees' Retirement System (CalPERS) and shall not become members of CalPERS while providing services to City. 11 of 29 6
May 21, 2024, Item #5
Contractor further provides that in the event Contractor assigns a retired annuitant receiving a pension benefit from CalPERS to perform services for City, the retired annuitant is in full compliance with Government Code section 7522.56. A copy of Government Code section 7522.56 is attached hereto as Exhibit "B." Further, Contractor hereby fully and unconditionally indemnifies City from all penalties, fees, employer and employee contributions, or any other assessments imposed by CalPERS in the event CalPERS determines the person assigned by Contractor to provide services to City has been misclassified.
25. Severability.
If any provision of this Agreement is determined by any court of competent jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this Agreement shall remain in effect.
(Remainder of page intentionally left blank)
12 of 29 7
May 21, 2024, Item #5
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written.
CITY OF POWAY
By:-----------
Chris Hazeltine, City Manager
Date: ___________ _
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
By:------------
Alan Fenstermacher, City Attorney
13 of 29
REDDY ENGINEERING SERVICES, INC.
By:------------
Vinay Reddy, P.E. QSD
Date: ___________ _
8 May 21, 2024, Item #5
A.
"SPECIAL PROVISIONS"
EXHIBIT "A"
Scope of Services.
Consultant agrees to perform consulting services as required by City, which shall consist of the construction management services further described in the Scope of Work submitted with the proposals dated April 24, 2024 which is included in this document as Attachment 1, and incorporated by reference, as if its contents were fully set forth herein.
Consultant shall provide the necessary qualified personnel to perform the services.
B. Compensation and Reimbursement.
City shall pay Consultant a fee in accordance with the Fee Proposals submitted with the proposals dated April 24, 2024, which are included in this document as Attachment 2.
Total fee is not to exceed One Hundred Sixty-Nine Thousand Six Hundred Forty-Eight ($169,648). Consultant's fee shall include and Consultant shall be responsible for the payment of all federal, state, and local taxes of any kind which are attributable to the compensation received.
In addition to said consulting fee, Consultant shall be reimbursed for all reasonable expenses, including lodging, telephone, and travel (air, auto, rail) necessarily incurred in performance of the services. Consultant shall bill City for such expenses as incurred, referencing this Agreement. All expenses shall be itemized and supported by receipts for amounts in excess of Twenty-Five Dollars ($25.00). Statements for reimbursement of expenses shall be paid within ten (10) days of approval by City. All air travel shall be billed at coach or special fare rates. Reimbursement for lodging is limited to travel from outside of San Diego County. Consultant shall receive prior authorization for air travel and lodging expenses. All other expenses shall be reimbursed in accordance with City's cash disbursement policies in effect at the time incurred.
C. Term of Agreement.
This Agreement shall commence and be effective as of May 22, 2024 ("Effective Date"), and shall automatically terminate upon completion of the Project, as determined by the City in its sole discretion, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." Upon the termination of this Agreement, Consultant shall return to City any and all equipment, documents or materials and all copies made thereof which Consultant received from City or produced for City for the purposes of this Agreement.
D. Consultant's Insurance.
1. Coverages:
Consultant shall obtain and maintain during the life of this Agreement all of the following insurance coverages:
(a) Comprehensive General Liability, including premises-operations, products/completed, broad form property damage, and blanket contractual liability with the 14 of 29 1
May 21, 2024, Item #5
following coverages: General Liability $1,000,000 Bodily Injury and 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.
(c) Consultant shall obtain and maintain, during the life of the Agreement, a policy of Professional Errors and Omissions Liability Insurance with policy limits of not less than $1,000,000 combined single limits, per claim and annual aggregate. (d) Workers' Compensation insurance in statutory amount. All of the endorsements which are required above shall be obtained for the policy of Workers' Compensation insurance.
2. Endorsements:
Endorsements shall be obtained so that each policy contains the following three provisions:
(a) Additional Insured. (Not required for Professional Errors and Omissions Liability Insurance or Workers' Compensation.) "City of Poway and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice.
"Said policy shall not terminate, nor shall it be canceled, until thirty (30) days after written notice is given to City."
(c) Primary Coverage.
"The policy provides primary coverage to City and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City."
3. Insurance Certificates:
Consultant shall provide City certificates of insurance showing the insurance coverages described in the paragraphs above, in a form and content approved by City, prior to beginning work under this Agreement.
E. Notices.
All notices, billings and payments hereunder shall be in writing and sent to the following addresses:
To City:
To Consultant:
15 of 29 2
City of Poway -Development Services
13325 Civic Center Drive
Poway, CA 92064
Reddy Engineering Services, Inc.
3160 Camino Del Rio South, #103
San Diego, CA 92108
May 21, 2024, Item #5
Attachment 1
Construction Engineering/Contract Management Services
For our first of what we hope will be many construction management tasks delivered for the City of Poway, we are providing Eric Tallarita, PE, CCM, and Nate Wright, CMIT, for the roles of Project Manager and Project Inspector, respectively. Both Eric and Nate offer expertise in project management, asphalt concrete/patch repair, construction inspection, and quality control. In the role of Project Manager, Eric will be the primary point-of contact for the City and will ensure the project is completed on time, within budget, and to the required quality standards outlined in the contract documents.
Based on our past experiences, we created the RE
Services Top 5 Program Goals to adva nee the City's
FY 2023-24 Street Overlay Project. To achieve the
Top 5 Goals, our construction management services
approach uses best practices from similar scopes of
work throughout the region, including the City of
Encinitas, County of San Diego, and City of Chula Vista. 2 Quality Meet all contract quality and material
standards following the City of Poway's QAP
Budget Return a portion of contract
3 contingency by change control management
4 Schedule Complete the project on time
5 Outreach Develop a positive public perception
RE Services will provide comprehensive construction
engineering services, including the management
and administration of the construction contract. This
involves overseeing all aspects of the construction
management services to ensure compliance with
specifications, schedules, and budgetary constraints.
Collaborative project solutions
Often with maintenance resurfacing projects,
detailed scopes of work are initiated to resolve an
outreach item or part of an agreement between
agencies. Having the time to review these conditions
with the designer and City, prior to bid, will help
unify the City Pavement Management Team, and
provide Hazard with a clear understanding of how
the contract should be enforced.
• RE SERVICES 16 () 291St1X:t11-,~~1u.'-"S.:.tn:ucnn:nm Drawing from our experience on prior projects, RE
Services actively contributes during preconstruction
phases. Our pavement condition cost-benefit analysis
consistently suggests that transitioning asphalt
treatments from patch repairs to full-width mill and
inlays is more economically viable. This approach
mitigates the need for costly patch repairs or suggests hybrid methods. For instance, on for the City of Chula
Vista, we advocated for converting the original hybrid
inlay and slurry approach to a full-width mill and
inlay along H Street. Despite a slight cost increase, this decision significantly extended the projected lifespan
of the road segment by 15 years while eliminating
potential maintenance weak spots and seams.
Sustainable Pavement Solutions
Our team recently played a pivotal role in advancing
the sustainability agenda of the County of San
Diego. We provided Construction Management (CM)
support for county-wide slurry seal improvements,
a contribution that earned us the 2023 Honor
Award in the Sustainable/Green category.
Collaborating closely with County staff and the
Building Better Roads group, we successfully
implemented treatments using both virgin and
Recycled Asphalt Pavement (RAP) chip and
slurry seal methods across diverse climates.
Safety
Our team boasts extensive experience with Cal OSHA
regulations. At RE Services, prioritizing safety is ingrained in every aspect of our construction process, from kicking off our construction meetings to field observations/
inspections. We ensure the proper utilization of Personal May 21, 2024, Item #5
@ff?
-
City of Poway RFP 24-019
Construction Management Services for
Fiscal Year 2023-24 Street Overlay Project
Protective Equipment (PPE) at all times. Recognizing
that neglecting PPE not only compromises safety but
also detracts from the project's overall quality and
reputation, we uphold stringent standards to maintain a safe and professional work environment. A staple of the RE Services construction meetings, field meetings, and
inspections are the proper use of Personal Protection
Equipment (PPE). Not only does improper PPE ruin
project award-winning photos, but this unsafe practice
does little to promote confidence with other aspects of the project, such as quality.
Familiarity with State and Local Procedures
The RE Services team is extremely knowledgeable
regarding industry-wide and local construction
management procedures. Our team, through our
experience delivering contracts with clients throughout the County of San Diego, is well-versed in the Greenbook Specifications for Public Works, the State General
Construction Permit, San Diego Regional Water Quality
Control Board Regulations, the State of California Public Contract Code, and the California Coastal Commission
regulations. We also possess expertise in Contract
Change Order processes, construction schedule analysis, interpreting and enforcing San Diego Regional Standard
Drawings and San Diego County Design Standards,
providing detailed daily reports and other reporting, and maintaining the Caltrans filing categories and system
using cloud storage.
RE Services has also worked successfully with other
local agencies such as Caltrans District 11, SAN DAG,
the County of San Diego, and the City of Chula Vista,
and is familiar with the Caltrans Construction Manual,
Caltrans Standard Plans and Specifications, California
MUTCD, and more. Our team members have a strong
understanding of these manuals and standards and
successfully utilize them, as well as quickly adapt to
new standards and systems, to manage each project.
Our familiarity with state and local procedures in
addition to our technical savvy and commitment to
digital innovation allows us to be efficient, agile, and quick to provide recommendations to City staff or to
provide additional information quickly to allow for
presentation of all data for an educated decision.
Preconstruction and Weekly Meetings
RE Services will organize and facilitate a
preconstruction meeting to ensure alignment among
project stakeholders, taking the opportunity to set
contractual expectations with the Hazard team.
Additionally, we will conduct weekly progress meetings
to review project status, discuss any issues or concerns, and coordinate upcoming activities. RE Services will
take the initiative to host the construction meetings,
beginning with the preconstruction meeting, an
opportunity to calibrate expectations for the contractor and stakeholders and align them with the important
aspects of the contract documents.
Submittal Review
RE Services will review and accept contractor
submittals to ensure compliance with project
specifications and requirements. Eric will leverage his experience serving as office engineer for large projects to diligently:
Receive, log, and review all submittals, RFls, and
change order requests
Compare all items to the contract documents and
involve the City PM and designer, as needed
Work with Kleinfelder to review the AC mix and
concrete mix designs
Track and process weekly statements of working
days for the project file and dissemination to
stakeholders
Management of RFls
RE Services will manage the RFI process, including
tracking, reviewing, and coordinating responses to
ensure timely resolution of inquiries.
Schedule Coordination
We will develop a methodology of how Hazard can
accomplish the work. This will ensure a thorough
examination of the Special Provisions sequencing
restrictions and parameters, including traffic control
conditions, school zones, as well as unique traffic
volumes on certain road segments during holidays.
The document will serve as a partnering tool to help
Hazard plan their schedules, and to better understand
our expectations for returning a quality deliverable
during the construction submittal process.
@ff?
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May 21, 2024, Item #5
City of Poway RFP 24-019
Construction Management Services for
Fiscal Year 2023-24 Street Overlay Project
Reporting
RE Services will provide regular reports, including
daily, weekly, and monthly updates, documenting
project progress, issues encountered, and any
necessary actions taken. Project photo documentation
will be included to visually track progress. We will act as an extension of your staff, providing the information you need, when you need it. We will continue to
provide weekly construction reports at a high level of
detail showcasing the key events of that week so City
Management feels engaged on weekly developments
and nonconforming activities.
Field/Construction Inspection
Inspection I As an extension of Eric, Nate will be
responsible for full-time field inspection. His experience performing as Field Operations Pavement Manager at
County of San Diego and his role as lead inspector on
the recent City of Encinitas CS23A project make him
the ideal candidate. He will track Hazard's progress and document labor, equipment, and materials in a thorough
daily diary. Nate will obtain sign-off on an agreed-
upon quantity report each day with the contractor, an
excellent tool to avoid quantity discrepancies.
Traffic Control I Maintaining safe access to pedestrian and vehicular traffic is essential to delivering a safe project. We will review traffic control plans against the contract documents, including the regional standards,
and we will work with the contractor to ensure
contingency plans are in place for each road segment
and stakeholders affected. We will also ensure that
Hazard complies with the working hours allocated in
I RE SERVICES 18 C)j 9'.i!J:\ICTrN11J.\IO.r!ffiLU.\!Pl.!.lJ'l:J,lO'lnGU'1 the contract and coordinate cutoff tonnages so no open
cuts exist prior to leaving the site. Any deficiencies will be documented as field memorandums and/or issued
as letters of non-conformance and will be reviewed at a subsequent construction meeting.
Road Reviews I RE Services relishes the opportunity to
perform preconstruction services prior to issuing the
plans for construction. We propose beginning with
what we call "road reviews."This process includes
review of95% PS&E and documenting existing
conditions with photos and videos, performing
quantity takeoffs, identifying discrepancies in the
contract, and noting any issues that City maintenance
should be aware of such as those identified in the
Zone 7 Overlay Map included below. We will drive
each roadway with a GoPro attached to the dash,
creating an all-encompassing preconstruction record
of the road segment just prior to construction. This
data is used often on these types of projects to
help settle disputes with the contractor on existing
conditions.
Plant Observation
Kleinfelder will sample and test asphalt plant
operations to ensure compliance with specifications
and QAP.
Material Testing Services
RE Services will review the contract documents to
ensure that all requirements are clearly understood
and adhered to. We wi II spot check document
controls such as submittals and RFls throughout the
May 21, 2024, Item #5
~
N
City of Poway RFP 24-01 9
Construction Management Services for
Fiscal Year 2023-24 Street Overlay Project
\0 RE Services Road Review Map (Zone 7)
Wing will exceed 10%, max
SDRSD G-27 A note 3 allows wing to be extended up to 15' to achieve 1:10 slope. At this location, we will extend left wing'Z'dimension to 1 0'to account for running slope.
Drawing from our experience with over 850 ADA-compliant curb ramps, we concentrate on critical tie-in points to create less steep Benefit ramps that meet ADA guidelines. This foresight allows us to foresee pofential issues, ensuring a smooth transition between pedestrian paths and a safe, accessible environment.
~
Existing Traffic Signal Induction Loops
will be destroyed during patch repairs
Our crews will work with Poway Signals
Maintenance to replace loops and issue
a change order to Hazard for work not
identified in the contract items.
3" Mill and Fill AC
Surroundin_g_ Valve Clusters
3• Mill and Fill Intersection
(Night Wmk Upon Request)
ti !
·-.~\
__ . .// -. --1-~ .
. j,
'oll!, ufi'.J
3"Milland Fil!
WB Lanes of Intersection
(Night Wo1 k Upon R~uest)
Challen e There appears to be an unmarked utility manhole based on 9 failure size and shape.
Solution Our crews will mark out and work with Poway Utility coordinator to identify possible utility and adjust in contract.
RE Services detects unmarked utilities in roads, providing benefits like cost savings from avoiding repairs and keeping projects on schedule. We collaborate with local utility Benefit agencies for better coordination and risk management. 3"Milland fill
Intersection limit to
This enhances resource efficiency and prolongs your road constructions' lifespan.
Limit on Minors St1eet
ProJ~ct t·!o1ifKt'lt1on Sign Identifying and planning for potential scope changes enhances transparency
in project management. It promotes
clear communication, efficient resource
allocation, timely decisions, and effective
risk management, leading to streamlined
project execution.
?ro;e-:t \otlfit.:Jtion ~i;n / Pedestrian Ramp Upgrades See Appendix B (Typ)
3"Thick Mill and Fill Asphalt Patches tf9t1 /1 Jll1C lnwr~';;(l 011 See Asphalt Quantity Table (Costco Gas Station En11ance, Appendix F (Typ) Night Work Upon Request)
G> Project Information Sign Location
Project ID Signs must be visible and placed in a safe location. They are often Challenge overlooked by Construction but play an important role in Outreach and Communication.
Solution Our crew~ will propose locations to Poway to review and concur and issue to construction.
RE Services will boost Poway City's safety and communication by ensuring safe and visible project signage. This not only alerts the public about construction Benefit and possible safety risks but also shares crucial project details like purpose, duration, and funding source. This approach aims to enhance transparency, foster community understanding, acceptance, and involvement.
Locations show rutting and surface distress/fatigue
cracking.
Solution Our crews will mark out and encumber funds from contingency to perform patch repairs shown.
Early marking by our crews allows for proactive problem solving, reducing potential delays and ensuring efficient Benefit use of resources. This foresight aids in maintaining a high standard of quality and care, ultimately resulting in durable and long-lasting road constructions ..
llH ~. !i~~s~~LS~~ ----- -=== = ==:--------====---=--- r,;- -·· May 21, 2024, Item #5
@ffe
City of Poway RFP 24-019
Construction Management Services for
Fiscal Year 2023-24 Street Overlay Project
project, participate in weekly meetings as necessary,
and facilitate the preconstruction meeting for the
project and the paving preconstruction meeting
prior to asphalt work. Eric and Kleinfelder will review all Greenbook mix design submittals, and review all
test reports including any non-conformance testing
outside of contractual compliance.
Our team is familiar with Green book and Caltrans
material sampling and testing requirements. During
the submittal review process, we develop and attach
a work plan to our submittal response that identifies
relevant contract specifications, including material
testing methods, frequencies, and tolerances, to
ensure that the work performed by the contractor
meets the quality standards of the contract. These
work plans are also provided to the project inspectors
and to our material testing subconsultant, Kleinfelder, as a form of quality assurance. For big scope items
like asphalt concrete and patch repairs, we hold a
pre-paving meeting with the contractor, our testing
subconsultant, and our CM team to discuss the
Quality Assurance Plan
Kleinfelder will assist RE Services in developing
a project specific Quality Assurance Plan that
conforms to the City of Poway's Quality Assurance
Program (QAP) dated 2020, and the contract
documents. RE Services and Kleinfelder have a
proven track record of working as a cohesive
construction management and testing team
on projects like City of Encinitas FY22-23
Citywide Street Overlay and Slurry Seal
Project, City of Chula Vista's RMRA Major
Pavement Rehabilitation FY19/20, Countywide
Asphalt Overlay Projects FY19/20, 20/21,
21 /22, and Slurry Treatments Project FY 21 /22.
operation, the testing schedule, and risk items.
Example testing requirements we will offer in our
QAP to be presented prior to construction:
Field Testing/ Compaction testing by nuclear method
(CT37S), HMA sampling (CT 125), cores to determine
I RE SERVICES 20 ()f; 29,mu:rv111.1..v.c.u-0011J.\ll'S.t.l."1:U0111cutt specific gravity and density (if requested) (ASTM
D2726), Concrete slump test (ASTM Cl 43), strength
(ASTM C39), and aggregate sampling (ASTM D75);
Admixtures and set agents accepted by Certificate of
Compliance (COC).
Laboratory testing/ Asphalt, Soil maximum density/
optimum moisture curves by ASTM D1557 method
or CT 216 method, Sieve analysis per ASTM D422,
Fines wash per ASTM Dl 140, Hamburg Wheel Track
(AASHTOT324), Asphalt Moisture Content (CT 370),
HMA Compaction (CT 304), AC HVEEM Max Density
(CT 375), Marshall Max Density (ASTM D6926),
Stabilometer (CT366).
Eric will work with Kleinfelder's management to collect testing results in a timely manner and communicates
the results to the City and contractor. Nate will also
communicate with Kleinfelder's field technicians to
identify testing issues as construction progresses.
At the end of the project, we will issue a materials
certification form (see attachment 2) that confirms
control of materials for the contract.
Measurement of Quantities
Quantity Database / RE Services is developing table
logs per road segment, breaking down each segment
of detail provides clear communication to City staff ~
according to the affected contract item. This level @ffe and the contractor to communicate the engineer's \;;I.
estimate and actual quantities. Creating these tables
prior to construction will achieve cost certainty and
ensure prompt payment to the contractor when the
team has signed daily Q-Sheets from both parties after
each shift.
Item Adjustment Tracking/ After verifying the
database and anticipated quantities, we will identify
contract items that may be subject to adjustment. Our
inspectors and construction managers will diligently
track the effort expended on contract items to make ~"'=' adjustments upon completion of work. ~
On CS23A, Eric developed a quantity tracker that
breaks out the engineer's estimated quantities
by road segment. We will use this information
to tentatively agree on daily quantities with the
contractor to eliminate disputes during progress
payments and Proposed Final Estimate (PFE).
May 21, 2024, Item #5
City of Poway RFP 24-019
Construction Management Services for
Fiscal Year 2023-24 Street Overlay Project
Managing Change Orders
RE Services will manage the change order process,
including reviewing and processing change order
requests and requests for extra work.
Review and Approval of Progress
Estimates
RE Services will review and approve progress estimates
submitted by the contractor to ensure accuracy
and compliance with project requirements. We will
monitor the project schedule and budget closely to
ensure that the project is completed on time and
within budget. Contractor pay estimates will be
accompanied with a Fiscal Accounting of Financial
Contingency (FAFC) form identifying the projected
remaining funding based on item adjustments and
change orders. Monthly task order invoices will be
supplemented with burn rate tables indicating the
remaining task order balance so both parties can
proactively manage task order budgets, and eliminate
surprises if/when a task order amendment is needed.
Our staff identifies potential issues early and will work with the City and contractor to develop solutions
that minimize impacts on the project schedule and
budget. Both Eric and Nate are skilled at reviewing
contractor CPM schedules, which we will use to track
progress, forecast budgets, and hold the contractor
accountable. On CS23A, despite resistance from the
contractor, Eric was able to convince the contractor
to provide a detailed baseline schedule that
included individual tasks for each road segment.
This level of detail in the schedule combined with
our understanding of production rates helped us to
identify logic flaws and work with the contractor to
revise the schedule.
As for our own task budgets, RE Services has never
overrun a program budget in our six-year history.
Processing Claims
RE Services will process any claims arising during the
construction process in accordance with the contract
terms and conditions. On the recent CS23A contract
with the City of Encinitas, Project Manager, Eric
Tallarita, PE, CCM provided robust claims defense for
various disputes, from contract time discrepancies to
item quantity discrepancies, safeguarding the City's
interests while minimizing schedule disruptions.
Preparation of Punch List for Final
Inspection
RE Services will prepare a detailed punch list of items requiring correction or completion prior to final
inspection and project acceptance. Eric and Nate will
engage City stakeholders to provide a quality finished
product. As a best practice, we issue punch lists for
phases of work as they are completed to give the
contractor a clear understanding of what will be
required prior to acceptance. For example, on CS23A,
the concrete curb ramps were completed a few weeks
into the project and we provided a comprehensive
punch list to avoid any issues associated with re
mobilizing the subcontractor at the end of the project.
Contract Close-out
RE Services will facilitate the close-out process,
including final inspections, documentation review,
and project acceptance. RE Services will issue a final
construction report (see Attachment 4) that debriefs
the contract documents as well as challenges and
solutions.
As-Built Drawings I Where applicable, we will track
red lines on our hard copy set of plans and use
Bluebeam to create an electronic set. Change orders
and RFls will be incorporated into the plan set to
reflect final conditions. We understand that the
pavement maintenance contracts often include
quantity tables and not plan sheets. We will provide
as-built quantity tables, updating the road segment
actual quantities and including type of treatment,
date of treatment, and material used, to issue to City
Maintenance at turnover. The final sets will be as-built stamped and signed by Eric to certify.
May 21, 2024, Item #5
-· ·-
City of Poway RFP 24-019
Construction Management Services for
Fiscal Year 2023-24 Street Overlay Project
Public Outreach
We exclusively partnered with Southwest Strategies, LLC (SWS), who will prioritize public outreach to address the complexity, schedule, and constantly changing work zone locations associated with the project.
Our proven strategy for public outreach includes:
1. Identify all stakeholders impacted by the project,
including local residents, businesses, community
organizations, schools, EMS, and elected officials;
create distribution list for communication.
2. Use multiple channels including project hotline
and email address, project business cards, signage,
message boards, door knocker notifications, and
public meetings to reach the widest possible
audience and establish multiple opportunities for
stakeholders to provide feedback.
3. Listen actively to feedback from stakeholders, take
concerns seriously, and collaborate with the City to
provide resolutions. Maintain a Stakeholder Inquiry
Log during construction to track the status of each
stakeholder contact from inception to resolution.
4. Communicate regularly to build trust and ensure
that stakeholders remain engaged, informed,
and satisfied. Use distribution list and other
communication channels to update stakeholders
on schedule changes and upcoming impacts.
Our PR team will work closely with f:!ome Depot and Costco to ensure proactive engagement to minimize disruptionto Povyay's high-tax-revenue tenants.
May 21, 2024, Item #5
~ I
•
Annual Budget
LABOR
"PROJECT INSPECTOR - COMPLIANCE
PRINCIPAL-IN- PROJECT MANAGER PROJECT INSPECTOR PREVAILING WAGE OUTREACH MATERIALS / PROJECT CHARGE (RESIDENT ENGINEER) PREVAILING WAGE (AS-NEEDED)" COORDINATOR TESTING CONTROLS RATE: $250.00 $208.00 $195.00 $195.00 $155.00 $35,146 $80.00 HOURS FEE
1. CONSTRUCTION MANAGEMENT ADMINISTRATION s
1.1 REVIEW CONTRACT DOCUMENTS/ ROAD REVIEWS 2 80 80 1 163 $32,895.00
1.2 PREPARE/ CONDUCT PRE-CONSTRUCTION MEETING 1 4 1 1 1 8 $1,627.00
1.3 PERFORM CONSTRUCTION MANAGEMENT AND
ADMINISTRATION 16 100 116 $24,800.00
2 PERFORM FIELD INSPECTION AND DOCUMENTATION 0 $-
2.1 INSPECTION 176 80 256 $49,920.00
2.2 PUBLIC INTERFACE 8 8 40 56 $9,424.00
2.3 DOCUMENTATION 40 40 $3,200.00
2.4 PUNCH LIST 16 16 32 $6,448.00
3. MATERIALS SAMPLING AND TESTING (See Attachment A) 1 0 $35,146
3.1 FIELD SAMPLING AND TESTING 0 s-
3.2 LAB TESTING 0 s-
4. COMPLETE REPORTS AND JOB CLOSEOUT 0 s-
4.1 FINAL REPORTS AND JOB CLOSEOUT 2 16 8 26 $5,388.00
TOTAL ESTIMATED SERVICES (25 WD): $5,250.00 $46,592.00 $56,355.00 $15,795.00 $6,510.00 $35,146.00 $3,200.00 697 $169,648.00 Notes: Estimate is based on project duration of 25 working days; Standard work week from Monday through Thursday, and every other Friday; 10% nightwork; Field Inspection shift consists of 8 hours. Exclusions: Additional effort in the form of longer shifts requiring overtime, extension of project duration due to issues such as problems with contract documents, right-of-way delays, permits, utility conflicts, unsuitable materials, or inefficiencies with the Contractor's operations are not considered within the estimate, and may require an amendment to the estimated budget .
Other Direct Costs:
1. Outreach Hotline (Monthly) $50.00
2. Project Business Cards; Includes Design and Production (2,500 Cards) $750.00
3. Vehicles (included within loaded rates)
* Public works projects or projects receiving public funds may be subject to Prevailing Wage laws. The Technical Staff Rates are assumed to be subject to prevailing wage determination SD-23-63-3-2023-20. fi11 B.~,.~~s~~LS,~Ei
$-
Annual Services Summary (3.5% Escalation): Project Budget CM+ Testing% Project 2024 $169,648.00 $1,800,000.00 9.4%
2025 (Option) $175,585.68 $1,800,000.00 9.8%
2026 (Option) $181,731.18 $1 ,800,000.00 10.1%
)> ..... .....
~
n ::::r
3 (D
::l .....
I\,)
May 21, 2024, Item #5
N :,.
0 ....
N
I.O
City of Poway RFP 24-01 9
Construction Management Services for
Fiscal Year 2023-24 Street Overlay Project
~ NFELDER
Attachment A
SUMMARY OF PROPOSED MATERIALS TESTING SERVICES FOR
~ Bright People. Right Solutions.
CITY OF POWAY: Construction Management Services for Fiscal Year 2023-24 Street Overlay Project (24-019) Reddy Engineering Services, Inc. (RE Services)
Quantity Unit Assumptions Rate
TASK 1. GEOTECHNICAL OBSERVATION & TESTING
A. Technician Observation and Testing Services During Construction Field Tester /Technician (Patch Repairs/Concrete)
Field Tester /Technician - Night Work (Patch Repairs)
Soil Maximum Density (ASTM Dl557/Proctor)
Hveem Stability (ASTM Dl 560)
Unit Weight, Hveem Method (ASTM Dl561)
Maximum Theoretical Specific Gravity (ASTM D2041)
Sand Equivalent (CT 217)
Durability Index, C&F (CT 229)
LA Abrasion, % loss (CT 211)
Soundness, assume 4 sizes (ASTM C88)
Sieve Analysis (ASTM C136)
Wet Track Abrasion (ASTM D3910)
Extraction Test (ASTM D6307, CT 382)
Slurry Seal Water Content
Ignition Oven Calibration
Cylinder Pickup
Concrete Cylinders
ESTIMATED SUBTOTAL-GEOTECHNICAL
TASK2
PROJECT MANAGEMENT, ADMINISTRATION, AND FINAL REPORT
Senior Materials Engineer
Project Manager
ESTIMATED SUBTOTAL
ESTIMATED TOTAL FEE
80 24
2 2
2 2
2 2
2 0
0 0
4 10
8 20
hrs Assume 10 visits at 6 to 8 hours each
hrs Assume 3 visits at 6 to 8 hours each
tests Assume 2 soil types
tests Assume 2 HMA types; pre-production
tests Assume 2 HMA types; pre-production
tests Assume 2 HMA types; pre-production
tests
tests
tests
tests
tests
tests
tests
tests
tests
hrs 2-pick ups
tests 5 cyls per set; assume 2 sets
hrs Engineering oversight, submittal review
hrs Field coord, Dispatch, Document Control
$179.40
$179.40
$305.00
$440.00
$390.00
$210.00
$190.00
$370.00
$240.00
$190.00
$200.00
$440.00
$200.00
$70.00
$440.00
$135.00
$42.00
$300.91
$170.00
Cost
$14,352.00
$4,305.60
$610.00
$880.00
$780.00
$420.00
$380.00
$370.00
$240.00
$380.00
$400.00
$0.00
$0.00
$0.00
$440.00
$540.00
$420.00
$2,407.28
$3,400.00
$24,920
$10,226
$35,146
**Please note: All services are invoiced on a portal to portal basis. Overtime services not specifically listed above will incur a multiplier of 1.5 times the rate shown.** fill B~.,.~~,!:Y!£~,~
* Public works projects or projects receiving public funds may be subject to Prevailing Wage laws. The Technical Staff Rates are assumed to be subject to prevailing wage determination SD-23-63-3-2023-2D. ~ 2
May 21, 2024, Item #5
RE Services is prepared to act as an extension of your team, advocating for cost and schedule certainty. Generally, our standard compensation method offers the City of Poway transparency in the services and pricing from RE Services. This ensures the City of Poway recognizes value in the compensation provided by RE Services, accounting for both the time and expertise of our staff and any direct expenses incurred during the project.
Hourly Billing Rate for Personnel
RE Services charges clients based on the
number of hours worked by our personnel
on a project. The hourly rate is dependent on
an individual member's level of expertise and
specialization. These rates are also established
by factors such as experience, qualifications,
and market rates for similar services. The
rates are derived from the AASHTO Uniform
Audit & Accounting Guide -For Audits
of Architectural and Engineering (A/E)
Consulting Firms, and certified by RE Services'
Public Accountant, Marc Herman.
Reimbursable Expenses
In addition to the hourly billing rates for
personnel, RE Services charges clients for any
reimbursable expenses incurred during the
project. Reimbursable expenses include costs
such as travel expenses, lodging, materials,
equipment rentals, subcontractor fees, and
other direct expenses incurred specifically for
the project defined as other direct cost. These
expenses are billed at cost, meaning the client
reimburses RE Services for the actual amount
spent on these items, often with a markup to
cover administrative costs.
Billing Process
The billing process for RE Services tracks the
hours worked by personnel and documents
all reimbursable expenses incurred during the
project. At monthly intervals, RE Services will
compile this information into an invoice for the
client. The invoice will detail the hours worked
by each personnel member, their respective
billing rates, and a breakdown of reimbursable
expenses. The total amount billed will be the
sum of the personnel hours multiplied by
their hourly rates, plus the total amount of
reimbursable expenses. Principal-in-Charge
Vinay Reddy, PE, will attach a burn rate sheet
detailing the remaining budget as it relates to
weekly statement of working days. If a budget
overrun (or underrun) is forecasted, Vinay
proactively works with the client to explain the
reasons for variance, and provide solutions to
address a budget amendment, if desired.
Payment Terms
Once the invoice is approved by the
client, a specified period such as 30 days
is provided, to make payment. RE Services
includes specific payment terms outlined in
our contract with the client, including late
payment penalties for overdue invoices. Vinay
follows up periodically with the client to
ensure no late payment is incurred.
As an added value to the City of Poway, RE Services' rates include vehicles and mileage, and assigns 0% markup on subconsultant tasks. RE Services offers cost-effective construction management solutions without compromising on quality. Our commitment to delivering high value ensures that your project receives top-tier expertise without cost overruns.
Overall, this standard method of compensation ensures that RE Services is fairly compensated for the services we provide, including both the time and expertise of our personnel and any direct expenses incurred during the project.
RE SERVICES 25 O~ 29ritnr.11:>~1U,W,t,u1u.1.,tr<.t&lf1Jt!tm~v..1 May 21, 2024, Item #5
EXHIBIT "8"
Cal Gov Code§ 7522.56
Deering's California Codes are current through all 1016 chapters of the 2018 Regular Session and the November 6, 2018 Ballot Measures.
Deering's California Codes Annotated> GOVERNMENT CODE> Title 1 General> Division 7 Miscellaneous > Chapter 21 Public Pension and Retirement Plans > Article 4 California Public Employees' Pension Reform Act of 2013
§ 7522.56. Provisions applicable to person receiving pension benefit from public retirement system; Section supersedes conflicting provisions (a)This section shall apply to any person who is receiving a pension benefit from a public retirement system and shall supersede any other provision in conflict with this section. (b) A retired person shall not serve, be employed by, or be employed through a contract directly by, a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, except as permitted by this section.
(c) A person who retires from a public employer may serve without reinstatement from retirement or loss or interruption of benefits provided by the retirement system upon appointment by the appointing power of a public employer either during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration.
(d)Appointments of the person authorized under this section shall not exceed a total for all employers in that public retirement system of 960 hours or other equivalent limit, in a calendar or fiscal year, depending on the administrator of the system. The rate of pay for the employment shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties, divided by 173.333 to equal an hourly rate. A retired person whose employment without reinstatement is authorized by this section shall acquire no service credit or retirement rights under this section with respect to the employment unless he or she reinstates from retirement. (e)
26 of 29
(!)Notwithstanding subdivision (c), any retired person shall not be eligible to serve or be employed by a public employer if, during the 12-month period prior to an appointment described in this section, the retired person received any unemployment insurance compensation arising out of prior employment subject to this section with May 21, 2024, Item #5
Cal
Gov
Code
§ 7522.56
a public
employer.
