Poway City Council
September 15, 2026

AG EN DA Pow ay City Counc il
Council Ch amber I 73325 Civic Cente r Driv e I Poway, CA I 92064 September 15, 2026 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 Public participation is encouraged in a few ways as described below.

Members of the public may attend the City Council meeting in person, watch the City Council meeting live on line, or participate remotely via Zoom. Regular City Council meetings are broadcast live on Cox Communication Channel 24 and Spectrum Channel 19. Council meeting videos are archived and available for viewing on the City's website.

To Watch Live:
www .poway.org/counci lmeetings
To Speak or Participate Remotely :

Go to: www.poway.org/meeting and join using
"Computer Audio"
If your electronic device has no microphone or
speakers:

Call: (669) 444 - 9171
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Passcode:092064
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PLEASE NOTE: If you wish to participate, please read the Speakers section below for detailed instructions.

In-Person 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 considered . 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.

Remote Speakers I If viewing on line or calling in via telephone, it is recommended to log in at least 15 minutes prior to the commencement of the meeting. Persons wishing to address the Council on matters not on the agenda may do so under Public Comment.

Those wishing to speak on items on the agenda may do so when the item is considered . Online participants wishing to speak must raise their virtual hand at the announcement of the item. If you are not using your computer's audio, enter your Participant ID when prompted. To request to speak Steve Vaus
Mayor
Jenny Maeda
Deputy Mayor
Peter De Hoff
Council member
Anita Edmondson
Councilmember
Christopher J. Pikus
Councilmember
by phone, press *9 when the item is announced. All comments will be limited to three (3) minutes. Per the Poway Municipal Code, the speaking time may be reduced.

Agenda Materials I This agenda contains a brief summary of each item the Council will consider.

The Agenda and Agenda Packet are 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.

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:

PRESENTATIONS:

Poway Girls Softball 60-Year Recognition and Proclamation PUBLIC COMMENT: In accordance with State law, an item not scheduled on the agenda may be brought forward by the general public for comment; however , the City Council will not be able to discuss or act on any issue not included on the agenda. You may speak for up to three (3) minutes.

Per the Poway Municipal Code, the speaking time may be reduced. Speakers have one opportunity to address the Council under Public Comment.
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CONSENT CALENDAR: The Consent Calendar may be enacted in one motion by the Council with a Roll Call Vote without discussion unless a Councilmembe r, a member 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 August 18, 2026 Regular City Council Meeting Minutes

3. Award of Agreement to ACCO Engineered Systems, Inc. for HVAC Maintenance and Filter Replacement Services; RFP No. 27-002

4. Poway Housing Successor Annual Report for Fiscal Year 2024-25

5. Approval of First Amendment to Lease Agreement for Boys & Girls Club of Greater San Diego

6. Authorization to Purchase One (1) 2026 Ford F550 Medium-Duty Tree Truck and Bucket Lift Utilizing Sourcewell Cooperative Purchasing Program Contract #110421-ALT

7. Award of Contract to American Asphalt South Inc., for the 2026-2027 Street Maintenance Project, Bid No. 27-005 and Determination the Project is Categorically Exempt from the California Environmental Quality Act

8. Resolution Amending the City's Local Conflict of Interest Code ORDINANCES FOR INTRODUCTION:

9. An Ordinance Adopting the 2026 Engineering and Traffic Survey City Manager's Recommendation: It is recommended the City Council take public input, close the public hearing and introduce the Ordinance for first reading by title only, waive further reading, and schedule the adoption of the Ordinance for the October 6, 2026 Regular City Council meeting.

PUBLIC HEARINGS :

10. Conditional Use Permit 26-0003, Development Review 26-0004 and Environmental Assessment 26-0003, a Request to Construct a Pump Station for the Poway Water Infrastructure Improvement Program Treated Water Facilities and Redundant Pipeline Project Located at 14409 and 14415 Lake Poway Road and Approve the Initial Study/Mitigated Negative Declaration for the Project City Manager's Recommendation: It is recommended the City Council take public input, close the public hearing, adopt the Resolution approving the Initial Study/Mitigated Negative Declaration, Environmental Assessment (EA) 26-0003, and adopt the Resolution approving CUP 26-0003 and DR 26-0003.

11. Amendment to Poway Municipal Code and South Poway Specific Plan to Prohibit Third Party Al Data Centers
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City Manager's Recommendation: It is recommended the City Council: Introduce the Ordinance to amend the PMC for first reading by title only, waive further reading, and schedule the adoption of the Ordinance for the October 6, 2026 Regular City Council meeting; and adopt the Resolution to amend the SPSP to add "Al Data Center" as a specifically defined use that will be prohibited.

STAFF REPORTS:

12. Award of Agreement to Landscape Structures Inc. for Poway Oaks Neighborhood Park Playground Renovation, Utilizing Cooperative Purchasing Contract #101625-LSI City Manager's Recommendation: It is recommended the City Council award the Agreement for Poway Oaks Neighborhood Park Playground Renovation project to Landscape Structures Inc. in the amount of $528,953.44 and authorize the City Manager to execute the necessary documents.

COUNCIL-INITIATED ITEMS:

13. Big Stone Lodge
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C. 53232(d)) CITY MANAGER ITEMS:

CITY ATTORNEY ITEMS: (Including any public repo rt of any action taken in closed session) CLOSED SESSION:

14. Conference with Real Property Negotiators
Pursuant to Government Code § 54956.8
Property: 1 Boulder Mountain Rd., Poway, CA 92064; APNs 275-260-28-00, 275-470-21-00, and 275-470-24-00
City negotiators: Chris Hazeltine, Tracy Stevens, Julie Procopio Negotiating parties: Lyle Arnold, Industrial Data Link Corporation Under negotiation: Price and terms

15. Conference with Legal Counsel - Existing Litigation Pursuant to Government Code§ 54956.9(d)(1)
One (1) Case
Name of Case: K&M Investments, LP v. City of Poway, United States District Court, Southern District of California, Case No. 26 CV4672 GPC SBC
ADIOURNMENT:
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State of California
County of San Diego
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) 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 September 8, 2026.

Said meeting to be held at 7:00 p.m., September 15, 2026, in the Poway City Council Chambers, 13325 Civic Center Drive, Poway, California. Said notice was posted on the City's website and the Bulletin Board at the entrance to City Hall.
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September 15, 2026, Item #2
AGENDA REPORT CityofPoway
DATE:

TO:

FROM:

CONTACT:

September 15, 2026
Honorable Mayor and Members of the City Council
Carrie Gallagher, City Clerk
Carrie Gallagher, City Clerk
(858) 668-4535 or [email protected]

CITY COUNCIL
SUBJECT: Approval of the August 18, 2026 Regular City Council Meeting Minutes Summary
The City Council Meeting Minutes submitted hereto for approval are:
• August 18, 2026 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 August 18, 2026 Regular City Council Meeting Minutes.

Public Notification:

None.

Attachments:

A. August 18, 2026 Regular City Council Meeting Minutes Tracy Steve s
Assistant City Manager
Reviewed By:

Alan Fenstermacher
City Attorney
Ap~/
Chris Hazeltine
City Manager
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September 15, 2026, Item #2

ATTACHMENT A

CITY OF POWAY

CITY COUNCIL REGULAR MEETING

MINUTES
August 18, 2026
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: Peter De Hoff, Christopher J. Pikus, Anita Edmondson, Jenny Maeda, Steve Vaus STAFF MEMBERS PRESENT:

City Manager Chris Hazeltine; Assistant City Manager Tracy Stevens; 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 Brian Mitchell; Captain Claudia Delgado, San Diego County Sheriff's Office.
(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:

Deputy Mayor Maeda led the Pledge of Allegiance.

MOMENT OF SILENCE:

Mayor Vaus led a moment of silence.

PRESENTATIONS:

None.

PUBLIC COMMENT:

None.
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City of Poway -Minutes -August 18, 2026
CONSENT CALENDAR:

Motioned by Councilmember De Hoff, seconded by Councilmember Pikus to approve Consent Calendar Items 1 through 7. Motion carried 5/0 by the following roll-call vote:

Ayes:

Noes:

Abstained:

Absent:

Disqualified:

De Hoff, Edmondson, Pikus, Maeda, 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 May 19, 2026, June 16, 2026 and July 7, 2026 Regular City Council Meeting Minutes

3. Award of Agreement to CAPO Projects Group, LLC for Construction Management and Inspection Services for Emergency Interconnection No.1, RFP No. 26-005

4. Award of Contract to PK Mechanical Systems, Inc. for Emergency Interconnection No.1 at Avenida La Valencia/ Pump Station 17 Project, Bid No. 27-002

5. City's Investment Report as of June 30, 2026

6. Approval of As-Needed Consultant Agreements with Fuscoe Engineering, Hoch Consulting, NV5, and Parsons Corporation for Engineering Services; RFQ No. 26-011

7. Award of Contract to Vortex Services, LLC dba Sancon Technologies, for the Annual Sewer Manhole Rehabilitation Project, Bid No. 27-001 and Determination the Project is Categorically Exempt from the California Environmental Quality Act
ORDINANCES FOR INTRODUCTION:

None.

PUBLIC HEARINGS:

None.

STAFF REPORTS:

8. Pre-Development Conference 26-0001, a Proposal for 42-Townhomes and Mixed-Use Development, Phase 2 of the Poway Commons Project at 13027 Poway Road, APNs 317- 472-02, 317-472-38 and 317-472-39
Director of Development Services Julie Procopio presented the item along with a PowerPoint presentation. She explained Meridian Development had requested the Pre-Development Conference for the proposed Poway Commons II project at 13027 Poway Road within the Poway Road Corridor Specific Plan. She noted the conference allows applicants to receive feedback from the City Council and community while a project remains conceptual, she emphasized the conference is advisory only, and the City has not received a formal application.
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Ms. Procopio provided background on the Poway Road Corridor Specific Plan and reviewed the Poway Commons I development. She described the proposed Poway Commons II project, which would develop three lots west of Civic Center Drive with 42 townhomes, ground-floor commercial space, second-story office space, a passive recreation area, and a pedestrian pathway connecting Poway Road and Community Park. An internal connector road would facilitate future connections to adjacent properties.

Ms. Procopio described the proposed architectural design, highlighting storefronts, canopies, glazing, corner towers, and a combination of stucco, lap siding, and composite tile roofing intended to create a pedestrian-friendly main street environment. She explained lot consolidation would make the project eligible for a Tier One height incentive, allowing three stories and a maximum height of 38 feet. The project proposes 17.66 dwelling units per acre and 152 parking spaces compared to the 127 required.

Ms. Procopio reviewed the project's conformance with the Specific Plan's commercial standards, noting minor deviations in commercial frontage, storefront depths, ceiling heights, and commercially supportive space. She noted additional development of the building elevations is needed to evaluate articulation and massing. She identified potential improvements including courtyards and plazas, additional building articulation, enhanced pedestrian amenities along the pathway, and move-in-ready commercial spaces with designated parking.

Following staff's presentation, Guy Asaro and Rey Ross of Meridian Development, (the applicants), presented a PowerPoint presentation. Mr. Asaro provided a brief background on Poway Commons I and noted Meridian had also worked for several years to acquire the Enterprise Rent-A-Car property at the City's request to facilitate future redevelopment.

Mr. Asaro explained the proposed Poway Commons II project evolved through collaboration with City staff and community input. He noted the original concept included live-work units, but the design was revised to provide dedicated commercial spaces that would be separately owned from the residential units and could be professionally managed and leased.

