Del Rey Oaks City Council
January 23, 2024

REGULAR CITY COUNCIL MEETING AGENDA

OF THE CITY OF DEL REY OAKS CITY COUNCIL
TUESDAY, JANUARY 23, 2024 AT 6:00 PM
Del Rey Oaks City Hall is inviting you to an IN-PERSON MEETING AT CITY HALL

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1. ROLL CALL - Council

2. PLEDGE OF ALLEGIANCE

3. PUBLIC COMMENTS: General Public Comment must deal with matters subject to the jurisdiction of the City and the Council that are not on the Agenda. Anyone wishing to address the City Council on matters not appearing on the Agenda may do so now. The public may comment on any other matter listed on the Agenda at the time the matter is being considered. There will be a time limit of not more than three minutes for each speaker. No action will be taken on matters brought up under this item and all comments will be referred to staff.

4. CONSENT AGENDA:

A. MINUTES: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. December 13, 2023, Special City Council Meeting Minutes

2. December 19, 2023, Regular City Council Meeting Minutes B. MONTHLY REPORTS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. Financials December 2022 - December 2023

2. Fire Department Response Report, December 2023

3. Police Activity Report, December 2023
1 C. MISCELLANEOUS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. Adoption of Tobacco Retailer License Ordinance and Smoke Free Public Places Ordinance (Second Reading)

2. Authorize City Manager to publish Request for Proposals for Comprehensive Fee Study

3. Authorize City Manager to sign the Agreement with Community Tree Service for the work to be performed for the Cal Fire Grant

5. OLD BUSINESS: None

6. NEW BUSINESS:

A. Approval of the FY 2022-23 City Audit Report
B. Appeal of Building Official Determination Regarding Square Footage Calculations at 121 Calle Del Oaks

7. STAFF REPORTS:

A. City Manager Report
B. Council Reports

8. CORRESPONDENCE:

A. Department of Housing and Community Development Letter B. MST Highlights
C. TAMC Highlights

9. NEXT MEETING DATE: February 27, 2024 at 6:00pm

10. ADJOURNMENT in Honor of Former Mayor Joseph Russell Information distributed to the Council at the meeting becomes part of the public record. A copy of written material, pictures, etc. must be provided to the secretary for- this purpose.

All enclosures and materials regarding these agenda items are available for public review at the Del Rey Oaks City Hall, 650 Canyon Del Rey Road, Del Rey Oaks. 2 City of Del Rey Oaks
City Hall
650 Canyon Del Rey Blvd
Del Rey Oaks, CA 93940
Action Minutes
Wednesday December 13, 2023 - 6:30 PM
City Council – Special Meeting
Del Rey Oaks City Council
Scott Donaldson – Mayor
Kim Shirley – Vice Mayor
Jeremy Hallock – Councilmember
John Uy – Councilmember
Bill Ragsdale-Cronin - Councilmember
3 Item 1.
6:30 PM – Called to Order:

The meeting was called to order by Vice Mayor Shirley.

Roll Call:

Present: Vice Mayor Shirley, Councilmember Hallock, Councilmember Ragsdale-Cronin and Councilmember Uy.

Absent: Mayor Donaldson
Also Present: City Manager Guertin, City Attorney Lorca and City Clerk Minami
Pledge of Allegiance:

Councilmember Uy led the Pledge of Allegiance
Public Comment:

None
Public Comment closed
NEW BUSINESS: Action Item
Received comments from the public and consider adopting a Resolution to amend the Del Rey Oaks General Plan by adopting the 6th cycle (2023-2031) Draft Housing Element Denise Duffy: Reviews timeline and explains the resolution correction that is in front of Council.

The entire City Council thanked Denise Duffy and Associates for all of their hard work.

Motion made by Council Member Uy to approve the resolution 2023-21 to amend the Del Rey Oaks General Plan by adopting the 6th cycle (2023-2031) Draft Housing Element, seconded by Council Member Ragsdale Cronin.

Passed unanimously 4-0
Mayor Donaldson absent
Public Comment:

None
4 Item 1.

NEXT REGULAR MEETING DATE: Tuesday, December 19, 2023 at 6:00pm ADJOURNMENT: 6:40pm
Attest: Date:
------------------------------------------ ------------------------------------------------- 5 Item 1.

City of Del Rey Oaks
City Hall
650 Canyon Del Rey Blvd
Del Rey Oaks, CA 93940
Action Minutes
Tuesday December 19, 2023 - 6:00 PM
City Council – Regular Meeting
Del Rey Oaks City Council
Scott Donaldson – Mayor
Kim Shirley – Vice Mayor
Jeremy Hallock – Councilmember
John Uy – Councilmember
Bill Ragsdale-Cronin - Councilmember
6 Item 2.
6:00 PM – Called to Order:

The meeting was called to order by Mayor Donaldson.

Roll Call:

Present: Mayor Donaldson, Councilmember Shirley, Councilmember Hallock, Councilmember Ragsdale-Cronin and Councilmember Uy.

Absent: None
Also Present: City Manager Guertin, City Attorney Lorca, City Clerk Minami Pledge of Allegiance:

Mayor Donaldson led the Pledge of Allegiance
Public Comment: None

PUBLIC COMMENT IS CLOSED
CONSENT AGENDA: Action Items
A. MINUTES: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. November 14, 2023, Regular City Council Meeting Minutes

2. November 8, 2023, Regular Planning Commission Meeting Minutes B. MONTHLY REPORTS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. Financials November 2023

2. Fire Department Response Report, November 2023

3. Police Activity Report November 2023
C. MISCELLANEOUS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)

1. Approval of 2024 Regional Agencies Boards & Committees Representatives Appointment List

2. Approval of the 2024 City Meeting Calendar

3. Approval of the appointment of Councilmember John Uy as Vice Mayor for the 2024 calendar year.
7 Item 2.

4. Consider a Contribution of $2,500 to the Monterey County Business Council as Part of a Regional Local Match for the MCBC to Host the Small Business Development Center

5. Authorize the Establishment of a Deputy City Clerk/Permit Clerk Position in the Fiscal Year 2023-24 Budget
A motion was made by Council Member Hallock, seconded by Council Member Uy to approve the consent agenda item as presented with the exception of Item 4.C.1. to be further discussed.

Council Member Ragsdale-Cronin pulled item 4.C.1. to express his request to be assigned to Monterey One Water. Would like to be the primary representative for the city because of his experience and he is a good fit, it’s in his wheelhouse and has relationships with board members.

Further discussion was had regarding an email that Council Member Ragsdale Cronin stated that he sent about this assignment.

Mayor Donaldson: Good relationship. The board isn’t operations, its policy focused.

Suggested the primary position to Ragsdale-Cronin and asked if Council Member Uy would be secondary on the Seaside County Sanitation District.

Council Member Uy: Only one primary role and likes it and it fits into his schedule. Unfair to ask.

Council Member Hallock: Offers even trade with him for Monterey Peninsula Water Management District primary.

Council Member Shirley: The council owes this assignment Council Member Ragsdale-Cronin, was appointed late and it fits into his schedule. Deserves it.

PUBLIC COMMENT:

Helen Birdsong: He is a good fit.

Public Comment closed
Mayor Donaldson: Table this for January to find something that works.

A motion was made by Council Member Shirely, seconded by Council Member Uy to accept item 4.C.1. with the placement of Council Member Ragsdale-Cronin as the primary rather than Mayor Donaldson on the Monterey One Water Board.

Mayor Donaldson: Wants to compromise and work on primary positions and is being forced out of this position.

Motion passed with a ROLLCALL VOTE:
8 Item 2.

Council Member Uy- Yes
Council Member Hallock- Abstain
Council Member Shirley- Yes
Council Member Ragsdale-Cronin- Yes
Mayor Donaldson:- No
NEW BUSINESS:

A. Adopt Resolution 2023-22 to Approve Professional Services Agreement with Whitson Engineers and Denise Duffy & Associates for Engineering and Environmental Services for the South Boundary Road Realignment and General Jim Moore Blvd Intersection Project
Andy Hunter of Whitson Engineering answered questions from Council regarding timing, water, utilities, and the request to have periodic updates. He gave some details of how the road will eventually look like.

Motion passed unanimously 5-0
No Public Comment Received
B. First Reading of Tobacco Retailer License Ordinance and Smoke Free Public Place Ordinance.

City Manager Guertin: Reviews meetings and the need for two ordinances. Wanted to be in line with other local cities and tried to capture all in both ordinances.

Council Member Uy: Problems in other cities?
City Manager Guertin: None that he has heard of, but still new.

Council Member Hallock: Pleasure to work with Council Member Shirley, the Blue Zone and the County. Future work to be done and has fast tracked item.

City Attorney Lorca: This is an action item.

Council Member Shirley: Safeway signage for no smoking isn’t enforced. Would like an amendment for signage. Multi-unit buildings. Thanks Council Member Hallock.

Mayor Donaldson: Appreciates swift action and collaboration.

Public comment:

Helen Birdsong: The Oaks board member and wants the multi-unit buildings included.

Celia: Gave hand out regarding 81 cities that have passed it. Suffers from asthma and wants city to pass it in Multi Unit buildings.

Sun Street Center: Spoke about vaping programs at 6th grade level.

Blue Zone: Clean air, smoke free outdoor spaces.

Public Comment Closed.

A motion was made by Council Member Shirley, seconded by Council Member Hallock to approve the first reading of Tobacco Retailer License Ordinance.

Motion passed unanimously 5-0
9 Item 2.

A motion was made by Council Member Hallock, seconded by Council Member Shirley to approve the first reading of Smoke Free Public Place Ordinance.

Motion passed unanimously 5-0
Public Comment: None

NEXT MEETING DATE: Tuesday, January 23, 2024 at 6:00pm
ADJOURNMENT: 7:28pm
Attest: Date:
------------------------------------------ ------------------------------------------------- 10 Item 2.

Staff Report
DATE: January 23, 2024
TO: Honorable Mayor and Council Members
FROM: John Guertin, City Manager
SUBJECT: Receive December 2023 Financial Reports
CEQA: This action does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) guidelines section 15378 as it is an administrative activity of the City that will not result in direct or indirect physical changes in the environment.

Consideration
Approval of financial reports for the month of December 2023.

Background
The Budget and Finance Committee routinely receives financial reports for the previous month.

Summary & Discussion
Attached are the December 2023 financial reports.
• December 2023 Cash Balances – The report shows where the City’s funds are invested. The City continue to have a healthy cash balance $13,458,163 of which $4,799,220 are unrestricted.
• December 2023 Checks Issued Register –This is a listing of all the payments issued during the month. The total checks issued of $67,867.
• December 2023 General Fund Summary – This is a one-page summary of the General Fund, the City’s main operating fund. For the month of December, the General Fund shows revenue of $734,450. As of 12/31/2023 the General Fund shows an operating surplus of $482,962.

At 50% of the year (6 months) the revenues are slightly higher at 53.28% due to the receipt of Property Taxes and the expenditures are at 43.01% of the budget. • December 2023 YTD Budget v. Actual Detail – This report shows the line-item detail for all revenues and expenditures by fund and department.
11 Item 1.

Fiscal Impacts
None. This is informational only.

Recommendation
Staff recommend approval of the reports.

ATTACHMENTS:
• December 2023 Cash and Investment
• December 2023 Checks Register
• December 2023 General Fund Summary
• December 2023 YTD Budget v. Actual Detail
Respectfully Submitted,
_______________________________
John Guertin
City Manager
12 Item 1.

Accounts
Unrestricted
General Checking $ 916,027.36
Local Agency Investment Fund
Reserve for Economic Uncertainties 1,652,182.00 3.843%
Unappropriated Funds 2,231,010.49 3.843%
Total Unrestricted 4,799,219.85
Restricted
PARS 324,899.52
Dev - Monterey Peninsula Partner 9,062.62
Fidelity Title Escrow Acct - GJM/SBR Intersection 1,056,168.00 Fidelity Title Escrow Acct - SBR Construction 7,268,813.00 Total Restricted 8,658,943.14
Total Cash and Investments $ 13,458,162.99
City of Del Rey Oaks
Summary of Cash & Investments
As of 12/31/2023
13 Item 1.