A
retiree
shall
certify
in
writing
to
the
employer
upon
accepting
an
offer
of
employment
that
he
or
she
is
in
compliance
with this
requirement.
(2)A
retired
person
who accepts
an
appointment
after
receiving
unemployment
insurance
compensation
as
described
in
this
subdivision
shall
terminate
that
employment
on
the
last
day
of
the
current
pay
period
and
shall
not
be
eligible
for
reappointment
subject
to
this
section
for
a
period
of
12 months
following
the
last
day
of
employment.
(t)A
retired
person
shall
not
be
eligible
to
be
employed
pursuant
to
this
section
for
a
period
of
180
days
following
the
date
of
retirement
unless
he
or
she
meets
one
of
the
following
conditions:
27 of
29 (l)The
employer
certifies
the
nature
of
the
employment
and
that
the
appointment
is
necessary
to
fill
a critically
needed
position
before
180
days
have
passed
and
the
appointment
has
been
approved
by
the
governing
body
of
the
employer
in
a public
meeting.
The
appointment
may
not
be
placed
on
a consent
calendar
.
(2)
(A)Except
as
otherwise
provided
in
this
paragraph
, for
state
employees,
the
state
employer
certifies
the
nature
of
the
employment
and
that
the
appointment
is
necessary
to
fill
a critically
needed
state
employment
position
before
180
days
have
passed
and
the
appointment
has
been
approved
by
the
Department
of
Human
Resources.
The
department
ma
y establish
a process
to
delegate
appointing
authority
to
individual
state
agencies
, but
shall
audit
the
process
to
determine
if
abuses
of
the
system
occur.
If
necessary,
the
department
may
assume
an
agency's
appointing
authority
for
retired
workers
and
may
charge
the
department
an
appropriate
amount
for
administering
that
authority.
(B)For
legislative
employees,
the
Senate
Committee
on
Rules
or
the
Assembly
Rules
Committee
certifies
the
nature
of
the
employment
and
that
the
appointment
is
necessary
to
fill
a
critically
needed
position
before
180
days
have
passed
and
approves
the
appointment
in
a
public
meeting.
The
appointment
may
not
be
placed
on
a consent
calendar
.
(C)For
employees
of
the
California
State
University
,
the
Trustees
of
the
California
State
University
certifies
the
nature
of
the
employment
and
that
the
appointment
is
necessary
to
fill
a critically
needed
position
before
180
days
have
passed
and
approves
the
appointment
in
a public
meeting.
The
appointment
may
not
be
placed
on
a consent
calendar
.
(3)The
retiree
is
eligible
to
participate
in
the
Faculty
Early
Retirement
Program
pursuant
to
a
collective
bargaining
agreement
with
the
California
State
University
that
existed
prior
to
January
1,
2013
,
or
has
been
included
in
subsequent
agreements.
2 May 21, 2024, Item #5
Cal
Gov
Code
§ 7522.56
(4)The
retiree
is
a public
safety
officer
or
firefighter
hired
to
perform
a function
or
functions
regularly
performed
by
a public
safety
officer
or
firefighter.
(g)A
retired
person
who
accepted
a
retirement
incentive
upon
retirement
shall
not
be
eligible
to
be
employed
pursuant
to
this
section
for
a period
of
180
days
following
the
date
of
retirement
and
subdivision
(f)
shall
not
apply.
(h)This
section
shall
not
apply
to
a
person
who
is
retired
from
the
State
Teachers'
Retirement
System,
and
who
is
subject
to
Section
24214.
24214.5
or
26812
of
the
Education
Code
.
(i)This
section
shall
not
apply
to
(1)
a subordinate
judicial
officer
whose
position,
upon
retirement,
is
converted
to
a judgeship
pursuant
to
Section
69615,
and
he
or
she
returns
to
work
in
the
converted
position,
and
the
employer
is
a trial
court,
or
(2)
a retiree
of
the
Judges'
Retirement
System
or
the
Judges'
Retirement
System
II
who
is
assigned
to
serve
in
a
court
pursuant
to
Section
68543.5.
History Added
Stats
2012
ch
296
§
15 (AB
340),
effective
January
1,
2013.
Amended
Stats
2013
ch
528
§ II
(SB
13),
effective
October
4,
2013
(ch
528
prevails);
ch
76 § 75
(AB
383),
effective
January
1,
2013;
Stats
2014
ch
238
§ 1 (AB
2476),
effective
January
1,
2015.
Annotations Notes
Amendments: Note-
Amendments: 2013
Amendment:
Substituted
(1)
"have
passed"
for
"has
passed"
in
the
first
sentence
of
subds
(f)(l)
and
(f)(2);
(2)
"or
firefighter
hired
to
perform
a
function
or
functions
regularly
performed
by
a
public
safety
officer
or
firefighter"
for
"of
firefighter"
in
subd
(f)(
4);
and
(3)
"Judges'
Retirement
System"
for
"Judges'
Retirement
System
I"
in
subd
(i).
28 of
29 3
May 21, 2024, Item #5
-,,roo
s5o
_. ,o
--
·1.700
3,400
29 of
29 5,100
Feet
ATTACHMENT
C
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7 OVERLAY
PROJECT
MAP
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT CityofPoway
May 21, 2024
Honorable Mayor and Members of the City Council
Robert Manis, Director of Development Services {!.)A
Alex Ubaldo, P.E., Principal Civil Engineer �
858-668-4602 or [email protected] �
CITY COUNCIL
Award of Contract to DBX, Inc., for the Poway Road Safety Improvements Project, Bid No. 24-003, and Determination the Project is Categorically Exempt from the California Environmental Quality Act.
This action will award a construction contract to DBX, Inc., for the Poway Road Safety Improvements project. The project will provide safety and operational improvements at various locations along Poway Road between Oak Knoll Road and Garden Road.
Recommended Action:
It is recommended the City Council:
1) Award the contract for the Poway Road Safety Improvements project to DBX, Inc., in the amount of $586,739.00 and authorize the City Manager to execute the contract (Attachment A); 2) Approve an increase in revenue and expenditure appropriations in the amount of $66,743.00 funded by a Highway Safety Improvement Program grant, to cover the costs of construction for the Poway Road Safety Improvements project (ST018);
3) Appropriate additional funds in the amount of $75,000.00 from carryover TransNet Fund (2230), available fund balance to the Poway Road Safety Improvements project (ST018) for the required local match to the grant; and
4) Make a determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA).
Discussion:
In November 2020, the City applied for and received grant funding in the amount of $589,980.00 from the Highway Safety Improvement Program (HSIP) for the Poway Road Safety Improvements project to improve safety and operational improvements at various locations along Poway Road between Oak Knoll Road to Garden Road. The project will modify four existing concrete medians to restrict dangerous left turn movements from side streets into Poway Road, upgrade signal controller cabinets, install video detection systems at five traffic signal intersections, and upgrade intersection regulatory signs. The attached map (Attachment B) shows the project boundaries included in the project. 1 of 14
May 21, 2024, Item #6
May 21, 2024, Item #6
Bids were opened on February 28, 2024. The following 3 bids were received, ranging as follows:
Company Total Bid Amount
DBX, Inc. $586,739.00
Tri Group Construction and Development, Inc. $598,561.00 HMS Construction, Inc. $650,000.00
The lowest responsive bidder, submitted by DBX, Inc., is recommended for the award of this contract in the amount of $586,739.00.
Environmental Review:
The proposed project is Categorically Exempt from CEQA as a Class 1 Categorical Exemption, pursuant to Section 15301 (c) of the CEQA Guidelines, in that the project involves minor alteration to existing public facilities. As a requirement of the grant, a notice of exemption was filed with the County of San Diego on October 11, 2023.
Fiscal Impact:
The project is primarily funded by an HSIP grant, which is administered by the California Department of Transportation (Caltrans). Funds totaling $604,100.00 are available in the Poway Road Safety Improvements (ST018) project, $589,980.00 of which are HSIP grant funds. Approximately $74,279.00 of the grant funds has been spent on the design contract for the project. In March 2024, staff requested and received approval from Caltrans for an additional $66,743.00 in grant funds to cover the shortfall for the construction contract (Attachment C). The total grant amount eligible for reimbursement to the City is now $656,723.00. Staff is also recommending an additional appropriation in the amount of $75,000.00 funded by carryover TransNet funds, which will be used as the required local match to the grant. With the recommended appropriation, there will be sufficient funds to cover the cost of this project.
Public Notification:
None.
Attachments:
A. Construction Contract
B. Location Map
C. Additional Fund Allocation Letters
Reviewed/Approved By:
Assistant City Manager
2 of 14
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Chri Ha
City Manager
May 21, 2024, Item #6
SECTION
8 CONSTRUCTION
CONTRACT
CITY
OF
POWAY
POWAY
ROAD
SAFETY
IMPROVEMENTS
This
Contract
made
and
entered
into
this
22nd
day
of
May,
2024,
by
and
between
City
of
Poway,
a
municipal
corporation
of
the
State
of
California,
hereinafter
referred
to
as
"City"
and
DBX,
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:
3 of
14 This
project
includes
the
construction
of
pin-on
medians,
demolition
and
reconstruction
of
portions
of
existing
medians,
signing
and
striping
improvements,
traffic
signal
controller
replacement,
installation
of
dilemma
zone
detection
utilizing
hybrid
video
detection,
removal
of
existing
type
336
traffic
signal
cabinet,
and
installation
of
type
332L
traffic
signal
controller
cabinet
at
various
driveways
and
traffic
signals
on
Poway
Road.
ATTACHMENT
A
May 21, 2024, Item #6
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, 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 $586,739.00 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 twenty-five (25) 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) 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. 4 of 14
May 21, 2024, Item #6
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 of 5 of 14
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.
May 21, 2024, Item #6
6 of 14
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.
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 May 21, 2024, Item #6
16. 17.
7 of 14
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.
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.
a. Contractor shall defend, indemnify and hold harmless the City, its officers, 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.
May 21, 2024, Item #6
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 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.
8 of 14
May 21, 2024, Item #6
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 with 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. 9 of 14
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 take, 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 May 21, 2024, Item #6
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)
10 of 14
May 21, 2024, Item #6
IN WITNESS WHEREOF, the said Contractor and the Director of Public Works, City Manager Mayor and City Clerk of the City have caused the names of said parties to be affixed hereto, the day and year first above written.
Contractor's Name:
DBX Inc.
Print Name of Construction Company
By: -------------
Signature
James C. Perry
Print Name
Contractor information:
Address for Notices and Payments
42024 Avenida Alvarado, Suite A
Temecula, CA 92590
Telephone Number: 951-296-9909
Email: [email protected]
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
Alan Fenstermacher, City Attorney
11 of 14
CITY OF POWAY
a Municipal Corporation
Chris Hazeltine, City Manager
May 21, 2024, Item #6
ATTACHMENT B
'------
Highland Valley Rd
-_r!__
i1 rn
~
----
~
Figure A
Vicinity Map
May 21, 2024, Item #6
STATE OF CALIFORNIA-CALIFORNIA STATE TRANSPORTATION AGENCY
DEPARTMENT OF TRANSPORTATION
Division of Local Assistance
1120 N STREET
P.O. BOX 942874, MS# 1
Sacramento, CA 94274-0001
TTY 711
March 29, 2024
Mr. Eric Heidemann
Director of Public Works
City of Poway
13325 Civic Center Drive
Poway, CA 92064
Attn: Mr. Alex Ubaldo
Dear Mr. Heidemann:
GAVIN NEWSOM, Governor
File : 11-SD-0-PWY
HSIPSL-5428(015)
Various locations along Poway
Road between Oak Knoll Road
and Garden Road.
Your letter dated March 12, 2024 requested an additional allocation of State funds from the Highway Safety Improvement Program (HSIP) project (project location: Various locations along Poway Road between Oak Knoll Road and Garden Road.).
The State hereby makes the additional allocation in the amount of $21,831.00 of State funds for Preliminary Engineering phase of this project effective March 14, 2022. You may now proceed with the Preliminary Engineering phase of the project.
Any work for the Preliminary Engineering phase that has been approved for funding and is performed after this date will be eligible for reimbursement. Please refer to the Finance Letter for the complete approved funding of all phases for this project.
All projects require a Master Agreement and Program Supplement Agreement to be in place prior to the payment of project invoices. If one has not already been executed, this office will soon send you a Program Supplement Agreement and Master Agreement for execution. Please do not submit invoices for this project until the agreements are fully executed by both you and the State.
Invoices are to be submitted at a minimum of every six (6) months in order to remain active.
If you have any questions, please contact your District Local Assistance Engineer.
Sincerely,
f ROBERT NGUYEN, Chief
or Office of Project Management Oversight -South
Division of Local Assistance
c: DLA AE Project Files
(11) DLAE -Brian Ott
Local Program Accounting
HQ HSIP Manager -Richard Ke
13 of 14 ATTACHMENT C
May 21, 2024, Item #6
STATE OF CALIFORNIA-CALIFORNIA STATE TRANSPORTATION AGENCY
DEPARTMENT OF TRANSPORTATION
Division of Local Assistance
1120 N STREET
P.O. BOX 942874, MS# 1
Sacramento, CA 94274-0001
TTY 711
March 29, 2024
Mr. Eric Heidemann
Director of Public Works
City of Poway
13325 Civic Center Drive
Poway, CA 92064
Attn: Mr. Alex Ubaldo
Dear Mr. Heidemann:
GAVIN NEWSOM, Governor
File : 11-SD-0-PWY
HSIPSL-5428(015)
Various locations along Poway
Road between Oak Knoll Road
and Garden Road.
Your letter dated March 12, 2024 requested an additional allocation of State funds from the Highway Safety Improvement Program (HSIP) project (project location: Various locations along Poway Road between Oak Knoll Road and Garden Road.).
The State hereby makes an additional allocation in the amount of $44,912.00 of State funds for Construction phase of this project effective January 4, 2024. You may now proceed with the Construction phase of the project. Any work for the Construction phase that has been approved for funding and is performed after this date will be eligible for reimbursement.
Please refer to the Finance Letter for the complete approved funding of all phases for this project.
All projects require a Master Agreement and Program Supplement Agreement to be in place prior to the payment of project invoices. If one has not already been executed, this office will soon send you a Program Supplement Agreement and Master Agreement for execution. Please do not submit invoices for this project until the agreements are fully executed by both you and the State.
Invoices are to be submitted at a minimum of every six (6) months in order to remain active.
If you have any questions, please contact your District Local Assistance Engineer.
Sincerely,
for ROBERT NGUYEN, Chief
Office of Project Management Oversight -South
Division of Local Assistance
c: DLA AE Project Files
(11) DLAE -Brian Ott
Local Program Accounting
HQ HSIP Manager -Richard Ke
14 of 14
May 21, 2024, Item #7
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA RE PO RT City of Poway
May 21, 2024
Honorable Chairman and Members of the Housing Authority Robert Manis, Director of Development Services lv'f
Marie Sanders, Senior Management Analyst A C..
(858) 668-4637 or [email protected] 1\/::5
CITY COUNCIL
Poway Housing Successor Annual Report For Fiscal Year 2022-23 Pursuant to California Health and Safety Code Sections 34176 and 34176.1 (f) (Dissolution Law), the Poway Housing Authority, in its capacity as Housing Successor to the dissolved Poway Redevelopment Agency, must prepare an annual report detailing its activities during each fiscal year. The Poway Housing Successor Annual Report for Fiscal Year 2022-23 (Attachment A), and the Poway Housing Authority Basic Financial Statements and Independent Auditors Report for the year ending June 30, 2023 (Attachment B), are included with this agenda report for review by the Poway Housing Authority Board.
Recommended Action:
It is recommended the Poway Housing Authority Board receive and file this report.
Discussion:
Part 1.85, Division 24 of the California Health and Safety Code, particularly Sections 34176 and 34176.1 (f), require the Housing Successor provide an annual report of the Successor's activities during the prior fiscal year. The purpose of the report is to provide the governing body of the Housing Successor with an annual report on the housing assets and activities of the Housing Successor. The report is to be provided to the Poway Housing Authority Board, along with an independent financial audit of the Low-and Moderate-Income Housing Asset Fund (LMIHAF) within six months after the end of each fiscal year. Due to Poway's annual timing for completion of the Housing Authority audit, it is not possible for this report to be completed within the six-month period. However, there is no penalty for delayed submission of the report.
The Poway Housing Successor Annual Report for Fiscal Year 2022-23 indicates a balance in the LMIHAF of $4,599,600. A notable expenditure this fiscal year was the final payment of $470,000 for a developer loan for the Apollo Apartments affordable housing project at Poway Commons. LMIHAF monies may be utilized to acquire, rehabilitate, ensure long term affordability covenants for, or preserve lower income housing (affordable to households earning 80 percent of median income or less). Additionally, funds may be used for program administration and monitoring as well as for homelessness prevention and rapid rehousing services. The source of funding for the LMIHAF is derived from the 1 of 34
May 21, 2024, Item #7
previous balance of Redevelopment financing, program income from operations, repayments of loans, and land sales.
Environmental Review:
This item is not subject to California Environmental Quality Act (CEQA) review.
Fiscal Impact:
There is no fiscal impact associated with this item.
Public Notification:
None.
Attachments:
A. Poway Housing Successor Annual Report for Fiscal Year 2022-23 B. Poway Housing Authority Basic Financial Statements and Independent Auditors Report for the year ended June 30, 2023
Reviewed/Approved By:
Assistant City Manager
2 of34
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
gJ;;,
City Manager
May 21, 2024, Item #7
POWAY HOUSING SUCCESSOR ANNUAL REPORT
REGARDING THE LOW-AND MODERATE-INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2022-2023
PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f)
FOR THE POWAY HOUSING AUTHORITY
This Housing Successor Annual Report (Report) regarding the Low-and Moderate-Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1 (f) and is dated as of May 21, 2024. This Report sets forth certain details of the Poway Housing Authority, in its capacity as Housing Successor to the dissolved Poway Redevelopment Agency, activities during Fiscal Year 2022-23 (Fiscal Year). The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (Dissolution Law).
The following Report is based upon information prepared by Housing Successor staff and information contained within the Poway Housing Authority Basic Financial Statements and Independent Auditor's Report for Fiscal Year 2022-23 as prepared by Davis Farr, LLP, which the Audit is separate from this annual summary report; further, this report conforms with and is organized into sections I. through XII., inclusive, pursuant to the Dissolution Law:
I. Amount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Any amounts deposited for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited.
II. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited.
Ill. Description of Expenditures from LMIHAF: This section provides a categorized description of the expenditures made from the LMIHAF during the Fiscal Year.
IV. Statutory Value of Assets Owned by Housing Successor: This section provides the statutory value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts.
V. Description of Transfers: This section describes transfers pursuant to Health and Safety Code Section 34176.1 (c)(2), if any, to another housing successor agency made in previous Fiscal Year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit priority projects, permanent supportive housing, housing for agricultural employees or special needs housing.
POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2022 -2023 3 of34
ATTACHMENT A
May 21, 2024, Item #7
VI.
Project
Descriptions:
This
section
describes
any
project
for
which
the
Housing
Successor
receives
or
holds
property
tax
revenue
pursuant
to
the
ROPS
and
the
status
of
that
project.
VII.
Status
of
Compliance
with
Section
33334.16:
This
sect
ion
provides
a
status
update
on
compliance
with
Section
33334.16
for
interests
in
real
property
acquired
by
the
former
redevelopment
agency
prior
to
February
1,
2012
. For
interests
in
real
property
acquired
on
or
after
February
1,
2012
, the
Housing
Successor
must
provide
a status
update
on
the
project.
The
Poway
Housing
Successor
has
acquired
two
properties
since
February
1,
2012
.
VIII.
Description
of
Outstanding
Obligations
under
Section
33413:
This
section
describes
the
outstanding
inclusionary and
replacement
housing
obligations,
if any
, under
Section
33413
that
remained
outstanding
prior
to
dissolution
of
the
former
redevelopment
agency
as
of
February
1,
2012
, along
with
the
Housing
Successor's
progress
in
meeting
those
prior
obligations
, if
any,
of
the
former
redevelopment
agency
and
how
the
Housing
Successor's
plans
to
meet
unmet
obligations,
if any
.
IX.
Income
Test:
This
section
provides
the
information
required
by
Section
34176
.1 (a)(3)(B),
or
a
description
of
expenditures
by
income
restriction
for
five-year
period,
with
the
time
period
beginning
January
1, 2014
, and
whether
the
statutory
thresholds
have
been
met.
X.
Senior
Housing
Test:
Th
is
section
provides
the
percentage
of
units
of
deed-restricted
rental
housing
restricted
to
seniors
and
assisted
individually
or
jointly
by
the
Housing
Successor
,
its
former
redevelopment
Agency,
and
its
host
jur
isdiction
within
the
previous
10 years
in
relation
to
the
aggregate
number
of
units
of
deed-restricted
rental
housing
assisted
individually
or
jointly
by
the
Housing
Successor,
its
former
Redevelopment
Agency
and
its
host
jurisdiction
within
the
same
time
period.
For
this
Report,
the
ten-year
period
reviewed
is
January
1, 2013
to
December
31 ,
2023
.
XI.
Excess
Surplus
Test:
This
section
provides
the
amount of
excess
surplus
in
the
LMIHAF
,
if any,
and
the
length
of
time
that
the
Housing
Successor
has
had
excess
surplus
, and
the
Housing
Successor
's plan
for
eliminating
the
excess
surplus.
XII.
Inventory
of
Homeownership
Units:
This
section
provides
a
summary
of
covenanted
homeownership
units
assisted
by
the
former
redevelopment
agency
or
the
housing
successor
that
are
subject
to
covenants
or
restrictions
or
to
an
adopted
program
that
protects
the
former
redevelopment
agency
's investment
of
mon
ies
from
the
Low-
and
Moderate
-Income
Housing
Fund
pursuant
to
subdivision
(f)
of
Section
33334.3
. Inventory
shall
include
the
following:
a)
the
number
of
those
units;
b)
in
the
first
report
pursuant
to
this
subdivision,
the
number
of
units
lost
to
the
portfolio
after
February
1,
2012,
and
the
reason
or
reasons
for
those
losses
. For
all
subsequent
reports,
the
number
of
the
units
lost
to
the
portfolio
in
the
last
fiscal
year
and
the
reason
for
those
losses;
c)
any
funds
returned
to
the
housing
successor
as
part
of
an
adopted
program
that
protects
the
former
redevelopment
agency's
investment
of
moneys
from
the
Low-
and
Moderate-Income
Housing
Fund;
and
d)
whether
the
housing
successor
has
contracted
with
any
outside
entity
for
the
management
of
the
units
and,
if so,
the
identity
of
the
entity
.
4 of34
PO
WA
Y
HOU
SING
SU
CCE
SS
OR
ANNU
AL REP
OR
T
FISCA
L YEAR
20 22
-2023
May 21, 2024, Item #7
I. AMOUNT DEPOSITED INTO LMIHAF
A total of $41,300 was deposited into the LMIHAF during the Fiscal Year.
II. ENDING BALANCE OF LMIHAF
At the close of the Fiscal Year, the ending balance in the LMIHAF was $4,599,600 none of which is being held for items listed on the ROPS. This includes $5,111,224 in cash and investments, and $362,965 in housing loans receivable, less $44,783 in liabilities. The $362,965 is due from the Successor Agency and represents the Housing Authority's 20% of the former Redevelopment Agency's loan balance, and repayment is subject to approval by the California Department of Finance.
Ill. DESCRIPTION OF EXPENDITURES FROM LMIHAF
The following is a description of expenditures from the LMIHAF by category:
Fiscal Year 2022-23
Monitoring & Administration Expenditures
'
$18,875
Homeless Prevention & Rapid Rehousing Expenditures $0
Housing Development Expenditures ' ,.
$563,995 -
Total LMIHAF Expenditures in Fiscal Year $582,870
IV. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR Under the Dissolution Law and for purposes of this Report, the "statutory value of real property" means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181 (f), and the purchase price of properties purchased by the Housing Successor. Further, the value of loans and grants receivable are included in these reported assets held in the LMIHAF. The following provides the statutory value of assets owned by the Housing Successor:
1 Fiscal Year 2022-23
Cash and Cash Equivalents '
Accounts Receivable $12,390
Statutory Value of Real Property Owned by Housing Authority . $13,917,824 Value of Loans and Grants Receivable $362,965
Total Value of. Housing Successor Assets $19,404,423
V. DESCRIPTION OF TRANSFERS
The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c)(2) during the Fiscal Year.
5 of 34 POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2022 -2023 May 21, 2024, Item #7
VI. PROJECT DESCRIPTIONS
The Housing Successor did not receive and did not hold property tax revenue pursuant to the ROPS.
VII. STATUS OF COMPLIANCE WITH SECTION 33334.16
Section 34176.1 provides that Section 33334.16 does not apply to interests in real property acquired by the Housing Successor on or after February 1, 2012.
With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, and transferred to the Successor Agency pursuant to Health and Safety Code Section 34176, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance (DOF) approved the property as a housing asset on the Housing Asset Transfer Form; thus, as to real property acquired by the former redevelopment agency now held by the Housing Successor, the Housing Successor must initiate activities consistent with the development of the real property for the purpose for which it was acquired within five years of the date the DOF approved such property as a housing asset.
Poway's Housing Assets Transfer Form was approved by the DOF on August 31, 2012.
The following provides a status update on the real property housing assets that were acquired by the former redevelopment agency prior to February 1, 2012, and transferred to the Housing Successor on February 1, 2012, and compliance with the five-year period to commence development activities.
APN Street Address Date of Size Status Purchase
27546061 12674 Monte Vista Rd 02/22/2000 2.06 Acres The Housing Authority has successfully negotiated an
I• affordable housing agreement
[i
and ground lease with a
1, Ii developer to build a 60-unit
affordable rental community.
Consideration of approval by the
Housing Authority Board/City is
scheduled for 6/4/2024.
32119028 Twin Peaks Rd 11/03/2004 2.15 Acres Vacant land. '31423026 13424 Scots Way 08/27/2002 0.70 Acres Vacant land. Due to access issues, development options are
still actively being evaluated.
31421418 14048 Sycamore Ave 06/30/2005 0.32 Acres Vacant land. Development options continue to be
evaluated.
31710151 Floodway adjacent to 08/27/2004 2.15 Acres Vacant land. Property located in & 52 the Solara Affordable floodway, cannot be developed.
Housina Develooment
6 of34 POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2022 -2023 May 21, 2024, Item #7
The following provides a status update on real property housing assets that were acquired by the Housing Successor after February 1, 2012.
APN Street Address P~:~~~:e Size Status
31723222 12207 & 12237 Old
& 36 Pomerado Road
01/9/2018 1.07 Acres Future affordable housing site.
Funds for demolition of the site
are budgeted, awaiting
Housing Authority Board
approval.
VIII. DESCRIPTION OF OUTSTANDING OBLIGATIONS PURSUANT TO SECTION 33413 Replacement Housing: According to the 2010-2014 Implementation Plan for the former redevelopment agency, no Section 33413(a) replacement housing obligations were transferred to the Housing Successor. Furthermore, the Housing Successor has not caused the demolition of any units and no new replacement housing obligations have been created. lnclusionary/Production Housing. According to the 2010-2014 Implementation Plan for the former redevelopment agency, no Section 33413(b) inclusionary/production housing obligations were transferred to the Housing Successor.
The former redevelopment agency's Implementation Plans are posted on the City's website at http://poway.org/207 /Affordable-Housing.
IX. EXTREMELY LOW-INCOME TEST
This section provides the information required by Section 34176.1 (a)(3)(8), or a description of expenditures by income restriction for five-year period, with the time period beginning January 1, 2014 and whether the statutory thresholds have been met.
Section 34176.1 (a)(3)(8) requires that the Housing Successor must require at least 30% of the LMIHAF, after expenditures allowed pursuant to Code section 34176.1(a)(1) and (2,) to be expended for development of housing affordable to, and occupied by, households earning 30% or less of the AMI. If the Housing Successor fails to comply with the extremely low income requirement in any five year report beginning with the five year report to be issued in 2019, then the Housing Successor shall ensure that at least 50% of these remaining LM I HAF funds expended in each fiscal year following the latest fiscal year following the five year report are expended for the development of rental housing affordable to, and occupied by, households earning 30% or less of the area AMI until the housing successor demonstrates compliance with the extremely low-income requirement in an annual report. This information is not required to be reported until 2024, for the 2020 -2024 reporting period.
X. SENIOR HOUSING TEST
The Housing Successor is required to calculate the percentage of units of deed-restricted rental housing restricted to seniors and assisted by the Housing Successor, the former redevelopment 7 of 34 POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2022 -2023 May 21, 2024, Item #7
agency and/or the City within the previous 1 O years in relation to the aggregate number of units of deed-restricted rental housing assisted by the Housing Successor, the former redevelopment agency, and/or City within the same time period. If this percentage exceeds 50%, then the Housing Successor cannot expend future funds in the LMIHAF to assist additional senior housing units until the Housing Successor or City assists and construction has commenced on a number of restricted rental units that is equal to 50% of the total amount of deed-restricted rental units. The following provides the Housing Successor's Senior Housing Test for the 10-year period of January 1, 2012 through December 31, 2023:
Housing Test 2013-2023
# of Assisted Senior Rental Units 43
# of Total Assisted Rental Units 246
Senior Housing Percentage 17%
XI. EXCESS SURPLUS TEST
Excess Surplus is defined in Section 34176.1 (d) as an unencumbered amount in the LMIHAF account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the LMIHAF account during the Housing Successor's preceding four Fiscal Years, whichever is greater.
The LMIHAF was created on February 1, 2012. The current uncommitted balance of $4,599,600 on deposit in the LMIHAF does not exceed the sum of the annual deposits made in the preceding four fiscal years of $5,136,075.
The following provides the Excess Surplus test for the preceding four Fiscal Years:
FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 Total FY19-22 Beginning Balance $1,586,131 $4,438,922 $3,434,907 $5,192,659 Add: Deposits $2,884,440 $368,684 $1,841,652 $41,300 $5,136,075 (Less) Expenditures $(31,649) $(1,372,699) $(83,900) $(582,870) Ending Balance $4,438,922 $3,343,907 $5,192,659 $4,651,088 (Less) Commitments $(81,783) $(37,598) $(39,850) $ (51,488) Uncommitted Balance $4,357,139 $3,397,309 $5,152,809 $4,599,600 XII. HOMEOWNERSHIP UNITS
The Housing Successor is to provide an inventory of homeownership units assisted by the former redevelopment agency or the Housing Successor that are subject to covenants or restrictions or to an adopted program that protects the former redevelopment agency's investment of monies from the LMIHAF pursuant to Section 33334.3(f). The inventory for the Housing Successor is as follows:
Restricted Homeownership Units as of 12/31/2023
8 of34 POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2022 -2023 May 21, 2024, Item #7
Add: Restricted Homeowner Units Added by Housing Successor (January 0 1, 2023 through December 31, 2023) (Less): Restricted Homeowner Units Lost to Portfolio (January 1, 2023 0 through December 31, 2023) Additionally, no inventory was lost in 2023. A total of $0 was returned to the Housing Successor as a result of the restrictions adopted to protect the former redevelopment agency's investment in LMIHAF monies and the Housing Successor did not contract with an outside entity for the management of the ownership portfolio.
9 of 34 POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2022 -2023 May 21, 2024, Item #7
10 of
34 POWAY
HOUSING
AUTHORITY
(A
Component
Unit
of
the
City
of
Poway)
Financial
Statements
YearEndedJune30,2023
ATTACHMENT
B
May 21, 2024, Item #7
POWAY HOUSING AUTHORITY
Table of Contents
Year Ended June 30, 2023
Independent Auditor's Report ......................................................................................................... 1 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ....................................................................................................... 6 Statement of Activities ............................................................................................................ 7 Fund Financial Statements
Balance Sheet .......................................................................................................................... 8 Reconciliation of the Balance Sheet of the Governmental Fund to the Statement of Net Position ............................................................................................ 9 Statement of Revenues, Expenditures and Changes in Fund Balance .................................... 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the Governmental Fund to the Statement of Activities ................ 11 Notes to the Basic Financial Statements ......................................................................................... 12 Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule ............................................................................................ 20 Note to Required Supplementary Information ....................................................................... 21 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................ 22 11 of 34
May 21, 2024, Item #7
Davis Farr
CERTIFIED PUBLIC ACCOUNTANTS
Davis Farr LLP
18201 Von Karman Avenue I Suite 1100 I Irvine, CA 92612 Main: 949.474.2020 I Fax: 949.263.5520
INDEPENDENT AUDITOR'S REPORT
Poway Housing Authority
City of Poway
Poway, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the governmental activities and the major fund of the Poway Housing Authority (the Authority), a component unit of the City of Poway, California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Authority as of June 30, 2023, and the respective changes in financial position the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of a Matter
As described more fully in Note 1, the basic financial statements present only the Authority and are not intended to present fairly the financial position and results of operations of the City of Poway, California in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements The Authority's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for one year after the date that the financial statements are issued.
12 of 34 1
May 21, 2024, Item #7
Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional om1ss1ons, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control.
Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Budgetary Comparison Schedule be presented to supplement the basic financial statements.
Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
13 of 34 2
May 21, 2024, Item #7
Management has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. Our opinion the basic financial statements is not affected by this missing information.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2023 on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance. 'Dau l.S~i:U'"r Llt°
Irvine, California
December 27, 2023
14 of 34 3
May 21, 2024, Item #7
This
page
intentionally
left
blank
15 of
34 4
May 21, 2024, Item #7
BASIC FINANCIAL STATEMENTS
16 of 34 5
May 21, 2024, Item #7
17 of 34
ASSETS
Poway Housing Authority
Statement of Net Position
June 30, 2023
Cash and investments (Note 2)
Accounts receivable
Due from other governments
Capital assets, nondepreciable (Note 3)
Total assets
LIABILITIES
Accounts payable
Unearned revenue
Total liabilities
NET POSITION
Investment in capital assets
Restricted for:
Housing
Total net position
$
$
See accompanying notes to the basic financial statements 6 5,111,224
12,390
362,965
13,917,824
19,404,403
30,047
14,736
44,783
13,917,824
5,441,796
19,359,620
May 21, 2024, Item #7
Functions/Programs
Governmental activities:
General government
Development services
Total governmental activities
Poway Housing Authority
Statement of Activities
Year Ended June 30, 2023
Program Revenues
Expenses
$ 18,875
563,995
$ 582,870
Operating
Charges Contributions
for and
Services Grants
General Revenues
Investment income
Other
Capital
Contributions
and
Grants
Total general revenues and transfers
Change in net position
Net position, beginning
Net position, ending
See accompanying notes to the basic financial statements 18 of 34 7
Net (Expense)
Revenue
and
Changes in
Net Position
(18,875)
(563,995)
(582,870)
64,818
339,446
404,264
(178,606)
$ 19,538,226
$ 19,359,620
May 21, 2024, Item #7
19 of 34
ASSETS
Cash and investments
Accounts receivable
Poway Housing Authority
Balance Sheet
Governmental Fund
June 30, 2023
Due from other governments
Total assets
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Unearned revenue
Total liabilities
FUND BALANCE
Restricted
Total fund balances
Total liabilities and fund balance
$
$
$
$
See accompanying notes to the basic financial statements 8 5,111,224
12,390
362,965
5,486,579
30,047
14,736
44,783
5,441,796
5,441,796
5,486,579
May 21, 2024, Item #7
Poway Housing Authority
Reconciliation of the Balance Sheet of the
Governmental Fund to the Statement of Net Position
June 30, 2023
Total Governmental Fund Balance
Amounts reported for governmental activities in the Statement of Net Position were different because:
Capital assets used in governmental activities were not current financial resources and, therefore, were not reported in the funds. $ 5,441,796
13,917,824
Net position of governmental activities $ 19,359,620
=======
See accompanying notes to the basic financial statements 20 of 34 9
May 21, 2024, Item #7
21 of 34
Poway Housing Authority
Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund
Year Ended June 30, 2023
REVENUES
Lease revenue $
Investment income
Reimbursement agreement fees
Total revenues
EXPENDITURES
Current:
General government
Development services
Total expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year $
See accompanying notes to the basic financial statements 10 64,818
339,446
404,264
18,875
563,995
582,870
(178,606)
5,620,402
5,441,796
May 21, 2024, Item #7
Poway Housing Authority
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balance of the Governmental Fund to the Statement of Activities
Vear Ended June 30, 2023
Net change in fund balance -total governmental fund
Change in net position of governmental activities
See accompanying notes to the basic financial statements 22 of 34 11
$ (178,606)
$ (178,606}
May 21, 2024, Item #7
POWAY HOUSING AUTHORITY
Notes to the Basic Financial Statements
Year Ended June 30, 2023
Note 1-Reporting Entity and Summary of Significant Accounting Policies The accounting policies of the Poway Housing Authority (Authority) conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles. The following is a summary of the Authority's significant accounting policies:
A. Description of Reporting Entity
On March 1, 2011, the City Council of the City of Poway declared a need for a housing authority in the City of Poway and adopted a resolution forming the Poway Housing Authority. The creation of the Housing Authority provides the City legal authority to continue monitoring ongoing rent and income compliance at affordable housing developments.
The former Poway Redevelopment Agency (Agency) and the Authority prepared a Cooperation Agreement to provide for implementation of certain low-and moderate-income housing projects and to make payments by the Agency to the Authority for the costs to the Authority for performing its obligations. The Agency was dissolved due to the passage of Assembly Bill Xl 26 which became effective on October 1, 2011. In accordance with Health and Safety code 34175(b), on February 1, 2012, all housing assets, liabilities and fund balance of the Agency were transferred to the Authority as the Successor Agency to the Poway Redevelopment Agency.
The Authority meets the criteria set forth in U.S. GAAP for inclusion as a blended component unit within the City reporting entity based on the City's oversight responsibility in selection of the governing board.
In addition, all of the Authority's activities are conducted within the geographic boundaries of the City.
Blended component units, although legally separate entities, are, in substance, part of the City's operations; therefore, data from these units are combined with data of the primary government in the financial statement presentation of the City. Only the funds of the Authority are included herein; therefore, these financial statements do not purport to represent the financial position or results of operations of the City.
B. Basis of Accounting/Measurement Focus
The accounts of the Authority are organized on the basis offunds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. 23 of34 12
May 21, 2024, Item #7
POWAY
HOUSING
AUTHORITY
Notes
to
the
Basic
Financial
Statements
Year
Ended
June
30,
2023
Note
1-
Reporting
Entity
and
Summary
of
Significant
Accounting
Policies
(Continued)
Government-Wide
Financial
Statements
The
Authority
's
Government-Wide
Financial
Statements
include
a
Statement
of
Net
Position
and
a
Statement
of
Activities
.
These
statements
present
summaries
of
governmental
activities
fo
r
the
Authority
.
These
basic
financial
statements
are
presented
on
an
"economic
resources"
measurement
focus
and
the
accrual
basis
of
accounting
. Accordingly,
all
of
the
Authority's
assets
and
liabilities,
including
capital
assets,
as
well
as
infrastructure
assets,
and
long-term
liabilities,
are
included
in
the
accompanying
Statement
of
Net
Position
. The
Statement
of
Activities
presents
changes
in
net
position.
Under
the
accrual
basis
of
accounting,
revenues
are
recognized
in
the
period
in
which
they
are
earned
while
expenses
are
recognized
in
the
period
in
which
the
liability
is
incurred
.
Certain
types
of
transactions
are
reported
as
program
revenues
for
the
Authority
in
three
categories:
•
Charges
for
services
•
Operating
grants
and
contributions
•
Capital
grants
and
contributions
Governmental
Fund
Financ
ial
Statements
Governmental
fund
financial
statements
include
a
Balance
Sheet
and
a
Statement
of
Revenues
,
Expenditures
and
Changes
in
Fund
Balances
for
the
governmental
fund
. An
accompanying
schedule
is
presented
to
reconcile
and
explain
the
differences
in
fund
balance
as
presented
in
these
statements
to
the
net
position
presented
in
the
Government-Wide
Financial
Statements.
All
governmental
funds
are
accounted
for
on
a
spending
or
"current
financial
resources"
measurement
focus
and
the
modified
accrual
basis
of
accounting.
Accordingly,
only
current
assets
and
current
liabilities
are
included
on
the
Balance
Sheet.
The
Statement
of
Revenues,
Expenditures
and
Changes
in
Fund
Balance
presents
increases
(revenues
and
other
financing
sources)
and
decreases
(expenditures
and
other
financing
uses)
in
net
current
assets.
Under
modified
accrual
basis
of
account
ing,
revenues
are
recognized
in
the
accounting
period
in
which
they
become
both
measurable
and
available
to
finance
expenditures
of
the
current
period.
Revenues
are
recorded
when
received
in
cash,
except
that
revenues
subject
to
accrual
(generally
60 days
after
year-end)
are
recognized
when
due.
The
primary
revenue
sources,
which
have
been
treated
as
susceptible
to
accrual
by
the
Authority,
are
property
tax,
and
intergovernmental
revenues.
Expenditures
are
recorded
in
the
accounting
period
in
which
the
related
fund
liability
is
incurred
.
24 of
34 13
May 21, 2024, Item #7
POWAY HOUSING AUTHORITY
Notes to the Basic Financial Statements
Year Ended June 30, 2023
Note 1-Reporting Entity and Summary of Significant Accounting Policies (Continued) Unearned revenues arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the balance sheet and revenue is recognized.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of generally accepted accounting principles.
Fund Accounting
The Authority uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. The Authority only has one governmental fund.
Governmental Fund
Housing Authority Fund -The Housing Authority Fund is the Authority's operating fund. It accounts for all financial resources of the Authority.
C. Cash and Investments
The Authority's cash and investment balances are included in the City's investment pool. The City pools cash resources from all City funds in order to facilitate the management of cash and achieve the goal of obtaining the highest yield with the greatest safety and least risk. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms. Investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.
The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund ("LAIF") which has invested a portion of the pool funds in structured notes and asset backed securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. LAIF investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these investments are subject to market risk and changes in interest rates.
Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the Authority and are presented as "Cash and investments" in the accompanying basic financial statements. 25 of 34 14
May 21, 2024, Item #7
POWAY
HOUSING
AUTHORITY
Notes
to
the
Basic
Financial
Statements
Year
Ended
June
30,
2023
Note
1-
Reporting
Entity
and
Summary
of
Significant
Accounting
Policies
{Continued)
D.
Capital
Assets
Capital
assets,
which
include
property,
plant,
equipment
and
infrastructure
assets
(e.g
., roads,
streets,
sidewalks,
medians
and
storm
drains)
are
reported
in
the
Government-Wide
Financial
Statements.
Authority
policy
has
set
the
capitalization
threshold
for
reporting
capital
assets
at
$5,000
. Capital
assets
are
valued
at
historical
cost
or
estimated
historical
cost
if
actual
historical
cost
was
not
available.
Donated
assets
are
valued
at
their
estimated
acquisition
value
on
the
date
donated
.
Depreciation
is
recorded
on
a straight-line
basis
over
estimated
useful
lives
of
the
assets
as
follows:
Buildings Building
improvements
Furniture
and
equipment
Infrastructure
10-50
years
10-100
years
5-20
years
20-50
years
E.
Deferred
Outflows/Inflows
of
Resources
In
addition
to
assets,
the
balance
sheet
will
sometimes
report
a separate
section
for
deferred
outflows
of
resources.
This
separate
financial
statement
element,
deferred
outflows
of
resources
,
represents
a
consumption
of
net
assets
that
applies
to
future
periods
and
so
will
not
be
recognized
as
an
outflow
of
resources
(expenditure)
until
then.
The
Authority
currently
has
no
items
that
qualify
for
reporting
in
this
category. In
addition
to
liabilities,
the
balance
sheet
will
sometimes
report
a
separate
section
for
deferred
inflows
of
resources.
This
separate
financial
element,
deferred
inflows
of
resources,
represents
an
acquisition
of
net
assets
that
applies
to
futu
re
periods
and
so
will
not
be
recognized
as
an
inflow
of
resources
(revenue)
until
that
time.
The
Authority
currently
has
no
items
that
qualify
for
reporting
in
this
category.
F.
Net
Position
Net
position
is
comprised
of
the
various
net
earnings
from
operating
income,
non
-operating
revenues
and
expenses.
Net
position
is
classified
in
the
following
categories:
Net
Investment
in
Capital
Assets
-
This
component
of
net
position
consists
of
capital
assets,
net
of
accumulated
depreciation,
reduced
by
the
outstanding
balances
of
debt
that
are
attributable
to
the
acquisition,
construction,
or
improvement
of
those
assets.
Restricted
-
This
component
of
net
position
consists
of
restricted
assets
and
deferred
outflows
of
resources
reduced
by
liabilities
and
deferred
inflows
of
resources
related
to
those
assets.
Unrestricted
-
This
component
of
net
position
is
the
amount
of
the
assets,
deferred
outflows
of
resources,
liabilities,
and
deferred
inflows
of
resources
that
are
not
included
in
the
determination
of
net
investment
in
capital
assets
or
the
restricted
component
of
net
position
.
When
an
expense
is
incurred
for
purposes
for
which
both
restricted
and
unrestricted
net
position
are
available,
the
Authority's
policy
is
to
apply
restricted
net
position
first.
26 of
34 15
May 21, 2024, Item #7
POWAY HOUSING AUTHORITY
Notes to the Basic Financial Statements
Year Ended June 30, 2023
Note 1-Reporting Entity and Summary of Significant Accounting Policies (Continued) G. Fund Balances
In the governmental fund financial statements, fund balances are classified in the following categories:
Nonspendable -Nonspendable fund balances are items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.
Restricted -Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributions, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.
Committed -Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body through council resolutions, etc., and that remain binding unless removed in the same manner. The Board of Commissioners is considered the highest authority for the Authority.
Assigned -Assigned fund balances encompass the portion of net fund resources reflecting the government's intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The Board of Commissioners has authorized the Executive Director for that purpose.
Unassigned -This category is for any remaining balances that are not classified as nonspendable, restricted, committed or assigned.
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the Authority's policy is to apply restricted fund balances first, then unrestricted fund balances as they are needed.
When expenditures are incurred for purposes where only unrestricted fund balances are available, the Authority uses the unrestricted resources in the following order: committed, assigned, and unassigned.
H. Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Note 2 -Cash and Investments
Equity in Cash and Investment Pool of the City of Poway The Authority does not have a separate bank account; however, the Authority's cash and investments are maintained in an investment pool managed by the City. The Authority is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The Authority has not adopted an investment policy separate from that of the City.
27 of 34 16
May 21, 2024, Item #7
POWAY HOUSING AUTHORITY
Notes to the Basic Financial Statements
Year Ended June 30, 2023
Note 2 -Cash and Investments (Continued)
The fair value of the Authority's investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority's pro-rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded on an original cost basis. At June 30, 2023, the Authority had a cash balance of $5,111,224.
Note 3 -Capital Assets
The summary of changes in capital assets for the year ended June 30, 2023 is as follows:
Capital assets, not being
depreciated:
Land
Total capital assets, not being
depreciated
Governmental activities -capital
assets
Note 4 -Related Party Transactions
Balance
June 30, 2022
$ 13,917,824
13,917,824
$ 13,917,824
Additions Deletions
Balance
June 30, 2023
13,917,824
13,917,824
13,917,824
In an effort to ensure that the objectives of Poway's Redevelopment Plan and the Poway Redevelopment Agency's (Agency) 5-Year Implementation Plan are fulfilled, on March 11, 2011, the Agency transferred all housing-related assets to the Authority through a Cooperation Agreement between the Agency and the Authority. Under the terms of this agreement, the Authority agreed to respectively carry out the projects and activities of the Agency in accordance with the objectives and purposes included in the Redevelopment and Implementation Plans. Projects included in the Cooperation Agreement between the Agency and the Authority further the goals of the Redevelopment Plan. It was initially anticipated that these projects would be funded based on available tax increment to be received through 2037, but because of the dissolution of the Agency under AB Xl 26, tax increment revenue has been eliminated, and therefore, no funding for these projects from that source is available.
Future project funding will come from the management of the Authority's assets and may include interest revenue, lease revenue, residual receipt revenue and the sale of assets.
Note 5 -Rehabilitation Loan Program
Housing Rehabilitation Loan Program
There are two types of housing rehabilitation loan. Forgivable rehabilitation loans are forgiven at a rate of 10% per year given all loan covenants are met. Non-forgivable loans are due upon the sale, transfer or foreclosure of the property. Due to the contingent nature of the repayment schedule of these loans, there is an allowance recorded at 100% of the outstanding balance. The balance of the non-forgivable rehabilitation loans at June 30, 2023 is $7,870.
28 of 34 17
May 21, 2024, Item #7
POWAY
HOUSING
AUTHORITY
Notes
to
the
Basic
Financial
Statements
Year
Ended
June
30,
2023
Note
5 -
Rehabilitation
Loan
Program
(Continued)
Affordable
Housing
Loans
These
loans
are
made
to
aid
in
the
purchase
of
affordable
housing
in
the
City
of
Poway.
They
are
for
a
45-year
term
with
interest
between
2 percent
and
3 percent
and
if there
is
a sale,
transfer
or
foreclosure
before
the
end
of
the
term
the
loan
must
be
assumed
by
an
income
qualified
buyer
and
the
45-year
term
starts
over.
Due
to
the
contingent
nature
of
the
repayment
schedule
of
these
loans,
there
is
an
allowance
recorded
at
100%
of
the
outstanding
balance
. The
balance
of
these
Affordable
Housing
loans
atJune
30,
2023
is
$2,072,774.
Development
Loans
The
City,
through
the
Housing
Authority,
has
development
loans
primarily
for
affordable
rental
housing
projects
and
for
one
group
home
for
the
developmentally
disabled
. The
affordable
rental
housing
loans
have
55 -year
to
57-year
terms
with
three
percent
simple
interest.
Loan
payments
are
made
from
residual
receipts
and
generally
do
not
cover
the
annual
accrued
interest.
Therefore,
due
to
the
contingent
nature
of
the
repayment
schedule
of
these
loans,
there
is
an
allowance
recorded
at
100%
of
the
outstanding
balance.
The
balance
of
the
development
loans,
including
accrued
interest,
at
June
30,
2023
is
$41,119,809.
29 of
34 18
May 21, 2024, Item #7
REQUIRED SUPPLEMENTARY INFORMATION
30 of 34 19
May 21, 2024, Item #7
REVENUES
Lease revenue
Investment income
Loan repayment
Reimbursement agreement fees
Total revenues
EXPENDITURES
Current:
General government
Development services
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Net change in fund balance
Fund balance, beginning of year
Fund balance, end of year
31 of 34
$
$
POWAY HOUSING AUTHORITY
Budgetary Comparison Schedule
Year Ended June 30, 2023
Budget Amounts
Original Final
18,389 18,389
69,227 69,227
40,000 40,000
127,616 127,616
106,100 116,110
55,300 663,953
161,400 780,063
(33,784) {652,447)
(33,784) (652,447)
See note to required supplementary information
20 Actual Variance with
Amounts Final Budget
(18,389)
64,818 (4,409)
339,446 299,446
404,264 276,648
18,875 97,235
563,995 99,958
582,870 197,193
(178,606) 473,841
(178,606) 473,841
5,620,402
$ 5,441,796
May 21, 2024, Item #7
POWAY HOUSING AUTHORITY
Note to Required Supplementary Information
Year Ended June 30, 2023
Note 1 -Budgetary Information
The Authority adopts an annual budget prepared on the modified accrual basis for its major fund. The Executive Director is required to prepare and submit to the Authority's Board of Commissioners the annual budget of the Authority and administer it after adoption. Any revisions that alter the total appropriations of any fund must be approved by the Board of Commissioners.
Prior year appropriations lapse unless they are encumbered at year-end or re-appropriated through the formal budget process. For the major fund, total expenditures may not legally exceed total appropriations.
Budget information is presented for the major fund on a basis consistent with generally accepted accounting principles. Budgeted revenue and expenditure amounts represent the original budget modified for adjustments during the year.
32 of 34 21
May 21, 2024, Item #7
Davis
Farr
LLP
18201
Von
Karmcm
Avenue
I Suite
1100
I Irv
ine,
CA
92612
Main
: 949
.474
.2020
I Fa
x: 949
.263.5520
Report
on
Internal
Control
Over
Financial
Reporting
and
on
Compliance
and
Other
Matters
Based
on
an
Audit
of
Financial
Statements
Performed
in
Accordance
with
Government
Auditing
Standards
Poway
Housing
Authority
City
of
Poway
Poway,
California
INDEPENDENT
AUDITOR'S
REPORT
We
have
audited,
in
accordance
with
the
auditing
standards
generally
accepted
in
the
United
States
of
America
and
the
standards
applicable
to
financial
audits
contained
in
Government
Auditing
Standards
issued
by
the
Comptroller
General
of
the
United
States,
the
financial
statements
of
the
governmental
activities,
and
the
major
fund
of
the
Housing
Authority
of
the
City
of
Poway
(Authority),
a
component
unit
of
the
City
of
Poway
(City),
as
of
and
for
the
year
ended
June
30,
2023,
and
the
related
notes
to
the
financial
statements,
which
collectively
comprise
the
Authority's
basic
financial
statements,
and
have
issued
our
report
thereon
dated
December
27,
2023.
Report
on
Internal
Control
Over
Financial
Reporting
In
planning
and
performing
our
audit
of
the
financial
statements,
we
considered
the
Authority's
internal
control
over
financial
reporting
(internal
control)
as
a
basis
for
designing
the
audit
procedures
that
are
appropriate
in
the
circumstances
for
the
purpose
of
expressing
our
opinion
on
the
financial
statements,
but
not
for
the
purpose
of
expressing
an
opinion
on
the
effectiveness
of
the
Authority's
internal
control.
Accordingly,
we
do
not
express
an
opinion
on
the
effectiveness
of
the
Authority's
internal
control.
A
deficiency
in
internal
control
exists
when
the
design
or
operation
of
a
control
does
not
allow
management
or
employees,
in
the
normal
course
of
performing
their
assigned
functions,
to
prevent,
or
detect
and
correct,
misstatements
on
a
timely
basis.
A
material
weakness
is
a
deficiency,
or
a
combination
of
deficiencies,
in
internal
control,
such
that
there
is
a
reasonable
possibility
that
a
material
misstatement
of
the
entity's
financial
statements
will
not
be
prevented
or
detected
and
corrected
on
a
timely
basis.
A
significant
deficiency
is
a
deficiency,
or
a
combination
of
deficiencies,
in
internal
control
that
is
less
severe
than
a
material
weakness,
yet
important
enough
to
merit
attention
by
those
charged
with
governance.
Our
consideration
of
internal
control
was
for
the
limited
purpose
described
in
the
first
paragraph
of
this
section
and
was
not
designed
to
identify
all
deficiencies
in
internal
control
that
might
be
material
weaknesses
or
significant
deficiencies.
Given
these
limitations,
during
our
audit
we
did
not
identify
any
deficiencies
in
internal
control
that
we
consider
to
be
material
weaknesses.
However,
material
weaknesses
or
significant
deficiencies
may
exist
that
have
not
been
identified.
33 of
34 22
May 21, 2024, Item #7
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Irvine, California
December 27, 2023
34 of 34 23
May 21, 2024, Item #8
AGENDA REPORT CityofPoway
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
May 21, 2024
Honorable Mayor and Members of the City Council
Brad Rosen, Interim Director of Finance ~
Mehrnoush Jamshidi, Finance Manager
(858) 668-4426 or [email protected]
City's Investment Report as of March 31, 2024
CITY COUNCIL
Quarterly reports of investments are required to be presented to the City Council per California Government Code and the City's Investment Policy. Attached is the Investment Portfolio Report as of March 31, 2024.
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 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 sufficiec,t liquidity to meet its cash flow requirements for the next six months. The fair value of the City's investment portfolio as of March 31, 2024, was $145,636,698. It consisted of the following:
Investment Portfolio Total
Cash $69,598
Deposits at CalTRUST 24,150,803
Deposits at the Local Agency Investment Fund (LAIF) 42,366,056 U. S. Treasury Notes 32,331,747
U. S. Instrumentalities 23,643,740
Corporate Notes 23,074,754
Fair Value of Investment Portfolio as of March 31, 2024 $145,636,698 1 of 31
May 21, 2024, Item #8
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.
The attached Investment 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 March 31, 2024, is estimated at 4.23% for LAIF, 5.20% for the CalTRUST short-term fund, and 3.95% 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 $79,717,165; the fair value is $79,119,839 for an unrealized loss of $597,326 or 0.75% 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 March 31, 2024, was $69,598. The source of the market value information for these investments was U.S. Bank. The total book value of the non-managed investments was $181,813 at March 31, 2024. The City's cash on hand at March 31, 2024 totaled $1,732,396.
The March 31, 2024 balance of the City's Library Trust Fund is $265,773. Through the Fiscal Year 2023- 24 period ending March 31, 2024, no transfer of interest earnings has been transferred to the General Fund. At the close of Fiscal Year 2023-24, 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 $175,385 of interest during March 2024, as well as $157,601 of interest during February 2024, and $163,300 during January 2024. Fees for investment services during this period totaled $9,867.
Public Notification:
None.
2 of31
May 21, 2024, Item #8
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 March 31, 2024
Reviewed/Approved By:
Assistant City Manager
3 of31
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
c(fjjjf;1
City Manager
May 21, 2024, Item #8
City of Poway
Investment Statistics
Separately Managed Investment Pools
Fair Value:
CalTRUST Short-Term Deposits
CalTRUST Medium-Term Deposits
March
2023
$ 11,630,123
11,509,352
36,728,969
December
2023
$ 12,110,989
11,872,263
27,034,723
March
2024
12,236,228
11,914,575
42,366,056
Deposits at the Local Agency Investment Fund {LAIF)
Total Fair Value $ 59,868,444 $ 51,017,975 $ 66,516,859 Weighted Average Yield
Effective Average Duration in days
Weighted Average Maturity in days
Externally Managed Investment Pools
Fair Value:
3.14%
1 1
4.15%
1 1
4.36%
1 1
Cash $ 107,221 $ 79,918 $ 69,598
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
27,622,812
26,752,399
21,818,139
76,300,572
107,221
28,224,586
27,089,241
22,105,096
77,526,144
(1,225,574)
-1.58%
144,479
2.30%
1.74 1.90
30,352,151
25,458,662
22,959,752
78,850,483
79,918
30,465,999
25,466,779
22,966,099
78,978,795
(128,312)
-0.16%
161,525
3.31%
1.98 2.17
32,331,747
23,643,740
23,074,754
79,119,839
69,598
32,670,764
23,780,522
23,196,280
79,717,165
(597,326)
-0.75%
175,385
3.80%
2.22 2.47
Total Fair Value of Portfolio Assets $ 136,169,016 $ 129,868,458 $ 145,636,698 Weighted Average Yield
Effective Average Duration in years
Weighted Average Maturity in years
Glossary of Yield Terminology
2.67%
0.98 1.07
3.64%
1.20 1.32
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.
4.05%
1.21 1.34
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. 4of31 ATTACHMENT A
May 21, 2024, Item #8
City of Poway
Monthly Investment Portfolio Report
March 31, 2024
Separately Managed Investment Pools % Return
LAIF $ 42,366,056 64% 4.23%
CalTrust -Short $ 12,236,228 18% 5.20%
CalTrust -Medium $ 11,914,575 18% 3.95%
Total Internally Managed $ 66,516,859 46%
Weighted Average Yield 4.36%
Days
Effective Average Duration -Internal 1
Weighted Average Maturity -Internal 1
Externally Managed Assets % Return
Cash $ 69,598 0% 4.00%
Treasury Securities $ 32,331,747 41% 3.51%
Instrumentality Securities $ 23,643,740 30% 3.98%
Corporate Notes $ 23,074,754 29% 4.02%
Total Externally Managed $ 79,119,839 54%
Weighted Average Yield 3.80%
Years
Effective Average Duration -External 2.22
Weighted Average Final Maturity -External 2.47
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 of31
42,366,056 29% 4.23%
12,236,228 8% 5.20%
11,914,575 8% 3.95%
69,598 0% 4.00%
32,331,747 22% 3.51%
23,643,740 16% 3.98%
23,074,754 16% 4.02%
145,636,697
4.05%
Years
1.21 1.34
$
$
CalTrust -
Medium, 18%
18%
Securities
23%
147,077,196
145,636,697
ATTACHMENT B
Cash, 0%
Treasury
Securities, 41%
Instrumentality
Securities, 30%
CalTrust -Short CalTrust -
12% Medium
Cash
0%
Securities
31%
May 21, 2024, Item #8
6 of31
ATTACHMENT
C
May 21, 2024, Item #8
Contents
Fixed income market review
Activity and performance summary
Recap_ of securities held
Maturity distribution of securities held
Securities held
GASB 40 -Deposit and investment risk disclosure
Securities purchased
Securities sold and matured
Detail of return and interest received
Transaction report
Additional information
3 4
6 7
8 13
17 18
19 23
24 .,.
....
M ....
0 "
May 21, 2024, Item #8
FIXED INCOME MARKET REVIEW
A·s of March 31, 2024
Chart 1: The Fed's "dot plot" remained largely unchanged 6 5
4 ~ 3 ---Fed Funds rate
- - -FOMC Dots (Dec-2023)
2 1
• • • • • • Market expectations (Mar-2024)
~ FOMC Dots (Mar-2024)
0 Jan-22 Jan-23 Jan-24 Jan-25
Source: Federal Reserve, Bloomberg Insight, March 31, 2024 Chart 2: Q4 GDP was revised up again
4.0 3.5
~ 3.0
l/l 2.5
~ -2.0 a..
~ 1.5
~ 1.0
0.5 o.o~---
0.4 lntial estimate Second estimate
Jan-26 Jan-27 Jan-28
Third estimate
-Consumption
-Net exports
-Business investment -Government spending
_._ GDP (overall)
Source: Bureau of Economic Analysis, FRED, Insight, March 31, 2024
CITY OF POWAY
Economic Indicators and Monetary Policy
The Federal Reserve left the Fed Funds Rate and its quantitative tightening operations unchanged at the March meeting. The "dot plot" continued to project three rate hikes in 2024, albeit reflecting one less cut over 2025 and 2026, and its economic forecasts were largely unchanged. (Chart 1.) Some members raised their estimate of the "neutral" or longer run equilibrium rate, although this only nudged the median estimate up slightly from 2.5% to 2.6%.
Chair Powell signaled an announcement that tapering" the pace of QT will come "fairly soon CPI increased from 0.3% to 0.4%, pushing the year-on-year rate up from 3.1 % to 3.2%. Core CPI remained at 0.4% and the year-on-year figure decreased from 3. 9 % to 3.8%. Rising energy prices in February helped inflation accelerate slightly at the headline level. Overall, the main drivers of inflation continue to be the "core services" categories (which include shelter and " supercore services). which accounted for 97% of the rise in CPI on a year-on-year basis.
Supercore services remained relatively high, supported in particular by an acceleration in transportation services. Encouragingly, the shelter" component moderated on a year-over year basis, reaching the lowest level since July 2022.
The third estimate of Q4 GDP was revised up to 3.4%, from 3.2% last month and was also higher than the 3.3% initial estimate. (Chart 2.) The main reason was a significant upward revision in consumption, although business investment was once again revised down slightly.
The US economy added 275,000 jobs in February, above consensus for 200,000. The prior two months were revised down by 160,000. Private jobs were up a solid 223,000 with strength concentrated in services including 58,000 in leisure and hospitality. Temporary help continued to decline at -15,000, indicating some loosening in conditions. The unemployment rate rose from 3.7% to 3.9% the highest since late 2020 while the labor force participation rate was unchanged at 62.5%.
Interest Rate Summary
Yields generally fell slightly during the month. At the end of March, the 3-month US Treasury bill yielded 5.38%, the 6-month US Treasury bill yielded 5.33%, the 2-year US Treasury note yielded 4.62%, the 5-year US Treasury note yielded 4.21 % and the 10-year US Treasury note yielded 4.20%.
...
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3 May 21, 2024, Item #8
ACTIVITY AND PERFORMANCE SUMMARY
For the period March 1, 2024 -March 31; 2024
Amortized cost Basis Activity Summary
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)
267,898.29
0.00 comparative Bates of Beturn 1%1
*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
5.24 5.28
5.23 5.15
5.13 4.63
4.15 2.64
2.66 2.62
2.57 2.51
2.30 2.12
79,371,695.15
267,898.29
0.00 0.00
0.00 0.00
(10,840.30)
88,411.52
0.00 79,717,164.66
79,119,838.64
(597,326.02)
* One month
0.44 0.44
0.44 0.43
0.41 0.38
0.35 Detail of Amoctized cost B11sis Beturn
Interest Accretion Realized
earned {amortization) gain (loss)
Cash and Cash Equivalents 684.95 0.00 0.00
Corporate Bonds 69,210.68 8,768.82 0.00
Government Agencies 51,889.05 23,853.84 0.00
Government Bonds 53,600.56 44,948.56 0.00
Total 175,385.24 77,571.22 0.00
summary of Amoctized cost Basis Betum tor 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
684.95
77,979.50
75,742.89
98,549.12
252,956.46
Total portfolio
175,385.24
77,571.22
0.00 252,956.46
79,613,727.22
0.32 0.89
0 ...
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....
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4 May 21, 2024, Item #8
ACTIVITY AND PERFORMANCE SUMMARY
For the period March 1, 2024 -March 31, 2024
Fair Value Basis Activity Summary
Opening balance
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
267,898.29
0.00 comparative Rates of Return (%1
*Twelve * Six
month trailing month trailing
Fed Funds
Overnight Repo
ICE Bofa 3 Months UST-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
5.24 2.64
5.28 2.66
5.24 2.68
5.22 2.75
4.30 2.63
2.97 2.79
2.42 3.08
78,669,138.94
267,898.29
0.00 0.00
0.00 0.00
0.00 182,801.41
79, 119,838.64
* One month
0.44 0.44
0.45 0.45
0.39 0.32
0.36 [Mail of Fair Y'.alue Basis Return
Interest Change in
earned fair value
Cash and Cash Equivalents 684.95 0.00
Corporate Bonds 69,210.68 55,680.98
Government Agencies 51,889.05 56,065.68
Government Bonds 53,600.56 71,054.75
Total 175,385.24 182,801.41
summary of Fair Y'.alue 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
684.95
124,891.66
107,954.73
124,655.31
358,186.65
Total portfolio
175,385.24
182,801.41
358,186.65
79,499,204.68
0.45 0.30
0 ...
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....
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5 May 21, 2024, Item #8
RECAP OF SECURITIES HELD
As of March 31, 2024
Cash and Cash Equivalents
Corporate Bonds
Government Agencies
Government Bonds
_IJ.1[•.
Historical
cost
69,598.23
23,203,578.00
23,546,502.09
32,158,788.31
Amortized
cost
69,598.23
23, 196,280.28
23,780,521.88
32,670,764.27
Fair value
69,598.23
23,074,753.79
23,643,740.07
32,331,746.55
Unrealized
gain (loss)
0.00 (121,526.49)
(136,781.81)
(339,017.72)
Weighted Percent
average of
final portfolio
maturity (days)
0 0
0 0.09
29.38 29.81
40.72 Portfolio diversification (%}
■ Cash and Cash Equivalents
■ Corporate Bonds
■ GovernmentAgencies
■ Government Bonds
Total
0.09 29.38
29.81 40.72
100.00
Weighted
average
effective
duration (years)
0.00 2.19
2.41 2.09
CITY OF POWAY
...
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....
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6 May 21, 2024, Item #8
MATURITY DISTRIBUTION OF SECURITIES HELD
As of March 31, 2024
Maturity
---
Under 90 days
90 to 179 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
E
.§.
.....
"' 0 u
;; u ·c::
0 .....
"' :i:
25.00 20.00
15.00 10.00
5.00 0.00
o'l>-f
of>
o&
-v"' OJ<::>,o
Maturity distribution
o'l>-f
'\OJ
"
!,.
"4,"'?i
,o
o'l>4,""
,<o<::>
(!>
4,0?;
'l,
,,o
rb""
~4,0
'l,~
rb' 4,fli
t>,.