Mr. Ross provided an overview of the proposed project, noting the 2. 7-acre site would include 12 townhomes along Poway Road and 30 interior units, with two-car garages, approximately 10,500 square feet of commercial space, and 47 dedicated commercial parking spaces, which would allow residential guest parking to remain available for residents. He explained the larger commercial spaces could accommodate restaurants or other commercial uses, while a variety of smaller spaces would provide opportunities for other businesses.

Mr. Ross described the site plan and architectural design, including the pedestrian pathway connecting Poway Road to Community Park, a public access easement through the development, and an internal connector road consistent with the Specific Plan. He highlighted the commercial storefronts, outdoor areas, design and style elements, and residential decks intended to add depth and articulation to the buildings.

Mr. Ross concluded by reviewing the project's conformance with the Poway Road Corridor Specific Plan, including parking, ceiling heights, storefronts, and setbacks, and stated the project was intended to create an active commercial frontage and high-quality Main Street environment.

Public Comment:
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Lisa DuMolt questioned the prior retail development agreement and spoke regarding the pedestrian passageway and project design.

Chris Cruse, participating remotely, had questions regarding Meridian's prior loan payback and the project's commercial space and community trail.

Kathleen Lippitt, participating remotely, requested a smoke-free policy for the planned community.

Michael Yee, participating remotely, had questions regarding pedestrian access to Community Park and proposed pedestrian improvements.

End of Public Comment.

Council discussion ensued regarding the project's role as a catalytic site within the Poway Road Specific Plan, architectural design, pedestrian connectivity, commercial space, residential amenities, and setbacks. Council emphasized the importance of creating a vibrant, inviting project and requested additional building articulation, architectural detail, pedestrian amenities, and connections as the project advances.

Responding to Council questions, staff explained the project includes an east-west connection consistent with the alignment contemplated in the Fairfield project, with the intent future redevelopment of adjacent properties would create a continuous pathway providing an alternative to Poway Road. Staff also indicated rooftop dining would not be precluded by the Poway Road Specific Plan, subject to applicable height limitations. Council supported rooftop dining, outdoor patios, and other amenities to enhance Town Center activity and discussed concerns the number of smaller commercial spaces could limit the types of businesses attracted to a catalytic site. The applicants explained flexibility in commercial space size and configuration would be important to accommodate future users and enhance the pedestrian experience. Council also discussed commercial parking and the potential for two-bedroom residential units.

Council discussed the project's consistency with the Poway Road Specific Plan and catalytic site criteria, emphasizing the current proposal was a good starting point but required further refinement to demonstrate superior design, commercial activation, and pedestrian amenities.

Council discussed the history and intent of the Specific Plan, including its effort to balance growth along Poway Road with community character and economic feasibility.

Council asked about the commercial square footage referenced in the Specific Plan and the status of adjacent properties. The applicants and staff explained the referenced commercial allocation was used for infrastructure planning and was not a requirement to construct the specified amount of commercial space and discussed prior efforts to acquire adjacent properties and the potential for phased development. Council recognized the applicants' prior development work and community improvements in Poway while emphasizing the current proposal should continue to be refined through Council, staff, and community input.

City Council provided input and direction regarding the request as recommended. No additional action was taken on this item.

WORKSHOPS:
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None.

COUNCIL-INITIATED ITEMS:

None.

COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 -(G.C. 53232(d))
Mayor Vaus expressed support for sending a letter of opposition to the County Board of Supervisors, San Diego County Health and Safety Act, a proposed half-cent countywide sales tax measure.

Councilmember De Hoff expressed support for signing the letter of opposition. He reported attending the Volunteer Appreciation Dinner and National Night Out, hosted by the Poway Sheriff's station, noting the strong community participation and opportunities to connect with volunteers, law enforcement, and first responders.

Councilmember Pikus reported attending the Volunteer Appreciation Dinner and National Night Out, he also reported attending the grand opening of Ted's World of Arcade and Brews and Boots, a fundraiser for the Poway Community Foundation. Mr. Pikus expressed appreciation to the Fire Department, Sheriffs Department, and Senior Volunteer Patrol for their prompt response to a recent bicycle collision involving a friend, noting the incident reinforced the importance of bicycle connectivity between Fairfield and Community Park. He recognized the Boy Scouts who attended the meeting. Mr. Pikus expressed support for signing the letter of opposition.

A motion was made by Councilmember Pikus to "direct Staff to study the potential to establish an active-duty military discount for various City recreation programs." Motion passed by Council Concurrence.

Councilmember Edmondson recognized City staff, volunteers, and community members involved in recent events, including the Volunteer Appreciation Dinner, Brews and Boots, National Night Out, and the final "Summer Concert Series: Cheese Whiz" show at Lake Poway. She noted the events showcased the residents, staff, volunteers, and programs that contribute to the community's quality of life and thanked everyone involved.

Deputy Mayor Maeda expressed support for signing the letter of opposition.

Mayor Vaus reported attending National Night Out, he recognized volunteers as an integral part of the community and thanked Community Services for its role in Brews and Boots, noting the event's potential to become an annual event.

CITY MANAGER ITEMS:

City Manager Hazeltine welcomed Senior Management Analyst Marisa Reza-Pham to the City Manager's Office, noting her previous service with the City and expressing appreciation for her return.

CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) None.
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CLOSED SESSION:

None.

ADJOURNMENT:

The meeting was adjourned at 8:49 p.m.

Carrie Gallagher, CMC
City Clerk
City of Poway, California
September 15, 2026, Item #3
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA RE PO RT City of Poway
September 15, 2026
Honorable Mayor and Members of the City 5-~\ncil
Eric Heidemann, Director of Public Works ~

CITY COUNCIL
Stephen Jackson, Assistant Director of Pub~:f rks for Maintenance Operations (858) 668-4705 or [email protected] CJ'B;
Award of Agreement to ACCO Engineered Systems, Inc. for HVAC Maintenance and Filter Replacement Services; RFP No. 27-002
A Request for Proposals (RFP) for HVAC Maintenance, System Cleaning, and Filter Replacement Services was duly advertised on June 11 and June 18, 2026. Although the RFP was originally issued to include HVAC system cleaning, the City determined these services would not be included in the agreement. As a result, the recommended Agreement is limited to HVAC maintenance and filter replacement services. Four (4) proposals were received and opened on July 16, 2026. Staff reviewed the proposals submitted and determined ACCO Engineered Systems, Inc. (ACCO) to be responsive and qualified to provide these services. The length of this Agreement shall be two (2) years beginning on September 16, 2026, through June 30, 2028. The Agreement may be extended through a total of three (3) separate one-year terms.

Recommended Action:

It is recommended the City Council award the Agreement for HVAC Maintenance and ·Filter Replacement Services, RFP No. 27-002 to ACCO Engineered Systems, Inc. and authorize the City Manager to execute the necessary documents.

Discussion:

The City of Poway (City) contracts for HVAC maintenance for 38 City-owned facilities. These services include preventive maintenance of HVAC systems and associated equipment, including controllers, chillers, pumps, boilers, and air handling units. Routine preventive maintenance is essential to ensure the reliable operation of HVAC systems, extend equipment service life, and protect the City's investment in its facilities. Regular maintenance also maximizes energy efficiency, maintains occupant comfort, reduces the likelihood of unexpected equipment failures, and minimizes long-term operating and repair costs.
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An RFP for HVAC Maintenance, System Cleaning, and Filter Replacement Services was duly advertised on June 11 and June 18, 2026. The original proposal included HVAC system cleaning, inspections, and hygienic condition testing. However, after further evaluation, the City decided not to include these services in the agreement, and HVAC cleaning will not be included as part of this agreement. Because the City performs these services on an as-needed basis, with individual facilities typically receiving service approximately once every three years, the City determined it is more cost-effective and operationally appropriate to procure HVAC cleaning services separately on an as-needed basis rather than include them in a long-term maintenance agreement.

Four (4) proposals were received and opened on July 16, 2026. Evaluation criteria included the proposer's understanding of the required services, qualifications and experience, references, contractor history, and cost. Following evaluation of the proposals, City staff determined that ACCO is the most qualified to provide HVAC maintenance services to the City. A breakdown of the costs are summarized in Table 1 below.

Table 1:

Contractor Division I Division II
Annual Cost Hourly Rates
Titan Group $163,346 $280-$500
Corporation
ACCO Engineered $205,827 $170-$340
Systems, Inc.

A.O. Reed & Co. $253,881 $294-$463
Siemens Industry Inc. $498,927 $236-$472
Division I includes all costs associated with performing routine preventive maintenance of HVAC and packaged unit systems at City facilities. Repairs beyond the scope of the preventive maintenance services included in Division I are performed on an as-needed basis and billed in accordance with the hourly rates identified in Division II.

The initial Agreement term shall be for two (2) years, beginning September 16, 2026, through June 30, 2028. The Agreement may be extended, subject to City Council appropriation of funds, for up to three (3) additional one-year terms. The maximum length of the Agreement would be up to five (5) years.

Environmental Review:

This action is not subject to review under the California Environmental Quality Act (CEQA).

Fiscal Impact:

Sufficient funds are available in the Fiscal Year 2026-27 budget in the Facility Maintenance account (415010-43020). Amounts for subsequent fiscal years will be included in the annual budget process for Council's consideration.
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Public Notification:

None.

Attachments:

A. Standard Agreement
Tracy Stevens
Assistant City Manager
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Reviewed By:

Alan Fenstermacher
City Attorney
September 15, 2026, Item #3
City of Poway

STANDARD AGREEMENT FOR SERVICES
This Agreement, entered into this 16th day of September, 2026, by and between the CITY OF POWAY (hereinafter referred to as "City") and ACCO Engineered Systems, Inc. ("the Contractor").

RECITALS
WHEREAS, City desires to obtain the services for providing HVAC Maintenance and Filter Replacement Services;
WHEREAS, Contractor has, represented that Contractor possesses the necessary qualifications to provide such services; and
WHEREAS, City has authorized the preparation of an agreement to retain the services of Contractor as hereinafter set forth.

NOW, THEREFORE, IT IS MUTUALLY AGREED THAT CITY DOES HEREBY RETAIN CONTRACTOR ON THE FOLLOWING TERMS AND CONDITIONS:

1. Scope of Services.

Contractor 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 Contractor 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 in 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 Contractor. During said 60- day period Contractor 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 Contractor in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by City. 4 of 36 ATTACHMENT A
September 15, 2026, Item #3
Termination for cause shall be effected by delivery of written notice of termination to Contractor.

Such termination shall be effective upon delivery of said notice.

5. Confidential Relationship.

City may from time to time communicate to Contractor certain information to enable Contractor to effectively perform the services. Contractor 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. Contractor 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 Contractor, hereafter disclosed in publicly available sources of information; (iii) is now in the possession of Contractor without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to Contractor 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.

Contractor shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this agreement without the prior written consent of the City. In its performance hereunder, Contractor 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.

Contractor shall provide its own office space and clerical support at its sole cost and expense.

7. Covenant Against Contingent Fees.

Contractor declares that it has not employed or retained any company or person, other than a bona fide employee working for Contractor, 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 Contractor upon demand.

