REGULAR MEETING OF THE CITY COUNCIL FINAL REVISED AGENDA
OF THE CITY OF DEL REY OAKS CITY COUNCIL
TUESDAY, DECEMBER 17, 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. NEW BUSINESS:
A. Seating of New Council (CEQA: Not a project per Guidelines Article 20, Section 15378) Resolution 2024-19
Swearing in of Mayor Scott Donaldson, Councilmember Shirley and Councilmember Mike Burger
B. Approve the FY 2023-24 City Annual Audit
5. CONSENT AGENDA:
A. MINUTES: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. November 19, 2024, City Council Meeting Minutes
1 B. MONTHLY REPORTS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. Fire Department Response Report, November 2024
2. Police Activity Report, November 2024
3. Financial Reports, October and November 2024
C. MISCELLANEOUS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. Approve the 2025 Calendar of City Council and Planning Commission Meetings
2. Approve Award of a Contract with Prestige Roofing, LLC to Complete Roof Repairs from Damage Sustained during Winter Storms (FEMA-4699-DR)
3. Consider Adoption of Resolution 2024-20 Canvassing the November 5, 2024, Measure R Election Results
4. Consider Approval of the 2025 Regional Agencies Board & Committees Appointment List
5. Approve modification of the Position Control List and modification of the Salary Schedule to Reflect promotion of Chief Bourquin to the position of Assistant City Manager/Chief of Police
6. Approval of Appointment of Councilmember Jeremy Hallock as Vice Mayor for the 2025 calendar year
7. Approve the transfer of $167,446.00 from the ARPA Fund to the General Fund as reimbursement for the General Government Administration
6. OLD BUSINESS:
A. None
7. STAFF REPORTS:
A. Council Reports
8. CORRESPONDENCE:
A. TAMC Highlights
9. NEXT MEETING DATE:
A. Tuesday, January 28, 2025 at 6:00 pm
10. ADJOURNMENT - Please join us for refreshments to congratulate the newly elected Mayor and Councilmembers
2 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. 3 RESOLUTION NO. 2024-19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL REY OAKS CANVASSING THE NOVEMBER 5, 2024,
GENERAL MUNICIPAL ELECTION
WHEREAS, A General Municipal Election was held on Tuesday, November 5, 2024, for the election of certain officers as required by the provisions of the laws of the State of California; and WHEREAS, this is the time and place specified by law for the Council to meet and proceed to canvas the votes cast at said election.
NOW, THEREFORE, BE IT RESOLVED, BY THE City Council of the City of Del Rey Oaks that it is found and determined:
1. That the total number of votes cast at said election was 1074 and that the following persons received the number of votes for the following offices:
a) For the Office of Mayor, Two-Year Term:
Name Number of Votes
Scott Donaldson _831_
That the person receiving the highest number of votes cast at said election for the Office of Mayor was Scott Donaldson and is hereby declared to be elected to said office for a two year term.
b) For the Office of Council Member, two, four-year terms:
Name Number of Votes
Kim Shirley 564
Mike Burger 510
4 Item A.
That two persons receiving the highest number of votes cast at said election for the four (4) year term office of City Council Members were: Kim Shirley and Mike Burger said persons are hereby declared to be elected for a four (4) year term to said office.
PASSED AND ADOPTED by the City Council of the City of Del Rey Oaks at a regular meeting duly held on December 17, 2024, by the following vote:
AYES:
NOES:
ABSENT:
____________________________
Scott Donaldson, Mayor
ATTEST:
____________________________
Karen Minami, City Clerk
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Certificate of Election and Oath of Office
STATE OF CALIFORNIA,
County of Monterey
I, Karen Minami, Elections Official of the City of Del Rey Oaks, State of California, do hereby certify, that at a General Municipal election held in said City of Del Rey Oaks on the 5th day of November 2024, SCOTT DONALDSON was elected to the office of MAYOR as appears by the official returns of said election, and the statement of votes cast now on file in my office.
IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of the City of Del Rey Oaks, this 17th day of December 2024
______________________________________
Karen Minami
STATE OF CALIFORNIA,
County of Monterey
I, SCOTT DONALDSON , do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.
____________________________________
Scott Donaldson
Subscribed and sworn to before me, this 17th day of December 2024 ___________________________
Karen Minami
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Certificate of Election and Oath of Office
STATE OF CALIFORNIA,
County of Monterey
I, Karen Minami, Elections Official of the City of Del Rey Oaks, State of California, do hereby certify, that at a General Municipal election held in said City of Del Rey Oaks on the 5th day of November 2024, KIM SHIRLEY was elected to the office of CITY COUNCIL as appears by the official returns of said election, and the statement of votes cast now on file in my office.
IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of the City of Del Rey Oaks, this 17th day of December 2024
______________________________________
Karen Minami
STATE OF CALIFORNIA,
County of Monterey
I, KIM SHIRLEY , do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.
____________________________________
Kim Shirley
Subscribed and sworn to before me, this 17th day of December 2024 ___________________________
Karen Minami
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Certificate of Election and Oath of Office
STATE OF CALIFORNIA,
County of Monterey
I, Karen Minami, Elections Official of the City of Del Rey Oaks, State of California, do hereby certify, that at a General Municipal election held in said City of Del Rey Oaks on the 5th day of November 2024, MICHAEL BURGER was elected to the office of CITY COUNCIL as appears by the official returns of said election, and the statement of votes cast now on file in my office.
IN WITNESS WHEREOF, I have hereunto affixed my hand and the seal of the City of Del Rey Oaks, this 17th day of December 2024
______________________________________
Karen Minami
STATE OF CALIFORNIA,
County of Monterey
I, MICHAEL BURGER , do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter.
____________________________________
Michael Burger
Subscribed and sworn to before me, this 17th day of December 2024 ___________________________
Karen Minami
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C I T Y O F D E L R E Y O A K S
DATE: December 17, 2024
TO: Honorable Mayor and City Council
FROM: John Guertin, City Manager
SUBJECT: Audited Financial Statements for fiscal year ended June 30, 2024 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, 2024.
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, 2024. 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 $20,984,569, page 11
The Statement of Net Position shows a total Net Position of $20,984,569. 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 $20,984,569 shows that the City’s finances are in a positive position.
Staff Report
22 Item B.
Positive Change in Net Position of $135,926 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 $1,619,149 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 $1,619,149. This represents funds available to spend at June 30, 2024 that have not been appropriated for a specific purpose. In addition to this amount the City has $1,652,182 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 $419,953, 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 $419,953.
Note 6 – Long-Term Debt $2,199,425 page 32
The Federal Group debt totals $1,644,974 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, page 56
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 they “did not identify any deficiencies in internal controls”.
Fiscal Impacts
This item has no fiscal impact. It reports the results of the 2023-24 fiscal year’s operations.
Recommended Action
Approve the audited financial statements for the fiscal year ending June 30, 2024.
ATTACHMENTS:
1. Annual Financial Report for the fiscal year ended June 30, 2024 Respectfully Submitted,
_______________________________
John Guertin
City Manager
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City of Del Rey Oaks
Annual Financial Report
June 30, 2024
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Page Intentionally Left Blank
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City of Del Rey Oaks
Annual Financial Report
For the year ended June 30, 2024
TABLE OF CONTENTS
FINANCIAL SECTION
Independent Auditor’s Report......................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) .............................. 5 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 ................................................................... 44 Schedule of Pension Plan Contributions........................................................................................ 45 Schedule of Proportionate Share of Net Pension Liabilities ........................................................... 47 Schedule of Changes in Total OPEB Liability ............................................................................... 48 Notes to the Required Supplementary Information ........................................................................ 49
SUPPLEMENTARY INFORMATION
Combining Statements - Nonmajor funds:
Combining Balance Sheet - Nonmajor Governmental Funds..................................................... 51 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds......................................................................... 53 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............................................... 56
FINDINGS AND RESPONSES
Schedule of Findings and Responses............................................................................................. 58 26 Item B.
Page Intentionally Left Blank
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FINANCIAL SECTION
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16450 Monterey Road, Ste. 5, 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
Opinions
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, 2024, 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, 2024, 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 Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the 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. 1 29
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16450 Monterey Road, Ste. 5, 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, 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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16450 Monterey Road, Ste. 5, 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 GAAS. 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 October 28, 2024, 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
October 28, 2024
Morgan Hill, California
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MANAGEMENT’S DISCUSSION
AND ANALYSIS
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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, 2024. 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, 2024 by $20.98 million. However, $1.89 million is a net investment in capital assets, restricted net position of $19.14 million, leaving an unrestricted deficit net position of $48 thousand.
• The City’s total net position increased by $135,926 from current year operations. • The City’s governmental funds reported combined ending fund balance of $22.59 million. The net change in fund balances was an increase of $373 thousand. • The General Fund reported a fund balance of $12.55 million. The net change was an increase of $420 thousand.
OVERVIEW OF 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 5 33
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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. 6 34
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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 $136 thousand in fiscal year 2024 from fiscal year 2023. The City's net investment in assets of $1.89 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
2024 2023
Assets
Current and other assets $ 23,148,975 $ 22,795,137 $ 353,838 Capital assets 2,443,448 2,543,861 (100,413)
Total Assets $ 25,592,423 $ 25,338,998 $ 253,425
Deferred Outflows of Resources $ 805,309 $ 981,977 $ (176,668) Liabilities
Current and other liabilities $ 502,018 $ 498,342 $ 3,676 Noncurrent liabilities 4,472,040 4,549,689 (77,649)
Total Liabilities $ 4,974,058 $ 5,048,031 $ (73,973)
Deferred Inflows of Resources $ 439,105 $ 424,301 $ 14,804 Net Position
Net investment in capital assets $ 1,888,997 $ 1,904,136 $ (15,139) Restricted 19,143,607 19,130,819 12,788
Unrestricted (48,035) (186,312) 138,277
Total Net Position $ 20,984,569 $ 20,848,643 $ 135,926
Increase
(Decrease)
• Current assets and capital assets increased by $253 thousand, while current and noncurrent liabilities decreased by $74 thousand.