~~
Historic cost Percent
7,001,386.86 8.87
2,007,920.00 2.54
4,213,824.07 5.34
18,314,401 .53 23.19
17,965,010.84 22.75
22,023,944.70 27.89
7,451,978.63 9.44
0.00 0.00
78,978,466.63 :,oo:oo: ·\:?8
rb"" 4,0
" t>,.'--0
~<-:,
4,0
1--"
0--:,.'li
CITY OF POWAY
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7 May 21, 2024, Item #8
SECURITIES HELD
CITY OF POWAY
As of March 31, 2024
Cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % Call date shares gain accrued Port
(loss) interest cost
Cash and Cash Equivalents
Cash and Cash Equivalents 0.000 69,598.23 69,598.23 69,598.23 69,598.23 0.00 0.00 0.09 Total Cash and Cash Equivalents 69,598.23 69,598.23 69,598.23 69,598.23 0.00 0.00 0.09 Corporate Bonds
459200JY8 IBM CORP 3% 15MAY2024 3.000 05/15/2024 2,300,000.00 2,463,231.00 2,306,488.86 2,292,049.84 (14,439.02) 26,066.67 3.12 02665WCZ2 AMERICAN HONDA FINANCE 2.4% 27JUN2024 2.400 06/27/2024 1,000,000.00 1,012,410.00 1,000,659.54 992,567.71 (8,091.83) 6,266.67 1.28 166764BW9 CHEVRON CORP 1.554% 11 MAY2025 (CALLABLE 1.554 05/11/2025 1,800,000.00 1,715,436.00 1,768,659.74 1,731,276.49 (37,383.25) 10,878.00 2.17 11APR25) 04/11/2025
24422ETC3 JOHN DEERE CAPITAL CORP 3.4% 11 SEP2025 3.400 09/11/2025 1,000,000.00 989,920.00 995,195.17 976,817.44 (18,37773) 1,888.89 1.25 037833EB2 APPLE INC 0.7% 08FEB2026 (CALLABLE 08JAN26) 0.700 02/08/2026 1,200,000.00 1,096,152.00 1,130,768.00 1,113,400.69 (17,367.31) 1,236.67 1.39 01/08/2026
06051GFX2 BANK OF AMERICA CORP 3.5% 19APR2026 3.500 04/19/2026 1,800,000.00 1,736,028.00 1,754,323.37 1,745,648.59 (8,674.78) 28,350.00 2.20 91159HHN3 US BANCORP 2.375% 22JUL2026 (CALLABLE 22JUN26) 2.375 07/22/2026 1,000,000.00 944,140.00 947,897.40 942,326.68 (5,570.72) 4,552.08 1.20 06/22/2026
02665WBH3 AMERICAN HONDA FINANCE 2.3% 09SEP2026 2.300 09/09/2026 1,100,000.00 1,034,869.00 1,053,643.60 1,033,028.01 (20,615.59) 1,546.11 1.31 17325FBC1 CITIBANK NA 5.488% 04DEC2026 (CALLABLE 04NOV26) 5.488 12/04/2026 1,400,000.00 1,420,132.00 1,418,691.14 1,415,439.40 (3,2S1 .74) 24,970.40 1.80 06/04/2024
17275RBQ4 CISCO SYSTEMS INC 4.8% 26FEB2027 (CALLABLE 4.800 02/26/2027 1,250,000.00 1,253,775.00 1,253,752.84 1,252,374.41 (1,378.43) 5,833.33 1.59 26JAN27) 01/26/2027 ...
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....
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...
8 May 21, 2024, Item #8
SECURITIES HELD
CITY OF POWAY
As of March 31, 2024
Cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % Call date shares gain accrued Port
(loss) interest cost
Corporate Bonds
037833DB3 APPLE INC 2.9% 12SEP2027 (CALLABLE 12JUN27) 2. 900 09/12/2027 1,300,000.00 1,234,987.00 1,252,050.98 1,230,398.42 (21,652.56) 1,989.72 1.56 06/12/2027
24422EWK1 JOHN DEERE CAPITAL CORP 4.15% 15SEP2027 4.150 09/15/2027 1,000,000.00 992,020.00 994,110.79 982,593.89 (11,516.90) 1,844.44 1.26 89236TKQ7 TOYOTA MOTOR CREDIT CORP 4.625% 12JAN2028 4.625 01/12/2028 1,100,000.00 1,091,585.00 1,093,424.42 1,095,951.11 2,526.69 11,164.24 1.38 46625HRY8 JPMORGAN CHASE & CO 3.782% 01 FEB2028 (CALLABLE 3.782 02/01/2028 2,000,000.00 1,909,600.00 1,916,937.86 1,927,193.62 10,255.76 12,606.67 2.42 01 FEB27) 02/01/2027
194162AR4 COLGATE-PALMOLIVE CO 4.6% 01 MAR2028 (CALLABLE 4.600 03/01/2028 2,400,000.00 2,391,240.00 2,393,136.95 2,426,236.27 33,099.32 9,200.00 3.03 01 FEB28) 02/01/2028
91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 4.548 07/2212028 900,000.00 890,253.00 890,615.79 882,345.76 (8,270.03) 7,845.30 1.13 07/22/2027
17325FBB3 CITIBANK NA 5.803% 29SEP2028 (CALLABLE 29AUG28) 5.803 09/29/2028 1,000,000.00 1,027,800.00 1,025,923.83 1,035,105.46 9,181.63 322.39 1.30 08/29/2028
----------
Total Corporate Bonds 23,550,000.00 23,203,578.00 23,196,280.28 23,074,753.79 (121,526.49) 156,561.58 29.38 -. ·---·---·--------
Government Agencies
3135GOV75 FANNIE MAE 1.75% 02JUL2024 1.750 07/02/2024 2,000,000.00 2,007,920.00 2,000,422.40 1,981,761.78 (18,660.62) 8,652.78 2.54 3130AL2A1 FEDERAL HOME LOAN BANK 0.5% 1 OFEB2025 0.500 02/10/2025 1,000,000.00 1,002,860.00 1,000,000.00 960,430.65 (39,569.35) 708.33 1.27 (CALLABLE 1 OMAY24) 05110/2024
3136G4K85 FANNIE MAE 0.5% 18AUG2025 CALLABLE #0000 0.500 08/18/2025 1,350,000.00 1,266,394.50 1,271,884.54 1,271,959.56 75.02 806.25 1.60 3134A2HG6 FREDDIE MAC 0% 11 DEC2025 0.000 12/11/2025 1,000,000.00 895,930.00 927,575.02 923,296.36 (4,278.66) 0.00 1.13 ....
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9 May 21, 2024, Item #8
SECURITIES HELD
CITY OF POWAY
As of March 31, 2024
Cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % Call date shares gain accrued Port
{loss) interest cost
Government Agencies
3130ALHHO FEDERAL HOME LOAN BANK 0. 96% 05MAR2026 0.960 03/05/2026 2,300,000.00 2,092,540.00 2,155,027.95 2,141,529.26 (13,498.69) 1,594.67 2.65 (CALLABLE 05APR24) 04/05/2024
3130AWLZ1 FEDERAL HOME LOAN BANK 4.75% 12JUN2026 4.750 06/12/2026 1,100,000.00 1,096,612.00 1,097,308.63 1,103,473.17 6,164.54 15,820.14 1.39 3133EPUW3 FEDERAL FARM CREDIT BANK 4.75% 01 SEP2026 4.750 09/01/2026 2,000,000.00 1,987,080.00 1,989,137.72 2,006,887.06 17,749.34 7,916.67 2.52 3130APJH9 FEDERAL HOME LOAN BANK 1 % 280CT2026 (CALLABLE 1.000 10/28/2026 2,050,000.00 1,860,110.55 1,920,618.64 1,906,396.29 (14,222.35) 8,712.50 2.36 28APR24) #0006 04/28/2024
3133EPK79 FEDERAL FARM CREDIT BANK 4.375% 07DEC2026 4.375 12/07/2026 1,200,000.00 1,196,508.00 1,196,884.90 1,196,916.67 31.77 16,625.00 1.51 3130AQF65 FEDERAL HOME LOAN BANK 1.25% 21 DEC2026 1 .250 12/21/2026 2,300,000.00 2,055,763.00 2,136,229.33 2, 114, 152.87 (22,076.46) 7,986.11 2.60 3130ATHWO FEDERAL HOME LOAN BANK 4.125% 1 OSEP2027 4.125 09/10/2027 2,000,000.00 1,993,260.00 1,995,278.19 1,983,074.86 (12,203.33) 4,812.50 2.52 3133EPCG8 FEDERAL FARM CREDIT BANK 4.125% 01 DEC2027 4.125 12/01/2027 1,000,000.00 989,640.00 991,973.28 989,268.74 (2,704.54) 13,750.00 1.25 3130ATUS4 FEDERAL HOME LOAN BANK 4.25% 1 ODEC2027 4.250 12/10/2027 2,000,000.00 2,010,731.16 2,008,221.45 1,990, 164.28 (18,057.17) 26,208.33 2.55 3133EN5N6 FEDERAL FARM CREDIT BANK 4% 06JAN2028 4.000 01/06/2028 1,100,000.00 1,105,292.88 1,104,052.59 1,086,197.72 (17,854.87) 10,388.89 1.40 3133EP5U5 FEDERAL FARM CREDIT BANK 4.125% 20MAR2029 4.125 03/20/2029 2,000,000.00 1,985,860.00 1,985,907.24 1,988,230.80 2,323.56 2,520.83 2.51 ----- Total Government Agencies 24,400,000.00 23,546,502.09 23,780,521.88 23,643,740.07 (136,781.81) 126,503.00 29.81 ....
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10 May 21, 2024, Item #8
SECURITIES HELD
CITY OF POWAY
As of March 31, 2024
Cusip Description Coupon Maturity/ Par value or Historical cost Amortized cost Fair value Unrealized Total % Call date shares gain accrued Port
(loss) interest cost
Government Bonds
912828X70 USA TREASURY 2% 30APR2024 2.000 04/30/2024 2,000,000.00 2,036,015.63 2,000,644.29 1,994,602.78 (6,041.51) 16,703.30 2.58 912828YH7 USA TREASURY 1.5% 30SEP2024 1.500 09/30/2024 1,000,000.00 1,032,304.69 1,005,158.60 981,582.03 (23,576.57) 7,500.00 1.31 912828YM6 USA TREASURY 1.5% 31 OCT2024 1.500 10/31/2024 1,100,000.00 1,132,015.40 1,106,073.84 1,076,453.13 (29,620.71) 6,890.11 1.43 912828YYO USA TREASURY 1.75% 31 DEC2024 1.750 12/31/2024 1,000,000.00 1,046,643.98 1,009,859.41 975,078.12 (34,781.29) 4,375.00 1.33 912828ZL7 USA TREASURY 0.375% 30APR2025 0.375 04/30/2025 2,900,000.00 2,704,703.13 2,831,061.43 2,760,550.77 (70,510.66) 4,541.21 3.42 912828XZ8 USA TREASURY 2.75% 30JUN2025 2.750 06/30/2025 1,500,000.00 1,445,449.22 1,466,655.29 1,461,386.72 (5,268.57) 10,312.50 1.83 91282CAJO USA TREASURY 0.25% 31 AUG2025 0.250 08/31/2025 1,400,000.00 1,279,250.00 1,346,310.30 1,312,828.13 (33,482.17) 294.84 1.62 91282CAT8 USA TREASURY 0.25% 31 OCT2025 0.250 10/31/2025 1,200,000.00 1,086,046.88 1,143,072.60 1,118,015.63 (25,056.97) 1,252.75 1.38 9128285N6 USA TREASURY 2.875% 30NOV2025 2.875 11/30/2025 1,700,000.00 1,636,454.91 1,647,276.62 1,649,199.22 1,922.60 16,291.67 2.07 91282CBC4 USA TREASURY 0.375% 31 DEC2025 0.375 12/31/2025 2,300,000.00 2,106,124.89 2,200,497.14 2,133,699.21 (66,797.93) 2,156.25 2.67 91282CBT7 USA TREASURY 0.75% 31 MAR2026 0.750 03/31/2026 1,400,000.00 1,243,707.82 1,310,864.62 1,297,515.63 (13,348.99) 5,250.00 1.57 912828YU8 USA TREASURY 1.625% 30NOV2026 1.625 11/30/2026 1,600,000.00 1,468,130.36 1,483,129.18 1,487,000.00 3,870.82 8,666.67 1.86 ...
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...
11 May 21, 2024, Item #8
SECURITIES HELD
As of March 31, 2024
Cusip Description
Government Bonds
91282CDQ1 USA TREASURY 1 .25% 31 DEC2026
91282CEF4 USA TREASURY 2.5% 31 MAR2027
91282CET4 USA TREASURY 2.625% 31 MAY2027
91282CEW7 USA TREASURY 3.25% 30JUN2027
91282CFB2 USA TREASURY 2.75% 31JUL2027
91282CFUO USA TREASURY 4.125% 31 OCT2027
9128283FS USA TREASURY 2.25% 1 SNOV2027
91282CHE4 USA TREASURY 3.625% 31 MAY2028
91282CCH2 USA TREASURY 1.25% 30JUN2028
Total Government Bonds
Coupon Maturity/
Call date
1.250 12/31/2026
2.500 03/31/2027
2.625 05/31/2027
3.250 06/30/2027
2.750 07/31/2027
4.125 10/31/2027
2.250 11/15/2027
3.625 05/31/2028
1 .250 06/30/2028
Par value or
shares
2,350,000.00
1,000,000.00
2,000,000.00
740,000.00
1,800,000.00
2,100,000.00
1,100,000.00
2,100,000.00
1,700,000.00
33,990,000.00
Historical cost Amortized cost
2,088,287.11 2,177,639.94
924,573.66 935,222.08
1,901,256.70 1,905,741.33
699,620.45 704,941.33
1,671,756.03 1,686,327.09
2,077,858.60 2,080,982.22
1,030,523.22 1,048,839.12
2,074,577.35 2,075,771.28
1,473,488.28 1,504,696.56
32,158,788.31 32,670,764.27
lfMJll•1•:
Fair value Unrealized
gain
(loss)
2,158,144.54 (19,495.40)
947,148.44 11,926.36
1,896,015.62 (9,725.71)
714,909.38 9,968.05
1,710,140.62 23,813.53
2,084,250.00 3,267.78
1,023,687 .SO (25,151.62)
2,047,828.13 (27,943.15)
1,501,710.95 (2,985.61)
32,331,746.55 (339,017.72)
CITY OF POWAY
Total %
accrued Port
interest cost
7,343.75 2.64
12,500.00 1.17
17,500.00 2.41
6,012.50 0.89
8,159.34 2.12
36,173.08 2.63
9,315.25 1.30
25,375.00 2.63
5,312.50 1.87
211,925.72 40.72
~mm)
...
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...
12 May 21, 2024, Item #8
GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE
CITY OF POWAY
As of March 31, 2024
Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective date rating rating shares cost hist cost value mkt value dur (yrs) United States Treasury Note/Bond
912828X70 USA TREASURY 2% 2.000 04/30/2024 AA+ Aaa 2,000,000.00 2,036,015.63 2.58 1,994,602.78 2.52 0.09 912828YH7 USA TREASURY 1.5% 1.500 09/30/2024 AA+ Aaa 1,000,000.00 1,032,304.69 1.31 981,582.03 1.24 0.49 912828YM6 USA TREASURY 1.5% 1.500 10/31/2024 AA+ Aaa 1,100,000.00 1,132,015.40 1.43 1,076,453.13 1.36 0.57 912828YYO USA TREASURY 1.75% 1.750 12/31/2024 AA+ Aaa 1,000,000.00 1,046,643.98 1.33 975,078.12 1.23 0.74 912828ZL7 USA TREASURY 0.375% 0.375 04/30/2025 AA+ Aaa 2,900,000.00 2,704,703.13 3.42 2,760,550.77 3.49 1.05 912828XZ8 USA TREASURY 2.75% 2.750 06/30/2025 AA+ Aaa 1,500,000.00 1,445,449.22 1.83 1,461,386.72 1.85 1.20 91282CAJO USA TREASURY 0.25% 0.250 08/31/2025 AA+ Aaa 1,400,000.00 1,279,250.00 1.62 1,312,828.13 1.66 1.38 91282CAT8 USA TREASURY 0.25% 0.250 10/31/2025 AA+ Aaa 1,200,000.00 1,086,046.88 1.38 1,118,015.63 1.41 1.54 9128285N6 USA TREASURY 2.875% 2.875 11/30/2025 AA+ Aaa 1,700,000.00 1,636,454.91 2.07 1,649,199.22 2.08 1.58 91282CBC4 USA TREASURY 0.375% 0.375 12/31/2025 AA+ Aaa 2,300,000.00 2,106,124.89 2.67 2,133,699.21 2.70 1.70 91282CBT7 USA TREASURY 0.75% 0.750 03/31/2026 AA+ Aaa 1,400,000.00 1,243,707.82 1.57 1,297,515.63 1.64 1.94 912828YU8 USA TREASURY 1 .625% 1.625 11/30/2026 AA+ Aaa 1,600,000.00 1,468, 130.36 1.86 1,487,000.00 1.88 2.54 91282CDQ1 USA TREASURY 1.25% 1.250 12/31/2026 AA+ Aaa 2,350,000.00 2,088,287.11 2.64 2,158,144.54 2.73 2.63 91282CEF4 USA TREASURY 2.5% 2.500 03/31/2027 AA+ Aaa 1,000,000.00 924,573.66 1.17 947,148.44 1.20 2.83 91282CET4 USA TREASURY 2.625% 2.625 05/31/2027 AA+ Aaa 2,000,000.00 1,901,256.70 2.41 1,896,015.62 2.40 2.95 91282CEW7 USA TREASURY 3.25% 3.250 06/30/2027 AA+ Aaa 740,000.00 699,620.45 0.89 714,909.38 0.90 3.00 91282CFB2 USA TREASURY 2.75% 2.750 07/31/2027 AA+ Aaa 1,800,000.00 1,671,756.03 2.12 1,710,140.62 2.16 3.11 91282CFUO USA TREASURY 4.125% 4.125 10/31/2027 AA+ Aaa 2,100,000.00 2,077,858.60 2.63 2,084,250.00 2.63 3.22 9128283F5 USA TREASURY 2.25% 2.250 11/15/2027 AA+ Aaa 1,100,000.00 1,030,523.22 1.30 1,023,687.50 1.29 3.37 91282CHE4 USA TREASURY 3.625% 3.625 05/31/2028 AA+ Aaa 2,100,000.00 2,074,577.35 2.63 2,047,828.13 2.59 3.75 91282CCH2 USA TREASURY 1.25% 1.250 06/30/2028 AA+ Aaa 1,700,000.00 1,473,488.28 1.87 1,501,710.95 1.90 4.02 Issuer total 33,990,000.00 32,158,788.31 40.72 32,331,746.55 40.86 2.09 Federal Home Loan Banks ...
3130AL2A1 FEDERAL HOME LOAN 0.500 02/10/2025 05/10/2024 AA+ Aaa 1,000,000.00 M
1,002,860.00 1.27 960,430.65 1.21 0.85 ~
0 00 ...
13 May 21, 2024, Item #8
GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE
CITY OF POWAY
As of March 31, 2024
Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective date rating rating shares cost hist cost value mkt value dur (yrs) Federal Home Loan Banks
3130ALHHO FEDERAL HOME LOAN 0.960 03/05/2026 04/05/2024 AA+ Aaa 2,300,000.00 2,092,540.00 2.65 2,141,529.26 2.71 1.84 3130AWLZ1 FEDERAL HOME LOAN 4.750 06/12/2026 AA+ Aaa 1,100,000.00 1,096,612.00 1.39 1,103,473.17 1.39 2.03 3130APJH9 FEDERAL HOME LOAN 1.000 10/28/2026 04/28/2024 AA+ Aaa 2,050,000.00 1,860,110.55 2.36 1,906,396.29 2.41 2.48 3130AQF65 FEDERAL HOME LOAN 1.250 12/21/2026 AA+ Aaa 2,300,000.00 2,055,763.00 2.60 2,114,152.87 2.67 2.61 3130ATHWO FEDERAL HOME LOAN 4.125 09/10/2027 AA+ Aaa 2,000,000.00 1,993,260.00 2.52 1,983,074.86 2.51 3.16 3130ATU54 FEDERAL HOME LOAN 4.250 12/10/2027 AA+ Aaa 2,000,000.00 2,010,731.16 2.55 1,990,164.28 2.52 3.32 Issuer total 12,750,000.00 12,111,876.71 15.34 12,199,221.38 15.42 2.47 Federal Farm Credit Banks Funding Corp
3133EPUW3 FEDERAL FARM CREDIT 4.750 09/01/2026 AA+ Aaa 2,000,000.00 1,987,080.00 2.52 2,006,887.06 2.54 2.25 3133EPK79 FEDERAL FARM CREDIT 4.375 12/07/2026 AA+ Aaa 1,200,000.00 1, 196,508.00 1.51 1,196,916.67 1.51 2.47 3133EPCG8 FEDERAL FARM CREDIT 4.125 12/01/2027 AA+ Aaa 1,000,000.00 989,640.00 1.25 989,268.74 1.25 3.32 3133EN5N6 FEDERAL FARM CREDIT 4.000 01/06/2028 AA+ Aaa 1,100,000.00 1,105,292.88 1.40 1,086,197.72 1.37 3.41 3133EP5U5 FEDERAL FARM CREDIT 4.125 03/20/2029 AA+ Aaa 2,000,000.00 1,985,860.00 2.51 1,988,230.80 2.51 4.42 Issuer total 7,300,000.00 7,264,380.88 9.20 7,267,500.99 9.19 3.20 Federal National Mortgage Association
3135GOV75 FANNIE MAE 1.75% 1.750 07/02/2024 AA+ Aaa 2,000,000.00 2,007,920.00 2.54 1,981,761.78 2.50 0.26 3136G4K85 FANNIE MAE 0.5% 0.500 08/18/2025 AA+ Aaa 1,350,000.00 1,266,394.50 1.60 1,271,959.56 1.61 1.35 Issuer total 3,350,000.00 3,274,314.50 4.15 3,253,721.34 4.11 0.68 Citibank NA
17325FBC1 CITIBANK NA 5.488% 5.488 12/04/2026 06/04/2024 A+ Aa3 1,400,000.00 1,420,132.00 1.80 1,415,439.40 1.79 2.37 17325FBB3 CITIBANK NA 5.803% 5.803 09/29/2028 08/29/2028 A+ Aa3 1,000,000.00 1,027,800.00 1.30 1,035,105.46 1.31 3.87 Issuer total 2,400,000.00 2,447,932.00 3.10 2,450,544.86 3.10 3.00 ....
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14 May 21, 2024, Item #8
GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE
CITY OF POWAY
As of March 31, 2024
Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective date rating rating shares cost hist cost value mkt value dur (yrs) Colgate-Palmolive Co
194162AR4 COLGATE-PALMOLIVE CO 4.600 03/01/2028 02/01/2028 AA-Aa3 2,400,000.00 2,391,240.00 3.03 2,426,236.27 3.07 3.48 Issuer total 2,400,000.00 2,391,240.00 3.03 2,426,236.27 3.07 3.48 Apple Inc
037833EB2 APPLE INC 0.7% 0.700 02/08/2026 01/08/2026 AA+ Aaa 1,200,000.00 1,096, 152.00 1.39 1,113,400.69 1.41 1.80 037833D83 APPLE INC 2.9% 2.900 09/12/2027 06/12/2027 AA+ Aaa 1,300,000.00 1,234,987.00 1.56 1,230,398.42 1.56 3.15 Issuer total 2,500,000.00 2,331,139.00 2.95 2,343,799.11 2.96 2.52 International Business Machines Corp
459200JY8 IBM CORP 3% 3.000 05/15/2024 A-A3 2,300,000.00 2,463,231.00 3.12 2,292,049.84 2.90 0.13 Issuer total 2,300,000.00 2,463,231.00 3.12 2,292,049.84 2.90 0.13 American Honda Finance Corp
02665WCZ2 AMERICAN HONDA 2.400 06/27/2024 A-A3 1,000,000.00 1,012,410.00 1.28 992,567.71 1.25 0.24 02665WBH3 AMERICAN HONDA 2.300 09/09/2026 A-A3 1,100,000.00 1,034,869.00 1.31 1,033,028.01 1.31 2.32 Issuer total 2,100,000.00 2,047,279.00 2.59 2,025,595.72 2.56 1.29 John Deere Capital Corp
24422ETC3 JOHN DEERE CAPITAL 3.400 09/11/2025 A A1 1,000,000.00 989,920.00 1.25 976,817.44 1.23 1.38 24422EWK1 JOHN DEERE CAPITAL 4.150 09/15/2027 A A1 1,000,000.00 992,020.00 1.26 982,593.89 1.24 3.16 Issuer total 2,000,000.00 1,981,940.00 2.51 1,959,411.33 2.48 2.27 JPMorgan Chase & Co
46625HRY8 JPMORGAN CHASE & CO 3.782 02/01/2028 02/01/2027 A-A1 2,000,000.00 1,909,600.00 2.42 1,927,193.62 2.44 2.62 Issuer total 2,000,000.00 1,909,600.00 2.42 1,927,193.62 2.44 2.62 US Bancorp
91159HHN3 US BANCORP 2.375% 2.375 07/22/2026 06/22/2026 A A3 1,000,000.00 944,140.00 1.20 942,326.68 1.19 2.18 ....
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May 21, 2024, Item #8
GASB 40 -DEPOSIT AND INVESTMENT RISK DISCLOSURE
CITY OF POWAY
As of March 31, 2024
Cusip Description Coupon Maturity Call date S&P Moody Par value or Historical % Portfolio Market % Portfolio Effective date rating rating shares cost hist cost value mktvalue dur (yrs) US Bancorp
91159HJF8 US BANCORP 4.548% 4.548 07/22/2028 07/22/2027 A A3 900,000.00 890,253.00 1.13 882,345.76 1.12 2.99 Issuer total 1,900,000.00 1,834,393.00 2.32 1,824,672.44 2.31 2.57 Bank of America Corp
06051 GFX2 BANK OF AMERICA CORP 3.500 04/19/2026 A-A1 1,800,000.00 1,736,028.00 2.20 1,745,648.59 2.21 1.91 Issuer total 1,800,000.00 1,736,028.00 2.20 1,745,648.59 2.21 1.91 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 2.17 1,731,276.49 2.19 1.07 Issuer total 1,800,000.00 1,715,436.00 2.17 1,731,276.49 2.19 1.07 Cisco Systems Inc
17275RBQ4 CISCO SYSTEMS INC 4.8% 4.800 02/26/2027 01/26/2027 AA-A1 1,250,000.00 1,253,775.00 1.59 1,252,374.41 1.58 2.62 Issuer total 1,250,000.00 1,253,775.00 1.59 1,252,374.41 1.58 2.62 Toyota Motor Credit Corp
89236TKQ7 TOYOTA MOTOR CREDIT 4.625 01/12/2028 A+ A1 1,100,000.00 1,091,585.00 1.38 1,095,951.11 1.39 3.38 Issuer total 1,100,000.00 1,091,585.00 1.38 1,095,951.11 1.39 3.38 Federal Home Loan Mortgage Corp
3134A2HG6 FREDDIE MAC 0% 0.000 12/11/2025 AA+ Aaa 1,000,000.00 895,930.00 1.13 923,296.36 1.17 1.65 Issuer total 1,000,000.00 895,930.00 1.13 923,296.36 1.17 1.65 Cash and Cash Equivalents
CASH 0.000 69,598.23 69,598.23 0.00 69,598.23 0.09 0.00 Issuer total 69,598.23 69,598.23 0.00 69,598.23 0.09 0.00 ~ AAl•I•WfflH ~ . U'!100ID ~ ~
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16 May 21, 2024, Item #8
SECURITIES PURCHASED
For the period March 1, 2024 -March 31, 2024
Cusip Description / Broker Trade date Coupon Maturity/
Settle date Call date
Corporate Bonds
17275RBQ4 CISCO SYSTEMS INC 4.8% 26FEB2027 03/25/2024 4.800 02/26/2027 J.P. MORGAN SECURITIES LLC 03/28/2024 01/26/2027
--
Total Corporate Bonds
--
Government Agencies
3133EP5U5 FEDERAL FARM CREDIT BANK 4.125% 03/25/2024 4.125 03/20/2029 WELLS FARGO SECURITIES, LLC 03/28/2024
·--. ---
Total Government Agencies
Par value or Unit cost Principal
shares cost
1,250,000.00 100.30 (1,253,775.00)
--- -
1,250,000.00 (1,253,775.00)
2,000,000.00 99.29 (1,985,860.00)
2,000,000.00 (1,985,860.00)
CITY OF POWAY
Accrued
interest
(5,333.33)
(5,333.33)
(1,833.33)
(1,833.33)
~ I
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17 May 21, 2024, Item #8
SECURITIES SOLD AND MATURED
For the period March 1, 2024 -March 31, 2024
Cusip Description / Broker
Corporate Bonds
17275RAN2 CISCO SYS INC 3.625% 04/03/2024
Total (Corporate Bonds)
Government Agencies
3133EMBE1 FEDERAL FARM CREDIT BANK 0.3%
28MAR2024 CALLABLE
Total (Government Agencies)
•lll~ft(I.JI[~
Trade date Coupon Maturity/ Par value or Historical cost Amortized cost Settle date Call date shares at sale or
maturity
03/04/2024 3.625 (1,000,000.00) 1,070,370.00 1,000,000.00 03/04/2024
(1,000,000.00) 1 ,070,370.00 1,000,000.00
03/28/2024 0.300 (2,000,000.00) 1,998,500.00 2,000,000.00 03/28/2024
(2,000,000.00) 1,998,500.00 2,000,000.00
Price
0.00 0.00
Fair value at
sale or
maturity
1,000,000.00
1,000,000.00
2,000,000.00
2,000,000.00
CITY OF POWAY
Realized Accrued
gain interest
(loss) sold
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
lOOID ~
...
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18 May 21, 2024, Item #8
DETAIL OF RETURN AND INTEREST RECEIVED
For the period March 1, 2024 -March 31, 2024
cusip Description
Cash
Cash and Cash Equivalents
Total Cash
Corporate Bonds
02665WBH3
02665WCZ2
037833EB2
037833DB3
06051GFX2
166764BW9
17275RAN2
17275RBQ4
17325FBC1
17325FBB3
194162AR4
459200JY8
24422ETC3
24422EWK1
46625HRY8
89236TKQ7
91159HHN3
AMERICAN HONDA FINANCE 2.3% 09SEP2026
AMERICAN HONDA FINANCE 2.4% 27JUN2024
APPLE INC 0.7% 08FEB2026 (CALLABLE 08JAN26)
APPLE INC 2. 9% 12SEP2027 (CALLABLE 12JUN27)
BANK OF AMERICA CORP 3.5% 19APR2026
CHEVRON CORP 1.554% 11MAY2025 (CALLABLE 11APR25)
CISCO SYS INC 3.625% 04/03/2024
CISCO SYSTEMS INC 4.8% 26FEB2027 (CALLABLE 26JAN27)
CITIBANK NA 5.488% 04DEC2026 (CALLABLE 04NOV26)
CITIBANK NA S.803% 29SEP2028 (CALLABLE 29AUG28)
COLGATE-PALMOLIVE CO 4.6% 01 MAR2028 (CALLABLE 01 FEB28) IBM CORP 3% 15MAY2024
JOHN DEERE CAPITAL CORP 3.4% 11 SEP2025
JOHN DEERE CAPITAL CORP 4.15% 15SEP2027
JPMORGAN CHASE & CO 3.782% 01 FEB2028 (CALLABLE 01 FEB27) TOYOTA MOTOR CREDIT CORP 4.625% 12JAN2028
US BANCORP 2.375% 22JUL2026 (CALLABLE 22JUN26)
Accretion
(amortization)
0.00 0.00
1,582.13
(227.43)
3,109.22
1,158.19
1,854.26
2,344.66
(188.16)
(22.16)
(600.36)
(489.43)
145.92
(4,325.91)
276.67
141.91
1,804.39
144.83
1,878-70
Realized gain
(loss)
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 Change in fair
value
0.00 0.00
476.05
2,604.34
4,101.78
3,738.69
632.96
4,155.81
0.00 (1,400.59)
3,766.30.
4,836.27
8,026.08
4,121.71
520.75
1,951.24
6,746.74
2,721.54
5,029.23
CITY OF POWAY
Interest earned Interest received
684.95
684.95
2,248.89
2,133.34
746.67
3,351.11
5,600.00
2,486.40
503.47
500.00
6,829.51
5,158.22
9,813.33
6,133.34
3,022.22
3,688.88
6,723.56
4,522.23
2,111.11
684.95
684.95
12,650.00
0.00 0.00
18,850.00
0.00 0.00
18,125.00
0.00 0.00
29,015.00
55,200.00
0.00 17,000.00
20,750.00
0.00 0.00
0.00 .-
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19 May 21, 2024, Item #8
DETAIL OF RETURN AND INTEREST RECEIVED
For the period March 1, 2024 -March 31, 2024
Cusip Description
Corporate Bonds
91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) Total Corporate Bonds
Government Agencies
3136G4K85
3135GOV75
3133EMBE1
3133EN5N6
3133EPCG8
3133EP5U5
3133EPK79
3133EPUW3
3130AL2A1
3130ALHHO
3130APJH9
3130AQF65
3130ATHWO
3130ATUS4
3130AWLZ1
3134A2HG6
FANNIE MAE 0.5% 18AUG2025 CALLABLE #0000
FANNIE MAE 1.75% 02JUL2024
FEDERAL FARM CREDIT BANK 0.3% 28MAR2024 CALLABLE
FEDERAL FARM CREDIT BANK 4% 06JAN2028
FEDERAL FARM CREDIT BANK 4.125% 01 DEC2027
FEDERAL FARM CREDIT BANK 4.125% 20MAR2029
FEDERAL FARM CREDIT BANK 4.375% 07DEC2026
FEDERAL FARM CREDIT BANK 4.75% 01 SEP2026
FEDERAL HOME LOAN BANK 0.5% 1 OFEB2025 (CALLABLE 1 OMAY24) FEDERAL HOME LOAN BANK 0. 96% 05MAR2026 (CALLABLE 05APR24) FEDERAL HOME LOAN BANK 1 % 280CT2026 (CALLABLE 28APR24) #0006 FEDERAL HOME LOAN BANK 1.25% 21 DEC2026
FEDERAL HOME LOAN BANK 4.125% 1 OSEP2027
FEDERAL HOME LOAN BANK 4.25% 1 ODEC2027
FEDERAL HOME LOAN BANK 4.75% 12JUN2026
FREDDIE MAC 0% 11 DEC202S
Total Government Agencies
Accretion
(amortization)
181.39
8,768.82
4,705.75
(137.74)
33.39 (89.66)
182.29
47.24 96.64
374.13
0.00 6,040.50
4,182.59
5,008.28
114.24
(185.45)
101.95
3,379.69
23,853.84
Realized gain
(loss)
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 Change in fair
value
3,652.08
55,680.98
4,725.36
6,014.78
7,962.36
1,929.73
(795.44)
2,370.80
(1,167.48)
(2,331.38)
3,835.71
7,724.36
3,247.30
8,570.97
5,243.38
5,157.98
(178.78)
3,756.03
56,065.68
CITY OF POWAY
Interest earned Interest received
3,638.40 0.00
69,210.68 171,590.00
600.00 0.00
3,111.11 0.00
483.33 3,000.00
3,911.11 0.00
3,666.67 0.00
687.50 0.00
4,666.67 0.00
8,444.45 47,500.00
444.44 0.00
1,962.67 11,040.00
1,822.22 0.00
2,555.55 0.00
7,333.33 41,250.00
7,555.55 0.00
4,644.45 0.00
0.00 0.00
5.1,889.05 102,790.00
...
