CENTRAL MARIN FIRE COUNCIL
REGULAR MEETING
TO BE HELD
ON
THURSDAY, FEBRUARY 10, 2022
AT 6:30 P.M.
or upon conclusion of the CMPA Police Council meeting, whichever is later
VIA VIDEOCONFERENCE ONLY
Pursuant to Government code section 54953(e) the February 10, 2022 Regular Fire Council meeting will be conducted telephonically through Zoom. Please be advised that pursuant to Government Code section 54953(e), the Authority will not provide a physical location from which the public may attend or comment.
Members of the public may access the meeting and offer public comment by clicking on the following link:
Members of the public may view and participate in the meeting remotely through the following Zoom link:
https://tinyurl.com/y5lo7u9g
(No Pre-Registration Needed- Click on Link at Meeting Start Time) You may call in using: 1 (408) 638-0968 (Zoom webinar ID: 990 3431 0040) Or iPhone one-tap: +14086380968,,99034310040#
How to submit public comment remotely:
1. Email [email protected] prior to 4:00 P.M. on the day of the meeting.
2. Email [email protected] during the meeting.
3. Join the meeting using the link above and select the “Raise Hand” icon during the meeting, or press *9 to add yourself to the speaker queue if calling in to the meeting.
Anyone with a disability needing further assistance with public comment should contact the Clerk at least 2 business days before the beginning of the meeting to make alternative arrangements at [email protected] or 415-927-5050. Click here for more information on how to view and participate in the meeting and submit public comment remotely. Click here to view or download the full agenda packet.
AGENDA
I. CALL TO ORDER, ROLL CALL AND PLEDGE OF ALLEGIANCE
II. URGENCY ACTION
A. Resolution No. 2022/01 – Authorizing remote teleconference meetings of the Central Marin Fire Authority Council pursuant to Brown Act provisions Recommendation: that Council adopt the Resolution as presented III. OPEN TIME FOR PUBLIC EXPRESSION
Please Note: Please confine your comments during this portion of the agenda to matters not already on this agenda. The public will be given an opportunity to speak on each agenda item at the time it is called.
IV. PRESENTATIONS:
A. Wildfire Hazard and Fuels Mitigation Update
Presentation provided by Todd Lando, Hazard Mitigation Specialist B. F.I.R.E. Foundry Program
Presentation provided by Ruben Martin, Fire Chief
V. REPORTS AND COMMENTS
A. COUNCIL MEMBERS
B. MANAGEMENT COMMITTEE
C. CHIEF’S COMMENTS
VI. CONSENT CALENDAR -
A. Acknowledge and File Accounts Payable Checks, July 2021 through January 2022 and Transfers to Payroll Account, August 2021 through January 2022 B. Approve General Fund Revenue and Expenditure Report for January 2022 C. Approve Minutes of August 12, 2021 Regular Fire Council Meeting VII. BUSINESS ITEMS
A. Presentation and Acceptance of the Central Marin Fire Authority Annual Independent Audit Report for Fiscal Year Ending June 30, 2021 Recommendation: that Council receive presentation and accept audit report B. Consideration and Possible Adoption of Resolution No. 2022/02, Establishing Dates and Times for the Regular Meetings of the Fire Council of the Central Marin Fire Authority for 2022
Recommendation: that Council discuss and approve the resolution VIII. ADJOURNMENT
The next regular meeting of the Central Marin Fire Council is scheduled for Thursday, May 12, 2022
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Clerk of the Central Marin Fire Authority at (415) 927-5085. Notification at least 48 hours prior to the meeting will enable the Authority to make reasonable accommodations to help ensure accessibility to this meeting.
Any writings or documents provided to a majority of the Central Marin Fire Council regarding any item on this Agenda are available during normal business hours, for public inspection at Corte Madera Town Hall, 240 Tamal Vista Boulevard, Suite 110, Corte Madera, CA. Any reports that are provided after the posting of this Agenda and prior to the meeting will be made available at this same location simultaneously as it is provided to the Fire Council.
I certify that this agenda was posted on or before February 7, 2022, in full public view and access at least 72 hours prior to the Fire Council meeting time in accordance with the Brown Act.
Rebecca Vaughn, Authority Clerk
Central Marin Fire Authority
II.A.
CENTRAL MARIN FIRE COUNCIL
STAFF REPORT
REPORT DATE: February 1, 2022
MEETING DATE: February 10, 2022
TO: Central Marin Fire Authority Council
FROM: Management Committee
Ruben Martin, Fire Chief
SUBJECT: Resolution No. 2022/01 Pursuant to Assembly Bill 361 Authorizing Remote Teleconference Meetings Of The Central Marin Fire Authority Council Pursuant To Brown Act Provisions
STAFF RECOMMENDATION:
That Council adopt the proposed resolution.
FISCAL IMPACT:
There is no fiscal impact to the Fire Authority.
BACKGROUND/DISCUSSION:
Staff recommends that Council adopt the proposed resolution, pursuant to Assembly Bill 361, making findings pursuant to Government Code section 54953(e) to support continued use of teleconferencing to hold public meetings of the Central Marin Fire Authority Council pursuant to Brown Act Provisions during the continuing statewide state of emergency proclaimed by Governor Newsom on March 4, 2020. The findings, as outlined in the Resolution, must continue to be made, and a new Resolution must be adopted, every 30 days, in order for a legislative body to continue to hold remote teleconference meetings per AB361.
AB 361 modified the Brown Act’s requirements for holding teleconferenced meetings during states of emergencies. AB 361 was signed into law as an urgency measure on September 16, 2021. The changes to the law are now in effect and all Brown Act bodies holding remote meetings after September 30, 2021, must comply with these provisions.
ATTACHMENTS:
1. Proposed Resolution No. 2022/01
II.A.
RESOLUTION NO. 2022/01
A RESOLUTION OF THE CENTRAL MARIN FIRE COUNCIL OF THE CENTRAL
MARIN FIRE AUTHORITY REMOTE TELECONFERENCE MEETINGS OF THE FIRE
COUNCIL PURSUANT TO BROWN ACT PROVISIONS
WHEREAS, the Central Marin Fire Authority is committed to preserving public access and participation in meetings of the Fire Council; and
WHEREAS, all meetings of the Central Marin Fire Authority Council are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code §§ 54950 – 54963), so that any member of the public may attend, participate, and watch the Authority’s legislative body conduct its business; and
WHEREAS, Government Code section 54953(e) of the Brown Act, allows a legislative body to hold a teleconference meeting, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, in order to meet by teleconference under Government Code section 54953(e), the Governor must have proclaimed a state of emergency under the California Emergency Services Act (Govt. Code §8625 et. seq.); the legislative body must reconsider the circumstances of the state of emergency; and the legislative body must find that the state of emergency continues to directly impact the ability of the members to meet safely in person and/or state or local officials continue to impose or recommend measures to promote social distancing; and WHEREAS, On March 4, 2020, Governor Newsom proclaimed a State of Emergency declared by Governor Newsom under the California Emergency Services Act due to COVID-19, which is still in existence; and
WHEREAS, on November 1, 2021, the Marin County Public Health Officer issued a Public Health Order recommending the wearing of face coverings in workplaces and indoor public settings due to the rise of the SARS-CoV-2 Delta Variant, which is still in effect; and WHEREAS, the Town and City Councils of the member agencies of the Central Marin Fire Authority, which include Larkspur and Corte Madera, directed all legislative bodies of the their jurisdictions to meet by teleconference under the standards permitted under Government Code section 54953, until further notice; and
WHEREAS, the Fire Council provides in the public notices and agendas for all public meetings the online and telephone options for participation in public meetings, protecting the right of the public to address their local officials and to participate in public meetings, and posts this information on the Authority’s website, including instructions on how to access the public meeting remotely; and
NOW, THEREFORE BE IT RESOLVED, that the Fire Council has reconsidered the circumstances of the state of emergency; and
II.A.
BE IT FURTHER RESOLVED, that the Fire Council finds that State or local officials continue to impose or recommend measures to promote social distancing and that State of Emergency declared by Governor Newsom on March 4, 2020, continues to directly impact the ability of Councilmembers, staff, and the public to meet safely indoors in person; and BE IT FURTHER RESOLVED, that the Fire Council will meet by teleconference. ********
IT IS HEREBY CERTIFIED that the foregoing Resolution was duly passed and adopted by the Council of the Central Marin Fire Authority at a Regular Meeting thereof this 10th day of February, 2022 by the following vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
_________________________________
Kevin Haroff, Council Chair
Central Marin Fire Authority
ATTEST:
_________________________________
Rebecca Vaughn, Authority Clerk
Central Marin Fire Authority
CENTRAL MARIN FIRE COUNCIL
STAFF REPORT
REPORT DATE: January 27, 2022
MEETING DATE: February 10, 2022
TO: Central Marin Fire Authority Council
FROM: Daria Carrillo, Finance Director
SUBJECT: Accounts Payable Checks, August 2021 through January 2022 and Transfers to Payroll Account, August 2021 through January 2022
RECOMMENDED ACTION:
Acknowledge and file: 1) checks numbers 21465 to 21829 for a total of $2,186,415.01, 2) voided check numbers 21500, 21521, and 21560 totaling $547.50, and 3) transfers to the payroll account in the amount of $5,039,831.55.
BACKGROUND/DISCUSSION:
The attached Check Report was produced from the Town of Corte Madera’s financial system. It includes all checks issued from the Town’s Bank of Marin operating account during the months of August 2021 through January 2022 on behalf of Central Marin Fire Authority.
The Bank of Marin operating account is a pooled account for the day to day operations of both the Town of Corte Madera and the Central Marin Fire Authority. The finances of the two separate entities are segregated within the Town’s financial system. Checks issued on behalf of Central Marin Fire Authority include the Central Marin Fire Authority’s name and logo and have a separate numbering system from that of the Town. On occasion, a check will be written for services or goods incurred by both the Town and Central Marin Fire Authority on the Town’s check stock, resulting in checks with a different numbering system appearing on the check report.
In addition to the operating account, the Town maintains a payroll account at Bank of Marin. This account is for payroll transactions only. All payroll items are paid through the payroll account, including direct deposit payments to employees, state and federal tax payments, CalPERS payments for retirement and medical insurance and other payroll related items. Many of the payments are made electronically.
For the period August 2021 through January 2022, $5,039,831.55 was transferred from the operating account to the payroll account for payroll related expenditures.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
ENVIRONMENTAL IMPACT:
This activity is not defined as a project under CEQA (Section 15378 CEQA Guidelines).
OPTIONS:
1. Approve the check listing as presented.
2. Take no action at this time and provide further direction to staff ATTACHMENTS:
1. Check Report, August 2021 through January 2022
THIS ITEM HAS BEEN REVIEWED AND APPROVED BY THE EXECUTIVE MANAGER.
VI.B
CENTRAL MARIN FIRE COUNCIL
STAFF REPORT
REPORT DATE: February 2, 2022
MEETING DATE: February 10, 2022
TO: Central Marin Fire Authority Council
FROM: Daria Carrillo, Finance Director
SUBJECT: January 2022 General Fund Revenue and Expenditure Report
RECOMMENDED ACTION:
That the Fire Council approve the Revenue and Expenditure Report for the period ending January 31, 2022.
BACKGROUND/DISCUSSION:
The attached revenue and expenditure report is as of January 31, 2022, and reflects financial activity transacted during 58% of the budget year. This report includes the General Fund and the Measure C Fire Tax Fund.
This reports shows revenue and expenditures by major category. Total activity for the previous year and the activity through January 2021 as well as the budget and activity through January 2022. The numbers for the previous year are the audited actuals for 2020-2021. The audit has been completed and will be presented to the Fire Council in a separate item.
GENERAL FUND
Revenue:
The General Fund receives nearly all of its revenue from contributions from the two member agencies, the City of Larkspur and the Town of Corte Madera. Each member agency pays 50% of the member contributions and makes payments on a quarterly basis. As expected, revenue from member contributions is at 75%, the same percentage as last year at this time.
The state has also reimbursed the Fire Authority for out of county response in the amount of $892,039.
VI.B
Total revenue is $1,348,616 more than last year at this time. Please note the following:
State Reimbursements are $851,100 greater than the amount received last year at this time Member contributions are $296,546, or 4.2%, greater than the amount received last year at the same time due to the increase in the required member contributions. The Fire Authority has received a $45,000 Fire Safe Marin grant in the current fiscal year. A reimbursement for the Ross Valley Paramedic Authority Engine Program for the previous fiscal year was received in the current fiscal year in the amount of $131,575.
Expenditures:
Total expenditures are $307,364 greater than last year at this time, and are at 66% of the budgeted amount. Please notice the following:
Salaries are $125,658 greater than last year at this time and are at 77% of the budgeted amount.
Included in this total are expenditures for overtime totaling $1,662,394. As noted above, the Fire Authority has been reimbursed $851,100 by the State for some of the overtime expenditures. An additional $263,000 in reimbursement is expected from the State. Most of the increase in salaries is the result of the 2% to 4.5% increase to the salary schedules, depending on position, and to scheduled step increases, promotions and authorized vacation cash outs.