9. Conflict of Interest and Political Reform Act Obligations.

During the term of this Agreement Contractor shall not act as Contractor or perform services of any kind for any person or entity whose interest's conflict in any way with 5 of36
September 15, 2026, Item #3
those of the City of Poway. Contractor shall at all times comply with the terms of the Political Reform Act and the local conflict of interest code. Contractor 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 Contractor has a financial interest as defined in Government Code Section 87103.

Contractor 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. "Contractor" 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; and

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 . 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.
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September 15, 2026, Item #3
D 2. Contractor will be "making a government decision" or "serving in a staff capacity" as defined in Sections A and B above. As a result, 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.

Department Director

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.

Contractor 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 agreement period and for three (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, Contractor shall be an independent contractor and shall not be an employee of the City of Poway. City shall have the right to control Contractor only insofar as the results of Contractor's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Contractor accomplishes such services.

13. Licenses, Permits, Etc.

Contractor 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. Contractor represents and warrants to City that Contractor 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 Contractor to practice its profession.

14. Contractor's Insurance.

Contractor 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 Contractor's negligent performance of professional services, City and its respective elected and appointed 7 of36
September 15, 2026, Item #3
boards, officials, officers, agents, employees and volunteers (individually and collectively, "lndemnitees") shall have no liability to Contractor or any other person for, and Contractor 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 Contractor's negligent performance under this Agreement, or by the negligent or willful acts or omissions of Contractor, its agents, officers, directors, sub-Contractors or employees. (b) For Claims alleged to arise from Contractor's negligent performance of professional services, lndemnitees shall have no liability to Contractor or any other person for, and Contractor 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 Contractor's negligent performance of any professional services under this Agreement, or by the negligent or willful acts or omissions of Contractor, its agents, officers, directors, sub-Contractors or employees, committed in performing any of professional services under this Agreement. For Claims alleged to arise from Contractor's professional services, Contractor's defense obligation to lndemnitees shall include only the reimbursement of reasonable defense costs and attorneys' fees to the extent caused by Contractor's negligence. (c) The foregoing obligations of Contractor 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 Contractor, 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 Contractor under worker's compensation acts, disability benefit acts or other employee benefit acts. (e) Contractor 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 Contractor is carrying and maintaining; however, if Contractor fails to take such action as is necessary to make a claim under any such insurance policy, Contractor shall reimburse City for any and all costs, charges, expenses, damages and liabilities incurred by City in making any claim on behalf of Contractor 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.
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September 15, 2026, Item #3

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 Contractor: (a) Contractor hereby assumes the risk of any and all injury and damage to the personnel (including death) and property of Contractor that occurs in the course of, or in connection with, the performance of Contractor's obligations under this Agreement, including but not limited to Contractor'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 Contractor or its employees in connection with Contractor's performance its obligations under this Agreement, including but not limited to Contractor's Scope of Services.

17. Contractor Not an Agent.

Except as City may specify in writing, Contractor shall have no authority, expressed or implied, to act on behalf of City in any capacity whatsoever as an agent.

Contractor shall have no authority, expressed or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

18. Personnel.

Contractor 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 Contractor by giving oral or written notice to Contractor to such effect.

Contractor'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.

Contractor 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 9 of36
September 15, 2026, Item #3
compensation claimed by Contractor in the event of termination, Contractor's damages shall be limited to compensation for the 60-day period for which Contractor 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," "Contractor" shall mean the individual or corporate Contractor and any and all employees of Contractor 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 Contractor and City relating to the terms and conditions of the services to be performed by Contractor. 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.

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, 10 of36
September 15, 2026, Item #3
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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September 15, 2026, Item #3
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
ATTEST:

Carrie Gallagher, City Clerk
APPROVED AS TO FORM:

By:-----------­
Alan Fenstermacher, City Attorney
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ACCO Engineered Systems, Inc.

By: ___________ _
Nicholas Williams, Sales Manager
September 15, 2026, Item #3
A. Scope of Services.
"SPECIAL PROVISIONS"
EXHIBIT "A"
Contractor agrees to provide HVAC maintenance and filter replacement services as required by City, further described in the Agreement, which is included in this document as Attachment 1, and incorporated by reference, as if its contents were fully set forth herein.

Contractor shall provide the necessary qualified personnel to perform the services.

B. Compensation and Reimbursement.

City shall pay Contractor a fee in accordance with the Fee Proposals submitted in writing on July 16, 2026, which is included in this document as Attachment 2. Contractor's fee shall include, and Contractor 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, Contractor shall be reimbursed for all reasonable expenses, including lodging, telephone, and travel (air, auto, rail) necessarily incurred in performance of the services. Contractor 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. Contractor 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 September 16, 2026, and ending June 30, 2028, unless sooner terminated by City as provided in the section of this Agreement entitled "Termination." This Agreement may be extended for up to three (3) additional one-year period upon approval in writing of the City Manager and Contractor. Award of the Contract and any Contract extensions are subject to City Council appropriation of funds. • Each renewal period (fiscal) after the first two years of the agreement, the Contractor's costs shall be adjusted based on the annual change in the previous calendar year's Consumer Price Index for the San Diego-Carlsbad area (All Urban Consumers CPI-U) or 5%, whichever is less.

The first adjustment would occur no earlier than July 1, 2028. Upon expiration or termination of this Agreement, Contractor shall return to City any and all equipment, documents or materials and all copies made thereof which Contractor received from City or produced for City for the purposes of this Agreement.

D. Contractor's Insurance.

1. Coverages:

Contractor shall obtain and maintain during the life of this Agreement all of the following insurance coverages:
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September 15, 2026, Item #3
(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) 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:

Contractor 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:
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September 15, 2026, Item #3
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To City:

To Contractor:

City of Poway
P.O. Box 789
Poway, CA 92074
ACCO Engineered Systems, Inc.
5950 Nancy Ridge Dr.

San Diego, CA 92121
(Remainder of page intentionally left blank)
September 15, 2026, Item #3
ATTACHMENT 1

TECHNICAL SPECIFICATIONS

1. Purpose: The purpose of this contract is to provide comprehensive HVAC maintenance services for the City of Poway.

Division I -Specifications for Full Coverage HVAC Maintenance Includes all costs to maintain and repair HVAC or mechanical systems. The coverage includes the task list and any other task list deemed necessary by the City or the Contractor for the proper maintenance of the system. The coverage does not include repairs made due to acts of God, cleaning of the system, or repairs over $200 made to the ducting system or non­ mechanical stationary equipment supports.
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a. Repairs made during normal working hours are included at no additional cost. b. Repairs made outside normal working hours are included at no additional cost. c. Any additional costs to perform work or repairs by other companies are included. d. All repair parts, including all damper actuator motors and valves, are included at no additional cost. All fittings shall be greased.
e. One inspection bi-monthly of each roof top, split system or package unit, air handler and chiller listed. Contractor to follow scope of service detailed in subsequent sections.
f. All units listed with this service plan will have service within one hour of trouble call and repaired with a four-hour minimum. Service provider to stock adequate parts to ensure seamless operation.
g. All fan and drive belts listed on equipment will be replaced at a minimum of once per year.
h. Change and date air filters bi-monthly. The City requires 30-35% Efficient Pleated filters to be used in all HVAC systems. HEPA box filters are required at the Library.
i. Perform bi-annual cleaning in spring and fall of all air-cooled condensers to improve system efficiency.
j. Clean all evaporator coils to improve system efficiency. Annual steam cleaning. k. All compressors that require replacement or rebuilding are included at no additional cost, including refrigeration re~charging. • I. Provide an electronic detailed copy of service and/or repair performed on each unit after service and/or repair is performed. Include facility name, address, model and serial number of equipment and work performed, including monthly, quarterly, bi-annual and annual maintenance tasks.
m. Provide an updated list of City inventory as changes occur. n. It is the sole responsibility of the service provider to maintain the units at their highest efficiency at all times.
o. A phone number must be provided for 24/7 service and the same technician is preferred on all service repair calls, both regular and emergency service. p. The Contractor is responsible to clean and keep neat all of the City's mechanical rooms. No storage permitted. All used filters and boxes must be removed. q. If a device or component of an HVAC system fails under normal operating conditions, the Contractor shall provide all required parts and labor at no additional cost to the City. The Contractor may charge for parts and labor only when the failure is determined to have been caused by misuse, vandalism, September 15, 2026, Item #3
17 of 36
negligence, or damage caused by the City or other third parties r. All extra work will be quoted and agreed upon by the City Representative using the contracted labor rates.
[Remainder of Page Left Blank Intentionally]
September 15, 2026, Item #3

PRE-PACKAGED HVAC UNITS, WINDOW UNITS, HEAT PUMPS, AND SPLIT SYSTEM

HVAC UNITS AIR-COOLED CONDENSERS MASTER TASK LIST
Quarterly Inspections:
1 . Check coils

2. Check for unusual noises and or vibrations

3. Check condition of belts and pulleys (if applicable)

4. Inspect bearings

5. Check oil level

6. Check and test all operating and safety controls and unit operation

7. Check auxiliary equipment operation

8. Check refrigerant and oil levels, fill/recharge as needed

9. Log all operating conditions after unit stabilizes.

Annual Inspections:

1. Clean coils

2. Replace belts and pulley.

3. Check and record head pressure

4. Check and record suction pressure

5. Check and record compressor starting amp draw

6. Check and record compressor running amp draw

7. Run oil analysis

8. Grease and lube bearings

9. Clean exhaust fans

10. Check quick disconnect, fuses, blades, connections and wiring conditions. Repair and/or replace as needed
[Remainder of Page Left Blank Intentionally]
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September 15, 2026, Item #3
Quarterly Inspections:

1. Inspect for leaks

AIR COOLED CONDENSERS

MASTER TASK LIST

2. Lubricate fan bearings per manufacturer's recommendation

3. Straighten fins (as required)

4. Check crankcase heater

5. Inspect and repair electrical connections, contactors, relays and controls

6. Check motor operating conditions

7. Check fan blades

8. Check vibration eliminators

9. Check oil and refrigerant filter drier (as required)

10. Check operation of thermostatic valve and adjusUreplace as required

11. Inspect and repair ductwork as needed

12. Inspect and repair condensate pan and drains

13. Maintain condensate pans in a sanitary condition

14. Inspect unit sheet metal and ma_intain in a weathertight condition

15. Check operation of thermostat and replace as needed

16. Check operation of economizer if equipped and adjust as necessary [Remainder of Page Left Blank Intentionally]
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September 15, 2026, Item #3
Bi-monthly Inspections:

AIR HANDLERS

MASTER TASK LIST

1. Check and clean fan assembly

2. Lubricate fan bearings per manufacturer's recommendation

3. Lubricate motor bearings per manufacturer's recommendation

4. Check belts and sheaves (adjust as required)

5. Tighten all nuts and bolts

6. Check motor mounts and vibration pads

7. Inspect electrical connections and contractors

8. Lubricate and adjust associated dampers and linkage

9. Check fan operation

10. Clean outside air intake (as required)

11. Check and clean drains and drain pans (as required). Maintain in sanitary condition

12. Check and clean strainers, steam traps, isolation valves and hand valves (as required)

13. Check heating and cooling coils (clean as required)

14. Check operation of chilled water valve(s) (if applicable). Repair and replace as needed

15. Check operation of hot water valve(s) (if applicable). Repair and replace as needed

16. Check operation of economizer, repair as required

17. Check operation of variable frequency drives and repair/replace as needed.

18. Check and seal duct work as required

19. Inspect unit sheet metal and maintain in a weather-tight condition.

Annual Inspections:

1. On hot water/chilled water systems flush out debris and clean screens

2. Record amp draw on motor

3. Check and calibrate sensor
[Remainder of Page Left Blank Intentionally]
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September 15, 2026, Item #3
Bi-Monthly Inspection:

BOILER

MASTER TASK LIST

1. Inspect fireside of boiler and record condition

2. Visually inspect boiler pressure vessel for leaks and record

3. Inspect safety devices

4. Check and exercise hand and relief valves and feed equipment

5. Inspect and clean the burner and combustion equipment

6. Check burner sequence of operation and combustion equipment

7. Check fuel piping for leaks and proper support

8. Inspect electrical connections, clean and tighten as required

9. Clean boiler area

10. Inspect controls and control sequence, calibrate and adjust as required

11. Inspect auxiliary control such as flow sensors and temperature sensors

12. Replace water filters and date as required
Annual Inspection:

1. Perform all quarterly tasks listed above

2. Brush and vacuum soot/dirt from flues and combustion chamber

3. Check fuel supply

4. Check auxiliary equipment operation

5. Test and inspect burner, boiler and controls for proper operation

6. Perform combustion tests and adjust burner for maximum efficiency

7. Log all operating conditions

8. Verify G.P.M. flow through boiler, adjust manual and electronic controls as required to maintain minimum flow

9. Clean all dirty screens

10. Clean all coils of containments
[Remainder of Page Left Blank Intentionally]
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September 15, 2026, Item #3
Monthly Inspection:

CENTRIFUGAL CHILLER

MASTER TASKLIST

1. Check main starter and control panel, repair as required

2. Visually and electronically inspect for leaks, repair as required

3. Test oil annually, provide results to City

4. Lubricate inlet vane linkage

5. Check oil sump heater operation

6. Check pressure relief valve and expansion tank

7. Clean condenser tubes and coils (annually).

8. Inspect bearings

9. Log operating conditions on factory form bi-monthly (see sample form), with Factory Trained Technician logging operating conditions on the alternating month

10. Factory Trained Technician: Log operating conditions on factory from annually (see sample form).

11. Check auxiliary equipment operation

12. Check refrigerant and oil levels, fill/recharge as needed

13. Check and test all operating and safety controls

14. Check purge unit operation

15. Log all operating conditions

16. Check for vibrations per manufacturer's recommendations

17. Inspect and maintain computer control system
Monthly Preventive Maintenance:

1. Review owner's log. Log all operating conditions

2. Inspect chiller and adjust (as required)

3. Review chiller operation

4. Maintain all valves, pumps and motors including controls [Remainder of Page Left Blank Intentionally]
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September 15, 2026, Item #3
Water Treatment
Master Task List
Monthly Inspection-Cooling Towers/Closed System/Boilers

1. Inspect all chemical feed, bleed, and treatment equipment for proper operation.

2. Test system water and verify proper bleed rates and chemical treatment levels.

3. Adjust chemical treatment levels as necessary to maintain proper system operation and water quality.

4. Add water treatment chemicals as required under the contract.

5. Inspect accessible portions of the systems for signs of corrosion, scale, leaks, slime, algae, or other abnormal conditions.

6. Alternate biocide and anti-foam treatments as necessary to control biological growth and foaming.

7. Clean and adjust treatment controls to maintain proper operation.

8. Verify adequate chemical inventory and replenish or reorder chemicals as necessary.

9. Provide written reports documenting inspection findings, water test results, chemical treatment levels, corrective actions taken, and recommendations.

10. Provide annual service for all water-cooled condensing towers in accordance with manufacturer recommendations.
[Remainder of Page Left Blank Intentionally]
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September 15, 2026, Item #3
Quarterly Inspections:

1. Check fan assembly

SUPPLY AND EXHAUST FANS

MASTER TASK LIST

2. Clean fan assembly as required

3. Lubricate motor bearings per manufacturer's recommendation

4. Check belts and sheaves (replace and adjust as required)

5. Tighten all nuts and bolts

6. Check motor mounts and vibration pads

7. Check motor operating condition

8. Inspect electrical connections and tighten as necessary

9. Lubricate and adjust associated dampers and linkage

10. Check fan operation

11. Record fan amp draw
[Remainder of Page Left Blank Intentionally]
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September 15, 2026, Item #3

APPENDIX A
CAL OSHA has issued rulings regarding annual inspections of HVAC systems. The following is an excerpt from California Code of Regulations, Labor Code, Title 8, paragraph 5142:

TITLE 8 GENERAL INDUSTRY SAFETY ORDERS §5142
5142. Mechanically Driven Heating, Ventilating and Air Conditioning (HVAC) Systems to Provide Minimum Building Ventilation.
(a) Operation:
(1) The HVAC system shall be maintained and operated to provide at least the quantity of outdoor air required by the State Building Standards Code, Title 24, Part 2, California Administrative Code, in effect at the time the building permit was issued. (2) The HVAC system shall be operated continuously during working hours except:
(A) during scheduled maintenance and emergency repairs; (B) during periods not exceeding a total of 90 hours per calendar year when a servicing electric utility by contractual arrangement requests its customers to decrease electrical power demand, or;
(C ) during periods for which the employer can demonstrate that the quantity of outdoor air supplied by nonmechanical means meets the outdoor air supply required by (a) (1) of this section.

The employer must have available a record of calculations and/or measurements substantiating that the required outdoor air supply rate is satisfied by infiltration and/or by a nonmechanical driven outdoor air supply system.
(b) Inspection and Maintenance:
(1) The HVAC system shall be inspected at least annually, and problems found during these inspections shall be corrected within a reasonable time. (2) Inspections and maintenance of the HVAC system shall be documented in writing. The employer shall record the name of the individual(s) inspecting and/or maintaining the system, the date of the inspection and/or maintenance, and the specific findings, and the specific and actions taken.

The employer shall ensure that such records are retained for at least five years. (3) The employer shall make all records required by this section available for examination and copying, within 48 hours of a request, to any authorized representative of CAL OSHA (as defined in Section 3207), to any employee of any employer affected by this section, and to any designated representative of said employee of the employer affected by this section. [Remainder of Page Left Blank Intentionally]
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September 15, 2026, Item #3
HVAC Inventory
As a part of the bid specifications, equipment inventory of the facilities to be maintained under this contract are included as a part of this Section. The building inventory and associated equipment shall be used for the bidding of the contract as specified for each facility.

Facilities:

1. City Hall and Council Chambers

2. Fire Station I

3. Fire Station II

4. Fire Station Ill

5. Community Park Pool

6. Community Park Pool 1st Aid Building

7. Community Park Mickey Cafagna Center

8. Performing Arts Center

9. Poway Public Library

10. Kumeyaay-lpai Interpretative Center

11. Old Poway Park Hamburger Factory and Museum

12. Old Poway Park Train Depot

13. Old Poway Park Train Barn

14. Old Poway Park Nelson House

15. Old Poway Park Porter House

16. Old Poway Park Templar's Hall

17. Aubrey Park Concessions/Girls Softball trailer

18. Public Works Fleet Maintenance

19. Public Works Operations Center

20. Public Works Facility

21. Public Works Pump House

22. Public Works Administration

23. Water Treatment Administration

24. Water Treatment Filter Control

25. Water Treatment Chlorine/Chemical Feed

26. Lake Poway Entry Station

27. Lake Poway Community Services Administration

28. Lake Poway Parks and Landscape Shop

29. Lake Poway Pavilion

30. Lake Poway Concession

31. Material Handling Yard Offices and Storage
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September 15, 2026, Item #3
BID
ITEM:

FILTER

REPLACEMENT

SERVICES
Filter
Specifications:

Contractor
shall
be
responsible
for
the
replacement
of
filters
at
City
facilities
. The
filters
should
be

TRI-DEK
XL
4-Ply
with
antimicrobial
treatment
(see
Appendix
B:

Filter
Specifications)
.

Bi-annual
Inspection
Tasks
:

1. Replace
all
filters
City
wide
every
six
(6)
months
per
the
manufacture
's
recommendations,
all
labor
and
material
shall
be
included
in
this
bid
related
to
filters.

2. Legally
dispose
of
old
filter
and
any
related
packaging
of
the
new
filters

3. Ensure
all
fasteners
are
in
place
for
access
panels
or covers
for
the
filters

4. Report
any
HVAC
concerns
to
the
City
accompanied
with
pictures
and
explanation

5. Schedule
during
normal
business
hours
of
7am
to
3:30pm
Monday
through
Friday,
City
is
closed
every
other
Friday
and
some
holidays

6. Contractor
to
field
verify
size
and
quantity
of
filters
needed
for
each
facility
. Refer
to
page
32 for
a
list
of
facilities
.
[Remainder
of
Page
Left
Blank
Intentionally]
27 of
36 September 15, 2026, Item #3

2. Licenses:

Contractor
to
submit
documentation
demonstrating
it's
obtained
the
proper
approval/permits
to
dispose
of
water,
refuse
and
debris
at
an
approved
disposal
site.

Provide
a copy
of
authorization
by
the
Director
of
Health
Services
of
the
County
of
San
Diego
to
service
portable
toilets
and
holding
tanks.

Have
current
registration
with
the
Department
of
Industrial
Relations
(DIR)
per
Prevailing
Wage
requirements.

3. Invoices:

On
or
before
the
first
day
of
each
calendar
month,
Contractor
shall
submit
a
detailed
invoice
to
the
City
Staff
requesting
payment
for
services
rendered
in
the
preceding
month
. Each
invoice
must
include
purchase
order
number,
date
of
invoice,
costs
for
each
unit
for
rental
and
service
visit,
hours
expended,
materials,
additional
supplies,
etc.

Upon
receipt
of
an
invoice,
each
invoice
shall
be
reviewed
by
the
City
Staff
for
the
purpose
of
determining
whether
the
payment
request
is
undisputed
and
proper
for
payment.

A
payment
request
shall
be
considered
properly
executed
if
funds
are
available
for
payment
of
the
payment
request,
and
payment
is
not
delayed
due
to
an
audit
inquiry
by
the
financial
officer
of
the
City
. If
it
is
determined
not
to
be
a
request
suitable
for
payment,
it
shall
be
returned
to
Contractor
as
soon
as
practicable,
but
not
later
than
seven
(7)
working
days
after
receipt,
accompanied
by
a document
setting
forth
in
writing
the
reasons
why
the
invoice
is
not
proper.

City
shall
make
the
payment
within
thirty
(30)
days
after
receipt
of
an
undisputed
and
properly
submitted
payment
request
from
Contractor.

4. Assignment
and
Subcontracting:

The
Contractor
may
not
subcontract,
transfer,
or
assign
any
portion
of
the
contract.

5. Unfavorable
Maintenance
Conditions:

During
inclement
weather
,
or
other
unsuitable
maintenance
conditions,
the
Contractor
shall
confine
operations
to
work
that
will
not
be
adversely
affected
. No
portion
of
the
work
shall
be
done
under
conditions
that
would
adversely
affect
the
quality
or
the
efficiency
of
the
work,
unless
by
special
means
or
precaution
approved
by
the
City,
allowing
the
Contractor
the
ability
to
perform
the
work
in
a
proper
and
satisfactory
manner
.