• Increases in current assets were mainly due to increases in cash and investments. • Decreases 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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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 2024 2023 (Decrease)
Revenue:
Program Revenues:
Charges for services $ 1,597,393 $ 1,360,110 $ 237,283
Operating grants and contributions 323,226 227,079 96,147 Capital grants and contributions 100,038 460,361 (360,323) General Revenues:
Property tax 824,729 774,673 50,056
Sales tax 514,815 554,986 (40,171)
Transaction tax 737,916 677,824 60,092
Franchise tax 184,406 178,351 6,055
Business license tax 213,474 205,750 7,724
Other taxes 447,404 512,556 (65,152)
Investment earnings 191,971 65,141 126,830
Other revenue 133,942 16,346 117,596
Total Revenue 5,269,314 5,033,177 236,137
Expenses:
General government 1,696,306 1,241,170 455,136
Public safety 2,751,193 2,766,643 (15,450)
Public works 378,576 369,259 9,317
Community development 180,788 130,071 50,717
Parks 51,025 59,868 (8,843)
Interest on long-term debt 75,500 64,667 10,833
Total Expenses 5,133,388 4,631,678 501,710
Special and Extraordinary Items:
Special item - gain/loss on disposal of capital assets - (9,000) 9,000 Total Special and Extraordinary Items - (9,000) 9,000
Change in Net Position 135,926 392,499 (256,573)
Net Position, Beginning of Year 20,848,643 20,456,144 392,499 Net Position, End of Year $ 20,984,569 $ 20,848,643 $ 135,926 • The decrease in capital grants and contributions is mainly due to fewer contributions received from federal and state assistance in 2024 than in the prior fiscal year. • The increase in charges for services is due to an increase in revenue from airport police services. • The increase in investment earnings is due to higher interest rates in 2024 than in the prior fiscal year. 8 36
Item B.
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, 2024, amounted to $2.4 million (net of accumulated depreciation). This amount included land, buildings, improvements, furniture, equipment, and vehicles.
Debt Administration - At fiscal year end, the City had $2.2 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 $22.59 million. During the current fiscal year, the fund balance of the City's total governmental funds increased $372,517 thousand.
FUND BUDGETARY HIGHLIGHTS
General Fund - The original budgeted general fund revenues increased by $625 thousand. General Fund estimated budgeted revenues exceeded the actuals by $537 thousand. The original budgeted general fund expenditures increased by $1.2 million. Actual expenditures were $2.0 million less than final budgeted expenditures.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET
The fiscal year 2024-25 budget is a status quo budget since revenues are expected to be flat due to continued inflation and high interest rates having a negative effect on consumer spending.
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.
9 37
Item B.
BASIC FINANCIAL STATEMENTS
10 38
Item B.
ASSETS
Current Assets:
Cash and investments $ 4,880,885
Restricted cash and investments 8,685,104
Receivables:
Taxes 326,150
Accounts 154,784
Due from other governments 87,028
Other receivables 44,727
Land held for resale 8,904,673
Total Current Assets 23,083,351
Noncurrent Assets:
Leases receivable 65,624
Capital Assets:
Nondepreciable 608,450
Depreciable, net of accumulated depreciation 1,834,998
Total Capital Assets - Net 2,443,448
Total Noncurrent Assets 2,509,072
Total Assets $ 25,592,423
DEFERRED OUTFLOWS OF RESOURCES
OPEB Adjustments $ 63,032
Pension Adjustments 742,277
Total Deferred Outflows of Resources $ 805,309
LIABILITIES
Current Liabilities:
Accounts payable $ 297,578
Payroll related liabilities 1,600
Prepaid business licenses 163,015
Prepaid developer deposits 9,063
Long-term debt - due within one year 30,762
Total Current Liabilities 502,018
Noncurrent Liabilities:
Long-term debt - due in more than one year 2,168,663
Compensated absences 141,524
Net pension liability 1,786,202
Total OPEB liability 375,651
Total Noncurrent Liabilities 4,472,040
Total Liabilities $ 4,974,058
DEFERRED INFLOWS OF RESOURCES
Leases $ 50,095
OPEB Adjustments 83,043
Pension Adjustments 305,967
Total Deferred Inflows of Resources $ 439,105
NET POSITION
Net investment in capital assets 1,888,997 $
Restricted for land held for resale 8,904,673
Restricted for pension 351,751
Restricted for streets and roads 7,614,152
Restricted for habitat management 727,338
Restricted for capital projects 1,545,693
Unrestricted (48,035)
Total Net Position $ 20,984,569
City of Del Rey Oaks
Statement of Net Position
June 30, 2024
The accompanying notes are an integral part of these financial statements. 11 39
Item B.
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total General government 1,696,306 $ 535,731 $ -$ $ 97,540 $ 633,271 $ (1,063,035) Public safety 2,751,193 868,887 276,432 1,145,319 - (1,605,874) Public works 378,576 119,563 46,794 166,357 - (212,219) Community development 180,788 57,097 2,498 - 59,595 (121,193) Parks 51,025 16,115 - 16,115 - (34,910)
Interest and fiscal charges 75,500 - - - (75,500) -
Total $ 5,133,388 $ 1,597,393 $ 323,226 $ 100,038 $ 2,020,657 $ (3,112,731) General Revenues and Special Item:
Taxes:
Property taxes 824,729
Sales tax 514,815
Transaction tax 737,916
Franchise tax 184,406
Business license tax 213,474
Other taxes 447,404
Investment earnings 191,971
Other revenues 133,942
Total General Revenues and Special Items 3,248,657
Change in Net Position 135,926
Net Position - Beginning of Year 20,848,643
Net Position - End of Year $ 20,984,569
City of Del Rey Oaks
Program Revenues
Net (Expense)
Revenue and
Change in Net
Position
For the Fiscal Year Ended June 30, 2024
Statement of Activities
The accompanying notes are an integral part of these financial statements. 12 40
Item B.
Nonmajor Total
General SBR Construction FHA Grant Governmental Governmental Fund Fund Fund Funds Funds
ASSETS
Cash and investments 3,168,385 $ -$ -$ 2,789,300 $ $ 5,957,685 Restricted cash and investments 359,123 7,269,813 - - 7,628,936 Receivables:
Taxes 304,084 - - 22,066 326,150
Accounts 151,501 - - 3,283 154,784
Due from other governments - - 33,129 33,267 66,396
Other receivables 44,727 - - - 44,727
Leases receivable 65,624 - - - 65,624
Land held for resale 8,904,673 - - - 8,904,673
Total assets $ 12,998,117 $ 7,269,813 $ 33,129 $ 2,847,916 $ 23,148,975
LIABILITIES, DEFERRED INFLOW
OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 222,422 -$ $ 33,129 $ 42,027 $ 297,578 Payroll related liabilities 1,600 - - - 1,600
Prepaid business licenses 163,015 - - - 163,015
Prepaid developer deposits 9,063 - - - 9,063
Total liabilities 396,100 - 33,129 43,525 471,256
Deferred Inflows of Resources:
Leases 50,095 - - - 50,095
Unavailable revenue - - 33,129 1,498 34,627
Total Deferred Inflows of Resources 50,095 - 33,129 1,498 84,722 Fund Balances:
Nonspendable
Leases 24,167 - - - 24,167
Restricted:
Land held for resale 8,904,673 - - - 8,904,673
Pension 351,751 - - - 351,751
Streets and roads - 7,269,813 - 344,339 7,614,152
Habitat management - - - 727,338 727,338
Capital projects - - - 1,545,693 1,545,693
Wellness programs - - - 12,834 12,834
Covid-19 recovery - - - 167,446 167,446
Drug enforcement - - - 6,741 6,741
Unassigned:
Economic uncertainties 1,652,182 - - - 1,652,182
Unappropriated 1,619,149 - (33,129) - 1,586,020
Total fund balances 12,551,922 7,269,813 (33,129) 2,804,391 22,592,997 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 12,998,117 $ 7,269,813 $ 33,129 $ 2,847,916 $ 23,148,975 June 30, 2024
Governmental Funds
Balance Sheet
City of Del Rey Oaks
The accompanying notes are an integral part of these financial statements. 13 41
Item B.
Total Fund Balances - Total Governmental Funds $ 22,592,997 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 $ 3,884,352
Less: accumulated depreciation (1,440,904)
Total Capital Assets 2,443,448
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 61,184 Change in assumptions (83,043)
Contribution subsequent to measurement date 1,848
Pension adjustments:
Net change in assumptions 105,429
Net difference between expected and actual experience 105,815 Net difference between projected and actual investment earnings 259,178 Net diffferences between employer's contributions and proportionate share of contributions (134,731) Net change in employer's proportion (43,873)
Contribution subsequent to measurement date 144,492
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. 34,627 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 $ (2,199,425)
Compensated absences (141,524)
Net pension liability (1,786,202)
Total OPEB liability (375,651)
Total Long-Term Obligations (4,502,802)
Net Position of Governmental Activities $ 20,984,569
June 30, 2024
to the Government-Wide Statement of Net Position
Reconciliation of the Governmental Funds Balance Sheet
City of Del Rey Oaks
The accompanying notes are an integral part of these financial statements. 14 42
Item B.