Retirement expenditures are $7663 more than the amount at the same time last year, the result of increased salary costs and an increase to the CalPERS normal cost rate. Retirement costs are at 58% of budget as compared to 57% at the same time last year.
Other Benefits, which includes health benefits, payroll taxes, and other employee benefits, are $18,654 greater than the amount expended last year at this time. The increase is due to increased health insurance rates, as well as to increased payroll taxes due to increases in salaries.
Approximately 55% of the budget has been expended, as compared to 56% last year at this time.
Outside Services are $142,050 greater than last year at this time. $45,000 of the increase is for vegetation management costs, which have been reimbursed by the Fire Safe Marin grant noted above.
Also, Disaster Preparedness and Neighborhood Response Group expenditures which were previously paid by the member agencies are now paid by the Fire Authority.
Allowing for overtime expenditures which have been or will be reimbursed by the State, overall expenditures are as expected.
MEASURE C FIRE TAX
Revenue:
The Measure C Fire Tax Fund was established to record revenue and expenditures associated with the Marin Wildfire Prevention Authority parcel tax approved by the voters in 2020.
Revenue received is $252,777 greater than the amount received last year at this time due to a timing difference in receipt of the first payment of the Measure C parcel tax revenue. The Fire Authority also received a $20,000 payment from Fire Aside Inc as reimbursement for work performed by the Fire Authority.
VI.B
Expenditures:
Total expenditures to date are $829,746 and are at 102% of the annual budget. The overage is caused by Outside Services, which total $717,824, which is $85,179 of the budgeted amount. Of this amount, $369,992 will be reimbursed by Marin Wildfire Prevention Authority for work done related to vegetation management and removal.
Other expenditures are as expected. Not including the expenditures mentioned above that will be reimbursed, total expenditures are at 56% of the annual budget.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
ENVIRONMENTAL IMPACT:
This activity is not defined as a project under CEQA (Section 15378 CEQA Guidelines).
OPTIONS:
1. Approve the report as presented.
2. Take no action at this time and provide further direction to staff ATTACHMENTS:
1. Budget Summary Report For the Period Ending January 31, 2022.
THIS ITEM HAS BEEN REVIEWED AND APPROVED BY THE EXECUTIVE MANAGER.
Central Marin Fire Authority
2021-2022
Budget Comparison Report
2020-2021
Total
Activity
2020-2021
YTD Activity
Through
January
2021
Percent
Received /
Expended
2021-2022
Adopted
Budget
2021-2022
YTD Activity
Through
January
2022
Percent
Received /
Expended
Fund: 70 - CENTRAL MARIN FIRE AUTHORITY GENERAL FUND
Revenue
430 - PERMITS AND FEES 118,689 41,766 35.19% 150,000 55,837 37.22% 431 - COST RECOVERY 3,678 1,986 54.00% 0 1,226
460 - STATE REVENUE 1,348,283 39,939 2.96% 0 892,039
480 - OTHER LOCAL AGENCY REVENUE 102,595 0 0.00% 0 7,613 481 - MEMBER CONTRIBUTIONS 9,341,198 7,006,043 75.00% 9,767,720 7,302,589 74.76% 490 - OTHER REVENUE 211,876 4,738 2.24% 0 183,785
Total Revenue: 11,126,319 7,094,472 63.76% 9,917,720 8,443,088 85.13% Expense
600 - SALARIES 7,378,385 4,557,867 61.77% 6,051,141 4,683,525 77.40% 601 - RETIREMENT 803,945 462,190 57.49% 812,886 469,853 57.80% 602 - OTHER BENEFITS 980,352 548,668 55.97% 1,029,391 567,322 55.11% 603 - RETIREE BENEFITS 19,814 10,518 53.09% 40,320 24,816 61.55% 611 - OUTSIDE SERVICES 728,498 327,544 44.96% 767,699 469,594 61.17% 612 - TRAINING, EDUCATION, MEETINGS 14,373 37,960 264.11% 70,000 6,291 8.99% 613 - DUES AND SUBSCRIPTIONS 8,166 3,787 46.37% 9,000 2,620 29.11% 614 - EQUIPMENT MAINTENANCE 40,079 36,650 91.45% 40,944 14,808 36.17% 615 - BUILDING AND GROUNDS MAINTENANCE9,528 3,381 35.49% 25,000 2,333 9.33% 616 - VEHICLE MAINTENANCE 99,398 20,037 20.16% 70,000 52,242 74.63% 620 - UTILITIES 71,355 35,925 50.35% 71,100 43,701 61.46% 630 - SUPPLIES 278,098 157,528 56.64% 319,925 172,315 53.86% 651 - EQUIPMENT 0 0 0.00% 7,000 0 0.00%
670 - TRANSFERS OUT 694,329 0 0.00% 603,314 0 0.00%
Central Marin Fire Authority
2021-2022
Total Expense: 11,126,319 6,202,056 55.74% 9,917,720 6,509,420 65.63% Total Fund: 70 - CENTRAL MARIN FIRE AUTHORITY GENERAL FUND: 0 892,417 0 1,933,668 2/1/2022 11:26:00 AM
Budget Comparison Report
Parent Budget
2020-2021
Total Activity
2020-2021
YTD Activity
2021-2022
2021-2022
2021-2022
YTD Activity
Fund
70 - CENTRAL MARIN FIRE AUTHORITY GENERAL FUND 0 892,417 0 1,933,668 rt Total: 0 892,417 0 1,933,668
Central Marin Fire Authority
2021-2022
Budget Comparison Report
2020-2021
Total Activity
2020-2021
YTD Activity
Through
January 2021
Percentage
Received /
Expended
2021-2022
Adopted
Budget
2021-2022
YTD Activity
Through
January 2022
Percentage
Received /
Expended
Fund: 75 - MEASURE C FIRE TAX FUND
Revenue
400 - PROPERTY TAX 737,575 180,103 24.42% 729,706 412,880 56.58% 481 - MEMBER CONTRIBUTIONS 88,396 0 0.00% 87,094 0 0.00% 490 - OTHER REVENUE 0 0 0.00% 0 20,000 0.00%
Total Revenue: 825,971 180,103 21.80% 816,800 432,880 53.00% Expense
600 - SALARIES 150,670 91,886 60.98% 143,340 88,093 61.46% 601 - RETIREMENT 10,165 6,031 59.33% 11,080 6,482 58.51% 602 - OTHER BENEFITS 20,007 10,670 53.33% 29,735 13,332 44.84% 611 - OUTSIDE SERVICES 549,988 288,306 52.42% 632,645 717,824 113.46% 630 - SUPPLIES 26,582 4,900 18.43% 0 4,014
Total Expense: 757,411 401,792 53.05% 816,800 829,746 101.59% Total Fund: 75 - MEASURE C FIRE TAX FUND: 68,560 -221,690 0 -396,867 1 VI.C.
1 DRAFT MINUTES OF AUGUST 12, 2021
2 3 REGULAR MEETING
4 OF THE
5 FIRE COUNCIL OF THE CENTRAL MARIN FIRE AUTHORITY
6 HELD VIA ZOOM VIDEOCONFERENCE
7 ON
8 THURSDAY, AUGUST 12, 2021
9 AT 6:30 P.M.
10 Or upon conclusion of the CMPA Police Council meeting, whichever is later 11 12
13 14 I. ROLL CALL
15 The Regular Meeting of the Fire Council of the Central Marin Fire Authority was called to order at 16 6:30 p.m. and videoconference protocols were provided. 17 18 COUNCIL MEMBERS PRESENT:
19 Kevin Haroff, Chair, City of Larkspur
20 Scot Candell, Alternate Council Member, City of Larkspur 21 Fred Casissa, Alternate Council Member, Town of Corte Madera 22 Bob Ravasio, Council Member, Town of Corte Madera
23 24 COUNCIL MEMBERS ABSENT:
25 None
26 27 STAFF PRESENT:
28 Todd Cusimano, Corte Madera Town Manager
29 Dan Schwarz, Larkspur City Manager
30 Ruben Martin, Fire Chief
31 Janet Thiessen, Human Resources Manager
32 Nick Gabbard, Association Representative
33 Tom Bertrand, Authority Counsel
34 Rebecca Vaughn, Authority Clerk
35 36 II. PLEDGE OF ALLEGIANCE
37 The Pledge of Allegiance was recited.
38 39
40 III. OPEN TIME FOR PUBLIC EXPRESSION
41 No public comment was received.
42 43
44 IV. PRESENTATIONS: NONE
45 46
47 48
2 1 V. REPORTS AND COMMENTS
2 3 A. COUNCIL MEMBERS:
4 No reports
5 6 B. MANAGEMENT COMMITTEE
7 No reports
8 9 C. CHIEF’S COMMENTS
10 Chief Martin provided an update on what the Authority has been doing, both at the state 11 level, and regional/local level. At the state level, you may recall, at our last scheduled 12 meeting in May, I gave a presentation on the outlook for the 2021 fire season, and the state 13 and the National Weather Service painted a pretty dire picture. And as you can see, based 14 on the fire activity that we're having up in Northern California, they were fairly accurate. 15 16 Since the beginning of the Dixie Fire, and before that the Plumas National Forest fires, and 17 fires that were occurring around the Oregon/California border, we have had members of the 18 organization deployed up there and rotated in and out, which, if we count the days, it's 19 equivalent to about four weeks that they've been assigned to the Dixie Fire. 20 21 We currently have five members of the organization staffed up there, and the feedback that 22 we have gotten from the crews that have rotated back into the local jurisdiction is that, the 23 fire behavior that they're seeing, at least in the bigger, heavier fuel, are burning with the 24 same intensity and characteristics as you would see with grass, which tells you just the lack 25 of fuel moisture that's within the forest, and how easily any little spark could then cause a 26 major large fire. So definitely our predictions are there. Any fires that are happening locally, 27 we're jumping on them and hitting them with everything we have and with more resources 28 than what we normally would, just to prevent them from getting any larger. The Dixie Fire is 29 currently categorized at approximately 510,000 acres. So that's half a million acres, just on 30 one fire, and approximately 30% containment. Hopefully some weather will change around 31 for us, so we can get a handle on that one.
32 33 Looking at the regional level, the MWPA inspectors that we have contracted with in Central 34 Marin have been out in force since the beginning of June. We joined with Kentfield Fire 35 Department, Ross Valley Fire Department, and Marin County to collaboratively hire 25 36 inspectors to go out and do defensible space inspections throughout our community. This 37 year, they were able to accomplish 2100 inspections throughout all of Greenbrae Hills, 38 Eastern Corte Madera, and all of Chapman Park, which was our designated target zone for 39 this year. One of the biggest differences with the program this year is that we are doing 40 follow up inspections.
41 42 Out of those 2100 inspections, 200 homes within the Central Marin's jurisdiction were 43 flagged as properties of concern or having extreme fire hazards on them. So those will get 44 follow up inspections. And twofold, one is to try to figure out why the work wasn't done and 45 what can we do as an agency, using Measure C funding, to be able to get the work done. 46 Regarding the voluntary abatement program, if, for example, we have an elderly 47 homeowner that doesn't have the means available to clear their property, we will then go 48 ahead and hire a contractor to clear it for them and at least allow them to hit the reset 49 button. Also, using core funding through MWPA, there will be approximately $1.9 million 50 coming to the local jurisdictions here within the Central Marin area, which includes all the 51 municipalities down the Ross Valley.
3 1 Work has begun, as of August 3rd. We have been doing roadway clearances, both in Corte 2 Madera and Larkspur. Within the Larkspur area, we're doing the area up in Blue Rock, 3 which is off of Hazel, Walnut, Laurel. It was pretty badly overgrown, so we're doing some 4 work there to try to improve the evacuation routes. And then within Corte Madera, we're 5 doing areas of Meadowsweet and Meadow Valley, which have seen years of deferred 6 maintenance and neglect by property owners. We've also incorporated with Fire Side, 7 which is that fire app that gives a comprehensive report to every homeowner, which 8 identifies both in a high priority, moderate, and low priority. So that way a homeowner can 9 actually look at a report and be able to basically make a checklist of what should be done 10 first, second, and third, and so forth. Plus it provides recommendations for any kind of 11 home hardening.
12 13 At the local level, we got pretty lucky during the 4th of July weekend. We had a few small 14 fires start. One of them was pretty noticeable along the freeway, which was right at the 15 entrance at Casa Buena and Meadowsweet, that one came up as kids playing with 16 fireworks and unfortunately, they were gone by the time we got there, but was only 17 contained to about a 20 by 20 foot spot.
18 19 A few announcements: on August 10th, we held a community blood drive. We partnered 20 with Vitalant, which is formally the Blood Bank Of The Redwoods. They would typically hold 21 a blood drive quarterly at the Kentfield Fire Station for years, co-sponsored with the Marin 22 Art and Garden Center. However, as the pandemic hit and several places were being shut 23 down, they were having a hard time trying to find a location to provide and conduct their 24 blood drive. So this last week, in collaboration with the town of Corte Madera, Kentfield Fire 25 Department, Vitalant, and ourselves, we were able to hold a successful blood drive where 26 there were at least 120 persons that had appointments and scheduled, but they have a 27 capacity of doing 180. And we look forward to collaborating with them in the future. I 28 believe they have another blood drive scheduled for the first week in November, so more 29 notices will go out on that.