Check
Number Payee Transaction Description Check Amount
21769 A.F. Electric #14954 Park restrooms lighting 235.00 21770 AFLAC Acct #QAE62 November 2023 Monthly Premium 381.70 21771 AMERICAN LOCK & KEY Inv #1-2353 Supplies 117.99
21772 AT&T MOBIILITY Acct #287290891231 - Mobile Service Period 12-03-23 to 01-02-24 613.80 21773 CALIFORNIA BUILDING STANDARDS COMMISSION California Building Standards Commission - Fee 063023 29.27 21774 California Peace Officers Association Inv #423540 Webinar 175.00 21775 CoPower ID #145153 - January 2024 Dental Coverage 2,177.32 21776 COMCAST BUSINESS Acct #8155100280008479 Internet Service Period 12-10-23 to 01-09-24 378.31 21777 CORELOGIC SOLUTIONS, LLC. Acct #2010705640RR681524- November 2023 Data Search Service 154.50 21778 CRITICAL REACH INC Inv #3164 - 2024 APBnet Annual Support Fee 325.00 21779 DENISE DUFFY & ASSOCIATES #8898 DRO - Housing Element, Reimbursable Direct Cost. 3,889.25 21780 Dooley Enterprises, Inc. Inv #66914 - PD Supplies 3,905.89 21781 Express Services, Inc Acct #20340225 - Admin Assistant - 11-26-23 165.00 21782 Government Forms & Supplies Inv #0344499 - Office Supplies 131.12 21783 G.P.S. SOLUTIONS #75 November 2023 - Building, Plumbing Permits, Plan Check Fees 7,969.45 21784 HOME DEPOT CRC 1270645 - Supplies 163.16
HOME DEPOT CRC 9271160 - Supplies 124.87
21785 Leigh Fitz L. Fitz ER - Wellness Program 222.00
21786 Monterey County Peace Officers 2023058R - August 2023 - Shooting Range Use 280.00 Monterey County Peace Officers 202308iR - November 2023 - Shooting Range Use 280.00 21787 MONTEREY BAY TECHNOLOGIES #236120 - December 2023 IT Services 1,800.00 21788 MONTEREY COUNTY WEEKLY CLASSIFIEDS 105-060200-00001 Notice Sealed Bids for Fire Prevention Program 519.75 MONTEREY COUNTY WEEKLY CLASSIFIEDS 106-060200-00001 Notice of Public Hearing 173.25 21789 MONTEREY ONE WATER Acct #09-000306 Sewer Service Period 11-01-23 to 12-31-23 81.02 21790 MONTEREY PENINSULA AIRPORT DISTRICT 0147404-IN Diesel Usage 05/31/23 197.39 21791 ODP Business Solutions, LLC 275041604001 - Office Supplies 53.58 ODP Business Solutions, LLC 286244035001 - Office Supplies 56.34 ODP Business Solutions, LLC 322589108001 - Office Supplies 21.99 ODP Business Solutions, LLC 342392586001 - Supplies 119.69 ODP Business Solutions, LLC 342765126001 Supplies 8.27
ODP Business Solutions, LLC 342765146001 - Supplies 4.16 ODP Business Solutions, LLC 343530670001 - Supplies 72.03 ODP Business Solutions, LLC 343567226001 - Office Supplies 61.16 21792 PG&E Acct #4283033409-2 PGE Service Period 10-23-23 to 11-20-23 2,036.07 21793 Pitney Bowes Global Financial Services LLC Acct #3106401733 - Meter Lease Quarterly 169.79 21794 PROAC LEGAL DEFENSE FUND Acct #3162 Legal Defense Fund Dues Sept 2023-January 2024 2,039.40 21795 Peace Officers Research Association of California 425218 - Acct #3162 Quarterly Member Dues 767.00 Peace Officers Research Association of California Acct #3163- Quarterly Membership Dues for Reserve POA 72.00 21796 PURE WATER Inv #425570 - Supplies 34.75
21797 ROGER GUZMAN R. Guzman ER 12112023 - Travel Expenses 734.00 21798 TERMINIX Acct #6099531 - November 2023 - Pest Control 102.00 21799 THE MAYNARD GROUP #IN2041156 - November 2023 Telecommunication Service 67.00 21800 UNITED SITE SERVICES INV-02148362 - November 2023 Service 81.76 UNITED SITE SERVICES INV-4006024 -November 2023 DRO Park Service Supplies 682.52 21801 US Bank Equipment Finance Acct #500-0673430 December 2023 Konica Minolta Copier 428.84 21802 Verizon Acct #342533778-00001 - Mobile Service Period 10-24-23 to 11-23-23 80.02 121223 PERS CalPERS 1900 457 (12/08) Contribution 12/15/23 2,300.00 pers 121223-1PERS PERS 3100 Contribution Retirements 11/18-12/01/23 -Plan 1365 4,713.68 pers 121223-2PERS PERS 3100 Contribution Retirement 11/18-12/01/23 -Plan 25623 3,857.70 pers 121223-3PERS PERS 3100 Contribution Retirement 11/18-12/01/23 -Plan 1364 549.68 pers 121223-4PERS PERS 3100 Contribution Retirement 11/18-12/01/23 -Plan 26934 781.45 pers-111723 PERS PERS 3100 Contribution Retirement 11/04-11/17/23 --Plan 1364 542.46 PERS PERS 3100 Contribution Retirement 11/04-11/17/23 -Plan 25623 3,816.05 PERS PERS 3100 Contribution Retirement 11/04-11/17/23 -Plan 26934 815.88 PERS PERS 3100 Contribution Retirements 11/4-11/17823 -Plan 1365 4,387.29 pers-111723-1PERS CalPERS 1900 457 (11/17) Contribution 11/30/2023 2,300.00 PERS122223 PERS PERS 3100 Contribution Retirement 12/02-12/15/23 -Plan 1364 556.90 PERS PERS 3100 Contribution Retirement 12/02-12/15/23 -Plan 26934 781.45 PERS PERS 3100 Contribution Retirement 12/2-12/15/23 -Plan 25623 3,799.26 PERS PERS 3100 Contribution Retirements 12/2-12/15/23 -Plan 1365 4,182.89 PERS122223-1PERS CalPERS 1900 457 (12/22) Contribution 12/31/23 2,300.00 Total 67,867.10
City of Del Rey Oaks
Check/Voucher Register
From 12/01/2023 Through 12/31/2023
14 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-General Fund Summary 100 - General Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
Actual
December 2023
Actual
FY 2024 YTD
Collected/Spent
Percent
Revenue
Property Taxes 767,700.00 455,472.24 455,472.24 59.32%
Sales Tax 1,313,000.00 101,025.44 719,650.87 54.80%
Other Taxes 487,500.00 19,258.12 257,188.01 52.75%
Licenses and Permits 286,300.00 7,519.94 93,922.63 32.80% Fines and Forfeitures 10,200.00 875.90 6,364.90 62.40%
Other Revenue 12,200.00 325.19 67,993.91 557.32%
Grants 264,520.00 15,016.74 208,616.53 78.86%
Airport Police Services 1,376,500.00 110,457.00 552,285.00 40.12% Current Services 186,700.00 24,499.58 145,009.40 77.66% Total Revenue 4,704,620.00 734,450.15 2,506,503.49 53.28% Expenditures
Council 32,200.00 1,058.08 9,047.73 28.09%
City Clerk 443,900.00 15,699.02 195,325.26 44.00%
City Manager 318,300.00 16,382.95 146,235.02 45.94%
Audit/Treasurer 288,100.00 218.46 133,831.33 46.45%
Legal 201,500.00 693.00 41,374.88 20.53%
Planning & Building
Regulation
105,400.00 7,969.45 50,279.25 47.70%
Government Buildings 19,100.00 102.00 1,010.00 5.28%
Non-Departmental 42,700.00 29.27 22,210.76 52.01%
Police 2,668,790.00 126,480.64 1,225,317.42 45.91%
Fire/Animal Control 227,600.00 0.00 56,878.75 24.99%
Public Works/Streets 313,530.00 9,994.48 126,140.02 40.23% Parks/Recreation 43,500.00 917.52 15,891.39 36.53%
Total Expenditures 4,704,620.00 179,544.87 2,023,541.81 43.01% Net Revenues 0.00 554,905.28 482,961.68 0.00%
Other Financing Sources and
Uses
Uses
Transfers Out to CIP (193,900.00) 0.00 0.00 0.00%
Total Uses (193,900.00) 0.00 0.00 0.00%
Total Other Financing Sources
and Uses
(193,900.00) 0.00 0.00 0.00%
Net Revenues After Other
Financing Sources and Uses
(193,900.00) 554,905.28 482,961.68 (249.07)%
15 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 100 - General Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Revenue
Non Department Specific 000
P/T-Secured 41110 531,000.00 313,327.40 313,327.40 59.00% P/T-Unsecured 41120 24,500.00 26,962.16 26,962.16 110.04% P/T-Prior Secured 41130 6,100.00 6,028.38 6,028.38 98.82% Prior Unsecured 41140 100.00 0.00 0.00 0.00%
P/T-Unitary Tax 41150 10,000.00 5,981.99 5,981.99 59.81% P/T-Supplemental Roll (SB813) 41160 12,200.00 7,379.20 7,379.20 60.48% Property Tax - VLF 41170 183,000.00 95,158.50 95,158.50 51.99% Prop Tax-Interest/Penalty 41180 800.00 634.61 634.61 79.32% Sales Tax 42210 470,000.00 34,532.86 244,939.95 52.11%
Sales Tax - 145 (Measure
S-1%)
42220 562,000.00 43,456.99 316,060.92 56.23%
Sales Tax -409 (Measure R
1/2%)
42221 281,000.00 23,035.59 158,650.00 56.45%
Cannabis Tax 42222 99,000.00 15,088.84 68,448.44 69.13% Transient Occupancy Tax 42230 190,000.00 349.25 116,675.04 61.40% Property Transfer Tax 42250 5,000.00 3,820.03 8,124.33 162.48% Sewer Impact 42290 15,000.00 0.00 0.00 0.00%
Business Licenses 42310 210,000.00 304.00 54,729.47 26.06% Gas Franchises 42761 8,000.00 0.00 0.00 0.00%
Electric Franchises 42762 21,500.00 0.00 0.00 0.00%
Garbage Franchises 42763 100,000.00 0.00 51,487.18 51.48% Cable Tv Franchises 42764 26,000.00 0.00 12,453.02 47.89% Water Franchises 42765 23,000.00 0.00 0.00 0.00%
SB1186 Disability Access Fund 43311 1,000.00 16.00 410.00 41.00% SB1473 Environmental
Assessment Fee
43312 100.00 32.50 55.80 55.80%
Building Permits 43320 40,000.00 5,255.26 17,997.32 44.99% Cannabis Business Permit 43325 10,000.00 0.00 4,000.00 40.00% Plan Check Fees 43330 17,000.00 1,303.18 12,690.04 74.64% Street Opening Permits Fees 43340 5,000.00 500.00 2,950.00 59.00% Plumbing Permits 43350 1,600.00 125.00 1,125.00 70.31%
Electrical Permits 43360 1,600.00 0.00 375.00 23.43%
Other Licenses/Permits 43390 1,000.00 0.00 0.00 0.00%
Fines & Forfeitures 45000 200.00 294.90 1,289.90 644.95% Vehicle Code Fines 45510 5,000.00 250.00 1,164.00 23.28% Parking and Admin Fines 45512 5,000.00 331.00 3,911.00 78.22% Interest Earned 46100 10,000.00 0.00 64,684.76 646.84%
Interest Earned-PARS 46101 0.00 0.00 1,971.49 0.00%
Rental Income - Garden Center 46815 36,000.00 3,000.00 20,000.00 55.55% Rental Income - Airport RV 46816 35,000.00 4,377.08 23,317.47 66.62% Rental Income - PW Bldg (CHC
Enterprise)
46817 24,000.00 2,000.00 8,000.00 33.33%
HOPTR 47130 1,200.00 309.19 309.19 25.76%
COPS 47240 165,200.00 8,333.33 136,158.98 82.42%
AMBAG REAP Grant - Housing
Element
47241 0.00 0.00 20,980.25 0.00%
HCD LEAP Grant - Housing
Element
47242 0.00 0.00 18,226.50 0.00%
SB1383 Organics Recycling 47243 9,000.00 4,957.78 4,957.78 55.08% Prop 172 47750 25,000.00 1,725.63 9,276.37 37.10%
Wellness Program 47760 7,500.00 0.00 7,500.00 100.00%
16 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 100 - General Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Police Grants & Other
Reimbursements
47780 5,000.00 0.00 5,982.87 119.65%
POST Reimbursements 47781 3,000.00 0.00 5,533.78 184.45% DEA Reimbursements 47782 44,000.00 0.00 0.00 0.00%
Grant Other Agencies 47783 5,820.00 0.00 0.00 0.00%
Police Service Fees 48210 1,000.00 0.00 607.00 60.70%
Police Services-Special Events 48211 48,000.00 11,312.50 17,687.50 36.84% Public Events 48212 5,000.00 0.00 7,500.00 150.00%
Use Permits 48805 20,000.00 710.00 15,085.89 75.42%
Maps/Publications 48810 100.00 0.00 0.00 0.00%
Property Inspections 48825 4,500.00 250.00 1,000.00 22.22% Miscellaneous Revenue 48840 10,000.00 2,750.00 49,462.32 494.62% Rental - Park 48910 3,100.00 100.00 2,349.22 75.78%
Miscellaneous Refunds 48930 0.00 0.00 618.47 0.00%
Total Non Department Specific 3,328,120.00 623,993.15 1,954,218.49 58.72% Police 210
Airport Police Services 48220 1,376,500.00 110,457.00 552,285.00 40.12% Total Police 1,376,500.00 110,457.00 552,285.00 40.12%
Total Revenue 4,704,620.00 734,450.15 2,506,503.49 53.28% Expense
Council 110
Council Member Stipend 61115 7,500.00 625.00 2,022.31 26.96% Medicare-ER 61130 200.00 9.06 54.36 27.18%
Social Security-ER 61131 500.00 38.75 232.50 46.50%
Unemployment Ins-Fed & State 61132 100.00 3.75 22.50 22.50% Dental Expense 61135 11,400.00 381.52 2,418.63 21.21%
Materials/Supply 62410 0.00 0.00 100.00 0.00%
Membership Dues-Professional
Org
64550 4,000.00 0.00 340.35 8.50%
Strategic Planning 64570 5,000.00 0.00 0.00 0.00%
Travel Expenses 64610 3,500.00 0.00 3,857.08 110.20%
Total Council 32,200.00 1,058.08 9,047.73 28.10%
City Clerk 111
Payroll 61105 149,600.00 11,171.22 69,222.14 46.27%
Temp Payroll 61107 10,000.00 0.00 0.00 0.00%
Overtime 61110 20,000.00 380.25 2,765.72 13.82%
PERS UAL 61124 36,900.00 0.00 36,879.00 99.94%
PERS Retirement 61125 13,800.00 1,417.37 5,874.82 42.57% Medicare-ER 61130 2,200.00 167.50 1,038.35 47.19%
Unemployment Ins-Fed & State 61132 200.00 0.00 0.00 0.00% Dental Expense 61135 3,200.00 190.76 1,144.56 35.76%
Health Insurance 61140 60,500.00 (36.42) 18,284.05 30.22% Health Insurance -Retiree 61141 1,800.00 0.00 0.00 0.00% Vision Ins 61145 500.00 0.00 155.96 31.19%
Workers Comp and EAP 61150 9,100.00 0.00 4,844.48 53.23% Wellness Program 61155 1,000.00 222.00 971.20 97.12%
Materials/Supply 62410 16,300.00 119.43 1,933.30 11.86% Office Supplies 62430 11,200.00 215.28 2,438.09 21.76%
Repair/Maintenance 63505 3,000.00 0.00 597.23 19.90%
Other Outside Services 63508 0.00 598.63 2,341.41 0.00% Shredding Services 63509 1,000.00 0.00 355.72 35.57%
Telephone 63530 7,700.00 33.50 3,843.14 49.91%
Website Design & Maintenance 63535 3,800.00 0.00 0.00 0.00% 17 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 100 - General Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Postage / Shipping 63540 4,000.00 0.00 1,126.20 28.15%
Training 63605 5,000.00 0.00 1,324.59 26.49%
Insurance-Liability 63620 17,370.00 0.00 8,684.57 49.99% Insurance-Property 63621 230.00 0.00 1,264.14 549.62%
Contract Services - IT 63635 6,000.00 900.00 7,793.75 129.89% HR Services-RGS 63652 31,500.00 0.00 0.00 0.00%
Temporary Assistance 63657 0.00 165.00 5,671.05 0.00%
Janitorial Services 63660 0.00 0.00 750.00 0.00%
Software/Server Subscription 64310 2,000.00 154.50 6,621.52 331.07% Agenda Management System 64315 5,000.00 0.00 4,920.00 98.40% Document Management System 64316 1,500.00 0.00 437.50 29.16% Municipal Code Service 64320 10,000.00 0.00 1,097.25 10.97% Membership Dues-Professional
Org
64550 3,200.00 0.00 285.00 8.90%
Membership Dues-Government
Agency
64552 1,300.00 0.00 650.00 50.00%
Printing / Publications 64575 2,000.00 0.00 1,233.38 61.66% Travel Expenses 64610 0.00 0.00 602.35 0.00%
Furniture & Equipment 66300 3,000.00 0.00 174.79 5.82%
Total City Clerk 443,900.00 15,699.02 195,325.26 44.00% City Manager 120
Payroll 61105 192,500.00 15,548.80 99,288.73 51.57%
PERS UAL 61124 1,000.00 0.00 0.00 0.00%
PERS Retirement 61125 14,800.00 0.00 4,951.01 33.45%
Medicare-ER 61130 2,800.00 225.46 1,438.64 51.38%
Unemployment Ins-Fed & State 61132 100.00 0.00 0.00 0.00% Dental Expense 61135 1,600.00 193.29 1,159.74 72.48%
Health Insurance 61140 30,200.00 0.00 15,601.55 51.66%
Vision Ins 61145 200.00 0.00 118.40 59.20%
Workers Comp and EAP 61150 11,700.00 0.00 6,025.74 51.50% Wellness Program 61155 500.00 0.00 0.00 0.00%
Auto Allowance 61180 5,400.00 415.40 2,492.36 46.15%
Materials/Supply 62410 0.00 0.00 35.83 0.00%
Office Supplies 62430 1,500.00 0.00 605.48 40.36%
Insurance-Liability 63620 22,405.00 0.00 11,201.12 49.99% Insurance-Property 63621 295.00 0.00 1,629.24 552.28%
Membership Dues-Professional
Org
64550 0.00 0.00 300.00 0.00%
Books and Periodicals 64565 300.00 0.00 0.00 0.00%
Travel Expenses 64610 8,000.00 0.00 1,387.18 17.33%
Contingency 66905 25,000.00 0.00 0.00 0.00%
Total City Manager 318,300.00 16,382.95 146,235.02 45.94% Audit/Treasurer 130
ADP Payroll Fees 62310 3,500.00 0.00 2,882.15 82.34%
Bank Service Charges 62320 4,600.00 218.46 2,910.33 63.26% Grant Writing Services 62327 30,000.00 0.00 0.00 0.00%
Accounting Software 62431 3,600.00 0.00 8,493.75 235.93% Audit-Finance 63625 29,000.00 0.00 16,950.00 58.44%
Audit -Sales Tax 63626 5,000.00 0.00 0.00 0.00%
Actuarial Services 63627 4,500.00 0.00 0.00 0.00%
Accounting Services-RGS 63645 207,900.00 0.00 102,595.10 49.34% Total Audit/Treasurer 288,100.00 218.46 133,831.33 46.45% Legal 150
Legal Services 63650 200,000.00 0.00 39,080.83 19.54% 18 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 100 - General Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Legal Advert 64560 1,500.00 693.00 1,834.11 122.27%
Misc Expenses 64580 0.00 0.00 459.94 0.00%
Total Legal 201,500.00 693.00 41,374.88 20.53%
Planning & Building Regulation 160
Economic Development
Services
63639 20,000.00 0.00 0.00 0.00%
Planning Services 63640 40,000.00 0.00 9,800.00 24.50%
Contract Services - Housing
Element
63642 0.00 0.00 12,845.90 0.00%
Building Inspections Services 63648 32,400.00 7,637.45 20,129.68 62.12% Engineering Services 63649 5,000.00 0.00 3,629.25 72.58% Code Enforcement Services 63656 5,000.00 332.00 954.50 19.09% Travel Expenses 64610 3,000.00 0.00 2,919.92 97.33%
Total Planning & Building
Regulation
105,400.00 7,969.45 50,279.25 47.70%
Government Buildings 180
Repair/Maintenance 63505 16,100.00 0.00 204.00 1.26%
Other Outside Services 63508 0.00 102.00 306.00 0.00%
Janitorial Services 63660 3,000.00 0.00 500.00 16.66%
Total Government Buildings 19,100.00 102.00 1,010.00 5.29% Non-Departmental 190
Materials/Supply 62410 6,200.00 0.00 65.24 1.05%
Telephone 63530 1,000.00 0.00 123.32 12.33%
Insurance-Liability 63620 12,830.00 0.00 6,414.74 49.99% Insurance-Property 63621 170.00 0.00 1,875.35 1,103.14% Membership Dues-Professional
Org
64550 4,300.00 0.00 0.00 0.00%
Membership Dues-Non Profit
Agency Contrib
64551 11,800.00 0.00 8,279.00 70.16%
Membership Dues-Government
Agency
64552 5,100.00 0.00 5,131.68 100.62%
Misc Expenses 64580 1,000.00 0.00 273.17 27.31%
S.M.I.P. 64930 200.00 0.00 18.99 9.49%
SB 1473 64940 100.00 29.27 29.27 29.27%
Total Non-Departmental 42,700.00 29.27 22,210.76 52.02% Police 210
Payroll 61105 1,081,000.00 78,330.64 449,015.83 41.53%
Overtime 61110 110,000.00 10,377.62 77,155.51 70.14%
Overtime-DEA 61111 44,000.00 0.00 11,545.18 26.23%
Reserves Payroll 61120 80,000.00 5,830.41 45,789.29 57.23% PERS UAL - After 06/30/18 61123 1,000.00 0.00 1,020.00 102.00% PERS UAL 61124 102,000.00 0.00 101,918.00 99.91%
PERS Retirement 61125 136,500.00 15,015.64 64,493.54 47.24% PERS 457 Expense 61126 32,400.00 3,600.00 14,700.00 45.37% Medicare-ER 61130 15,700.00 1,368.92 8,466.45 53.92%
Social Security-ER 61131 1,600.00 6.63 700.42 43.77%
Unemployment Ins-Fed & State 61132 10,500.00 1.60 107.55 1.02% Dental Expense 61135 17,900.00 1,284.77 7,599.11 42.45% Health Insurance 61140 296,400.00 (345.28) 92,785.38 31.30% Health Insurance -Retiree 61141 2,000.00 0.00 755.00 37.75% Vision Ins 61145 2,900.00 0.00 1,194.20 41.17%
Workers Comp and EAP 61150 172,400.00 0.00 88,182.44 51.14% Wellness Program 61155 5,300.00 0.00 0.00 0.00%
Uniform Allowance 61160 10,000.00 0.00 2,250.00 22.50% 19 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 100 - General Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Materials/Supply 62410 28,670.00 119.47 5,569.29 19.42% Ammunition 62420 5,000.00 3,905.89 3,905.89 78.11%
Body Armor Vests 62422 12,150.00 0.00 0.00 0.00%
Office Supplies 62430 3,000.00 108.91 1,360.48 45.34%
PD Safety Equip Lease -
Principal
62460 24,300.00 0.00 0.00 0.00%
PD Safety Equip Lease -
Interest
62461 1,000.00 0.00 0.00 0.00%
Auto Operations - Supplies /
Equip
62710 2,500.00 0.00 0.00 0.00%
Auto Operations - Fuel 62720 30,000.00 197.39 15,445.80 51.48% Repair/Maintenance 63505 14,000.00 0.00 480.00 3.42%
Other Outside Services 63508 0.00 0.00 2,501.16 0.00%
Shredding Services 63509 1,000.00 0.00 355.73 35.57%
Telephone 63530 14,000.00 727.32 6,868.34 49.05%
Internet 63531 2,500.00 378.31 3,645.02 145.80%
Annual Maintenance-Records
Management Software
63537 6,020.00 0.00 2,902.79 48.21%
Annual Maintenance 63538 3,400.00 0.00 0.00 0.00%
Annual Maintenance-MDT 63539 3,300.00 0.00 0.00 0.00%
Postage / Shipping 63540 500.00 0.00 68.43 13.68%
Training 63605 15,000.00 735.00 2,968.65 19.79%
Insurance-Liability 63620 125,435.00 0.00 80,673.30 64.31% Insurance-Property 63621 1,665.00 0.00 10,065.45 604.53% Audit-Finance 63625 4,500.00 0.00 0.00 0.00%
Contract Services - IT 63635 6,000.00 900.00 7,481.25 124.68% Contract Services-Others 63637 4,200.00 0.00 2,791.05 66.45% HR Services-RGS 63652 3,000.00 0.00 0.00 0.00%
Janitorial Services 63660 3,000.00 0.00 1,250.00 41.66% 911-Radio Dispatch 63665 58,500.00 0.00 41,280.13 70.56% 911-Inform MDT Terminal
Service
63666 1,500.00 0.00 0.00 0.00%
911-Notification System 63667 400.00 0.00 0.00 0.00%
911-NGEN O&M 63668 8,000.00 0.00 5,976.16 74.70%
911-NGEN Debt 63669 5,200.00 0.00 5,128.32 98.62%
Auto Repair/Maintenance 63730 14,000.00 0.00 8,605.90 61.47% Parking & Admin Citations
Services
63812 5,000.00 0.00 1,725.55 34.51%
Animal Regulation Fire 63820 500.00 0.00 239.00 47.80%
Fund Jail & Prisoner 63830 200.00 0.00 0.00 0.00%
ACJIS System 63840 9,000.00 0.00 0.00 0.00%
Software/Server Subscription 64310 12,000.00 325.00 12,840.05 107.00% Computer Server 64318 3,500.00 0.00 0.00 0.00%
Personnel Recruit &
Pre-Employment
64545 3,000.00 0.00 957.26 31.90%
Membership Dues-Professional
Org
64550 4,000.00 2,878.40 4,701.20 117.53%
Books and Periodicals 64565 900.00 0.00 0.00 0.00%
Printing / Publications 64575 3,000.00 0.00 1,079.21 35.97% Travel Expenses 64610 13,000.00 734.00 5,454.79 41.95%
Principal-Motorola
Lease-Cameras
65104 21,350.00 0.00 21,319.32 99.85%
Vehicle Replacement 66735 70,000.00 0.00 0.00 0.00%
Total Police 2,668,790.00 126,480.64 1,225,317.42 45.91% 20 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 100 - General Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Fire/Animal Control 220
Fire Seaside 63810 227,600.00 0.00 56,878.75 24.99%
Total Fire/Animal Control 227,600.00 0.00 56,878.75 24.99% Public Works/Streets 311
Payroll 61105 83,600.00 6,428.80 38,646.33 46.22%
Overtime 61110 3,000.00 0.00 0.00 0.00%
PERS UAL 61124 1,000.00 0.00 0.00 0.00%
PERS Retirement 61125 6,500.00 740.61 3,191.14 49.09%
Medicare-ER 61130 1,300.00 93.22 559.32 43.02%
Unemployment Ins-Fed & State 61132 100.00 0.00 0.00 0.00% Dental Expense 61135 1,600.00 126.98 761.88 47.61%
Health Insurance 61140 30,300.00 0.00 12,001.20 39.60%
Vision Ins 61145 300.00 0.00 99.06 33.02%
Workers Comp and EAP 61150 5,200.00 0.00 2,749.74 52.87% Wellness Program 61155 500.00 0.00 576.93 115.38%
Materials/Supply 62410 16,500.00 406.02 2,972.83 18.01% Office Supplies 62430 1,500.00 0.00 400.96 26.73%
Auto Operations - Supplies /
Equip
62710 2,500.00 0.00 645.97 25.83%
Auto Operations - Fuel 62720 5,000.00 0.00 2,281.62 45.63% Repair/Maintenance 63505 41,000.00 0.00 5,849.40 14.26% Other Outside Services 63508 0.00 0.00 440.00 0.00%
Gabilan Crew 63515 5,000.00 81.76 566.60 11.33%
Utilities - PG&E 63520 15,000.00 2,036.07 10,666.25 71.10% Utilities - Water 63525 4,000.00 81.02 2,814.02 70.35%
Telephone 63530 0.00 0.00 206.11 0.00%
Training 63605 5,000.00 0.00 675.00 13.50%
Insurance-Liability 63620 10,660.00 0.00 5,329.17 49.99% Insurance-Property 63621 140.00 0.00 775.50 553.92%
Insurance-Vehicles 63622 4,500.00 0.00 4,267.00 94.82%
Organic Waste Regs Services 63654 9,000.00 0.00 0.00 0.00% Auto Repair/Maintenance 63730 8,300.00 0.00 1,724.14 20.77% Printing / Publications 64575 1,250.00 0.00 770.86 61.66% Storm Water Project - Phase 4 64920 23,000.00 0.00 7,067.00 30.72% Equipment 66302 0.00 0.00 20,101.99 0.00%
Contingency 66905 27,780.00 0.00 0.00 0.00%
Total Public Works/Streets 313,530.00 9,994.48 126,140.02 40.23% Parks/Recreation 411
Materials/Supply 62410 15,500.00 682.52 7,535.04 48.61% Office Supplies 62430 0.00 0.00 68.19 0.00%
Repair/Maintenance 63505 25,000.00 235.00 6,682.00 26.72% Utilities - Water 63525 3,000.00 0.00 1,536.31 51.21%
Travel Expenses 64610 0.00 0.00 69.85 0.00%
Total Parks/Recreation 43,500.00 917.52 15,891.39 36.53% Total Expense 4,704,620.00 179,544.87 2,023,541.81 43.01% Other Financing Sources and Uses
Non Department Specific 000
Transfers Out to CIP 81001 (193,900.00) 0.00 0.00 0.00% Total Non Department Specific (193,900.00) 0.00 0.00 0.00% Total Other Financing Sources and
Uses
(193,900.00) 0.00 0.00 0.00%
Excess(Deficit) of Revenue Over
Expenditures
(193,900.00) 554,905.28 482,961.68 (249.07)%
21 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 210 - Gas Tax Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Revenue
Non Department Specific 000
Gas Tax 2103 47010 14,600.00 1,417.02 8,041.78 55.08%
Gas Tax 2105 47020 10,000.00 798.63 4,850.82 48.50%
Gas Tax 2106 47030 9,000.00 746.08 4,513.27 50.14%
Gas Tax 2107 47040 11,900.00 1,143.48 6,724.97 56.51%
Gas Tax 2107.5 47050 1,000.00 0.00 1,000.00 100.00%
Total Non Department Specific 46,500.00 4,105.21 25,130.84 54.04% Total Revenue 46,500.00 4,105.21 25,130.84 54.04%
Expense
Public Works/Streets 311
Street Sweeping 63510 10,000.00 0.00 0.00 0.00%
Street Lighting 63910 15,000.00 0.00 1,951.39 13.00%
Total Public Works/Streets 25,000.00 0.00 1,951.39 7.81% Total Expense 25,000.00 0.00 1,951.39 7.81%
Excess(Deficit) of Revenue Over
Expenditures
21,500.00 4,105.21 23,179.45 107.81%
22 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 211 - SB1 Fund-RMRA
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Revenue
Non Department Specific 000
SB 1 Funds 47777 38,900.00 2,843.76 15,670.05 40.28%
Total Non Department Specific 38,900.00 2,843.76 15,670.05 40.28% General Government (Header) 100
SB 1 Funds 47777 0.00 0.00 3,593.82 0.00%
Total General Government
(Header)

0.00 0.00 3,593.82 0.00%
Total Revenue 38,900.00 2,843.76 19,263.87 49.52%
Expense
Curb Repair 536
Curb and Gutter Repair 66327 20,000.00 0.00 0.00 0.00%
Total Curb Repair 20,000.00 0.00 0.00 0.00%
Saucito/Work Gutter & Curb 537
Curb and Gutter Repair 66327 40,000.00 0.00 0.00 0.00%
Total Saucito/Work Gutter & Curb 40,000.00 0.00 0.00 0.00% Via Verde Curb & Gutter Repair 538
Curb and Gutter Repair 66327 90,000.00 0.00 13,195.00 14.66% Total Via Verde Curb & Gutter
Repair
90,000.00 0.00 13,195.00 14.66%
Total Expense 150,000.00 0.00 13,195.00 8.80%
Excess(Deficit) of Revenue Over
Expenditures
(111,100.00) 2,843.76 6,068.87 (5.46)%
23 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 212 - Measure X Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Revenue
Non Department Specific 000
Measure X 47775 94,400.00 0.00 0.00 0.00%
Total Non Department Specific 94,400.00 0.00 0.00 0.00% Total Revenue 94,400.00 0.00 0.00 0.00%
Expense
Via Verde/Los Encinos Street
Repair
524
Street Improvements 66410 30,000.00 0.00 39,480.00 131.60% Total Via Verde/Los Encinos
Street Repair
30,000.00 0.00 39,480.00 131.60%
Angelus/Rosita Storm Drain
Repair (Engineering)
525
Street Improvements 66410 10,000.00 0.00 0.00 0.00%
Total Angelus/Rosita Storm
Drain Repair (Engineering)
10,000.00 0.00 0.00 0.00%
Angelus/Rosita Storm Drain
Repair (Construction)
526
Street Improvements 66410 60,000.00 0.00 0.00 0.00%
Total Angelus/Rosita Storm
Drain Repair (Construction)
60,000.00 0.00 0.00 0.00%
Debt Service - Measure X 610
Principal - Measure X Loan 65103 80,400.00 0.00 0.00 0.00% Interest - Measure X 65203 14,000.00 0.00 0.00 0.00%
Total Debt Service - Measure X 94,400.00 0.00 0.00 0.00% Total Expense 194,400.00 0.00 39,480.00 20.31%
Excess(Deficit) of Revenue Over
Expenditures
(100,000.00) 0.00 (39,480.00) 39.48%
24 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 221 - FORA Habitat Management Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Expense
Planning & Building Regulation 160
Contract Services - Habitat
Management Plan
63646 34,536.50 0.00 0.00 0.00%
Total Planning & Building
Regulation
34,536.50 0.00 0.00 0.00%
Total Expense 34,536.50 0.00 0.00 0.00%
Excess(Deficit) of Revenue Over
Expenditures
(34,536.50) 0.00 0.00 0.00%
25 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 223 - ARPA Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Expense
Police 210
Mobile Data Terminals 66305 5,998.17 0.00 465.55 7.76%
Portable Radios 66306 2,589.89 0.00 2,548.26 98.39%
Total Police 8,588.06 0.00 3,013.81 35.09%
City Hall Parking Lot Imp 527
Parking Lot Improvements &
Repairs
66425 100,000.00 0.00 0.00 0.00%
Total City Hall Parking Lot Imp 100,000.00 0.00 0.00 0.00% Total Expense 108,588.06 0.00 3,013.81 2.78%
Excess(Deficit) of Revenue Over
Expenditures
(108,588.06) 0.00 (3,013.81) 2.77%
26 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 231 - BSCC-Officer Wellness & Mental Health Grant
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Expense
Police 210
Law Enforcement Wellness App 64314 2,000.00 0.00 1,999.00 99.95% Total Police 2,000.00 0.00 1,999.00 99.95%
Total Expense 2,000.00 0.00 1,999.00 99.95%
Excess(Deficit) of Revenue Over
Expenditures
(2,000.00) 0.00 (1,999.00) 99.95%
27 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 235 - Asset Forfeitures
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Revenue
Police 210
Police Grants & Other
Reimbursements
47780 5,000.00 0.00 0.00 0.00%
Total Police 5,000.00 0.00 0.00 0.00%
Total Revenue 5,000.00 0.00 0.00 0.00%
Excess(Deficit) of Revenue Over
Expenditures
5,000.00 0.00 0.00 0.00%
28 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 301 - Capital Projects
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Expense
Housing Element 6th Cycle 532
Housing Element Cost - 6th
Cycle
63638 138,900.00 3,889.25 3,889.25 2.80%
Total Housing Element 6th Cycle 138,900.00 3,889.25 3,889.25 2.80% Vehicle Replacement 533
Vehicle Replacement 66735 35,000.00 0.00 0.00 0.00%
Total Vehicle Replacement 35,000.00 0.00 0.00 0.00%
City Hall Facility Repairs &
Upgrades
541
Repairs and Improvements 66322 10,000.00 0.00 0.00 0.00% Total City Hall Facility Repairs &
Upgrades
10,000.00 0.00 0.00 0.00%
Council Chamber Technology
Project
542
Technology Upgrades 66323 10,000.00 0.00 0.00 0.00%
Total Council Chamber
Technology Project
10,000.00 0.00 0.00 0.00%
Total Expense 193,900.00 3,889.25 3,889.25 2.01%
Other Financing Sources and Uses
Housing Element 6th Cycle 532
Transfers In from GF 82001 138,900.00 0.00 0.00 0.00%
Total Housing Element 6th Cycle 138,900.00 0.00 0.00 0.00% Vehicle Replacement 533
Transfers In from GF 82001 35,000.00 0.00 0.00 0.00%
Total Vehicle Replacement 35,000.00 0.00 0.00 0.00%
City Hall Facility Repairs &
Upgrades
541
Transfers In from GF 82001 10,000.00 0.00 0.00 0.00%
Total City Hall Facility Repairs &
Upgrades
10,000.00 0.00 0.00 0.00%
Council Chamber Technology
Project
542
Transfers In from GF 82001 10,000.00 0.00 0.00 0.00%
Total Council Chamber
Technology Project
10,000.00 0.00 0.00 0.00%
Total Other Financing Sources and
Uses
193,900.00 0.00 0.00 0.00%
Excess(Deficit) of Revenue Over
Expenditures

0.00 (3,889.25) (3,889.25) 0.00%
29 Item 1.

City of Del Rey Oaks
Statement of Revenues and Expenditures-YTD Budget v. Actual Detail 321 - SBR Engineering Fund
From 12/1/2023 Through 12/31/2023
Revised
FY 2024 Budget -
2023 Actual
December
Actual
FY 2024 YTD
Collected/Used
Percent
Expense
SBR Engineering 518
Contract Services - Engineering 63611 505,830.00 0.00 0.00 0.00% Total SBR Engineering 505,830.00 0.00 0.00 0.00%
Total Expense 505,830.00 0.00 0.00 0.00%
Excess(Deficit) of Revenue Over
Expenditures
(505,830.00) 0.00 0.00 0.00%
30 Item 1.
31 Item 2.
32 Item 2.
1 City Council Report
Dec 2023
Case # Date Offense Code 1 Offense Code Description
DROMPADOJResidentialCommercial
Case # Date Offense Code 1
23-312 12/01/2023 Information Only
23-313 12/01/2023 Information Only
23-314 12/02/2023 Information Only
23-315 12/02/2023 Outside Warrant/F
23-316 12/04/2023 Death Investigation
23-317 12/04/2023 Information Only
23-318 12/05/2023 ACN
23-319 12/06/2023 Void
23-320 12/07/2023 Information Only
23-321 12/07/2023 23152(A) VC
23-322 12/08/2023 Susp Circ
23-323 12/08/2023 Susp Circ
23-324 12/09/2023 Information Only
23-325 12/09/2023 Surrendered Property
23-326 12/11/2023 Information Only
23-327 12/11/2023 Information Only
23-328 12/11/2023 Lost Property
23-329 12/15/2023 368(D)(1) PC
23-330 12/19/2023 594(A)(2) PC
23-331 12/22/2023 484(A) PC
23-332 12/22/2023 Surrendered Property
23-333 12/27/2023 Information Only
23-334 12/28/2023 12500(A) VC
23-335 12/29/2023 Found Property
23-336 12/29/2023 Lost Property
23-337 12/30/2023 243(E)(1) PC
26 CASES
Chris Bourquin - Chief
33 Item 3.
2 Calls for Service Case Reports
Month YTD Month YTD
270 3,894 26 337
Alarms Citations
Residential Commercial MPAD Moving Parking Warning
Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD
2 18 5 37 9 68 3 124 36 344 4 230
34 Item 3.