Nonmajor Total
General SBR Construction FHA Grant Governmental Governmental Fund Fund Fund Funds Funds
REVENUES
Taxes:
Property taxes $ 824,729 $ - $ - $ - $ 824,729
Sales tax 416,797 - - 98,018 514,815
Transaction tax 544,412 - - - 544,412
Franchise tax 184,406 - - - 184,406
Business license tax 213,474 - - - 213,474
Other taxes 601,013 - - 39,895 640,908
Licenses and permits 80,104 - - - 80,104
Fines, forfeits and penalties 20,929 - - - 20,929
Charges for current services 1,387,129 - - - 1,387,129
Intergovernmental revenues 263,519 1,000 - 98,840 363,359 Interest, rents and concessions 301,201 - - 31,261 332,462 Other revenues 133,938 - - - 133,938
Total Revenues 4,971,651 1,000 - 268,014 5,240,665
EXPENDITURES
Current:
General government 1,192,411 - - 31,414 1,223,825
Public safety 2,584,529 - 33,129 189,065 2,806,723
Public works 251,748 - - 63,709 315,457
Community development 140,270 - - 9,103 149,373
Parks 40,524 - - - 40,524
Capital outlay 195,545 - - 30,450 225,995
Debt service
Principal 29,275 - - 77,503 106,778
Interest and fiscal charges - - - 20,977 20,977
Total Expenditures 4,434,302 - 33,129 422,221 4,889,652 Excess (Deficiency) of Revenues over Expenditures 537,349 1,000 (33,129) (154,207) 351,013
OTHER FINANCING SOURCES (USES)
Proceeds from finance purchase agreement 21,504 - - - 21,504 Transfers in - - - 138,900 138,900
Transfers out (138,900) - - - (138,900)
Total Other Financing Sources (Uses) (117,396) - - 138,900 21,504 Net Change in Fund Balances 419,953 1,000 (33,129) (15,307) 372,517 Fund Balances Beginning 12,131,969 7,268,813 - 2,819,698 22,220,480 Fund Balances Ending $ 12,551,922 $ 7,269,813 $ (33,129) $ 2,804,391 $ 22,592,997 For the Fiscal Year Ended June 30, 2024
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances City of Del Rey Oaks
The accompanying notes are an integral part of these financial statements. 15 43
Item B.
Net Change in Fund Balances - Total Governmental Funds $ 372,517 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 121,224
Depreciation expense (221,637)
Revenues in the governement-wide statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. 34,627
Revenues that were reported in the government-wide statement of activities in prior years have become current financial resources in the current year and have been reported in the governmental fund statement of revenues, expenditures and changes in fund balances. (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. (35,464) 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. (113,288)
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. (46,821) 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 106,778
Proceeds from capital lease (21,504)
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. (54,523) Change in Net Position of Governmental Activities $ 135,926 For the Fiscal Year Ended June 30, 2024
and Changes in Fund Balances to the Government-Wide Statement of Activities Reconciliation of the Governmental Funds Statement of Revenues, Expenditures City of Del Rey Oaks
The accompanying notes are an integral part of these financial statements. 16 44
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2024.
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. 17 45
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
18 46
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
FHA Grant Fund - This capital project fund was established to account for the Federal Highway Administration grant received as a pass-through from the State of California Department of Transportation for repairs to Rosita Road due to the winter storms.
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.
Drug Enforcement Administration (DEA) Fund - This special revenue fund was established to account for the DEA grant reimbursements for overtime pay for police officers trained to work on the DEA Task Force.
REAP Fund - This special revenue fund was established to account for the financial resources received for development and implementation of the Housing Element.
CalFire Fund - This special revenue fund was established to account for the financial resources received for reduction of wildfire fuels along Del Rey Park and Via Verde and in Work Memorial Park.
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. 19 47
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
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. 20 48
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
• 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.
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.
21 49
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
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, 2024.
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.
22 50
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
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, 2024 totaled $29,100.
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, 2024:
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.
Due Within
Description June 30, 2023 Earned Taken June 30, 2024 One Year Government Activities 106,060 107,407 $ 71,943 $ 141,524 $ 54,188 23 51
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
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.
O. 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
24 52
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
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.
P. 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.
Q. 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.
R. 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. 25 53
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
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, 2022 Measurement Date (MD) ................................ June 30, 2023 Measurement Period (MP) .............................. July 1, 2022 to June 30, 2023 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, 2023 Measurement Date (MD) ................................ June 30, 2023 Measurement Period (MP) .............................. June 30, 2022 to June 30, 2023 U. Implementation of New Accounting Pronouncements
GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62
This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. This Statement also prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections in previously issued financial statements.
This statement did not have a material impact on the financial statements.
V. 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:
26 54
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
GASB Statement No. 101, Compensated Absences
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.
This Statement requires that a liability for certain types of compensated absences - including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.
A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.
The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter.
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2024, 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). ` Total
Cash and
Unrestricted Restricted Investments
Cash in bank $ 916,773 $ - 916,773 $
Cash with fiscal agent 8,685,104 8,685,104 -
Local Agency Investment Fund 3,964,112 3,964,112 -
Total cash and investments $ 4,880,885 $ 8,685,104 $ 13,565,989 Statement of Net Position
27 55
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
The bank balances before reconciling items totaled $988,893 at June 30, 2024 and were different from carrying amounts due to deposits in transit and outstanding checks. As of June 30, 2024, the City’s cash balances exceeded insurance by $738,893 but were collateralized as discussed above.
B. Restricted Cash with Fiscal Agent
For the year ended June 30, 2024, the City had a balance of $349,588 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.
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, 2024:
• California Local Agency Investment Fund (LAIF) of $3,964,112; 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
28 56
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
E. External Investment Pool
The City's investments with LAIF at June 30, 2024, 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, 2024, 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, 2024, 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).
29 57
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 $138,000 from the General Fund to the Capital Projects Fund during the fiscal year ended June 30, 2024.
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, 2024.
NOTE 4 - LEASES RECEIVABLE
As of June 30, 2024, 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 $ 392,191 $ 392,191 $ -
Accumulated Amortization - (214,902) -
Other adjustments - - -
Principal Payments (271,527) (78,947) -
Beginning Balances 7/1/2023 120,664 98,342 -
Current Amortization - (48,247) -
Issuance - - -
Current Principal Payments (55,039) - -
Ending Balances 6/30/2024 $ 65,625 $ 50,095 $ -
30 58
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
NOTE 5 - CAPITAL ASSETS
Capital assets consisted of the following as of June 30, 2024:
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, 2024.
Depreciation expense was charged to the functions of the government as follows:
Balance Balance
June 30, 2023 Additions June 30, 2024
Non-depreciable:
Land $ 549,500 $ - $ - $ 549,500
Construction in Progress - 58,950 - 58,950
Total Non-Depreciable 549,500 58,950 - 608,450
Depreciable:
Buildings and Improvements 691,438 - - 691,438
Furniture, Equipment, and Vehicles 865,848 40,770 - 906,618 Structure and Improvements 1,557,582 - 1,557,582 -
Finance purchase assets 98,760 21,504 - 120,264
Total Depreciable 3,213,628 62,274 3,275,902 -
Less Accumulated Depreciation for:
Buildings and Improvements (452,422) (15,828) (468,250) - Furniture, Equipment, and Vehicles (496,194) (108,485) (604,679) - Structure and Improvements (250,899) (68,049) (318,948) - Finance purchase assets (19,752) (29,275) - (49,027)
Total Accumulated Depreciation (1,219,267) (221,637) (1,440,904) - Total Depreciable Capital Asset - Net 1,994,361 (159,363) 1,834,998 - Total Capital Assets - Net $ 2,543,861 $ (100,413) $ 2,443,448 - $ Deletions/
Adjustments
General Government $ 24,602
Police Department 98,737
Parks 10,496
Public Works 87,802
Total depreciation expense $ 221,637
31 59
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
NOTE 6 - LONG-TERM LIABILITIES
The City's long-term liabilities consisted of the following as of June 30, 2024:
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, 2024, the annual debt service requirements on the Body Worn Cameras, Data Storage and Software Finance Purchase Agreement are as follows:
PG&E OBF Energy Efficiency Upgrades
The City entered into a hardware, and services finance purchase agreement with PG&E to receive interestfree financing for qualified energy efficiency projects. 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 $2,530.
Balance Balance Due Within
Description June 30, 2023 Additions Retirements June 30, 2024 One Year Finance purchase agreements:
Police department - body cameras $ 79,008 $ 19,752 - $ $ 59,256 $ 19,752 PG&E OBF Energy Efficiency Upgrades 21, - 504 1,265 20,239 2,530 Software 16,738 8,258 - 8,480 8,480
Subtotal finance purchase agreements 95,746 21,504 29,275 87,975 30,762 Loans payable:
Federal Group International, LLC 1,200,000 - - 1,200,000 - Federal Group International, LLC
Compound Interest 390,454 54,520 - 444,974 -
TAMC Measure X Loan 543,979 77,503 - 466,476 -
Subtotal loans payable 2,134,433 54,520 77,503 2,111,450 - Total $ 2,230,179 $ 106,778$ 76,024 $ 2,199,425 $ 30,762 Year Ending June 30 Principal Interest Total
2025 $ 19,752 $ 19,752 - $
2026 19,752 19,752 -
2027 19,752 19,752 -
Total $ 59,256 $ - 59,256 $
32 60
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
As of June 30, 2024, the annual debt service requirements on the PG&E OBF Energy Efficiency Upgrades Finance Purchase Agreement are as follows:
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, 2024, the annual debt service requirements on the Records Management Software Lease Purchase Agreement are as follows:
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, 2024, was $466,476.
