CITY OF POWAY
CITY COUNCIL REGULAR MEETING
MINUTES
October 15, 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 Julie Procopio; Director of Finance Craig Schmollinger; 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 Mayor/Vice Chair, Councilmember/Director, City Manager/Executive Director, Assistant City Manager/Assistant Executive Director, City Attorney/Counsel, City Clerk/Secretary and Director of Finance/Finance Officer.)
PLEDGE OF ALLEGIANCE:
Deputy Mayor Frank led the Pledge of Allegiance.
MOMENT OF SILENCE:
Mayor Vaus led a moment of silence.
PRESENTATIONS:
None.
PUBLIC COMMENT:
Tony Rubino, speaking on behalf of the North County Special Needs Community Foundation, announced the 10th Annual Poway Heroes Softball Tournament to be held on November 8, 2024 1 of 4
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at Sportsplex USA Poway.
CONSENT CALENDAR:
Motioned by Mayor Vaus, seconded by Deputy Mayor Frank to approve Consent Calendar Items 1 through 6. Motion carried 5/0 by the following roll -call vote:
Ayes: Pepin, De Hoff, Edmondson, Frank, Vaus
Noes: None
Abstained: None
Absent: None
Disqualified: None
1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda
2. Approval of the July 16, 2024, and August 6, 2024 Regular City Council Meeting Minutes
3. Adoption of the 2025 City Council Meeting Calendar
4. Award of Agreement to Brian Cox Mechanical, Inc. for Public Facilities Renovation HVAC Replacement at City Hall Server Room
5. Award of Agreement to NBS Government Financial Group dba NBS for Annual Levy Process for Special Districts and Fire Protection Special Tax; RFP No. 25-003
6. Resolution No. 24-066, Approving Changes to the City of Poway Position Classification Plan, Part -Time Temporary/Seasonal Wage Schedule, and Non -Safety Salary Schedule and Authorization to Establish a Differential for Specific Part -Time Temporary/Seasonal Employees
ORDINANCES FOR INTRODUCTION:
None.
PUBLIC HEARINGS:
None.
STAFF REPORTS:
7. Set Public Hearing for Proposed San Diego County Water Authority Pass -Through Water Rates for 2025 Implementation
Director of Finance Craig Schmollinger presented the item along with a PowerPoint presentation. He explained the San Diego County Water Authority (Water Authority) from which the City purchases nearly all of its untreated water, increased water rates for 2025 significantly beyond what was anticipated when the City of Poway's current four year water rates were adopted in November 2021.
Mr. Schmollinger explained the concept of a pass -through provision, primarily if Water Authority costs or other costs outside of an agency's control, such as electricity, increase 2of4
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beyond what was assumed in a rate model, the increases are passed on directly to customers.
He stated, 20 of the 23 water retail providers in San Diego County have pass -through provisions in their adopted rate structure. The City of Poway does not currently have a pass - through provision in its rate structure but staff will recommend consideration for including pass -through provisions in the next full rate study. Staff is bringing forward the Water Authority pass- through rates at this time because the rate changes taking effect January 1, 2025 are more than double the assumed annual increase of 6% to Poway. The fiscal impact of these changes to Poway is an additional $1.27 million in 2025 for purchased water costs. The City's water fund is unable to absorb this substantial unplanned increase in new water purchase costs.
Mr. Schmollinger discussed factors driving the Water Authority rate increase.
Mr. Schmollinger explained the City retained Raftelis Financial Consultants as third -party water rate setting experts to analyze the water rate model based on large wholesale water purchase cost increases from the Water Authority, calculate equitable and legal pass -through rate adjustments for consideration, and comply with Proposition 218 and other legal statutes.
Mr. Schmollinger provided a breakdown of the average single family residential customer impact, showing the existing, approved, and proposed estimated water bills for average water use Poway residents. Mr. Schmollinger noted the proposed pass -through adjustments to the average residential customer would equate to just over a 3% increase. He also shared that a bill estimator tool was being posted on the City's website for water customers to estimate the impact on their individual bills. Mr. Schmollinger noted the City has remained at the countywide average since they adopted the 4-year rate adjustments in 2021.
Mr. Schmollinger showed the proposed Water Authority pass -through rates, comparing the current adopted 2025 rates, proposed pass -through adjustment rates, and the proposed revised rates. He noted the recommended Council action would set the public hearing for the consideration of the pass -through rates on December 3, 2024 and authorize the issuance of a Proposition 218 notice, which is the 45-day required notice mailed to all water served parcels and owners of those parcels.
Public Comment
None.
End of Public Comment.
Council discussion ensued including their responsibility in maintaining the water system and the impacts of the City's water supplier's (Water Authority) substantial increases on the current water rate structure was noted.
Motioned by Mayor Vaus, seconded by Deputy Mayor Frank to direct staff to set the public hearing for December 3, 2024 and proceed with the Proposition 218 process which includes mailing the notice of public hearing to ratepayers pursuant to California law for this proposed wholesale pass -through water rate adjustment. Motion carried unanimously.
WORKSHOPS:
None.
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COUNCIL -INITIATED ITEMS:
None.
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C. 53232(d))
Councilmember Edmondson congratulated the Poway Chamber of Commerce for hosting the 2025 Poway Fall Festival on October 6th, and thanked City of Poway Public Works staff for their assistance with the event. She thanked the Fire Department for hosting the Poway Fire Open House on October 12th at the Poway Fire Department Training Tower. Additionally, she reported attending the Poway On Stage 35th Anniversary Gala at the Poway Center for the Performing Arts (PCPA) on October 12th, a fundraising event featuring a performance by Kristin Chenoweth.
Deputy Mayor Frank wished her husband a happy 8th wedding anniversary. She thanked Poway Fire personnel for their response to a local brush fire on the Poway an City of San Diego border and reminded all Poway residents of the importance of having a fire evacuation plan.
Mayor Vaus also reported attending the Poway On Stage 35th Anniversary Gala, and congratulated Poway On Stage and PCPA staff on the successful event.
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 7:20 p.m.
L-'� A' a' =�&� —
Carrie Gallagher, CIVIC
City Clerk
City of Poway, California
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