30 31 We felt that the Corte Madera Community Center was a very good central location, where 32 we can tap into the existing blood drive donors, plus potentially new donors that may be 33 available within the Corte Madera, Central Marin, and maybe even in the Southern Marin 34 area, since it's centrally located.
35 36 This weekend, the Marin County Emergency Services Authority is sponsoring several 37 sidewalk CPR events, that are going on from 10am to 2pm, and they're also doing STOP 38 THE BLEED training. So the two that are within our jurisdiction are at the Corte Madera 39 Town Center, and the other one will be at the Marin Country Mart. They will be out there 40 Saturday with Central Marin personnel rotating in and out assisting the hospital staff to 41 provide the training. Coming up August 21st, in partnership with the Madrone Canyon NRG 42 group, they will be holding a fundraiser / First Responder Picnic. They are using it as a 43 fundraising opportunity to be able to gain some funds so they can finish outfitting the 44 disaster trailer located at Dolliver Park within Larkspur. 45 46 Chief Martin answered questions from the Council and concluded his presentation. 47 48 VI. CONSENT CALENDAR:
49 50 Chair Haroff asked if there were public comments or requests from Council or the public for removal 51 of items from the Consent Calendar. There were no comments received from online attendees and 4 1 no comments received by email, and there were no requests were received from the Council or the 2 public to remove items from the Consent Calendar.
3 4 Chair Haroff then called for a vote on the Consent Calendar. 5 MOTION: It was M/S/C (Ravasio/Casissa) to approve Consent Calendar items VI A-E. 6 7 Roll call vote: 4-0 in favor of the motion. (with the notation that Councilmember Casissa abstained 8 from voting on items VI.C. and VI.D.)
9 10 The approved Consent Calendar consisted of the following items:
11 12 A. Acknowledge and File Accounts Payable Checks, May through July 2021 and 13 Transfers to Payroll Account, May through July 2021
14 15 B. Accept Report on Estimated Actuals for Fiscal Year 2020-2021 16 17 C. Approve Minutes of February 11, 2021 Regular Fire Council Meeting 18 (Continued from May 13, 2021 Regular Fire Council meeting) 19 20 D. Approve Minutes of March 25, 2021 Special Fire Council Meeting 21 (Continued from May 13, 2021 Regular Fire Council meeting) 22 23 E. Approve Minutes of May 13, 2021 Regular Fire Council Meeting 24 25
26 VII.BUSINESS ITEMS
27 28 Chair Haroff noted that, because of the relationship between some of the items with each other, 29 Council as requested a staff report and council discussion of four items together, VII.A,B,C and E, 30 and then a separate staff report and discussion on item VII.D. Council will then vote on each of the 31 items that are on the agenda separately.
32 33 Staff Report and Discussion Regarding Items VII.A, B, C and E:
34 Manager Cusimano provided the staff report and background, stating that he and Manager 35 Schwarz offer thanks to Human Resources Manager Janet Thiessen, Chief Martin, and the 36 Firefighters' Association, along with the Battalion Chiefs and Management Unit, for their ability to 37 problem solve. We consolidated departments back in 2018, as the staff report outlines in the 38 background. We worked together to problem solve a series of best practices, and really substantial 39 reforms that set us up for success moving forward. This first grouping of items involves the 40 Firefighters' Association, the firefighter captains, engineers, and firefighter paramedics. And back 41 in 2018, we approved a two year contract, with 2% increases each year. That contract expired 42 June 30, 2020, and the Management Committee approached the Firefighters' Association and 43 received their support to basically stay as-is through COVID this past year, so there were no 44 contract negotiations over the last year.
45 46 Item VII.A:
47 With that in mind, and really looking at coming out of COVID, where we are right now, we worked 48 together to see where we are within the county averages with our cohorts. The engineers and 49 captains were in a good spot, as you'll see in the staff report, the firefighters were really 50 substantially below the median in the county. And so the core of this agreement, it's a three year 51 term. The base is a 2% increase year one, a 3% increase year two, and a 3% increase year three. 5 1 This also includes equity adjustments for the firefighter paramedic classification over the three 2 years, two and a half percent additional each of the three years. He stated that he and Manager 3 Schwarz feel this will place them where they need to be by year three within the county. 4 5 This is a strong MOU and contract, which will help us with recruitment and retention, and the 6 Management Committee recommends approval of these increases. Year one of this 7 recommendation is $170,000, which includes payroll taxes and retirement costs, and that is within 8 the current approved budget. The total cost of this contract is approximately $624,000 over the 9 three year period.
10 11 Item VII.B:
12 Moving forward for the Battalion Chiefs, the Battalion Chiefs have their own unit, which consists of 13 three Battalion Chiefs. Looking at the Battalion Chiefs, each unit is different, they have different 14 needs. We really focused on trying to understand what they needed. Within the first three years, 15 we wanted to stay within that 8% of increases, like we did with the Firefighters' Association, to stay 16 consistent across the board. With their needs, we are recommending, a four year contract for this. 17 Instead of 2% in year one, we're recommending 4% in year one. And then on the out years, the 18 following three years, would be 2% each year. We feel by adding that additional year at 2%, 19 looking at where their cohorts are within the county, this will keep our Battalion Chiefs in the 20 median, or slightly above where we want them to be. And we think to show our appreciation of the 21 good work they have been doing, we think this is an appropriate recommendation. Again, year 22 one, total cost is about $25,000. The total cost of the contract, over four years, is $65,000, that 23 includes payroll and retirement costs. It is contained within this year's budget that was approved by 24 the Fire Council at the last meeting.
25 26 Item VII.C:
27 The third unit is the Management Unit, that's Chief Martin and Todd Lando. A majority of Todd 28 Lando’s, if not all of his contractors’, costs are contained within our Measure C funding, but he is 29 within the Management Unit as well. And with that, we're recommending a three year term for the 30 Management Unit. It's a 2-3-3, it follows what we did with the Firefighters' Association, and you can 31 see the total cost detailed within the fiscal impact of that staff report. 32 33 Item VII.E:
34 If the council chooses to approve these three MOU contracts, the last item, VII.E. would be 35 consideration to adopt resolution 2021/07, approving the publicly available pay schedule as 36 required by CalPERS.
37 38 Manager Cusimano concluded his presentation, stating that he, Manager Schwarz, Janet Thiessen 39 and Ruben Martin are available to answer any questions. 40 41 Chair Haroff inquired about items VII.F. and VII.G, and asked if Manager Cusimano wished to 42 address them at this time, as well.
43 44 Item VII.F:
45 Manager Cusimano responded that item VII.F. is consideration of approving a budget revision to 46 the insurance fund in the amount of $60,579. As the staff report by Finance Director Daria Carrillo 47 outlines, at the time we approved the budget, we were not completely sure what the premium cost 48 were going to be for our Bay Cities risk pool. Manager Schwarz can speak to any specific 49 questions, as he's the President of our risk pool. We're just in unparalleled times, and so there are 50 insurance impacts across the board. We saw some pretty substantial increases this past year. And 6 1 so those rises in the premiums hit us pretty good, and we're asking for a budget adjustment of 2 $60,000 from the budget that you previously approved. Earlier on the consent calendar, you 3 approved item B, moving that $150,000 surplus to the insurance fund to offset the $60,000 in 4 increases. And so our insurance fund will be fully funded this next year, as necessary, and we're 5 not asking for a budget amendment, just a revision to reflect what the actual premium costs are. 6 7 Item VII.G.:
8 Item VII.G. is consideration to authorize the Executive Managers to redeem unused accrued 9 vacation hours due to COVID 19, specific to the Battalion Chiefs Association members in a 10 maximum amount, no higher than $36,100. We don't anticipate it to cost that much, with some of 11 the buyouts of our Battalion Chiefs, but as the staff report outlines, just really unprecedented. Our 12 Battalion Chiefs really took the lead, helping in the county with vaccinations in response to COVID 13 19. They were unable, as many of our staff within Corte Madera and Larkspur, to take time off, so 14 we don't think it's appropriate for them to lose time, as they weren't able to use it.It's a liability 15 whether we pay them out or not, it is on our books currently. They're allowed to accrue up to 400 16 hours a year, and so we're asking for authorization to allow the managers to negotiate with the 17 Battalion Chiefs to get them to redeem some of this unused accrued time up to $36,000. And with 18 that, I'm happy to answer any questions.
19 20 Chair Haroff expressed his appreciation for the work that was done to support the COVID 21 response. He then asked for a separate presentation on agenda item VII.D, and asked if the 22 council had any questions on the other items that have been addressed, VI.A, B, C, E, F, G. 23 Hearing none, he called for any questions from the public. 24 No public comments were received from online attendees or via email. 25 26 Chair Haroff then called for the presentation on item VII.D. 27 28 Item VII.D:
29 Chief Martin responded that item VII.D. concerns the creation of a position of Fire Inspector and 30 establishing a salary range for that position. This position that we are bringing for authorization will 31 fill multiple facets and needs within the organization. A little background, at the creation of the 32 Central Marin Fire Authority, we were contracting Ross Valley Fire Department to do plan services, 33 and were relying heavily on a lot of construction style inspections, and so forth, on our field 34 personnel, which is our engine companies. As highly talented as they are, sometimes don't have 35 that niche or that specific level of training. So as the Central Marin Fire Authority came together, 36 we hired the Fire Marshal, which ended up doing a lot of the plan reviews, met with the public, was 37 in charge of our comprehensive fire prevention program, which does approximately 370 biannual 38 inspections, which is a lot of our normal businesses that are within our jurisdictions. 39 40 These are inspections that are required by the State Fire Marshal's Office, which includes your 41 schools, all of your apartments, all of your motels, hotels, and your assemblies. From there, we 42 also do several wildfire hazard complaints, plus, on an average, anywhere between 300 and 350 43 plan reviews and permit reviews that are issued through the Fire Department, that then are 44 subsequent to several inspections that are involved with that. As we remember, at the beginning of 45 COVID last year, our former Fire Chief, Chief Shurtz, retired from the Central Marin Fire Authority, 46 allowing the opportunity for the existing Fire Marshal, which was myself, to promote into his 47 position. With the uncertainties of COVID, we kind of felt like, "Oh, let's put the Fire Marshal's 48 position on hold for a second and see where we're at within the economy." And as we saw, our 49 entire financial institutions, our businesses, restaurants, and everything, just basically shut down. 50 51 So the need for those annual inspections weren't there. The inspections that we were still 7 1 completing were our state mandated inspections, just because by assembly bills, we are required 2 to report out to each of our elected bodies on what our completion rate of those inspections are. 3 And we've been very fortunate enough that we were still able to complete all of the apartment 4 inspections, school inspections, and so forth, utilizing and relying heavily upon our engine 5 company personnel. And as the economy is now starting to pick back up and businesses are 6 opening up, what we're starting to see is an uptick in the request and services of our Fire 7 Prevention Bureau, which then turns back into myself, needing some help within the Fire 8 Prevention Bureau. Chief Martin explained that he is basically doing the job of two full-time 9 positions, as the Fire Marshal and as the Fire Chief. Trying to balance the needs of the community 10 with plan reviews, state required inspections, managing the inspection program, going out and 11 doing wildfire hazard inspections, and so forth.
12 13 The other component of this position that we're trying to create is the need of a fire investigator. 14 Currently each Fire agency within the county of Marin isn't big enough to maintain their own fire 15 arson investigation team. So what we do is, we collaborate together as a county and do a Fire 16 Investigation Team, similar to a JPA, which we call the MCFIT team, which stands for Marin 17 County Fire Investigation Team. Everything is broken down based on population served by your 18 organization. So the size of Central Marin Fire Authority, which is based on the formula that was 19 calculated by the Fire Chiefs, requires that we provide two qualified, trained fire investigators to 20 that team.
21 22 This is accomplished by having two members of our organization that currently work 24 hour shift 23 schedules, either a fire captain on the fire engine or an engineer on one of our engines, that are on 24 the Fire Investigation Team. However, they're not here 100% of the time. They could be the ones 25 actually fighting a fire or on a medical aid when these needs come up. So one of the benefits of 26 having a full-time fire inspector/investigator, it has someone in-house 40 hours a week that can 27 then be used to investigate any kind of fire cause and origin that happens within our jurisdiction, 28 which is mandated by law. As fire agencies, we're supposed to determine every cause and origin, 29 some are more difficult than others. Some require a lot more intensive training and experience and 30 utilizing the expertise and technical aspects of the entire team. So the goal right now is, one of 31 those investigators that we have on staff now is scheduled to retire at the beginning, or middle, of 32 2022.
33 34 Chief Martin stated that his goal is to try to get this position on-boarded, and get into that position 35 of becoming trained as a fire investigator. So when that person retires, they're able to slide right 36 into the Fire Investigation Team, having some experience, as opposed to getting in there 37 completely green, with no experience whatsoever.
38 39 Chief Martin concluded his presentation.