Offense Reported
in 2023
Reported
in 2022
Percent
Change
Offenses
Cleared
Percent
Cleared
Percent Of
Category
Rate Per
100,000*
Murder 12 72 -83.33% 5 41.67% 0.20% 0.07
Negligent Manslaughter 1 14 -92.86% 0 0.00% 0.02% 0.01
Justifiable Homicide 0 2 -100.00% 0 0.00% 0.00% 0.00
Non-consensual Sex Offenses:

Rape 93 412 -77.43% 13 13.98% 1.53% 0.52
Sodomy 25 139 -82.01% 3 12.00% 0.41% 0.14
Sexual Assault with Object 9 79 -88.61% 0 0.00% 0.15% 0.05 Fondling 176 558 -68.46% 32 18.18% 2.89% 0.98
Aggravated Assault 1,616 4,912 -67.10% 827 51.18% 26.55% 8.96 Simple Assault 3,433 10,027 -65.76% 1,708 49.75% 56.41% 19.05 Intimidation 521 1,652 -68.46% 246 47.22% 8.56% 2.89
Kidnapping/Abduction 180 520 -65.38% 121 67.22% 2.96% 1.00 Consensual Sex Offenses:

Incest 0 1 -100.00% 0 0.00% 0.00% 0.00
Statutory Rape 17 73 -76.71% 1 5.88% 0.28% 0.09
Human Trafficking, Commercial
Sex Acts
1 20 -95.00% 1 100.00% 0.02% 0.01
Human Trafficking, Involuntary
Servitude
2 5 -60.00% 0 0.00% 0.03% 0.01
Crimes Against Persons Total 6,086 18,486 -67.08% 2,957 48.59% 24.85% 33.76 Robbery 496 1,565 -68.31% 170 34.27% 3.48% 2.75
Burglary/Breaking & Entering 1,308 6,152 -78.74% 175 13.38% 9.17% 7.26 Larceny/Theft Offenses 6,328 25,722 -75.40% 893 14.11% 44.36% 35.11 Motor Vehicle Theft 1,763 7,197 -75.50% 121 6.86% 12.36% 9.78 Arson 62 289 -78.55% 24 38.71% 0.43% 0.34
Destruction Of Property 2,635 9,182 -71.30% 426 16.17% 18.47% 14.62 Counterfeiting/Forgery 153 994 -84.61% 39 25.49% 1.07% 0.85 Fraud Offense 1,084 6,749 -83.94% 189 17.44% 7.60% 6.01 Embezzlement 46 237 -80.59% 8 17.39% 0.32% 0.26
Extortion/Blackmail 17 110 -84.55% 0 0.00% 0.12% 0.09
Bribery 2 0 NA 2 100.00% 0.01% 0.01
Stolen Property Offenses 372 1,601 -76.76% 283 76.08% 2.61% 2.06 Crimes Against Property Total 14,266 59,798 -76.14% 2,330 16.33% 58.25% 79.14 Drug/Narcotic Violations 1,921 6,472 -70.32% 1,705 88.76% 46.41% 10.66 Drug Equipment Violations 1,526 4,842 -68.48% 1,376 90.17% 36.87% 8.47 Gambling Offenses 0 6 -100.00% 0 0.00% 0.00% 0.00
Pornography/Obscene Material 44 141 -68.79% 4 9.09% 1.06% 0.24 Prostitution 13 85 -84.71% 11 84.62% 0.31% 0.07
Weapons Law Violation 624 2,353 -73.48% 469 75.16% 15.08% 3.46 Animal Cruelty 11 55 -80.00% 1 9.09% 0.27% 0.06
Crimes Against Society Total 4,139 13,954 -70.34% 3,566 86.16% 16.9% 22.96 Agency: All
Total Group "A" Offenses 24,491 92,238 -73.45% 8,853 36.15% 100% 135.87 Statewide Crime Profile * Adjusted population base: 18,025,722 2023 Crime in California

Note: The Rate per 100,000 will be 'NA' when the Adjusted Population Base is Zero.

Group A Offense Report
Beginning Date: 12/01/2023 Ending Date: 12/31/2023
Printed On: 01/08/2024

35 Item 3.

Offense Reported
in 2023
Reported
in 2022
Percent
Change
Offenses
Cleared
Percent
Cleared
Percent Of
Category
Rate Per
100,000*
Murder 0 0 NA 0 0.00% 0.00% NA
Negligent Manslaughter 0 0 NA 0 0.00% 0.00% NA
Justifiable Homicide 0 0 NA 0 0.00% 0.00% NA
Non-consensual Sex Offenses:

Rape 1 0 NA 0 0.00% 6.25% NA
Sodomy 1 0 NA 0 0.00% 6.25% NA
Sexual Assault with Object 0 0 NA 0 0.00% 0.00% NA
Fondling 0 1 -100.00% 0 0.00% 0.00% NA
Aggravated Assault 4 4 0.00% 1 25.00% 25.00% NA
Simple Assault 4 7 -42.86% 1 25.00% 25.00% NA
Intimidation 6 2 200.00% 4 66.67% 37.50% NA
Kidnapping/Abduction 0 0 NA 0 0.00% 0.00% NA
Consensual Sex Offenses:

Incest 0 0 NA 0 0.00% 0.00% NA
Statutory Rape 0 0 NA 0 0.00% 0.00% NA
Human Trafficking, Commercial
Sex Acts
0 0 NA 0 0.00% 0.00% NA
Human Trafficking, Involuntary
Servitude
0 0 NA 0 0.00% 0.00% NA
Crimes Against Persons Total 16 14 14.29% 6 37.5% 14.55% NA Robbery 0 0 NA 0 0.00% 0.00% NA
Burglary/Breaking & Entering 6 1 500.00% 0 0.00% 7.89% NA Larceny/Theft Offenses 39 77 -49.35% 10 25.64% 51.32% NA Motor Vehicle Theft 1 3 -66.67% 0 0.00% 1.32% NA
Arson 0 0 NA 0 0.00% 0.00% NA
Destruction Of Property 10 14 -28.57% 2 20.00% 13.16% NA Counterfeiting/Forgery 2 3 -33.33% 0 0.00% 2.63% NA
Fraud Offense 15 13 15.38% 2 13.33% 19.74% NA
Embezzlement 0 0 NA 0 0.00% 0.00% NA
Extortion/Blackmail 0 0 NA 0 0.00% 0.00% NA
Bribery 0 0 NA 0 0.00% 0.00% NA
Stolen Property Offenses 3 2 50.00% 3 100.00% 3.95% NA
Crimes Against Property Total 76 113 -32.74% 17 22.37% 69.09% NA Drug/Narcotic Violations 6 5 20.00% 5 83.33% 33.33% NA
Drug Equipment Violations 7 6 16.67% 6 85.71% 38.89% NA Gambling Offenses 0 0 NA 0 0.00% 0.00% NA
Pornography/Obscene Material 2 0 NA 1 50.00% 11.11% NA
Prostitution 0 0 NA 0 0.00% 0.00% NA
Weapons Law Violation 2 4 -50.00% 0 0.00% 11.11% NA
Animal Cruelty 1 0 NA 0 0.00% 5.56% NA
Crimes Against Society Total 18 15 20% 12 66.67% 16.36% NA Agency: All
Total Group "A" Offenses 110 142 -22.54% 35 31.82% 100% NA Statewide Crime Profile * Adjusted population base: 1 2023 Crime in California

Note: The Rate per 100,000 will be 'NA' when the Adjusted Population Base is Zero.

Group A Offense Report
Beginning Date: 01/01/2023 Ending Date: 12/31/2023
Printed On: 01/08/2024

36 Item 3.
1 2021 Monterey County Peninsula Cities Blueprint,
https://info.bluezonesproject.com/montereycounty.

DATE: January 23, 2024
TO: Honorable Mayor and City Council
FROM: John Guertin, City Manager
SUBJECT: Adoption of Tobacco Retailer License Ordinance and Smoke Free Public Places Ordinance (Second Reading)
CEQA: This activity is covered by the commonsense exemption that the California Environmental Quality Act (CEQA) applies only to projects that have the potential to have a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines.

Recommended Action
It is recommended that the City Council:

1. Adopt Ordinance 316 amending Title 5 of the Del Rey Oaks Municipal Code to add Chapter

5.28 “Tobacco Retailer License”; and

2. Adopt Ordinance 317 amending Title 9 of the Del Rey Oaks Municipal Code by deleting Section 9.05.100 “Smoking on Public Property” and amending Title 8 “Health and Safety” by adding Chapter 8.38 “Smoke Free Public Places”.

Background
An overview of the proposed ordinances was presented to the Council on October 24, 2023, and staff was directed to bring the attached ordinances to the Council for consideration. On December 19, 2023, the Council held the first reading of the proposed ordinances.

Discussion
Currently, the City of Del Rey Oaks is part of the of the Peninsula Cities work of Blue Zone Projects, a Monterey County-wide initiative committed to ensuring that all people have a fair and just opportunity to live a long and healthy life. One of the focal points for the Blue Zones Project is their “Tobacco Policy” which encourages local agencies to create an environment where smoking (including vaping) and the use of nicotine is less desirable, accessible, and acceptable.1 37 Item 1.
2 United States Department of Health and Human Services, The Health Consequences of Smoking: 50 Years of Progress. A Report of the Surgeon General (2014).
https://www.ncbi.nlm.nih.gov/books/NBK179276/pdf/Bookshelf_NBK179276.pdf 3United States Department of Health and Human Services, The Health Consequences of Involuntary Exposure to Tobacco Smoke, A Report of the Surgeon General (2006), https://www.cdc.gov/tobacco/sgr/2006/pdfs/no-riskfree.pdf 4 Tam D. Vuong, California Tobacco Facts and Figures, California Department of Health (2019) Tobacco Retailing License
Monterey County enacted an ordinance to establish tobacco licensing regulations. The County has asked local jurisdictions to adopt tobacco licensing ordinances mirroring the County so the County can enforce compliance with tobacco laws uniformly throughout the County. Attachment 1 (Comprehensive Tobacco Retail License Ordinance #316) would ensure tobacco retailers comply with tobacco control laws and business standards. This ordinance would also meet the Blue Zone’s intent to decrease secondhand smoke exposure (including aerosol from e-cigarettes and smoke from marijuana) and reduce access to, and availability of smoking, vaping, and tobacco products.

The proposed ordinance before the City Council is modeled after the County’s Ordinance (Attachment 3).

Smoke-Free Public Places
The Monterey County Health Department has advised staff that tobacco use is the number one cause of preventable deaths in California. 2 Secondhand smoke has repeatedly been identified as a health hazard and the U.S. Surgeon General has concluded that there is no risk-free level of exposure to secondhand smoke.3 Over the last decade, many California communities have passed tobacco-free laws or regulations that cover outdoor areas such as parks, recreational facilities, beaches, outdoor workplaces, restaurant and bar patios, transit waiting areas, and public events such as county fairs and farmers’ markets. As of January 2019, more than 235 California cities and counties had adopted outdoor secondhand smoke ordinances.4 Attachment 2 (Smoke-Free Public Place Ordinance #317) is based on a model ordinance that can be modified for local purposes to limit exposure to secondhand smoke.

These proposed ordinances are submitted for City Council consideration.

Fiscal Impacts
There are no fiscal impacts associated with consideration of this item.

Attachments
• Comprehensive Tobacco Retailer Licensing Ordinance #316 • Establishing a Smoke Free Public Place Ordinance #317 • Monterey County Code Chapter 7.80 TOBACCO RETAILER LICENSE Respectfully Submitted,
_______________________________
John Guertin
City Manager
38 Item 1.

ORDINANCE NO. 316
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DEL REY OAKS AMENDING TITLE 5 OF THE DEL REY OAKS MUNICIPAL CODE BY ADDING CHAPTER 5.28, “TOBACCO RETAILER LICENSE”
WHEREAS, the State of California enacted California Business and Professions Code, Division 8.6, entitled “Cigarette and Tobacco Products Licensing Act of 2003” (the “Act”) to control tobacco sales; and WHEREAS, the Act explicitly permits cities and counties to enact local tobacco retail licensing ordinances, and allows for the suspension or revocation of a local license for a violation of any state tobacco control law (Cal. Bus. & Prof. Code § 22971.3); and WHEREAS, pursuant to the authority established by the Act applicable to a local entity’s ability to adopt tobacco licensing regulations, Monterey County (“County”) enacted Ordinance 5200 adding Chapter 7.80, “Tobacco Retailer License” to the County Code establishing licensing requirements for tobacco retailing to “encourage responsible retailing of tobacco” and to “discourage violations of tobacco-related laws”; and
WHEREAS, over 200 cities and counties in California have passed tobacco retailer licensing ordinances in an effort to stop youth from using tobacco; and WHEREAS, a majority of cities within the County have adopted a tobacco retail licensing ordinance; and
WHEREAS, the City of Del Rey Oaks (“City”) has a substantial interest in protecting youth and underserved populations from the harms of tobacco use; and WHEREAS, despite the state’s efforts to limit youth access to tobacco, youth are still able to access tobacco products, as evidenced by the following: In 2022, 27.7 percent of retailers illegally sold tobacco to young adult decoys; almost 90% of adults who smoke began by age 18, and 99% began by age 26; disparities in tobacco use exist among California high school students, with higher rates found among LGBTQ, American Indian, and Pacific Islander youth; in 2023, 20.3% of high school students in California had tried some sort of tobacco product, and almost 18% of high school students have tried vapes; and WHEREAS, youth are more receptive to and influenced by tobacco advertising compared to adults, and the tobacco industry spends an estimated $485 billion in tobacco advertising in California each year; and
WHEREAS, research indicates that the density and proximity of tobacco retailers increase smoking behaviors, including number of cigarettes smoked per day, particularly in neighborhoods experiencing poverty; and
WHEREAS, the density of tobacco retailers near adolescents’ homes has been associated with increased youth smoking rates and initiation of noncigarette tobacco product use; and WHEREAS, adults who smoke are likely to have a harder time quitting when residential proximity to tobacco retailers is closer and density is higher; and 39 Item 1.

WHEREAS, the City Council finds that a local licensing system for tobacco retailers is appropriate to ensure that retailers comply with tobacco control laws and business standards of the City in order to protect the health, safety, and welfare of our residents; and WHEREAS, the County Health Department has asked for local jurisdictions to adopt tobacco licensing ordinances mirroring the County’s, so the County can enforce compliance with tobacco laws uniformly throughout the County and improve overall compliance while limiting sales to minors; and WHEREAS, City staff and County staff have a long history of working together to promote community health and wellness; and
WHEREAS, the activity is covered by the commonsense exemption that the California Environmental Quality Act (CEQA) applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA pursuant to Section 15061(b)(3) the CEQA Guidelines;

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF DEL REY OAKS DOES ORDAIN AS FOLLOWS:

Section 1. Findings.

1. The City Council finds and determines the recitals set forth above to be true and correct and by this reference, incorporates the same herein as findings.

2. The City Council finds that the recitals set forth above contain persuasive support for the proposition that the City has adequate authority to allow and regulate tobacco retail sales in the City.

3. The City Council hereby finds that it is in the best interest of the health, safety and welfare of the residents of the City to establish regulations that will license tobacco retail sales within the City.

4. The City wishes to adopt regulations that mirror County Code 7.80 so as to allow either the City or the County to oversee and enforce provisions applicable to licensing tobacco retailers.

Section 2. New Chapter 5.28, “Tobacco Retail Licensing” is hereby added to Title 5, BUSINESS LICENSES AND REGULATIONS, of the Del Rey Oaks Municipal Code as follows:

CHAPTER 5.28 - TOBACCO RETAILER LICENSE
Sections:
• 5.28.010 Monterey County Tobacco Retailer License Provisions Adopted

5.28.010 Monterey County Tobacco Retailer License Provisions Adopted A. Monterey County Code Chapter 7.80, titled “Tobacco Retailer License” pertaining to tobacco retailer products, as may be amended, is hereby adopted by the city and incorporated by reference into this Chapter, and made a part hereof, and shall be enforced within the limits of the city.

B. For purposes of the city, the following terms shall apply to incorporation of the Monterey County ordinance into this Chapter.
40 Item 1.

1. All reference to the term “unincorporated areas of the County of Monterey,” “County of Monterey,” “Monterey County,” or “County” in the Monterey County Code shall be amended to include the term “city limits of Del Rey Oaks.”

2. All reference to the term “County of Monterey,” “Monterey County,” or “County” in the Monterey County Code shall be amended to include the term “City of Del Rey Oaks.”

3. All reference to the term “Chapter” in the Monterey County Code shall be to the term “Chapter” in the Del Rey Oaks Municipal Code.

4. All reference to the term “Code” in the Monterey County Code shall be to the Del Rey Oaks Municipal Code.

5. All reference to the term “Board of Supervisors of the County of Monterey,” in the Monterey County Code shall be amended to include the term “Del Rey Oaks City Council.” C. Basis for Establishing the Tobacco Retail License Program. The Monterey County Code titled “Chapter

7.80 – Tobacco Retail License,” with accompanying Chapter section and all subsequent revisions or amendments, are hereby adopted by reference and declared to be a part of this Chapter.

D. A violation of the Monterey County ordinance is considered an infraction and a violation of the Del Rey Oaks Municipal Code and may be enforced pursuant to Chapter 1.19.

Section 3. Severability.

It is the intent of the City Council of the City of Del Rey Oaks to supplement applicable state and federal law and not to duplicate or contradict such law and this ordinance shall be construed consistently with that intention. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases of this ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase independently, even if any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases were declared invalid or unenforceable.

Further, if any section, subsection, subdivision, paragraph, sentence, clause, or phrase of Monterey County Code Chapter 7.80, titled “Tobacco Retailer License”, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases of this ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase of Monterey County Code Chapter 7.80 independently, even if any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases were declared invalid or unenforceable.

Section 4. Effective Date.
41 Item 1.

This ordinance shall be in full force and effect thirty (30) days following its passage and adoption, as certified by the City Clerk. This foregoing ordinance was introduced at a regular meeting of the City Council and read on the 19th day of December 2023 and was adopted on the XXth day of XXX 202X, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

SIGNED:
_______________________________
Scott Donaldson, Mayor
ATTEST:
___________________________
Karen Minami, City Clerk
42 Item 1.

ORDINANCE NO. 317
AN ORDINANCE OF THE CITY OF DEL REY OAKS AMENDING TITLE 9, “CONDUCT ON PUBLIC PROPERTY,” OF THE DEL REY OAKS MUNICIPAL CODE BY DELETING SECTION 9.05.100, “SMOKING ON PUBLIC PROPERTY,” AND AMENDING TITLE 8, “HEALTH AND SAFETY,” OF THE DEL REY OAKS MUNICIPAL CODE BY ADDING CHAPTER 8.38, “SMOKE FREE PUBLIC PLACES,”

TO REGULATE SMOKING AND TOBACCO USE
WHEREAS, secondhand smoke has been repeatedly identified as a health hazard; and WHEREAS, exposure to secondhand smoke anywhere has negative health impacts, and exposure to secondhand smoke can occur at significant levels outdoors; and WHEREAS, smoking cigarettes near building entryways can increase air pollution levels by more than two times background levels, with maximum levels reaching the “hazardous” range on the United States Environmental Protection Agency’s Air Quality Index; and WHEREAS, exposure to secondhand smoke causes death and disease, as since 1964 approximately 2.5 million nonsmokers have died from health problems caused by exposure to secondhand smoke; and
WHEREAS, secondhand smoke was responsible for an estimated 34,000 heart disease-related and 7,300 lung cancer-related deaths among adult nonsmokers each year during 2005 - 2009 in the United States; and
WHEREAS, secondhand cannabis smoke has been identified as a health hazard, as evidenced by the following:
• The California Environmental Protection Agency includes cannabis smoke on the Proposition 65 list of chemicals known to the state of California to cause cancer; • Cannabis smoke contains at least 33 known carcinogens; • In one study, exposure to cannabis smoke in an unventilated setting resulted in detectible levels of cannabinoids in non-smoker participants’ blood and urine, and participants experienced minor increases in heart rate and impaired cognitive performance; and
• A recent systematic review of the literature concluded that secondhand exposure to cannabis smoke leads to cannabinoid metabolites in bodily fluids and individuals experiencing self-reported psychoactive effects; and
WHEREAS, significant disparities in tobacco use exist in California, which create barriers to health equity as African American (17.0%) and American Indian (19.1%) Californians report a higher smoking prevalence than white Californians (11.8%); and WHEREAS, Californians with the highest levels of educational attainment and annual household income report the lowest smoking rates; and
WHEREAS, smokeless tobacco is not a safe alternative to smoking and causes its own share of death and disease, as smokeless tobacco use can lead to nicotine addiction, and cause oral, esophageal, and pancreatic cancers; and
43 Item 1.

WHEREAS, smokeless tobacco use is associated with increased risk for heart disease and stroke and stillbirth and preterm delivery; and
WHEREAS, electronic smoking device aerosol may be considered a health hazard, as evidenced by the following:
• Research has found electronic smoking device aerosol contains at least 12 chemicals known to the State of California to cause cancer, birth defects, or other reproductive harm, such as formaldehyde, acetaldehyde, lead, nickel, chromium, arsenic, and toluene; • Electronic smoking device aerosol is not harmless water vapor as it contains varying concentrations of particles and chemicals with some studies finding particle sizes and nicotine concentrations similar to, or even exceeding, conventional cigarette smoke; • Evidence continues to build that exposure to electronic smoking device aerosol, including secondhand exposure, has immediate impacts on the human respiratory and cardiovascular systems, and poses a risk to human health; and • Given the increasing prevalence of electronic smoking device use, especially among youth and young adults, widespread nicotine exposure resulting in addiction and other harmful consequences of serious concerns; and
WHEREAS, the activity is covered by the commonsense exemption that the California Environmental Quality Act (CEQA) applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA pursuant to Section 15061(b)(3) the CEQA Guidelines;

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF DEL REY OAKS DOES ORDAIN AS FOLLOWS:

Section 1. Findings.

The City Council finds and determines the recitals set forth above to be true and correct and by this reference, incorporates the same herein as findings.

Section 2. Existing Municipal Code section 9.05.100 of Chapter 9.05, titled “Smoking On Public Property” shall be amended by the deletion of all text as shown in strikeout (strikeout text) below:

9.05.100 - Smoking on public property.

No person shall smoke a cigar, cigarette, pipe or other smoking material, in any city building or portion thereof, except in those areas wherein "smoking permitted" signs are posted.

Section 3. New Chapter 8.38, “Smoke Free Public Places” is hereby added to Title 8, HEALTH AND SAFETY, of the Del Rey Oaks Municipal Code as follows:

CHAPTER 8.38 SMOKE FREE PUBLIC PLACES
Sections:

8.38.010 Purpose and Intent.

8.38.020 Definitions.
44 Item 1.

8.38.030 Prohibition of Smoking in Unenclosed Areas.

8.38.040 Smoke Free Buffer Zones.

8.38.050 Tobacco Waste.

8.38.060 Enforcement.

8.38.070 Violation and Penalties.

8.38.010 Purpose and Intent.

The council of the City of Del Rey Oaks hereby finds:
(a) Numerous studies have found that tobacco smoke is a major contributor to indoor air pollution; and
(b) Reliable studies have shown that breathing secondhand smoke is a significant health hazard for certain population groups, including elderly people, those with cardiovascular disease, and those with impaired respiratory function, including asthmatics and those with obstructive airway disease; and
(c) Health hazards induced by breathing secondhand smoke include lung cancer, respiratory infection, decreased exercise tolerance, decreased respiratory function, bronchoconstriction, and bronchospasm; and
(d) The smoking or vaping of tobacco, or any other plant or substance, is a proven danger to health; and
(e) Section 6404.5 of the California Labor Code prohibits smoking in a “place of employment,” with certain exceptions, and provides that local government may regulate smoking in any areas not included within the definition of place of employment. The provisions of this chapter are intended to prohibit smoking in areas deemed by the council as worthy of regulation, such areas, in the opinion of the council, not covered by Labor Code Section 6404.5, as may be amended. (f) The use of electronic smoking devices has increased significantly in recent years, and studies on electronic smoking devices’ vapor emissions and cartridge contents have found a number of dangerous substances.

8.38.020 Definitions.

For the purposes of this chapter the following definitions shall govern unless the context clearly requires otherwise.

A. “Cannabis” has the meaning set forth in California Business and Professions Code Section 26001, as that section may be amended from time to time.

B. “Electronic smoking device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an ecigarette, e-cigar, e-pipe, vape pen, or e-hookah. This shall not include inhalers or medical devices prescribed by a physician for medical purposes.
45 Item 1.

C. “Enclosed area” means all space between a floor and a ceiling that is bounded by walls, doorways, or windows, whether open or closed, covering more than 50 percent of the combined surface area of the vertical planes constituting the perimeter of the area. A wall includes any retractable divider, garage door, or other physical barrier, whether temporary or permanent.

D. “Multi-unit Residence” means property containing three or more units, including, but not limited to, apartment buildings, common interest developments, senior and assisted living facilities, and long-term health care facilities.

E. “Outdoor Dining Area” means any publicly or privately owned outdoor area, including streets and sidewalks, that is available to or customarily used by the general public or an employee, and that is designed, established, or regularly used for consuming food or drink.

F. “Person” means any natural person, business, corporation, partnership, cooperative association, personal representative, receiver, trustee, assignee, or any other legal entity.

G. “Public event areas” means any publicly or privately owned place used for an event open to the general public, regardless of any fee or age requirement, including a farmers’ market, parade, fair, or festival.

H. “Public place” means any publicly or privately owned place that is open to the general public, regardless of any fee or age requirement, including public parks, streets, parking lots, plazas, shopping areas, stadiums, or sporting facilities.

I. “Recreational area” means any publicly or privately owned area, including streets and sidewalks located within the area, that is open to the general public for recreational purposes, regardless of any fee or age requirement. The term “Recreational Area” includes, but is not limited to, facilities, parks, playgrounds, athletic fields, restrooms, picnic areas, spectator and concession areas, walking paths, gardens, vernal ponds, hiking trails, bike paths, riding trails, roller and ice-skating rinks, and skateboard parks.

J. “Service area” means any publicly or privately owned area, including streets and sidewalks, designed to be used or is regularly used by one or more persons to receive a service, wait to receive a service, or to make a transaction, whether or not such service or transaction includes the exchange of money. The term “service area” includes, but is not limited to, areas including or within 25 feet of information kiosks, automatic teller machines (ATMs), service lines, bus stops or shelters, or cab stands.

K. “Service lines” means an outdoor line, in any publicly or privately owned area, in which one or more persons are waiting for or receiving service of any kind, whether or not the service involves the exchange of money, including but not limited to, ATM lines, concert lines, food vendor lines, mobile vendor lines, movie ticket lines, and sporting event lines.

L. “Smoke” or “Smoking” means: (1) inhaling, exhaling, or burning, any tobacco, nicotine, cannabis, or plant product, whether natural or synthetic; (2) carrying any lighted, heated, or activated tobacco, nicotine, cannabis, or plant product, whether natural or synthetic, intended for inhalation; or (3) using an electronic smoking device or hookah.
46 Item 1.

M. “Tobacco Product” means any substance containing tobacco leaf, including but not limited to cigarettes, cigars, pipe tobacco, hookah, tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco, and any product or formulation of matter containing biologically active amounts of nicotine that is product or matter that will be introduced into the human body.

N. “Tobacco product waste” means any component, part, or remnant of any tobacco product.

Tobacco product waste includes any waste that is produced from the use of a tobacco product, including all tobacco product packaging and incidental waste such as lighters or matches, whether or not it contains tobacco or nicotine.

O. “Tobacco use” means the act of smoking or the consumption of any other tobacco product in any form.

P. “Unenclosed area” means any area that is not an enclosed area.

8.38.030 Prohibition of Smoking in Unenclosed Areas.

A. Smoking is prohibited in the unenclosed areas of the following places within the city:

1. Recreational areas

2. Service areas

3. Outdoor dining areas

4. Public event areas

5. Sidewalks

6. Public places
B. Nothing in this chapter prohibits any person or employer with control over any property from prohibiting smoking and tobacco use on any part of such property, even if smoking or tobacco use is not otherwise prohibited in that area.

8.38.040 Smoke Free Buffer Zones
Smoking in all unenclosed areas shall be prohibited within 25 feet from any area in which smoking is prohibited under Section 8.38.030 of this chapter or by any other law. This prohibition shall not apply to unenclosed areas of private residential properties that are not multi-unit residences.