Year Ending June 30 Principal Interest Total
2025 $ 2,530 $ - $ 2,530
2026 2,530 2,530 -
2027 2,530 2,530 -
2028 2,530 2,530 -
2029 2,530 2,530 -
2030-2034 7,589 7,589 -
Total $ 20,239 $ - 20,239 $
Year Ending June 30 Principal Interest Total
2025 $ 8,480 $ 233 $ 8,713
Total $ 8,480 $ 233 $ 8,713
33 61
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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.
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, 2024, are summarized as follows:
Tier 1 Tier 1 PEPRA Police Police - PEPRA Fire
Benefit formula 2.7% @ 55 2% @ 55 2% @ 62 3.0% @ 50 2.7% @ 57 2% @ 55 Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Monthly for Life Retirement age 55 55 62 50 57 55
Monthly benefits as a
% of eligible compensation 2.7% 2.00% 2% 3.00% 2-2.70% 3.00% Required employee contribution rates 8% 7.000% 6.75% 9.000% 12.000% 7.000% Required employer contribution rates 15.3% 10.221% 7.47% 21.927% 13.034% 14.382% Miscellaneous Safety
34 62
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Employees Covered - At June 30, 2024 (fiscal year), June 30, 2022 (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, 2024, the City’s contributions were as follows:
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, 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, 2023, 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, 2022 rolled forward to June 30, 2023 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.
Miscellaneous Safety
Active 3 10
Transferred 2 3
Separated 4 4
Retired 6 14
Total 15 31
Employer
Contributions
Miscellaneous $ 38,112
Safety 106,380
Total Employer Contributions $ 144,492
Miscellaneous
Safety
Total
Proportionate Share of
Net Pension
Liability/(Asset)
$ 588,083
1,198,119
$ 1,786,202
35 63
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
The City’s proportionate share of the net pension liability for the Plans as of June 30, 2023 and 2024 was as follows:
For the year ended June 30, 2024, the City recognized pension expense of $257,780 for the plans.
At June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
The City reported $144,492 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, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Safety Combined Plans
Proportion - June 30, 2023 0.01179% 0.01991% 0.01662%
Proportion - June 30, 2024 0.01176% 0.01603% 0.01432%
Change - Increase/(Decrease) -0.00003% -0.00388% -0.00230% Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ 105,429 $ -
Differences between Expected and Actual Experience 118,006 12,191 Differences between Projected and Actual Investment Earnings 259,178 - Differences between Employer's Contributions and
Proportionate Share of Contributions 16,547 151,278
Change in Employer's Proportion 98,624 142,498
Pension Contributions Made Subsequent to Measurement Date 144,492 - Total $ 742,276 $ 305,967
Miscellaneous Safety Total
$ 57,997 $ 26,743 $ 84,740
42,427 11,208 53,635
65,279 80,855 146,133
2,732 4,576 7,309
- - -
- - -
$ 168,435 $ 123,382 $ 291,817
Fiscal Year
Ending June 30:
Deferred Outflows/(Inflows) of Resources
Total
2026
2027
2028
Thereafter
2029
2025
36 64
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Actuarial Assumptions - The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:
Discount Rate - The discount rate used to measure the total pension liability was 6.90 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 6.90 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 6.90 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 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.
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:
Discount Rate 6.90%
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 37 65
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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:
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.
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 $ 899,977 1,903,314
Current 6.90% 6.90%
Net Pension Liability $ 588,083 1,198,119
1% Increase 7.90% 7.90%
Net Pension Liability $ 331,368 621,572
38 66
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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 $157 in 2024 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, 2023 (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 $1,848.
Total benefit payments included in the measurement period were $1,738. The actuarially determined contribution for the measurement period was $54,382. The City’s contributions were 0.11% of covered employee payroll during the measurement period June 30, 2023 (reporting period June 30, 2024).
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
Discount Rate - The discount rate was taken from the S&P Municipal Bond 20 Year High Grade Rate Index, which was 4.13% as of June 30, 2023 (the measurement date).
Active employees 18
Inactive employees 1
Total employees 19
Valuation Date: June 30, 2023
Measurement Date: June 30, 2023
Actuarial Cost Method: Entry-Age Normal Cost Method
Amortization Period: 9.2
Actuarial Assumptions:
Discount Rate 4.13%
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.
39 67
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
Changes in the Total OPEB Liability - The following summarizes the changes in the total OPEB liability during the year ended June 30, 2024, for the measurement date of June 30, 2023:
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, 2024, 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, $1,848 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, 2025.
Fiscal Year Ended June 30, 2024
(Measurement Date June 30, 2023)
Total OPEB
Liability
Plan
Fiduciary
Net Position
Net OPEB
Liability
(Asset)
Balance at June 30,2023 $ 321,968 $ 321,968 - $
Service cost 35,599 35,599 -
Interest in Total OPEB Liability 13,132 13,132 -
Balance of diff between actual and exp experience 9,959 - 9,959 Balance of changes in assumptions (3,207) (3,207) -
Benefit payments (1,800) (1,800) -
Net changes 53,683 53,683 -
Balance at June 30, 2024 $ 375,651 $ 375,651 - $
Covered Employee Payroll $ 1,672,806
Total OPEB Liability as a % of Covered Employee Payroll 22.46% Plan Fid. Net Position as a % of Total OPEB Liability 0.00% Service Cost as a % of Covered Employee Payroll 2.13%
Net OPEB Liability as a % of Covered Employee Payroll 22.46% Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience $ 61,184 $ - Difference between actual and expected earnings - -
Change in assumptions - 83,043
OPEB contribution subsequent to measurement date 1,848 - Totals $ 63,032 $ 83,043
40 68
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2024, for the measurement date of June 30, 2023:
The following summarizes changes in the total OPEB liability as reconciled to OPEB expense during the year ended June 30, 2024, for the measurement date of June 30, 2023:
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,
2025 $ -
2026 -
2027 344
2028 1,202
2029 (3,174)
Thereafter (20,231)
Total $ (21,859)
Service cost $ 35,599
Interest in TOL 13,132
Difference between actual and expected experience 12,750 Change in assumptions (12,749)
OPEB Expense $ 48,732
$ 375,651
(321,968)
53,683
Changes in deferred outflows 2,680
Changes in deferred inflows (9,541)
Employer contributions and implict subsidy 1,910
OPEB Expense $ 48,732
Total OPEB liability ending
Total OPEB liability begining
Change in total OPEB liability
(1% Decrease ) 4.13% (1% Increase )
Total OPEB Liability $ 467,824 $ 375,651 $ 305,998
Municipal Bond Rate
41 69
Item B.
City of Del Rey Oaks
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
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, 2024 was $227,515. 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, 2024 was $1,325,484.
(1% Decrease ) 4.00% (1% Increase )
Total OPEB Liability $ 306,678 $ 375,651 $ 465,475
Trend Rate
42 70
Item B.
REQUIRED SUPPLEMENTARY INFORMATION
43 71
Item B.
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes:
Property taxes 767,700 $ 770,100 $ 824,729 $ 54,629 $
Other taxes 2,151,400 2,164,550 1,960,102 (204,448)
Licenses and permits 76,300 76,300 80,104 3,804
Reimbursements 1,000 1,000 940 (60)
Fines, forfeits and penalties 10,200 12,200 20,929 8,729 Grants 303,800 755,582 263,519 (492,063)
Current services 1,465,100 1,507,600 1,526,968 19,368
Parks and recreation 74,100 74,100 84,183 10,083
Other 34,000 147,500 210,177 62,677
Total Revenues 5,508,932 4,883,600 4,971,651 (537,281)
EXPENDITURES
Payroll and benefits 2,852,400 2,854,050 2,150,404 703,646 Office and Supplies 147,300 147,822 85,412 62,410
Utility and services 168,350 170,760 120,096 50,664
Other services 36,950 45,990 40,269 5,721
Outside services 791,600 1,380,167 891,430 488,737
Auto ops 132,300 143,300 124,405 18,895
Police and fire 520,120 982,729 669,815 312,914
Streets and storm water 114,250 126,750 100,478 26,272
Capital improvement 360,780 487,750 123,783 363,967
Debt service
Principal 126,050 101,750 107,233 (5,483)
Interest and fiscal charges 14,000 14,000 20,977 (6,977) Total Expenditures 6,455,068 5,264,100 4,434,302 2,020,766 Excess (Deficiency) of Revenues over Expenditures (380,500) (946,136) 537,349 1,483,485
OTHER FINANCING SOURCES (USES)
'Proceeds from finance purchase agreement - - 21,504
Transfers in - - - -
Transfers out - - (138,900) 138,900
Total Other Financing Sources (Uses) - - (117,396) 138,900 Net Change in Fund Balances (380,500) $ (946,136) $ 419,953 1,622,385 $ Fund Balances - Beginning of Year 12,131,969
Fund Balances Ending $ 12,551,922
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, 2024
44 72
Item B.