40 Chair Haroff then called for any questions from the Council. 41 42 Councilmember Ravasio asked if this includes resale inspections, which Larkspur currently does, 43 and Corte Madera will be starting soon. Chief Martin responded that yes, this position will handle 44 resale inspections as required by AB38 which went into effect on July 1, 2021, which requires that, 45 anytime that there is an exchange of real property, the homeowner or the potential buyer is 46 supposed to get disclosure of whether that home is in a very high or high fire hazard severity zone, 47 whether they meet local defensible space regulations, and whether there's any improvements that 48 have been made since 2010 to improve the structure’s ignitability, for example, basic home 49 hardening. He stated that he has been working with staff at Corte Madera on looking at the current 50 municipal code language of the resale inspections and then writing new language, and plans to 51 bring that forward to the Corte Madera Town Council, possibly sometime in September. 8 1
2 Chair Haroff asked a follow-up question regarding record keeping for resales and whether those 3 inspections are kept in the file so that there are adequate disclosures that are made to a potential 4 buyer of a piece of property that that inspection has been conducted and the outcome of those 5 inspections. Chief Martin confirmed records keeping and provided an example from the City of 6 Larkspur, where he works with the billing department at the City of Larkspur and anytime a report 7 is issued, they receive a copy for the property file, so that way the disclosure is in there. And then 8 we also keep those reports within CMFA’s own record management system and databases. 9 10 Following questions from the Council, Chair Haroff called for any questions from the public. 11 No public comments were received from online attendees or via email. 12 13
14 Recording of Votes on the Business Items:
15 16 A. Consideration and Possible Action to Adopt Resolution No. 2021/03 Authorizing the 17 Management Committee to Enter Into a Memorandum of Understanding Between the 18 Central Marin Fire Authority and the Central Marin Firefighters’ Association/IAFF Local 19 1775.
20 Recommendation: that Council discuss and adopt the Resolution as presented, approving 21 the agreement, and authorizing the Management Committee to execute agreement 22 23 MOTION: It was M/S/C (Casissa/Ravasio) to adopt Resolution No. 2021/03, 24 Authorizing the Management Committee to Enter Into a Memorandum of 25 Understanding Between the Central Marin Fire Authority and the Central Marin 26 Firefighters’ Association/IAFF Local 1775.
27 28 Roll call vote: 4-0 in favor of the motion.
29 30
31 B. Consideration and Possible Action to Adopt Resolution No. 2021/04 Approving the 32 Memorandum of Understanding Between Central Marin Fire Authority and the International 33 Association of Firefighters, Local 1775, Battalion Chiefs Association 34 Recommendation: that Council discuss and adopt the Resolution as presented, approving 35 the agreement, and authorizing the Management Committee to execute agreement 36 37 MOTION: It was M/S/C (Ravasio/Casissa) to authorize the Chair to Adopt 38 Resolution No. 2021/04, Approving the Memorandum of Understanding Between 39 Central Marin Fire Authority and the International Association of Firefighters, Local 40 1775, Battalion Chiefs Association
41 42 Roll call vote: 4-0 in favor of the motion.
43 44
45 C. Consideration and Possible Action to Adopt Resolution No. 2021/05 Approving the Fire 46 Management Unit of Employees and Establishing Salaries and Benefits for Members of the 47 Unit for Fiscal Years 2021-2022, 2022-2023 and 2023-2024 48 Recommendation: that Council discuss and adopt the Resolution as presented. 49 50 MOTION: It was M/S/C (Candell/Haroff) to Adopt Resolution No. 2021/05, 51 Approving the Fire Management Unit of Employees and Establishing Salaries and 9 1 Benefits for Members of the Unit for Fiscal Years 2021-2022, 2022-2023 and 2023- 2 2024
3 4 Roll call vote: 4-0 in favor of the motion.
5 6
7 D. Consideration and Possible Action to Adopt Resolution No. 2021/06, Authorizing the 8 Creation for the Position of Fire Inspector and Establishing a Salary Range. 9 Recommendation: that Council discuss and adopt the Resolution as presented 10 11 MOTION: It was M/S/C (Haroff/Candell) to Adopt Resolution No. 2021/06 12 Authorizing the Creation for the Position of Fire Inspector and Establishing a Salary 13 Range.
14 15 Roll call vote: 4-0 in favor of the motion.
16 17
18 E. Consideration and Possible Action to Adopt Resolution No. 2021/07 Approving a Publicly 19 Available Pay Schedule as Required by CalPERS
20 Recommendation: that Council discuss and adopt the Resolution as presented 21 22 MOTION: It was M/S/C (Ravasio/Casissa) to Adopt Resolution No. 2021/07, 23 Approving a Publicly Available Pay Schedule as Required by CalPERS 24 25 Roll call vote: 4-0 in favor of the motion.
26 27
28 F. Consideration and Possible Action to Adopt Resolution No. 2021/08 Approving the Budget 29 Revision to the Insurance Fund In the Amount of $60,579 30 31 Recommendation: that Council discuss and adopt the Resolution approving the budget 32 revision as requested
33 34 MOTION: It was M/S/C (Ravasio/Casissa) to Adopt Resolution No. 2021/08, 35 Approving the Budget Revision to the Insurance Fund In the Amount of $60,579 36 37 Roll call vote: 4-0 in favor of the motion.
38 39
40 G. Consideration And Possible Action to Adopt Resolution No. 2021/09 Authorizing The 41 Executive Manager to Redeem Unused Accrued Vacation Hours Due to COVID-19 42 Response from the Battalion Chief’s Association Members for a Maximum Amount of 43 $36,100
44 Recommendation: that Council discuss and adopt the Resolution as requested 45 46 MOTION: It was M/S/C (Candell/Casissa) to Adopt Resolution No. 2021/09, 47 Authorizing The Executive Manager to Redeem Unused Accrued Vacation Hours 48 Due to COVID-19 Response from the Battalion Chief’s Association Members for a 49 Maximum Amount of $36,100
50 51 Roll call vote: 4-0 in favor of the motion.
10 1
2 VIII. ADJOURNMENT
3 Chair Haroff adjourned the Council meeting at 7:16 p.m. to the next regular meeting scheduled for 4 November 18, 2021.
5 6
7 8 ___________________________
9 Rebecca Vaughn, Authority Clerk
10 Central Marin Fire Council
VII.A.
CENTRAL MARIN FIRE COUNCIL
STAFF REPORT
REPORT DATE: January 6, 2022
MEETING DATE: February 10, 2022
TO: Central Marin Fire Authority Council
FROM: Daria Carrillo, Finance Director
SUBJECT: Central Marin Fire Authority Annual Independent Audit Report for Fiscal Year Ending June 30, 2021
RECOMMENDED ACTION:
That Fire Council accept the following reports prepared by Marcello & Company, Certified Public Accountants:
Independent Auditor’s Report
Basic Financial Statements
Notes and Supplementary Schedules
BACKGROUND:
Marcello & Company, Certified Public Accountants, has prepared the Independent Auditor’s Report and assisted staff with preparing our financial statement for the fiscal year ending June 30 2021.
Based on their examination of the Fire Authority’s records and procedures, they have concluded that the financial statements present fairly, in all material respects, the financial position for the governmental activities, each major fund, and the aggregate remaining fund information of the Central Marin Fire Authority as of June 30, 2021.
Ralph Marcello of Marcello & Company is unable to attend the February 10, 2022 Fire Board meeting and has instead submitted his report as shown in Attachment #2.
The Fire Authority’s net position is negative ($5,547,947), mainly due to actuarially determined liabilities of $10,873,256 for Other Postemployment Benefits (OPEB). This estimate assumes no prefunding of the OPEB liability. A discount rate of 2.23% was used to calculate the liability as the Fire Authority does not have a funding policy in place. The Fire Authority is responsible for retiree health benefits for all employees who retire from the Fire Authority after March 25, 2019. Retirees who retired from either City of Larkspur or Town of Corte Madera prior to the consolidation in VII.A.
March 2019 remain the responsibility of those respective agencies. Because each member agency retained ownership of its fire stations, the Fire Authority does not own any real property, so its long term liabilities (mainly OPEB) exceed its capital assets (vehicles and equipment). Other long term liabilities include $712,598 for a fire engine capital lease and $325,482 for compensated absences.
Please note that the Fire Authority has minimal pension liability of $120. The Fire Authority’s CalPERS retirement plan was established as of March 25, 2019, the date that all Fire Department employees from City of Larkspur and Town of Corte Madera transferred to the Fire Authority. All employee service prior to March 25, 2019 remains with the retirement plans for the City and Town.
The net position has increased from negative ($6,580,520) in the previous year to negative ($5,547,947) as of June 30, 2021, an increase of $1,032,573. The increase in net position includes total governmental fund balance increase of $357,592, as well as the acquisition of capital assets, mainly vehicles, including an ambulance purchased by the Town of Corte Madera and transferred to the Fire Authority in 2020-2021.
Revenue exceeded expenditures in the Fire Authority’s General Fund by $694,329. $654,329 was transferred to the Insurance Fund and $40,000 was transferred to the Equipment Fund. The Insurance Fund, which is funded by the General Fund, is where premiums and claims for the Fire Authority’s workers’ compensation and liability programs is recorded. The Equipment Fund, also funded by the General Fund, was established for purchases and leases of capital equipment.
FISCAL IMPACT:
None.
ENVIRONMENTAL IMPACT:
This activity is not defined as a project under CEQA (Section 15378 CEQA Guidelines).
OPTIONS:
1. Accept the reports prepared by Marcello & Company
2. Take no action at this time and provide further direction to staff ATTACHMENTS:
1. Central Marin Fire Authority Annual Financial Report, Year Ended June 30, 2021, prepared by Marcello & Company, Certified Public Accountants.
2. Report from Ralph Marcello, CPA
THIS ITEM HAS BEEN REVIEWED AND APPROVED BY THE EXECUTIVE MANAGER.
CENTRAL MARIN FIRE AUTHORITY
a Joint Powers Authority
California
____________________________________________
Annual Financial Report
Year Ended
June 30, 2021
2 CENTRAL MARIN FIRE AUTHORITY
Table of Contents
INDEPENDENT AUDITOR’S REPORT.......................................................................................3-4 MANAGEMENT’S DISCUSSION AND ANALYSIS (unaudited)
Required Supplementary Information, as prepared by management ..........................................5-9
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Statement of Net Position............................................................................................................10 Statement of Activities .................................................................................................................11
FUND FINANCIAL STATEMENTS
Governmental Funds
Balance Sheet ............................................................................................................................12 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position........ 13 Statement of Revenue, Expenditures, and Change in Fund Balances ........................................ 14 Reconciliation of the Statement of Revenue, Expenditures, and Change in Fund Balances of Governmental Funds to the Statement of Activities ...................................... 15 Statement of Fiduciary Assets.......................................................................................................16 NOTES TO FINANCIAL STATEMENTS..................................................................................17-34 REQUIRED SUPPLEMENTARY INFORMATION (unaudited)
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan.............................................. 35-36 Other Postemployment Benefits Plan...........................................................................................37 Budgetary Comparison Information........................................................................................ 38-39 3 MARCELLO & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
__________________________________________________________________________ Post Office Box 60127 / Sacramento, California 95860-0127 INDEPENDENT AUDITOR’S REPORT
To the Fire Council
Members of the Authority
Central Marin Fire Authority
Corte Madera, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Central Marin Fire Authority, California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based upon our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
4 Honorable Mayor
Members of the Authority
Central Marin Fire Authority, California
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Central Marin Fire Authority, as of June 30, 2021, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, and the respective budgetary comparison information of the general and major funds as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not 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 historic 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.
Marcello & Company
Certified Public Accountants
Sacramento, California
October 20, 2021
MANAGEMENT’S DISCUSSION & ANALYSIS
As Prepared by Management
(unaudited)
CENTRAL MARIN FIRE AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
5 This is a discussion and analysis of the Central Marin Fire Authority’s financial activities and performance, and provides an overview for the fiscal year ended June 30, 2021. Please review it in conjunction with the basic financial statements, which begins on page 10.
OVERVIEW OF FINANCIAL STATEMENTS
The Authority’s basic financial statements are comprised of three components: Government-wide financial statements, Funds financial statements, and Notes to the financial statements. Required Supplementary Information in addition to the basic financial statements is also presented.
Government-wide Financial Statements (pages 10-11)
The Government-wide financial statements are designed to provide readers with a broad overview of the Authority’s finances in a manner similar to a private-sector business. There are two government-wide financial statements: the Statement of Net Position, and the Statement of Activities.
The Statement of Net Position presents information on all of the Authority’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases and decreases in net assets may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating.
The Statement of Activities presents information showing how the Authority’s net assets changed during the fiscal year. Accruals of revenue and expenses are taken into account regardless of when cash is received or disbursements.
Governmental Fund Financial Statements (pages 12-15)
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities. The major differences between fund financial statements and the government-wide financial statements are in the way debt proceeds, capital outlay, and compensated absences are recorded. Reconciliations between the two types of financial statements are found on pages 13 and 15.