8.38.050 Tobacco Waste
A. No person or employer shall permit smoking ash receptacles within an area under their control and in which smoking is prohibited by law, including within twenty-five (25) feet from any area in which smoking is prohibited. The presence of smoking ash receptacles in violation of this subsection shall not be a defense to a charge of smoking in violation of any provision of this chapter.

B. No person shall dispose of tobacco product waste within the boundaries of an area in which smoking is prohibited.

8.38.060 Enforcement
A. No person shall permit smoking or tobacco use in an area that is under the control of that person and in which smoking, or tobacco use is prohibited by this article or any other law. 47 Item 1.

B. Event organizers shall post no smoking signs at an entrance to the event. Signs shall have letters of no less than one inch in height and shall include the international “No Smoking” symbol and may be printed.

C. A person that has control of an area in which smoking and tobacco use is prohibited by this chapter shall direct anyone who is smoking or using tobacco in violation of this chapter to extinguish the product being smoked or stop using the tobacco product.

D. No person shall intimidate, threaten any reprisal, or effect any reprisal, for the purpose of retaliating against another person who seeks to attain compliance with this chapter.

8.38.070 Violations and Penalties.

Enforcement of these provisions shall be governed by Chapters 1.19 of the Del Rey Oaks Municipal Code. Each instance of smoking or tobacco use in violation of this chapter shall be an infraction and constitute a separate violation. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity.

Section 3. California Environmental Quality Act (CEQA).

The adoption of this ordinance is exempt from the California Environmental Quality Act, based on 14 California Code of Regulations Section 15061(b)(3), where, as the case here, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment because no change in existing permitted uses of land results from adoption of this ordinance, and to the extent impacts associated with the proposed location of cultivation and manufacturing facilities exist, they have been previously addressed in other environmental documents.

Section 4. Severability.

It is the intent of the City Council of the City of Del Rey Oaks to supplement applicable state and federal law and not to duplicate or contradict such law and this ordinance shall be construed consistently with that intention. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases of this ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase independently, even if any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases were declared invalid or unenforceable.

Section 5. Effective Date.

This ordinance shall be in full force and effect thirty (30) days following its passage and adoption, as certified by the City Clerk.

This ordinance was introduced and read on the 19th day of December 2023 and was finally adopted on the XXth day of XXX 202X, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:
48 Item 1.

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

SIGNED:
_______________________________
Scott Donaldson, Mayor
ATTEST:
_______________________________
Karen Minami, City Clerk
49 Item 1.

ATTACHMENT 3 Title 7 - BUSINESS TAXES, LICENSES AND REGULATIONS Chapter 7.80 TOBACCO RETAILER LICENSE
Monterey County, California, Code of Ordinances Created: 2023-08-21 13:07:18 [EST] (Supp. No. 51)

Chapter 7.80 TOBACCO RETAILER LICENSE

7.80.010 Purpose and application.

A. In promoting the health, safety, and general welfare of its residents, the County has a substantial interest in encouraging compliance with Federal, State, and local laws regulating tobacco sales and use.

B. State law permits local governments to enact ordinances regarding the local licensing of retailers of tobacco and allows for the suspension or revocation of a local license for a violation of any State tobacco control law.

C. This Chapter is adopted to: (1) ensure compliance with business standards and practices of the County; (2) encourage responsible retailing of tobacco; (3) promote the health and welfare of youth by discouraging the commercial exploitation of underage tobacco users; and (4) discourage violations of tobacco-related laws, but not to expand or reduce the degree to which the acts regulated by Federal or State law are criminally proscribed or otherwise regulated.

D. This Chapter applies in the unincorporated area of the County of Monterey. (Ord. No. 5200, § 1, 5-15-2012; Ord. No. 5372 , § 2, 3-15-2022)

7.80.020 Definitions.

For the purpose of this Chapter, the following words and terms shall have the following meaning:

A. "Department" means the Monterey County Health Department.

B. "Drug paraphernalia" shall have the definitions set forth in California Health and Safety Code Section 11014.5, as that Section may be amended from time to time.

C. "Flavored tobacco product" shall mean any tobacco product that contains a taste or smell, other than the taste or smell of tobacco, that is distinguishable by a consumer either prior to, or during the consumption of, a tobacco product, including but not limited to, any taste or smell relating to fruit, menthol, mint, wintergreen, chocolate, cocoa, vanilla, honey or any candy, dessert, alcoholic beverage, herb or spice.

D. "Health Officer" means the Health Officer of the County of Monterey or his or her designee.

E. "License" means a Tobacco Retailer License issued by the County pursuant to this Chapter.

F. "Licensee" means any Proprietor holding a License issued by the County pursuant to this Chapter.

G. "License Fee" means the charge established by resolution of the Board of Supervisors of the County of Monterey, calculated to recover the reasonable regulatory costs of issuing and administering licenses, retailer education, performing investigations, inspections, and the administrative enforcement and adjudication thereof.

H. "Person" means any natural person, partnership, cooperative, association, corporation, personal representative, receiver, trustee, assignee, or any other legal entity.

I. "Proprietor" means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten (10) percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest 50 Item 1.

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shall be deemed to exist when a person can or does have or share ultimate control over the day-to-day operations of a business.

J. "Tobacco paraphernalia" means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed or used for the smoking or ingestion of tobacco products.

K. "Tobacco product" means any substance containing tobacco leaf- including but not limited to cigarettes, cigars, pipe tobacco, hookah, tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco - and any product or formulation of matter containing biologically active amounts of nicotine that is product or matter will be introduced into the human body, but does not include any product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco product dependence.

L. "Tobacco retailer" means any person who engages in tobacco retailing.

M. "Tobacco retailing" means selling, offering for sale, exchanging, or offering to exchange for any form of consideration, tobacco, tobacco products, or tobacco paraphernalia without regard to the quantity sold, offered for sale, exchanged, or offered for exchange.

N. "Sale," "sell" or "to sell" means any transaction where, for any consideration, ownership is transferred from one (1) person or entity to another including, but not limited to any transfer of title or possession for consideration, exchange or barter, in any manner by any means.

O. "Single use electronic cigarette" means any single-use device or delivery system sold in combination with nicotine which can be used to deliver to a person nicotine in aerosolized or vaporized form, including but not limited to, a single-use e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. Single use electronic cigarettes shall not include any product that has been approved by the Food and Drug Administration for sale as a tobacco cessation product or other therapeutic purposes where that product is marketed and sold solely for such approved use.

P. "State" means the State of California.
(Ord. No. 5200, § 1, 5-15-2012; Ord. No. 5372 , § 2, 3-15-2022)

7.80.030 Mandatory license.

A. Any person who is or intends to become a tobacco retailer shall obtain pursuant to this Chapter a license for each fixed location at which tobacco retailing is to occur.

B. Any person who is a tobacco retailer as of the effective date of the ordinance enacting this Chapter shall obtain a license within ninety (90) days of the effective date of the ordinance that enacted this Chapter.

C. Any person who intends to act as a tobacco retailer shall obtain a license prior to acting as a tobacco retailer.

D. Each license shall be prominently displayed in a publicly visible location at the licensed location.

E. Nothing in this Chapter shall be construed to grant any licensee any status or right other than to act as a tobacco retailer at the location identified on the face of the license, subject to compliance with all other applicable laws, regulations, or ordinances.

F. Nothing in this Chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law.
(Ord. No. 5200, § 1, 5-15-2012)
51 Item 1.

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7.80.040 Issuance of license.

A. No license shall be issued to authorize tobacco retailing at other than a fixed business location. It is unlawful for any person to engage in tobacco retailing at non-fixed locations. For example, tobacco retailing by persons on foot and tobacco retailing from vehicles are prohibited.

B. No license shall be issued to authorize tobacco retailing at a temporary or recurring temporary event. For example, tobacco retailing at flea markets and farmers' markets is prohibited.

C. No license shall be issued to authorize tobacco retailing at any location for which a license suspension is in effect or during a period of ineligibility following a revocation pursuant to Section 7.80.100.

D. In the course of tobacco retailing or in the operation of the business or maintenance of the location for which a license issued, it shall be a violation of this Chapter for a licensee, or any of the licensee's agents or employees, to violate any local, State, or Federal law applicable to tobacco products, tobacco paraphernalia, or tobacco retailing.

E. No person engaged in tobacco retailing shall sell or transfer a tobacco product or tobacco paraphernalia to another person who appears to be under the age of twenty-seven (27) without first examining the identification of the recipient to confirm that the recipient is at least the minimum age under State law to purchase and possess the tobacco product or tobacco paraphernalia.

F. No person who is younger than the minimum age established by State law for the purchase or possession of tobacco products shall engage in tobacco retailing.

G. It shall be a violation of this Chapter for any tobacco retailer or any of the tobacco retailer's agents or employees to sell or offer for sale, or to possess with intent to sell or offer for sale, any flavored tobacco product.

1. It should be a rebuttable presumption that a tobacco retailer in possession of four (4) or more flavored tobacco products, including, but not limited to, individual flavored tobacco products, packages of flavored tobacco products, or any combination thereof, possesses such flavored tobacco products with intent to sell or offer for sale.

2. There shall be a rebuttable presumption that a tobacco product is a flavored tobacco product if a tobacco retailer, manufacturer, or any employee or agent of a tobacco retailer or manufacturer has:
a. Made a public statement or claim that the tobacco product imparts a characterizing flavor; b. Used text and/or images on the tobacco products' labeling or packaging to explicitly or implicitly indicate that the tobacco product imparts a characterizing flavor; or c. Taken action directed to consumers that would be reasonably expected to cause consumers to believe the tobacco product imparts a characterizing flavor.

H. It shall be a violation of this Chapter for any tobacco retailer or any of the tobacco retailer's agents or employees to sell or offer for sale, or to possess with intent to sell or offer for sale, any single use electronic cigarette.
(Ord. No. 5200, § 1, 5-15-2012; Ord. No. 5372 , § 2, 3-15-2022)

7.80.050 Applications for license.

All applications for a license shall be submitted to the Department in the name of each proprietor proposing to conduct tobacco retailing and signed by each prospective proprietor or an authorized agent. Each license application must be accompanied by the required license fee, which is set by resolution of the Board of 52 Item 1.

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Supervisors. A proprietor proposing to conduct tobacco retailing at more than one (1) location shall submit a separate application for each location. Every application shall contain the following information:

A. The name, address, and telephone number of each prospective proprietor; B. The business name, address, and telephone number of the fixed location for which the license is sought;
C. Whether or not each prospective proprietor has previously been issued a license pursuant to this Chapter that is, or was at any time, suspended or revoked and, if so, the date of the suspension or revocation;
D. Proof that the location for which a license is sought has been issued a valid State cigarette and tobacco products retail license by the State of California Board of Equalization pursuant to the California Cigarette and Tobacco Products Licensing Act of 2003 (Cal. Bus. & Prof. Code, §§ 22970 et seq.); E. A statement signed by each prospective proprietor that no drug paraphernalia is or will be sold at the location for which the license is sought;
F. A statement signed by each prospective proprietor that the proprietor is informed of the laws affecting licenses; and
G. Such other information as the County deems necessary for the administration of this Chapter. (Ord. No. 5200, § 1, 5-15-2012)

7.80.060 Issuance of a license.

A. Upon the receipt of a complete application for a license and the license fee required by this Chapter, the Health Officer shall issue a license unless one (1) or more of the following grounds exists:

1. The application is incomplete or inaccurate;

2. The application seeks authorization for tobacco retailing at a location for which a suspension is in effect pursuant to this Chapter, for which a license has been revoked pursuant to this Chapter, or for which this Chapter otherwise prohibits issuance of licenses;

3. The application seeks authorization for tobacco retailing for a prospective proprietor for whom a suspension is in effect pursuant to this Chapter for the subject location or another location, whose License has been revoked pursuant to this Chapter for the subject location or another location, or to whom this Chapter otherwise prohibits a license to be issued;

4. The Department has information that the prospective proprietor or his or her agent or employee has violated any local, State or Federal tobacco control law, including this Chapter, within the preceding twelve (12) months; or

5. The application seeks authorization for tobacco retailing that is prohibited pursuant to this Chapter, that is otherwise unlawful pursuant to this Code, or that is unlawful pursuant to any other local, State, or Federal law.

B. Any denial of an application for a license shall be in writing, setting forth the reasons for the denial and notifying the applicant for a license that the decision to deny an application for a license shall become final unless the applicant seeks an appeal pursuant to Section 7.80.130 within fourteen (14) calendar days of the date of service of the Health Officer's decision. Service of the decision shall be provided in accordance with the service requirements set forth in Subsection A of Section 7.80.120. 53 Item 1.

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C. All information required to be submitted pursuant to Section 7.80.050 in order to apply for a license shall be updated whenever the information changes. A tobacco retailer shall provide the Department with any updates within ten (10) business days of a change.
(Ord. No. 5200, § 1, 5-15-2012)

7.80.070 License renewal and expiration.

A. A license is invalid unless the appropriate license fee has been paid in full and the term of the license has not expired. The term of a license is one (1) year beginning each fiscal year on July 1st and ending on June 30th of the following year. Each tobacco retailer shall apply for the renewal of his or her license and submit the license fee no later than thirty (30) calendar days prior to expiration of the term.

B. A license that is not timely renewed shall expire at the end of its term. To reinstate a license that has expired, or to renew a license not timely renewed pursuant to Subsection A of this Section, the proprietor must:

1. Submit the license fee; and

2. Submit a signed affidavit affirming that the proprietor:
a. Has not sold and will not sell any tobacco product or tobacco paraphernalia after the license expiration date and before the license is renewed; or
b. Has waited the appropriate ineligibility period established for tobacco retailing without a license, as set forth in Section 7.80.110, before seeking renewal of the license. (Ord. No. 5200, § 1, 5-15-2012)

7.80.080 License nontransferable.

A. A license may not be transferred from one person to another or from one location to another. Whenever a tobacco retailing location has a change in proprietors, a new license is required.

B. Notwithstanding any other provision of this Chapter, prior violations at a location shall continue to be counted against a location, and license ineligibility periods shall continue to apply to a location unless:

1. The location has been fully transferred to an entirely new proprietor or fully transferred to entirely new proprietors; and

2. The new proprietor(s) provides the Department with clear and convincing evidence that the new proprietor(s) has acquired or is acquiring the location in an arm's length transaction. As used in this Section, the term "arm's length transaction" shall mean a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two (2) informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this Chapter is not an arm's length transaction. (Ord. No. 5200, § 1, 5-15-2012)

7.80.090 Inspections, investigations and enforcement.

A. Compliance with this Chapter shall be monitored by the Department or any law enforcement officer.

Employees of the Department or a law enforcement officer may conduct compliance checks, including but 54 Item 1.

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not limited to youth decoy operations. Any law enforcement officer may enforce the penal provisions of this Chapter. Compliance checks may be unannounced.

B. The County shall not enforce any tobacco-related minimum age law against a person who otherwise might be in violation of such law because of the person's age (hereinafter "youth decoy") if the potential violation occurs when:

1. The youth decoy is participating in a compliance check supervised by an employee of the Department or a law enforcement officer;

2. The youth decoy is acting as an agent of a person designated by the County to monitor compliance with this Chapter;

3. The youth decoy is participating in a compliance check funded in part, either directly or indirectly through subcontracting, by the Department; or

4. The youth decoy has an immunity letter from the District Attorney's Office.

C. Whenever evidence of a violation of this Chapter is obtained in any part through the participation of a person under the age of eighteen (18) years old, such a person shall not be required to appear or give testimony in any civil or administrative process brought to enforce this Chapter and the alleged violation shall be adjudicated based upon the sufficiency and persuasiveness of the evidence presented. (Ord. No. 5200, § 1, 5-15-2012)

7.80.100 Suspension or revocation of license.

A. In addition to any other remedy authorized by law, after notice and opportunity to be heard pursuant to Section 7.80.120 of this Chapter, a license may be suspended or revoked as provided in this Section if the Health Officer finds by a preponderance of the evidence that the licensee, or any of the licensee's agents or employees, has:

1. Violated any of the requirements, conditions prohibitions of this Chapter; or

2. Pleaded guilty, "no contest" or its equivalent, or admitted to any of the following:
a. The original or renewal application contained incorrect, false, or misleading information; b. One or more of the grounds for denial listed in Section 7.80.060 existed before the license was issued; or
c. A licensee is convicted of a misdemeanor or felony violation of any Federal, State, or local tobacco retailing law or regulation, including any provision of this Chapter.

B. During any period of suspension or revocation, the licensee shall remove all tobacco products and tobacco paraphernalia from public view. Failure to do so may be considered a subsequent violation.

C. When the Health Officer finds a violation as set forth in Subsection A of this Section, the license shall be suspended or revoked as follows:

1. Upon a finding by the Health Officer of a first license violation, the license shall be suspended for sixty (60) days;

2. Upon a finding by the Health Officer of a second license violation within any sixty (60) month period, the license shall be suspended for one hundred twenty (120) days;

3. Upon a finding by the Health Officer of a third license violation in any sixty (60) month period, the license shall be suspended for one hundred eighty (180) days; and 55 Item 1.

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4. Upon a finding by the Health Officer of a fourth license violation within any sixty (60) month period, the license shall be revoked and no new license shall issue for the location until five (5) years has passed from the date of revocation.

D. Violation by a licensee at one location shall not be construed as a violation at another location of the same licensee, nor shall violations by a prior licensee at the same location be accumulated against a subsequent licensee at the same location.

E. A license shall be revoked if the Health Officer finds that one or more of the grounds for denial of an application for a license pursuant to Section 7.80.060 existed at the time the application was made or at any time before the license was issued.
(Ord. No. 5200, § 1, 5-15-2012)

7.80.110 Penalties for tobacco retailing without a license.

A. In addition to any other penalty authorized by law, if a court of competent jurisdiction determines, or the Health Officer finds after notice and opportunity to be heard pursuant to Section 7.80.120 of this Chapter, that any person has engaged in tobacco retailing at a location without a valid license, either directly or through the person's agents or employees, the person shall be ineligible to apply for, or to be issued, a License as follows:

1. After a first violation of this Section at a location, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm's length transaction), until sixty (60) days have passed from the date of the violation.

2. After a second violation of this Section at a location within any sixty (60) month period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm's length transaction), until one hundred eighty (180) days have passed from the date of the violation.

3. After a third or subsequent violation of this Section at a location within any sixty (60) month period, no new license may issue for the person or the location (unless ownership of the business at the location has been transferred in an arm's length transaction), until five (5) years have passed from the date of the violation.

B. Any imposition of a penalty pursuant to this Section shall be in writing, setting forth the reasons for the imposition of a penalty and notifying the person subject to the penalty that the decision to impose the penalty shall become final unless the person seeks an appeal pursuant to Section 7.80.130 within fourteen (14) calendar days of the date of service of the Health Officer's decision. Service of the decision shall be provided in accordance with the service requirements set forth in Subsection A of Section 7.80.120. (Ord. No. 5200, § 1, 5-15-2012)

7.80.120 Health Officer decision.

A. Upon determining the existence of any of the grounds pursuant to this Chapter for the suspension or revocation of a license, or the imposition of a penalty for tobacco retailing without a license, the Health Officer shall issue a notice of intended decision to the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed. The notice shall be provided by personal service or by first class mail, postage prepaid, and shall include a copy of the affidavit or certificate of mailing.
56 Item 1.

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B. The notice of intended decision shall state all the grounds upon which the revocation, suspension, or imposition of penalty is based.

C. The notice of intended decision shall specify the effective date of the action.

D. The notice of intended decision shall state that the Health Officer shall give the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed an opportunity to request a hearing thereon. The hearing shall be an informal hearing before the Health Officer.

Following the hearing, or within a reasonable time if no hearing is requested, the Health Officer shall issue a decision and serve the decision in accordance with the service requirements set forth in Subsection A of this Section.

E. The decision of the Health Officer shall be in writing, setting forth the reasons for the decision, and shall advise the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed that the decision to suspend or revoke the license, or to impose the penalty for tobacco retailing without a license shall become final unless the applicant for a license, the licensee, or the person against whom the penalty for tobacco retailing without a license is directed seeks an appeal pursuant to Section 7.80.130.
(Ord. No. 5200, § 1, 5-15-2012)

7.80.130 Appeal procedures.

With regard to any denial of an application for a license pursuant to Section 7.80.060 or any decision issued by the Health Officer pursuant to Section 7.80.120, the following rules apply:

A. A decision of the Health Officer to deny an application for a license, to suspend or revoke a license, or to impose a penalty for tobacco retailing without a license can be appealed to a Hearing Officer, subject to the following requirements and procedures. A person served with a decision issued pursuant to Subsection B of Section 7.80.060 or Subsection D of Section 7.80.120 may seek an appeal by filing with the Health Officer a written request for hearing within fourteen (14) calendar days of service of the decision. Failure to timely file a written request for hearing shall be deemed a waiver of the right to challenge the decision of the Health Officer and a failure to exhaust administrative remedies. The hearing officers shall be individuals selected by the County who may hear the appeals, issue subpoenas, receive evidence to administer oaths, rule on questions of law and the admissibility of evidence, prepare a record of the proceedings, and issue orders with regard to an appeal.

B. The Hearing Officer shall schedule a hearing.

1. Written notice of the time, date and location of a hearing before the Hearing Officer shall be given by personal service or by first class mail, postage prepaid, including a copy of the affidavit or certificate of mailing, to the appellant.

2. Hearing Procedures.
a. Requirements for Taking Testimony. In any proceeding before a Hearing Officer, oral testimony offered as evidence shall be taken only on oath or affirmation, and the Hearing Officer, his/her clerk, or other designee shall have the power to administer oaths and affirmations and to certify to official acts. Oaths of witnesses may be given individually or en masse. Witnesses shall be asked to raise their right hands and to swear or affirm that the testimony they shall give will be the truth, the whole truth, and nothing but the truth. b. Continuances. The Hearing Officer may continue the hearing as determined appropriate by the Hearing Officer.
57 Item 1.

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c. Administrative Interpretations. In conducting the hearing, the Hearing Officer shall consider the previously established interpretation of an ordinance provision by the Department charged with its enforcement unless that interpretation is shown to be clearly erroneous or unauthorized.
d. Hearing Officer Decisions. Within thirty (30) calendar days after the close of the hearing, the Hearing Officer shall issue a written decision, including a statement of the basis for the decision. The Hearing Officer's written decision shall constitute the final administrative decision of the County.
e. In the event a civil action is initiated to obtain enforcement of the decision of the Hearing Officer, and judgment is entered to enforce the decision, the person against whom the order of enforcement has been entered shall be liable to pay the County's total costs of enforcement, including reasonable attorney's fees.

C. The appellant's failure to appear at the hearing on appeal shall constitute an abandonment of the review request and a failure to exhaust administrative remedies. (Ord. No. 5200, § 1, 5-15-2012)

7.80.140 Other penalties.

The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity.

A. Violations of this Chapter may, in the discretion of the District Attorney, be prosecuted as infractions or misdemeanors.

B. Causing, permitting, aiding, abetting, or concealing a violation of any provision of this Chapter shall constitute a violation.

C. Violations of this Chapter are hereby declared to be public nuisances. (Ord. No. 5200, § 1, 5-15-2012)

7.80.150 Stipulated fine in lieu of hearing.

For a first or second alleged violation of this Chapter within any sixty (60) month period, the Health Officer may allow a tobacco retailer alleged to have violated this Chapter to stipulate in writing to the penalties provided in this Section in lieu of the penalties that would otherwise apply pursuant to this Chapter and to forego any right the tobacco retailer may have to a hearing pursuant to Section 7.80.130. Notice of any stipulation shall be provided to the Sheriff's Office, and no hearing shall be held. Stipulations shall not be confidential, shall be in writing, and shall contain the following terms plus any other noncriminal provisions established by the Health Officer in the interests of justice:

A. After a first alleged violation of the Chapter at a location:

1. An agreement by the tobacco retailer to stop acting as a tobacco retailer for one (1) day;

2. An administrative penalty of one thousand and no/100ths ($1,000.00) dollars;

3. An admission by the tobacco retailer that the first alleged violation of the Chapter at the location occurred; and

4. An agreement that the first alleged violation of the Chapter at the location shall be considered in determining the penalty for any future violation.
58 Item 1.

Created: 2023-08-21 13:07:18 [EST]
(Supp. No. 51)

B. After a second alleged violation of the Chapter at a location within any sixty (60) month period:

1. An agreement by the tobacco retailer to stop acting as a tobacco retailer for ten (10) days;

2. An administrative penalty of five thousand and no/100ths ($5,000.00) dollars;

3. An admission by the tobacco retailer that the second alleged violation of the Chapter at the location occurred; and

4. An agreement by the tobacco retailer that the second alleged violation of the Chapter at the location will be considered in determining the penalty for any future violations. (Ord. No. 5200, § 1, 5-15-2012)

7.80.160 Implementation.

The Department shall begin implementing the provisions of this Chapter effective July 1, 2012. (Ord. No. 5200, § 1, 5-15-2012)

7.80.170 Severability.

If any provision of this Chapter or the application thereof to any person or circumstance is held invalid, the remainder of this Chapter or the application of such provision to other persons or circumstances shall not be affected thereby.
(Ord. No. 5200, § 1, 5-15-2012)
59 Item 1.

C I T Y O F D E L R E Y O A K S
DATE: January 23, 2024
TO: Honorable Mayor and City Council
FROM: John Guertin, City Manager
SUBJECT: Request for Proposal (RFP) for a Comprehensive Fee Study CEQA: This action does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) guidelines section 15378 as it is an administrative activity of the City that will not result in direct or indirect physical changes in the environment.

Discussion
The City currently maintains a Master Fee Schedule of all the fees the City charges for various services. The City is a local government agency and as such is not in the practice to make a profit off of these charges but instead, fees are set to reasonably recover City costs.

It is customary for cities to regularly review their fees for appropriateness. It has been a long time since the City of Del Rey Oaks has conducted a comprehensive review of our fees.

It is recommended that the City issue an RFP for consulting services for a comprehensive fee study to evaluate all the City’s fees in all departments.

The study will review operating costs (including wage rates and benefits), current fee schedules, and comparisons to other entities. After the study is completed, staff will bring the recommended fees for the Council to review and approve with the goal of setting reasonable fees for cost recovery. This study is recommended to be completed at a minimum of every five years.

Fiscal Impacts
While we won’t know the cost of the study until proposals are received, it is estimated that the cost will be around $20,000. Staff recommends utilizing funds set aside in FY 2023-24 for grant writing services. Due to other competing priorities, the grant contract will not be completed this fiscal year.