City of Del Rey Oaks
Schedule of Pension Plan Contributions
For the Fiscal Year Ended 2024
Miscellaneous Plan
Plan Measurement Date 2014 2015 2016 2017 2018
Fiscal Year Ended 2015 2016 2017 2018 2019
Contractually Required Contributions $ 33,822 $ 44,939 $ 37,901 $ 34,721 $ 23,757 Contributions in Relation to
Contractually Required Contributions 33,822 44,939 37,901 34,721 23,757 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 368,033 $ 374,374 $ 296,535 $ 297,685 $ 434,368 Contributions as a % of Covered Payroll 9.19% 12.00% 12.78% 11.66% 5.47% Miscellaneous Plan
Plan Measurement Date 2019 2020 2021 2022 2023
Fiscal Year Ended 2020 2021 2022 2023 2024
Contractually Required Contributions $ 25,884 $ 16,607 $ 125,005 $ 39,951 $ 38,112 Contributions in Relation to
Contractually Required Contributions 25,884 16,607 125,005 39,951 38,112 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 322,853 $ 385,980 $ 401,325 $ 397,546 $ 435,583 Contributions as a % of Covered Payroll 8.02% 4.30% 31.15% 10.05% 8.75% Notes to Schedule:
Valuation Date: June 30, 2022
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 6.90% 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.
45 73
Item B.
City of Del Rey Oaks
Schedule of Pension Plan Contributions
For the Fiscal Year Ended 2024
Safety Plan
Plan Measurement Date 2014 2015 2016 2017 2018
Fiscal Year Ended 2015 2016 2017 2018 2019
Contractually Required Contributions $ 121,758 $ 185,949 $ 162,246 $ 149,453 $ 79,875 Contributions in Relation to
Contractually Required Contributions 121,758 185,949 162,246 149,453 79,875 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 368,033 $ 374,374 $ 296,535 $ 297,685 $ 434,368 Contributions as a % of Covered Payroll 33.08% 49.67% 54.71% 50.21% 18.39% Safety Plan
Plan Measurement Date 2019 2020 2021 2022 2023
Fiscal Year Ended 2020 2021 2022 2023 2024
Contractually Required Contributions $ 75,687 $ 110,590 $ 125,293 $ 106,914 $ 106,380 Contributions in Relation to
Contractually Required Contributions 75,687 110,590 125,293 106,914 106,380 Contribution Deficiency (Excess) $ - $ - $ - $ - $ -
Covered Payroll $ 464,127 $ 964,824 $ 1,105,926 $ 1,237,658 $ 1,186,089 Contributions as a % of Covered Payroll 16.31% 11.46% 11.33% 8.64% 8.97% Notes to Schedule:
Valuation Date: June 30, 2022
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 6.90% 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.
46 74
Item B.
City of Del Rey Oaks
Schedule of Proportionate Share of Net Pension Liabilities For the Fiscal Year Ended June 30, 2024
Miscellaneous and Safety Plan
Plan Measurement Date 2014 2015 2016 2017 2018
Fiscal Year Ended 2015 2016 2017 2018 2019
Proportion of Net Pension
Liability (Safety and Misc) 0.02058% 0.01585% 0.01592% 0.01564% 0.01561% Proportion of Net Pension
Liability (Misc Plan Only) 0.00966% 0.00744% 0.00858% 0.00928% 0.00953% Proportionate Share of
Net Pension Liability $ 1,280,369 $ 1,088,059 $ 1,377,408 $ 1,551,296 $ 1,504,158 Covered Payroll $ 853,661 $ 851,058 $ 874,909 $ 722,828 $ 599,601 Proportionate Share of NPL
as a % of Covered Payroll 149.99% 127.85% 157.43% 214.61% 250.86% Plan's Fiduciary Net Position
as a % of the TPL 79.31% 76.30% 75.12% 75.25% 75.63%
Miscellaneous and Safety Plan
Plan Measurement Date 2019 2020 2021 2022 2023
Fiscal Year Ended 2020 2021 2022 2023 2024
Proportion of Net Pension
Liability (Safety and Misc) 0.01546% 0.01548% 0.01575% 0.01662% 0.01432% Proportion of Net Pension
Liability (Misc Plan Only) 0.01011% 0.01069% 0.01115% 0.01179% 0.01176% Proportionate Share of
Net Pension Liability $ 1,584,252 $ 1,683,831 $ 851,727 $ 1,919,495 $ 1,786,202 Covered Payroll $ 1,238,167 $ 786,980 $ 1,350,804 $ 1,507,251 $ 1,635,204 Proportionate Share of NPL
as a % of Covered Payroll 127.95% 213.96% 63.05% 127.35% 109.23% Plan's Fiduciary Net Position
as a % of the TPL 75.80% 75.17% 87.99% 74.02% 76.01%
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 6.90% in FY2023.
The CalPERS mortality assumptions was adjusted in fiscal year 2023. 47 75
Item B.
City of Del Rey Oaks
Schedule of Changes in Total OPEB Liability
For the Fiscal Year Ended June 30, 2024
Fiscal Year Ended 2018 2019 2020 2021 2022 2023 2024
Total OPEB liability
Service cost $ 9,840 $ 8,537 $ 8,242 $ 49,908 $ 70,745 $ 58,684 $ 35,599 Interest 7,961 9,288 9,987 11,770 10,865 9,219 13,132
Changes of benefit terms - - - - (183,330) - -
Differences between
expected and actual experience - - 63,643 - 38,296 - 9,959 Changes of assumptions (33,928) (12,049) 4,378 103,454 5,630 (171,212) (3,207) Benefit payments (770) (6,774) (7,542) (8,523) (11,016) (3,057) (1,800) Implicit subsidy fullfilled - - - - - - -
Net change in Total OPEB Liability (16,897) (998) 78,708 156,609 (68,810) (106,366) 53,683 Total OPEB Liability - beginning 279,722 262,825 261,827 340,535 497,144 428,334 321,968 Total OPEB Liability - ending $ 262,825 $ 261,827 $ 340,535 $ 497,144 $ 428,334 $ 321,968 $ 375,651 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) $ 262,825 261,827 340,535 497,144 428,334 321,968 375,651 Plan fiduciary net position as a
percentage of the total OPEB liability 0.00% 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 $ 1,672,806 Net OPEB liability as a percentage
of covered employee payroll 26.90% 27.47% 31.52% 38.01% 32.62% 21.95% 22.46% Total OPEB liability as a percentage
of covered employee payroll 26.90% 27.47% 31.52% 38.01% 32.62% 21.95% 22.46% Other Notes
There were not changes in benefit terms.
The discount rate increased from 4.09% to 4.13% in fiscal year 2024.
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. 48 76
Item B.
City of Del Rey Oaks
Notes to the Required Supplementary Information
For the Fiscal Year Ended June 30, 2024
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.
49 77
Item B.
SUPPLEMENTARY INFORMATION
50 78
Item B.
BSCC FORA Habitat
Gas Tax SB 1 Measure X Officer Wellness & Management ARPA Fund Fund Fund Mental Health Fund Fund
ASSETS
Cash and investments 106,623 $ 158,448 $ 56,491 $ 12,834 $ 729,057 $ 167,446 $ Receivables:
Taxes 3,960 - 18,106 - - -
Accounts - 3,283 - - - -
Due from other governments - - - - - -
Total assets $ 110,583 $ 161,731 $ 74,597 $ 12,834 $ 729,057 $ 167,446
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable $ 1,373 -$ $ 1,199 -$ $ 1,719 -$
Unearned revenues - - - - - -
Total liabilities 1,373 - 1,199 - 1,719 -
FUND BALANCES
Restricted:
Streets and roads $ 109,210 $ 161,731 $ 73,398 -$ -$ -$ Habitat management - - - - 727,338 -
Capital projects - - - - - -
Wellness programs - - - 12,834 - -
Covid-19 recovery - - - - - 167,446
Drug enforcement - - - - - -
Total fund balances $ 109,210 $ 161,731 $ 73,398 $ 12,834 $ 727,338 $ 167,446 Special Revenue Funds
City of Del Rey Oaks
Combining Balance Sheet
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
51 79
Item B.
ASSETS
Cash and investments
Receivables:
Taxes
Accounts
Due from other governments
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
Unearned revenues
Total liabilities
FUND BALANCES
Restricted:
Streets and roads
Habitat management
Capital projects
Wellness programs
Covid-19 recovery
Drug enforcement
Total fund balances
Total
SBR SBR/GJM Nonmajor
DEA REAP CalFire Capital Engineering Intersection Governmental Fund Fund Fund Projects Fund Fund Funds
-$ -$ -$ $ 950 $ 501,283 $ 1,056,168 $ 2,789,300
- - - - - - 22,066
- - - - - - 3,283
8,239 25,028 - - - - 33,267
$ 8,239 $ 25,028 -$ $ 950 $ 501,283 $ 1,056,168 $ 2,847,916 -$ $ 25,028 -$ -$ $ 12,708 -$ $ 42,027
1,498 - - - - - 1,498
1,498 25,028 - - 12,708 - 43,525
-$ -$ -$ -$ -$ -$ $ 344,339
- - - - - - 727,338
- - - 950 488,575 1,056,168 1,545,693
- - - - - - 12,834
- - - - - - 167,446
6,741 - - - - - 6,741
$ 6,741 -$ -$ $ 950 $ 488,575 $ 1,056,168 $ 2,804,391
City of Del Rey Oaks
Combining Balance Sheet
Nonmajor Governmental Funds
For the Fiscal Year Ended June 30, 2024
Special Revenue Funds Capital Project Funds
52 80
Item B.