6. Warranty:

All
work
performed
under
this
contract
will
carry
a
minimum
thirty-day
warranty
on
labor
and
the
manufacturer's
warranty
on
material.
[Remainder
of
Page
Left
Blank
Intentionally]
28 of36
September 15, 2026, Item #3
ATTACHMENT 2

FEE PROPOSAL
Note: Total proposal prices include service costs for entire fiscal year.

PROPOSAL TABLE -DIVISION I

HVAC EQUIPMENT REPAIR AND MAINTENANCE PROGRAM
Facility LOCATION SECTION A
Full Coverage Costs ($)
Includes all costs parts and labor
for maintenance and repairs
City Hall Facility 13325 Civic Center Drive $47,610
Council Chambers 13325 Civic Center Drive $4,650
Fire Station 1 13050 Community Road $7,100
Fire Station 2 16912 Westling Court $2,540
Fire Station 3 14322 Pomerado Road $11,805
Community Park 13094 Civic Center Drive $4,090
Auditorium
Community Park Pool 13094 Civic Center Drive $2,790
Main Building
Community Park Pool 13094 Civic Center Drive $1,860
Boiler
Community Park 1st Aid 13094 Civic Center Drive $675
Buildinq 1st Aid Buildinq
Community Park 13094 Civic Center Drive $675
Recreation Office
Community Park Crew 13094 Civic Center Drive $675
Buildinq
Community Park Mickey 13094 Civic Center Drive $21,175
CafanQa Community Center
Performing Arts Center 15498 Espola Road $57,500
Poway Public Library 13137 Poway Road $6,425
Kumeyaay Interpretative 13104 lpai Waaypuk Trail $1,300 Center
Old Poway Hamburger 141314 Midland Road $5,160
Factory and Museum
Old Poway Park Train 141314 Midland Road $870
Depot
Old Poway Park Train Barn 141314 Midland Road $870
Old Poway Park Nelson 141314 Midland Road $870
House
Old Poway Park Porter 141314 Midland Road $750
House
Old Poway Park Templars 141314 Midland Road $1,550
Hall
Aubrey Park Girls' Softball 13540 Aubrey Street $565
Concessions, Restroom
29 of 36
September 15, 2026, Item #3
Public
Works
Flee
t
14415
Lake
Poway
Road
$995
Maintenance
Public
Works
Operations
14445
Lake
Poway
$2,575
Center
Public
Works
Facility
14445
Lake
Poway
Road
$725
Maintenance
Shop
Public
Works
Pump
House
14445
Lake
Poway
Road
$775
Public
Works
Ammon
ia
14445
Lake
Poway
Road
$775
Building
Public
Works
Camelback
14445
Lake
Poway
Road
$775
Pump
Station
Public
Works
14467
Lake
Poway
Road
$4
,200
Administration Treatment
Plant
14521
Lake
Poway
Road
$2,730
Administration
Bldg
.

Treatment
Plant
Filter
14521
Lake
Poway
Road
$1
,130
Control
Bldg
.

Treatment
Plant
14521
Lake
Poway
Road
$1,310
Chlorine/Chemical
Feed
Bldg
.

Lake
Poway
Entry
Station
14644
Lake
Poway
Road
$995
Lake
Poway
Community
14644
Lake
Poway
Road
$2
,340
Services
Administration
Lake
Poway
Parks
&
14644
Lake
Poway
Road
$1
,550
Landscape
Shop
Lake
Poway
Pavil
ion
14644
Lake
Poway
Road
$750
Lake
Poway
Concess
ion
14644
Lake
Poway
Road
$1,705
Crosthwaite
Material
12325
Crosthwaite
Circle
$992
Handling
Yard
Record
Storage/Lounge
30 of
36 September 15, 2026, Item #3
Hourly Repair Rates
One Journeyman HVAC Techs,
One Vehicle
Two Journeyman HVAC Techs,
One Vehicle
City Hall
PCPA
Division II -Hourly Rates
Includes Overhead
Monday-Friday (7am-6pm) After Hours (6pm to 7am) Weekends and Holidays
$170 $340
$340 $780
$170 Not Applicable
$170 Not Applicable
[Remainder of Page Left Blank Intentionally]
31 of 36
September 15, 2026, Item #3
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)
32 of36
(1)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 September 15, 2026, Item #3
any unemployment insurance compensation arising out of prior employment subject to this section with
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:
33 of 36
(1 )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.

September 15, 2026, Item #3
(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.
(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
th
e 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
24 76),
effective
January
1,
2015
.

Annotations Notes 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)
.
34 of
36 September 15, 2026, Item #3

GUARANTY
To the City of Poway, City Council, for:

HVAC MAINTENANCE AND FILTER REPLACEMENT SERVICES
The undersigned guarantees the work included in this project(s).

Should any of the materials or equipment prove defective or should the work as a whole prove defective, due to faulty workmanship, material furnished or methods of installation, or should the work or any part thereof fail to operate properly as originally intended and in accordance with the Plans and Specifications, due to any of the above causes, all within the number of months the site is to be maintained after date on which this Contract is accepted by the City, or the date of recordation of Notice of Completion, whichever is the later, the undersigned agrees to reimburse the City upon demand, for its expenses incurred i.n restoring said work to the condition contemplated in said project, including the cost of any such equipment or materials replaced and the cost of removing and replacing any other work necessary to make such replacement or repairs, or upon demand by the City, to replace any such material and to repair said work completely without cost to the City so that said work will function successfully as originally contemplated.

The City shall have the unqualified option to make any needed replacements or repairs itself or to have such replacements or repairs done by the undersigned. In the event the City elects to have said work performed by the undersigned, the undersigned agrees that the repairs shall be made and such materials as are necessary shall be furnished and installed within a reasonable time after the receipt of demand from the City. If the undersigned shall fail or refuse to comply with his obligations under this guaranty, the City shall be entitled to all cost and expenses, including attorney's fees, reasonably incurred by reason of the said failure or refusal.

Contractor
Date
35 of 36
September 15, 2026, Item #3

WORKERS' COMPENSATION INSURANCE CERTIFICATE
Pursuant to Section 1861 of the State Labor Code, each Contractor to whom a public works Contract has been awarded shall sign the following certificate and shall submit same to the City of Poway prior to performing any work on the Contract:
"I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for Workers' Compensation or to undertake self­ insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract." Contractor
By:

Title
Date
Section 3700 of the State Labor Code reads in part as follows:
"Every employer except the State shall secure the payment of compensation in one or more of the following ways:
(a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this state. (b) By securing from the Director of Industrial Relations a certificate of consent to self­ insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his employees."
36 of36
September 15, 2026, Item #4
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AG EN DA REPORT City of Poway

CITY COUNCIL
September 15, 2026
Honorable Chairman and Members of the Housing Authority Board Julie Procopio, Director of Development Serviceq
Darian Demerjian, Senior Management Analyst
(858) 668-4636 or [email protected]
Poway Housing Successor Annual Report for Fiscal Year 2024-25 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 financial activities each fiscal year. The Poway Housing Successor Annual Report for Fiscal Year 2024-25 (Attachment A), and the Poway Housing Authority Basic Financial Statements and Independent Auditors Report for the year ending June 30, 2025 (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 2024-25 indicates a balance in the LMIHAF of $5,738,465. 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 area median income [AMI] or less). Additionally, funds may be used for program administration and 1 of 37
September 15, 2026, Item #4
monitoring
as
well
as
for
homelessness
prevention
and
rapid
rehousing
services.

The
source
of
funding
for
the
LMIHAF
is
derived
from
the
previous
balance
of
Redevelopment
financing,
program
income
from
operations,
repayments
of
loans,
and
land
sales.

LMIHAF
funding
is
separate
from
the
housing
in-lieu
fee
collected
from
the
developer
of
each
market
rate
unit
to
support
the
development,
acquisition
and
rehabilitation
of
affordable
housing.

The
current
balance
of
the
Housing
In-Lieu
fund
is
$629,287.34.

During
Fiscal
Year
2025-26,
Rincon
Consulting
was
hired
to
complete
an
evaluation
of
Housing
Authority
owned
sites
. This
evaluation
assesses
and
categorizes
housing
authority
properties
based
on
their
suitability
for
development.

The
final
report
will
serve
as
a
strategic
roadmap
for
allocating
housing
funds
to
support
affordable
housing
production.

The
report
is
scheduled
to
be
completed
later
this
year
with
recommendations
to
be
presented
to the
City
Council
in
2027.

Environmental
Review:

The
proposed
action
is
not
a
project
under
the
California
Environmental
Quality
Act
(CEQA)
because
it
involves
the
review
of
annual
financial
reports
and
does
not
involve
any
project,
construction,
or
physical
change
to
the
environment.

Therefore,
no
further
environmental
review
is
required.

Fiscal
Impact:

There
is
no
fiscal
impact
associated
with
this
item
.

Public
Notification:

None. Attachments: A.

Poway
Housing
Successor
Annual
Report
for
Fiscal
Year
2024-25
B.

Poway
Housing
Authority
Basic
Financial
Statements
and
Independent
Auditors
Report
for
the
year
ended
June
30,
2025
Tracy
evens
Assistant
City
Manager
2 of
37 Reviewed
By
:

Alan
Fenstermacher
City
Attorney
Ap
~proved
By·
~
-~
~
Chris
elti
City
Manager
September 15, 2026, Item #4

POWAY HOUSING SUCCESSOR ANNUAL REPORT

REGARDING THE LOW-AND MODERATE-INCOME HOUSING ASSET FUND FOR FISCAL YEAR 2024-2025
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 September 15, 2026. 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 2024-25 (Fiscal Year). The purpose of this Report is to provide the governing body of the Housing Successor with an annual report on 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 2024-25 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 amount 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 amount 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.
3 of 37
POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2024-2025

ATTACHMENT A
September 15, 2026, Item #4
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 section 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, 2015, and whether the statutory thresholds have been met.

X. Senior Housing Test: This 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 jurisdiction 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, 2015 to December 31, 2025.

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 monies 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.

POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2024 -2025 4 of 37
September 15, 2026, Item #4
I.

AMOUNT

DEPOSITED
INTO
LMIHAF
A
total
of
$719
,233
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
$5,738,465
none
of
which
is
being
held
for
items
listed
on
the
ROPS
. This
includes
$5,576
,245
in
cash
and
investments,
and
$227
,518
in
housing
loans
receivable,
less
$8,846
in
liabilities.

The
$227,518
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
2024-25
Monitoring
&
Administration
Expenditures
$34,613
Homeless
Prevention
&
Rapid
Rehousing
Expenditures
$0
Housing
Development
Expenditures
$66
,167
Total
LMIHAF
Expenditures
in
Fiscal
Year
$100,780
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
:

Fiscal
Year
2024-25
Cash
and
Cash
Equivalents
$5,576,245
Accounts
Receivable
$232,585
Statutory
Value
of
Real
Property
Owned
by
Housing
Authority
$13,917,824
Value
of
Loans
and
Grants
Receivable
$227
,518
Total
Value
of
Housing
Successor
Assets
'
$6
,036
,348
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.

POWAY
HOUSI
NG S

UCCESSOR
AN
NUAL
RE
POR
T
FISCAL
YEA
R
202
4 -2025
s
of
37 September 15, 2026, Item #4
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
compl
iance
with
the
five-year
period
to
commence
development
activities
.