ATTACHMENTS:
• Draft RFP
Respectfully Submitted,
_______________________________
John Guertin
City Manager
Staff Report
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• Notification of the parties shall be considered to have been constructively received when it is mailed via the United States Postal Service, e-mailed, or delivered in hand to the parties as stated in the contract.
• Proposal shall also mean quotation, bid, offer, qualification/experience statement, and services. Proposers shall also mean vendors, proposer's, bidders, or any person or firm responding to a Request for Information.
• The City reserves the right to retain aH proposals for a period of 60 days for examination and comparison.
• All contracts entered into by the City of Del Rey Oaks shall be governed by the Laws of the State of California. Any disputes shall be resolved within the venue of the State of California. • The proposer may submit an alternative proposal or proposals that it believes will also meet the City's project objectives, but in a different way. In this case, the proposed must provide an analysis of the advantages and disadvantages of each of the alternatives, and discuss under what circumstances the City would prefer one alternative to the other(s).

5.2 Reference Checks
The City of Del Rey Oaks reserves the right to contact any reference, or any client listed in the documents for information which may be helpful to the City in evaluating the Contractor's performance on previous assignments.

5.3 Changes to RFP
Changes to the RFP will be e-mailed to all vendors that submitted a letter of intent to respond. Such changes become an integral part of the RFP for incorporation into any contract awarded pursuant to the RFP.

5.4 Submittal Address
Send proposals to Karen Minami, City Clerk at [email protected] or mail to:

City of Del Rey Oaks
City Hall
Attn: Karen Minami, City Clerk
650 Canyon Del Rey Boulevard
Del Rey Oaks, CA 93940
If submitting by mail, please ensure "title of RFP" is written in the lower left-hand comer of the envelope. Three bound copies, plus one electronic file shall be submitted.

Proposals must be complete and submitted by the due date. Late submissions or delivery via facsimile will not be considered. The City assumes no responsibility for delays caused by delivery service.

Postmarking by the due date will not substitute for actual receipt.

City ofDel Rey Oaks

74 Item 2.

CITY OF DEL REY OAKS FEE SCHEDULE FEE
Commercial
Major (New commercial) $1,990
Minor (Commercial additions, remodels, exterior tenant improvements, etc.)
$620
Residential
Major (New one or two-story buildings, or second-story additions) $840
Minor (One-story additions, exterior alterations to one-story buildings or one-story of a two-story) $200
Major (Large monument signs, multiple freestanding signs, pole signs, internally illuminated signs) $680
Minor (All signs not included above) $120
Architectural Review/Solar Panels No Fee
Appeal Fees
$370
$170
Environmental Impact Report contract price + 17%
Environmental Initial Study Leading to a Negative Declaration $3,570 (Excludes Fish and Game Fee and technical studies)
Environmental Exemption $100
Master (Projects requiring environmental review and/or multiple permits) $4,000 deposit
Major (Commercial, industrial, multi-family, cannabis) $2,990 Minor (Single-family residential uses) $820
$5,000
Cannabis Tax 5% of Gross Receipts
New One-time approval fee Whole Home or Home Share $820 Annual Whole Home $500
Home Share $250
Home Occupation (Business) Permit due every year $150
Home Occupational Use Permit Application Fee $10
Permit Extension $780
Reopen Permit $850
Special Permits (Temporary use) $280
Special Sign Permit (Temporary window/banner sign) $170 Investigative fee for work without permit(s) Cost of the permit Missed Inspections or work not complete $95/hour
Electrical/Plumbing/Mechanical Permit $125
Grading Permit Fee $120
Tree Removal/Significant Alteration Permit $50
Residential Property Inspections Reports - Single Family Dwelling $250 Duplicate Job Card $25
Master (Multiple variances for commercial, multi-family or industrial projects) $1,410
Major (One variance {coverage, height, parking adjustments} for commercial, multi-family or industrial sites) $980
Minor (One variance - residential fences, setbacks, parking, etc. $820
City of Del Rey Oaks Fee Schedule
Establishing Certain Fees Effective July 1, 2021
Appeals of Planning Commission Decisions to City Council Appeals of Staff Decisions/Home Occupation Permits
Environmental Review
Use Permits
Permits
Variance Permit
Cannabis
Short Term Rental
Annaul Cannabis Business Permit
Planning
Architectural Review Committee Review:

Architectural Review Committee Sign Review:

75 Item 2.

CITY OF DEL REY OAKS FEE SCHEDULE FEE
Planning
Encroachment Permit (Residential) $250
Street Opening Permit (Residential) $250
Driveway, Curb, Gutter, Sidewalk Permit $150
Storm Water Review & Inspection Fee $250 plus $95/hour for plan review & inspection $100
$100
$200
$925
$125/unit
Negotiated fee for cost of service
$500+140 K/sf
Negotiated fee for cost of service
$400
Major text (alterations of existing sections $1,500 Deposit/cost of service $1,000/1st section charged+$300 for
each additional section
$1,800 + $100/lot
$700/lot w/exceptions
$1,600
$700/lot w/exceptions
Additional meetings for minor text amendments $120
$750 + $60/lot
$600 per map
Lot Line Adjustment $1,000
Minor Text (alterations of existing sections) Contract Cost plus 10% Major Text (addition of new sections) Contract Cost plus 15% Printed Material
$0.20 per page
R-1 Guidelines $10
Commercial Guidelines $10
$180
Sign Ordinance $10
Subdivision Ordinance $10
Zoning Ordinance Text $15
General Plan Text $20
Applicant shall, in addition to those fees listed in this fee schedule, pay the actual cost of legal advertising.

Council Packet Yearly Subscription
Parcel Map
Minor
Copies
Final Map
General Plan Amendment
1-7 units
Exceptions
Standard Subdivision Map
Commercial & Industrial
It is the City policy and requirement that processing of development or planning projects be fully cost recoverable. Application fees are intended to reimburse the City for minimal costs incurred for the normal or routine amount of time necessary to process applicant's requests. If additional or other unusual time in required on a particular project, then the developer/applicant will be charged for these additional costs to the City, plus a 30% administrative overhead fee.

Development Agreement
Consultant fee, plus 30% of consultant fees to cover normal staff costs, plus 15% of consultant fee as a contingency fund to cover unanticipated costs, plus duplication. These fees shall be considered advances and should the actual cost be less than the fee advanced, the excess shall be returned to the applicant; should the actual cost be more than the fee advanced, the difference shall be paid by the applicant.

Processing
Additional meetings
Exceptions
Tentative
8-36 units
>36 units
<15,000 sf
>15,000
Minor text (addition of new section)
Reclassification or Rezoning
D District (Condo.)
Hotel/motel/multi-family
Engineering
Zoning Permits
Encroachment Permit (Commercial) $300 plus 2% of cost of public improvements requires plan check Street Opening Permit (Commercial) $300 plus 2% of cost of public improvements requires plan check Construction Activity Road Impact Fee 1% of the sum of the building permit's project valuation R-1 District

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CITY OF DEL REY OAKS FEE SCHEDULE FEE
Planning
Reports
Accident Report $25
Police Report $25
$2,500
$2,500
$25 per card
Fingerprinting - Livescan $70
$125 per hour
$25
$250
$25
$25
$20
1st alarm within 60 days No Charge
2nd alarm within 60 days $150
Subsequent Alarms $250
$50 Each
$50 Each
$50 Each
City's cost
Stop Payment/NSF $35
$5
$26
Free membership - Replacement key $10
County of Monterey Animal Services Actual Cost to City to be paid by owner Residents: Groups of 1 to 50 $50
Groups of 51 to 100 $100
Groups of 101 to 150 $150
Non-Residents: Groups of 1 to 50 $100
Groups of 51 to 100 $150
Groups of 101 to 150 $200
Bounce House Permit $50
$50
Resident : First 3 hours (per hour) $50
Each additional hour $25
Cleaning Fee $10
Use Permit $50
Refundable Cleaning/Damage Deposit $250
Non-Resident: First 3 hours (per hour) $70
Each additional hour $25
Cleaning Fee $10
Use Permit $50
Refundable Cleaning/Damage Deposit $250
Non-Profit: First 3 hours (per hour) $40
Each additional hour $15
Cleaning Fee $10
Use Permit $50
Refundable Cleaning/Damage Deposit $250
Hazardous Materials / Fire Response fee/Traffic Accident - (Fire presence required)

SERVICES
Vehicle Repossession
Vehicle Storage Release
False Police Alarm Fees
Police / Fire Fees
Duplication Fees
False Alarm / Fire Response / Fire Alarm - Sprinkler System (Fire presence required) Citation Sign-Off
VIN Verification
Police Shoulder Patch Request
Old Town Hall Reservation Fees:

Dog park annual registration fee
Temporary Day Use Permit
Park Barbeque Reservation Fees:

Duplication of DVD / Police Photos
Enlargement of Photographs
Maps
Business License Application Fee
Returned Check Fee
Miscellanous Fees
Duplication of Audio Tape
Duplication of DVD (Council Meeting, Etc.)
Fingerprinting - Hard Card
Special Events

77 Item 2.
{AJL-01481074;1}

CITY OF DEL REY OAKS

AGREEMENT
THIS AGREEMENT (“Agreement”) is executed , 20____ by and between the CITY OF DEL REY OAKS, a municipal corporation (hereinafter “City”), and _______________________ (hereinafter “Consultant”), each of which is referred to herein as a “party,” and collectively referred to herein as the “parties.”

RECITALS
WHEREAS, the City wishes to engage Consultant to perform the services required by this Agreement as City does not have the capability to perform such work; WHEREAS, Consultant is customarily engaged in the business of providing the services required herein and is willing to provide such services on the following terms and conditions; and WHEREAS, Consultant represents it is specially trained, experienced, and competent to perform the services required by this Agreement.

AGREEMENT
NOW, THEREFORE, in consideration of the terms and conditions herein contained, the parties hereby covenant and agree as follows:

1. SERVICES
A. Scope of Services. Consultant agrees to provide to the City, as the scope of services under this Agreement, the following services: Consulting services for a comprehensive fee study to evaluate all of the City’s fees in all departments.

B. Amendment of Services. The parties may make changes to the scope of services as defined in Section 1.A above. The parties shall agree in writing prior to commencement of any such changes.

2. COMPENSATION
A. Total Fee. The City agrees to pay and Consultant agrees to accept as full and fair consideration for the performance of this Agreement $__________________. If the City determines the services set forth in the written invoice have not been performed in accordance with the terms of this Agreement, the City shall not be responsible for payment until the services have been satisfactorily performed.

B. Invoicing. Consultant shall submit written invoices to the City. Consultant’s invoices shall include a brief description of services performed.

3. AGREEMENT TERM
A. Term. The work under this Agreement shall commence at the mutual reasonable agreement of the parties.
78 Item 2.

B. Timely Work. Consultant shall perform all services in a timely fashion. Failure to perform shall be deemed a material breach of this Agreement, and the City may terminate this Agreement with no further liability hereunder, or may authorize, in writing, an extension of time to the Agreement.

4. INDEPENDENT CONSULTANT
A. Independent Consultant.
i. Consultant is an independent consultant. This Agreement does not create the relationship of employer and employee, a partnership, or a joint venture. ii. No offer or obligation of permanent employment with the City or particular City department or agency is intended in any manner, and Consultant shall not become entitled by virtue of this Agreement to receive from the City any form of employee benefits including, but not limited to, sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. Consultant shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of Consultant’s performance of services under this Agreement. In connection therewith, Consultant shall defend, indemnify and hold the City harmless from any and all liability, which the City may incur because of Consultant’s failure to pay such taxes.

B. Not an Agent of the City. Nothing in this Agreement shall be interpreted so as to render the City the agent, employer, or partner of Consultant, or the employer of anyone working for or subcontracted by Consultant, and Consultant must not do anything that would result in anyone working for or subcontracted by Consultant being considered an employee of the City. Consultant is not, and must not claim to be, an agent of the City.

5. REPRESENTATIVES AND COMMUNICATIONS
A. City’s Representative. The City appoints the individual named below as the City’s contact person for the purposes of this Agreement.

Name: John Guertin
Title: City Manager
Address: 650 Canyon Del Rey Blvd. Del Rey Oaks, CA 93940 Telephone: 831-394-8511
B. Consultant’s Representative. Consultant appoints the individual named below as its contact person for the purposes of this Agreement.

Name:

Title:

Address:

Telephone:

C. Communications and Notices. Any notice, report, or other document that either party may be required or may wish to give to the other must be in writing, unless otherwise provided 79 Item 2.
for, and shall be deemed to be validly given to and received by the addressee, if delivered personally, on the date of such personal delivery, if delivered by email, on the date of transmission, or if by mail, seven (7) calendar days after posting.

6. INDEMNIFICATION
Consultant hereby agrees to the following indemnification clause:

To the fullest extent permitted by law Consultant shall indemnify and hold harmless the City and its officers, designated agents, departments, officials, representatives and employees (collectively “Indemnitees”) from and against claims, loss, cost, damage, injury expense and liability (including incidental and consequential damages, court costs, reasonable attorneys’ fees, litigation expenses and fees of experts, consultants or expert witnesses incurred in connection therewith and costs of investigation) to the extent they arise out of, pertain to, or relate to, the negligence, recklessness, or willful misconduct of Consultant, anyone directly or indirectly employed by Consultant, or anyone Consultant controls (collectively “Liabilities”). Consultant shall have liability for reasonable and necessary defense costs incurred by persons indemnified to the extent caused by Consultant’s negligence herein and recoverable under applicable law on account of negligence. Such obligations to defend, hold harmless and indemnify any Indemnitee shall not apply to the extent that such Liabilities are caused in part by the gross negligence or willful misconduct of such Indemnitee.

7. INSURANCE
Consultant shall submit and maintain in full force all insurance as described herein. Without altering or limiting Consultant’s duty to indemnify, Consultant shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:

A. Commercial General Liability Insurance including, but not limited to, premises, personal injuries, bodily injuries, property damage, products, and completed operations, with a combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate.

B. Automobile Liability Insurance covering all automobiles, including owned, leased, non-owned, and hired automobiles, used in providing services under this Agreement, with a combined single limit of not less than $1,000,000 per occurrence.

C. Workers’ Compensation Insurance. If Consultant employs others in the performance of this Agreement, Consultant shall maintain Workers’ Compensation insurance in accordance with California Labor Code section 3700 and with a minimum of $1,000,000 per occurrence.

D. Other Insurance Requirements:
i. The City shall be a named additional insured on Consultant’s policy. ii. All insurance required under this Agreement must be written by an insurance company either:
80 Item 2.

1. admitted to do business in California with a current A.M. Best rating of no less than A:VI;
or

2. an insurance company with a current A.M. Best rating of no less than A:VII. iii. Prior to the start of work under this Agreement, Consultant shall file certificates of insurance and endorsements evidencing the coverage required by this Agreement with the City Manager. Consultant shall file a new or amended certificate of insurance promptly after any change is made in any insurance policy that would alter the information on the certificate then on file, including, without limitation, the amount of coverages or the term of coverages. iv. Neither the insurance requirements hereunder, nor acceptance or approval of Consultant’s insurance, nor whether any claims are covered under any insurance, shall in any way modify or change Consultant’s obligations under the indemnification clause in this Agreement, which shall continue in full force and effect. Notwithstanding the insurance requirements contained herein, Consultant is financially liable for its indemnity obligations under this Agreement. v. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

8. PERFORMANCE STANDARDS
A. Consultant warrants that Consultant and Consultant’s employees performing services under this Agreement are specially trained and experienced to perform the services described herein.

B. Consultant and its employees shall perform all services in a safe and skillful manner consistent with the highest standards of care, diligence and skill ordinarily exercised by professionals in similar fields. All services performed under this Agreement that are required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements.

C. Consultant shall furnish, at its own expense, all materials, equipment and personnel necessary to carry out the terms of this Agreement, except as otherwise specified in this Agreement.

Consultant shall not use the City premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement, the RFP, or Consultant’s Estimate.

D. Consultant agrees to perform all work under this Agreement to the satisfaction of City and as specified herein. The City Manager or his or her designee shall perform an evaluation of the work. If the quality of work is not satisfactory, City in its discretion may meet with Consultant to review the quality of work and resolve the matters of concern.

9. CITY INFORMATION AND RESOURCES
A. City Resources. The City acknowledges that Consultant’s ability to provide services in accordance with this Agreement may be dependent on the City providing available information and resources in a prompt and timely manner as reasonably required by Consultant. To the extent that the City fails to provide City resources, Consultant shall not be liable for any resulting delay in services, 81 Item 2.
but in no event shall such delay or failure to provide City resources constitute a breach of this Agreement by the City, nor shall Consultant be entitled to extra compensation for same.

B. Obligations of Consultant. No reviews, approvals, or inspections carried out or supplied by the City shall derogate from the duties and obligations of Consultant, and all responsibility related to performance of services shall be and remain with Consultant.

10. OWNERSHIP AND USE OF MATERIALS
A. Ownership of the Materials. All data, studies, reports, calculations, field notes, sketches, designs, drawings, plans, specifications, cost estimates, manuals, correspondence, agendas, minutes, notes, audio-visual materials, photographs, models, software data, computer software (if purchased on the City’s behalf) and other documents or products produced by Consultant under this Agreement (collectively, “the Materials”) are and shall remain the property of the City even though Consultant or another party may have physical possession of them or a portion thereof. Consultant hereby waives, in favor of the City, any moral rights Consultant, its employees, vendors, successors or assignees may have in the Materials. Consultant agrees that all copyrights, which arise from creation of the work or services pursuant to this Agreement, shall be vested in the City and waives and relinquishes all claims to copyright or intellectual property rights in favor of the City.

B. Delivery and Use of the Materials. All Materials shall be transferred and delivered by Consultant to the City without further compensation following the expiration or sooner termination of this Agreement, provided that the City may, at any time prior to the expiration or earlier termination of this Agreement, give written notice to Consultant requesting delivery by Consultant to the City of all or any part of the Materials in which event Consultant shall forthwith comply with such request. The Materials created electronically must be submitted in a format and medium acceptable to the City. The Materials may be used by the City in any manner for the intended purpose or as part of its operations associated with the Materials.

11. DISPUTE RESOLUTION
The City Manager and Consultant shall make reasonable efforts to resolve any dispute by amicable negotiations and shall provide frank, candid, and timely disclosure of all relevant facts, information, and documents to facilitate negotiations.

If all or any portion of a dispute cannot be resolved by good faith negotiations as set forth above within thirty (30) days either party may, by notice to the other party, submit the dispute for formal mediation to a mediator selected mutually by the parties. The cost of the mediation (including fees of mediators) shall be borne equally by the parties, and each party shall bear its own costs of participating in mediation. The mediation shall take place within Monterey County.

Should either party not be satisfied with the outcome of the mediation, the matter may be submitted to a court of competent jurisdiction.

All claims by Consultant against the City for money or damages must comply with the Government Claims Act (California Government Code Sections 810-996.6).

12. TERMINATION OF AGREEMENT
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A. Termination for Cause or Default. The City reserves the right to immediately terminate this Agreement, in whole or in part, if Consultant defaults or fails to deliver the services in accordance with the terms and conditions of this Agreement. Such termination shall be in writing, shall set forth the effective date of termination, and may be issued without any prior notice. Without limitation, Consultant is in default of its obligations contained in this Agreement if Consultant:
i. Fails to perform the required services within the term and/or in the manner provided under this Agreement;
ii. Fails to observe or comply with the City’s reasonable instructions; iii. Otherwise violates any provision of this Agreement.

13. LEGAL ACTION / VENUE
Should either party to this Agreement bring legal action against the other, the validity, interpretation and performance of this Agreement shall be controlled by and construed under the laws of the State of California, excluding California’s choice of law rules. Venue for any such action relating to this Agreement shall be in the Monterey County Superior Court.

14. MISCELLANEOUS PROVISIONS
A. Non-discrimination. During the performance of this Agreement, Consultant shall not unlawfully discriminate against any person because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, either in Consultant’s employment practices or in the furnishing of services to recipients.

B. Acceptance of Services Not a Release. Acceptance by the City of services to be performed under this Agreement does not operate as a release of Consultant from professional responsibility for the services performed.

C. Headings. The headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement. The headings are for convenience only.

D. Entire Agreement. This Agreement, including the Exhibits attached hereto, constitute the entire agreement between the parties hereto with respect to the terms, conditions, and services and supersedes any and all prior proposals, understandings, communications, representations and agreements, whether oral or written, relating to the subject matter thereof pursuant to Section 1B, “Amendment of Services.” Any amendment to this Agreement will be effective only if it is in writing signed by both parties hereto and shall prevail over any other provision of this Agreement in the event of inconsistency between them.

E. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and may be signed in counterparts, but all of which together shall constitute one and the same Agreement.
83 Item 2.

F. Multiple Copies of Agreement. Multiple copies of this Agreement may be executed, but the parties agree that the Agreement on file in the office of the City’s City Clerk is the version of the Agreement that shall take precedence should any difference exist among counterparts of this Agreement.

G. Authority. Any individual executing this Agreement on behalf of the City or Consultant represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.

H. Severability. If any of the provisions contained in this Agreement are held illegal, invalid or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby.

Limitations of liability and indemnities shall survive termination of the Agreement for any cause. If a part of the Agreement is valid, all valid parts that are severable from the invalid part remain in effect.

If a part of this Agreement is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

I. Non-exclusive Agreement. This Agreement is non-exclusive and both the City and Consultant expressly reserve the right to enter into agreements with other Consultants for the same or similar services, or may have its own employees perform the same or similar services.

J. Assignment of Interest. The duties under this Agreement shall not be assignable, delegable, or transferable without the prior written consent of the City. Any such purported assignment, delegation, or transfer shall constitute a material breach of this Agreement upon which the City may terminate this Agreement and be entitled to damages.

K. Laws. Consultant agrees that in the performance of this Agreement it will reasonably comply with all applicable federal, state and local laws and regulations. This Agreement shall be governed by and construed in accordance with the laws of the State of California and the City of Del Rey Oaks.

L. Exhibits. The following Exhibits are incorporated herein by reference as if fully set forth: _________________________________________________________________________ IN WITNESS WHEREOF, the parties enter into this Agreement on the day and year first above written in Del Rey Oaks, California.

CITY OF DEL REY OAKS
John Guertin,
City Manager
84 Item 2.

C I T Y O F D E L R E Y O A K S
DATE: January 23, 2024
TO: Honorable Mayor and Members of City Council
FROM: John Guertin, City Manager
SUBJECT: Award of Contract for the Calfire Grant Funded Fire Prevention Project to Community Tree Service
CEQA: The project is categorically exempt from the California Environmental Quality Act (CEQA) Guidelines Sections, Section 15304 (i) Minor Alteration to Land – Fuel management activities within 30 to 100 feet of structures to reduce the volume of flammable vegetation, provided that the activities will not result in the taking of endangered, rare, or threatened plant or animal species or significant erosion and sedimentation of surface waters. The understory fuel reduction is a minor alteration to land that involves fuel management activities within 30 to 100 feet of structures.

Recommendation
It is recommended that the City Council:

1. Approve the Award of a Contract to Community Tree Service in the amount of $61,070 for the Del Rey Oaks Fire Prevention Program (Work Memorial Park) Project; and

2. Authorize the City Manager to approve additional expenditures up to $12,214 (20% of the agreement value) in contract contingencies for potential additional services and unanticipated work that may arise, for a total amount not-to-exceed $73,284; and

3. Authorize the City Manager to sign and execute the contract services agreement and potential future amendments to the agreement within the designated contingency amount, on behalf of the City Council.

Background
On February 28, 2023, the City Council approved Resolution #2023-01 authorizing the filing of an application for "California Climate Investment Fire Prevention Grant Program", for the Del Rey Oaks Fire Prevention Program. On September 29, 2023, the City was awarded $317,931.90 in grant funding for the project.

The project is expected to reduce fire fuels along Work Memorial Park (from Via Verde to Fremont Blvd). The Treatment Influence Zone is approximately 41 acres in area, including proximity to over 300 homes. The project area is located near Highway 68 and the former Fort Ord, both of which are designated as high fire threat areas according to the Monterey County Community Wildfire Protection Plan.

Summary & Discussion
The bid opening for the Fuel Reduction contractor occurred on January 11, 2024. Four (4) bids were received (Tabulation of Bids – Attachment 1). Community Tree Services was the lowest responsive bidder. Although Community’s bid is significantly lower than the other three received, Staff Report
85 Item 3.
staff has confirmed with their management that they can perform the required services for the amount bid. Additionally, staff have contacted references for Community and are confident in their abilities to address the grant scope.

The project includes fire fuel clearing with hand crews and mechanical abatement depending on slope, accessibility, and density. An estimated 41 acres based on surface area will be treated.

Community Tree Services intends to start mobilizing in early Spring. The target sites contain some of the heaviest areas of fine fuels, trees, shrubs and non-native vegetation. In addition, these areas are near residences, high intensity power lines, and community facilities including City Hall, parks, and churches. The fuel biomass in these areas contributes to increased fuel load and potential fire. By removal of hazardous fuels, a reduction in the frequency and intensity of wildfires will be realized along with a reduction in GHG emissions.

Fiscal Impacts
The City has received the Grant Agreement (5GG22134) from the State of California CAL FIRE Program. The total amount of the grant is $317,931.90. Within this amount the Fuel Reduction Treatment portion allocated is $297,300. Expenses for this agreement will be charged to the C.I.P. project account which is reimbursable by the grant. The proposed contract amount is fully budgeted within the project budget.

ATTACHMENTS:

Attachment 1 – Tabulation of Bids
Attachment 2 – Community Tree Services Bid Package
Attachment 3 – Contract Services Agreement
Respectfully Submitted,
_______________________________
John Guertin
City Manager
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CITY OF DEL REY OAKS

AGREEMENT FOR FIRE PREVENTION PROGRAM

WORK MEMORIAL PARK PROJECT
THIS AGREEMENT (“Agreement”) is executed this ___________________ , by and between the CITY OF DEL REY OAKS, a municipal corporation, (hereinafter “City”), and Community Tree Service, LLC. (hereinafter “Contractor”), each of which is referred to herein as a “party,” and collectively referred to herein as the “parties”.

RECITALS
WHEREAS, the City wishes to engage Contractor to perform the services required by this Agreement as City does not have the capability to perform such work; and WHEREAS, Contractor is customarily engaged in the business of providing the services required herein and is willing to provide such services on the following terms and conditions; and WHEREAS, Contractor represents it is specially trained, experienced, and competent to perform the services required by this Agreement.

AGREEMENT
NOW, THEREFORE, in consideration of the terms and conditions herein contained, the parties hereby covenant and agree as follows:

1. SERVICES
A. Scope of Services. Contractor agrees to provide to the City, as the scope of services under this Agreement, the services described in “Proposal” attached hereto and incorporated herein as Exhibit “A”.

B. Amendment of Services. The parties may make changes to the scope of services as defined in Section 1.A above. The parties shall agree in writing prior to commencement of any such changes.

2. COMPENSATION
A. Total Fee. The City agrees to pay and Contractor agrees to accept as full and fair consideration for the performance of this Agreement $61,070.00. If the City determines the services set forth in the written invoice have not been performed in accordance with the terms of this Agreement, the City shall not be responsible for payment until the services have been satisfactorily performed.

B. Invoicing. Contractor shall submit written invoices to the City. Contractor’s invoices shall include a brief description of services performed.