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20 May 21, 2024, Item #8
DETAIL OF RETURN AND INTEREST RECEIVED
For the period March 1, 2024 -March 31, 2024
Cusip Description
Government Bonds
91282CAJO USA TREASURY 0.25% 31 AUG2025
91282CAT8 USA TREASURY 0.2S% 31 OCT2025
912828ZL7 USA TREASURY 0.375% 30APR2025
91282CBC4 USA TREASURY 0.375% 31 DEC2025
91282CBT7 USA TREASURY 0. 7S% 31 MAR2026
91282CCH2 USA TREASURY 1.25% 30JUN2028
91282CDQ1 USA TREASURY 1.25% 31 DEC2026
912828YH7 USA TREASURY 1 .5% 30SEP2024
912828YM6 USA TREASURY 1.5% 31 OCT2024
912828YU8 USA TREASURY 1.625% 30NOV2026
912828YYO USA TREASURY 1. 75% 31 DEC2024
912828X70 USA TREASURY 2% 30APR2024
9128283F5 USA TREASURY 2.25% 15NOV2027
91282CEF4 USA TREASURY 2.5% 31 MAR2027
91282CET4 USA TREASURY 2.625% 31 MAY2027
912828XZ8 USA TREASURY 2.75% 30JUN2025
91282CFB2 USA TREASURY 2.75% 31 JUL2027
9128285N6 USA TREASURY 2.875% 30NOV2025
91282CEW7 USA TREASURY 3.25% 30JUN2027
91282CHE4 USA TREASURY 3.625% 31 MAY2028
Accretion
(amortization)
3,213.09
3,047.93
5,410.37
4,819.67
3,785.21
3,901.03
5,316.58
(873.86)
(879.86)
3,719.71
(1,111.43)
(665.76)
1,197.87
1,833.89
2,527.70
2,266.86
2,895.53
2,683.78
916.38
493.49
Realized gain
(loss)
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00 0.00
Change in fair
value
4,210.95
3,796.89
9,062.50
5,839.83
3,062.50
5,445.32
5,048.83
2,871.09
2,964.85
3,000.00
2,382.81
5,462.16
2,105.47
1,601.56
2,890.62
1,640.63
2,671.87
1,328.12
664.85
3,527.35
CITY OF POWAY
Interest earned Interest received
294.84 0.00
255.50 0.00
926.17 0.00
734.55 0.00
889.34 0.00
1,809.75 0.00
2,501.72 0.00
1,270.49 0.00
1,405.22 0.00
2,202.19 0.00
1,490.38 0.00
3,406.60 0.00
2,107.83 0.00
2,117.49 0.00
4,446.72 0.00
3,513.05 0.00
4,215.66 0.00
4,139.69 0.00
2,048.21 0.00
6,447.75 0.00
...
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21 May 21, 2024, Item #8
DETAIL OF RETURN AND INTEREST RECEIVED
For the period March 1, 2024 -March 31, 2024
cusip Description
Government Bonds
91282CFUO USA TREASURY 4.125% 31 OCT2027
Total Government Bonds
Accretion
(amortization)
450.38
44,948.56
Realized gain
(loss)
0.00 0.00
:,x,r,:
Change in fair
value
1,476.55
71,054.75
CITY OF POWAY
Interest earned Interest received
7,377.41
53,600.56
0.00 0.00
waJ:J. .. ~J -11
...
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22 May 21, 2024, Item #8
TRANSACTION REPORT
CITY OF POWAY
For the period March 1, 2024 -March 31, 2024
Trade date Cusip Transaction Sec type Description Maturity Par value or Realized Prfncipal Interest Transaction total Settle date shares gain(loss)
03/01/2024 194162AR4 Income Corporate Bonds COLGATE-PALMOLIVE CO 4.6% 03/01/2028 2,400,000.00 0.00 0.00 55,200.00 55,200.00 03/01/2024
03/01/2024 3133EPUW3 Income Government Agencies FEDERAL FARM CREDIT BANK 09/01/2026 2,000,000.00 0.00 0.00 47,500.00 47,500.00 03/01/2024
03/04/2024 17275RAN2 Income Corporate Bonds CISCO SYS INC 3.625% 03104/2024 1,000,000.00 0.00 0.00 18,125.00 18,125.00 03/04/2024
03/04/2024 17275RAN2 Capital Change Corporate Bonds CISCO SYS INC 3.625% 03/04/2024 (1,000,000.00) 0.00 1,000,000.00 0.00 1,000,000.00 03/04/2024
03/05/2024 3130ALHHO Income Government Agencies FEDERAL HOME LOAN BANK 0310512026 2,300,000.00 0.00 0.00 11,040.00 11,040.00 03/05/2024
03/09/2024 02665WBH3 Income Corporate Bonds AMERICAN HONDA FINANCE 09109/2026 1,100,000.00 0.00 0.00 12,650.00 12,650.00 03/11/2024
03/10/2024 3130A THWO Income Government Agencies FEDERAL HOME LOAN BANK 09/10/2027 2,000,000.00 0.00 0.00 41,250.00 41,250.00 03/10/2024
03/11/2024 24422ETC3 Income Corporate Bonds
JOHN DEERE CAPITAL CORP 09/11/2025 1,000,000.00 0.00 0.00 17,000.00 17,000.00 03/11/2024
03/12/2024 037833DB3 Income Corporate Bonds APPLE INC 2.9% 12SEP2027 09/12/2027 1,300,000.00 0.00 0.00 18,850.00 18,850.00 03/12/2024
03/15/2024 24422EWK1 Income Corporate Bonds JOHN DEERE CAPITAL CORP 09/15/2027 1,000,000.00 0.00 0.00 20,750.00 20,750.00 03/15/2024
03/25/2024 17275RBQ4 Bought Corporate Bonds CISCO SYSTEMS INC 4.8% 02126/2027 1,250,000.00 0.00 (1,253,775.00) (5,333.33) (1,259,108.33) 03/28/2024
03/2512024 3133EP5U5 Bought Government Agencies FEDERAL FARM CREDIT BANK 03/20/2029 2,000,000.00 0.00 (1,985,860.00) (1,833.33) (1,987,693.33) 03/28/2024
03/28/2024 3133EMBE1 Income Government Agencies FEDERAL FARM CREDIT BANK 03/28/2024 2,000,000.00 0.00 0.00 3,000.00 3,000.00 03/28/2024
03/28/2024 3133EMBE1 Capital Change Government Agencies FEDERAL FARM CREDIT BANK 03/28/2024 (2,000,000.00) 0.00 2,000,000.00 0.00 2,000,000.00 03/28/2024
03/29/2024 17325FBB3 Income Corporate Bonds CITIBANK NA 5.803% 09/29/2028 1,000,000.00 0.00 0.00 29,015.00 29,015.00 03/29/2024
03/31/2024 Income
Cash and Cash Equivalents Cash 0.00 0.00 0.00 684.95 684.95 ...
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23 May 21, 2024, Item #8
ADDITIONAL INFORMATION
As of March 31, 2024
CITY OF POWAY
Past 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 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 your 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,S00,760 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 orthat future investment decisions will be profitable or will equal 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.S Treasury and U.S 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 ofTreasury 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. ...
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24 May 21, 2024, Item #8
ADDITIONAL INFORMATION
As of March 31, 2024
Insight 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.
CITY OF POWAY
Insight 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. © 202_4 Insight Investment. All rights reserved.
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25 May 21, 2024, Item #8
City of Poway Investments & Cash with Fiscal Agent; Non-Managed Investments; General, Payroll & Petty Cash March 2024
Part I
Investments & Cash with Fiscal Agents
Settlement Yield to Days to % of Total Face ~r Book Market I
Unrealized
INVESTMENT DESCRIPTION Date Maturity Maturity Investment Value Value Value Gain(Loss) 1st Arn Gov't Obligations Money Mkt Fd 03131124 I Various! 1 I 100.00%1 $516,124.01 I' $516,124.01 so.oo I l .
-
I' I
Jr -I
... ----
I
... ---
I
-
1r I -I 1 •
Average/Total I Various! 1 I 100.00%1 $516, 124.01 $516,124.01 1 so.oo 1 - Paying Agent or Uninvested Cash & DITs
'
$0.00
--r Total Investments and Cash with Fiscal Agent $516, 124.01 Part II
Non-Managed Investments
Settlement Yield to Days to % of Total Face
1 •
Book
I
Market
I
Unrealized
INVESTMENT DESCRIPTION Maturity Investment Value Value Value Gain(Loss) Date Maturity County Pool 03/31/241 3.17%1 1 I 100.00%1 s181 ,813.33 I $181,813.331 s177,647.oo 1 ($4, 166.33)1 I I I I I I -l r 3.17%1 I 100.00%1 $181,813.331 $181,813.331 s1n,647.oo I ($4, 166.33)1 Average /Total NIA --
Part Ill
Gen!!_ral, PaJlroll & PettJl Cash
l Book
Value
General Cash (Union Bank) $1,663,796.42
Payroll Cash (Union Bank) $20,000.00
-· ---- Emergency Cash (Union Bank) $10,000.00
- Grant Cash (Union Bank) $0.00
Flexible Benefits Cash (Union Bank) -------·------
I $30,000.00
Petty Cash
~~--~-- -I $8,600.00
Total Cash -
-~
I s1, 732,396.42 I ~--------------___ _J
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May 21, 2024, Item #9
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AG EN DA REPORT City of Poway
May 21, 2024
Honorable Mayor and Members of the City Council
Brad Rosen, Interim Director of Finance ·~
Mehrnoush Jamshidi, Finance Manager€
858-668-4426 or [email protected]
Annual Investment Policy Review
CITY COUNCIL
Pursuant to California Government Code Sec. 53646 and the City's Investment Policy (Policy), the Director of Finance serving in the capacity as City Treasurer is submitting the Policy to the City Council for its annual review. This Policy is an important tool for ensuring the stewardship of the City's financial resources. Staff is not proposing any changes to the Policy.
Recommended Action:
Staff is not recommending any changes to the policy. This item is a report and file only.
Discussion:
The City of Poway invests its funds according to parameters set forth in the City's adopted Policy. The Policy is consistent with California Government Code Section 53600, et seq. which provides standards regarding investment policies and reports, securities, and repurchase agreements for local agencies.
The Policy was last modified and/or reviewed on November 15, 2022.
Since July 1, 1996, the City has worked with an investment advisor to assist in the administration of the City's investment portfolio. The current investment advisor is Insight Investment, an investment firm of BNY Mellon Investment Management. The Policy defines the role of the City's investment advisor and the procedures to be followed. The Investment Oversight Committee (Committee) comprised of the Director of Finance, the Finance Manager, and the Senior Accountant, oversees the investment of the City's funds. This Committee works with the investment advisor to ensure the Policy is being followed.
Based on a review of the Policy, the Committee and investment advisor have no proposed changes to the current investment policy. The policy is included as Attachment A for reference. 1 of 12
May 21, 2024, Item #9
Environmental
Review:
This
action
is
not
subject
to
review
under
the
California
Environmental
Quality
Act
(CEQA).
Fiscal
Impact:
The
Investment
Policy
is
designed
to
enhance
the
economic
status
of
the
City
while
protecting
its
funds. Public
Notification:
None. Attachments: A.
Investment
Policy
Reviewed/Approved
By:
Assistant
City
Manager
2 of
12 Reviewed
By:
Alan
Fenstermacher
City
Attorney
Approved
By:
City
Manager
May 21, 2024, Item #9
CITY OF POWAY
INVESTMENT POLICY
Dated: May 21, 2024
The City of Poway (the City) has adopted this Investment Policy (Policy) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the City. All City funds will be invested in accordance with this Policy and with applicable sections of the California Government Code.
This Policy replaces any previous Policy or investment procedures of the City.
SCOPE
The provisions of this Policy shall apply to all financial assets and investment activities of the City as accounted for in the City's Comprehensive Annual Financial Report. The employees' retirement and deferred compensation funds are not covered by this Policy. Also, bond reserve funds will be invested in accordance with each bond issue's indenture agreement.
All cash shall be pooled for investment purposes. The investment income derived from the pooled investment account shall be allocated to the General Fund, the Water Fund, the Sewer Fund, and other funds as budgeted or required by legislation based upon the proportion of the respective average balances relative to the total pooled balance. Investment income shall be distributed to the individual funds not less than annually.
OBJECTIVES
The City's funds shall be invested in accordance with all applicable City resolutions, California statutes, and Federal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:
1. Preservation of capital and protection of investment principal.
2. Maintenance of sufficient liquidity to meet anticipated cash flows.
3. Attainment of a market rate of return.
4. Diversification to avoid incurring unreasonable market risks.
ATTACHMENT A
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May 21, 2024, Item #9
DELEGATION OF AUTHORITY
In accordance with City of Poway Resolution No. 21-064, the City Treasurer/Finance Department is authorized to invest the City's funds in accordance with the California Government Code Section 53607. The City's Director of Finance serves as the Treasurer. The Director of Finance may delegate the authority to conduct investment transactions and to manage the operation of the investment portfolio to other specifically authorized staff members. No person may engage in an investment transaction except as expressly provided under the terms of this Policy.
The Director of Finance shall develop administrative procedures and internal controls, consistent with this Policy, for the operation of the City's investment program. Such procedures shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, or imprudent actions by employees of the City.
The City may engage the support services of outside investment advisors with respect to its investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the City's financial resources. If an investment advisor is selected to help manage the investment program, a City Investment Oversight Committee shall be kept informed of the changing investment environment and any potential restructuring of the portfolio which could result. This Investment Committee shall consist of the Director of Finance, the Finance Manager, and the Senior Accountant.
PRUDENCE
The standard of prudence to be used for managing the City's investment program is California Government Code Section 53600.3, the prudent investor standard, which states that "when investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency."
The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally without risk and that the investment activities of the City are a matter of public record. Accordingly, the City recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City.
The Director of Finance and authorized investment personnel acting in accordance with established procedures and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion to the City Council and appropriate action is taken to control adverse developments.
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May 21, 2024, Item #9
ETHICS AND CONFLICTS OF INTEREST
Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City's investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall subordinate their personal investment transactions to those of the City. In addition, City Councilmembers, the Director of Finance, the Finance Manager, and the Senior Accountant shall file a Statement of Economic Interests each year as required by California Government Code Section 87203 and regulations of the Fair Political Practices Commission.
AUTHORIZED SECURITIES AND TRANSACTIONS
All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609, and 53630-53686. Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted.
The City shall not knowingly make any investments in any institution, company, corporation, subsidiary, or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual preference, or physical disability.
The City has further restricted the eligible types of securities and transactions as follows:
1. United States Treasury bills, notes, or bonds with a final maturity not exceeding five years from the date of trade settlement. There is no limit on the percentage of the portfolio that may be invested in U.S. Treasury securities.
2. Government Securities
Government Securities in the aggregate shall not exceed 75% of the City's total portfolio. • Federal Instrumentality Obligations (government sponsored enterprises) with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio.
• Federal Agency Obligations with a final maturity not exceeding five years from the date of trade settlement. No more than 25% of the City's total portfolio shall be invested in any one issuer and the aggregate amount shall not exceed 75% of the City's total portfolio. • Mortgage-Related Securities, including Federal Agency and Federal Instrumentality mortgage-backed securities and collateralized mortgage obligations. Such securities shall not exceed five years from the date of trade settlement and must be rated at least "AAA" by at least one Nationally Recognized Statistical Ratings Organization (NRSRO) and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in the combination of Mortgage-Related Securities and Asset-Backed Securities.
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May 21, 2024, Item #9
3. Supranationals are United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of "AA" or its equivalent or better by an NRSRO. No more than 30% of the City's total portfolio shall be invested pursuant to this section.
4. Corporate Securities
No more than 5% of the City's portfolio shall be invested in the obligations of any one corporate issuer. Rule 144A (private placement) securities are prohibited from purchase. • Medium-Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Such securities shall have a final maturity not exceeding five years from the date of trade settlement and shall be rated at least "A", or the equivalent, by an NRSRO. No more than 30% of the City's total portfolio shall be invested in Medium-term Notes.
• Asset-Backed Securities including equipment lease-backed certificates, consumer receivable pass-through certificates, or consumer-receivable-backed bonds. Such securities shall not exceed five years from the date of trade settlement and must be rated at least "AAA" by at least one NRSRO and issued by an issuer rated at least "A" or the equivalent by an NRSRO. No more than 20% of the City's total portfolio shall be invested in Mortgage-Related Securities and Asset-Backed Securities. • Prime Commercial Paper with a maturity not exceeding 270 days from the date of trade settlement and rated at least "A-1", or the equivalent, by an NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph A. or sub-paragraph B. below:
A. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of $500,000,000 and (3) have debt other than commercial paper, if any, that is rated at least "A" or the equivalent by an NRSRO.
B. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated at least "A-1" or the equivalent by an NRSRO.
Investment in commercial paper shall not exceed 25% of the City's total portfolio.
5. Municipal Bonds including registered notes or bonds of any of the 50 states, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the 50 states.
In addition, bonds, notes, warrants, or other evidences of indebtedness of any local agency in California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
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May 21, 2024, Item #9
Municipal Bonds must be rated at least "A" or the equivalent by an NRSRO with maturities not exceeding five years from the date of trade settlement. No more than 5% of the City's portfolio shall be invested in the obligations of any one issuer, and the aggregate investment in municipal bonds shall not exceed 30% of the City's total portfolio.
6. Negotiable Certificates of Deposits (CDs) of commercial banks rated at least "A-1", or the equivalent, with maturities not exceeding five years from the date of trade settlement. In addition, the City may not invest in the CD of a state or federal credit union where any person with investment decision making authority at the City also serves on the board of directors, or any committee appointed by the board of directors, or the credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificates of deposit. No more than 5% of the portfolio may be invested in the CDs of any one issuer, and the aggregate investment in CDs shall not exceed 30% of the portfolio.
7. Non-negotiable Certificates of Deposit and savings deposits with a maturity not exceeding five years from the date of trade settlement, in FDIC insured state or nationally chartered banks or savings banks that qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5.
Deposits in excess of the insured amount shall be secured pursuant to California Government Code Section 53651 and 53652. The City shall comply with and act to secure compliance with the security (collateralization) system specified in the Government Code Section 53649 and 53652.
8. Eligible Banker's Acceptances with a maturity not exceeding 180 days from the date of trade settlement, drawn on and accepted by a commercial bank whose senior long-term debt is rated at least "A", or the equivalent, by an NRSRO at the time of purchase. Banker's Acceptances shall be rated at least "A-1", or the equivalent, at the time of purchase by an NRSRO. No more than 5% of the City's total portfolio shall be invested in banker's acceptances of any one bank and the aggregate investment in banker's acceptances shall not exceed 40% of the City's total portfolio.
9. Money Market Funds registered under the Investment Company Act of 1940 that (1) are "no load" (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in the applicable California statutes and (4) have a rating of at least "AAA", or the equivalent by at least two NRSROs. No more than 10% of the portfolio may be invested in any one fund and the aggregate investment in money market funds shall not exceed 20% of the City's total portfolio.
10. Shares of Beneficial Interest issued by a joint powers authority (e.g., CalTRUST) organized pursuant to Section 6509. 7 that invest in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment advisor that:
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(1) is registered or exempt from registration with the Securities and Exchange Commission.
(2) has at least five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o), inclusive, of California Government Code Section 53601.
(3) has assets under management in excess of $500,000,000.
May 21, 2024, Item #9
11. State of California's Local Agency Investment Fund (LAIF). pursuant to California Government Code Section 16429.1.
12. The San Diego County Investment Pool. The City may invest in this investment pool, established by the San Diego County Treasurer for the benefit of local public agencies.
The foregoing list of authorized securities and transactions shall be strictly interpreted. Any deviation from this list must be preapproved by resolution of the City Council.
INVESTMENT MANAGEMENT
If the City has employed an external investment advisor to help manage its portfolio, the investment advisor shall be bound by the aforementioned list of authorized securities, the state and local laws and regulations that govern the investment activity of the City, and the following additional parameters.
• While it is understood that occasionally it may be in the best interest of the City to take losses in its security portfolio, losses taken to increase the yield in the portfolio may only . be taken if the increased yield results in the loss being recouped in one year or less.
Credit-related losses on the other hand are taken to prevent potentially larger losses in the future. When possible, the investment advisor will get prior approval of the City before taking credit-related losses. In any case, the City will be notified as soon as possible about any losses taken in the portfolio.
• Securities that are downgraded by one or more rating agency to below the ratings required by this Policy do not have to be sold. However, the investment advisor will immediately notify the City of the downgrade. The advisor will prepare a credit report on the downgraded security and forward it to the City.
While the City entrusts its investment portfolio to the advisor, the City retains the right to ultimately make the decisions on how to invest its monies.
INVESTMENT DIVERSIFICATION
The City shall diversify its investments to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. Nevertheless, the asset allocation in the investment portfolio should be flexible depending upon the outlook for the economy, the securities markets and the City's anticipated cash flow needs.
PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment at least three months prior to the date of investment. 8 of 12
May 21, 2024, Item #9
SELECTION OF BROKER/DEALERS
The Finance Manager shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the City to purchase securities only from those brokers and the firms they represent. Each approved broker/dealer must possess an authorizing certificate from the California Commissioner of Corporations as required by Section 2521 O of the California Corporations Code.
To be eligible, a firm must meet at least one of the following criteria:
1. Be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or
2. Report voluntarily to the Federal Reserve Bank of New York, or
3. Qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).
The City may engage the services of investment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved broker/dealers.
Such broker/dealers will comply with the selection criteria above and the list of approved firms shall be provided to the City on an annual basis or upon request.
In the event that an external investment advisor is not used in the process of recommending a particular transaction in the City's portfolio, authorized broker/dealers shall attest in writing that they have received a copy of this Policy and each authorized broker/dealer shall be required to submit and annually update a City approved Broker/Dealer Information Request form that includes the firm's most recent financial statements.
The City may purchase commercial paper from direct issuers even though they are not on the approved broker/dealers list as long as they meet the criteria outlined in Item 4 of the Authorized Securities and Transactions section of this Policy.
COMPETITIVE TRANSACTIONS
All investment transactions shall be conducted competitively with authorized broker/dealers.
At least three broker/dealers shall be contacted for each transaction and their bid or offering prices shall be recorded.
If the City is offered a security for which there is no other readily available competitive offering, then the Finance Manager will document quotations for comparable or alternative securities.
SELECTION OF BANKS
The Finance Manager shall maintain a list of FDIC insured banks approved to provide depository and other banking services for the City. To be eligible, a bank shall qualify as a depository of public funds in the State of California as defined in California Government Code Section 53630.5 and shall secure deposits in excess of FDIC insurance coverage in accordance with California Government Code Section 53652. 9 of 12
May 21, 2024, Item #9
SAFEKEEPING
AND
CUSTODY
The
Finance
Manager
shall
select
one
or
more
banks
to
provide
safekeeping
and
custodial
services
for
the
City
. A
Safekeeping
Agreement
approved
by
the
City
shall
be
executed
with
each
custodian
bank
prior
to
utilizing
that
bank's
safekeeping
services
.
Custodian
banks
will
be
selected
on
the
basis
of
their
ability
to
provide
services
for
the
City's
account
and
the
competitive
pricing
of
their
safekeeping
related
services
.
The
purchase
and
sale
of
securities
and
repurchase
agreement transactions
shall
be
settled
on
a
delivery
versus
payment
basis.
All
securities
shall
be
perfected
in
the
name
of
the
City.
Sufficient
evidence
to
title
shall
be
consistent
with
modern
investment,
banking,
and
commercial
practices
.
All
deliverable
securities
purchased
by
the
City
will
be
delivered
by
book
entry and
will
be
held
in
third-party
safekeeping
by
a
City
approved
custodian
bank
or
its
Depository
Trust
Company
(OTC)
participant
account.
PORTFOLIO
PERFORMANCE
The
investment
portfolio
shall
be
designed
to
attain
a
market
rate
of
return
throughout
budgetary
and
economic
cycles,
taking
into
account
prevailing
market
conditions,
risk
constraints
for
eligible
securities,
and
cash
flow
requirements.
The
performance
of
the
City's
investments
shall
be
compared
to
the
average
yield
on
the
U.S
. Treasury
security
that
most
closely
corresponds
to
the
portfolio's
weighted
average
effective
maturity.
When
comparing
the
performance
of
the
City's
portfolio,
its
rate
of
return
will
be
computed
net
of
all
fees
and
expenses.
REPORTING
Quarterly,
the
Director
of
Finance
shall
submit
to
the
City
Council
a
report
of
the
investment
earnings
and
performance
results
of
the
City's
investment
portfolio
.
The
report
shall
include
the
following
information:
1. Investment
type,
issuer,
date
of
maturity,
par
value
and
dollar
amount
invested
in
all
securities,
and
investments
and
monies
held
by
the
City;
2. A
description
of
the
funds,
investments,
and
programs;
3. A
market
value
as
of
the
date
of
the
report
( or
the
most
recent
valuation
as
to
assets
not
valued
monthly)
and
the
source
of
the
valuation;
4. A
statement
of
compliance
with
the
Investment
Policy
or
an
explanation
for
non
compliance;
and
5. A
statement
of
the
City's
ability
to
meet
expenditure
requirements
for
six
months,
and
an
explanation
of
why
money
will
not
be
available
if that
is
the
case
.
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12 May 21, 2024, Item #9
POLICY REVIEW
This Policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield and diversification, and its relevance to current law and economic trends. Amendments to this Policy shall be approved by resolution of the City Council.
SEGREGATION OF RESPONSIBILITIES
FUNCTION
1.0 Investment Policy:
1.1 Preparation and annual review
of Investment Policy
1.2 Approval of Investment Policy
2.0 Investment Transactions:
2.1 Calculation of cash position
2.2 If applicable, notify investment advisor·
of current available cash
to be invested
2.3 Investment recommendation:
Determination of amount to be invested,
selection of type of investment, and
term of investment •
2.4 Review of investment recommendation
and execution of transaction
3.0 Recording of Transactions:
3.1 In investment subsidiary ledgers
3.2 In accounting records
3.3 Match investment confirmation
to subsidiary ledgers
4.0 Safeguarding of Assets and Records:
4.1 Reconciliation of subsidiary records to
the accounting records
4.2 Reconciliation of subsidiary records to
bank statements and safekeeping records
4.3 Review of financial institutions and
investment brokers' reputation and
financial condition
4.4 Review of collaterals
5.0 Investment portfolio:
5.1 Preparation of investment report
5.2 Review of portfolio for compliance
with stated Investment Policy
5.3 Approval of investment report
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RESPONSIBILITY
Director of Finance/
Oversight Committee
City Council
Sr. Accountant/Finance Mgr.
Written approval by two members
of Oversight Committee
Investment Advisor/
Director of Finance/Finance Mgr.
Written approval by member
of Oversight Committee
Sr. Accountant/Accountant
Sr. Accountant/Accountant
Senior Accountant
Senior Accountant
Senior Accountant
Investment Advisor/
Oversight Committee
Investment Adv./Oversight Comm.
Senior Accountant
Oversight Committee
City Council
May 21, 2024, Item #9
APPROVEDBROKE~DEALERS
The
following
Broker/Dealers
are
approved
for
execution
of
trades.
Broker/Dealers
This
list
of
approved
broker/dealers
is
subject
to
change
at
any
time
based
upon
periodic
recommendations
of
the
investment
advisor
throughout
the
year.
Primary
dealers
or
affiliated
firms
Amherst
Pierpont
Barclays
Capital
BMO
capita
l Markets
BNP
Paribas
Securities
BofA
Securtties
cantor
Fitzgera
ld
&
Co
.
Citigroup
Global
Markets
Daiwa
Capital
Markets
America
Deutsche
Bank
Securities
Goldman
Sachs
&
1Co.
HSBC
Securities
(USA)
Jefferies JP
Morgan
Securities
Mizu110
Securit
ies
USA
Morgan
Stanley
&
Co
.
NatWest
Marke
ts
Securities
Nomura
Securit
ies
International
RBC
Cap
ital
Markets
Santander
US
Cap
ital
Markets
SG
Americas
Securities
TD
Securities
(USA)
UBS
Securi
ties
Wel
ls
Fargo
Securities
12 of
12 Non-primary
dealer
finns
ANZ
Securities
Blaylock
Van
Credit
Agricole
Securities
(USA}
FHN
Fin
anc
ial
Securities
lnsperex Keybanc
cap
ital
Markets
MUFG
Securities
Americas
Oppenheimer
&
co.
Pip
er
Sandler
&
CO.
Raymond
James
&
Assoc
iates
Robert
Vt/.
Ba
ird
&
Co.
Samuel
A.
Ramirez
&
Co
.
Scotia
cap
ital
(USA}
SMBC
Nik
ko
Securities
America
Stifel
Nicolaus
&
Co.
StoneX
!Financial
Truist
Sern
,rities
US
Bancorp
lm,estments
May 21, 2024, Item #10
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AG EN DA REPORT City of Poway
CITY COUNCIL
May 21, 2024
Honorable Mayor and Members of the City Counci~.A . .t
Robert Manis, Director of Development Services rv V
Stan Donn, City Planner Si,{
(858) 668-4604, [email protected]
Approval of Agreement between the City of Poway (the City) and Gary F.
Hoyt Landscape Architecture, Inc. and lnterwest Consulting Group., Inc., for as-needed Landscape Plan Check and Inspection Services The City's current as-needed consultant agreement for landscape plan check and inspection services expired on December 20, 2023, and a new agreement is needed. After a competitive process to obtain as-needed landscape plan check and inspection services and reviewing responses to a Request for Proposal, staff selected Gary F. Hoyt Landscape Architecture, Inc. and lnterwest Consulting Group, Inc., to provide as needed landscape plan check and inspection services. The term of the agreement for Gary F. Hoyt Landscape Architecture, Inc. is retroactive from December 21, 2023, through December 20, 2026, with a provision to mutually extend the agreement with two extensions of one year each. The term of the agreement for lnterwest Consulting Group, Inc. is from May 22, 2024, through May 20, 2027, with a provision to mutually extend the agreement with two extensions of one year each.
Recommended Action:
It is recommended the City Council:
1) Approve the agreement with Gary F. Hoyt Landscape Architecture, Inc. (Attachment A) for as-needed landscape plan check and inspection services, which took effect December 21, 2023, for a period of three years with the ability to extend by one-year increments for up to two additional years.
2) Approve the agreement with lnterwest Consulting Group, Inc. (Attachment B) for as needed landscape plan check and inspection services, effective May 22, 2024, for a period of three years with the ability to extend by one-year increments for up to two additional years.
3) Authorize the City Manager to execute the agreements.
Discussion:
The Development Services Department uses a landscape architecture consultant for as-needed landscape plan check and inspection services. Through multiple contracts, Gary F. Hoyt Landscape Architecture has been the as-needed landscape architect providing the services to the city since 1993. The most recent contract expired on December 20, 2023. 1 of 40
May 21, 2024, Item #10
In November 2023, the City sent out a Request for Proposal for as-needed landscape inspection services which was advertised on Bidnet. Two proposals were received. One from Gary F. Hoyt Landscape Architecture, Inc. and the second from lnterwest Consulting Group, Inc.
Staff reviewed the proposals and selected both consultants based on qualifications, experience, and competitive rates. Both consultants have extensive experience in providing services to public agencies. Having two consultants provides the City with flexibility based on the types of projects and the availability of the consultants.
In December 2011, the City Council approved Resolution 11-068 (Attachment C) establishing the $720 flat fee for landscape projects valued up to $15,000 and the deposit percentages based on the valuation. These remain unchanged, however, the methodology of calculating the valuation of a landscape project is being updated as described below.
Landscape Cost Estimate
Cost for landscape review and inspection is based on the value of a project determined by the cost estimate worksheet.
The City's Landscape Application includes a Standard Landscape Cost Estimate Worksheet that is utilized by the applicant to determine the estimated cost for the landscape improvements for a proposed project (Attachment D). The existing Landscape Cost Estimate Worksheet was established in 1992 and has not been updated since and does not reflect the current costs for landscape improvements. Gary F. Hoyt Landscape Architecture, Inc. prepared an updated Standard Landscape Cost Estimate sheet (Attachment E) that reflects more current industry costs based on their experience reviewing cost estimates for projects throughout the San Diego and Southern California region.
Staff reviewed the proposed Standard Landscape Cost Estimate Worksheet update based on research and comparison to other jurisdictions within the San Diego region to assess whether the proposed update was comparable. The costs varied with some items being similar to the City's existing costs and others higher.
Based on Gary F. Hoyt Landscape Architecture, lnc.'s experience as a landscape architecture firm and Gary Hoyt's over 40 years of experience as a registered Landscape Architect, his familiarity with Poway and other jurisdictions' landscape cost estimates, and staff's comparison of other jurisdictions, staff accepts the updated Standard Landscape Cost Estimate Worksheet as presented.
Environmental Review:
This action to approve the consultant agreements is not a "Project" as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines; therefore, pursuant to the CEQA State Guidelines Section 15060 (c)(3), no environmental review is required.
Fiscal Impact:
Sufficient funds are available for this contract in the adopted Fiscal Year 2023-24 budget. All landscape plan check and inspection services are paid for by the applicants through a flat fee or deposit, depending on the construction valuation, and then remitted to the consultants for services performed.
REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
2 of 40
May 21, 2024, Item #10
Public Notification:
None.
Attachments:
A Standard Agreement for Services with Gary F. Hoyt Landscape Architecture, Inc.
B. Standard Agreement for Services with lnterwest Consulting Group, Inc.
C. Resolution 11-068
D. Standard Landscape Cost Estimate Worksheet (Existing) E. Standard Landscape Cost Estimate Worksheet (Updated) Reviewed/Approved By:
w~~a;:;;::
Assistant City Manager
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Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
c~
City Manager
May 21, 2024, Item #10
City of Poway
STANDARD AGREEMENT FOR SERVICES
This Agreement, entered into this 21st day of December, 2023, by and between the CITY OF POWAY (hereinafter referred to as "City") and GARY F. HOYT LANDSCAPE ARCHITECTURE, INC., (hereinafter referred to as "Consultant").
RECITALS
WHEREAS, City desires to obtain the services of a private consultant to perform as needed landscape architecture plan check and inspections services (Project); WHEREAS, Consultant is a landscape architect consultant and has represented that Consultant possesses the necessary qualifications to provide such services; and WHEREAS, City has authorized the preparation of an agreement to retain the services of Consultant as hereinafter set forth.
NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONSUL TANT ON THE FOLLOWING TERMS AND CONDITIONS:
1. Scope of Services.
Consultant shall provide services as described in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
2. Compensation and Reimbursement.
City shall compensate and reimburse Consultant as provided in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
3. Term of Agreement.
The term of this Agreement shall be as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
4. Termination.
This Agreement may be terminated with or without cause by City. Termination without cause shall be effective only upon 60-day written notice to Consultant. During said 60- day period Consultant shall perform all consulting services in accordance with this Agreement.