APN
Street
Address
Date
of
Size
Status
Purchase
27546061
1267
4 Monte
Vista
Rd
02/22/2000

2.06 Acres
An
Affordable
Housing
Agreement
and
Ground
Lease
executed
11/19/2024
. The
Developer
and
Authority
are
evaluating
financing
and
next
steps.
32119028
0 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
beino
evaluated.
31421418
14048
Sycamore
Ave
06/30/2005

0.32 Acres
Vacant
land.

Creek
runs
through
property
. 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,
potential
development
Housino
Development
is
beinQ
evaluated.

The
following
provides
a
status
update
on
real
property
housing
assets
that
were
acquired
by
the
Housing
Successor
after
February
1,
2012
.

POWAY

HOUSING

SUCCESSOR
ANNUAL
REPORT
FISCAL
YEAR
2024
-2025
6 of37
September 15, 2026, Item #4
APN
Street
Address
PDateh
of
Size
Status
urc
ase
31723222
12207
&
12237
Old
&
36 Pomerado
Road
01/09/2018

1.07 Acres
Due
to
flood
plain
and
hab
itat
constraints,
the
development
potential
is
being
evaluated
.

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
Hous
ing
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
Because
the
Housing
Successor
did
not
meet
the
30 percent
extremely
low-income
(ELI)
expenditure
requirement
in
the
prior
five-year
period
, FY
2024-25
is
subject
to
the
heightened
50 percent
ELI
expenditure
requirement
under
Health
and
Safety
Code
Section
34176.1
(a)(3)(B)
.

After
subtracting
administrative
and
monitoring
costs
, t
he
Housing
Successor
expended
$66
, 167
in
LMIHAF
funds
during
the
fiscal
year
. Of
this
amount,
$50,
183
was
expended
on
the
Monte
Vista
affordable
housing
development
, which
contains
18 extremely
low-income
units
out
of
60 total
units
. Applying
the
proportional
unit
method,
30 percent
of
this expenditure
($15,055)
is
attributable
to
extremely
low-income
rental
housing
. No
other
projects
funded
during
the
fiscal
year
contained
extremely
low-income
units;
therefore,
no
additional
expenditures
qualify
toward
the
ELI
requirement.

The
Housing
Successor's
extremely
low-income
expenditure
percentage
for
FY
2024-25
is

22. 75
percent.

This
is
below
both
the
required
50 percent
expenditure
threshold
and
the
30 percent
threshold
needed
to
exit
the
heightened
expenditure
requirement.

As
a
result
, the
Housing
Successor
remains
subject
to
the
50 percent
extremely
low-income
expenditure
requirement
for
FY
2025-26
Extremely
Low-Income
Expenditures
Test
July
1,
2024
through
June
30,
2025
LMIHAF
Spent
on
Extremely
Low-Income
Housing
$15,055
Amount
Spent
on
ELI
Units
= A
Total
LMIHAF
Spent
in
FY24-25
$66,167
Total
LMIHAF
Spent=
B
Extremely
Low-Income
Test
22 .75%
A/
B =
Percent
of
LMIHAF
Spent
on
ELI
Units
in
FY24-25
X.

SENIOR

HOUSING
TEST
The
Housing
Successor
is
required
to
calculate
the
percentage
of
units
of
deed-restricted
rental
POWAY

HOUSING

SUCCESSOR
ANNUAL
REPORT
FISCAL
YEAR
2024
-2025
7 of
37 September 15, 2026, Item #4
housing
restricted
to
seniors
and
assisted
by
the
Housing
Successor
, the
former
redevelopment
agency
and/or
the
City
within
the
previous
10 years
in
relation
to
the
aggregate
number
of
units
of
deed-restricted
rental
housing
assisted
by
the
Hous
ing
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,
2015
through
December
31,
2025
:

Housing
Test
2015-2025
#
of
Assisted
Senior
Rental
Units
43 #
of
Total
Assisted
Rental
Units
166
Senior
Housing
Percentage
26%
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
$5
,738,465
in
the
LMIHAF
exceeds
the
sum
of
the
annual
deposits
made
in
the
preceding
four
fiscal
years
of
$3,314
,803.

As
a
result,
the
LMIHAF
has
an
Excess
Surplus
of
$2,423
,662
. The
Excess
Surplus
Calculation
is
summarized
below
.

Excess
Surplus
Calculation
FY
2024-25
Current
Uncomm
itted
Balance
$5,738,465
Less:

Deposits
in
FY2021-22
through
FY
2024-25
($3,314,803)
Excess
Surplus
Amount
$2,423,662
The
following
table
provides
additional
detail
on
deposits,
expenditures
, commitments
, and
year­
end
balances
for
each
of
the
preceding
four
fiscal
years
used
in
the
Excess
Surplus
test:

FY
2021/22
FY
2022/23
FY
2023/24
FY
2024/25
Total
FY21-25
Beginning
Ba
lance
$3,434,907
$5
,192
,658
$5
,078,830
$5
,181,530
Add:

Deposits
$1,841,651
$469,042
$284,877
$719,233
$3,314
,803
(Less)
Expenditures
($83
,900)
($582,870)
($182,
177)
($100,780)
Ending
Balance
$5,192,659
$5,078,830
$5
,181,530
$5
,799,984
(Less)
Commitments
$
(39,850)
$
(51,488)
$
(61
,373)
($61,519)
Closing
Balance
$5
,152
,808
$5
,027
,342
$5,120,157
$5
,738,465
Funds
for
an
evaluation
and
identification
of
affordable
housing
sites
survey
were
expended
during
POWAY

HOUSING

SUCCESSOR
ANNUAL
REPOR
T F
ISCAL
YEAR
2024
-2025
8 of
37 September 15, 2026, Item #4
FY25/26. The survey evaluated options and priorities for support of affordable housing. The final report will be presented to City Council in 2027 and is expected to serve as a strategic roadmap for allocating housing funds to support Affordable Housing production. For FY26/27, $552,175.33 was budgeted for an affordable housing project.

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). Inventory is as follows:

Current Inventory Number of Units
Restricted Homeownership Units as of 12/31/2025 40
Add: Restricted Homeowner Units Added by Housing Successor (January 0 1, 2025 through December 31, 2025) (Less): Restricted Homeowner Units Lost to Portfolio (January 1, 2025 0 through December 31, 2025) No inventory was lost in 2025. 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.

POWAY HOUSING SUCCESSOR ANNUAL REPORT FISCAL YEAR 2024-2025 9 of 37
September 15, 2026, Item #4
10 of
37 POWAY

HOUSING

AUTHORITY
(A
Component
Unit
of
the
City
of
Poway)
Financial
Statements
Vear
Ended
June
30,
2025

ATTACHMENT
B
September 15, 2026, Item #4

POWAY HOUSING AUTHORITY
Table of Contents
Year Ended June 30, 2025
Page
Independent Auditor's Report ......................................................................................................... 1 Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ....................................................................................................... 4 Statement of Activities ............................................................................................................ 5 Fund Financial Statements
Balance Sheet .......................................................................................................................... 6 Reconciliation of the Balance Sheet of the Governmental Fund to the Statement of Net Position ............................................................................................ 7 Statement of Revenues, Expenditures and Changes in Fund Balance ................................... 8 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the Governmental Fund to the Statement of Activities ................ 9 Notes to the Basic Financial Statements ........................................................................................ 10 Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule ............................................................................................ 18 Note to Required Supplementary Information ....................................................................... 19 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 ................................................................ 21 11 of 37
September 15, 2026, Item #4
DavisFarr

CERTIFIED PUBLIC ACCOUNTANTS
Davis Farr LLP
18201 Von l<mmon Avenue I Suite 1'100 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
Opinions
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, 2025, 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, 2025, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
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 opinions.

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 opinions are 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 37
September 15, 2026, Item #4
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
37 September 15, 2026, Item #4
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
opinions
on
the
basic
financial
statements
are
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
January
12,
2026
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.
jfaw
7'--
~
Irvine,
California
January
12,
2026
14 of
37 September 15, 2026, Item #4
This page intentionally left blank
15 of 37
September 15, 2026, Item #4

BASIC FINANCIAL STATEMENTS
16 of 37
September 15, 2026, Item #4
17 of 37
ASSETS
Poway Housing Authority
Statement of Net Position
June 30, 2025
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
Governmental
Activities
$ 5,576,245
232,585
227,518
13,917,824
19,954,172
3,576
5,270
8,846
13,917,824
6,027,502
$ 19,945,326
See accompanying notes to the basic financial statements September 15, 2026, Item #4
Functions/Programs
Governmental activities:

General government
Development services
Total governmental activities
Poway Housing Authority
Statement of Activities
Year Ended June 30, 2025
Program Revenues
Expenses
$ 19,552
81,228
$ 100,780
Charges
for
Services
508,509
508,509
Operating
Contributions
and
Grants
General Revenues
Investment income
Total general revenues
Change in net position
Net position, beginning
Net position, ending
Capital
Contributions
and
Grants
See accompanying notes to the basic financial statements 18 of 37
Net (Expense)
Revenue
and
Changes in
Net Position
(19,552)
427,281
407,729
142,000
142,000
549,729
19,395,597
$ 19,945,326
September 15, 2026, Item #4
19 of
37 ASSETS Cash
and
investments
Accounts
receivable
Poway
Housing
Authority
Balance
Sheet
Governmental
Fund
June
30,
2025
Due
from
other
governments
Total
assets

LIABILITIES
AND
FUND

BALANCE
Liabilities:

Accounts
payable
Unearned
revenue
Total
liabilities
FUND

BALANCE
Restricted
for
housing
Total
fund
balances
Total
liabilities
and
fund
balance
$ $ $ $
See
accompanying
notes
to
the
basic
financial
statements
5,576,245 232,585 227,518
6,036,348
3,576 5,270 8,846
6,027,502 6,027,502 6,036,348
September 15, 2026, Item #4
Poway Housing Authority
Reconciliation of the Balance Sheet of the
Governmental Fund to the Statement of Net Position
June 30, 2025
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. $ 6,027,502
13,917,824
Net position of governmental activities $ 19,945,326
=========
See accompanying notes to the basic financial statements 20 of 37
September 15, 2026, Item #4
Poway Housing Authority
Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund
Year Ended June 30, 2025

REVENUES
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 21 of 37
142,000
508,509
650,509
19,552
81,228
100,780
549,729
5,477,773
6,027,502
September 15, 2026, Item #4
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,
2025
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
37 $
549,729
$
549,729
September 15, 2026, Item #4

POWAY HOUSING AUTHORITY
Notes to the Basic Financial Statements
Vear Ended June 30, 2025
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 3417S(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 of funds, 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 of 37
September 15, 2026, Item #4

POWAY HOUSING AUTHORITY
Notes to the Basic Financial Statements
Year Ended June 30, 2025
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 for 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 Financial 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 accounting, 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 37
September 15, 2026, Item #4

POWAY HOUSING AUTHORITY
Notes to the Basic Financial Statements
Year Ended June 30, 2025
Note 1-Reporting Entity and Summary of Significant Accounting Policies (Continued) 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 37
September 15, 2026, Item #4
POWAY

HOUSING AUTHORITY
Notes
to
the
Basic
Financial
Statements
Year
Ended
June
30,
2025
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
E.

Deferred
Outflows/Inflows
of
Resources
10-50
years
10-100
years
5-20
years
20-50
years
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
future
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.

Unearned
Revenue
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.
26 of
37 September 15, 2026, Item #4
POWAY

HOUSING

AUTHORITY
Notes
to
the
Basic
Financial
Statements
Year
Ended
June
30,
2025
Note
1-
Reporting
Entity
and
Summary
of
Significant Accounting
Policies
(Continued)
G.