Statement of Fiduciary Assets /Agency Funds (page 16)
Agency funds are used to account for assets held for the benefit of other individuals or entities. The Town’s OPEB trust fund, which is held by an outside trustee, is included on this page.
Notes to the Financial Statements (pages 17-34)
CENTRAL MARIN FIRE AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
6 The notes provide additional information that is essential for a full understanding of the data provided in the financial statements.
Required Supplementary Information (pages 35-39)
In addition to basic financial statements and accompanying notes, this report also presents a budgetary comparison schedule for the primary operating fund of the Authority, the general fund, as well as schedules of changes to the net liability of both the defined benefit pension plan and the OPEB plan.
FINANCIAL HIGHLIGHTS
From the Statement of Net Position and Statement of Activities (pages 10-11) At the end of fiscal year ending June 30, 2021, the Authority’s total net position was a negative ($5,547,947). The negative net position is mainly due to net liabilities in the amount of $10,873,356 for the Other Postemployment Benefits Plan (OPEB). This liability is based on an estimate provided by Bartel Associates. A discount rate of 2.23% was used in the calculation of this liability, as the Fire Authority does not currently have an OPEB funding policy in place. The net position has increased by $1,032,573 as compared with the net position as of June 30, 2020. The statement of net position, appearing as the first statement of the basic financial statements and summarized in Management’s Discussion and Analysis, reports the Authority's total assets to be $2,928,589, an increase of $1,215,198 compared with the previous year. The Authority's capital assets totaled $3,674,095, with accumulated depreciation of $2,576,577, providing $1,097,518 in net capital assets. The Authority’s capital assets are in the form of vehicles and equipment. The Authority does not own any real property. The City of Larkspur and Town of Corte Madera own the Central Marin Fire Authority stations.
The Authority's total program revenue was $11,301,194. Other revenue, including Measure C revenue, totaled $867,846. Total program expenditures were $11,136,467. The overall net position increased by $1,032,573. Total expenditures includes $171,927 for depreciation and $402,529 for insurance claims and premiums recorded in the Insurance Fund. The Authority's long-term debt and obligations totaled $12,624,975. The estimated OPEB liability of $10,873,556 is included in this total, as well as $713,419 for estimated insurance claims, $712,598 for a fire engine lease and $325,482 for compensated absences.
From the Governmental Fund Financial Statements (pages 13-15)
CENTRAL MARIN FIRE AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
7 Total revenue was $12,169,040. This includes $9,579,594 in member contributions, $1,348,283 in state revenue to reimburse the Authority for out-of-county disaster response, $737,575 in Measure C Wildfire Tax, a grant in the amount of $66,750 to purchase CPR machines, grants from Fire Safe Marin in the amount of $203,792, $118,689 in permits and fees, and $11,582 in miscellaneous revenue.
Total general fund revenue exceeded total general fund expenditures by $694,329 before $654,329 was transferred to the Authority’s Insurance Fund for the purpose of funding the claims reserve and $40,000 was transferred to the Equipment Fund for the future purchase of a specialized washing machine.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Position
The Statement of Net Position is summarized on page 10 of this report.
The Authority’s net position indicates that liabilities exceed assets by $5,547,947 as of June 30, 2021 (page 10). This is due largely to the implementation of Governmental Accounting Standards Board Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (GASB 75) which requires that net OPEB liabilities be included in the government-wide statements. As of March 25, 2019, the date that Fire Authority employees from the City of Larkspur and the Town of Corte Madera were transferred to the Central Marin Fire Authority, the Fire Authority took over responsibility for providing OPEB benefits to employees who retire from the Authority. The level of benefits is based upon hire date. Employees who retired from the City of Larkpur or the Town of Corte Madera, prior to March 25, 2019, remain the responsibility of their respective employers.
An actuarial valuation was prepared by Bartel Associates to determine OPEB liability. This actuarial valuation was in accordance with GASB 75. A discount rate of 2.23% was used due to the Fire Authority not having an OPEB funding policy in place. The actuarial report will be presented to the Fire Council at a future meeting for consideration of a funding policy.
In addition to GASB 75, Governmental Accounting Standards Board Statement No. 68 Accounting and Financial Reporting for Pensions (GASB 68) is also in effect and requires the reporting of the net pension liability. As Central Marin Fire Authority is a new entity as of March 25, 2019 with a new CalPERS retirement plan, unfunded liability is an immaterial amount. Bartel Associates determined the net pension liability to be $120. Pension liability for service prior to March 25, 2019 remains the responsibility of the City of Larkspur and the Town of Corte Madera.
CENTRAL MARIN FIRE AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
8 In addition to the OPEB liability, which accounts for the vast majority of the total $12,737,582 liabilities, other liabilities include a workers compensation claim liability based on an actuarial report, and employee compensated absences. Also included in this total is a current liability of $360,699, which includes $112,607 services and supplies purchased prior to June 30, 2021 but not paid for until after the end of the fiscal year and $248,092 in short term insurance claims.
Total assets were $2,928,595 at fiscal year end. Of this total, $1,810,116 consists of capital assets net of depreciation. As noted above, the Authority’s capital assets consist of vehicles and equipment. The Authority does not own any real property.
Other assets include cash of $795,637 and receivables of $322,836 as of June 30, 2021.
Statement of Activities
The Statement of Activities is summarized on page 11. Personnel costs account for approximately 67% of total expenditures. This includes salaries, benefits, and retirement. Services, supplies, the dispatch contract with the County, and other contract services total approximately 18% of total expenditures.
Included in this 18% are items such as utilities, training, vehicle and equipment maintenance, memberships in various Joint Powers Authorities and other services and supplies, including services and supplies related to vegetation management paid from Measure C funds. Expenditures related to Property, Liability and Workers’ Compensation insurance accounts for approximately 4% of total expenditures.
Insurance related expenditures include premiums and claims. Equipment, including a fire engine lease, accounts for 9% of expenditures. The remaining 2% of expenditures is depreciation expense.
FUNDS FINANCIAL STATEMENTS
Government Funds
There were five active funds for the Authority during the 2020-2021 fiscal year: the General Fund, the Insurance Fund, the Equipment Fund, the Measure C Wildfire Tax Fund, and the Measure F Fund.
The General Fund is the primary operating fund of the Authority, and is used to record the day to day operations.
The Insurance Fund is used to record revenue and expenditures related to the Authority’s payments to its liability and workers’ compensation self-insurance programs. The revenue source is primarily a transfer in from the General Fund.
CENTRAL MARIN FIRE AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEAR ENDED JUNE 30, 2021
9 The Equipment Fund is used for revenue and expenditures related to the replacement of capital equipment. The fund is expected to be funded primarily from the General Fund and from intergovernmental grants that the Authority receives.
The Measure C Wildfire Tax Fund is used to record the Wildfire JPA tax revenue received and the expenditures paid with this tax. Also included is the Town of Corte Madera’s additional contribution so that both agencies’ contributions are equal.
The Measure F Fund was established to account for revenue transferred from the Town of Corte Madera’s Measure F Sales Tax Fund. Central Marin Fire Authority performed disaster preparedness work on behalf of the Town of Corte Madera using this revenue.
A summary of fund activity, as well as the reconciliation to the government-wide financial statements, can be found on pages 12 to 15.
HISTORY AND ECONOMIC FACTORS
The Central Marin Fire Authority is a Joint Powers Authority formed in 2018 by the City of Larkspur and the Town of Corte Madera. The governing board is the Fire Council which consists of two Councilmembers from the City of Larkspur and two Councilmembers from the Town of Corte Madera.
One of the four Fire Councilmembers is selected as Authority Chair. The Town Manager of the Town of Corte Madera serves as Executive Officer. The Fire Chief is responsible for the day to day operations of the organization. Please see Note 1 on page 18 for more information regarding formation of the Central Marin Fire Authority reporting entity.
The Authority is dependent upon funding from each of its member agencies. Each agency is responsible for providing 50% of the Authority’s annual budgeted expenditures.
Staff prepares the annual budget in concert with the Executive Manager. The budget is adopted in June of each year.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the Authority’s finances for all interested parties. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Fire Chief, Central Marin Fire Authority, 342 Tamalpais Drive, Corte Madera, California 94925.
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Governmental
Activities
Current Assets:
Cash and investments $ 795,637
Receivables 322,836
Total current assets 1,118,473
Noncurrent Assets:
Capital assets, net of depreciation 1,810,116
Total Assets 2,928,589
Deferred Outflows of Resources:
Deferred outflows of pension resources 1,922,703
Deferred outflows of OPEB resources 2,339,810
Total Assets and Deferred Outflows 7,191,102
Current Liabilities:
Payables 112,607
Claims payable 248,092
Total current liabilities 360,699
Noncurrent Liabilities:
Claims payable, due after one year 465,327
Long-term obligations due within one year 134,757
Long term obligations due after one year 11,776,799
Total noncurrent liabilities 12,376,883
Total Liabilities 12,737,582
Deferred Inflows of Resources:
Deferred inflows of pension resources 1,162
Deferred inflows of OPEB resources 305
Total Liabilities and Deferred Inflows 12,739,049
NET POSITION
Net investment in capital assets 1,097,518
Restricted 69,148
Unrestricted (6,714,613)
Total Net Position $ (5,547,947)
The accompanying notes to financial statements are an integral part of this financial statement
CENTRAL MARIN FIRE AUTHORITY
Government-wide Financial Statements
Statement of Net Position
June 30, 2021
LIABILITIES
ASSETS
10 Governmental
Activities
Program Expenses
Personnel $ 7,503,061
Outside services 1,427,898
Training and education 14,373
Dues and subscriptions 8,166
Equipment maintenance 40,079
Building maintenance 9,528
Vehicle maintenance 99,398
Utilities 71,355
Supplies 304,680
Equipment 1,083,473
Insurance claims 402,529
Depreciation 171,927
Total program expenses 11,136,467
Program Revenue
Charge for services 9,579,594
Operating grants and contributions 1,348,283
Capital grants and contributions 373,317
Total program revenue 11,301,194
Net revenue over (under) expenses 164,727
General Revenue (Expenses)
Property tax revenue 737,575
Permits and fees 118,689
Other revenue 11,582
Transfers in 694,329
Transfers (out) (694,329)
Net general revenue (expenses) 867,846
Change in Net Position 1,032,573
Net Position - beginning (6,580,520)
Net Position - end of year $ (5,547,947)
The accompanying notes to financial statements are an integral part of this financial statement
CENTRAL MARIN FIRE AUTHORITY
Year Ended June 30, 2021
Government-wide Financial Statements
Statement of Activities
11 FUND FINANCIAL STATEMENTS
Total
General Insurance Equipment Measure C Measure F
Fund Fund Fund Fund Fund Funds
Cash and
investments $ - $ 743,456 $ 173,313 $ 54,605 $ 588 $ 971,962 291,587 - - 31,249 - 322,836
Total assets $ 291,587 $ 743,456 $ 173,313 $ 85,854 $ 588 $ 1,294,798 $ 88,179 $ 7,134 $ - $ 17,294 $ - $ 112,607
Cash overdraft 176,325 - - - - 176,325
- 713,419 - - - 713,419
Total liabilities 264,504 720,553 - 17,294 - 1,002,351
Nonspendable - - - - - -
Restricted - - - 68,560 588 69,148
Committed - - - - - -
Assigned - 22,903 173,313 - - 196,216
Unassigned 27,083 - - - - 27,083
Total fund
balances 27,083 22,903 173,313 68,560 588 292,447
Total liabilities and
fund balances $ 291,587 $ 743,456 $ 173,313 $ 85,854 $ 588 $ 1,294,798 The accompanying notes to financial statements are an integral part of this financial statement
CENTRAL MARIN FIRE AUTHORITY
Balance Sheet
Governmental Funds
June 30, 2021
Payables
FUND BALANCES
LIABILITIES
ASSETS
Claims payable
Receivables
Governmental
12 $ 292,447
resources and therefore, are not reported in the funds balance sheet. 1,810,116 1,922,703
2,339,810
Compensated absences (325,482)
Capital lease purchase obligation (712,598)
Net pension liability (120)
Net other postemployment benefits liability (10,873,356) (1,162)
(305)
$ (5,547,947)
financial statements but are recognized in the government-wide financial statements:
Pension obligation resources
OPEB obligation resources
Net Position of Governmental Activities
The accompanying notes to financial statements are an integral part of this financial statement
CENTRAL MARIN FIRE AUTHORITY
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
Total Fund Balances - Governmental Funds
June 30, 2021
(3) Long-term debt and obligations are not due and payable in the current period and therefore are not reported in the funds balance sheet:
(4) Deferred inflows of resources are not recognized as revenue in the funds (1) Capital asset acquisitions, dispositions and depreciation, are not current financial (2) Deferred outflows of resources are not recognized as expenditures in the funds financial statements but are recognized in the government-wide financial statements:
OPEB obligation resources
Pension obligation resources
13 Total
General Insurance Equipment Measure C Measure F
Fund Fund Fund Fund Fund Funds
$ 9,341,198 $ - $ - $ 88,396 $ 150,000 $ 9,579,594
1,348,283 - - - - 1,348,283
Local agencies revenue 102,595 - 66,750 - - 169,345
Grant revenue 203,972 - - - - 203,972
Property tax - - - 737,575 - 737,575
118,689 - - - - 118,689
11,582 - - - - 11,582
Totals 11,126,319 - 66,750 825,971 150,000 12,169,040
Personnel 9,182,495 - - 180,841 - 9,363,336
Outside services 728,498 - - 549,988 149,412 1,427,898
Training and education 14,373 - - - - 14,373
Dues and subscriptions 8,166 - - - - 8,166
Equipment maintenance 40,079 - - - - 40,079
Building maintenance 9,528 - - - - 9,528
Vehicle maintenance 99,398 - - - - 99,398
Utilities 71,355 - - - - 71,355
Supplies 278,098 - - 26,582 - 304,680
Equipment - - 70,106 - - 70,106
Insurance claims - 402,529 - - - 402,529
Totals 10,431,990 402,529 70,106 757,411 149,412 11,811,448 Excess Revenue over
Expenditures 694,329 (402,529) (3,356) 68,560 588 357,592 Transfers in - 654,329 40,000 - - 694,329
Transfers (out) (694,329) - - - - (694,329)
Totals (694,329) 654,329 40,000 - - -
-
- 251,800 36,644 68,560 588 357,592
Fund Balances - beginning 27,083 (228,897) 136,669 - - (65,145) Fund Balances - end of year $ 27,083 $ 22,903 $ 173,313 $ 68,560 $ 588 $ 292,447 The accompanying notes to financial statements are an integral part of this financial statement
EXPENDITURES
Other Financing Sources
Change in Fund Balances
Other revenue
CENTRAL MARIN FIRE AUTHORITY
Governmental Funds
Year Ended June 30, 2021
State revenue
Permits and fees
Member contributions
Statement of Revenue, Expenditures, and Change in Fund Balances Governmental
REVENUE
14 $ 357,592
Amounts reported for governmental activities in the statement of activities are different because:
1,063,048
(171,927)
Measurement focus
(3) Certain expenses reported in the statement of activities do not require the use of current financial resources and therefore, are not reported as expenditures in governmental funds:
Change in compensated absences expense liability (34,408) Change in Capital lease purchase obligation 712,598
Change in net pension plan expense liability and deferrals, net (120) Change in net OPEB plan expense liability and deferrals (2,959,356) Change in Net Position - Governmental Activities $ (1,032,573) The accompanying notes to financial statements are an integral part of this financial statement (1) The acquisition of capital assets uses current financial resources but has no effect on net position.