3. AGREEMENT TERM
A. Term. The work under this Agreement shall commence on ____________. 94 Item 3.
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B. Timely Work. Contractor shall perform all services in a timely fashion. Failure to perform shall be deemed a material breach of this Agreement, and the City may terminate this Agreement with no further liability hereunder, or may authorize, in writing, an extension of time to the Agreement.

4. INDEPENDENT CONTRACTOR
A. Independent Contractor.
i. Contractor is an independent contractor. This Agreement does not create the relationship of employer and employee, a partnership, or a joint venture. ii. No offer or obligation of permanent employment with the City or particular City department or agency is intended in any manner, and Contractor shall not become entitled by virtue of this Agreement to receive from the City any form of employee benefits including but not limited to sick leave, vacation, retirement benefits, workers’ compensation coverage, insurance or disability benefits. Contractor shall be solely liable for and obligated to pay directly all applicable taxes, including federal and state income taxes and social security, arising out of Contractor’s performance of services under this Agreement. In connection therewith, Contractor shall defend, indemnify and hold the City harmless from any and all liability, which the City may incur because of Contractor’s failure to pay such taxes.

B. Not an Agent of the City. Nothing in this Agreement shall be interpreted so as to render the City the agent, employer, or partner of Contractor, or the employer of anyone working for or subcontracted by Contractor, and Contractor must not do anything that would result in anyone working for or subcontracted by Contractor being considered an employee of the City.

Contractor is not, and must not claim to be, an agent of the City.

5. REPRESENTATIVES AND COMMUNICATIONS
A. City’s Representative. The City appoints the individual named below as the City’s contact person for the purposes of this Agreement.

Name: John Guertin
Title: City Manager
Address: 650 Canyon Del Rey Blvd. Del Rey Oaks, CA 93940 Telephone: (831) 394-8511
B. Contractor’s Representative. Contractor appoints the person named below as its contract person for the purposes of this Agreement.

Name: Adolfo Garcia
Title: President
Address: 416 Salinas Rd. Royal Oaks, CA 95076
Telephone: ___________________
C. Communications and Notices. Any notice, report, or other document that either party may be required or may wish to give to the other must be in writing, unless otherwise provided for, and shall be deemed to be validly given to and received by the addressee, if delivered personally, 95 Item 3.
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on the date of such personal delivery, if delivered by email, on the date of transmission, or if by mail, seven (7) calendar days after posting.

6. INDEMNIFICATION
Contractor hereby agrees to the following indemnification clause:

To the fullest extent permitted by law Contractor shall defend (with legal counsel reasonably acceptable to the City), indemnify and hold harmless the City and its officers, designated agents, departments, officials, representatives and employees (collectively "Indemnitees") from and against claims, loss, cost, damage, injury expense and liability (including incidental and consequential damages, court costs, reasonable attorneys' fees, litigation expenses and fees of experts, consultants or expert witnesses incurred in connection therewith and costs of investigation) to the extent they arise out of, pertain to, or relate to, the negligence, recklessness, or willful misconduct of Contractor, anyone directly or indirectly employed by Contractor, or anyone Contractor controls (collectively "Liabilities"). Such obligations to defend, hold harmless and indemnify any Indemnitee shall not apply to the extent that such Liabilities are caused in part by the gross negligence or willful misconduct of such Indemnitee.

7. INSURANCE
Contractor shall submit and maintain in full force all insurance as described herein. Without altering or limiting Contractor's duty to indemnify, Contractor shall maintain in effect throughout the term of this Agreement a policy or policies of insurance with the following minimum limits of liability:

A. Commercial General Liability Insurance including but not limited to premises, personal injuries, bodily injuries, property damage, products, and completed operations, with a combined single limit of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate.

B. Automobile Liability Insurance covering all automobiles, including owned, leased, non-owned, and hired automobiles, used in providing services under this Agreement, with a combined single limit of not less than $1,000,000 per occurrence.

C. Workers' Compensation Insurance. If Contractor employs others in the performance of this Agreement, Contractor shall maintain Workers' Compensation insurance in accordance with California Labor Code section 3700 and with a minimum of $1,000,000 per occurrence.

D. Other Insurance Requirements:
i. The City shall be a named additional insured on Contractor’s policy. ii. All insurance required under this Agreement must be written by an insurance company either:

1. admitted to do business in California with a current A.M. Best rating of no less than A:VI;
or

2. an insurance company with a current A.M. Best rating of no less than A:VII. 96 Item 3.
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iii. Prior to the start of work under this Agreement, Contractor shall file certificates of insurance and endorsements evidencing the coverage required by this Agreement with the City Manager. Contractor shall file a new or amended certificate of insurance promptly after any change is made in any insurance policy that would alter the information on the certificate then on file, including, without limitation, the amount of coverages or the term of coverages. iv. Neither the insurance requirements hereunder, nor acceptance or approval of Contractor’s insurance, nor whether any claims are covered under any insurance, shall in any way modify or change Contractor’s obligations under the indemnification clause in this Agreement, which shall continue in full force and effect. Notwithstanding the insurance requirements contained herein, Contractor is financially liable for its indemnity obligations under this Agreement. v. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

8. PERFORMANCE STANDARDS
A. Contractor warrants that Contractor and Contractor’s employees performing services under this Agreement are specially trained and experienced to perform the services described herein.

B. Contractor and its employees shall perform all services in a safe and skillful manner consistent with the highest standards of care, diligence and skill ordinarily exercised by professionals in similar fields. All services performed under this Agreement that are required by law to be performed or supervised by licensed personnel shall be performed in accordance with such licensing requirements.

C. Contractor shall furnish, at its own expense, all materials, equipment and personnel necessary to carry out the terms of this Agreement, except as otherwise specified in this Agreement.

Contractor shall not use the City premises, property (including equipment, instruments, or supplies) or personnel for any purpose other than in the performance of its obligations under this Agreement, the RFP, or Contractor’s Estimate.

D. Contractor agrees to perform all work under this Agreement to the satisfaction of City and as specified herein. The City Manager or his or her designee shall perform an evaluation of the work. If the quality of work is not satisfactory, City in its discretion may meet with Contractor to review the quality of work and resolve the matters of concern.

9. CITY INFORMATION AND RESOURCES
A. City Resources. The City acknowledges that Contractor’s ability to provide services in accordance with this Agreement may be dependent on the City providing available information and resources in a prompt and timely manner as reasonably required by Contractor. To the extent that the City fails to provide City resources, Contractor shall not be liable for any resulting delay in services, but in no event shall such delay or failure to provide City resources constitute a breach of this Agreement by the City, nor shall Contractor be entitled to extra compensation for same. 97 Item 3.
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B. Obligations of Contractor. No reviews, approvals, or inspections carried out or supplied by the City shall derogate from the duties and obligations of Contractor, and all responsibility related to performance of services shall be and remain with Contractor.

10. OWNERSHIP AND USE OF MATERIALS
A. Ownership of the Materials. All data, studies, reports, calculations, field notes, sketches, designs, drawings, plans, specifications, cost estimates, manuals, correspondence, agendas, minutes, notes, audio-visual materials, photographs, models, software data, computer software (if purchased on the City’s behalf) and other documents or products produced by Contractor under this Agreement (collectively, “the Materials”) are and shall remain the property of the City even though Contractor or another party may have physical possession of them or a portion thereof.

Contractor hereby waives, in favor of the City, any moral rights Contractor, its employees, vendors, successors or assignees may have in the Materials. Contractor agrees that all copyrights, which arise from creation of the work or services pursuant to this Agreement, shall be vested in the City and waives and relinquishes all claims to copyright or intellectual property rights in favor of the City.

B. Delivery and Use of the Materials. All Materials shall be transferred and delivered by Contractor to the City without further compensation following the expiration or sooner termination of this Agreement, provided that the City may, at any time prior to the expiration or earlier termination of this Agreement, give written notice to Contractor requesting delivery by Contractor to the City of all or any part of the Materials in which event Contractor shall forthwith comply with such request. The Materials created electronically must be submitted in a format and medium acceptable to the City. The Materials may be used by the City in any manner for the intended purpose or as part of its operations associated with the Materials.

11. DISPUTE RESOLUTION
The City Manager and Contractor shall make reasonable efforts to resolve any dispute by amicable negotiations and shall provide frank, candid, and timely disclosure of all relevant facts, information, and documents to facilitate negotiations.

If all or any portion of a Dispute cannot be resolved by good faith negotiations as set forth above within thirty (30) days either party may, by notice to the other party, submit the dispute for formal mediation to a mediator selected mutually by the parties. The cost of the mediation (including fees of mediators) shall be borne equally by the parties, and each party shall bear its own costs of participating in mediation. The mediation shall take place within the Monterey County.

Should either party not be satisfied with the outcome of the mediation, the matter may be submitted to a court of competent jurisdiction.

All claims by Contractor against the City for money or damages must comply with the Government Claims Act (California Government Code Sections 810 et seq. 98 Item 3.
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12. TERMINATION OF AGREEMENT
A. Termination for Cause or Default. The City reserves the right to immediately terminate this Agreement, in whole or in part, if Contractor defaults or fails to deliver the services in accordance with the terms and conditions of this Agreement. Such termination shall be in writing, shall set forth the effective date of termination, and may be issued without any prior notice.

Without limitation, Contractor is in default of its obligations contained in this Agreement if Contractor:
i. Fails to perform the required services within the term and/or in the manner provided under this Agreement;
ii. Fails to observe or comply with the City’s reasonable instructions; iii. Otherwise violates any provision of this Agreement.

13. LEGAL ACTION / VENUE
Should either party to this Agreement bring legal action against the other, the validity, interpretation and performance of this Agreement shall be controlled by and construed under the laws of the State of California, excluding California’s choice of law rules. Venue for any such action relating to this Agreement shall be in the Monterey County Superior Court.

14. MISCELLANEOUS PROVISIONS
A. Non-discrimination. During the performance of this Agreement, Contractor shall not unlawfully discriminate against any person because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, either in Contractor’s employment practices or in the furnishing of services to recipients.

B. Acceptance of Services Not a Release. Acceptance by the City of services to be performed under this Agreement does not operate as a release of Contractor from professional responsibility for the services performed.

C. Headings. The headings appearing herein shall not be deemed to govern, limit, modify, or in any manner affect the scope, meaning or intent of the provisions of this Agreement.

The headings are for convenience only.

D. Entire Agreement. This Agreement, including the Exhibits attached hereto, constitute the entire agreement between the parties hereto with respect to the terms, conditions, and services and supersedes any and all prior proposals, understandings, communications, representations and agreements, whether oral or written, relating to the subject matter thereof pursuant to Section 1B, “Amendment of Services”. Any amendment to this Agreement will be effective only if it is in writing signed by both parties hereto and shall prevail over any other provision of this Agreement in the event of inconsistency between them.

E. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and may be signed in counterparts, but all of which together shall constitute one and the same Agreement.
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F. Multiple Copies of Agreement. Multiple copies of this Agreement may be executed, but the parties agree that the Agreement on file in the office of the City’s City Clerk is the version of the Agreement that shall take precedence should any difference exist among counterparts of this Agreement.

G. Authority. Any individual executing this Agreement on behalf of the City or Contractor represents and warrants hereby that he or she has the requisite authority to enter into this Agreement on behalf of such party and bind the party to the terms and conditions of this Agreement.

H. Severability. If any of the provisions contained in this Agreement are held illegal, invalid or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. Limitations of liability and indemnities shall survive termination of the Agreement for any cause. If a part of the Agreement is valid, all valid parts that are severable from the invalid part remain in effect. If a part of this Agreement is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.

I. Non-exclusive Agreement. This Agreement is non-exclusive and both the City and Contractor expressly reserve the right to enter into agreements with other Contractors for the same or similar services, or may have its own employees perform the same or similar services.

J. Assignment of Interest. The duties under this Agreement shall not be assignable, delegable, or transferable without the prior written consent of the City. Any such purported assignment, delegation, or transfer shall constitute a material breach of this Agreement upon which the City may terminate this Agreement and be entitled to damages.

K. Laws. Contractor agrees that in the performance of this Agreement it will reasonably comply with all applicable federal, state and local laws and regulations. This Agreement shall be governed by and construed in accordance with the laws of the State of California and the City of Del Rey Oaks.

L. Exhibits. The following Exhibit is incorporated herein by reference as if fully set forth: Exhibit A, Proposal from Community Tree Service, LLC IN WITNESS WHEREOF, the parties enter into this Agreement on the day and year first above written in Del Rey Oaks, California.

CITY OF DEL REY OAKS CONTRACTOR
John Guertin, _________________________
City Manager Printed name
Date:__________________________ Date:_____________________ 100
Item 3.

C I T Y O F D E L R E Y O A K S
DATE: January 23, 2024
TO: Honorable Mayor and City Council
FROM: John Guertin, City Manager
SUBJECT: Audited Financial Statements for fiscal year ended June 30, 2023 CEQA: This action does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) guidelines section 15378 as it is an organizational activity of the City that will not result in direct or indirect physical changes in the environment.

Recommendation
Staff recommends that the Council approves the audited financial statements for the fiscal year ended June 30, 2023.

Background
The City’s financial statements were audited by Chavan & Associates, LLP. The audit of the financial statements is an annual requirement.

Summary & Discussion
Auditor’s Opinion
The auditors, Chavan & Associates, state on page 1 of the Annual Financial Report (“Report”) (Attachment 1), that the financial statements in the Report “present fairly, in all material respects” the City’s financial position and results of operations for the fiscal year ended June 30, 2023. This an unqualified opinion, meaning that the financial statements can be relied upon.

A summary of the City’s finances can be found in the section titled “Management Discussion and Analysis” beginning at page 5 of the Report. Staff will highlight some of the most important numbers in the financial statements in this Staff Report.

Statement of Net Position of $20,848,643, page 11
The Statement of Net Position shows a total Net Position of $20,848,643. Readers of the financial statements should keep in mind that the Statement of Net Position treats the City as if it was a business using full accrual accounting. This statement therefore takes into account all assets, including those that cannot be sold or used by anyone else, and all the liabilities, including those that will be paid in the distant future. It then divides the Net Position (assets and deferred outflows, minus liabilities and deferred inflows) into seven major categories. “Net invested in capital assets” is the total of all fixed assets less any debt on those assets. Restricted for land held for resale represents funds that cannot be used for budget purposes. The Net Position of $20,848,643 shows that the City’s finances are in a positive position.

Staff Report
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Item A.

Positive Change in Net Position of $392,499 page 12
The Statement of Activities, like the Statement of Net Position, is prepared on a full accrual basis, like a business. It includes depreciation, interest expense accruals, and net gains on sale of property which are not typically reported in Government Funds Statements.

Balance Sheet – Unassigned unappropriated fund balance of $1,242,852 in the General Fund, page 13
The Balance Sheet is prepared on a modified accrual basis, which is how the City budgets. It considers only current assets (assets that can be readily converted to cash) and current liabilities (liabilities that will be paid within the next year). It shows the General Fund with an “Unassigned Unappropriated” fund balance of $1,242,852. This represents funds available to spend at June 30, 2023 that have not been appropriated for a specific purpose. In addition to this amount the City has $1,637,349 in monies set-aside for economic uncertainties.

All other funds reported have restrictions as to what the monies can be spent on as shown on the Balance Sheet.

Statement of Revenues, Expenditures, and Changes in General Fund Fund Balances of $98,794, page 15
The Statement of Revenues, Expenditures and Changes in Fund Balance is prepared on the same basis as the budget. It shows excess revenues over expenditures in the General Fund of $98,794.

Note 6 – Long-Term Debt $2,134,433 page 32

The Federal Group debt totals $1,590,454 which is not due and payable until sales or development takes place on the former Fort Ord land. It is expected that any development or sales should cover this debt.

Auditor’s Report on Internal Controls
As part of the audit, the auditor issued an Independent Auditor’s Report on Internal Control over Financial Reporting, which states on page 55 of the Report that there are no findings. The report noted “no instances of noncompliance”.

Fiscal Impacts
This item has no fiscal impact. It reports the results of the 2022-23 fiscal year’s operations.

Recommended Action
Approve the audited financial statements for the fiscal year ending June 30, 2023.

ATTACHMENTS:

1. Annual Financial Report for the fiscal year ended June 30, 2023 Respectfully Submitted,
_______________________________
John Guertin
City Manager
102
Item A.

City of Del Rey Oaks
Annual Financial Report
June 30, 2023
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Item A.

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City of Del Rey Oaks
Annual Financial Report
For the year ended June 30, 2023

TABLE OF CONTENTS

FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) .............................. 4 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position .................................................................................................. 11 Statement of Activities ...................................................................................................... 12 Fund Financial Statements
Governmental Funds:

Balance Sheet .............................................................................................................. 13 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .................................................. 14 Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 15 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................................................................ 16 Notes to the Basic Financial Statements .................................................................................. 17

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (GAAP Basis) – General Fund ................................................................... 43 Schedule of Pension Plan Contributions ........................................................................................ 44 Schedule of Proportionate Share of Net Pension Liabilities ........................................................... 45 Schedule of Changes in Total OPEB Liability ............................................................................... 46 Notes to the Required Supplementary Information ........................................................................ 47

SUPPLEMENTARY INFORMATION
Combining Statements - Nonmajor funds:

Combining Balance Sheet - Nonmajor Governmental Funds ..................................................... 49 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ......................................................................... 51 OTHER INDEPENDENT AUDITOR’S REPORT
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ............................................... 54

FINDINGS AND RESPONSES
Schedule of Findings and Responses ............................................................................................. 56 105
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FINANCIAL SECTION
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15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the
City Council of the City of Del Rey Oaks
Del Rey Oaks, California
Report on the Financial Statements
Opinion
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Del Rey Oaks (the “City"), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

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 City of Del Rey Oaks, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements City management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and GAGAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and GAGAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and other required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements as a whole. The introductory section, combining individual non-major fund schedules, statistical data, and other information as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements.

The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.

The introductory, budgetary and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standardsin considering the City’s internal control over financial reporting and compliance.

Chavan & Associates, LLP
Certified Public Accountants
December 6, 2023
Morgan Hill, California

110
Item A.

MANAGEMENT’S DISCUSSION

AND ANALYSIS

111
Item A.

City of Del Rey Oaks Management’s Discussion and Analysis

INTRODUCTION
The discussion and analysis of the City of Del Rey Oaks’ (the City) financial performance provides an overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2023. It should be read in conjunction with the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
• On a government-wide basis the assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of the year ended June 30, 2023 by $20.85 million. However, $1.90 million is a net investment in capital assets, restricted net position of $19.10 million, leaving an unrestricted deficit net position of $186 thousand.
• The City’s total net position increased by $392,499 from current year operations. • The City’s governmental funds reported combined ending fund balance of $22.20 million. The net change in fund balances was an increase of $324 thousand. • The General Fund reported a fund balance of $12.13 million. The net change was an increase of $99 thousand.

OVERVIEWOF THE FINANCIAL STATEMENTS
The discussion and analysis serves as an introduction to the City's financial statements. The City's Financial statements are comprised of three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide Financial Statements - The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases and decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of net position combines and consolidates governmental funds' current financial resources (short-term spendable resources) with capital assets and long-term obligations. Other nonfinancial factors should also be taken into consideration, such as changes in the City's property tax base, the condition of the City's infrastructure (i.e. roads, drainage improvements, storm and sewer lines, etc.) and redevelopment projects, to assess the overall health or financial condition of the City.

The Statement of Activities presents information showing how the City's net position changed during the most recent fiscal year. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes).

The government-wide financial statements include all the governmental activities of the City. The governmental activities of the City include public safety, streets, parks, planning, community development and general administration. The City does not operate any business-type activities.

Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements provide detail information about the most significant funds, not the City as a whole. The City, like other local

112
Item A.

City of Del Rey Oaks Management’s Discussion and Analysis governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City's funds are governmental fund types. Fund financial statements report essentially the same functions as those reported in the government-wide financial statements. However, unlike the government-wide financial statements, fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.

Because the focus of the governmental fund is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented in the government-wide financial statements. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances provide a reconciliation to facilitate the comparison between the governmental fund and government-wide statements.

The City maintains eleven individual governmental funds. Information is presented in the Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund and the nonmajor governmental funds.

Notes to Basic Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

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Item A.

City of Del Rey Oaks Management’s Discussion and Analysis

GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of the City's financial position. The City's net position increased by $392 thousand in fiscal year 2023 from fiscal year 2022. The City's net investment in assets of $1.90 million is used to provide services to citizens; consequently, these assets are not available for future spending, leaving the City with a deficit for operating purposes.

Summary of Net Position
As of June 30
2023 2022
Assets
Current and other assets $ 22,795,137 $ 22,498,949 $ 296,188 Capital assets 2,543,861 2,396,689 147,172
Total Assets $ 25,338,998 $ 24,895,638 $ 443,360
Deferred Outflows of Resources $ 981,977 $ 554,039 $ 427,938 Liabilities
Current and other liabilities $ 498,342 $ 549,172 $ (50,830) Noncurrent liabilities 4,549,689 3,572,766 976,923
Total Liabilities $ 5,048,031 $ 4,121,938 $ 926,093
Deferred Inflows of Resources $ 424,301 $ 871,595 $ (447,294) Net Position
Net investment in capital assets $ 1,904,136 $ 1,739,312 $ 164,824 Restricted 19,130,819 19,114,340 16,479
Unrestricted (186,312) (397,508) 211,196
Total Net Position $ 20,848,643 $ 20,456,144 $ 392,499
Increase
(Decrease)
• Current assets and capital assets increased by $443 thousand, while current and noncurrent liabilities also increased by $926 thousand.
• Increases in capital assets were mainly due to vehicle and equipment purchases, as well as a park improvement project.
• Increases in noncurrent liabilities were mainly the result of GASB 68 and GASB 75 adjustments to the City’s pension and OPEB plans.

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Item A.

City of Del Rey Oaks Management’s Discussion and Analysis GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued)
Statement of Activities
As of June 30
Increase
Functions/Programs 2023 2022 (Decrease)
Revenue:

Program Revenues:

Charges for services $ 1,360,110 $ 1,397,489 $ (37,379) Operating grants and contributions 227,079 248,668 (21,589) Capital grants and contributions 460,361 272,685 187,676 General Revenues:

Property tax 774,673 740,530 34,143
Sales tax 554,986 675,929 (120,943)
Transaction tax 677,824 1,092,247 (414,423)
Franchise tax 178,351 175,643 2,708
Business license tax 205,750 161,659 44,091
Other taxes 512,556 227,207 285,349
Investment earnings 65,141 12,073 53,068
Other revenue 16,346 102,860 (86,514)
Total Revenue 5,033,177 5,106,990 (73,813)
Expenses:

General government 1,241,170 1,000,427 240,743
Public safety 2,766,643 2,221,215 545,428
Public works 369,259 297,202 72,057
Community development 130,071 106,733 23,338
Parks 59,868 37,032 22,836
Interest on long-term debt 64,667 105,442 (40,775)
Total Expenses 4,631,678 3,768,051 863,627
Special and Extraordinary Items:

Special item - gain/loss on disposal of capital assets (9,000) 2,720 (11,720) Total Special and Extraordinary Items (9,000) 2,720 (11,720) Change in Net Position 392,499 1,341,659 (949,160)
Prior Period Adjustments - 24,167 (24,167)
Net Position, Beginning of Year 20,456,144 19,090,318 1,365,826 Net Position, End of Year $ 20,848,643 $ 20,456,144 $ 392,499 • The increase in capital grants and contributions is mainly due to contributions received from federal and state assistance in 2023.
• The decrease in transaction tax is due to less consumer spending as a result of ongoing inflation pressures.
• The decrease in sales tax is due to less consumer spending as a result of ongoing inflation pressures.

115
Item A.

City of Del Rey Oaks Management’s Discussion and Analysis

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets - The City's investment in capital assets as of June 30, 2023, amounted to $2.5 million (net of accumulated depreciation). This amount included land, buildings, improvements, furniture, equipment, and vehicles.

Debt Administration - At fiscal year end, the City had $2.23 million in debt. Additions to debt were due to compounding interest from the Federal Group International loan, while deletions were due to principal payments on the TAMC Measure X loan and lease purchase agreement.

FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements.

At the end of the current fiscal year, the City's governmental funds reported a total fund balance of $22.22 million. During the current fiscal year, the fund balance of the City's total governmental funds increased $324,277 thousand.

FUND BUDGETARY HIGHLIGHTS
General Fund - The original budgeted general fund revenues decreased by $125 thousand. General Fund estimated budgeted revenues exceeded the actuals by $109 thousand. The original budgeted general fund expenditures increased by $530 thousand. Actual expenditures were $340 thousand less than final budgeted expenditures.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The fiscal year 2023-24 budget is expecting a 5.9% increase in General Fund revenues as the City returns to a more normal economy. The budget is balanced.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City's finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Del Rey Oaks, 650 Canyon Del Rey Road, Del Rey Oaks, California 93940.

116
Item A.

BASIC FINANCIAL STATEMENTS

117
Item A.

ASSETS
Current Assets:

Cash and investments $ 4,634,121
Restricted cash and investments 8,656,972
Receivables:

Taxes 386,352
Accounts 30,033
Due from other governments 32,342
Other receivables 29,981
Land held for resale 8,904,673
Total Current Assets 22,674,474
Noncurrent Assets:

Leases receivable 120,663
Capital Assets:

Nondepreciable 549,500
Depreciable, net of accumulated depreciation 1,994,361
Total Capital Assets - Net 2,543,861
Total Noncurrent Assets 2,664,524
Total Assets $ 25,338,998

DEFERRED OUTFLOWS OF RESOURCES
OPEB Adjustments $ 65,712
Pension Adjustments 916,265
Total Deferred Outflows of Resources $ 981,977

LIABILITIES
Current Liabilities:

Accounts payable $ 234,434
Payroll related liabilities 69,903
Prepaid business licenses 156,932
Prepaid developer deposits 9,063
Long-term debt - due within one year 28,010
Total Current Liabilities 498,342
Noncurrent Liabilities:

Long-term debt - due in more than one year 2,202,166
Compensated absences 106,060
Net pension liability 1,919,495
Total OPEB liability 321,968
Total Noncurrent Liabilities 4,549,689
Total Liabilities $ 5,048,031

DEFERRED INFLOWS OF RESOURCES
Leases $ 98,342
OPEB Adjustments 92,585
Pension Adjustments 233,374
Total Deferred Inflows of Resources $ 424,301

NET POSITION
Net investment in capital assets $ 1,904,136
Restricted for land held for resale 8,904,673
Restricted for pension 322,928
Restricted for streets and roads 7,603,829
Restricted for habitat management 736,441
Restricted for capital projects 1,562,948
Unrestricted (186,312)
Total Net Position $ 20,848,643
City of Del Rey Oaks
Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of these financial statements.