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.

H.

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.
27 of
37 September 15, 2026, Item #4
POWAY

HOUSING AUTHORITY
Notes
to
the
Basic
Financial
Statements
Year
Ended
June
30,
2025
Note
1-
Reporting
Entity
and
Summary
of
Significant
Accounting
Policies
(Continued)
H.

Fund
Balances
{Continued)
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.

I.

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.

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,
2025,
the
Authority
had
a
cash
balance
of
$5,576,245
.
28 of
37 September 15, 2026, Item #4
Note 3 -Capital Assets

POWAY HOUSING AUTHORITY
Notes to the Basic Financial Statements
YearEndedJune30,2025
The summary of changes in capital assets for the year ended June 30, 2025 is as follows:

Balance
June 30, 2024 Additions Deletions
Capital assets, not being
depreciated:

Land $ 13,917,824
Total capital assets, not being
depreciated 13,917,824
Governmental activities -capital
assets $ 13,917,824
Note 4 -Related Party Transactions
Balance
June 30, 2025
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, 2025 is $7,870.
29 of 37
September 15, 2026, Item #4

POWAY HOUSING AUTHORITY
Notes to the Basic Financial Statements
Year Ended June 30, 2025
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 two percent and three 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 at June 30, 2025 is $2,161,854.

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, 2025 is $42,135,315.
30 of 37
September 15, 2026, Item #4
This page intentionally left blank
31 of 37
September 15, 2026, Item #4

REQUIRED SUPPLEMENTARY INFORMATION
32 of 37
September 15, 2026, Item #4

REVENUES
Lease
revenue
Investment
income
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
33 of
37 $ $
POWAY

HOUSING

AUTHORITY
Budgetary
Comparison
Schedule
Year
Ended
June
30,
2025
Budget
Amounts
Original
Final
7 7
56,910
56,910
40,000
40,000
96,917
96,917
119,900
119,900
60,300
171,673
180,200
291,573
(83
,283)
(194,656)
(83,283)
(194,656)
See
note
to
required
supplementary
information
Actual
Variance
with
Amounts
Final
Budget
(7)
142,000
85,090
508,509
468,509
650,509
553,592
19,552
100,348
81,228
90,445
100,780
190,793
549,729
744,385
549,729
744,385
5,477,773
$
6,027,502
September 15, 2026, Item #4
POWAY

HOUSING

AUTHORITY
Note
to
Required
Supplementary
Information
Year
Ended
June
30,
2025
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.
34 of
37 September 15, 2026, Item #4
This page intentionally left blank
35 of 37
September 15, 2026, Item #4
DavisFarr
Davis Farr LLP
18201 Von Karman Avenue I Suite 1100 ! Irvine, CA 926'12 Main: 949.474.2020 I Fax: 949.263.5520 CERTIFIED PUBLIC ACCOUNTANTS 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, 2025, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements, and have issued our report thereon dated January 12, 2026.

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.
36 of 37
September 15, 2026, Item #4
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
January
12,
2026
37 of
37 September 15, 2026, Item #5
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA REPORT CityofPoway
September 15, 2026
Honorable Mayor and Members of the City Council
Tracy Stevens, Assistant City Manager
Tracy Stevens, Assistant City Manager
(858) 668-4502 or [email protected]

CITY COUNCIL
Approval of First Amendment to Lease Agreement for Boys & Girls Club of Greater San Diego
On July 31, 2001, the City Council approved a modification to the Community Park for the construction of a Boys & Girls Club and joint use parking lot located at 12988 Bowron Rd. On June 11, 2002, the Boys & Girls Club of Inland North County entered into a lease with the City for a 5.2-acre portion of the Community Park to develop and use a 20,253 square foot facility for a Boys and Girls Club. Since September 3, 2002, the Boys & Girls Club of Greater San Diego (formally known as Boys and Girls Club of Inland North County) has continuously subleased a portion of the leased premises for the purpose of running the federally funded early childhood education Head Start Program.

Recommended Action:

It is recommended the City Council approve an amendment to the lease agreement with the Boys & Girls Club of Greater San Diego allowing for an additional fifteen (15) year lease term with an option to extend the term an additional fifteen (15) year period following the expiration of the term on September 30, 2041.

Discussion:

On July 31, 2001, the City Council adopted Resolution P-01-37 for the approval of a Conditional Use Permit and Development Review for the construction of a new Poway Boys & Girls Club. The project included the 20,253 square foot Boys & Girls Club. The Club pays the City an annual rent of one dollar per year. The Boys & Girls Club -Poway Sulpizio Family Branch provides a vital service to the residents of Poway throughout the year operating Monday, Wednesday, and Friday from 2:00 PM to 6:00 PM and Tuesdays from 12:00 PM to 6:00 PM. The Club offers a variety of programs including after-school programs, summer programs, day camps, child development, STEM activities, sports, and leadership training that make a difference in the lives of Poway youth. 1 of 5
September 15, 2026, Item #5
Environmental Review:

This item is not subject to review under the California Environmental Quality Act (CEQA).

Fiscal Impact:

None.

Public Notification:

None.

Attachments:

A. First Amendment to Lease with Boys & Girls Club of Greater San Diego Tracy Stevens
Assistant City Manager
2 of 5
Reviewed By:

Alan Fenstermacher
City Attorney
Chris Hazeltine
City Manager
September 15, 2026, Item #5

FIRST AMENDMENT TO LEASE
This First Amendment to the Lease ("First Amendment") is made and entered into effective this 15th day of September 2026 (the "Effective Date"), by and between the City of Poway ("City"), a municipal corporation ("Landlord"), and the Boys & Girls Clubs of Greater San Diego, formerly known as BOYS and GIRLS CLUB OF INLAND NORTH COUNTY ("Tenant").

RECITALS

1. The Landlord and Tenant entered into that certain "Lease," dated June 11, 2002 (the "Lease") by which the Landlord and Tenant establish the terms and conditions for use of a portion of the City owned premises at 12988 Bowron Road, Poway, California (the "Leased Premises") for an initial period of twenty-five (25) years, and two (2) additional fifteen-year (15) options to extend the term; and

2. The City Council approved CUP-84-16m (2) and DR01-04 on July 31, 2001, for a 20,253 square foot Boys & Girls Club of which was developed on the 5.2- acre portion of the Community Park (the "Leased Premises"); and

3. Since 2002, Tenant has continuously subleased a portion of the Leased Premises for the purpose of running a Head Start Program. In 2016, Tenant entered into a new sublease with Community Action Partnership of San Luis Obispo County, Inc, a California non-profit corporation, which was most recently amended by the second amendment on or about April 27, 2026 (collectively, "Sublease"), in order to extend the term of the Sublease through June 30, 3031 with an option to extend the term for an additional five (5) years, subject to review and approval by the City of Poway City Manager; and

4. This First Amendment is necessary to define the Tenant's extended lease term and update the Landlord's point of contact in the Notices section of the Lease.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

Section 1. The Lease is hereby amended so that all references to "Boys and Girls Club of Inland North County" are replaced with "Boys & Girls Clubs of Greater San Diego."
Section 2. The first two paragraphs of Section 2 of the Lease are hereby deleted, and replaced to read in full as follows:
3 of 5 ATTACHMENT A
1 September 15, 2026, Item #5
Term and Termination: Subject to the provisions of this section, the term of the lease shall be fifteen (15) years (the "Term"), commencing on September 15th, 2026, (The "Commencement Date") and ending September 30th, 2041.

The City herby grants the Tenant the option to extend the Term of the Lease on all the provisions contained in the Lease one (1) additional fifteen (15) year period ("Extended Terms") following the expiration of the amended term, by giving notice of exercise of the option ("Option Notice") to the City at least one hundred and eighty (180) days but not more than three hundred and sixty (360) days before the expiration of the Term. If the Club is in default of any term of the Lease, other than the Construction Covenant or the Operation Covenant, at the time of the expiration of the Term and fails to cure said at the default on or before thirty (30) days after receipt of notice of breach, the Option Notice shall be without force or effect and this Lease shall expire effective as of the end of the Term.
2 Section 3. Section 13 of the Lease is hereby replaced to read in full as follows:

Notices: all notices, requests, demands, and other communications hereunder shall be in writing and shall.be deemed given if both (1) personally delivered or mailed, certified mail, return receipt requested, and (2) emailed, to the following addresses:

If to City, to: Chris Hazeltine
City Manager
City of Poway
P.O. Box 789
Poway, California 92074-0789
Phone No. 858-668-4501
Email: [email protected]
If to Club, to: Michelle Malin
President and CEO
Boys & Girls Clubs of Greater San Diego
PO Box 178569
San Diego, CA 92177
Phone No. 858-866-0591
Email: [email protected]
Section 4. Except as otherwise amended by this First Amendment, all other terms and conditions of the Lease shall remain in full force and effect. 4of5
September 15, 2026, Item #5
5 of
5 IN

WITNESS

WHEREOF,
the
parties
hereto
have
caused
this
First
Amendment
to
be
executed
the
day
and
year
first
above
written
.

LANDLORD: City
of
Poway,
municipal
corporation
By
: ____________
_
Chris
Hazeltine,
City
Manager
Date:
----
----
---
-
ATTEST
:

By:
-------------Carrie
Gallagher,
CMC,
City
Clerk

APPROVED
AS
TO
FORM:

By:
-------------A I
an
Fenstermacher,
City
Attorney
TENANT: Boys
&
Girls
Clubs
of
Greater
San
Diego
,1.
/
/
By
:
/tti_td/
${L_
Michelle
Malin,
President
and
CEO
Date
: __
<i,--'----1/1
__._ 1 I l_z_u_
3 September 15, 2026, Item #6
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA RE PQ RT City of Poway
September 15, 2026
Honorable Mayor and Members of the City C~il
Eric Heidemann, Director of Public Works ~,

CITY COUNCIL
Danielle McIntosh, Public Works Operations Manage~
(858) 668-4729 or [email protected]
Authorization to Purchase One (1) 2026 Ford F550 Medium-Duty Tree Truck and Bucket Lift Utilizing Sourcewell Cooperative Purchasing Program Contract #110421- AL T
The adopted Fiscal Year (FY) 2026-27 operating budget includes funding to purchase one (1) medium­ duty tree truck with bucket lift. The City of Poway (City) participates in and is a member of several cooperative purchasing organizations, including Sourcewell, formerly known as National Joint Powers Alliance (NJPA), which establish and provide nationwide competitively solicited purchasing contracts to be utilized by member agencies.

Sourcewell presented optimal pricing for one (1) medium-duty truck and bucket lift from Altec Industries, Inc. (Contract #110421-ALT). The equipment meets the City's service requirements and specifications. The fabrication time for the truck with bucket lift is approximately twelve months.

The total purchase price for the vehicle and equipment is $195,764.50.

Recommended Action:

It is recommended the City Council authorize the purchase of one (1) medium-duty tree truck with bucket lift for a total estimated cost of $195,764.50 from Altec Industries, Inc., utilizing Sourcewell Cooperative Purchasing Contract #110421-ALT and authorize the City Manager to execute the necessary documents.