(2) The cost of capital assets is allocated over their estimated useful lives and and reported as depreciation expense in the statement of activities.
CENTRAL MARIN FIRE AUTHORITY
Change in Fund Balances - Governmental Funds
Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2021
Reconciliation of the Statement of Revenue, Expenditures, and Change in Capital Assets
15 OPEB
Prefunding
and Stabilization
Trust
$ 59,564
The accompanying notes to financial statements are an integral part of this financial statement ASSETS
Cash with trustee
CENTRAL MARIN FIRE AUTHORITY
Statement of Fiduciary Assets
Agency Funds
Year Ended June 30, 2021
16 CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
17 The notes to the financial statements include a summary of significant accounting policies and other notes considered essential to fully disclose and fairly present the transactions and financial position of the Authority as follows:
Note 1 - Defining the Reporting Entity
Note 2 - Summary of Significant Accounting Policies
Note 3 - Stewardship, Compliance and Accountability
Note 4 - Cash and Investments
Note 5 - Receivables
Note 6 - Capital Assets
Note 7 - Payables
Note 8 - Long-term Obligations
Note 9 - Other Postemployment Benefits Plan
Note 10 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Note 11 - Deferred Compensation Plan
Note 12 - Risk Management
Note 13 - Subsequent Events
Note 14 - New Pronouncements
Note 15 - Fund Balance Designations Section of the Balance Sheet
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
18 Note 1 - Defining the Reporting Entity
The Town of Corte Madera (Town) and the City of Larkspur (City) began implementing shared services agreements between their respective fire departments in 2012. These agreements, which included sharing a single command staff and cross-staffing fire stations, resulted in two legally distinct departments functioning as one operation. The two fire departments have operated under one Fire Chief since 2016.
In 2016, the Town and the City initiated a formal process to study the possibility of consolidating their fire protection and prevention services within a joint powers authority (JPA). This process involved councilmembers as well as management and labor from both agencies. In 2017, all of the parties involved recommended the formation of a Joint Powers Authority (JPA). Following this recommendation, Central Marin Fire Authority (the Authority) was formed in August 2017, with the intention for staff to resolve various administrative matters so that all fire department personnel from both agencies could transfer to the new agency as of January 1, 2018.
The January 1, 2018 effective date was delayed due to issues regarding the retirement contract with the California Public Employees Retirement System (CalPERS), resulting in employees continuing to be paid by the Town and the City while Central Marin Fire Authority operated as a single agency. The Town of Corte Madera and the City of Larkspur shared all costs equally. CalPERS approved the contract in March 2019 and all fire department employees transferred to the new agency as of March 25, 2019.
Prior to the consolidation, Town of Corte Madera fire department employees enrolled in the classic CalPERS safety plan were enrolled in the 3% at 50 plan while City of Larkspur fire department employees enrolled in the classic CalPERS plan were enrolled in the 3% at 55 plan. After consolidation, all classic employees were enrolled in the 3% at 55 plan, resulting in significant pension savings. The Town of Corte Madera and City of Larkspur each retain pension liability for service incurred prior to March 25, 2019.
The Larkspur and Corte Madera each retain ownership of their fire station real estate, while all other assets were transferred to the new agency. All operating costs, including salaries, are shared equally by the two agencies.
Note 2 - Summary of Significant Accounting Policies
The accounting policies of the Authority conform to accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the Authority are described as follows:
Financial Statements
The Authority’s basic financial statements consist of the following:
• Government-wide financial statements
• Fund financial statements
• Notes to the financial statements
The government-wide financial statements (ie, the statement of net position and the statement of activities) report information on all of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities are normally supported by
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
19 taxes and intergovernmental revenue. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenue. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenue includes (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment taxes.
Separate fund financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements.
Fund Accounting
The accounts of the Authority are organized on the basis of funds, each of which is considered a separate entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenue, and expenditures. Government 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. The funds are organized as follows:
Governmental Funds
• The General Fund is the Authority’s primary operating fund. It is used to account for all financial resources except those required to be accounted for in another fund. • Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts or major capital projects) that are legally restricted to expenditures for specific purposes.
• Capital Projects Funds are used to account for revenue and expenditures restricted to the acquisition or construction of major capital facilities. • Debt Service Funds are used to account for the accumulation of resources for, and the payment of, governmental fund long-term debt, both principal and interest. • Fiduciary Fund Types are used to account for assets held by the Authority as a trustee or agent for individuals, private organizations, and other units of governments.
Basis of Accounting and Measurement Focus
Basis of accounting refers to when revenue and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of measurement made, regardless of the measurement focus applied.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenue is recorded when earned and expenses are recorded when a liability is incurred regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met.
In the fund financial statements, all Governmental Funds are accounted for using the modified accrual basis of accounting. Revenue is recognized when it becomes both measurable and available to finance the expenditures of the current period (susceptible to accrual). Major revenue sources susceptible to accrual include taxpayer-assessed taxes, interest, special assessments levied, state and federal grants, and charges for current services. Revenue from licenses, permits, fines and forfeits is recorded as received. Expenditures are recorded when the related fund liability is incurred.
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
20 All Governmental Funds are accounted for using a current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets.
Their reported fund balance is considered a measure of “available spendable resources.” Governmental Fund operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of “available spendable resources” during a period.
The government-wide financial statement is accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their statement of net position.
Cash and Investments
Deposits in financial institutions, money market funds, and the State Treasurer’s investment pool are reported as cash and investments since funds can spend cash at any time without prior notice or penalty.
Investments are stated at fair value.
Restricted Assets
When applicable, certain cash and investments of the Authority are classified as restricted because their uses are limited by revenue sources. When an expense is incurred for purposes for which there are both restricted and unrestricted cash assets available, restricted cash is used first, then unrestricted cash as it is needed.
Use of Estimates
Financial statement preparation in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures/expenses during the reporting period.
Actual results could differ from those estimates.
Receivables and Payables
Receivables related to the current fiscal year are accrued as revenue and accounts receivable, and are considered available if received within 60 days of fiscal year end. Federal and State grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government-wide statement of net position. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and available. The Authority considers these taxes available if they are received during the period when settlement of prior fiscal year accounts payable and payroll charges normally occur. Grants, entitlements or shared revenue are recorded as receivables and revenue in the general, special revenue, and capital projects funds when they are received or susceptible to accrual.
Allowance for Doubtful Accounts
Management has elected to record bad debts using the direct write-off method. Accounting principles generally accepted in the United States of America require that the allowance method be used to reflect bad debts. However, the effect of the use of the direct write-off method is not materially different from the results that would have been obtained had the allowance method been followed.
Capital Assets
Capital assets are reported in the government-wide statement of net position. Capital assets are stated at historical cost, when available and at estimated replacement cost when original cost was not available.
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
21 Donated assets are stated at estimated market value at date of donation. The Authority’s policy is to capitalize all capital assets with costs exceeding a minimum threshold of $25,000. Depreciation is recorded using the straight-line method over the estimated useful lives of the assets, which range from 5 to 15 years.
Compensated Absences
Compensated absences represent the vested portion of accumulated vacation and sick leave. The Authority’s method of calculating the liability is in accordance with GASB Statement No. 16, except that additional accruals for salary-related payments associated with the payment of compensated absences, for example, the employer’s share of pension contributions, social security and medicare taxes, have not been accrued as that amount is not considered significant or material to the financial statements taken as a whole.
Long-term Obligations
In the government-wide financial statements, long-term debt and obligations are reported as liabilities in the statement of net position.
Pension Plan
In government-wide financial statements, retirement plans are recognized and disclosed using the accrual basis of accounting, regardless of the amount recognized as pension expenditures on the governmental fund statements, which use the modified accrual basis of accounting. The Authority recognizes a net pension liability, which represents the Authority’s proportionate share of the excess of the total pension liability over the fiduciary net position (plan assets owned) of the pension reflected in the actuarial report provided by the California Public Employees Retirement System (CalPERS).
Changes in the net pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change.
The changes in net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective pension plan and are recorded as a component of pension expense beginning with the period in which they are incurred.
Other Postemployment Benefits Plan (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Authority’s Retiree Benefits Plan (“OPEB Plan”) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments, which are reported at amortized cost.
Major Funds
The Authority’s considers all its funds as Major Funds for financial statement presentation purposes in the Governmental Funds financial statements.
Net Position and Fund Balances
The government-wide financial statements utilize a net position presentation. Net position represents the difference between assets plus deferred outflow of resources, as compared to liabilities plus deferred inflow of resources, and is displayed in the following three components:
Net Investment in Capital Assets - this component groups all capital assets, reduced by
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
22 accumulated depreciation, and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of the assets. Restricted Net Position - this component represents net position that is subject to constraints either (1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position - this component represents net position of the Authority that is not restricted for any other purpose.
When both restricted and unrestricted net position is available, restricted resources are used first, then unrestricted resources as they are needed.
Governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned, based primarily on the extent to which the Authority is bound to honor constraints on how specific amounts can be spent and are described as follows:
• Nonspendable Fund Balances - amounts that cannot be spent because they are either (a) legally or contractually required to be maintained intact or (b) not in spendable form such as long-term notes receivable.
• Restricted Fund Balances - amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. • Committed Fund Balances - amounts that can be used only for the specific purposes determined by a formal action of the Central Marin Fire Authority Council (the Council), to establish, modify or rescind a fund balance commitment.
• Assigned Fund Balances - amounts that are constrained by the government’s intent to be used for specific purposes but do not meet the criteria to be classified as restricted or committed, as determined by a formal action or policy of the Council or its appointed official. • Unassigned Fund Balances - the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications.
When expenditures are incurred for purposes for which both restricted and unrestricted amounts are available, it is the Authority’s policy to expend restricted fund balances first. When expenditures are incurred for purposes for which committed, assigned, or unassigned amounts are available, it is the Authority’s policy to expend committed, then assigned, then unassigned amounts in that order.
Note 3 - Stewardship, Compliance and Accountability
Budgetary Information
The Authority follows these procedures annually in establishing the budgetary data reflected in the financial statements:
1. Management submits to the Council a proposed draft budget for the fiscal year commencing the following July 1. The budget includes proposed expenditures and the means of financing them.
2. The Council reviews the proposed budget at special scheduled sessions which are open to the
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
23 public. The Council also conducts a public hearing on the proposed budget to obtain comments from interested persons.
3. Prior to July 1, the budget is adopted through the passage of a resolution.
4. From the effective date of the budget, which is adopted and controlled at the department level, the amounts stated therein as proposed expenditures become appropriations to the various Authority departments. The Council may amend the budget by resolution during the fiscal year. Management authorizes transfers from one object or purpose to another within the same department, and between departments within the General Fund. All appropriations lapse at year end.