BSCC FORA Habitat
Gas Tax SB 1 Measure X Officer Wellness & Management ARPA Fund Fund Fund Mental Health Fund Fund
REVENUES
Taxes:
Sales tax -$ -$ $ 98,018 -$ -$ -$
Other taxes - 39,895 - - - -
Intergovernmental revenues 46,794 - - - - -
Interest, rents and concessions - - - ` - ` - ` -
Total Revenues 39,895 46,794 98,018 - - -
EXPENDITURES
Current:
General government - - - - - -
Public safety - - - 1,999 - 3,014
Public works 23,030 - 40,679 - - -
Community development - - - - 9,103 -
Capital outlay - 13,195 - - - -
Debt service
Principal - - 77,503 - - -
Interest and fiscal charges - - 20,977 - - -
Total Expenditures 23,030 13,195 139,159 1,999 9,103 3,014 Excess (Deficiency) of Revenues over
Expenditures 23,764 26,700 (41,141) (1,999) (9,103) (3,014)
OTHER FINANCING SOURCES (USES)
Transfers in - - - - - -
Transfers out - - - - - -
Total Other Financing Sources (Uses) - - - - - -
Net Change in Fund Balances 23,764 26,700 (41,141) (9,103) (1,999) (3,014) Fund Balances Beginning 85,446 135,031 114,539 14,833 736,441 170,460 Fund Balances Ending $ 109,210 $ 161,731 $ 73,398 $ 12,834 $ 727,338 $ 167,446 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, 2024
Special Revenue Funds
53 81
Item B.
REVENUES
Taxes:
Sales tax
Other taxes
Intergovernmental revenues
Interest, rents and concessions
Total Revenues
EXPENDITURES
Current:
General government
Public safety
Public works
Community development
Capital outlay
Debt service
Principal
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) of Revenues over
Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Total
SBR SBR/GJM Nonmajor
DEA REAP CalFire Capital Engineering Intersection Governmental Fund Fund Fund Projects Fund Fund Funds
-$ -$ -$ -$ -$ -$ $ 98,018
- - - - - - 39,895
- 31,414 20,632 - - - 98,840
31,261 - - - - ` - ` 31,261
31,414 31,261 20,632 - - 268,014
- 31,414 - - - - 31,414
24,520 - 20,632 138,900 - - 189,065
- - - - - - 63,709
- - - - - - 9,103
- - - - 17,255 - 30,450
- - - - - - 77,503
- - - - - - 20,977
24,520 31,414 20,632 138,900 17,255 - 422,221
6,741 - - (138,900) (17,255) - (154,207)
- - - 138,900 - - 138,900
- - - - - - -
- - - 138,900 - - 138,900
6,741 - - - (17,255) - (15,307)
- - - 950 505,830 1,056,168 2,819,698
$ 6,741 -$ -$ $ 950 $ 488,575 $ 1,056,168 $ 2,804,391
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, 2024
Special Revenue Funds Capital Projects Funds
54 82
Item B.
OTHER INDEPENDENT
AUDITOR’S REPORT
55 83
Item B.
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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
To the Honorable Mayor and Members of the
City Council of the City of Del Rey Oaks
Del Rey Oaks, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Del Rey Oaks (the “City”) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated October 28, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City’s internal control over financial reporting (internal control) as a basis for designing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
56 84
Item B.
16450 Monterey Road, Ste. #5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Chavan & Associates, LLP
Certified Public Accountants
October 28, 2024
Morgan Hill, California
57 85
Item B.
City of Del Rey Oaks
Schedule of Findings and Responses
For the Fiscal Year Ended June 30, 2024
Current Year Findings:
None Noted
Status of Prior Year Findings:
None Noted
58 86
Item B.
City of Del Rey Oaks
City Hall
650 Canyon Del Rey Blvd
Del Rey Oaks, CA 93940
Action Minutes
Tuesday November 19, 2024
6:00 PM
City Council – Regular Meeting
Del Rey Oaks City Council
Scott Donaldson – Mayor
John Uy – Vice Mayor
Jeremy Hallock – Councilmember
Kim Shirley – Councilmember
87 Item 1.
6:00 PM – Called to Order:
The meeting was called to order by Mayor Donaldson
Roll Call: Present: Mayor Donaldson, Vice Mayor Uy, Councilmember Shirley, and Councilmember Hallock.
Absent: None
Also Present: City Manager Guertin, City Attorney Lorca, City Clerk Minami, and Deputy City Clerk Batra.
Pledge of Allegiance:
Led by Mayor Donaldson
Public Comment:
None
Presentation:
David Stoldt, General Manager of MRWMD
Gave an overview and slide show of Proposed 2024-25 Water Allocation Process Mr. Stoldt answered questions from Council Members throughout the presentation.
Slide show is attached
CONSENT AGENDA:
A. MINUTES: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. October 22, 2024, City Council Meeting Minutes
2. March 13, 2024, Planning Commission Meeting Minutes
B. MONTHLY REPORTS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
1. Financials October 2023 - October 2024
2. Fire Department Response Report, October 2024
3. Police Activity Report, October 2024
88 Item 1.
C. MISCELLANEOUS: (CEQA: as to all, not a project per Guidelines Article 20, Section 15378)
None
A motion was made by Council Member Hallock, seconded by Council Member Shirley to approve the Consent Agenda as presented.
Motion passed unanimously 4-0
PUBLIC COMMENT:
None
OLD BUSINESS:
A. Receive a Presentation on the Short-term Rental Program and Transient Occupancy TaxInformation only City Manager Guertin showed a slide show with the final Measure R election results. He further explained that the yearly increase will be used for general use. The increase could be up to $30,000.00 annually. Staff is looking into 3rd party management company to help with the auditing and monitoring of all of the STR’s. Software is needed. We need the assistance, it takes a lot of staff time to handle the amount of licenses. The council will be presented with more information in or around February.
All of the City Council is happy the Measure passed and is in favor of moving forward with a plan to hire consultants to run the program.
Public Comment:
Gary Kreeger: Supports staff needing help; it’s a lot of work. Wants the city to revise the Ordinance to address issues such as density.
NEW BUSINESS:
A. Award Contract and Authorize the City Manager to Sign an Agreement with Coastal Paving and Excavating in the amount of $410,410.00 plus a 15% Contingency for the Rosita Road Emergency Repair Project.
City Manager Guertin: Explains the bid and the contingency amount.
The City Council asked about the timeline, project management, the rolled curb, and the need for a sidewalk on the creek side.
Victor Davi, Coastal Paving: Answers questions and concerns and that the completion will be hampered by bad weather.
A motion was made by Council Member Shirley, seconded by Vice Mayor Uy to approve the City Manager to sign an Agreement with Coastal Paving and Excavating in the amount of $410,410.00 plus a 15% Contingency for the Rosita Road Emergency Repair Project.
Motion passed unanimously 4-0
PUBLIC COMMENT:
None 89
Item 1.
STAFF REPORTS:
City Manager Guertin: Focused on new staff in the city clerk's office, it is a very busy place with a lot of training and cross-training going on while the day-to-day tasks get done too.
Ron in Public Works is still very busy as always. He appreciates the hard work from everyone.
The developers are learning about the property, doing their due diligence. The E.R.N. was ambitious but they are getting a handle on the biological issues right now. They are going in eyes wide open. Planning another gathering at Moose Lodge in the future, for ideas.
A. Council Reports in packet
CORRESPONDENCE:
A. MST Highlights
B. TAMC Highlights
NEXT MEETING DATE: Tuesday, December 17, 2024 at 6:00pm ADJOURNMENT: 7:40 pm
Attest: Date:
------------------------------------------ ------------------------------------------------- 90 Item 1.
11/26/2024
1 Overview of Proposed
2024-25 Water Allocation
Process
City of Del Rey Oaks
David J. Stoldt
General Manager November 19, 2024
Allocation and the Permit Process 2 District History of Water Allocation 3 • 1980s – Each jurisdiction was assigned a portion of existing water supply so each could plan for future with a known amount of water. • 1985 – District initiates review of building plans to determine capacity to use water • 1990 – District develops “Allocation EIR” to determine viable capacity of existing supplies and to determine mitigations required • 1993 – Moves to allocation of new supplies. e.g. Paralta Well Photo of a poster from the 1980s:
Why Do We Allocate Water?
4 • Scarcity of Supplies
• Order 95-10 and Cease & Desist Order • Tracking of New Demand for Water How is an Allocation Like a Bank Account?
5 • District places allocation into
Jurisdiction’s account (a credit) • As Jurisdiction authorizes water for projects, utilizing a “Water Release Form,” District debits Jurisdiction’s account • As Jurisdiction’s account balance diminishes, it may request a new allocation (credit) from the District • As available unallocated supply diminishes, a new water supply
project must be brought online
How Does an Allocation Affect the Permit Cycle?
6 Developer draws plans; Counts water neededDeveloper obtains “Water Release Form” from Jurisdiction Obtain “Water Permit” from District; Debit Allocation Final inspection by District upon
completion – Adjust as necessary
Developer obtains “Building Permit”
1 2
3 4
5 6
91 Item 1.
11/26/2024
2 What Brings Us to Allocation of New Water?
7 Pure Water Monterey Expansion:
• 2,250 new AFY
• Expected Completion Q4 2025
Tentative Schedule
8 Item
September 12 Technical Advisory Committee meeting
October 21 Update to District Board
Oct/Nov Visit Board of Supervisors/City Councils
November 18 Follow-Up to District Board
December 16 First Reading of Ordinance
January 27 Second Reading of Ordinance
30 Days Later Ordinance Becomes Effective
Q4 2025 PWM Expansion Online
Allocations Will Not Solve Everything
9 • Cease & Desist Order (CDO) remains outstanding until State Water Board lifts it. • Moratorium on new meters remains until CDO is lifted. • Only remodels or renovations on sites with existing meters will be possible until then. • Permits only for long-term projects until PWM Expansion is online.