Discussion:

The City operates and maintains over 125 street-legal vehicles and other heavy equipment for the purpose of inspecting, maintaining, and operating City facilities and infrastructure. Annually, several of these vehicles and pieces of equipment must be replaced as they exceed their useful life or have excessive mileage. The adopted FY 2026-27 budget contains funding to replace one (1) medium-duty tree truck with bucket lift.
1 of 5
September 15, 2026, Item #6
The
City
has
one
(1)
22-year-old
tree
truck
that
has
exceeded
its
useful
life
and
is
scheduled
for
replacement
.

The
tree
truck
is
utilized
by
the
Streets
Division
for
hauling
debris,
transporting
tools
and
equipment
to
work
sites
,
mounting
holiday
decorations,
and
as-needed
tree
work.

It
is
recommended
the
cab
and
chassis
be
replaced
through
the
Sourcewell
Cooperative
Purchasing
Program
utilizing
Altec
Industries,
Inc.

The
quote
for
the
new
truck
with
the
bucket
lift
is
within
the
budgeted
amount.

All
agreements
offered
through
the
Sourcewell
Cooperative
Purchasing
Program
have
been
awarded
via
a
thorough
competitive
Request
for
Proposals
(RFP)
solicitation
program
by
a
public
agency/government
entity
. The
program
provides
a streamlined
and
effective
procurement
option
by
establishing
agreements
with
manufacturers
and
suppliers
currently
on
an
existing
multiple
award
schedule
with
a
competitive
procurement
procedure.

Section

3.28 .110
of
the
Poway
Municipal
Code
permits
the
use
of
cooperative
purchasing
programs
for
procurement
of
supplies,
services,
and
equipment
when
the
administering
agency
has
made
the
purchase
in
a competitive
manner.

The
total
quoted
price
for
the
medium-duty
tree
truck
with
bucket
lift
is
$195,764.50.

A
copy
of
the
quote
is
on
file
with
the
Public
Works
Department.

Environmental
Review:

This
action
is
not
subject
to
review
under
the
California
Environmental
Act
(CEQA)
.

Fiscal
Impact:

The
City
proact
ively
plans
for
the
replacement
of
its
vehicles
and
equipment
by
annually
setting
aside
a
portion
of
the
anticipated
replacement
costs,
along
with
inflationary
adjustments
to
account
for
increases
in
equipment
costs.

The
purchase
will
be
split-funded
between
the
Capital
Replacement
Fund
(115010-61040)
and
the
Streets
Division's
operating
budget
(411040-61040)
for
one
(1)
medium
­
duty
tree
truck
with
bucket
lift
from
Altec
Industries,
Inc.

The
total
cost
of
the
vehicle
and
equipment
to
be
purchased
as
a
result
of
this
action
is
$195,764.50
.

Up
to
$166,640.00
is
available
from
the
FY
2026-27
Capital
Replacement
Fund
account
(115010-61040),
and
up
to
$33,360.00
is
available
from
the
Streets Division's
operating
budget
account
(411040-61040).

The
combined
available
funding
of
$200,000
.00
exceeds
the
purchase
cost
by
$4,235.50
. Only
the
actual
purchase
cost
of
$195,764.50
will
be
expended,
with
$33,360
.00
from
411040-61040
and
$162,404.50
from
115010-61040.

Funds
are
budgeted
and
available
for
the
purchase
.

Public
Notification:

None. Attachments: A.

Resolution
Authorizing
Purchase
of
Medium-Duty
Truck
and
Bucket
Lift
2 of
5 September 15, 2026, Item #6
Reviewed/Approved
By
:
~=
Assistant
City
Manager
3 of
5 Reviewed
By:

Alan
Fenstermacher
City
Attorney
Ap
~
Ch
~
City
Manager
September 15, 2026, Item #6

RESOLUTION
NO
. 26-
A

RESOLUTION
OF
THE
CITY

COUNCIL
OF
THE
CITY
OF
POWAY,

CALIFORNIA,

AUTHORIZING
THE

PURCHASE
OF
ONE
(1)

MEDIUM-DUTY
TRUCK
AND
BUCKET
LIFT

WHEREAS
, the
City
of
Poway
(City)
operates
and
maintains
over
125
street-legal
vehicles
and
other
heavy
equipment
for
the
purposes
of
inspecting,
maintaining
and
operating
City
facilities
and
infrastructure
and
to
provide
public
safety
services;

WHEREAS,
each
year
several
of
these
vehicles
and
pieces
of
equipment
must
be
replaced
as
they
exceed
their
useful
life
or
have
excessive
mileage;

WHEREAS,
the
City
proactively
plans
for
the
replacement
of
these
vehicles
and
pieces
of
equipment
by
accumulating
resources
in
the
Capital
Replacement
Equipment
Fund
through
annual
rent
charges
to
the
various
departmental
operating
budgets
associated
with
the
use
of
such
vehicles
and
equipment;

WHEREAS,
any
additional
amounts
estimated
to
be
required
to
replace
vehicles
and
equipment
in
the
year
of
the
planned
replacement
that
are
in
excess
of
the
amounts
accumulated
in
the
Capital
Replacement
Equipment
Fund
are
funded
through
additional
amounts
budgeted
in
the
various
departmental
operating
budgets
associated
with
the
use
of
such
vehicles
and
equipment
, thereby
helping
to
ensure
the
financial
sustainability
of
the
Capital
Replacement
Equipment
Fund;

WHEREAS,
the
Fiscal
Year
2026-27
adopted
operating
budget
includes
amounts
budgeted
in
both
the
Capital
Replacement
Equipment
Fund
and
in
departmental
operating
budgets
for
the
purchase
or
replacement
of
various
vehicles
and
equipment
; and

WHEREAS,
Poway
Municipal
Code
Section

3.28.11 O
provides
for
the
use
of
cooperative
purchasing
programs
for
the
purchase
of
supplies,
services,
and
equipment
when
the
administering
agency
has
made
their
purchase
in
a
competitive
manner.

NOW,

THEREFORE,
BE
IT

RESOLVED
by
the
City
Council
of
the
City
of
Poway
as
follows:

SECTION
1:

Authorizes
the
purchase
of
one
(1)
cab
and
bucket
lift
at
a
cost
of
$195
,764.50
from
Altec
Industries,
Inc
. utilizing
Sourcewell
Cooperative
Purchasing
Contract
#110421-AL
T.

SECTION
2:

The
City
Manager
is
hereby
authorized
to
execute
any
documents
necessary
for
these
purchases
.
4of
5 II II II II

ATTACHMENT
A
September 15, 2026, Item #6
Resolution No. 26-

PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Poway, California on the 15th day of September, 2026 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALI Fl ED:

Steve Vaus, Mayor
ATTEST:

Carrie Gallagher, CMC, City Clerk
5 of 5
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA RE PQ RT City of Poway
September 15, 2026
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Servicea
Douglas Nguyen, Associate Engineer
(858) 668-4605 or dnguyen@poway .org

CITY COUNCIL
Award of Contract to American Asphalt South Inc., for the 2026-2027 Street Maintenance Project, Bid No. 27-005 and Determination the Project is Categorically Exempt from the California Environmental Quality Act
This action will award a construction contract for the 2026-2027 Street Maintenance project. The project includes slurry sealing and striping of residential and arterial streets in Street Maintenance Zone 1 (see map as Attachment A). The City is divided into eight street maintenance zones. Annually, the City completes maintenance within one zone of eight on a rotational basis.

Recommended Action:

It is recommended the City Council award the contract for the 2026-2027 Street Maintenance project to American Asphalt South, Inc. in the amount of $1,228,451 and authorize the City Manager to execute the contract.

Discussion:

The 2026-2027 Street Maintenance project is part of the City's Annual Pavement Management Program. Streets included with this project are located within Zone 1, which encompasses residential and arterial streets north and east of, and including, Espola Road, extending from the western City limit to Sandhill Road. The project also includes raising survey monuments, water valve cans and sewer manhole lids to grade. This work in Zone 1 is being coordinated with the Annual Street Overlay contract.

The contract time for this project is 40 working days with an Engineer's Estimate of $1,460,000. Bids were opened on August 20, 2026. The following bids were received:

Company Total Bid Amount
American Asphalt South, Inc. $1,228,451
Pavement Coatings Co. $1,252,555
Union Pavement Services $1,692,120
1 of 16
September 15, 2026, Item #7
September 15, 2026, Item #7
Bids
were
evaluated
by
staff
for
compliance
with
bid
requirements.

The
lowest
responsive
bidder
,
American
Asphalt
South,
Inc.,
met
all
bid
requirements
and
is
recommended
for
award
of
this
construction
contract
(Attachment
8).

Environmental
Review:

The
proposed
slurry
sealing
of
existing
City
streets
with
the
2026-2027
Street Maintenance
project
is
Categorically
Exempt
from
the
California
Environmental
Quality
Act
(CEQA)
as
a
Class
1 Categorical
Exemption,
pursuant
to
Section
15301
(c)
of
the
CEQA
Guidelines,
in
that
the
project
involves
maintenance
of
existing
streets
with
no
expansion
of
use
.

Fiscal
Impact:

Sufficient
funds
have
been
programmed
in
the
Street
Maintenance
project
account
(ST038)
in
the
Proposed
Fiscal
Year
(FY)
2026-27
budget,
with
funding
included
from
various
streets
related
funds
(Road
Maintenance
And
Repair
-2120,
Transnet
30%
-2240,
and
Gas
Tax
-2110)
. The
City
proactively
plans
for
street
repair
and
replacement
projects
as
part
of
the
annual
budget
process
.

Public
Notification:

None
.

Attachments: A.

Zone
1 Street
Maintenance
Map

8. Construction
Contract
Tracy
evens
Assistant
City
Manager
2 of
16 Reviewed
By
:

Alan
Fenstermacher
City
Attorney
App
~
oved
BY,
Ch
risHazetine
City
Manager
)
September 15, 2026, Item #7
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7 of 16
September 15, 2026, Item #7

SECTION
8 CONSTRUCTION

CONTRACT
CITY
OF
POWAY
2026-2027
STREET

MAINTENANCE

PROJECT
This
Contract
made
and
entered
into
this
15th
day
of
September,
2026,
by
and
between
City
of
Poway,
a
municipal corporation
of
the
State
of
California,
hereinafter
referred
to
as
"City"
and
American
Asphalt
South,
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:

The
2026-2027
Street
Maintenance Project
is
part
of
the
City's
Annual
Pavement
Maintenance
Program.

The
project
area
is
located
within
Street
Maintenance
Zone
1,
which
includes
residential
and
arterial
streets
north
of
and
including
Espola
Road,
extending from
the
western
City
limit
to
Sandhill
Drive.

This
project
includes
replacement
of
traffic
striping,
pavement
legends
and
markings,
and
refreshing
of
painted
curbs
throughout
Zone

1. In
addition,
this
project
also
includes
adjustment
of
survey
monuments,
water
valve
cans
and
sewer
manhole
lids
to
finished
grade
.
1 8
of
16 ATTACHMENT
B
September 15, 2026, Item #7

4. Contractor
agrees
to
perform
all
the
said
work
and
furnish
all
the
said
materials
at
their
own
cost
and
expense
that
are
necessary
to
construct
and
complete
in
strict
conformance
with
Contract
Documents
and
to
the
satisfaction
of
the
City
Engineer,
the
work
hereinafter
set
forth
in
accordance
with
the
Contract
adopted
by
the
City
Council.

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
$1,228,451
the
"Contract
Price."
City
agrees
to
make
progress
payments
and
final
payment
in
accordance
with
the
method
set
forth
in
the
Special
Provisions.