This Agreement may be terminated by City for cause in the event of a material breach of this Agreement, misrepresentation by Consultant in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City.
Termination for cause shall be effected by delivery of written notice of termination to Consultant.
Such termination shall be effective upon delivery of said notice. 4 of40 ATTACHMENT A
May 21, 2024, Item #10
5. Confidential Relationship.
City may from time to time communicate to Consultant certain information to enable Consultant to effectively perform the services. Consultant shall treat all such information as confidential, whether or not so identified, and shall not disclose any part thereof without the prior written consent of the City. Consultant shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services.
The foregoing obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of Consultant, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of Consultant without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to Consultant by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party.
Consultant shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this contract without the prior written consent of the City. In its performance hereunder, Consultant shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation.
6. Office Space and Clerical Support.
Consultant shall provide its own office space and clerical support at its sole cost and expense.
7. Covenant Against Contingent Fees.
Consultant declares that it has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of the Agreement. For breach of violation of this warranty, City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
8. Ownership of Documents.
All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement shall be the property of City and shall be delivered to City by Consultant upon demand.
9. Conflict of Interest and Political Reform Act Obligations.
During the term of this Agreement Consultant shall not act as consultant or perform services of any kind for any person or entity whose interests conflict in any way with those of the City of Poway. Consultant shall at all times comply with the terms of the Political Reform Act and the local conflict of interest code. Consultant shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Consultant has a financial interest as defined in Government Code Section 87103.
Consultant represents that it has no knowledge of any financial interests which would require it to disqualify itself from any matter on which it might perform services for the City. 5 of 40 2
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"Consultant" means an individual who, pursuant to a contract with a state or local agency:
(A) Makes a governmental decision whether to:
1. Approve a rate, rule or regulation;
2. Adopt or enforce a law;
3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement;
4. Authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires City approval;
5. Grant City approval to a contract that requires City approval and to which the City is a party, or to the specifications for such a contract;
6. Grant City approval to a plan, design, report, study, or similar item;
7. Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or
(B) Serves in a staff capacity with the City and in that capacity participates in making a governmental decision as defined in the Political Reform Act and/or implementing regulations promulgated by the Fair Political Practices Commission, or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code.
DISCLOSURE DETERMINATION:
[8] 1. Consultant/Contractor will not be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above.
No disclosure required.
D 2. Consultant/Contractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, Consultant/Contractor shall be required to file a Statement of Economic Interest with the City Clerk of the City of Poway in a timely manner as required by law.
Robert J. Manis, Director of Development Services
10. No Assignments.
Neither any part nor all of this Agreement may be assigned or subcontracted, except as otherwise specifically provided herein, or to which City, in its sole discretion, consents to in advance thereof in writing. Any assignment or subcontracting in violation of this provision shall be void.
11. Maintenance of Records.
Consultant shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the contract period and for three 6 of 40 3
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(3) years from the date of final payment under this Agreement, for inspection by City and copies thereof shall be furnished, if requested.
12. Independent Contractor.
At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of the City of Poway. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes such services.
13. Licenses, Permits, Etc.
Consultant represents and declares to City that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for Consultant to practice its profession.
14. Consultant's Insurance.
Consultant shall provide insurance as set forth in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
15. Indemnification.
(a) For Claims (as defined herein) other than those alleged to arise from Consultant's negligent performance of professional services, City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "lndemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless lndemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses, including reasonable attorneys' fees and disbursements (collectively "Claims"), which lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of Consultant's negligent performance under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees. (b) For Claims alleged to arise from Consultant's negligent performance of professional services, lndemnitees shall have no liability to Consultant or any other person for, and Consultant shall indemnify and hold harmless lndemnitees from and against, any and all Claims that lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise to the extent occurring as a result of Consultant's negligent performance of any professional services under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees, committed in performing any of professional services under this Agreement. For Claims alleged to arise from Consultant's professional services, Consultant's defense obligation to lndemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Consultant's negligence.
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(c) The foregoing obligations of Consultant shall not apply to the extent that the Claims arise from the sole negligence or willful misconduct of City or its elected and appointed boards, officials, officers, agents, employees and volunteers. (d) In any and all Claims against City by any employees of the Consultant, anyone directly or indirectly employed by it or anyone for whose acts it may be liable, the indemnification obligation under this Section 15 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Consultant under worker's compensation acts, disability benefit acts or other employee benefit acts. (e) Consultant shall, upon receipt of written notice of any Claim, promptly take all action necessary to make a claim under any applicable insurance policy or policies Consultant is carrying and maintaining; however, if Consultant fails to take such action as is necessary to make a claim under any such insurance policy, Consultant shall reimburse City for any and all costs, charges, expenses, damages and liabilities incurred by City in making any claim on behalf of Consultant under any insurance policy or policies required pursuant to this Agreement. (f) The obligations described in Section 15(a) through (e) above shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person indemnified pursuant to this Section 15. (g) The rights and obligations of the parties described in this Section 15 shall survive the termination of this Agreement.
16. Assumption of Risk.
Except for injuries to persons caused by the willful misconduct of any lndemnitee and not covered by insurance maintained, or required by this Agreement to be maintained, by Consultant: (a) Consultant hereby assumes the risk of any and all injury and damage to the personnel (including death) and property of Consultant that occurs in the course of, or in connection with, the performance of Consultant's obligations under this Agreement, including but not limited to Consultant's Scope of Services; and (b) it is hereby agreed that the lndemnitees are not to be liable for injury or damage which may be sustained by the person, goods or property of Consultant or its employees in connection with Consultant's performance its obligations under this Agreement, including but not limited to Consultant's Scope of Services.
17. Consultant Not an Agent.
Except as City may specify in writing, Consultant shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent.
Consultant shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
18. Personnel.
Consultant shall assign qualified and certified personnel to perform requested services. The City shall have the right to review and disapprove personnel for assignment to Poway projects.
City shall have the unrestricted right to order the removal of any person(s) assigned by Consultant by giving oral or written notice to Consultant to such effect. 8 of 40 5
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Consultant's personnel shall at all times comply with City's drug and alcohol policies then in effect.
19. Notices.
Notices shall be given as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
20. Governing Law, Forum Selection and Attorneys' Fees.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Each party to this Agreement consents to personal jurisdiction in San Diego County, California, and hereby authorizes and accepts service of process sufficient for personal jurisdiction by first class mail, registered or certified, postage prepaid, to its address for giving notice as set forth in Exhibit "A" hereto. Any action to enforce or interpret the terms or conditions of this Agreement shall be brought in the Superior Court in San Diego County, Central Division, unless the parties mutually agree to submit their dispute to arbitration.
Consultant hereby waives any right to remove any such action from San Diego County as is otherwise permitted by California Code of Civil Procedure section 394. The prevailing party in any such action or proceeding shall be entitled to recover all of its reasonable litigation expenses, including its expert fees, attorneys' fees, courts costs, arbitration costs, and any other fees. Notwithstanding the foregoing, in the event that the subject of such an action is compensation claimed by Consultant in the event of termination, Consultant's damages shall be limited to compensation for the 60-day period for which Consultant would have been entitled to receive compensation if terminated without cause, and neither party shall be entitled to recover their litigation expenses.
21. Gender.
Whether referred to in the masculine, feminine, or as "it," "Consultant" shall mean the individual or corporate consultant and any and all employees of consultant providing services hereunder.
22. Counterparts.
This Agreement (and any amendments) may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. Documents delivered by telephonic facsimile transmission shall be valid and binding.
23. Entire Agreement.
This Agreement shall constitute the entire understanding between Consultant and City relating to the terms and conditions of the services to be performed by Consultant. No agreements, representations or promises made by either party, whether oral or in writing, shall be of any force or effect unless it is in writing and executed by the party to be bound thereby.
24. Certification and Indemnification Regarding Public Employees' Retirement Law/Pension Reform Act of 2013.
Contractor hereby certifies that all persons providing services to City by Contractor are not current members of the California Public Employees' Retirement System (CalPERS) and shall not become members of CalPERS while providing services to City. 9 of40 6
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Contractor further provides that in the event Contractor assigns a retired annuitant receiving a pension benefit from CalPERS to perform services for City, the retired annuitant is in full compliance with Government Code section 7522.56. A copy of Government Code section 7522.56 is attached hereto as Exhibit "B." Further, Contractor hereby fully and unconditionally indemnifies City from all penalties, fees, employer and employee contributions, or any other assessments imposed by CalPERS in the event CalPERS determines the person assigned by Contractor to provide services to City has been misclassified.
25. Severability.
If any provision of this Agreement is determined by any court of competent jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this Agreement shall remain in effect.
(Remainder of page intentionally left blank)
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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written.
CITY OF POWAY
By: __________ _
Chris Hazeltine, City Manager
Date: ___________ _
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
By: ____________ _
Alan Fenstermacher, City Attorney
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GARY F. HOYT LANDSCAPE
ARCHITECTURE, INC.
By:------------
Gary F. Hoyt, PresidenUCEO
Date: ___________ _
May 21, 2024, Item #10
A.
"SPECIAL PROVISIONS"
EXHIBIT "A"
Scope of Services.
Consultant shall provide the necessary qualified personnel to perform the services listed below. Consultant shall provide all labor, materials, and equipment necessary for landscape plan check and inspection services as required by City, which shall include but not be limited to the following:
1. Plan Check Services
a. Perform irrigation and landscape plan review of construction plans within ten business days, or as otherwise directed, for the entire plan check process including re-checks. Include recommendations based on experience with maintenance and growth rates of plant materials.
b. Provide a rapid turnaround of the reviewed plans while ensuring a quality review process. Typical turnaround times for City of Poway are one to two weeks depending on the complexity of the project.
c. Review conceptual landscape plans for projects during entitlement process, as needed.
d. Review and comment on existing and proposed regulations and policies based on new State and Federal Statutes and as directed.
e. Meet with staff and applicants when requested by staff. f. Review tree removal permits on private property, as needed. g. Attend pre-construction meetings, as needed.
h. Develop and maintain written lists of corrections needed to have the submitted plans conform to the applicable codes and regulations.
i. Transmit such correction lists to, and consult with, the applicant or design professional as necessary in order to explain the corrections to be made to have the proposed construction conform to the applicable codes and regulations. Issue the necessary approvals when, in the Consultant's opinion, the plans appear to be complete, have met all applicable state and local requirements and corrections are addressed.
j. Update permit tracking software and transmit corrections to applicant and landscape designer or architect.
2. Field Inspection Services
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a. Perform field inspections within two business days upon request, or as otherwise directed, including but not limited to, inspections of plant materials (including sizing, type, height and location); its irrigation main lines, main line pressure checks, irrigation coverage (ensure spray and drip systems are functioning with minimal overspray), review/approval of plant material for City projects, required plant coverage and tree/shrubs per acre, and fire management plans: (1) during construction; and (2) prior to issuance of building certificate of occu·pancy to determine compliance with applicable codes and regulations. b. Develop and maintain written lists of corrections needed to have the physical improvements conform to the approved plans and applicable codes and regulations.
c. Transmit such correction lists to, and consult with, the applicant or design professional or contractor as necessary in order to explain the corrections to be 1 May 21, 2024, Item #10
made to have the physical improvements conform to the approved plans and applicable codes and regulations.
d. Update permit tracking software and transmit corrections to applicant, contractor and landscape designer or architect.
3. Management Approach
a. The Consultant must reflect professionalism and courtesy when dealing with the public and City staff.
b. The Consultant will provide copies of all correspondence records, inspection reports, and approval reports to the Department of Development Services. c. The Consultant will invoice the Department of Development Services for services rendered in a manner consistent with City standards as approved by the City's Finance Division.
d. The City shall collect all fees in connection with the Consultant performing the work set forth in this proposal and under no condition will such fees be collected by the Consultant.
e. Consistent with the authority contained in the law, the Consultant shall have the decision authority consistent with and necessary for the timely and proper enforcement of the laws and ordinances assigned to the Consultant for enforcement, and such decisions shall be consistent with the wording of the regulations.
f. The Consultant shall provide its own office space and clerical support at its sole cost and expense. Specific accommodations to the Consultant by the City may be permitted on a case-by-case basis if such accommodations are of no additional cost to the City.
g. Phone calls, text messages and emails shall be responded to within 24 hours with a reasonable timeline for completeness of requests. h. Priorities may be shifted or reorganized in order to expedite certain project reviews and inspections.
B. Compensation and Reimbursement.
City shall pay Consultant a fee in accordance with the Fee Proposals submitted with the proposals, which are included in this document as Attachment 1. Consultant's fee shall include and Consultant shall be responsible for the payment of all federal, state, and local taxes of any kind which are attributable to the compensation received.
In addition to said consulting fee, Consultant shall be reimbursed for all reasonable expenses, including lodging, telephone, and travel (air, auto, rail) necessarily incurred in performance of the services. Consultant shall bill City for such expenses as incurred, referencing this Agreement. All expenses shall be itemized and supported by receipts for amounts in excess of Twenty-Five Dollars ($25.00). Statements for reimbursement of expenses shall be paid within ten (10) days of approval by City. All air travel shall be billed at coach or special fare rates. Reimbursement for lodging is limited to travel from outside of San Diego County. Consultant shall receive prior authorization for air travel and lodging expenses. All other expenses shall be reimbursed in accordance with City's cash disbursement policies in effect at the time incurred.
C. Term of Agreement.
This Agreement shall be effective from the period commencing December 21, 2023, and ending December 20, 2026, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." This Agreement may be extended for up to two additional one-year periods upon approval in writing of the City Manager and Consultant. Upon 13 of 40 2
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expiration or termination of this Agreement, Consultant shall return to City any and all equipment, documents or materials and all copies made thereof which Consultant received from City or produced for City for the purposes of this Agreement.
D. Consultant's Insurance.
1. Coverages:
Consultant shall obtain and maintain during the life of this Agreement all of the following insurance coverages:
(a) Comprehensive General Liability, including premises-operations, products/completed, broad form property damage, and blanket contractual liability with the following coverages: General Liability $1,000,000 Bodily Injury and Property Damage combined each occurrence and $2,000,000 aggregate.
(b) Automobile Liability, including owned, hired, and non-owned vehicles: $1,000,000 combined single limit.
(c) Consultant shall obtain and maintain, during the life of the Agreement, a policy of Professional Errors and Omissions Liability Insurance with policy limits of not less than $1,000,000 combined single limits, per claim and annual aggregate. (d) Workers' Compensation insurance in statutory amount. All of the endorsements which are required above shall be obtained for the policy of Workers' Compensation insurance.
2. Endorsements:
Endorsements shall be obtained so that each policy contains the following three provisions:
(a) Additional Insured. (Not required for Professional Errors and Omissions Liability Insurance or Workers' Compensation.) "City of Poway and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice.
"Said policy shall not terminate, nor shall it be canceled, until thirty (30) days after written notice is given to City."
(c) Primary Coverage.
"The policy provides primary coverage to City and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City."
3. Insurance Certificates:
Consultant shall provide City certificates of insurance showing the insurance coverages described in the paragraphs above, in a form and content approved by City, prior to beginning work under this Agreement.
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E. Notices.
All notices, billings and payments hereunder shall be in writing and sent to the following addresses:
To City:
To Consultant:
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City of Poway -Development Services
13325 Civic Center Drive
Poway, CA 92064
Gary F. Hoyt Landscape Architecture, Inc.
12888 Francine Terrace
Poway, CA 92064
May 21, 2024, Item #10
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Attachment 1
FEE PROPOSAL
Gary F. Hoyt Landscape Architecture, Inc.
compensation to provide landscape plan check and inspection and other related services to the City of Poway is outlined below.
1. Flat fee for plan checks, re-checks, and inspections for projects with a construction valuation of$1.00 to $15,000.00:
$720.00
2. Hourly rate for plan checks, re-checks, and inspections for projects with a construction valuation of $15,001.00 and greater: $110.00/hour
3. Hourly billing rate for consultation as requested by the City:
$110.00/hour
May 21, 2024, Item #10
EXHIBIT "B"
Cal Gov Code§ 7522.56
Deering's California Codes are current through all 1016 chapters of the 2018 Regular Session and the November 6, 2018 Ballot Measures.
Deering's California Codes Annotated> GOVERNMENT CODE> Title 1 General> Division 7 Miscellaneous > Chapter 21 Public Pension and Retirement Plans > Article 4 California Public Employees' Pension Reform Act o/2013
§ 7522.56. Provisions applicable to person receiving pension benefit from public retirement system; Section supersedes conflicting provisions (a)This section shall apply to any person who is receiving a pension benefit from a public retirement system and shall supersede any other provision in conflict with this section. (b) A retired person shall not serve, be employed by, or be employed through a contract directly by, a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, except as permitted by this section.
(c) A person who retires from a public employer may serve without reinstatement from retirement or loss or interruption of benefits provided by the retirement system upon appointment by the appointing power of a public employer either during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration.
( d)Appointments of the person authorized under this section shall not exceed a total for all employers in that public retirement system of 960 hours or other equivalent limit, in_a calendar or fiscal year, depending on the administrator of the system. The rate of pay for the employment shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties, divided by 173.333 to equal an hourly rate. A retired person whose employment without reinstatement is authorized by this section shall acquire no service credit or retirement rights under this section with respect to the employment unless he or she reinstates from retirement. (e)
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(!)Notwithstanding subdivision (c), any retired person shall not be eligible to serve or be employed by a public employer if, during the 12-month period prior to an appointment described in this section, the retired person received any unemployment insurance compensation arising out of prior employment subject to this section with May 21, 2024, Item #10
Cal Gov Code § 7522.56
a public employer. A retiree shall certify in writing to the employer upon accepting an offer of employment that he or she is in compliance with this requirement. (2)A retired person who accepts an appointment after receiving unemployment insurance compensation as described in this subdivision shall terminate that employment on the last day of the current pay period and shall not be eligible for reappointment subject to this section for a period of 12 months following the last day of employment.
(t)A retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement unless he or she meets one of the following conditions:
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(l)The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar. (2)
(A)Except as otherwise provided in this paragraph, for state employees, the state employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed state employment position before 180 days have passed and the appointment has been approved by the Department of Human Resources. The department may establish a process to delegate appointing authority to individual state agencies, but shall audit the process to determine if abuses of the system occur. If necessary, the department may assume an agency's appointing authority for retired workers and may charge the department an appropriate amount for administering that authority. (B)For legislative employees, the Senate Committee on Rules or the Assembly Rules Committee certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar.
(C)For employees of the California State University, the Trustees of the California State University certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar.
(3)The retiree is eligible to participate in the Faculty Early Retirement Program pursuant to a collective bargaining agreement with the California State University that existed prior to January 1, 2013, or has been included in subsequent agreements.
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Cal Gov Code § 7522.56
(4)The retiree is a public safety officer or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter. (g)A retired person who accepted a retirement incentive upon retirement shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement and subdivision (f) shall not apply.
(h)This section shall not apply to a person who is retired from the State Teachers' Retirement System, and who is subject to Section 24214. 24214.5 or 26812 of the Education Code.
(i)This section shall not apply to (1) a subordinate judicial officer whose position, upon retirement, is converted to a judgeship pursuant to Section 69615, and he or she returns to work in the converted position, and the employer is a trial court, or (2) a retiree of the Judges' Retirement System or the Judges' Retirement System II who is assigned to .serve in a court pursuant to Section 68543.5.
History
Added Stats 2012 ch 296 § 15 (AB 340). effective January 1, 2013. Amended Stats 2013 .ch 528 § 11 (SB 13), effective October 4, 2013 (ch 528 prevails); ch 76 § 75 (AB 383), effective January 1, 2013; Stats 2014 ch 238 § 1 (AB 2476), effective January 1, 2015.
Annotations
Notes
Amendments:
Note-
Amendments:
2013 Amendment:
Substituted (1) "have passed" for "has passed" in the first sentence of subds (f)(I) and (f)(2); (2) "or firefighter hired to perform a function or functions regularly performed by a public safety officer or firefighter" for "of firefighter" in subd (f)( 4); and (3) "Judges' Retirement System" for "Judges' Retirement System I" in subd (i).
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City of Poway
STANDARD AGREEMENT FOR SERVICES
This Agreement, entered into this 22nd day of May, 2024, by and between the CITY OF POWAY (hereinafter referred to as "City") and INTERWEST CONSUL TING GROUP, INC., {hereinafter referred to as "Consultant").
RECITALS
WHEREAS, City desires to obtain the services of a private consultant to perform as needed landscape architecture plan check and inspections services (Project); WHEREAS, Consultant is a landscape architect consultant and has represented that Consultant possesses the necessary qualifications to provide such services; and WHEREAS, City has authorized the preparation of an agreement to retain the services of Consultant as hereinafter set forth.
NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONSUL TANT ON THE FOLLOWING TERMS AND CONDITIONS:
1. Scope of Services.
Consultant shall provide services as described in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
2. Compensation and Reimbursement.
City shall compensate and reimburse Consultant as provided in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
3. Term of Agreement.
The term of this Agreement shall be as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
4. Termination.
This Agreement may be terminated with or without cause by City. Termination without cause shall be effective only upon 60-day written notice to Consultant. During said 60- day period Consultant shall perform all consulting services in accordance with this Agreement.
This Agreement may be terminated by City for cause in the event of a material breach of this Agreement, misrepresentation by Consultant in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City.
Termination for cause shall be effected by delivery of written notice of termination to Consultant.
Such termination shall be effective upon delivery of said notice. 20 of 40 ATTACHMENT B
May 21, 2024, Item #10
5. Confidential Relationship.
City may from time to time communicate to Consultant certain information to enable Consultant to effectively perform the services. Consultant shall treat all such information as confidential, whether or not so identified, and shall not disclose any part thereof without the prior written consent of the City. Consultant shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services.
The foregoing obligation of this Paragraph 5, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of Consultant, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of Consultant without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to Consultant by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party.
Consultant shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this contract without the prior written consent of the City. In its performance hereunder, Consultant shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation.
6. Office Space and Clerical Support.
Consultant shall provide its own office space and clerical support at its sole cost and expense.
7. Covenant Against Contingent Fees.
Consultant declares that it has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift or any other consideration, contingent upon or resulting from the award or making of the Agreement. For breach of violation of this warranty, City shall have the right to annul this Agreement without liability, or, at its sole discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.
8. Ownership of Documents.
All memoranda, reports, plans, specifications, maps and other documents prepared or obtained under the terms of this Agreement shall be the property of City and shall be delivered to City by Consultant upon demand.
9. Conflict of Interest and Political Reform Act Obligations.
During the term of this Agreement Consultant shall not act as consultant or perform services of any kind for any person or entity whose interests conflict in any way with those of the City of Poway. Consultant shall at all times comply with the terms of the Political Reform Act and the local conflict of interest code. Consultant shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the City in which the Consultant has a financial interest as defined in Government Code Section 87103.
Consultant represents that it has no knowledge of any financial interests which would require it to disqualify itself from any matter on which it might perform services for the City. 21 of 40 2
May 21, 2024, Item #10
"Consultant" means an individual who, pursuant to a contract with a state or local agency:
(A) Makes a governmental decision whether to:
1. Approve a rate, rule or regulation;
2. Adopt or enforce a law;
3. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement;
4. Authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires City approval;
5. Grant City approval to a contract that requires City approval and to which the City is a party, or to the specifications for such a contract;
6. Grant City approval to a plan, design, report, study, or similar item;
7. Adopt, or grant City approval of, policies, standards, or guidelines for the City, or for any subdivision thereof; or
(B) Serves in a staff capacity with the City and in that capacity participates in making a governmental decision as defined in the Political Reform Act and/or implementing regulations promulgated by the Fair Political Practices Commission, or performs the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code.
DISCLOSURE DETERMINATION:
[8J 1. ConsultanUContractor will not be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above.
No disclosure required.
D 2. ConsultanUContractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, ConsultanUContractor shall be required to file a Statement of Economic Interest with the City Clerk of the City of Poway in a timely manner as required by law.
Robert J. Manis, Director of Development Services
10. No Assignments.
Neither any part nor all of this Agreement may be assigned or subcontracted, except as otherwise specifically provided herein, or to which City, in its sole discretion, consents to in advance thereof in writing. Any assignment or subcontracting in violation of this provision shall be void.
11. Maintenance of Records.
Consultant shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the contract period and for three 22 of 40 3
May 21, 2024, Item #10
(3) years from the date of final payment under this Agreement, for inspection by City and copies thereof shall be furnished, if requested.
12. Independent Contractor.
At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of the City of Poway. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes such services.
13. Licenses, Permits, Etc.
Consultant represents and declares to City that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for Consultant to practice its profession.
14. Consultant's Insurance.
Consultant shall provide insurance as set forth in Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
15. Indemnification.
(a) For Claims (as defined herein) other than those alleged to arise from Consultant's negligent performance of professional services, City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "lndemnitees") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, protect and hold harmless lndemnitees from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses, including reasonable attorneys' fees and disbursements (collectively "Claims"), which lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of Consultant's negligent performance under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees. (b) For Claims alleged to arise from Consultant's negligent performance of professional services, lndemnitees shall have no liability to Consultant or any other person for, and Consultant shall indemnify and hold harmless lndemnitees from and against, any and all Claims that lndemnitees may suffer or incur or to which lndemnitees may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise to the extent occurring as a result of Consultant's negligent performance of any professional services under this Agreement, or by the negligent or willful acts or omissions of Consultant, its agents, officers, directors, sub-consultants or employees, committed in performing any of professional services under this Agreement. For Claims alleged to arise from Consultant's professional services, Consultant's defense obligation to lndemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Consultant's negligence.
23 of 40 4
May 21, 2024, Item #10
(c) The foregoing obligations of Consultant shall not apply to the extent that the Claims arise from the sole negligence or willful misconduct of City or its elected and appointed boards, officials, officers, agents, employees and volunteers. (d) In any and all Claims against City by any employees of the Consultant, anyone directly or indirectly employed by it or anyone for whose acts it may be liable, the indemnification obligation under this Section 15 shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Consultant under worker's compensation acts, disability benefit acts or other employee benefit acts. (e) Consultant shall, upon receipt of written notice of any Claim, promptly take all action necessary to make a claim under any applicable insurance policy or policies Consultant is carrying and maintaining; however, if Consultant fails to take such action as is necessary to make a claim under any such insurance policy, Consultant shall reimburse City for any and all costs, charges, expenses, damages and liabilities incurred by City in making any claim on behalf of Consultant under any insurance policy or policies required pursuant to this Agreement. (f) The obligations described in Section 15(a) through (e) above shall not be construed to negate, abridge or otherwise reduce any other right or obligation of indemnity which would otherwise exist as to any party or person indemnified pursuant to this Section 15. (g) The rights and obligations of the parties described in this Section 15 shall survive the termination of this Agreement.
16. Assumption of Risk.
Except for injuries to persons caused by the willful misconduct of any lndemnitee and not covered by insurance maintained, or required by this Agreement to be maintained, by Consultant: (a) Consultant hereby assumes the risk of any and all injury and damage to the personnel (including death) and property of Consultant that occurs in the course of, or in connection with, the performance of Consultant's obligations under this Agreement, including but not limited to Consultant's Scope of Services; and (b) it is hereby agreed that the lndemnitees are not to be liable for injury or damage which may be sustained by the person, goods or property of Consultant or its employees in connection with Consultant's performance its obligations under this Agreement, including but not limited to Consultant's Scope of Services.
17. Consultant Not an Agent.
Except as City may specify in writing, Consultant shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent.
Consultant shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
18. Personnel.
Consultant shall assign qualified and certified personnel to perform requested services. The City shall have the right to review and disapprove personnel for assignment to Poway projects.
City shall have the unrestricted right to order the removal of any person(s) assigned by Consultant by giving oral or written notice to Consultant to such effect. 24 of 40 5
May 21, 2024, Item #10
Consultant's personnel shall at all times comply with City's drug and alcohol policies then in effect.
19. Notices.
Notices shall be given as described on Exhibit "A" entitled "Special Provisions" attached hereto and made a part hereof.
20. Governing Law, Forum Selection and Attorneys' Fees.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Each party to this Agreement consents to personal jurisdiction in San Diego County, California, and hereby authorizes and accepts service of process sufficient for personal jurisdiction by first class mail, registered or certified, postage prepaid, to its address for giving notice as set forth in Exhibit "A" hereto. Any action to enforce or interpret the terms or conditions of this Agreement shall be brought in the Superior Court in San Diego County, Central Division, unless the parties mutually agree to submit their dispute to arbitration.
Consultant hereby waives any right to remove any such action from San Diego County as is otherwise permitted by California Code of Civil Procedure section 394. The prevailing party in any such action or proceeding shall be entitled to recover all of its reasonable litigation expenses, including its expert fees, attorneys' fees, courts costs, arbitration costs, and any other fees. Notwithstanding the foregoing, in the event that the subject of such an action is compensation claimed by Consultant in the event of termination, Consultant's damages shall be limited to compensation for the 60-day period for which Consultant would have been entitled to receive compensation if terminated without cause, and neither party shall be entitled to recover their litigation expenses.
21. Gender.
Whether referred to in the masculine, feminine, or as "it," "Consultant" shall mean the individual or corporate consultant and any and all employees of consultant providing services hereunder.
22. Counterparts.
This Agreement (and any amendments) may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. Documents delivered by telephonic facsimile transmission shall be valid and binding.
23. Entire Agreement.
This Agreement shall constitute the entire understanding between Consultant and City relating to the terms and conditions of the services to be performed by Consultant. No agreements, representations or promises made by either party, whether oral or in writing, shall be of any force or effect unless it is in writing and executed by the party to be bound thereby.
24. Certification and Indemnification Regarding Public Employees' Retirement Law/Pension Reform Act of 2013.
Contractor hereby certifies that all persons providing services to City by Contractor are not current members of the California Public Employees' Retirement System (CalPERS) and shall not become members of CalPERS while providing services to City. 25 of 40 6
May 21, 2024, Item #10
Contractor further provides that in the event Contractor assigns a retired annuitant receiving a pension benefit from CalPERS to perform services for City, the retired annuitant is in full compliance with Government Code section 7522.56. A copy of Government Code section 7522.56 is attached hereto as Exhibit "B." Further, Contractor hereby fully and unconditionally indemnifies City from all penalties, fees, employer and employee contributions, or any other assessments imposed by CalPERS in the event CalPERS determines the person assigned by Contractor to provide services to City has been misclassified.
25. Severability.
If any provision of this Agreement is determined by any court of competent jurisdiction or arbitrator to be invalid, illegal, or unenforceable to any extent, that provision shall, if possible, be construed as though more narrowly drawn, if a narrower construction would avoid such invalidity, illegality, or unenforceability or, if that is not possible, such provision shall, to the extent of such invalidity, illegality, or unenforceability, be severed, and the remaining provisions of this Agreement shall remain in effect.
(Remainder of page intentionally left blank)
26 of 40 7
May 21, 2024, Item #10
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the date first above written.
CITY OF POWAY INTERWEST CONSUL TING GROUP, INC.
By: __________ _ By: ___________ _
Chris Hazeltine, City Manager Paul Meschino, President
Date: ___________ _ Date: 5/10/2024
ATTEST:
Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:
Alan Fenstermacher, City Attorney
27 of 40 8
May 21, 2024, Item #10
"SPECIAL PROVISIONS"
EXHIBIT "A"
A. Scope of Services.
Consultant shall provide the necessary qualified personnel to perform the services listed below. Consultant shall provide all labor, materials, and equipment necessary for landscape plan check and inspection services as required by City, which shall include but not be limited to the following:
1. Plan Check Services
a. Perform irrigation and landscape plan review of construction plans within ten business days, or as otherwise directed, for the entire plan check process including re-checks. Include recommendations based on experience with maintenance and growth rates of plant materials.
b. Provide a rapid turnaround of the reviewed plans while ensuring a quality review process. Typical turnaround times for City of Poway are one to two weeks depending on the complexity of the project.
c. Review conceptual landscape plans for projects during entitlement process, as needed.
d. Review and comment on existing and proposed regulations and policies based on new State and Federal Statutes and as directed.
e. Meet with staff and applicants when requested by staff. f. Review tree removal permits on private property, as needed. g. Attend pre-construction meetings, as needed.
h. Develop and maintain written lists of corrections needed to have the submitted plans conform to the applicable codes and regulations.
i. Transmit such correction lists to, and consult with, the applicant or design professional as necessary in order to explain the corrections to be made to have the proposed construction conform to the applicable codes and regulations. Issue the necessary approvals when, in the Consultant's opinion, the plans appear to be complete, have met all applicable state and local requirements and corrections are addressed.
j. Update permit tracking software and transmit corrections to applicant and landscape designer or architect.
2. Field Inspection Services
28 of 40
a. Perform field inspections within two business days upon request, or as otherwise directed, including but not limited to, inspections of plant materials (including sizing, type, height and location); its irrigation main lines, main line pressure checks, irrigation coverage (ensure spray and drip systems are functioning with minimal overspray), review/approval of plant material for City projects, required plant coverage and tree/shrubs per acre, and fire management plans: (1) during construction; and (2) prior to issuance of building certificate of occupancy to determine compliance with applicable codes and regulations. b. Develop and maintain written lists of corrections needed to have the physical improvements conform to the approved plans and applicable codes and regulations.
c. Transmit such correction lists to, and consult with, the applicant or design professional or contractor as necessary in order to explain the corrections to be 1 May 21, 2024, Item #10
made to have the physical improvements conform to the approved plans and applicable codes and regulations.
d. Update permit tracking software and transmit corrections to applicant, contractor and landscape designer or architect.
3. Management Approach
B.
a. The Consultant must reflect professionalism and courtesy when dealing with the public and City staff.
b. The Consultant will provide copies of all correspondence records, inspection reports, and approval reports to the Department of Development Services. c. The Consultant will invoice the Department of Development Services for services rendered in a manner consistent with City standards as approved by the City's Finance Division.
d. The City shall collect all fees in connection with the Consultant performing the work set forth in this proposal and under no condition will such fees be collected by the Consultant.
e. Consistent with the authority contained in the law, the Consultant shall have the decision authority consistent with and necessary for the timely and proper enforcement of the laws and ordinances assigned to the Consultant for enforcement, and such decisions shall be consistent with the wording of the regulations.
f. The Consultant shall provide its own office space and clerical support at its sole cost and expense. Specific accommodations to the Consultant by the City may be permitted on a case-by-case basis if such accommodations are of no additional cost to the City.
g. Phone calls, text messages and emails shall be responded to within 24 hours with a reasonable timeline for completeness of requests. h. Priorities may be shifted or reorganized in order to expedite certain project reviews and inspections.
Compensation and Reimbursement.