118
Item A.

Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total General government $ 1,241,170 $ 369,635 -$ $ 460,361 $ 829,996 $ (411,174) Public safety 2,766,643 823,939 183,323 - 1,007,262 (1,759,381) Public works 369,259 109,970 43,756 - 153,726 (215,533) Community development 130,071 38,737 - - 38,737 (91,334) Parks 59,868 17,829 - - 17,829 (42,039)
Interest and fiscal charges 64,667 - - - - (64,667)
Total $ 4,631,678 $ 1,360,110 $ 227,079 $ 460,361 $ 2,047,550 $ (2,584,128) General Revenues and Special Item:

Taxes:

Property taxes 774,673
Sales tax 554,986
Transaction tax 677,824
Franchise tax 178,351
Business license tax 205,750
Other taxes 512,556
Investment earnings 65,141
Other revenues 16,346
Special item:

Gain (loss) on disposal of capital assets (9,000)
Total General Revenues and Special Items 2,976,627
Change in Net Position 392,499
Net Position - Beginning of Year 20,456,144
Net Position - End of Year $ 20,848,643
Net (Expense)
Revenue and
Change in Net
Position
City of Del Rey Oaks
Statement of Activities
For the Fiscal Year Ended June 30, 2023
Program Revenues
The accompanying notes are an integral part of these financial statements.

119
Item A.

Nonmajor Total
General SBR Construction Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and investments $ 2,891,099 -$ $ 2,799,190 $ 5,690,289 Restricted cash and investments 331,991 7,268,813 - 7,600,804 Receivables:

Taxes 364,043 - 22,309 386,352
Accounts 26,874 - 3,159 30,033
Due from other governments 32,342 - - 32,342
Other receivables 29,981 - - 29,981
Leases receivable 120,663 - - 120,663
Land held for resale 8,904,673 - - 8,904,673
Total assets $ 12,701,666 $ 7,268,813 $ 2,824,658 $ 22,795,137

LIABILITIES, DEFERRED INFLOW

OF RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 229,474 $ - $ 4,960 $ 234,434
Payroll related liabilities 69,903 - - 69,903
Prepaid business licenses 156,932 - - 156,932
Prepaid developer deposits 9,063 - - 9,063
Total liabilities 465,372 - 4,960 470,332
Deferred Inflows of Resources:

Leases 98,342 - - 98,342
Unavailable revenue 5,983 - - 5,983
Total Deferred Inflows of Resources 104,325 - - 104,325 Fund Balances:

Nonspendable
Leases 24,167 - - 24,167
Restricted:

Land held for resale 8,904,673 - - 8,904,673
Pension 322,928 - - 322,928
Streets and roads - 7,268,813 335,016 7,603,829
Habitat management - - 736,441 736,441
Capital projects - - 1,562,948 1,562,948
Wellness programs - - 14,833 14,833
Unassigned:

Economic uncertainties 1,637,349 - - 1,637,349
Unappropriated 1,242,852 - - 1,242,852
Total fund balances 12,131,969 7,268,813 2,819,698 22,220,480 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 12,701,666 $ 7,268,813 $ 2,824,658 $ 22,795,137 June 30, 2023
Governmental Funds
Balance Sheet
City of Del Rey Oaks
The accompanying notes are an integral part of these financial statements.

120
Item A.

Total Fund Balances - Total Governmental Funds $ 22,220,480 Amounts reported for governmental activities in the statement of net position were different because:

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the governmental funds balance sheet. The capital assets were adjusted as follows:

Capital assets $ 3,763,128
Less: accumulated depreciation (1,219,267)
Total Capital Assets 2,543,861
Contributions made to pension plans will not be included in the calculation of the City's net pension liability of the plan year included in this report and have been deferred and reported as deferred outflows of resources.

OPEB adjustments:

Difference between actual and expected experience 63,974 Change in assumptions (92,585)
Contribution subsequent to measurement date 1,738
Pension adjustments:

Net change in assumptions 194,448
Net difference between expected and actual experience 45,416 Net difference between projected and actual investment earnings 317,049 Net diffferences between employer's contributions and proportionate share of contributions (178,409) Net change in employer's proportion 157,521
Contribution subsequent to measurement date 146,866
Amounts due from others will not be collected soon enough to pay current period expenditures and are reported as deferred inflows of resources in governmental funds. 5,983 Long-term obligations were not due and payable in the current period. Therefore, they were not reported in the governmental funds balance sheet. The long-term liabilities were adjusted as follows: `
Long-term debt $ (2,230,176)
Compensated absences (106,060)
Net pension liability (1,919,495)
Total OPEB liability (321,968)
Total Long-Term Obligations (4,577,699)
Net Position of Governmental Activities $ 20,848,643
City of Del Rey Oaks
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2023
The accompanying notes are an integral part of these financial statements.

121
Item A.

Nonmajor Total
General SBR Construction Governmental Governmental
Fund Fund Funds Funds

REVENUES
Taxes:

Property taxes $ 774,673 $ - $ - $ 774,673
Sales tax 455,955 - 99,031 554,986
Transaction tax 508,336 - - 508,336
Franchise tax 178,351 - - 178,351
Business license tax 205,750 - - 205,750
Other taxes 643,875 - 32,187 676,062
Licenses and permits 105,560 - - 105,560
Fines, forfeits and penalties 7,248 - - 7,248
Charges for current services 1,159,455 - - 1,159,455
Intergovernmental revenues 252,895 - 434,544 687,439
Interest, rents and concessions 152,988 - - 152,988
Other revenues 16,342 - - 16,342
Total Revenues 4,461,428 - 565,762 5,027,190

EXPENDITURES
Current:

General government 1,122,628 - 18,685 1,141,313
Public safety 2,650,134 - 70,316 2,720,450
Public works 252,868 - 24,460 277,328
Community development 122,940 - 7,131 130,071
Parks 47,719 - - 47,719
Capital outlay 199,983 - 155,656 355,639
Debt service
Principal 27,791 - 88,621 116,412
Interest and fiscal charges 2,331 - 10,410 12,741
Total Expenditures 4,426,394 - 375,279 4,801,673
Excess (Deficiency) of Revenues over Expenditures 35,034 - 190,483 225,517

OTHER FINANCING SOURCES (USES)
Proceeds from finance purchase agreement 98,760 - - 98,760 Transfers in - - 65,000 65,000
Transfers out (35,000) - (30,000) (65,000)
Total Other Financing Sources (Uses) 63,760 - 35,000 98,760 Net Change in Fund Balances 98,794 - 225,483 324,277
Fund Balances Beginning 12,033,175 7,268,813 2,594,215 21,896,203 Fund Balances Ending $ 12,131,969 $ 7,268,813 $ 2,819,698 $ 22,220,480 City of Del Rey Oaks
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Fiscal Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements.

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Item A.

Net Change in Fund Balances - Total Governmental Funds $ 324,277 Amounts reported for governmental activities in the statement of activities and changes in net position were different because:

Governmental funds report capital outlay as expenditures. However, in the government-wide statement of activities and changes in net position, the cost of those assets was allocated over their estimated useful lives as depreciation expense.

Capital outlay 343,632
Depreciation expense (187,460)
Gain (loss) on disposal of capital assets (9,000)
Revenues in the governement-wide statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. 5,983
Long-term compensated absences and claims payables were reported in the government-wide statement of activities, but they did not require the use of current financial resources and were not reported as expenditures in governmental funds. (1,430) In governmental funds, actual contributions to pension plans are reported as expenditures in the year incurred. However, in the government-wide statement of activities, only the current year pension expense as note in the plans' valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. 14,625
In governmental funds, actual contributions to the OPEB plan is reported as expenditures in the year incurred.

However, in the government-wide statement of activities, only the current year OPEB expense as noted in the plan's valuation reports is reported as an expense, as adjusted for deferred inflows and outflows of resources. (63,854) The governmental funds report debt proceeds as an other financing source, while repayment of debt principal is reported as an expenditure. The net effect of these differences in the treatment of long-term debt and related items is as follows:

Repayment of debt principal 116,412
Proceeds from capital lease (98,760)
Interest expense on long-term debt was reported in the government-wide statement of activities and changes in net position, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the net change in compound interest from current year to prior year. (51,926) Change in Net Position of Governmental Activities $ 392,499 City of Del Rey Oaks
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities For the Fiscal Year Ended June 30, 2023
The accompanying notes are an integral part of these financial statements.

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Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Del Rey Oaks, California, (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies.

The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

A. Financial Reporting Entity
The City of Del Rey Oaks, California was incorporated as a general law city on September 3, 1953. The City operates under a city council-manager form of government and provides a wide range of municipal services.

As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City Council acts as the governing board.

In addition, the City staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the government-wide financial statements to emphasize their legal separateness from the City. The City had no component units as of June 30, 2023.

The City applies all applicable GASB pronouncements for certain accounting and financial reporting guidance. In December of 2010, GASB issued GASBS No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This statement incorporates pronouncements issued on or before November 30, 1989 into GASB authoritative literature. This includes pronouncements by the Financial Accounting Standards Board (FASB), Accounting Principles Board Opinions (APB), and the Accounting Research Bulletins of the American Institute of Certified Public Accountants' (AICPA) Committee on Accounting Procedure, unless those pronouncements conflict with or contradict with GASB pronouncements.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present a summary of the governmental activities for the City. Fiduciary activities of the City are not included in these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The City did not have any business-type activities during the year. These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources (including capital assets, as well as infrastructure assets, and long-term liabilities), are included in the accompanying Statement of Net Position.

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Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. In conformity with the City’s indirect cost allocation plan, certain indirect costs are included in the program expense reported for individual functions and activities.

Certain types of transactions are reported as program revenues for the City in three categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated. The following interfund activities have been eliminated:
• Transfers in/Transfers out
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to 90 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues, other taxes, interest revenue, rental revenue and certain charges for services. Fines, forfeitures, and licenses and permits are not susceptible to accrual because they are usually not measurable until received in cash. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.

125
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Major individual governmental funds are reported as separate columns in the fund financial statements.

The following funds are major funds:

General Fund - The General Fund is the general operating fund of the City. It accounts for the City’s primary services (Public Safety, Public Works, Park, etc.) and is the primary operating unit of the City.

SBR Construction Fund - This capital project fund was established to account for the financial resources received as a result of the dissolution of FORA to be used for the completion of construction services for the South Boundary Roadway project that were initiated by FORA.

The following funds are nonmajor funds:

Gas Tax Fund - This special revenue fund was established to account for the financial resources required to be used on street/road projects.

SB 1 Fund - This special revenue fund was established to account for the financial resources received for transportation purposes.

Measure X Fund - This special revenue fund was established to account for the financial resources received as part of the Measure X retail transactions and use tax. The funds are to be used to fund transportation safety and mobility projects in Monterey County.

BSCC Officer Wellness & Mental Health Fund – This special revenue fund was established to account for the financial resources received in grants to be used for the officer wellness and mental health.

Fora Habitat Management Fund – This special revenue fund was established to account for the financial resources received as a result of the dissolution of FORA to be used maintenance and management of properties that were previously under the purview of FORA.

American Rescue Plan Act (ARPA) Fund – This special revenue fund was established to account for the financial resources received in federal grants as part of the Covid-19 recovery.

Capital Projects Fund – This capital project fund accounts for the resources accumulated for the acquisition of fixed assets or construction of major capital projects. Significant maintenance projects and major purchases of equipment are also accounted for in the capital projects fund.

Prop 68 Parks Grant Fund - This capital project fund was established to account for the financial resources received from the state to be used for park improvements.

SBR Engineering Fund - This capital project fund was established to account for the financial resources received as a result of the dissolution of FORA to be used for the completion of engineering services for the South Boundary Roadway that were initiated by FORA.

SBR/GJM Intersection Fund - This capital project fund was established to account for the financial resources received as a result of the dissolution of FORA to be used for the completion of an intersection construction project that was initiated by FORA.

126
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
C. Cash, Cash Equivalents and Investments
The City pools its cash and investments of all funds. Interest earned as a result of pooling is distributed to the appropriate funds utilizing a formula based on the average daily balance of cash of each fund. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:
• Interest Rate Risk
• Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
• Foreign Currency Risk
Other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF). Under Federal Law, the State of California cannot declare bankruptcy; therefore, deposits in the LAIF shall not be subject to either of the following: (a) transfer or loan pursuant to Government Code Section 16310, 16312, or 16313, or (b) impoundment or seizure by any state official or state agency.

Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income.

The following is a summary of the definition of fair value:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
• Market approach - This approach uses prices generated for identical or similar assets or liabilities. The most common example is an investment in a public security traded in an active exchange such as the NYSE.
• Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures. • Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.

Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.

127
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
D. Interfund Receivables and Payables
Items classified as interfund receivables/payables are referred to as “advances to/advances from other funds” or as “due to/from other funds”. Due to/from other funds include short-term lending/borrowing transactions between funds. This classification also includes the current portion of an advance to or from another fund. Advances to/advances from other funds represents non-current portions of any long-term lending/borrowing transactions between funds. This amount will be equally offset by a reserve of fund balance which indicates that it does not represent available financial resources and therefore, is not available for appropriation.

E. Receivables
Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. Revenues earned but not collected by year-end are accrued. No allowance for uncollectible accounts receivable has been provided as management has determined that uncollectible accounts have historically been immaterial and the direct write-off method does not result in a material difference from the allowance method.

F. Assets Held for Sale
Property that has been classified as held for sale have met the following criteria:
• Management has committed to a plan to sell the asset; • An active program to locate a buyer and other actions required to complete the plan of sale have been initiated;
• The sale of the property or asset within one year is probable and will qualify for accounting purposes as a sale;
• The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and
• Actions required to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

G. Leases Receivable
The City’s lease receivable is measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable plus incentive payments received. The deferred inflow of resources is amortized on a straightline basis over the term of the lease. If there is no stated rate in the lease contract (or if the stated rate is not the rate the City charges the lessee) and the implicit rate cannot be determined, the City uses its own estimated incremental borrowing rate as the discount rate to measure lease receivables. The City’s estimated incremental borrowing rate is based on its actual incremental borrowing rate for the most recent debt issuance.

H. Capital Assets
Capital outlays are recorded as expenditures of the General, Special Revenue, and Capital Projects Funds and as assets in the Government-Wide Financial Statements to the extent the City's capitalization threshold is met.

128
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Capital assets, which include property, facilities, equipment, and infrastructure purchased or acquired are carried at historical cost or estimated historical cost. Contributed fixed assets are recorded at estimated fair market value at the time received. Infrastructure fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems have been capitalized on a prospective basis, from July 1, 2003. Prior to July 1, 2003, infrastructure assets were not capitalized. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 for equipment, $25,000 for facilities and improvements, $150,000 for infrastructure, all land, and an estimated useful life in excess of one year.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable.

Interest is capitalized on the construction or acquisition of major assets using debt proceeds. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period.

No interest was capitalized during the year ended June 30, 2023.

Property, facilities, equipment, and infrastructure are depreciated using the straight-line method over the following estimated useful lives:

Buildings 40 Years
Improvements 5-20 Years
Equipment 5-10 Years
Vehicles 8 Years
Furniture and Fixtures 10 Years
Infrastructure 20-50 Years
I. Deferred Outflows/Deferred Inflows
In addition to assets, the Statement of Net Position includes a separate section for deferred outflow of resources. This separate financial statement element, deferred outflow of resources, represents a consumption of net position that applies to a future period(s), and as such will not be recognized as an outflow of resources (expenses/expenditure) until then. The City has recognized deferred outflows of resources related to the recognition of the net pension liability and OPEB liability reported in the Statement of Net Position.

In addition to liabilities, the Statement of Net Position reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and as such, will not be recognized as an inflow of resources (revenue) until that time. The City has recognized deferred inflows of resources related to the recognition of the lease revenue, pension liability and OPEB liability reported in the Statement of Net Position.

J. Interest Payable
In the government-wide financial statements, interest payable of long-term debt is recognized as an incurred liability for governmental fund types. The City has not allocated the interest on long-term debt to departments.

In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.

129
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
K. Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, and death or in an emergency as defined by the Plan. Member contributions for the fiscal year ending June 30, 2023 totaled $30,600.

The laws governing deferred compensation plan assets require plan assets to be held by a Trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City's property and are not subject to City control, they have been excluded from these financial statements.

L. Compensated Absences
Compensated absences comprise of unpaid vacation, which are accrued as earned. Unused vacation may be accumulated up to 160 hours and is paid at the time of termination from City employment. The liability for compensated absence is determined annually. The long-term portion is recorded in the Statement of Net Position and represents a reconciling item between the fund and government-wide presentations. The following is a summary of the changes in compensated absences for the fiscal year ended June 30, 2023:

M. Long-Term Liabilities
In the government-wide financial statements, long-term liabilities are reported as liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.

Debt issuance costs are expensed in year incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

N. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:

Nonspendable
Nonspensable fund balance are amounts that cannot be spent because they are either (a) not in spendable form, such as long term receivables or (b) legally or contractually required to be maintained intact, such as a trust that must be retained in perpetuity.

Due Within
Description June 30, 2022 Earned Taken June 30, 2023 One Year Government Activities $ 104,629 $ 9,152 $ 7,721 $ 106,060 $ 44,219

130
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Restricted
Restricted fund balance are restricted when constrains placed on the use of resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.

Committed
Committed fund balance are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision-making authority and does not lapse at year-end. Committed fund balances are imposed by the City Council.

Assigned
Assigned fund balance are intended to be used for specific purposes that are neither considered restricted or committed. Fund balance may be assigned by the City Manager.

Unassigned
The Unassigned Fund Balance category represents fund balance which may be held for specific types of uses or stabilization purposes, but is not yet directed to be used for a specific purpose.

The detail of amounts reported for each of the above defined fund balance categories is reported in the governmental funds balance sheet.

Flow Assumption /Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise.

N. Net Position
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position.

Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position."
The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.

131
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.

O. Property Taxes
County tax assessments include secured and unsecured property taxes. "Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the property being taxed.

Monterey County is responsible for the assessment, collection and apportionment of property taxes for all taxing jurisdictions. Property taxes are levied in equal installments on November 1 and February 1. They become delinquent on December 10 and April 10, respectively. The lien date is January 1 of each year.

Property taxes are accounted for in the General Fund. Property tax revenues are recognized when they become measurable and available to finance current liabilities. The City considers property taxes as available if they are collected within 90 days after year end. Property tax on the unsecured roll are due on the January 1 lien date and become delinquent if unpaid on August 31. However, unsecured property taxes are not susceptible to year end accrual.

The City is permitted by Article XIIIA of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00 per $100 of full cash value.

P. Unearned Revenue
Unearned revenue arises when assets (such as cash) are received before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements (such as qualified expenditures) are met are recorded as liabilities from unearned revenue.

Q. Unavailable Revenue
In the governmental fund financial statements, receivables associated with non-exchange transactions that will not be collected within the availability period have been recorded as deferred inflows as unavailable revenue.

S. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

T. Benefit Plans
Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

132
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27 (GASB Statement No. 68) requires that the reported results pertain to liability and asset information within certain defined timeframes.

For this report, the following timeframes were used:

Valuation Date (VD) ....................................... June 30, 2021 Measurement Date (MD) ................................ June 30, 2022 Measurement Period (MP) .............................. July 1, 2021 to June 30, 2022 Other Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources, and OPEB expense, information about the City’s Retiree Benefits Plan (the Plan) and additions to/deductions are based on when they are due and payable in accordance with the benefit terms for the measurement period included in the OPEB plan’s actuarial reports.

Valuation Date (VD) ....................................... June 30, 2021 Measurement Date (MD) ................................ June 30, 2022 Measurement Period (MP) .............................. June 30, 2021 to June 30, 2022 O. Implementation of New Accounting Pronouncements
During the year, the City implemented GASB Statement No. 96, Subscription-based Information Technology Arrangements. GASB Statement No. 96 is an accounting pronouncement issued by the Governmental Accounting Standards Board (GASB) that provides guidance on how the costs and investments for subscription-based information technology arrangements (SBITAs) are accounted for and disclosed by governmental entities. This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. As of June 30, 2023, the City did not identify any material SBITAs that were required to be reported under GASB 96.

U. Upcoming New Accounting Pronouncements
The City is currently analyzing its accounting practices to determine the potential impact on the financial statements of the following recent GASB Statements:

GASB Statement No. 100, Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62, effective fiscal 2024.

This statement enhances accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. GASB 100 also requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature.

And, GASB 100 addresses how information that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI).

133
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
GASB Statement No. 101, Compensated Absences, effective fiscal 2025.

Updates the recognition and measurement guidance for compensated absences by:

1. Aligning the recognition and measurement guidance under a unified model

2. Amending certain previously required disclosures

3. Amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability

4. Supersedes GASB 16
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2023, cash and investments were reported in the financial statements as follows:

A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest, and places the City ahead of general creditors of the institution.

The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposits Insurance Corporation (FDIC).

The bank balances before reconciling items totaled $874,271 at June 30, 2023 and were different from carrying amounts due to deposits in transit and outstanding checks. As of June 30, 2023, the City’s cash balances exceeded insurance by $624,271 but were collateralized as discussed above.

B. Restricted Cash with Fiscal Agent
For the year ended June 30, 2023, the City had a balance of $322,928 in a Public Agency Retirement Services (PARS) Pension Rate Stabilization Program (PRSP) 115 irrevocable trust for pensions.

Participating agencies maintain oversight of investment management and control over the risk tolerance level. Assets in the plan can be accessed to offset unexpected rate increases or be used as a rainy-day fund related to their pension plan (CalPERS). These assets are not dedicated to providing plan benefits to plan participants and are not directly used to pay benefits until such time as the City transfers the funds from the PARS trust to the pension plan (CalPERS). The trust restricts the use of the assets to be used solely for pension related expenses. Amounts held in Trust for FORA Dissolution Administration and Successor Agency obligations are also reported as restricted cash and investments. ` Total
Cash and
Unrestricted Restricted Investments
Cash in bank $ 815,613 $ - $ 815,613
Cash with fiscal agent - 8,656,972 8,656,972
Local Agency Investment Fund 3,818,508 3,818,508 -
Total cash and investments $ 4,634,121 $ 8,656,972 $ 13,291,093 Statement of Net Position

134
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
C. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques. This hierarchy has three levels. • Level 1 inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable.
• Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.

The City has the following recurring fair value measurements as of June 30, 2023:
• California Local Agency Investment Fund (LAIF) of $3,818,508; valued using Level 2 inputs.

D. Investment Policies
City Investment Policy
The City has an investment policy, which is in accordance with the California Government Code, the following investments are authorized:

Maximum Maximum
Maximum Total of Investment in
Authorized Investment Type Maturity (1) Portfolio Anyone Issuer Local Agency Bonds 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Banker's Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% None
Repurchase Agreements 1 year 20% None
Reverse Repurchase Agreements 92 days 20% None
Medium-Term Notes 5 years 30% None
Mutual Funds N/A 20% 10%
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-Through Securities 2 years 20% None
County Pooled Investment Funds 1 year 20% None
Local Agency Investment Fund (LAIF) N/A None None
JPA Pools (other investment pools) N/A None None

135
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
E. External Investment Pool
The City's investments with LAIF at June 30, 2023, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes
These are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities
The bulk of asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables.

LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at http://www.treasurer.ca.gov/pmia-laif/laif/index.asp.

F. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to changes in market interest rates. It is the City’s practice to manage its exposure to interest rate risk is by purchasing a combination of shorter and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for City’s operations.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2023, the City’s investments were in compliance with the ratings required by the City’s investment policy, indenture agreements and Government Code.

Concentrations of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2023, the City had no investments in any one issuer (other than U.S. Treasury securities, mutual funds and external investment pools) that represented 5% or more of the total City investments.

Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code does not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

136
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 3 - INTERFUND TRANSACTIONS
A. Transfers In/Out
With Council approval resources may be transferred from one fund to another. Transfers routinely reimburse funds that have made an expenditure on behalf of another fund. Transfers may also be made to pay for capital projects or capital outlays, lease or debt service payments, and operating expenses. The City transferred $35,000 from the General Fund to the Capital Projects Fund and $30,000 from the ARPA Fund to the Proposition 68 Grant Fund during the fiscal year ended June 30, 2023.

B. Interfund Receivables and Payables
The timing of when cash is received and paid can result in a negative cash balance in a fund as of fiscal year end. At year-end, a liability, “Due To Other Funds” is created to eliminate any negative cash balances along with a corresponding asset, “Due From Other Funds.” In the following fiscal year, the liabilities are settled and the assets are liquidated. The City did not have any interfund receivables and payables as of June 30, 2023.

NOTE 4 - LEASES RECEIVABLE
As of June 30, 2023, the City recognized two contract as a lease and implemented the applicable accounting and reporting requirements of a lessor under GASB 87. The following schedule summarizes the lease balances and the impact on beginning net position and fund balance:

Lease Deferred Inflows Prior Period
Description Receivable of Resources Adjustment
Initial Net Present Value $ 307,003 $ 307,003 $ -
Accumulated Amortization - (214,902) -
Other adjustments - - -
Principal Payments (223,440) (30,700) -
Beginning Balances 7/1/2022 83,563 61,401 -
Current Amortization - (48,247) -
Issuance 85,188 85,188 -
Current Principal Payments (48,087) - -
Ending Balances 6/30/2023 $ 120,664 $ 98,342 $ -

137
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 5 - CAPITAL ASSETS
Capital assets consisted of the following as of June 30, 2023:

During fiscal year ended June 30, 2019, the City reclassified $8,904,673 in land to “held for resale” as the City is in the process of selling the land, which the City originally received as part of an Economic Development Conveyance through the Fort Ord Reuse Authority (FORA). The land remained classified as held for sale as of June 30, 2023.

Depreciation expense was charged to the functions of the government as follows:

Balance Balance
June 30, 2022 Additions June 30, 2023
Non-depreciable:

Land $ 549,500 -$ -$ 549,500 $
Total Non-Depreciable 549,500 - - 549,500
Depreciable:

Buildings and Improvements 691,438 - - 691,438
Furniture, Equipment, and Vehicles 752,487 123,266 (9,905) 865,848 Structure and Improvements 1,435,976 121,606 - 1,557,582 Finance purchase assets - 98,760 - 98,760
Total Depreciable 2,879,901 343,632 (9,905) 3,213,628
Less Accumulated Depreciation for:

Buildings and Improvements (436,594) (15,828) - (452,422) Furniture, Equipment, and Vehicles (413,268) (83,831) (496,194) 905 Structure and Improvements (182,850) (68,049) - (250,899) Finance purchase assets - (19,752) - (19,752)
Total Accumulated Depreciation (1,032,712) (187,460) (1,219,267) 905 Total Depreciable Capital Asset - Net 1,847,189 156,172 (9,000) 1,994,361 Total Capital Assets - Net $ 2,396,689 $ 156,172 $ (9,000) $ 2,543,861 Deletions/
Adjustments General Government $ 15,159
Police Department 70,126
Parks 12,147
Public Works 90,028
Total depreciation expense $ 187,460

138
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE 6 - LONG-TERM LIABILITIES
The City's long-term liabilities consisted of the following as of June 30, 2023:

Records Management Software Lease Purchase Agreement
The City entered into a software and service agreement with Sun Ridge System, Inc. to receive computer software and services from Sun Ridge System, Inc. The lease qualifies as a leases purchase agreement for accounting purposes and therefore have been recorded at the present value of future minimum lease payments at the date of the inception of the lease. The principal and interest payments on the lease are $8,713 with the interest rate of 2.721%.