How Much Water is There to Allocate? 10 How Much Water is There? 11 Amount AvailableSource of Supply Carmel River 3,376 AF Seaside Basin 1,474 AF Pure Water Monterey (Base) 3,500 AF Pure Water Monterey Expansion 2,250 AF Aquifer Storage & Recovery (ASR) 1,210 AF Sand City Desal 200 AF
Seaside Basin Wheeled from Others 20 AF Malpaso LLC 86 AF Total 12,116 AF Water Demand Forecasting – 3 Simple Questions 12 How Much Do
I Use Today?
How Fast Will
We be
Growing?
How Much
Will We Need
in the Future?
7 8
9 10
11 12
92 Item 1.
11/26/2024
3 Water Demand – Last 20 Years
13 Acre-Feet
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Monterey Peninsula Demand How Much Supply is Needed to Meet Current Demand? 14 Look to recent historical supply to meet customer demand Supply to Meet Customer Demand Amount Last 3-Years 9,440 AF Last 5-Years 9,557 AF
Last 10-Years 9,819 AF
Proportionate Water Demand Today
15 Residential Use Non-Residential Use Carmel Del Rey Oaks Pacific Grove Sand City Seaside County Monterey How Much Supply is “Excess” Today?
16 Factors affecting available supplies: • Cal-Am in-lieu storage program for Seaside Groundwater Basin could require 700 AFY
• In dry years, PWM Expansion could be 345 AFY less, Sand City desal 40 AFY less, and ASR must rely on storage
• Demand can fluctuate based on weather & economy
• Losses
• Initially, leave a “factor of safety” of 1,000 AFY
Amount Total Supplies Available 12,116 AF Minus Current Demand (9,557 AF) Available 2,559 AF Less Initial “Factor of Safety” (1,000 AF) Net Available 1,559 AF How Much Water do Jurisdictions Need? 17 Water Demand Forecasting – 3 Simple Questions 18 How Much Do
I Use Today?
How Fast Will
We be
Growing?
How Much
Will We Need
in the Future?
13 14
15 16
17 18
93 Item 1.
11/26/2024
4 The Tools to Answer Those Questions
19 Establish Today's Water Demand Use actual Cal-Am data by residential & non- residential, by political jurisdiction. A 5-year average is appropriate. Future Residential Need Use AMBAG Regional Growth Forecast for each jurisdiction’s population as growth in residential water demand. Assume happens over a 25-year forecast period. Adjust for population served by others. Future Commerical Need Use AMBAG Regional Growth Forecast of job growth to estimate future non-residential water need. Project over 25-year forecast period. Use survey results for Airport and Military. Add Future Residential, Non-Residential, Airport, and Military Needs to Most Recent 5-Year Average Demand Future Need Based on AMBAG Regional Growth Forecast
20 25-Year Water Need Residential AF Served By Others AMBAG Growth Rates Res / NonRes Current Demand
(5-Yr Avg) Jurisdiction
Carmel 636 AF 0.9%/9.8% 0 AF 25 AF Del Rey Oaks 113 AF 59.4%/11.5% 38 AF 19 AF Monterey 3,168 AF 5.2%/11.0% 0 AF 253 AF Pacific Grove 1,185 AF 3.6%/5.4% 0 AF 48 AF Sand City 84 AF 211%/8% 0 AF 49 AF
Seaside 1,330 AF 14.2%/10.2% 100 AF 76 AF Unincorporated 3,041 AF 5.2%/11.0%* 17 AF 189 AF Airport Included Survey n/a 88 AF Defense Included Survey n/a 54 AF TOTAL 9,557 AF 801 AF *: Unincorporated population and jobs growth calculated based on City of Monterey growth rate AMBAG Documents & Data Intend to be Consistent 21 AMBAG’s “Big 3” Work Products: • Regional Growth Forecast (RGF) every 4 years • Metropolitan Transportation Plan / Sustainable
Communities Strategy (MTP/SCS) every 4 years
• Regional Housing Need Allocation (RHNA) every 8 years SB 375 links RHNA and MTP/SCS to same cycle; RGF is linked to MTP/SCS adoption cycle. 2022 2038 2026 2030 2034 RGF MTP RHNA RGF MTP RHNA RGF MTP RHNA RGF MTP RGF MTP Problem: AMBAG Creates Confusion
22 6
th Cycle Housing Units 25-Year Population Growth
Jurisdiction
Carmel 35 349 Del Rey Oaks 988 184 Monterey 1,469 3,654 Pacific Grove 552 1,125 Sand City 813 260
Seaside 4,779 616 Unincorporated 839 * 1,314 *
*: Unincorporated population growth calculated based on Cal-Am population and City of Monterey growth rate; Housing units based on draft housing element. Future Need Based Adjusted for RHNA 23 Total Low Income Moderate Above Moderate Allocation Very Low Income Total Allocation67% Singlefamily 33% Multifamily 50% Singlefamily 50% Multifamily 100% Multifamily 100% Multifamily Total Water Req'd (AF) 196.36 126.20 34.37 64.80 85.14 291.54 798.41 Based on Housing Elements, water required for mix of housing stock can be estimated for each jurisdiction:
For lack of better methodology, this can be added to water needed for population growth and divide by two.
Future Need Based Adjusted for RHNA
24 25-Year Need Adjusted for RHNA25-Year Need
Per AMBAG
Jurisdiction
Carmel 25 AF 43 AF Del Rey Oaks 19 AF 13 AF Monterey 253 AF 422 AF Pacific Grove 48 AF 97 AF Sand City 49 AF 43 AF
Seaside 76 AF 64 AF Unincorporated 189 AF 215 AF Airport 88 AF 88 AF Defense 54 AF 54 AF TOTAL 801 AF 1,039 AF 19 20
21 22
23 24
94 Item 1.
11/26/2024
5 Water Demand Forecasting – 3 Simple Questions
25 How Much Do
I Use Today?
How Fast Will
We be
Growing?
How Much
Will We Need
in the Future?
Summary of Proposed Allocations
26 DRAFT
Total Allocation
Existing Allocation
7/31/24 * DRAFT Proposed Allocation DRAFT Proposed Allocation 25-Year Water NeedJurisdiction
Carmel 43 AF 33% 14 AF 2.661 AF 16.661 AF Del Rey Oaks 13 AF 50% 6 AF 0 AF 6.000 AF Monterey 422 AF 33% 141 AF 2.920 AF 143.920 AF Pacific Grove 97 AF 33% 32 AF 0.016 AF 32.016 AF Sand City 43 AF 33% 14 AF 23.163 AF 37.163 AF
Seaside 64 AF 33% 21 AF 30.760 AF 51.760 AF Unincorporated 215 AF 33% 72 AF 12.121 AF 84.121 AF Airport 88 AF 50% 44 AF 5.197 AF 49.197 AF Defense 54 AF 50% 27 AF 0 AF 27.000 AF 1,039 AF 371 AF 447.838 *: Existing allocation to be determined at time of adoption of Ordinance. 27 Questions?
25 26
27 95
Item 1.
96 Item 1.
97 Item 1.
1 City Council Report
Nov 2024
Case # Date Offense Code 1 Offense Code Description
DROMPADOJResidentialCommercial
24-306 11/01/2024 DOMESTIC Domestic Incident X X
24-307 11/05/2024 484(A) PC Theft from Vehicle X X
24-308 11/06/2024 Information Only Information X X
24-309 11/08/2024 Surrendered Property Surrendered X X
24-310 11/08/2024 Towed Vehicle Towed Vehicle X X
24-311 11/08/2024 530.5(A) PC Identity Theft X X
24-312 11/09/2024 530.5(C)(2) PC Identity Theft Arrest X X 24-313 11/10/2024 20002(A)(1) VC Hit and Run X X
24-314 11/11/2024 Information Only Information X X
24-315 11/13/2024 20002(B) VC Hit and Run X X
24-316 11/13/2024 ACN Accident Non Injury X X
24-317 11/13/2024 Information Only Information X X
24-318 11/15/2024 Information Only Information X X
24-319 11/15/2024 Civil Civil X X
24-320 11/16/2024 AOD Outside Assist X X
24-321 11/18/2024 602(O) PC Trespass X X
24-322 11/18/2024 Found Property Found Property X X
24-323 11/18/2024 Outside Warrant/M Arrest X X
24-324 11/18/2024 Information Only Information X X
24-325 11/19/2024 AOD Outside Assist X X
24-326 11/20/2024 484(A) PC Theft X X
24-327 11/20/2024 11377(A) HS Arrest X X
24-328 11/21/2024 459 PC Burglary from Vehicle X X
24-329 11/21/2024 602(O) PC Trespass X X
24-330 11/23/2024 Towed Vehicle Towed Vehicle X X
24-331 11/23/2024 21510(B) PC Arrest X X
24-332 11/24/2024 11377(A) HS Arrest X X
24-333 11/25/2024 484(A) PC Theft X X
24-334 11/26/2024 1203.2(A) PC Probation Violation X X
24-335 11/28/2024 484(A) PC Theft X X
24-336 11/29/2024 166(A)(4) PC Arrest X X
24-337 11/30/2024 Information Only Information X X
32 Cases
Chris Bourquin - Chief
98 Item 2.
2 Calls for Service Case Reports
Month YTD Month YTD
363 3410 32 337
Alarms Citations
Residential Commercial MPAD Moving Parking Warning
Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD Mo. YTD
1 8 4 63 7 48 22 122 43 398 15 185
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11 155
Item 1.