Economic Dependency
The Authority receives the majority of its total general fund revenue from its two members. Any reduction in the members’ ability to fund the Authority’s annual budget requirements could impair the Authority’s ability to fund its own operating budget.
Revenue Limitations Imposed By California Proposition 218 Proposition 218, which was approved by the voters in November 1996, regulates the Authority’s ability to impose, increase, and extend taxes, assessments, and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in future years by the voters.
Accounts and Records
Records of the Authority are maintained in Corte Madera, California. These records include cash receipts and disbursements journals, a general ledger, complete minutes of Council meetings, Resolutions, Ordinances and files of supporting documents. Investment funds of the Authority are on deposit with the State of California’s investment pool.
Note 4 - Cash and Investments
Cash and investments at fiscal year end are classified in the accompanying financial statements as follows:
Statement of Net Position
Cash and investments $ 795,637
Cash and investments are comprised of the following:
On deposit with checking accounts and the
California State investment fund,
pooled with the Town of Corte Madera $ 795,637
Investments Authorized by the Authority’s Investment Policy The Authority does not have a specific investment policy but follows the guidelines of the Town of Corte Madera’s Investment Policy. All funds invested are managed to meet the guidelines stated in both California Code Section 53600, et. seq. and the Town’s investment policy.
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
24 Note 5 - Receivables
Receivables at year end consist of the following:
Fire Safe Marin $ 276,757
Plan check fees 5,384
Property tax revenue 31,249
Insurance 8,744
Other 702
$ 322,836
Note 6 - Capital Assets
Capital assets activity for the year consists of the following:
Note 7 - Payables
Payables at year end consist of the following:
Contract services $ 64,896
Supplies 15,854
Utilities & telephone 3,002
Personnel costs 11,655
Equipment maintenance 638
Building maintenance 2,192
Vehicles maintenance 14,370
$ 112,607
Beginning Additions/ Retirements/ Ending
Depreciable Assets Balance Completions Adjustments Balance Vehicles & equipment $ 3,759,638 $ 300,769 $ (386,312) $ 3,674,095 Engine pending delivery - 712,598 - 712,598
3,759,638 1,013,367 (386,312) 4,386,693
Accumulated depreciation (2,790,962) (171,927) 386,312 (2,576,577) Net capital assets $ 968,676 $ 841,440 $ - $ 1,810,116
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
25 Note 8 - Long-term Obligations
Long-term debt and obligation activity for the year was as follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Compensated absences $ 291,074 $ 34,408 $ - $ 325,482 $ 32,548 Capital Lease - 712,598 - 712,598 102,209
Net pension liability - 1,235,000 (1,234,880) 120 -
Net OPEB liability 7,914,000 2,959,356 - 10,873,356 -
subtotal 8,205,074 4,941,362 (1,234,880) 11,911,556 134,757 Claims payable 379,521 333,898 - 713,419 248,092
$ 8,584,595 $ 5,275,260 $ (1,234,880) $ 12,624,975 $ 382,849 Compensated Absences
The accrued compensated absences amounts will be paid from available resources and are classified as current or noncurrent, based upon expected payment dates.
Workers Compensation Claims Payable
The accrued claims payable are based upon an actuarial review of the program’s discounted and undiscounted liability for outstanding claims. The claims are classified as current or noncurrent, based upon expected payment dates, and will be paid from available resources.
Fire Engine Equipment Loan
Lease-Purchase agreement dated January 4, 2021 for the purchase of one Pierce Enforcer Custom Pumper, principal and interest payable at $153,314 annually for five years, with a net effective interest rate of 2.48% per annum.
Future payment requirements consist of the following:
Year Ending
June 30, Principal Interest Total
2022 $ 135,613 $ 17,701 $ 153,314
2023 138,982 14,332 153,314
2024 142,434 10,880 153,314
2025 145,972 7,342 153,314
2026 149,597 3,716 153,313
$ 712,598 $ 53,971 $ 766,569
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
26 Note 9 - Other Postemployment Benefits Plan
Overview of the Plan
Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pension (GASB 75), requires public employers to comply with certain accounting and financial reporting standards. Under GASB 75, employers that participate in an OPEB plan administered as a trust or equivalent arrangement are required to record their portion of the net OPEB liability, OPEB expense, and deferred outflows/deferred inflows of resources related to OPEB plans in their financial statements as part of their financial position. Net OPEB liability is the plan’s total OPEB liability less the plan’s fiduciary net position (assets owned). This may be a net OPEB asset when the Plan’s fiduciary net position exceeds its total OPEB liability. OPEB expense is the change in net OPEB liability from the previous reporting period to the current reporting period less adjustments. This may be a negative expense (OPEB income), which should be reported as a credit in OPEB expense.
Deferred outflows of resources and deferred inflows of resources related to OPEB plans are certain changes in total OPEB liability and fiduciary net position that are to be recognized in future OPEB expense.
Plan Description and Eligibility
The Authority provides retiree medical benefits to employees who retire directly from the Authority and are eligible for a CalPERS pension. The amount and type of benefit is contingent upon date of hire.
California Public Employees Retirement System Trust
In fiscal year 2019-20, the Authority began prefunding its OPEB obligation through the use of an irrevocable trust established with the California Employers’ Retiree Benefit Trust Fund (CERBT). This trust fund is an agent multiple-employer plan which is administered by the CalPERS Board of Administration.
Contributions
The obligation of the Authority to contribute to the Plan is established and may be amended by the Authority Council. The trust fund is used to accumulate and invest funds necessary to pay for future retiree benefits. Authority employees contribute to the trust through payroll deduction withholdings.
Actuarial Methods and Assumptions
The June 30, 2019 valuation was used to determine total OPEB liability, based on the following actuarial methods and assumptions:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period June 30, 2019 to June 30, 2020
Actuarial Assumptions:
Actuarial Cost Method Entry Age Normal
Implied Subsidy Employer cost for allowing retirees to participate in the medical plans at active rates.
Implied subsidy included.
Discount Rate 2.23%
General Inflation 2.75%
Salary Increases Aggregate - 3.00% annually
Merit - CalPERS 1997-2015 Experience Study
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
27 Medical Trend Non-Medicare - 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076.
Medicare - 6.3% for 2021, decreasing to an
ultimate rate of 4.0% in 2076.
PEMHCA Minimum Increase 4.25% annually
Participation at Retirement Tier 1 Actives: 100%
Tier 2 Actives: 70%
Mortality Factors CalPERS 1997-2015 Experience Study
Mortality Improvement Mortality projected fully generational with Scale MP-2018 Funded Status
Total OPEB Plan Liability $ 10,907,325
Plan Fiduciary Net Position 33,969
Net OPEB Plan Liability 10,873,356
OPEB plan expense for the fiscal year $ 1,029,414
Discount Rate
The discount rate used to measure the total OPEB liability was 2.23% which the Actuary has determined is a reasonable long-term assumption of the Authority’s expected return on its investments. The bestestimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the Authority calculated using the discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate. The impact of a 1% increase or decrease in these assumptions is shown in the chart below:
Discount Rate -1% Current Rate Discount Rate +1%
1.23% 2.23% 3.23%
Net OPEB liability / (asset) $ 13,296,552 $ 10,873,356 $ 9,025,628 Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate The following presents the net OPEB liability calculated using the Healthcare Cost Trend discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate. The impact of a 1% increase or decrease in these assumptions is shown in the chart below:
1% Decrease Current Trend 1% Increase
Net OPEB liability / (asset) $ 8,598,071 $ 10,873,356 $ 13,964,589 Deferred Outflows/Inflows of Resources Related to OPEB
At June 30, 2021, the Authority reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
28 Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the measurement date $ 22,563 $ - Differences between projected and actual experience - - Changes of assumptions 2,317,247 -
Net difference between projected and actual earnings
of OPEB Plan investments - 305
Totals $ 2,339,810 $ 305
The Authority will recognize the Deferred Contributions in the next fiscal year. In addition, future recognition of these deferred resources is shown below:
Year Ending June 30:
2022 $ 197,466
2023 197,466
2024 197,466
2025 197,465
2026 197,542
Thereafter 1,329,537
Note 10 - Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Overview of the Plan
Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68), requires public employers to comply with certain accounting and financial reporting standards. GASB 68 outlines a different approach to the recognition and calculation of pension obligations. Under GASB 68, employers that participate in a defined benefit pension plan administered as a trust or equivalent arrangement are required to record their portion of the net pension liability, pension expense, and deferred outflows/deferred inflows of resources related to pensions in their financial statements as part of their financial position. Net pension liability is the plan’s total pension liability based on the entry age normal actuarial cost method less the plan’s fiduciary net position (assets owned). This may be a net pension asset when the Plan’s fiduciary net position exceeds its total pension liability. Pension expense is the change in net pension liability from the previous reporting period to the current reporting period less adjustments. This may be a negative expense (pension income), which should be reported as a credit in pension expense. Deferred outflows of resources and deferred inflows of resources related to pensions are certain changes in total pension liability and fiduciary net position that are to be recognized in future pension expense.
Summary of Significant Accounting Policies
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
29 recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
General Information about the Pension Plan
The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the Plan’s June 30, 2019 Annual Actuarial Valuation Report (funding valuation). Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website: https://www.calpers.ca.gov Contribution Description
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2018 valuation was rolled forward to determine the June 30, 2019 total pension liability, based on the following actuarial methods and assumptions:
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Valuation Date June 30, 2019
Actuarial Assumptions:
Actuarial Cost Method Entry Age Normal Cost
Amortization Method Straight-line amortization over 5-year period Discount Rate 7.15%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table Derived using Membership Data
Investment Rate of Return 7.00%, net of investment expense Post Retirement Benefit Increase Contract COLA up to 2.50% Funded Status
Total Pension Plan Liability $ 518,221
Plan Fiduciary Net Position (assets owned) 518,101
Net Pension Plan Liability 120
Pension plan expense for the fiscal year $ 345,881
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
30 Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees’ Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS website under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund.
The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
Asset Class
Target
Allocation
Global Equity 50.00%
Fixed Income 28.00%
Private Equity 8.00%
Real Assets 13.00%
Liquid Assets 1.00%
100.00%
Subsequent Events
There were no subsequent events that would materially affect the results presented in this disclosure.
Amortization of Deferred Outflows and Deferred Inflows of Resources Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
31 The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.
The amortization period differs depending on the source of the gain or loss, as follows:
• Net Difference between projected and actual earnings on pension plan investments: 5 year straight-line amortization.
• All Other Amounts: Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Town’s proportionate share of the unfunded net pension liability calculated using the discount rate that is 1 percentage point lower or 1 percentage point higher than the current rate:
Discount Rate -1% Current Rate Discount Rate +1%
6.15% 7.15% 8.15%
Net Pension Liability $ 70,455 $ 120 $ (57,608)
Deferred Outflows/Inflows of Resources Related to Pensions The Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 42 $ (6) Changes of assumptions 3 -
Differences between projected and actual investment earnings - (6) Change in employer's proportion - (1,150)
Differences between employer's share of contributions 890,236 - Pension contributions subsequent to the measurement date 1,032,422 - Totals $ 1,922,703 $ (1,162)
Recognition of Deferred Outflows and Inflows of Resources in Future Pension Expense as follows:
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
32 Fiscal Year Ending June 30:
2022 $ 317,545
2023 317,544
2024 254,033
2025 (3)
2026 -
Thereafter -
Note 11 - Deferred Compensation Plan
The Authority contracts with the ICMA Retirement Corporation, and with CalPERS, to provide deferred compensation plans. Employees may defer up to the IRS established limits each year through payroll deductions. For employees in the management unit only, there is a mandatory 1% of salary contribution and a 1% of salary employer match to the employee’s choice of the two plans. The plan is in conformity with Section 457 of the Internal Revenue Code.
Note 12 - Risk Management
The Authority is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters. The Authority is a member of the Bay Cities Joint Powers Insurance Authority (BCJPIA), an established public entity risk pool that operates as a common risk management and insurance program for government members. The Authority pays an annual premium to the pool for property and general coverage, and for workers compensation insurance. Risk of loss is retained for general liability claims. The agreement with the risk pool provides that it will be self-sustaining through member premiums and additional policies purchased from commercial insurance companies for general liability claims, and for excess workers’ compensation claims.
BCJPIA was created as a California Public Agency by an agreement between certain public agencies in the San Francisco Bay Area to provide workers’ compensation coverage. BCJPIA is governed by a Board of Directors which is comprised of officials appointed by each member town, city or agency.
Financial statements may be obtained from BCJPIA, 1750 Creekside Oaks Drive, Suite 200, Sacramento, California 95833.
Note 13 - Subsequent Events
The management of the Authority has reviewed the results of operations for the period from its year end June 30, 2021 through October 22, 2021, the date the draft financial statements were available to be issued, and have determined that no adjustments are necessary to the amounts reported in the accompanying financial statements nor have any subsequent events occurred, the nature of which would require disclosure.