As of June 30, 2023, the annual debt service requirements on the Records Management Software Lease Purchase Agreement are as follows:

Body Worn Cameras, Data Storage and Software Finance Purchase Agreement The City entered into a software, hardware, and services finance purchase agreement with Motorola Solutions to receive body worn cameras, data storage, and software from Motorola Solutions. The agreement qualifies as a finance purchase agreement for accounting purposes and, therefore, have been recorded at the present value of future minimum lease payments at the date of the inception of the agreement. The principal payments on the agreement are $19,752.

As of June 30, 2023, the annual debt service requirements on the Body Worn Cameras, Data Storage and Software Finance Purchase Agreement are as follows:

Balance Balance Due Within
Description June 30, 2022 Additions Retirements June 30, 2023 One Year Finance purchase agreements:

Police department - body cameras $ - $ 98,760 $ 19,752 $ 79,008 $ 19,752 Software 24,777 - 8,039 16,738 8,258
Subtotal finance purchase agreements 24,777 98,760 27,791 95,746 28,010 Loans payable:

Federal Group International, LLC 1,200,000 - - 1,200,000 - Federal Group International, LLC
Compound Interest 338,528 51,926 - 390,454 -
TAMC Measure X Loan 632,600 - 88,621 543,979 -
Subtotal loans payable 2,171,128 51,926 88,621 2,134,433 - Total $ 2,195,905 150,686$ $ 116,412 $ 2,230,179 28,010$ Year Ending June 30 Principal Interest Total
2024 8,258$ $ 455 8,713$
2025 8,480 233 8,713
Total 16,738$ $ 17,426$ 688
Year Ending June 30 Principal Interest Total
2024 19,752$ -$ 19,752$
2025 19,752 19,752 -
2026 19,752 19,752 -
2027 19,752 19,752 -
Total 79,008$ -$ 79,008$

139
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Federal Group International, LLC Loan Payable
The City has a promissory note with Federal Group International, LLC in the amount of $1,200,000, $700,000 of the note is the City's obligation to pay for funds loaned by Federal/JER Associates I, LLC to the former Redevelopment Agency of the City of Del Rey Oaks, the remaining $500,000 of the note evidences the City's obligation to pay the holder as settlement of claims between the City and Bellmont Rock Holdings, LLC. Interest is accrued at 5% per annum on the $700,000 beginning June 1, 2014, until the entire outstanding loan amount, plus interest, is paid in full. Payments on the note, once they commence, shall be for a five-year period, however if the note is not paid in full at the end of the five-year term it shall automatically renewal, once, for an additional five-year term. No payment shall be due under this loan until commencement of construction on the Fort Ord property and are based on an increase of 50% of City revenue associated with the development of the entire property.

TAMC Measure X Loan Payable
In December 2018, the City entered into an agreement with the Transportation Agency for Monterey County (TAMC) for the purpose of receiving advance funding for the Del Rey Oaks Slurry Seal (the project). As of June 30, 2021, the TAMC had advanced $817,659 to the City. The loan is payable from Measure X revenue, which can only be estimated year to year, so no amortization schedule has been established at this time. An interest rate of 2.5% is fixed until such time as the Monterey County Pool Quarterly Rate rises above 2.0%, at which point the interest rate will be variable, tied to the Monterey County Pool Quarterly Rate plus 50 basis points, only becoming fixed again at 2.5% when the Monterey County Pool Quarterly Rate drops below 2.0%. The outstanding balance on the loan at June 30, 2023, was $543,979.

NOTE 7 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, thefts, damage to, or destruction of assets; errors and omissions; injuries to workers; and natural disasters. These risks are covered by a combination of commercial insurance purchased from independent third parties and participation in the Monterey Bay Area Self Insurance Authority (MBASIA), which is a public entity risk pool. There have not been any significant reductions in insurance coverage as compared to the previous year. Settled claims from these risks have not exceeded commercial coverage for the past three fiscal years.

MBASIA was formed under a joint powers agreement (JPA) pursuant to California Government Code Section 6500 et seq. effective July 1, 1982. MBASIA is administered by a Board of Directors consisting of thirteen members appointed by the cities participating. The Board controls the operations of the JPA, including selection of management and approval of operating budgets, independent of any influence by member cities beyond their representation on the Board. Each member city pays a premium commensurate with the amount of predicted losses and shares surpluses and deficits proportionate to their participation in the JPA.

Financial statements for the Authority may be obtained from www.mbasia.org.

NOTE 8 - CALPERS PENSION PLAN
General Information about the Pension Plans
Plan Description - All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous and Safety Employee Pension Plans (the Plans); cost-sharing multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and City resolution.

CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

140
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 55 with statutorily reduced benefits. All members are eligible for non-industrial disability benefits after 10 years of service. The death benefit is the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for the Plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Employees Covered - At June 30, 2023 (fiscal year), June 30, 2021 (the valuation date), the following employees were covered by the benefit terms for the Plans:

Contributions - Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are 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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2023, the City’s contributions were as follows:

Tier 1 PEPRA Police Police - PEPRA
Benefit formula 2% @ 55 2% @ 62 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for Life Monthly for Life Monthly for Life Monthly for Life Retirement age 55 62 50 57
Monthly benefits as a
% of eligible compensation 2.00% 2% 3.00% 2-2.70%
Required employee contribution rates 7.00% 6.75% 9.000% 12.000% Required employer contribution rates 10.87% 7.47% 21.927% 13.034% Miscellaneous Safety Miscellaneous Safety
Active 3 11
Transferred 2 3
Separated 3 2
Retired 7 14
Total 15 30
Employer
Contributions
Miscellaneous $ 39,951
Safety 106,914
Total Employer Contributions $ 146,865

141
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, the City reported net pension liabilities for its proportionate shares of the net pension liability as follows:

The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2022, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Plans as of June 30, 2022 and 2023 was as follows:

For the year ended June 30, 2023, the City recognized pension expense of $132,241 for the plans.

At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

The City reported $146,865 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2024.

Miscellaneous
Safety
Total
Proportionate Share of
Net Pension
Liability/(Asset)
$ 551,615
1,367,880
$ 1,919,495
Miscellaneous Safety Combined Plans
Proportion - June 30, 2022 0.01115% 0.01824% 0.01575%
Proportion - June 30, 2023 0.01179% 0.01991% 0.01662%
Change - Increase/(Decrease) 0.00064% 0.00167% 0.00087% Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ 194,448 $ -
Differences between Expected and Actual Experience 67,689 22,273 Differences between Projected and Actual Investment Earnings 317,049 - Differences between Employer's Contributions and
Proportionate Share of Contributions 26,280 204,689
Change in Employer's Proportion 163,933 6,412
Pension Contributions Made Subsequent to Measurement Date 146,865 - Total $ 916,264 $ 233,374
Miscellaneous and Safety

142
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions - The total pension liabilities in the June 30, 2021 actuarial valuations were determined using the following actuarial assumptions:

Discount Rate - The discount rate used to measure the total pension liability was 6.80 percent for each Plan. To determine whether the municipal bond rate should be used in the calculation of a 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. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.80 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 6.80 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS’ website.

The long-term expected rate of return on pension plan investments was determined using a building-block 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 longterm market return expectations as well as the expected pension fund cash flows. Using historical returns Miscellaneous Safety Total
$ 50,358 $ 67,944 $ 118,302
54,236 77,791 132,027
38,628 53,500 92,128
61,800 131,767 193,567
- - -
- - -
$ 205,022 $ 331,002 $ 536,024
2024
Deferred Outflows/(Inflows) of Resources
Total
2025
2026
2027
Thereafter
2028
Fiscal Year
Ending June 30:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:

Discount Rate 6.80%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase (1)
Investment Rate of Return 6.8% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' membership data for all funds

143
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
of all the funds’ asset classes, expected compound 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 fund. The expected rate of return was set by calculating the rounded 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 long-term returns.

The expected rate of return was then set equivalent to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The table below reflects the 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.

These rates of return are net of administrative expenses.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Assumed Long-Term
Asset Expected Real
Asset Class (a) Allocation Return (1)(2)
Global Equity Cap Weighted 30.00% 4.54%
Global Equity NonCap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Study.

Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 860,682 $ 2,075,093
Current 6.90% 6.90%
Net Pension Liability 551,615 $ 1,367,880
1% Increase 7.90% 7.90%
Net Pension Liability 297,329 $ 789,894

144
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Pension Plan Fiduciary Net Position - Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

NOTE 9 - OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description - The City of Del Rey Oaks has contracted with the Public Employees Retirement System (PERS) under the PERS Care Health Plan to provide benefits of the Meyers-Geddes State Employees' Medical and Hospital Care Act per Government Code Section 22850.

The Plan provides for continuation of medical insurance benefits for certain retirees or annuitants and their dependents. The Plan can be amended by action of the City Council on passing a resolution.

Benefits Provided - The City contributes toward post-retirement benefits for employees who retire after age 50 with at least 5 years of service. The City will pay the minimum CalPERS PEMHCA contribution.

The monthly payment is $143 in 2021 and $149 in 2022 and is expected to increase further in future years.

Payments are made for as long as the retired employee or dependent spouse is living.

Employees Covered by Benefit Terms –
At June 30, 2022 (the measurement date), the benefit terms covered the following employees:

Contributions - The City makes contributions based on an actuarially determined rate and are approved by the authority of the City’s Council. Total contributions to the OPEB plan during the year were $1,738.

Total benefit payments included in the measurement period were $1,480. The actuarially determined contribution for the measurement period was $74,782. The City’s contributions were 0.21% of covered employee payroll during the measurement period June 30, 2022 (reporting period June 30, 2023).

Employees are not required to contribute to the plan. There have been no assets accumulated in a trust to provide for the benefits of this plan.

Actuarial Assumptions
Active employees 11
Inactive employees 2
Total employees 13
Valuation Date: June 30, 2021
Measurement Date: June 30, 2022
Actuarial Cost Method: Entry-Age Normal Cost Method
Amortization Period: 8.8 years
Actuarial Assumptions:

Discount Rate 4.09%
Inflation 2.75%
Salary Increases 3.25%
Healthcare Trend Rate 4.00%
Mortality 2017 CalPERS OPEB Assumptions Model
for miscellaneous
Retirement 2017 CalPERS OPEB Assumptions Model
for miscellaneous public employees with

2.0% at 55 retirement.

145
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Discount Rate - The discount rate was taken from the S&P Municipal Bond 20 Year High Grade Rate Index, which was 4.09% as of June 30, 2022 ( the measurement date).

Changes in the Total OPEB Liability - The following summarizes the changes in the total OPEB liability during the year ended June 30, 2023, for the measurement date of June 30, 2022:

The City’s plan is nonfunded, meaning there have not been assets placed into an irrevocable trust, therefore the plan fiduciary net position is zero.

Deferred Inflows and Outflows of Resources - At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Of the total amount reported as deferred outflows of resources related to OPEB, $1,738 resulting from City contributions subsequent to the measurement date and before the end of the fiscal year will be included as a reduction of the total OPEB liability in the year ended June 30, 2024.

Fiscal Year Ended June 30, 2023
(Measurement Date June 30, 2022)
Total OPEB
Liability
Plan
Fiduciary
Net Position
Net OPEB
Liability
(Asset)
Balance at June 30,2022 $ 428,334 $ - $ 428,334
Service cost 58,684 - 58,684
Interest in Total OPEB Liability 9,219 - 9,219
Balance of changes in assumptions (171,212) - (171,212) Benefit payments (3,057) - (3,057)
Net changes (106,366) - (106,366)
Balance at June 30, 2023 $ 321,968 $ - $ 321,968
Covered Employee Payroll $ 1,466,891
Total OPEB Liability as a % of Covered Employee Payroll 21.95% Plan Fid. Net Position as a % of Total OPEB Liability 0.00% Service Cost as a % of Covered Employee Payroll 4.00%
Net OPEB Liability as a % of Covered Employee Payroll 21.95% Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience $ 63,974 $ - Change in assumptions - 92,585
OPEB contribution subsequent to measurement date 1,738 - Totals $ 65,712 $ 92,585

146
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

OPEB Expense - The following summarizes the OPEB expense by source during the year ended June 30, 2023, for the measurement date of June 30, 2022:

The following summarizes changes in the total OPEB liability as reconciled to OPEB expense during the year ended June 30, 2023, for the measurement date of June 30, 2022:

Sensitivity to Changes in the Municipal Bond Rate - The total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a municipal bond rate (used to determine the discount rate) that is one percentage point lower or one percentage point higher, is as follows:

Year Ended June 30,
2024 $ (733)
2025 (733)
2026 (733)
2027 (392)
2028 470
Thereafter (26,490)
Total $ (28,611)
Service cost $ 58,684
Interest in TOL 9,219
Difference between actual and expected experience 11,667 Change in assumptions (12,401)
OPEB Expense $ 67,169
$ 321,968
(428,334)
(106,366)
Changes in deferred outflows 77,635
Changes in deferred inflows 92,585
Employer contributions and implict subsidy 3,315
OPEB Expense $ 67,169
Total OPEB liability ending
Total OPEB liability begining
Change in total OPEB liability
(1% Decrease ) 4.09% (1% Increase )
Total OPEB Liability $ 398,789 $ 321,968 $ 263,691
Municipal Bond Rate

147
Item A.

City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Sensitivity to Changes in the Healthcare Cost Trend Rates - The total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates, is as follows:

NOTE 10 - COMMITMENTS AND CONTINGENCIES
A. Lawsuits
The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City.

Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants if required by and in accordance with the provisions of the Federal Single Audit Act Amendments of 1996 and applicable State requirements. For Federal programs, the City did not reach the level of qualifying expenditures during the current fiscal year that would require a single audit.

Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time.

The City expects such amounts, if any, to be immaterial.

NOTE 11 - INTERGOVERNMENTAL AGREEMENTS
The City has an agreement with the City of Seaside for fire protection and related services to be provided by Seaside pursuant to Government Code Section 55632. The annual fee for these services for fiscal year ending June 30, 2023 was $219,102. Either party may cancel the agreement with at least 90 days written notice.

The City has an agreement, effective as of October 2018, with the Monterey Peninsula Airport District (Airport), a Special District, for the City to provide law enforcement services to the Airport pursuant to Government Code Sections 54981 and 55632. The City received $774,306, a portion of the annual fee of $1,097,408, from the Airport for the initial year, then each subsequent year the fee will be increased by

2.5% per year or 50% of known cost increases, subject to the annual true up of costs to account for actual costs incurred by the City. The annual fee for these services for fiscal year ending June 30, 2023 was $1,083,650.
(1% Decrease ) 4.00% (1% Increase )
Total OPEB Liability $ 264,301 $ 321,968 $ 396,789
Trend Rate

148
Item A.

REQUIRED SUPPLEMENTARY INFORMATION

149
Item A.

Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes:

Property taxes $ 737,700 $ 738,700 $ 774,673 $ 35,973
Other taxes 2,078,000 1,870,000 1,992,267 122,267
Licenses and permits 96,300 96,300 105,560 9,260
Reimbursements 1,000 1,000 - (1,000)
Fines, forfeits and penalties 5,200 5,200 7,248 2,048
Grants 175,600 257,500 252,895 (4,605)
Current services 1,299,850 1,299,850 1,159,455 (140,395) Parks and recreation 74,100 74,100 65,141 (8,959)
Other 10,000 10,000 104,189 94,189
Total Revenues 4,477,750 4,352,650 4,461,428 108,778

EXPENDITURES
Payroll and benefits 2,711,300 2,711,600 2,870,001 (158,401) Office and Supplies 126,280 127,280 96,308 30,972
Utility and services 166,600 166,600 174,493 (7,893)
Other services 50,300 49,300 28,790 20,510
Outside services 747,800 1,298,897 824,976 473,921
Auto ops 62,300 62,300 61,057 1,243
Police and fire 228,800 228,800 230,136 (1,336)
Streets and storm water 23,300 23,300 33,563 (10,263)
Capital improvement 3,000 3,000 - 3,000
Debt service
Principal 114,300 92,980 90,730 2,250
Interest and fiscal charges 2,000 2,000 16,340 (14,340) Total Expenditures 4,235,980 4,766,057 4,426,394 339,663 Excess (Deficiency) of Revenues over Expenditures 241,770 (413,407) 35,034 448,441

OTHER FINANCING SOURCES (USES)
'Proceeds from finance purchase agreement - - 98,760
Transfers in - - - -
Transfers out - - (35,000) 35,000
Total Other Financing Sources (Uses) - - 63,760 35,000
Net Change in Fund Balances $ 241,770 $ (413,407) 98,794 $ 483,441 Fund Balances - Beginning of Year 12,033,175
Fund Balances Ending $ 12,131,969
The City employs budget control by object codes and by individual appropriation accounts. Budgets are prepared on the modified accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board. The budgets are revised during the year by the City Council to provide for revised priorities. Expenditures cannot legally exceed appropriations by major object code. The originally adopted and final revised budgets for the General Fund are presented as Required Supplementary Information. The basis of budgeting is the same as GAAP. The expenditures noted above in excess of appropriations were covered by fund balance, appropriations available in other categories, or revenues in excess of budget.

City of Del Rey Oaks
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual (GAAP Basis)
General Fund
For the Fiscal Year Ended June 30, 2023

150
Item A.

Miscellaneous and Safety Plan
Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021 2022 2023 Contractually Required Contributions $ 33,822 $ 44,939 $ 37,901 $ 34,721 $ 23,757 $ 25,884 $ 16,607 $ 125,005 $ 39,951 Contributions in Relation to Contractually
Required Contributions 33,822 44,939 37,901 34,721 23,757 25,884 16,607 125,005 39,951 Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 368,033 $ 374,374 $ 296,535 $ 297,685 $ 434,368 $ 322,853 $ 385,980 $ 401,325 $ 397,546 Contributions as a % of Covered Payroll 9.19% 12.00% 12.78% 11.66% 5.47% 8.02% 4.30% 31.15% 10.05% Safety Plan
Plan Measurement Date 2014 2015 2016 2017 2018 2019 2020 2021 2022 Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021 2022 2023 Contractually Required Contributions $ 185,949 $ 185,949 $ 162,246 $ 149,453 $ 79,875 $ 75,687 $ 110,590 $ 125,293 $ 106,914 Contributions in Relation to Contractually
Required Contributions 185,949 185,949 162,246 149,453 79,875 75,687 110,590 125,293 106,914 Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 483,025 $ 500,535 $ 426,293 $ 301,916 $ 803,799 $ 464,427 $ 964,824 $ 1,105,926 $ 1,237,658 Contributions as a % of Covered Payroll 38.50% 37.15% 38.06% 49.50% 9.94% 16.31% 11.46% 11.33% 8.64% Notes to Schedule:

Valuation Date: June 30, 2021
Assumptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing
Remaining Amortization Period no more than 29 years
Inflation Assumed at 2.30%
Investment Rate of Returns set at 6.8%
Fiscal year 2015 was the first year of implementation, therefore only nine years are shown.

The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.80% in FY2023.

The CalPERS mortality assumptions was adjusted in fiscal year 2023.

The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing morality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.

City of Del Rey Oaks
Schedule of Pension Plan Contributions
For the Fiscal Year Ended 2023
151
Item A.

City of Del Rey Oaks
Schedule of Proportionate Share of Net Pension Liabilities For the Fiscal Year Ended June 30, 2023
Miscellaneous and Safety Plan
Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021 2022 2023 Proportion of Net Pension
Liability (Safety and Misc) 0.02058% 0.01585% 0.01592% 0.01564% 0.01561% 0.01546% 0.01548% 0.01575% 0.01662% Proportionate Share of
Net Pension Liability $ 1,280,369 $ 1,088,059 1,377,408$ 1,551,296$ 1,504,158$ $ 1,584,252 $ 1,683,831 $ 851,727 $ 1,919,495 Covered Payroll $ 853,661 $ 851,058 874,909$ 722,828$ 599,601$ $ 1,238,167 $ 786,980 $ 1,350,804 $ 1,507,251 Proportionate Share of NPL
as a % of Covered Payroll 149.99% 127.85% 157.43% 214.61% 250.86% 127.95% 213.96% 63.05% 127.35% Plan's Fiduciary Net Position
as a % of the TPL 79.31% 76.30% 75.12% 75.25% 75.63% 75.80% 75.17% 87.99% 74.02% Fiscal year 2015 was the first year of implementation, therefore only nine years are shown.

The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.80% in FY2023.

The CalPERS mortality assumptions was adjusted in fiscal year 2023.

152
Item A.

City of Del Rey Oaks
Schedule of Changes in Total OPEB Liability
For the Fiscal Year Ended June 30, 2023
Fiscal Year Ended 2018 2019 2020 2021 2022 2023
Total OPEB liability
Service cost $ 9,840 $ 8,537 $ 8,242 $ 49,908 $ 70,745 $ 58,684 Interest 7,961 9,288 9,987 11,770 10,865 9,219
Changes of benefit terms - - - - (183,330) -
Differences between
expected and actual experience - - 63,643 - 38,296 -
Changes of assumptions (33,928) (12,049) 4,378 103,454 5,630 (171,212) Benefit payments (770) (6,774) (7,542) (8,523) (11,016) (3,057) Implicit subsidy fullfilled - - - - - -
Net change in Total OPEB Liability (16,897) (998) 78,708 156,609 (68,810) (106,366) Total OPEB Liability - beginning 279,722 262,825 261,827 340,535 497,144 428,334 Total OPEB Liability - ending $ 262,825 $ 261,827 $ 340,535 $ 497,144 $ 428,334 $ 321,968 Plan fiduciary net position
Net change in plan fiduciary net position $ - $ - $ - $ - $ - $ - Plan fiduciary net position - beginning - - - - - -
Plan fiduciary net position - ending $ - $ - $ - $ - $ - $ - Net OPEB liability (asset) $ 262,825 261,827 340,535 497,144 428,334 321,968 Plan fiduciary net position as a
percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered Employee Payroll $ 977,093 $ 953,262 $ 1,080,538 $ 1,308,070 $ 1,313,110 $ 1,466,891 Net OPEB liability as a percentage
of covered employee payroll 26.90% 27.47% 31.52% 38.01% 32.62% 21.95% Total OPEB liability as a percentage
of covered employee payroll 26.90% 27.47% 31.52% 38.01% 32.62% 21.95% Other Notes
There were not changes in benefit terms.

The discount rate increased from 2.16% to 4.09% in fiscal year 2023.

There were no changes in trends or inflation rates.

The mortality rates were updated to the 2017 CalPERS OPEB Assumptions model.

GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if less than ten years are available. GASB 75 was adopted as of June 30, 2018.

153
Item A.

City of Del Rey Oaks
Notes to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2023
NOTE 1 - BUDGETARY DATA
The City Council adopts an annual legal budget for the General Fund and the SBR Special Revenue Fund.

All appropriations lapse at fiscal year end and then are rebudgeted for the coming fiscal year. Encumbrance accounting is not used. The budgets are prepared on the modified accrual basis of accounting, which is consistent with generally accepted accounting principles.

A mid-year budget review is performed and the budget is amended by passage of a resolution. Additional appropriations or interfund transfers not included in the amended budget resolution must be approved by the City Council.

154
Item A.

SUPPLEMENTARY INFORMATION

155
Item A.

BSCC FORA Habitat
Gas Tax SB 1 Measure X Officer Wellness & Management ARPA Fund Fund Fund Mental Health Fund Fund
ASSETS
Cash and investments $ 82,759 $ 131,872 $ 95,971 $ 15,000 $ 740,180 $ 170,460 Receivables:

Taxes 3,741 - 18,568 - - -
Accounts - 3,159 - - - -
Total assets $ 86,500 $ 135,031 $ 114,539 $ 15,000 $ 740,180 $ 170,460

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable $ 1,054 -$ -$ $ 167 $ 3,739 -$
Total liabilities 1,054 - - 167 3,739 -

FUND BALANCES
Restricted:

Streets and roads $ 85,446 $ 135,031 $ 114,539 $ - -$ -$ Habitat management - - - - 736,441 -
Capital projects - - - - - -
Wellness programs - - - $ 14,833 - -
Covid-19 recovery - - - - - 170,460
Total fund balances $ 85,446 $ 135,031 $ 114,539 $ 14,833 $ 736,441 $ 170,460 Special Revenue Funds
City of Del Rey Oaks
Combining Balance Sheet
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023

156
Item A.

ASSETS
Cash and investments
Receivables:

Taxes
Accounts
Total assets

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
Liabilities:

Accounts payable
Total liabilities

FUND BALANCES
Restricted:

Streets and roads
Habitat management
Capital projects
Wellness programs
Covid-19 recovery
Total fund balances
Total
SBR SBR/GJM Nonmajor
Capital Prop 68 Grant Engineering Intersection Governmental Projects Fund Fund Fund Funds
$ 950 -$ $ 505,830 $ 1,056,168 $ 2,799,190
- - - - 22,309
- - 3,159
$ 950 $ - $ 505,830 $ 1,056,168 $ 2,824,658
$ - $ - $ - $ - $ 4,960
- - - - 4,960
$ - $ - $ - $ - $ 335,016
- - - - 736,441
950 - 505,830 1,056,168 1,562,948
- - - - 14,833
- - - - 170,460
$ 950 $ - $ 505,830 $ 1,056,168 $ 2,819,698
Capital Project Funds
City of Del Rey Oaks
Combining Balance Sheet
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023

157
Item A.

BSCC FORA Habitat
Gas Tax SB 1 Measure X Officer Wellness & Management ARPA Fund Fund Fund Mental Health Fund Fund

REVENUES
Taxes:

Sales tax -$ -$ $ 99,031 -$ -$ -$
Other taxes - 32,187 - - - -
Intergovernmental revenues 43,756 - - 15,000 - 197,836
Total Revenues 43,756 32,187 99,031 15,000 - 197,836

EXPENDITURES
Current:

General government - - - - - 18,685
Public safety - - - 167 - 70,149
Public works 24,460 - - - - -
Community development - - - - 7,131 -
Capital outlay - - - - - 97,556
Debt service
Principal - - 88,621 - - -
Interest and fiscal charges - - 10,410 - - -
Total Expenditures 24,460 - 99,031 167 7,131 186,390
Excess (Deficiency) of Revenues over
Expenditures 19,296 32,187 - 14,833 (7,131) 11,446

OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out - - - - - (30,000)
Total Other Financing Sources (Uses) - - - - - (30,000) Net Change in Fund Balances 19,296 32,187 - 14,833 (7,131) (18,554) Fund Balances Beginning 66,150 102,844 114,539 - 743,572 189,014 Fund Balances Ending $ 85,446 $ 135,031 $ 114,539 $ 14,833 $ 736,441 $ 170,460 Special Revenue Funds
City of Del Rey Oaks
Combining Schedule of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2023