City shall pay Consultant a fee in accordance with the Fee Proposals submitted with the proposals, which are included in this document as Attachment 1. Consultant's fee shall include and Consultant shall be responsible for the payment of all federal, state, and local taxes of any kind which are attributable to the compensation received.
In addition to said consulting fee, Consultant shall be reimbursed for all reasonable expenses, including lodging, telephone, and travel (air, auto, rail) necessarily incurred in performance of the services. Consultant shall bill City for such expenses as incurred, referencing this Agreement. All expenses shall be itemized and supported by receipts for amounts in excess of Twenty-Five Dollars ($25.00). Statements for reimbursement of expenses shall be paid within ten (10) days of approval by City. All air travel shall be billed at coach or special fare rates. Reimbursement for lodging is limited to travel from outside of San Diego County. Consultant shall receive prior authorization for air travel and lodging expenses. All other expenses shall be reimbursed in accordance with City's cash disbursement policies in effect at the time incurred.
C. Term of Agreement.
This Agreement shall be effective from the period commencing May 22, 2024, and ending May 21, 2027, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." This Agreement may be extended for up to two additional one-year periods upon approval in writing of the City Manager and Consultant. Upon expiration 29 of 40 2
May 21, 2024, Item #10
or termination of this Agreement, Consultant shall return to City any and all equipment, documents or materials and all copies made thereof which Consultant received from City or produced for City for the purposes of this Agreement.
D. Consultant's Insurance.
1. Coverages:
Consultant shall obtain and maintain during the life of this Agreement all of the following insurance coverages:
(a) Comprehensive General Liability, including premises-operations, products/completed, broad form property damage, and blanket contractual liability with the following coverages: General Liability $1,000,000 Bodily Injury and Property Damage combined each occurrence and $2,000,000 aggregate.
(b) Automobile Liability, including owned, hired, and non-owned vehicles: $1,000,000 combined single limit.
(c) Consultant shall obtain and maintain, during the life of the Agreement, a policy of Professional Errors and Omissions Liability Insurance with policy limits of not less than $1,000,000 combined single limits, per claim and annual aggregate. (d) Workers' Compensation insurance in statutory amount. All of the endorsements which are required above shall be obtained for the policy of Workers' Compensation insurance.
2. Endorsements:
Endorsements shall be obtained so that each policy contains the following three provisions:
(a) Additional Insured. (Not required for Professional Errors and Omissions Liability Insurance or Workers' Compensation.) "City of Poway and its elected and appointed boards, officers, agents, and employees are additional insureds with respect to this subject project and contract with City." (b) Notice.
"Said policy shall not terminate, nor shall it be canceled, until thirty (30) days after written notice is given to City."
(c) Primary Coverage.
"The policy provides primary coverage to City and its elected and appointed boards, officers, agents, and employees. It is not secondary or in any way subordinate to any other insurance or coverage maintained by City."
3. Insurance Certificates:
Consultant shall provide City certificates of insurance showing the insurance coverages described in the paragraphs above, in a form and content approved by City, prior to beginning work under this Agreement.
30 of 40 3
May 21, 2024, Item #10
E. Notices.
All notices, billings and payments hereunder shall be in writing and sent to the following addresses:
To City:
To Consultant:
31 of 40 4
City of Poway -Development Services
13325 Civic Center Drive
Poway, CA 92064
lnterwest Consulting Group, Inc.
9320 Chesapeake Drive, Suite 208
San Diego, CA 92123
May 21, 2024, Item #10
Attachment 1
City of Poway, CA I Proposal for RFP# 24-011 Landscape Architectural Plan Check & Inspection Services 5 / Fee Proposal
Below we have provided our cost breakdown associated with each of the tasks as outlined in the scope of work we have presented in our proposal.
Projects
Flat Fee Projects < $1Sk
Hourly Rate Projects> $1Sk
Hourly Rate: Additional Consul
tation Requests
t r e t H urly Rates
Effective January 1, 2023
$ 720
N/A
N/A
HOURLY RATE
Plan Check
N/A
$165/HR
$165/HR
Field Inspection
N/A
$165/HR
$165/HR
Beginning on the 1st anniversary of the Effective Date of the Agreement and annually thereafter, the hourly rates listed below shall be automatically increased based upon the annual increase in the Department of Labor, Bureau of Labor Statistics or successor thereof, Consumer Price Index (United States City Average, All Items (CPI-U), Not Seasonally adjusted, All Urban Consumers, referred to herein as the "CPI"), unless a mutually agreed upon rate increase is established.
Such increase shall not exceed 5% per annum. The increase will become effective upon publication of the applicable CPI data. If the index decreases, the rates listed shall remain unchanged.
CLASSIFICATION HOURLY BILLING RATE
Landscape Design Review Services
Project Manager .................................................................................................................................................. $165 Senior Landscape Design Reviewer .................................................................................................................. $165 Landscape Maintenance Inspector ................................................................................................................... $165 2 May 21, 2024, Item #10
EXHIBIT "B"
Cal Gov Code§ 7522.56
Deering's California Codes are current through all 1016 chapters of the 2018 Regular Session and the November 6, 2018 Ballot Measures.
Deering's California Codes Annotated> GOVERNMENT CODE> Title 1 General> Division 7 Miscellaneous> Chapter 21 Public Pension and Retirement Plans > Article 4 California Public Employees' Pension Reform Act of 2013
§ 7522.56. Provisions applicable to person receiving pension benefit from public retirement system; Section supersedes conflicting provisions (a)This section shall apply to any person who is receiving a pension benefit from a public retirement system and shall supersede any other provision in conflict with this section. (b) A retired person shall not serve, be employed by, or be employed through a contract directly by, a public employer in the same public retirement system from which the retiree receives the benefit without reinstatement from retirement, except as permitted by this section.
(c) A person who retires from a public employer may serve without reinstatement from retirement or loss or interruption of benefits provided by the retirement system upon appointment by the appointing power of a public employer either during an emergency to prevent stoppage of public business or because the retired person has skills needed to perform work of limited duration.
( d)Appointments of the person authorized under this section shall not exceed a total for all employers in that public retirement system of 960 hours or other equivalent limit, in a calendar or fiscal year, depending on the administrator of the system. The rate of pay for the employment shall not be less than the minimum, nor exceed the maximum, paid by the employer to other employees performing comparable duties, divided by 173.333 to equal an hourly rate. A retired person whose employment without reinstatement is authorized by this section shall acquire no service credit or retirement rights under this section with respect to the employment unless he or she reinstates from retirement. (e)
33 of 40
(l)Notwithstanding subdivision (c), any retired person shall not be eligible to serve or be employed by a public employer if, during the 12-month period prior to an appointment described in this section, the retired person received any unemployment insurance compensation arising out of prior employment subject to this section with 1 May 21, 2024, Item #10
Cal Gov Code § 7522.56
a public employer. A retiree shall certify in writing to the employer upon accepting an offer of employment that he or she is in compliance with this requirement. (2)A retired person who accepts an appointment after receiving unemployment insurance compensation as described in this subdivision shall terminate that employment on the last day of the current pay period and shall not be eligible for reappointment subject to this section for a period of 12 months following the last day of employment.
(f)A retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement unless he or she meets one of the following conditions:
34 of 40
(l)The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar. (2)
(A)Except as otherwise provided in this paragraph, for state employees, the state employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed state employment position before 180 days have passed and the appointment has been approved by the Department of Human Resources. The department may establish a process to delegate appointing authority to individual state agencies, but shall audit the process to determine if abuses of the system occur. If necessary, the department may assume an agency's appointing authority for retired workers and may charge the department an appropriate amount for administering that authority. (B)For legislative employees, the Senate Committee on Rules or the Assembly Rules Committee certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar.
(C)For employees of the California State University, the Trustees of the California State University certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and approves the appointment in a public meeting. The appointment may not be placed on a consent calendar.
(3)The retiree is eligible to participate in the Faculty Early Retirement Program pursuant to a collective bargaining agreement with the California State University that existed prior to January 1, 2013, or has been included in subsequent agreements.
2 May 21, 2024, Item #10
Cal
Gov
Code
§ 7522.56
(4)The
retiree
is
a public
safety
officer
or
firefighter
hired
to
perform
a function
or
functions
regularly
performed
by
a public
safety
officer
or
firefighter.
(g)A
retired
person
who
accepted
a
retirement
incentive
upon
retirement
shall
not
be
eligible
to
be
employed
pursuant
to
this
section
for
a period
of
180
days
following
the
date
of
retirement
and
subdivision (f)
shall
not
apply.
(h)This
section
shall
not
apply
to
a
person
who
is
retired
from
the
State
Teachers'
Retirement
System,
and
who
is
subject
to
Section
24214,
24214.5
or
26812
of
the
Education
Code.
(i)This
section
shall
not
apply
to
(1)
a subordinate
judicial
officer
whose
position,
upon
retirement,
is
converted
to
a judgeship
pursuant
to
Section
69615,
and
he
or
she
returns
to
work
in
the
converted
position,
and
the
employer
is
a trial
court,
or
(2)
a retiree
of
the
Judges'
Retirement
System
or
the
Judges'
Retirement
System
II
who
is
assigned
to
.serve
in
a
court
pursuant
to
Section
68543.5.
History Added
Stats
2012
ch
296
§
15 (AB
340),
effective
January
1,
2013.
Amended
Stats
2013
ch
528
§
11 (SB
13).
effective
October
4,
2013
(ch
528
prevails);
ch
76 § 75
(AB
383),
effective
January
1,
2013;
Stats
2014
ch
238
§ 1 (AB
2476),
effective
January
1,
2015.
Annotations Notes
Amendments: Note-
Amendments: 2013
Amendment:
Substituted
(1)
"have
passed"
for
"has
passed"
in
the
first
sentence
of
subds
(f)(l)
and
(f)(2);
(2)
"or
firefighter
hired
to
perform
a
function
or
functions
regularly
performed
by
a
public
safety
officer
or
firefighter"
for
"of
firefighter"
in
subd
(f)(
4);
and
(3)
"Judges'
Retirement
System"
for
"Judges'
Retirement
System
I"
in
subd
(i).
35 of
40 3
May 21, 2024, Item #10
RESOLUTION NO. 11-068
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF POWAY, CALIFORNIA,
AMENDING THE MASTER FEE SCHEDULE, LANDSCAPE
PLAN CHECK AND INSPECTION SERVICES FEE
WHEREAS, California Government Code Section 66016, et. seq., establishes procedures for the adoption of fees for services provided by local government; and WHEREAS, the City Council finds it necessary to recover the full costs for City services; and
WHEREAS, in 1992, the City Council adopted Resolution 92-187 establishing a Landscape Plan Check and Inspection Services Fee and rescinded Resolution 89-077; and WHEREAS, the City Council may find it necessary or desirable to amend the City's Master Fee Schedule from time to time, as authorized by the California Government Code; and
WHEREAS, in December 2010, the City sent out a Request for Proposals for as needed landscape architecture plan check and inspection services. Staff reviewed the proposals that were received and selected the proposal from Gary F. Hoyt 'Landscape Architecture, Inc., on the basis of qualifications and rates; and WHEREAS, the proposed new flat fee does not exceed the reasonable recovery costs of providing the service for which the fee is imposed; and WHEREAS, the City Council now finds it necessary to adjust the Landscape Plan Check and Inspection Services Fee based on additional statuary and regulatory requirements incorporated into the Poway Municipal Code (PMC); and WHEREAS, a duly noticed public hearing has been held, allowing for public comment on the establishment of said fee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows:
Section 1: The City Council finds that this amendment to the Master Fee Schedule is exempt from the California Environmental Quality Act (CEQA}, pursuant to the provision of Section 15273(a)(1) of the 2011 State CEQA Guidelines.
Section 2: Resolution 92-187 establishing a Landscape Plan Check and Inspection Services Fee is hereby rescinded effective February 18, 2012.
Section 3: Establish a flat fee of $720 for Landscape Plan Check and Inspection Services for projects with landscape improvement value up to $15,000 (based on the City standard unit price estimate sheet).
36 of 40 ATTACHMENT C
May 21, 2024, Item #10
Resolution
No
. 11-068
Page
2 Section
4:
Establish
Landscape
Plan
Check
and
Inspection
deposit
rates
to
be
calculated
based
on
the
City
standard
unit
price
estimate
sheet,
according
to
the
following
table:
Estimated
Cost
of
Landscape
Improvements•
$15,001
to
$100,000
$100,001
to
$250,000
$250,001
to
$500,000
$500,001
to
$750,000
$750,001
to
$1,000,000
$1,000,001
and
over
·rhe
actual
fee
shall
be
calculated
based
on
the
hourly
rate
charged
to
review
and
check
plans
and
for
inspection
services
by
City
staff
or
City's
contract
landscape
architect.
Rate 3.5%
3.0%
2.5% 2.0% 1.5% 1.0%
Section
5:
Table
2 of
the
City's
Master
Fee
Schedule
(effective
July
6,
2010),
as
adopted
by
Resolution
No.
10-017,
is
hereby
amended
by
referencing
this
Resolution
to
reflect
the
fees
established
by
Sections
3 and
4,
above.
PASSED,
ADOPTED
AND
APPROVED
by
the
City
Council
of
the
City
of
Poway,
State
of
California,
at
a
regular
meeting
this
20th
day
of
December
2011.
ATTEST: 37
of
40 May 21, 2024, Item #10
STATE
OF
CALIFORNIA
) ) SS.
COUNTY
OF
SAN
DIEGO
)
Resolution
No.
11-068
Page
3 I,
Linda
A.
Troyan,
MMC,
City
Clerk
of
the
City
of
Poway
, do
hereby
certify,
under
penalty
of
perjury,
that
the
foregoing
Resolution
No
. 11-068
was
duly
adopted
by
the
City
Council
at
a
meeting
of
said
City
Council
held
on
the
20th
day
of
December
2011
and
that
it
was
so
adopted
by
the
following
vote:
38 of
40 AYES
:
BOYACK,
GROSCH,
MULLIN,
CUNNINGHAM,
HIGGINSON
NOES:
NONE
ABSENT:
NONE
DISQUALIFIED
:
NONE
ajA
. Troyan,
MMC,
Cit
City
of
Poway
May 21, 2024, Item #10
CITY
OF
POWAY
STANDARD
LANDSCAPE
COST
ESTIMATE***
PROJECT: CALCULATED
BY:
DATE:
Soil
Preparation
@$0
.10
$
Concrete
Mow
Strip
(6"x6")
LF@
$5
.00
$
Root
Barrier
EA@$40
.00
$
Mulch
CY@$50
.00
$
Automatic
Irrigation
SF@$0
.65
$
(under
100,000
SF)
Automatic
Irrigation
SF@$0.35
$
(Over
100,000
SF)
1 Gallon
Shrubffree
EA@$5
.00
$
5 Gallon
Shrub
EA@$14
.00
$
5 Gallon
Vines
EA@$16.00
$
15 Gallon
Espaliers
EA@
$58
.00
$
5 Gallon
Tree
EA@$16
.50
$
15 Gallon
Tree
EA@$55.00
$
24 Inch
Box
Tree
&
Larger
EA@$*
$
Boulders
TN@$75.00
$
Hydroseeded
Slopes
SF@$0
.06
$
Hydroseeded
Turf
SF@$0
.10
$
Groundcover (hand
planted)
SF@$0
.20
$
@12"
O.~.
Groundcover (slope
planting)
SF@$0
.35
$
Sodded
Turf
SF@$**
$
TOTAL
COST
$
**
All
trees
larger
than
15 gallons
shall
be
listed
at
the
15-gallon
tree
unit
price
.
Sodded
turf
shall
be
listed
at
the
hydroseeded
turf
price
per
square
foot.
Hardscape
not
included
in
cost
estimate
.
39 of
40 ATTACHMENT
D
May 21, 2024, Item #10
CITY
OF
POWAY
STANDARD
LANDSCAPE
COST
ESTIMATE
WORKSHEET**
PROJECT/
LP#:
CALCULATED
BY
:
DATE:
Soil
Preparation/Fine
Grade
SF@$0
.35
$
Concrete
Mow
Curb
(6"
x 6
")
LF@$9.00
$
Root
Barrier
(each
tree)
EA@$65.00
$
Mulch/
Inorganic
(i.e.,
stone,
DG,)
SF@$2.80
$
cobble,
gravel,
etc.)
Mulch
/ Organic
SF@
$1
.20
$
Automatic
Irrigation
(Spray)
SF@$1
.80
$
(under
1 ac
re)
Automatic
Irrigation
(Spray)
SF@$0.95
$
(over
1 acre)
Automatic
Irrigation
(low
volume)
SF@$4.50
$
1 Gallon
Shrub
EA@
$18.00
$
5 Gallon
Shrub
EA@$40.00
$
5 Gallon
Vine
EA@$45
.00
$
15 Gallon
Shrub
EA@$125.00
$
5 Gallon
Tree
EA@$50
.00
$
15 Gallon
Tree
EA@$125
.00
$
24 Inch
Box
Tree
&
Larger*
EA@
*$250.00
$
Boulder
EA@$65.00
$
Hydroseed
Slopes
SF@$0
.35
$
Hydroseed
Turf
SF@$0.35
$
Groundcover
(flats)
SF@$0.40
$
@12"O.C. Groundcover
{flats)
SF@$0.25
$
@
18"
0 . C.
Sodded
Turf
SF@$1.50
$
FMZ
B
Vegetation
Removal
{''Trim
&
AC@
$3000.00
$
Maintain") * **
All
trees
larger
than
24-inch
box
size
shall
be
listed
at
the
24-
inch
box
tree
unit
price.
Hardscape
is
not
included
in cost
estimate
.
40 of
40 ATTACHMENT
E
May 21, 2024, Item #11
AGENDA RE PO RT City of Poway
DATE:
TO:
FROM:
CONTACT:
May 21, 2024
Honorable Mayor and Members of the City Council
Robert Manis, Director of Development Services fo,1
Sara Trunzo, Senior Civil Engineer
(858) 668-4622/[email protected]
CITY COUNCIL
SUBJECT: Acceptance of Public Improvements for the Poway Commons Project, Street Improvement Plan 20-002
Summary:
Street Improvement Plan (STI) 20-002 for the Poway Commons project included the installation of streetlights, a sewer main extension from Slack Street, curb, gutter, sidewalk, cross-gutters and curb ramps, two bus shelters, relocation of a fire hydrant and capping the existing water line in Quate Court. The improvements are complete and ready for acceptance.
Recommended Action:
It is recommended the City Council:
1) Accept the improvements shown on the plans for STI 20-002 as complete; 2) Release the Performance Bond in the amount of $293,700; 3) Release the Payment Bond, in the amount of $146,850; and 4) Retain the Warranty Bond in the amount of $29,370 for a period of one (1) year.
Discussion:
The improvements serve the new development, Poway Commons, along Poway Road, Civic Center Drive and Tarascan Drive. The construction has been completed in accordance with the Standard Agreement for Construction of Public Improvements (Attachment A), and accepted by the Engineering Inspection Division. Staff finds the project to be complete in accordance with the project plans and specifications.
Environmental Review:
On December 17, 2019, the City Council determined Tentative Tract Map (TTM) 19-005 is consistent with the Poway Road Specific Plan (PRSP) and conforms with the requirements, development standards and guidelines therein, and, therefore, as set forth in Section 8.2. of the PRSP, no further environmental analysis was required because all of the project's impacts were analyzed in and are 1 of 14
May 21, 2024, Item #11
fully covered by the previously certified Environmental Impact Review (EIR) for the PRSP. The acceptance of the improvements is within the scope of the previous determination; therefore, no further environmental review is necessary.
Fiscal Impact:
None.
Public Notification:
None.
Attachments:
A Standard Agreement
Reviewed/Approved By:
Assistant City Manager
2 of 14
Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
Chri az
City Manager
May 21, 2024, Item #11
Poway,
California
STANDARD
AGREEMENT
FOR
CONSTRUCTION
OF
PUBLIC
IMPROVEMENTS
(STl20-002
Poway
Commons)
Agreement
Date
The
CITY
OF
POWAY
("CITY")
and
MC
Poway
97 LLC,
a
Delaware
limited
liability
company,
("OWNER")
agree
as
follows:
A.
OWNER
is
required
to
construct
the
following
public
improvements
("work")
for
the
above
referenced
property:
a.
Installation
of
three
streetlights
&
associated
conduit
along
the
south
side
of
Poway
Road
and
one
streetlight
on
the
east
side
of
Tarascan
Drive.
b.
Installation
of
a
sewer
main
to
connect
the
project
to
the
existing
sewer
in
Slack
Street.
c.
Installation
of
curb,
gutter,
sidewalk,
cross-gutters
and
curb
ramps
along
the
project
frontage
on
Poway
Road
and
Tarascan
Drive
as
shown
on
the
approved
plans.
d.
Installation
of
two
bus
shelters.
e.
Relocating
a fire
hydrant
and
capping
the
existing
8"
public
water
line
in
Quate
Court.
B.
CITY
approved
plans
and
specifications
for
the
construction
of
the
work,
which
are
incorporated
herein
by
reference,
and
identified
as
the
Street
Improvement
Plans
for
Poway
Commons
(STl20-002)
.
C.
The
following
are
attached
hereto
and
made
a
part
hereof:
Schedule
A
Schedule
B
Public
Improvements
Monument
Setting
1. IMPROVEMENTS
:
TIME
TO
PERFORM:
For
valuable
consideration
OWNER
agrees
to
do,
or
cause
to
be
done,
at
OWNER's
expense
and
without
any
cost
or
liability
to
the
CITY,
all
of
the
work
described
herein
by
the
date
specified
on
Schedule
A.
OWNER
warrants
that
all
of
the
materials
supplied
and
work
to
be
done
wiJI
be
of
good
quality
and
workmanship.
Said
work
shall
be
in
strict
conformity
with
the
plans
and
specifications
of
the
work,
the
standard
specifications
and
drawings
for
public
improvements
adopted
by
CITY,
and
this
agreement.
OWNER
shall
furnish
all
transportation,
equipment,
labor,
services,
permits,
utilities,
and
all
other
items
necessary
to
complete
the
work.
OWNER
shall
pay
all
claims,
demands,
and
liability
arising
out
of
or
resulting
from
or
in
connection
with
the
performance
of
the
work.
OWNER
shall
furnish
accurate
"as
constructed"
plans.
In
addition,
Owner
shall,
prior
to
acceptance
of
the
work
by
City
Council,
set
all
final
monuments
and
stakes.
OWNER's
obligations
herein
are
not
limited
by
any
cost
estimates,
nor
will
any
estimate
be
a
measure
of
damages.
CITY,
in
its
sole
discretion
and
without
liability
to
CITY
CITY's
Engineer
and
their
consultants,
and
each
of
their
officials,
directors,
officers,
employees
and
agents,
may
require
changes,
alterations,
or
additions
to
the
plans
and
specifications
which
do
not
exceed
ten
percent
(10%)
of
the original
CITY
approved
cost
estimate
of
the
work.
CITY,
in
its
sole
discretion
and
without
9752164.2 3
of
14 ATTACHMENT
A
Agreement
-1 of
8 May 21, 2024, Item #11
liability
to
CITY,
CITY's
Engineer
and
their
consultants,
and
each
of
their
officials,
directors,
officers,
employees
and
agents,
may
require
changes,
alterations,
or
additions
in
addition
to
said
ten
percent
(10%) limitation
if required
to
correct
errors
or
omissions
in
the
approved
plans
and
specifications,
and
for
unforeseen
conditions
such
as,
but
not
limited
to,
rock
excavation,
unstable
soil
conditions,
or
high
water
tables
requiring
de-watering.
2. INSURANCE:
OWNER
shall
not
commence
or
continue
to
perform
any
work
unless
OWNER
has
in
full
force
and
effect
all
required
insurance
with
companies
satisfactory
to
CITY.
To
be
acceptable,
insurers
must
be
authorized
to
do
business
and
have
an
agent
for
service
of
process
in
California
and
have
an
"A"
policyholder's
rating
and
a
financial
rating
of at
least
Class
XI
in
accordance
with
the
current
Best's
Ratings
.
OWNER
shall
not
permit
any
contractor
or
subcontractor
to
perform
any
work
unless
the
worker's
compensation
insurance
requirements
have
been
complied
with
by
each
of
them.
All
insurance
policies
shall
be
maintained
until
the
work
is
accepted
by
the
CITY
and
provide
for
coverage
of
all
causes
of
action
or
disputes
arising
out
of
acts
in
performance
of
the
construction
of
the
public
improvement
herein
whether said
causes
or
disputes
are
filed
or
brought
to
the
attention
of
the
CITY
before
or
after
the
CITY
acceptance
of
work.
With
approval
of
the
CITY's
Attorney,
insurance
coverage
required
by
this
section
may
be
satisfied
by
insurance
held
in
name
of
prime
contractor
of
OWNER,
provided
that
prime
contractor
coverage
is
sufficiently
broad
to
include
all
losses
on
job
site.
As
evidence
of
coverage,
OWNER
shall
provide
certificates
of
insurance
and
endorsement
of
CITY
forms.
Each
certificate
shall
bear
an
endorsement
waiving
right
of
cancellation
or
change
in
coverage
without
forty-five
(45)
days
notice
in
writing
delivered
to
CITY.
Before
issuance
of
construction
permit,
OWNER
shall
provide
certificate(s)
of
insurance,
satisfactory
to
CITY,
certifying
that
OWNER,
and
each
of
OWNER'S
contractors,
has
for
the
agreement
period,
full
worker's
compensation
insurance
coverage
for
all
persons
who
are
or
may
be
employed
in
carrying
out
the
work
.
Before
issuance
of
construction
permit,
OWNER
shall
provide
to
CITY,
certificates
of
insurance
and
endorsements
that
OWNER
has
liability
insurance
coverage
naming
CITY
as
additional
insured
for
both
bodily
injury
and
property
damage
in
a single
limit
of
not
less
than
that
specified
on
Schedule
A
for
any
one
occurrence
.
Liability
insurance
coverage
shall
include
each
of
the
following
types
of
insurance
as
required
by
the
CITY
to
carry
out
this
agreement.
A. 1. 2. 3. 4. 5. 6. 7. 8. 9.
9752164.2 4
of
14 General
Liability
Comprehensive
Form
Premises-Operations Explosion
and
Collapse
Hazard
Underground
Hazard
Products/Completed
Operations
Hazard Contractual
Insurance
Broad
Form
Property
Damage
Including
Completed
Operations
Independent
Contractors
Personal
Injury
B.
Automobile
Liability
1. Comprehensive
Form,
Including
Loading
and
Unloading
2. Owned
3. Hired
4. Non-Owned
Agreement
-2
of
8 May 21, 2024, Item #11
Contractual
insurance
shall
be
sufficiently
broad
to
indemnify
CITY
as
set
forth
in
Paragraph
4. Any
liability
insurance
naming
the
CITY
insured,
shall
include
as
additional
insured
City
Council
Members,
CITY's
Engineer
and
their
consultants
, officials,
directors,
officers,
agents,
and
employees
. Insurance
afforded
them
shall
be
primary
insurance
and
the
amount
provided
shall
not
be
reduced
or
prorated
by
reason
of
any
other
insurance
they
might have.
Nothing
contained
in
these
insurance
requirements
shall
limit
the
liability
of
OWNER
or
OWNER's
insurance
companies.
Review
and
acceptance
of
insurance
certificates
shall
not
constitute
any
representation
by
CITY
or
its
representative
that
any
required
insurance
has
been
issued
.
3. OWNER'S
LIABILITY:
OWNER
shall,
at
OWNER
's
sole
cost
and
expense,
be
solely
and
completely
responsible
for
all
matters
affecting
the
design,
prosecution,
progress
and
completion
of
the
work,
(both
on
and
off
the
job
site).
OWNER
shall
be
responsible
for
observing
all
laws.
OWNER
shall
provide
for
public
convenience
and
safety,
and
safety
of
workers
,
including
OWNER's
workers
and
those
of
OWNER
's contractors
, subcontractors
and
suppliers,
and
others
contributing
to
the
work
.
OWNER
shall
protect
CITY
property
and
property
rights
of
others,
including
the
location,
maintenance
and
replacement
of
utilities
, whether
shown
on
the
plans
or
not.
OWNER
shall
give
prior
notification
to
util
ity
owners.
OWNER
shall
protect
against
and
prevent
drainage
from
storm
runoff.
OWNER
shall
not
interfere
with
the
lawful
use
by
others
of
easements
and
rights-of-way
.
Nothing
in
this
agreement,
the
specification,
or
other
contract
documents,
or
CITY's
approval
of
the
plans
and
specifications
or
inspection
of
the
work,
shall
relieve
the
OWNER
or
contractor
of
full
responsibility
for
all
aspects
of
the
work.
CITY,
City
Council
Members,
CITY
's
E-ngineer,
and
their
consultants,
and
each
of
their
officials,
directors,
officers,
employees,
and
agents
shall
not
have
liability
for
any
aspect of
the
work.
4. OWNER'S
INDEMNIFICATION:
For
Claims
(as
defined
herein)
arising
out
of
the
work
contemplated
to
be
performed
by
OWNER
under
this
agreement,
CITY
and
its
elected
and
appointed
boards,
officials,
officers,
agents,
employees
and
volunteers
(individually
and
collectively,
"lndemnitees")
shall
have
no
liability
to
OWNER
or
any
other
person
for,
and
OWNER
shall
indemnify,
protect
and
hold
harmless
lndemnitees
from
and
against,
any
and
all
liabilities
, claims
, actions,
causes
of
action,
proceedings,
suits
, damages,
judgments,
liens,
levies
,
costs
and
expenses,
including
reasonable
attorneys'
fees
and
disbursements
(collectively
"Claims"),
which
lndemnitees
may
suffer
or
incur
or
to
which
lndemnitees
may
become
subject
by
reason
of
or
arising
out
of
any
injury
to
or
death
of
any
person(s),
damage
to
property,
loss
of
use
of
property,
economic
loss
or
otherw
ise
occurring
as
a
result
of
OWNER's
negligent
performance
under
this
agreement,
or
by
the
negligent
or
willful
acts
or
omissions
of
OWNER,
its
agents,
officers,
directors,
contractors,
or
employees
.
The
foregoing
obligations
of
OWNER
shall
not
apply
to
the
extent
that
the
Claims
arise
from
the
negligence
or
willful
misconduct
of
CITY
or
its
elected
and
appointed
boards,
officials,
officers
,
agents,
employees
and
volunteers.
In
any
and
all
Claims
against
CITY
by
any
employees
of
the
OWNER,
anyone
directly
or
indirectly
employed
by
OWNER
,
or
anyone
for
whose
acts
OWNER
may
be
liable,
the
indemnification
obligation
under
this
Section
4 shall
not
be
limited
in
any
way
by
any
limitat
ion
on
the
amount
or
type
of
damages,
compensation
or
benefits
payable
by
or
for
the
OWNER
under
worker's
compensation
acts
, disability
benefit
acts
or
other
employee
benefit acts.
OWNER
shall
also
indemnify
and
hold
harmless
CITY,
City
Council
Members,
CITY's
Engineer,
and
their
consultants,
and
each
of
their
officials,
directors,
officers,
employees
and
agents
from
and
against
all
losses,
expenses,
damages
(including
damages
to
the
work
itself),
attorneys
fees
, and
other
costs,
including
costs
of
defense
, which
any
of
them
may
incur
both
during
and
9752164.2 5
of
14 Agreement
- 3
of
8 May 21, 2024, Item #11
after
completion
with
respect
to
any
latent
deficiency
in
the
design,
specifications,
surveying,
planning,
supervision,
observation
of
or
construction
of
the
improvements
referred
to
herein
or
any
injury
to
a
person
or
property,
real
or
personal,
as
a
result
of
any
such
latent
deficiency.
CITY's
costs
shall
include
the
cost
of
inspecting
and
restoring
other
portions
of
the
work
which
CITY
reasonably
suspects
may
also
be
defective
by
reason
of
known
defects
in
the
work
or
other
work
performed
by
OWNER
or
OWNER's
contractors,
subcontractors,
or
suppliers
or
designed
by
their
representatives.
Provisions
of
this
Paragraph
4 shall
remain
in
effect
ten
(10)
years
following
acceptance
of
improvements
by
the
CITY.
Nothing
contained
herein
shall
limit
CITY's
remedies
pursuant
to
Code
of
Civil
Procedure,
Section
337
.15.
5. SECURITY:
With
the
execution
of
this
agreement,
OWNER
shall
furnish
and
deliver
to
CITY,
at
no
expense
to
CITY,
a
payment
bond
and
a
performance
bond.
Each
shall
be
in
the
amount
of
the
CITY-approved
estimate
specified
on
Schedule
A.
Bonds
shall
be
furnished
by
surety
companies
satisfactory
to
the
CITY
on
the
forms
provided
by
CITY.
No
alterations
or
substitution
of
said
forms
will
be
allowed.
To
be
acceptable,
surety
companies
must
be
authorized
to
do
business
and
have
an
agent
for
service
of
process
in
California,
be
on
the
accredited
list
of
the
United
States
Treasury
Department,
and/or
have
an
"A"
policy
holders
rating
and
a
financial
rating
of
Class
XI
or
better
in
accordance
with
the
current
"Best's
Rating."
The
bonds
will
be
limited
to
amounts
acceptable
to
the
Treasury
Department.
None
of
the
following
shall
in
anywise
affect
the
obligations
of
any
surety.
Each
surety
waives
notice
thereof:
(a)
any
change,
extension
of
time,
alteration,
or
additions
to
the
terms
of
the
agreement,
or
the
work
to
be
performed,
or
the
plans
and
specifications
therefore;
(b)
any
matters
unknown
to
surety
which
might
affect
surety's
risk
except
that
CITY
will
advise
surety
upon
request
of
the
following:
(1)
any
written
claims
it
receives
from
unpaid
subcontractors
or
suppliers,
and
(2)
any
written
orders
received
from
other
public
authorities
charging
violations
of
laws,
ordinances
or
regulations,
and
(3)
failure
of
OWNER
to
comply
with
any
written
notice
to
correct
defective
work.
The
obligations
of
OWNER
shall
not
be
li
1mited
by
the
amount
of
such
bonds.
6. TYPES/AMOUNT
OF
SECURITY:
In
lieu
of
payment
and
performance
bonds,
OWNER
may
furnish
CITY
either
cash,
a
Letter
of
Credit,
or
an
Agreement
of
Deposit
as
security
for
performance.
Said
security
shall
be
in
amount
no
less
than
one
hundred
percent
(100%)
of the
cost
estimate
and,
in
addition,
for
payment
of
those
furnishing
materials,
labor
or
equipment
in
amount
not
less
than
fifty
percent
(50%)
of
the
cost
estimate.
Said
security
agreements
shall
be
on
forms
furnished
by
CITY.
No
alterations
or
substitution
of
said
forms
will
be
allowed.
The
obligations
of
OWNER
shall
not
be
limited
by
the
amount
of
the
security
required.