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
33 Note 14 - New Pronouncements
The Governmental Accounting Standards Board (GASB) has released the following new pronouncements, which can be read in their entirety at http://www.gasb.org In January 2020, GASB issued Statement No. 92 – Omnibus 2020. This Statement addresses practice issues that have been identified during implementation and application of certain GASB Statements.
This Statement addresses a variety of topics including issues related to leases, fiduciary activities, measurement of liabilities (and assets, if any) related to asset retirement obligations (AROs) in a government acquisition, reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers, reference to nonrecurring fair value measurements of assets or liabilities in authoritative literature and terminology used to refer to derivative instruments.
In March 2020, GASB issued Statement No. 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements. A public-private and public-public partnership arrangement (PPP) is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. This statement addresses issues related to PPPs.
PPPs that meet the definition of a lease apply the guidance in Statement No. 87, Leases, as amended.
This Statement provides accounting and financial reporting requirements for all other PPPs: those that either (1) meet the definition of a service concession arrangement (SCA) or (2) are not within the scope of Statement 87, as amended (as clarified by this Statement).
This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs), which are defined in this Statement as an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. The requirements of this Statement are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. Early application is encouraged. PPPs should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or if applicable to earlier periods, the beginning of the earliest period restated).
In May 2020, GASB issued Statement No. 95 – Postponement of the Effective Dates of Certain Authority Guidance, which was effective immediately. This Statement provided temporary relief to governments and other stakeholders in light of the COVID-19 pandemic and postponed the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018, and later.
In June 2020, GASB issued Statement No. 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32.
Paragraphs 4 and 5 are applicable to fiscal year 2019-2020. This Statement requires that for purposes of determining whether a primary government is financially accountable for a potential component unit, except for a potential component unit that is a defined contribution pension plan, a defined contribution OPEB plan, or another employee benefit plan (for example, certain Section 457 plans), the absence of a governing board should be treated the same as the appointment of a voting majority of a governing board if the primary government performs the duties that a governing board typically would perform. This Statement also requires that the financial burden criterion in paragraph 7 of Statement No. 84, Fiduciary Activities, be applicable to only defined benefit pension plans and defined benefit OPEB plans that are administered through trusts that meet the criteria in paragraph 3 of Statement No. 67, Financial
CENTRAL MARIN FIRE AUTHORITY
Notes to Financial Statements
June 30, 2021
34 Reporting for Pension Plans, or paragraph 3 of Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, respectively.
Note 15 - Fund Balance Designations Section of the Balance Sheet Governmental funds financial statements report fund balances as nonspendable, restricted, committed, assigned or unassigned, based primarily on the extent to which the Authority is bound to honor constraints on how specific amounts can be spent. Fund balances in the governmental fund balance sheet are designated as follows:
Restricted
Measure C fund $ 68,560
Measure F fund 588 $ 69,148
Assigned
Insurance fund 22,903
Equipment fund 173,313 196,216
Unassigned 27,083 27,083
Total Fund Balances $ 292,447
Marin County voter approved Measure C special tax charged to all real estate parcel owners. Revenue is restricted to plan, finance, implement, manage, own and operate a multi-jurisdictional agency to prevent and mitigate wildfires in Marin County.
The Town of Corte Madera voter approved Measure F Ordinance is funded from sales tax. Revenue is restricted for flood/sea level rise/disaster preparedness, fire prevention, street repair, improved traffic flow, safety improvements, 911 response and other program expenditures.
The Insurance Fund balance is assigned to account for the payment of insurance premiums.
The Equipment Fund balance is assigned to account for the receipt of grants and other sources of revenue to be appropriated for equipment acquisitions.
REQUIRED SUPPLEMENTARY INFORMATION
(unaudited)
35 CENTRAL MARIN FIRE AUTHORITY
Required Supplementary Information (unaudited)
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan As of June 30, 2021
Schedule of Proportionate Share of the Net Pension Liability The proportion (percentage) of the collective net pension liability represents the Authority’s share of the cost-sharing plan assets offset against the actuarial determined collective pension liability.
The proportionate share (dollar amount) of the collective net pension liability represents the Authority’s share of the cost-sharing plan assets offset against the actuarial determined collective pension liability.
The employer’s covered-employee payroll represents the payroll of employees that are provided with pensions through the plan.
Schedule of Contributions
The employer’s contributions to the plan is actuarially determined or based on statutory or contractual requirements which comprise the following: (1) the agent employer’s actuarially determined contribution to the pension plan (its statutorily/contractually required contribution), (2) the employer’s actual contributions, the difference between the actual and actuarially determined contributions (its statutorily/contractually required contributions), and (3) a ratio of the actual contributions divided by covered-employee payroll.
Schedule of the Authority's Proportionate
Share of the Plan's Net Pension Liability 2020 2019
Authority's proportion of the net
pension liability 0.00000% n/a
Authority's proportionate share of the
net pension liability $ 120 n/a
Authority's covered-employee payroll * $ 5,144,352 n/a
Authority's proportionate share of the
net pension liability as a percentage
of its covered-employee payroll 0% n/a
Plan fiduciary net position as a
percentage of the total pension liability 75.10% n/a
Schedule of the Authority's Contributions 2021 2020
Contractually required employer contribution $ 1,032,422 $ 1,234,880 Contributions in relation to the contractually
required employer contribution $ 1,032,422 $ 1,234,880
Contribution (excess) deficiency $ - $ -
Authority's covered-employee payroll ** $ 5,104,102 $ 5,144,352 Contributions as a percentage of
covered employee payroll 20.23% 24.00%
* for the year ending on the measurement date.
** for the fiscal year ending on the date shown.
CENTRAL MARIN FIRE AUTHORITY
Required Supplementary Information (unaudited)
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Last Two Fiscal Year*
Fiscal Year Ending June 30:
Measurement Date
Fiscal Year Ending June 30:
36 For Reporting at Fiscal Year Ended June 30: 2021 2020 2019 Measurement Date - Fiscal Year Ending June 30: 2020 2019 2019 Total OPEB Liability
Service cost $ 568,643 $ 140,000 $ -
Interest on the total OPEB liability 296,893 75,000 -
Changes of benefit terms - - 7,303,000
Differences between expected and actual experience - - - Changes of assumptions 2,127,789 396,000 -
Benefit payments - - -
Net Change in Total OPEB Liability 2,993,325 611,000 7,303,000 Total OPEB Liability - beginning 7,914,000 7,303,000 -
Total OPEB Liability - ending of year $ 10,907,325 $ 7,914,000 $ 7,303,000 Plan Fiduciary Net Position
Contributions - employer $ - $ - $ -
Contributions - employee 32,402 - -
Net investment income 1,585 - -
Administrative expenses (18) - -
Benefit payments - - -
Net Change in Plan Fiduciary Net Position 33,969 - -
Plan Fiduciary Net Position - beginning - - -
Plan Fiduciary Net Position - end of year $ 33,969 $ - $ - Net OPEB Liability $ 10,873,356 $ 7,914,000 $ 7,303,000 Fiduciary Net Position as a percentage of
the Total OPEB Liability 0.3% 0.0% 0.0%
Covered-employee payroll $ 5,305,483 $ 1,270,000 n/a
Net OPEB liability as a percentage of
covered-employee payroll 204.9% 623.1% n/a
* Fiscal year 2019 was the first year of implementation, therefore only three years are shown
CENTRAL MARIN FIRE AUTHORITY
Required Supplementary Information (unaudited)
Last Three Fiscal Years*
Schedule of Changes in Net OPEB Liability and Related Ratios 37 38
CENTRAL MARIN FIRE AUTHORITY
Required Supplementary Information (unaudited)
Budgetary Comparison Schedule
Year Ended June 30, 2021
The Authority follows these procedures in establishing the budgetary data reflected in the financial statements:
• Prior to close of the fiscal year, management submits to the Central Marin Fire Authority Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed revenue and expenditures.
• Public hearings are conducted at Council meetings to obtain taxpayer comments prior to adoption of the budget in June.
• Prior to July 1, the budget is legally adopted for all governmental fund types through the Council approved budget.
• Management is authorized to transfer budget amounts within and between funds as deemed desirable and necessary in order to meet the Authority’s needs; however, revisions that alter the total expenditures must be approved by the Council. Formal budgetary integration is employed as a management control device during the year for the governmental type funds. • Budgets for the governmental type funds are adopted on a basis consistent with generally accepted accounting principles. Budgeted amounts presented are as originally adopted and as further amended by the Council.
Variance
Favorable
Budget Actual (Unfavorable)
Resources (Inflow)
Member contributions $ 9,340,620 $ 9,341,198 $ 578
State revenue - 1,348,283 1,348,283
Local agencies revenue - 102,595 102,595
Grant revenue - 203,972 203,972
Permits and fees 150,000 118,689 (31,311)
Other operating revenue - 11,582 11,582
Amounts Available for Appropriation 9,490,620 11,126,319 1,635,699 Charges to Appropriations (Outflow)
Personnel 7,935,707 9,182,495 (1,246,788)
Outside services 473,288 728,498 (255,210)
Training and education 20,000 14,373 5,627
Dues and subscriptions 12,500 8,166 4,334
Equipment maintenance 24,100 40,079 (15,979)
Building maintenance 25,000 9,528 15,472
Vehicle maintenance 70,000 99,398 (29,398)
Utilities 71,100 71,355 (255)
Supplies 311,925 278,098 33,827
Equipment 47,000 - 47,000
Transfers out 500,000 694,329 (194,329)
Total Charges to Appropriations 9,490,620 11,126,319 (1,635,699) Surplus (Deficit) $ - $ - $ -
CENTRAL MARIN FIRE AUTHORITY
Year Ended June 30, 2021
Required Supplementary Information (unaudited)
Budgetary Comparison - General Fund
39 VII.B.
CENTRAL MARIN FIRE COUNCIL
STAFF REPORT
REPORT DATE: February 1, 2022
MEETING DATE: February 10, 2022
TO: Central Marin Fire Authority Council
FROM: Management Committee
Ruben Martin, Fire Chief
SUBJECT: Resolution No. 2022/02 Establishing Dates And Times For The Regular Meetings Of The Fire Council Of The Central Marin Fire Authority For 2022
STAFF RECOMMENDATION:
That Council adopt Resolution 2022/02, establishing the dates and times for the regular meetings of the Fire Council for 2022
OPTIONS:
1. Adopt the attached resolution as presented
2. Adopt the attached resolution with modifications
3. Take no action at this time and provide other direction to staff.
FISCAL IMPACT:
There is no fiscal impact to the Fire Authority.
BACKGROUND/DISCUSSION:
It is necessary for the Central Marin Fire Council to establish a regular meeting schedule for the 2022 calendar year. In accordance with the Brown Act, these meetings shall be noticed to the public 72 hours prior to the start time. The Fire Council is scheduled to hold its meetings on the same dates following Police Council meetings.
At the direction of the Fire Council and the Management Committee, and in coordination with the Central Marin Police Council, the Fire Council has established a schedule of four regular meetings per year. The regular meeting schedule for each year is typically approved at the last meeting of the year. The 2022 regular meeting schedule was not approved by the end of 2021 due to the cancellation of the November 18, 2021 Fire Council meeting.
For calendar year 2022, the meetings are proposed to be held on the second Thursday in February (February 10), the second Thursday in May (May 12), the second Thursday in August (August 11), and the second Thursday in November (November 10) at 6:30 p.m., or following the conclusion of the Police Council meeting, whichever is later. This start time allows the Fire Council meeting to convene immediately following the Police Council meeting and eliminates unnecessary lag time between the two meetings.
ATTACHMENTS:
1. Proposed Resolution No. 2022/02
RESOLUTION NO. 2022/02
A RESOLUTION OF THE CENTRAL MARIN FIRE COUNCIL OF THE CENTRAL
MARIN FIRE AUTHORITY ESTABLISHING DATES AND TIMES FOR REGULAR MEETINGS OF THE CENTRAL MARIN FIRE COUNCIL FOR 2022
WHEREAS, the Central Marin Fire Authority wishes to set regular meetings and start times for the year 2022 as follows: the second Thursday in February, the second Thursday in May, the second Thursday in August and the second Thursday in November; and WHEREAS, these regular meetings will be held at 6:30 p.m., or upon conclusion of the meeting of the Central Marin Police Authority Police Council, whichever is later, in the community room of the Central Marin Police Authority main station located at 250 Doherty Drive in Larkspur, or via a publicly accessible Zoom Videoconference should in-person meetings be unable to be held; and
WHEREAS, Fire Council meeting agendas will be posted on the Central Marin Fire Authority website and will be noticed 72 hours prior to the start time in accordance with the Brown Act.
NOW, THEREFORE BE IT RESOLVED, that the Central Marin Fire Council approves of the regular meeting schedule for the year 2022; and
********
IT IS HEREBY CERTIFIED that the foregoing Resolution was duly passed and adopted by the Council of the Central Marin Fire Authority at a Regular Meeting thereof this 10th day of February, 2022 by the following vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
_________________________________
Kevin Haroff, Council Chair
Central Marin Fire Authority
ATTEST:
_________________________________
Rebecca Vaughn, Authority Clerk
Central Marin Fire Authority