7. COSTS
AND
DEPOSITS:
OWNER
agrees
to
pay
CITY,
on
demand,
the
full
amount
of
all
of
CITY's
costs
incurred
in
connection
with
the
work
and
this
agreement
as
indicated
on
Schedule
A.
These
costs,
which
are
reflected
in
the
City's
established
fee
rates,
include,
but
are
not
limited
to,
plan
checking,
inspection,
materials
furnished
and
all
other
CITY
expenses,
including
engineers
and
attorneys
fees
of
CITY,
directly
attributable
to
the
work
and
this
agreement.
CITY's
costs
shall
include
the
cost
of
inspecting
and
restoring
other
portions
of
the
work
both
during
and
after
acceptance,
which
CITY
reasonably
suspects
may
also
be
defective
by
reason
of
known
defects
in
the
work
or
other
work
performed
by
OWNER
or
OWNER's
contractors,
subcontractors,
or
suppliers
or
designed
by
their
representatives.
OWNER
shall
deposit
with
CITY
concurrently
with
the
execution
of
this
agreement,
such
sums
as
the
CITY
establishes
as
deposits
set
forth
on
Schedule
A.
Should
the
actual
expenses
be
in
excess
of
the
deposit
set
forth
on
Schedule
A,
OWNER
shall
pay
the
amount
of
such
excess
on
demand.
Should
the
actual
expenses
be
less
than
the
estimated
deposit
on
Schedule
A,
the
difference,
without
9752164.2 6
of
14 Agreement
-4 of
8 May 21, 2024, Item #11
interest,
shall
be
refunded
to
OWNER
within
ninety
(90)
days
of
acceptance
of
work
by
CITY;
provided,
however,
the
CITY
shall
have
the
right
first
to
apply
any
excess
monies
to
any
other
obligation
which
OWNER
might
have
to
CITY.
Said
deposit
is
not
a
trust
fund and
sa
id
deposit
may
be
co-mingled
with
other
similar
deposits
.
8. PARTIAL
UTILIZATION:
Until
all
work
has
been
completed
and
accepted
by
CITY
and
all
other
public
authorities
having
jurisdiction,
OWNER
shall
be
responsible
for
the
care,
maintenance
of,
and
any
damage
to
the
work.
When
the
work
or
any
portion
of
it
is
sufficiently
complete
to
be
utilized
or
placed
into
service,
CITY
shall
have
the
right
upon
written
notification
to
OWNER
to
utilize
such
portions
of
the
work
and
to
place
the
operable
portions
into
service
.
With
this
notice
and
commencement
of
utilization
or
operation
by
the
CITY,
OWNER
shall
be
relieved
of
the
duty
of
maintaining
the
portions
so
utilized
or
placed
into
operation.
However,
such
use
and
operation
shall
not
relieve
OWNER
of
the
full
responsibility
for
completing the
work
in
its
entirety,
for
making
good
defective
work
and
materials,
for
protecting
the
work
from
damage,
and
for
being
responsible
for
damage
and
for
the
work
as
set
forth
herein.
Nor
shall
such
action
by
CITY
be
deemed
completion
and
acceptance.
Further
, such
action
shall
not relieve
OWNER,
or
OWNER's
sureties
and
insurers,
of
the
prov
isions
hereof
relating
to
indemnity
and
guarantees
.
9. ACCEPTANCE
OF
PROJECT/WARRANTY:
Acceptance
of
the
work
shall
only
be
by
action
of
the
City
Counci
l.
Neither
the
acceptance
nor
any
prior
inspections
or
failure
to
inspect
shall
constitute
a
waiver
by
CITY
of
any
defects
in
the
work.
From
and
after
acceptance,
the
work
shall
be
owned
and
operated
by
CITY.
As
a
condition
to
acceptance,
OWNER
and
OWNER's
contractor
shall
each
certify
to
CITY
in
writing
that
all
of
the
work
has
been
performed
in
strict
conformity
with
the
agreement
and
that
all
costs
have
been
paid
or
supply
to
CITY
security,
satisfactory
to
CITY,
guaranteeing
such
performance.
In
addition
to
OWNER'S
other
obligations
under
the
agreement,
OWNER
warrants
all
work
and
materials
to
be
of
good
quality
and
fit
for
the
purpose
and
intended
use.
OWNER
shall
repair,
replace,
and
restore
any
and
all
such
work
which
may
prove
defective
in
workmanship
and/or
materials
, without
expense
whatsoever
to
CITY;
ordinary
wear
and
tear
and
unusual
abuse
or
neglect
excepted
.
OWNER
shall
also
repair,
replace,
and
restore
any
other
work
which
is
displaced
in
correcting
defective
work,
as
well
as
other
portions
of
the
work
which
CITY
by
reason
of
such
defects
reasonably
suspects
may
also
be
defective.
OWNER
shall
provide
a
warranty
bond
or
other
security
satisfactory
to
CITY
for
a
period
of
one
(1)
year
.
Said
bond
or
other
security
shall
be
in
an
amount
satisfactory
to
CITY,
but
in
no
case
less
than
ten
(10)
percent
of
project
cost.
Said
bond
or
other
security
shall
in
no
way
limit
the
time
within
which
CITY
may
bring
action
for
breach
of
this
warranty
(CCP
337)
or
action
for
latent
defects
(CCP
337.15)
nor
the
amount
of
such
claim
or
judgment.
In
the
event
of
a fa
ilure
to
commence with
the
compliance
of
above-mentioned
conditions
within
seven
(7)
calendar
days
after
being
notified
in
writing
or
failure
to
diligently
pursue
such
compliance
to
completion,
CITY
is
hereby
authorized
to
proceed
to
have
the
defects
repaired
and
made
good
at
the
expense
of
OWNER
who
hereby
agrees
to
pay
the
cost
and
charges
therefor
immediate
ly
on
demand.
If,
in
the
opinion
of
CITY,
nonconforming
work
creates
a
dangerous
condition
or
requires
immediate
correction
or
repair
to
prevent
further
loss
to
CITY
or
to
prevent
interruption
of
operations,
CITY
will
attempt
to
give
the
OWNER
notice.
If
OWNER
cannot
be
contacted
or
does
not
comply
with
CITY's
request
for
correction
within
a
reasonable
time
as
determined
by
CITY,
CITY
may
proceed
to
make
such
correction
or
provide
such
repair
.
The
costs
of
such
correction
or
repair
shall
be
charged
against
OWNER,
who
agrees
to
make
payment
for
said
9752164.2 7
of
14 Agreement
- 5
of
8 May 21, 2024, Item #11
costs
upon
demand.
Corrective
action
by
CITY
will
not
relieve
OWNER
or
OWNER's
sureties
or
insurers
of
the
guarantees
and
indemnities
of
this
agreement.
This
paragraph
does
not
in
any
way
limit
CITY's
remedies
pursuant
to
Code
of
Civil
Procedure,
Section
337
and
337
.15
, or
the
guarantee
on
any
items
for
which
a
longer
guarantee
is
specified
or
on
any
items
for
which
a
manufacturer
or
supplier
gives
a
longer
guarantee
period.
OWNER
agrees
to
act
as
a
co
-guarantor
with
such
manufacturer
or
supplier
and
shall
furnish
CITY
all
appropriate
guarantee
or
warranty
certificates
upon
completion
of
the
project.
No
manufacturers
guarantee
period
shall
in
any
way
limit
the
liability
of
OWNER
or
OWNER's
sureties
and
insurers
under
the
indemnity
or
insurance
provisions
of
this
agreement.
10. EASEMENTS
AND
FEE
INTERESTS:
OWNER
shall
at
OWNER's
sole
cost
and
expense,
furnish
CITY
with
appropriate
easements
and
fee
title
to
required
facilities
sites
for
the
entire
work,
free
and
clear
of
all
liens,
encumbrances,
restrictions,
and
covenants,
other
than
current
real
property
taxes
then
a
lien
but
not
yet
payable
.
At
OWNER
's
cost
and
expense,
OWNER
shall
furnish
CITY
with
an
acceptable
title
insurance
policy
insuring
CITY
has
title
as
required
above
with
an
endorsement
insuring
CITY
against
mechanic's
lien
claims
arising
out
of
the
performance
of
the
work
.
If
required
, easements
shall
be
in
standard
form
acceptable
to
CITY,
shall
be
not
less
than
the
width
CITY
determines
necessary
to
maintain
the
work
and
shall
be
executed
and
delivered
to
CITY
concurrent
with
execution
of
this
agreement.
Easements
shall
be
recorded
prior
to
CITY
accepting
the
work
or
furnish
ing
services
to
any
portions
of
the
property
under
development
(other
than
those
as
may
be
delivered
under
a
temporary
service
agreement
with
OWNER)
. The
foregoing
requirements
concerning
the
form
and
timing
of
the
easements
does
not
apply
to
any
permanent
easements
are
being
granted
to
the
CITY
through
OWNER's
final
map.
11 .
CONTRACTORS
AND
AGENTS:
OWNER
shall
be
as
fully
responsible
to
CITY
for
the
acts
and
omissions
of
OWNER's
contractor
and
of
the
persons
directly
or
indirectly
employed
by
OWNER's
contractor
as
OWNER
is
for
the
acts
and
omissions
of
persons
directly
or
indirectly
employed
by
OWNER.
Nothing
contained
in
the
agreement
shall
create
any
contractual
relationship
between
any
contractor
or
others
and
CITY.
OWNER
shall
bind
every
contractor"
to
be
bound
by
the
terms
of
this
agreement.
12. DEFAULT
BY
OWNER:
OWNER
shall
be
in
default
of
this
agreement
if
OWNER
refuses
or
fails
to
construct
the
improvements
required
he
reby
in
a
workmanlike
manner,
or
OWNER
refuses
or
fails
to
prosecute
the
work
or
any
separable
part
thereof
with
such
diligence
as
will
ensure
its
completion
within
the
time
specified
herein,
or
any
written
extension
thereof
, or
fails
to
complete
such
work
within
such
time,
or
if
OWNER
should
be
adjudged
bankrupt,
make
a
general
assignment
for
the
benefit
of
creditors,
or
if a
receiver
should
be
appointed
on
account
of
OWNER's
insolvency
or
if
OWNER
or
the
contractor,
or
any
of
their
subcontractors
violate
any
of
the
provisions
of
this
agreement,
or
if OWNER
fails
to
make
prompt
payment
for
materials
or
labor
or
if
OWNER
disregards
laws,
ordinances,
or
instructions
of
CITY
.
CITY
shall
serve
written
notice
upon
the
OWNER
and
OWNER's
surety
of
its
intention
to
declare
this
agreement
in
default.
Said
notice
will
contain
the
reasons
for
such
intention
to
declare
a
default.
Unless,
within
ten
(10)
days
after
the
service
of
such
notice,
such
violations
shall
cease
and
satisfactory
arrangements
for
the
corrections
thereof
be
made
, this
agreement
shall
upon
the
expiration
of
said
time
be
in
default.
Upon
such
default,
CITY
shall
serve
written
notice
thereof
upon
the
surety
and
OWNER
, and
the
surety
shall
have
the
right
to
take
over
and
perform
this
agreement.
If
the
surety
does
not
,
within
fifteen
(15)
days
after
the
serving
upon
it
of a
notice
of
default,
give
CITY
written
notice
9752164.2 8
of
14 Agreement
-6 of
8 May 21, 2024, Item #11
of
its
intention
to
take
over
and
perform
this
agreement
or
does
not
commence
performance
thereof
within
thirty
(30)
days
from
the
date
of
CITY's
notice,
CITY
may
take
over
the
work
and
prosecute
the
same
to
the
extent
of
completion
it deems
necessary
by
contract
or
by
any
other
method
it may
deem
advisable
for
the
account
and
at
the
expense
of
OWNER,
and
the
surety
shall
be
liable
to
CITY
for
any
cost
or
other
damage
occasioned
CITY
thereby
.
In
such
event,
CITY
may,
without
liability
for
so
doing,
take
possession
of
and
utilize
in
completing
such
work,
such
materials,
appliances,
plants,
and
other
property
belonging
to
OWNER
that
may
be
on
the
site
of
the
work
and
be
necessary,
therefore.
Should
surety
fail
to
take
over
and
diligently
perform
the
agreement
upon
Principal's
default,
surety
agrees
to
promptly,
on
demand,
deposit
with
CITY
such
amount
as
CITY
may
reasonably
estimate
as
the
cost
of
completing
all
of
OWNER's
obligations.
For
any
such
work
that
CITY
elects
to
complete
by
furnishing
its
own
employees,
materials,
tools,
and
equipment,
CITY
shall
receive
reasonable
compensation
therefore,
including
costs
of
supervision
and
overhead.
CITY
may,
at
its
option,
elect
not
to
complete
any
or
all
of
the
work
and
may
elect
not
to
accept
any
of
the
work
already
completed
. If
CITY
elects
not
to
accept
any
of
the
work,
then
all
CITY's
obligations
to
OWNER
and
the
lands
to
be
served
under
this
Agreement
only
shall
terminate
.
CITY's
obligations
to
OWNER
and
the
lands
to
be
served
shall
under
this
Agreement
continue
to
the
extent
of
any
acceptance,
subject
to
CITY's
right
to
offset
any
sums
due
it.
The
foregoing
provisions
are
in
addition
to,
and
not
in
limitation
of,
any
other
rights
or
remedies
available
to
CITY.
13. REMOVAL
OF
IMPROVEMENTS:
If
the
work
is
suspended
or
otherwise
not
continuously
prosecuted
for
any
cause
whatsoever,
within
or
without
the
time
for
completion,
OWNER
shall,
at
OWNER's
sole
cost
and
expense,
remove
and
replace
all
or
any
portion
of
the
work
already
completed
and
inspected
which
CITY,
in
its
sole
discretion,
determines
is
substandard,
damaged,
or
may
constitute
danger
to
the
public.
14 .
ATTORNEY
FEES
AND
COSTS:
Should
CITY
engage
an
attorney
to
enforce
any
provision
of
this
agreement
or
to
defend
any
claim
brought
by
anyone
arising
out
of
the
failure
of
OWNER
to
perform
any
of
OWNER's
obligations
under
this
agreement,
OWNER
shall
pay
all
of
CITY's
attorney's
fees
incurred
in
connection
therewith,
with
or
without
suit,
whether
or
not
said
attorney
is
in
the
regular
employ
of
the
CITY
.
15. FUTURE
CHARGES:
Nothing
in
this
agreement
shall
relieve
OWNER
or
OWNER's
successors
or
assigns
of
any
obligation
to
pay
any
connection,
installation,
expansion
or
other
fees,
charges,
or
other
expenses,
including
operation
and
maintenance
expenses,
required
under
any
present
or
future
established
ordinances,
rules,
regulations,
and
policies
of
CITY.
16. ASSIGNMENT:
The
performance
of
the
agreement
may
not
be
assigned,
by
OWNER
except
upon
the
written
consent
of
CITY.
Consent
will
not
be
given
to
any
proposed
assignment
which
would
relieve
OWNER
or
OWNER's
sureties
of
their
responsibilities
under
the
agreement,
unless
CITY
finds
that
assignee
can
perform
this
agreement
and
provide
security
comparable
to
that
provided
by
OWNER.
17. NOTICE:
All
notices
required
hereunder
shall
be
deemed
served
or
given
upon
the
earlier
of
actual
receipt
or
deposit
in
the
United
States
Mail,
first
class
postage
prepaid,
addressed
to
OWNER
at
the
address
set
forth
below,
to
the
surety
at
the
address
in
the
security
instrument,
and
to
CITY
at
P.O.
Box
789,
Poway,
California
92074-0789.
9752164.2 9
of
14 Agreement
-7 of
8 May 21, 2024, Item #11
CITY
OF
POWAY
OWNER:
MC
POWAY
97 LLC,
a
Delaware
limited
liability
company
ADDRESS:
9988
Hibert
Street,
Suite
210,
San
Diego
, CA
92131
PHONE:
(619)
794-1311
By:
Meridian Communities,
LLC,
a
Delaware
limited
liabili
y
company (Signature
Must
Be
Notarized)
Approved
as
to
Form:
Office
of
the
City
Attorney
\.../
"'
Alan
Fenstermacher,
City
Attorney
Date
m
:\engserv\land
development
projects\2020\sti20-002
poway
commons\standard
agreement\sti20-002
standard
agreement
for
construction
of
public
imps.docx
9752164.2 10
of
14 Agreement
- 8
of
8 May 21, 2024, Item #11
California
All-Purpose
Acknowledgment
CIVIL
CODE§
1189
A
notary
public
or
other
officer
completing
this
certificate
verifies
only
the
identity
of
the
individual
who
signed
the
document
to
which
this
certificate
is
attached,
and
not
the
truthfulness,
accuracy,
or
validity
of
that
document.
STATE
OF
CALIFORNIA
COUNTY
OF
SAN
DIEGO
On
August
20,
2020
before
me,
Carol
S.
Legg,
Notary
Public,
personally
appeared
Christopher
Matthew
Hazeltine,
who
proved
to
me
on
the
basis
of
satisfactory
evidence
to
be
the
person-f5t
whose
name-f5t
is/are
subscribed
to
the
within
instrument
and
acknowledged
to
me
that
he/SRe/tA-e-y
executed
the
same
in
his/4ef/tl=le«:
authorized
capacity(f€-5),
and
that
by
his/4ef/tl=le«:
signatureM
on
the
instrument
the
personf;t,
or
the
entity
upon
behalf
of
which
the
personM
acted,
executed
the
instrument.
I certify
under
PENALTY
OF
PERJURY
under
the
laws
of
the
State
of
California
that
the
foregoing
paragraph
is
true
and
correct.
WITNESS
my
hand
and
official
seal.
········1
CAI\OL
S LEGG
Notary
Public
• California
z
Sin
Oi~o
County
ll;
Commi11ion
r 2283958
-
My
Come,:,
Expires
Apr
28,
2023
OPTIONAL
Title
or
type
of
document:
Standard
Agreement
for
Construction
of
Public
Improvements
STl20-002
Poway
Commons
Document
Date:
Undated
Number
of
Pages:
Eight
(8)
Plus
schedule A
and
Schedule
B
Signers
Other
Than
Named
Above:
Guy
Asaro
for
Meridian
Companies
11 of
14 May 21, 2024, Item #11
n 1 I I ' ' nl ' I /1 II I l
CALIFORl'{]A
ALL-PURPOSE
CERTIFICATE
OF
ACKNO\VLEDGMENT
/ A
notuy
public
or
other
officer
completing
this
certificate
verifies
only
the
identity
of
lhe
individual
who
signed
the
document
to
j
I which
th.is
cer.ilicate
is
attached,
and
not
the
truthfulness,
accuracy,
or
validity
of
that
doa=ent.
1 State
of
California
County
of
SAN
DIEGO
before
me,
KEVIN
SCOTT
MILLER
, Notary
Public,
(Herc
insen
name
and
title
of
the
officer)
personally
appeared
_......,,G"""'
· ·....,u,,_{+---'-=L,,_;;~_-'--b,__,__.___S.__9_,_
· f.L.-a:00'--------------
who
proved
to
me
on
the
basis
of
satisfactory
evidence
to
be
the
person(s)
whose
name(s)
is/are
subscribed
to
the
within
instrument
and
acknowledged
to
me
that
he/she/they
executed
the
same
in
his/her/their
authorized
capacity(ies),
and
that
by
his/her/their signature(s)
on
the
instrument
the
perso:n(s),
or
the
entity
upon
behalf
of
which
t.1.e
person(s)
acted,
executed
t~e
instrument.
I certify
under
PENAL
TY
OF
PERJURY
under
the
[aws
of
the
State
of
California
that
the
foregoing
paragraph
is
true
and
correct.
WITNESS
my
hand
and
official
seal
.¼
"Jll~
A
'lf}j;,t
=
Signature
ofN01a1y
Public
(Notary
Seal)
e
ft
e
e
ft
e
"':'>,,,t
KEVIN
SCOTT
MILLER
Notary
Public
-California
San
Diego
County
~
Commhslon
U 225103Z
-
My
Comm
. Expires
Aug
22,
2022
ADDITIONAL
OPTIONAL
INFORMATION
DESCR1PTiON
OF
THE
ATTACHED
D0CUivlENT
(Title
or
description
of
attached
document)
(Title
or
description
of
attached
docurnenl
continued)
Number
of
Pages
__
Document
Date
___
_
(Additional
infonnation)
CAPACITY
CLAIMED
BY
THE
SIGNER
•• -
-□
Inclivicfiiai
{s}'
-
-
0 Corporate
Officer
(Title)
D
Partner(s)
D
Attorney-in-Fact
D
Trustee(s)
□
0th~-----------
INSTRUCTIONS
FOR
C0JV1PLETING
THIS
FORM
Any
acfawwledgment
complet
ed
in
California
muse
contain
verbiage
e=cc!y
as
appears
above
in
the
notary
section
or
a
separare
acknowledgment
form
must
be
properly
comp!ered
and
aJiached
co
cf,.ar
document.
The
only
exception
ls
if
a
document
is
to
be
recorded
oucside
of
California
. In
such
instances
. any
ahemarive
ac!aww!edgmen(
verbiage
as
may
be
primed
on
such
a
document
so
long
as
the
verbiage
does
IU}f
require
the
notary
co
do
something
that
is
illegal
for
a
notary
in
California
(i.e
. cenijj,ing
che
authorced
capaciry
of
the
signer).
Pf
ease
check
the
document
carefid!y
for
proper
norarial
wording
and
atrach
this
form
if required
.
,
State
and
County
infonnation
must
be
the
Seate
and
County
where
the
document
signer{sJ
personally
appeared
before
the
notary
public
for
acknowledgment
•
Date
of
notarization
must
be
tl\e
date
that
the
signer{s)
personally
appeared
which
must
also
be
the
same
date
the
acknowledgment
is
completed.
,
The
notary
public
must
print
his
or
her
name
as
it
appears
within
his
or
her
commission
followed
by
a comma
and
then
your
title
(notary
public)
.
•
Print
the
name(s)
of
docwnent
,igner{s)
who
personally
appear
at
the
time
of
notarization
.
•
•
lndicare
the
correct
singular
or
plural
fonns
by
crossing
off
incorrect
fonns
(i.e
.
111
Rel'she/tl,ey;-
is
lr:B)
or
circling
the
correct
forms.
Failure
tO
correctly
indicate
this
!U
infonnation
may
leaiJ-to
·rejection
·ofdocument
-recording.
----·
. _
iii
•
The
notary
seal
impression
must
be
clear
and
photographicaJly
reproducible
.
-;u
!mpression
must
not
cover
text
or
lines.
!f
seal
impression
smudges,
re-seal
if
a
l
sufficient
area
pemiits.
otherwise
complete
a different
acknowledgment
fonn.
•
Signature
of
the
notary
pub!
ic
must
match
the
signature
on
file
with
the
office
of
the
county
cleric.
❖
Additional
information
is
not
required
but
could
help
to
ensure
this
acknowledgment
is
not
misused
or
attached
to
a different
document
❖
Indicate
tide
or
type
of
attached
docwnent,
number
of
pages
and
date.
❖
lndica,te
the
capacity
claimed
by
the
signer
. If
the
claimed
capacity
is
1 corporate
officer,
indicace
the
title
(i.e
CEO.
CFO,
Secretary)
.
Securely
e.ttach
this
document
to
the
signed
document
C
Z004-ZD
tS
ProU.ak
Sign
iog
5':rvi~
tac
. -AU
Rights
Rest:rYed.
www
.ThcProLi.nk.:::om
-Na.ttor.
wt
c!c
Nowy
Service
12 of
14 May 21, 2024, Item #11
OWNER
:
MC
Poway 97,
LLC
Agreement
Date
SCHEDULE
A
TO
STANDARD
AGREEMENT
FOR
CONSTRUCTION
OF
PUBLIC
IMPROVEMENTS
(STl20-002
Poway
Commons)
This
schedule
is
attached
to
and
made
a
part
of
the
Standard
Agreement
for
Construction
of
Public
Improvements
between
CITY
and
OWNER
for
the
above-referenced
project.
The
following
correspond
to
the
paragraph
numbers
of
the
agreement.
1. Completion
Date:
2. Liability
Insurance
Limits:
3. a.
Approved
Cost
Estimate:
b.
Approved
Security
Amount:
Performance
·
Payment (Labor
&
Materials)
4. Deposit/Fee
Amount:
Prior
to
issuance
of
first
Building
Permit
or
two
(2)
years
from
the
date
of
this
agreement,
whichever
comes
first.
$2,000,000.00,
combined
limit
each
occurrence
$293,700 $293,700 $146,850 See
Note
Below
5. Warranty
Security
Amount:
~$_29~,~3_70
__________
_
(To
be
posted
prior
to
acceptance
of
work)
Note
:
Prior
to
start
of
construction,
a
deposit
shall
be
paid
to
the
City
to
cover
inspection
fees
and
related
post-plan
approval
tasks.
The
minimum
deposit
shall
be
based
on
the
City's
fee
rate
at
the
time
of
payment.
Schedule
A
to
Standard
Agreement
- 1
of
1 13
of
14 May 21, 2024, Item #11
OWNER:
MC
Poway
97. LLC
SCHEDULE
B
(MONUMENT
SETTING)
TO
STANDARD
AGREEMENT
FOR
CONSTRUCTION
OF
PUBLIC
IMPROVEMENTS
(STl20-002
Poway
Commons)
Agreement
Date
This
schedule
is
attached
to
and
made
a
part
of
the
Standard
Agreement
for
Construction
of
Public
Improvements
between
CITY
and
OWNER
for
the
above-referenced
property.
Security
Amount:
$
15,000.00
1. Monument
Setting.
OWNER
at
OWNER's
sole
cost
and
expense
shall
within
thirty
(30)
days
of
acceptance
of
the
work,
cause
a
licensed
surveyor
engineer
to
set
all
monuments
and
stakes
not
installed
on
the
date
of
recording
of
the
Final
Map
for
the
above
reference
property,
or
which
having
been
set
were
removed,
altered
or
destroyed
before
acceptance
.
2. Security
Deposit.
OWNER
concurrently
herewith
shall
deposit
the
amount
spec
ified
above
in
a
form
approved
by
the
City
engineer
, as
additional
and
independent
security
for
the
performance
of
the
setting
and
payment
of
the
engineer
or
surveyor.
3. Notice
of
Setting.
Within
five
(5)
days
after
the
final
setting
of
all
monuments
has
been
completed,
the
engineer
or
surveyor
shall
give
written
notice
thereof
to
OWNER
and
the
CITY
.
4. Payment
of
Engineer.
Upon
completion
of
setting
to
CITY's
satisfaction
and
payment
to
the
engineer
or
surveyor,
OWNER
shall
present
to
CITY
evidence
of
such
payment
and
receipt
thereof
by
the
engineer
or
surveyor
and
the
deposit
will
then
be
refunded
to
OWNER.
5. Nonpayment.
If OWNER
does
not
present
evidence
of
payment
and
if the
engineer
or
surveyor
notifies
the
CITY
of
nonpayment,
the
CITY
may,
within
three
(3)
months
from
the
date
of
said
notification,
pay
the
engineer
or
surveyor
the
amount
due
from
any
deposit
or
security
therefor
.
6. Death
or
Disability
of
Engineer.
Upon
the
death,
disability
or
retirement
from
practice
of
or
refusal
to
act
by
the
engineer
or
surveyor
charged
with
the
responsibility
for
setting
monuments,
CITY
may
direct
its
engineer
or
such
engineer
or
surveyor
as
it
may
select,
to
set
the
monuments.
If
the
original
engineer
or
surveyor
is
replaced
by
another,
the
former
may,
by
letter
to
CITY,
release
the
right
to
set
the
final
monuments
to
the
substitute
surveyor
or
engineer.
When
the
monuments
are
so
set,
the
substitute
engineer
shall
amend
any
Final
Map
in
accordance
with
the
correction
and
amendment
provisions
of
Sections
66469
through
66472
of
the
Subdivision
Map
Act.
All
provisions
of
this
agreement
relating
to
payment
shall
apply
to
the
service
performed
by
the
substitute
engineer
or
surveyor.
14 of
14 May 21, 2024, Item #12
DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
AGENDA REPORT CityofPoway
May 21, 2024
Honorable Mayor and Members of the City Council
Robert Manis, Director of Development Services /M
Stan Donn, City Planner !7ul
858-668-4604 or [email protected]
CITY COUNCIL
Amendments to Chapters 17.08, 17.30 and 17.52 of the Poway Municipal Code Regarding Minor Development Review Applications; Zoning Ordinance Amendment (ZOA 24-0002)
City Staff, in accordance with direction from the Mayor and City Council at the February 6, 2024, meeting, prepared amendments to the Poway Municipal Code (PMC) for eliminating certain requirements of the Minor Development Review Application (MORA). The proposed amendments would eliminate the City's requirement for MDRAs for the construction of a single home, additions, remodels, detached accessory structures, and unlighted recreational courts.
Recommended Action:
It is recommended the City Council introduce the Ordinance (Attachment A) for first reading by title only, waive further reading, and schedule the adoption of the Ordinance for the June 4, 2024 regular City Council meeting.
Discussion:
On February 6, 2024, the Mayor presented a Mayor Initiated Item to the City Council (Attachment B) regarding MDRAs for Residential Projects, which outlined the current requirements for MDRAs and associated issues pertaining to costs and time involved with processing these approvals. To improve efficiencies and reduce unnecessary costs and time associated with the development process for MDRAs, a recommendation to eliminate the MORA requirement for the construction of a single home, additions, remodels, detached accessory structures, and unlighted recreational courts was presented.
The City Council concurred with the Mayor's recommendation and directed City staff to prepare the requested amendments to the PMC.
The proposed Ordinance would eliminate the City's current requirement for an MORA for the construction of a single-family home, additions and remodels that add 750 square feet or more of habitable space, detached accessory structures greater than 1,500 square feet and unlighted 1 of 11
May 21, 2024, Item #12
recreational courts.
PMC Amendments
The following Chapters of the PMC associated with the MDRA are proposed to be amended to eliminate the MDRA requirement:
1. 17.08.180 -Accessory buildings and structures. The requirement for accessory building or structure that results in a new habitable space that is 750 square feet or larger.
2. 17.08.180(C)(1) -The requirement on lots less than two net acres in size, a detached non habitable accessory building that does not exceed 50 percent of the gross floor area of the living space of the main residence on the lot but is greater than 1,500 square feet.
3. 17.08.21 0(B) -Manufactured housing development standards. The requirement for a minor development permit for the installation of a manufactured home if more than 10 years have elapsed between the date of the manufactured and the date a complete minor development review application for installation of that home is received.
4. 17.30.01 0(A) -The requirements for unlighted recreational courts.
5. 17.52.050(A) (1) -Single-Family homes not within tract subdivision.
6. 17.52.050(A)(2) -Construction of an addition to a single-family home, a detached accessory building and/or reconstruction of a single-family home which results in more than an additional 750 square feet of habitable space.
7. 17.52.050(A)(3) -On lots less than two net acres in size, the construction of a detached non habitable accessory building that does not exceed 50 percent of the gross floor area of the living space of the man residence on the lot but is greater than 1,500 square feet gross floor area, as allowed pursuant to PMC 17.08.180(C).
Development Services Information Sheet
Some projects or project sites can trigger other requirements that need to be met prior to the issuance of a building permit. The MDRA provides a mechanism to identify all necessary permits and approvals associated with a project. In order to provide that information to an applicant without a MDRA, staff has developed an information sheet (Attachment C) outlining other possible requirements and where to find information about them, including whether they are applicable to a project. This will help an applicant determine timing and sequencing of various components of their project. Examples include, but are not limited to, projects in the Habitat Conservation Plan (HCP) that impact habitat, projects that trigger a grading permit, sites with cultural resources, and projects within the very high fire hazard zone. The information sheet will provide applicants with guidance regarding additional information that may be required if the project triggers other approvals in addition to a building permit.
Environmental Review:
The proposed Ordinance amends the PMC is not a "Project" as defined under Section 15378(b)(5) of the California Environmental Quality Act (CEQA) State Guidelines; therefore, no environmental review is required.
Fiscal Impact:
None.
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May 21, 2024, Item #12
Public Notification:
A Notice of Public Hearing was published in the Poway News Chieftian on May 9, 2024.
Attachments:
' A. Ordinance
B.
C.
February 6, 2024 Memorandum
Information Sheet
Reviewed/Approved By:
Wendy aserman
Assistant City Manager
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Reviewed By:
Alan Fenstermacher
City Attorney
Approved By:
c~
City Manager
May 21, 2024, Item #12
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, AMENDING CHAPTERS 17.08, 17.30
AND 17.52 OF THE POWAY MUNICIPAL CODE TO ELIMINATE
THE MINOR DEVELOPMENT REVIEW REQUIREMENT FOR
CERTAIN TYPES OF PROJECTS
WHEREAS, the City Council of the City of Poway wishes to protect and preserve the quality of the residential and commercial areas of the City, as well as the quality of life throughout the City, through effective land use and planning, and process improvements; WHEREAS, the City Council of the City of Poway has determined it is unnecessary to require a Minor Development Review Application (MORA) for the construction of a single home, additions, remodels, detached accessory structures and unlighted recreational courts in the City; WHEREAS, the City Council of the City of Poway directed City staff to prepare amendments to the Poway Municipal Code (PMC) to eliminate the MORA requirement for the construction of a single home, additions, remodels, detached accessory structures and unlighted recreational courts in the City;
WHEREAS, City staff has prepared amendments to the PMC to eliminate the MORA requirement for the construction of a single home, additions, remodels, detached accessory structures and unlighted recreational courts in the City; and WHEREAS, the PMC amendments are opportunities to cut red tape, improve efficiencies and reduce unnecessary costs and time associated with the development process, particularly for individual property owners trying to build a single home, complete an addition, remodel, a detached accessory structure, or build an unlighted recreational court.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF POWAY DOES ORDAIN AS FOLLOWS:
SECTION 1: The above recitations are true and correct.
SECTION 2: The City Council hereby approves this Ordinance and amends certain sections of the PMC as specified below. Removals are indicated with strikethroughs. Additions are indicated with underlines.
SECTION 3: The City Council finds that this Ordinance amending the PMC is not a "Project" as defined under Section 15378(b)(5) of the California Environmental Quality Act (CEQA) State Ouidelines; therefore, no environmental review is required.
SECTION 4: Section 17.08.180 of the PMC shall be amended as follows:
An accessory building or structure, attached to or detached from the main residence, shall be located on a lot that contains a main residence and shall comply with the setback, height and lot coverage requirements as contained in PMC 17.08.160 except as provided in this section. Except for an accessory dwelling unit or a junior accessory d111elling unit as described in subsection A of this section, a minor development review application shall be required for an accessory building or structure that results in ne'N habitable space that is 750 square feet or larger. Except as 4 of 11
ATTACHMENT A
May 21, 2024, Item #12
Ordinance No. ***