C I T Y O F D E L R E Y O A K S
DATE: December 17th, 2024
TO: Honorable Mayor and Members of City Council
FROM: Chris Bourquin, Chief of Police
SUBJECT: Approve Award of a Contract with Prestige Roofing, LLC to Complete Roof Repairs from Damage Sustained during Winter Storms (FEMA-4699-DR) CEQA: Staff has determined this project to be categorically exempt per Section 15301 of the CEQA Guidelines.
Recommendation
Approve entering into a contract with Prestige Roofing, LLC to complete roof repairs from damage sustained during last winter’s storms (FEMA-4699-DR)
Background:
A Presidential declaration of a major disaster for the State of California (FEMA-4699-DR), dated April 3, 2023 was issued by FEMA. 4699DR dealt with severe California winter storms, straight-line winds, flooding, landslides, and mudslides between Feb 21, 2023 - Jul 10, 2023. The City of Del Rey Oaks applied for disaster relief for damage sustained to the roof of City Hall. FEMA has approved our application and the city has received the funds ($72,771.33) allocated for repairs.
After receiving three estimates for the roof repairs, staff recommends approval of a contract with the lowest bidder, Prestige Roofing, LLC.
Fiscal Impacts
The total cost of the contract is $76,025. The cost to the city will be $3,253.67 which is the difference between the funds received from FEMA / CalOES and the Prestige Roofing, LLC estimate. There are sufficient funds in the adopted FY 2024-25 budget for PW maintenance and repair projects.
ATTACHMENTS:
1. Repair estimates from Prestige Roofing, LLC, Premo Roofing and Scudder Roofing.
2. Prestige Roofing, LLC contract
Respectfully Submitted,
_______________________________
Chris Bourquin
Chief of Police
Staff Report
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Item 2.
September 16,2024
CITY OF DEL REY OAKS
650 Canyon Del Rey Blvd
Del Rey Oaks CA 93940
Att: Ron Fucci
Email: [email protected]
Phone: (831) 713-0171
Re: 650 Canyon Del Rey Blvd, Del Rey Oaks CA 93940
Per your request, we are pleased to submit a roofing proposal for your consideration.
Work To Be Performed: At Existing hot map flat roof and pitch roof.
1. Tear off existing roofing down to bare wood sheathing and remove all debris from the premises.
2. Replace damaged/rotted wood sheathing. This is to be done as required by the city /County or where necessary to ensure a good quality roof. Since wood condition cannot be determined until the roof is removed, the cost of replacement is not included in the bid price. Initial_______
3. Install new (Gray /Tan) IB single-ply 60-mil mechanically attached roof system per manufacturers specifications. Install one layer of ¼” Densdeck Gypsum fire barrier board under single ply roofing. (20 yrs manufactory warranty)
4. Supply and install new related roof accessories, Roofing jacks and plumbing pipes, inside corners, outside corners, T-joints, per manufacturers specifications.
5. Install new metal base flashing at existing chimney.
6. Install new galvanized drains and downspouts.
7. Install 2 new custom box drains.
8. Install new Single ply Boots at each solar standup.
9. At Small roof entrance install new rigid taper insulation to properly slope roof 10830 Merritt St Suite #5
Castroville CA 95012
Office (831) 998-7775
CA LIC # 1045785
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10. Install pressure treated wood blocks under 2-small HVAC Units and conduits and supply lines.
11. At 2 existing downspouts from composition roof above Install new downspouts over flat roof to drain in to drain box.
12. At pitch roof Install Malarkey (30) year Dimensional style Class “A” fire rated asphalt and fiberglass shingles, or equal per manufactures specifications. Note: All shingles to be nailed, no staples will be used. Color of roofing owner choice
13. Install one layer of Tiger paw felt underlayment under shingles.
14. Install new solar roofing jacks at each standup post.
15. Clean up all roofing debris upon completion of the project.
Total Price: $ 61,400.00 Initial ___________
Option: At flat and Pitch roof (Solar System)
16. Remove 56 Solar modules, Rails and conduit on roof Included transfer of Modules to onsite storage Location.
17. Labor to Install 56 Solar modules, Included re installation of optimizer rails, and conduit.
18. Restart of System and production check ones complete.
19. Clean up all roofing debris upon completion of the project.
Total Price: $ 13,500.00 Initial ___________
Option: At (Gutters)
20. At Existing Areas Install new (5”) Aluminum seamless rain gutter and downspouts. Note:
The gutter hangers to be spaced no more than 4’ feet apart. Color and style of gutter to be owner’s choice.
21. Clean up all roofing debris upon completion of the project.
Price: $ 1,125.00
Bid Exclusions: Permits. Cover interiors. front mansard metal roof at entry of building.
HVAC service or maintenance. Remove or New Duck wort.
Bid Qualifications: Prestige Roofing and Sheet Metal is IB Roof System / Malarkey Certified Installer.
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22. Prices include all materials, taxes, labor, clean up, licenses, and insurance (PL, PD, and workman’s compensation) required to complete the job. Any alterations or improvement, which must be replaced or repaired, will result in a change of order or additional charge. Labor will be billed at the rate of $ 80.00 per hour and materials will be charged at cost plus tax, plus an additional 10%
23. Contractor’s scope of work shall not include the identification, detection, abatement, encapsulation, and/or removal of asbestos or similar hazardous substances. If contractor encounters any such products or materials in the course of performing its work and contractor determines that such materials present a hazard to its employees, contractor shall have the right to discontinue work and remove employees from the jobsite until such products or materials and any hazards connected therewith are located, abated, encapsulated, or removed. The contractor shall receive an extension of time to complete its work hereunder and compensation from removal costs and delays encountered as a result of such situation and correction.
24. Any alteration or deviation from the above specification involving extra costs will become an extra charge over and above the work. Our workers are fully covered by Workmen’s Compensation and Public Liability Insurance. Overdue accounts will be charged interest at the rate of 1.5% per month (minimum $ 2.00 per month charge) or 18% per annum after 30 days. In the event it becomes necessary to enforce this agreement by litigation, the prevailing party shall be entitled to court costs, attorney and collection fees. This proposal may be withdrawn at any time before acceptance.
As we know raw material shortages and price increases continue to hit the market in our industry. Currently our bid proposals estimate is valid for 30 days, anything after that is subject to change or to be revised for any price increase.
25. The above proposal is covered by our (10) year workmanship warranty.
We appreciate the opportunity to submit our proposal. Please call if you have any questions or if we can be of further service.
Sincerely,
Prestige Roofing and Sheet metal. Accepted: _________________ Miguel Ruiz (831) 484-8880 Dated: _________________
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(831) 901-3352 • premosolar.com
11520 Commercial Pkwy, Castroville, CA 95012 • Est. 1983 • Lic. #1102949
PROPOSAL & CONTRACT
August 8, 2024
OWNER: Del Rey Oaks Police Department
JOBSITE ADDRESS: 650 Canyon Del Rey Blvd, Del Rey Oaks, CA 93940 Contractor will furnish all work, labor, tools, equipment, materials, supervision, scheduling, coordination, and contract administration necessary to complete in a good and workmanlike manner the following:
Solar Panel Removal and Re Install.
Scope of Work:
1. Provide all material and labor necessary to remove 56 panels
2. Replace Rails with new Iron Ridge XR100
3. Replace mounts and flashings
4. Replace conduit
5. Re install 56 panels
Contract Price:
Homeowner shall pay the Contractor for the materials and labor performed under this agreement in an amount of: $25,185.00
Payment Terms:
Due in full upon completion of work.
Work Exclusions:
Unless specified to the contrary in the Installation Agreement or a Change Order, the services, activities, and work set forth below are excluded from the scope of work required by Contractor pursuant to the Contract:
1. Removal or re-location of equipment, obstacles, or vegetation in the vicinity of the Solar System.
2. Cost of stamped engineering calculations and/or drawings.
3. Upgrade of any existing electrical panels or PG&E service equipment, conductors, etc. 160
Item 2.
ADDITIONAL TERMS, CONDITIONS AND NOTICES THAT YOU, THE OWNER OR SIGNATORY PARTY FOR OWNER ARE SUBJECT TO:
• If it becomes necessary to institute suit or to employ an attorney in connection with any dispute arising under the terms and conditions of this contract, the prevailing party shall be entitled to recover all court costs and reasonable attorney’s fees in addition to all damages proven. • If terms and conditions of Installation Agreement are accepted, the owner of the property is required to sign below indicating acceptance of the Installation Agreement. If an agent or someone other than the owner signs for approval on the owner’s behalf, a Preliminary Lien Notice will be filed and sent to owner of property (See Mechanic’s Lien Law information shown below). • In the event you cancel the signed contract, after work has started, or materials ordered, a 10% cancellation fee of the bid proposal amount shall be charged in addition to any incurred costs, permit fees, or accrued overhead expenses.
• This proposal is void if not accepted within 30 days. • A notice concerning commercial general liability insurance is attached to this contract. • A notice concerning workers’ compensation insurance is attached to this contract.
Respectfully Submitted,
By: Daniel Verdugo
Daniel Verdugo
Premo Roofing & Solar
CA License #1102949
Contractor is hereby authorized to furnish all materials and labor required to complete the work mentioned in the above proposal for which I/we agree to pay the amount mentioned in the said proposal and in accordance with the terms thereof.
ACCEPTED AND AUTHORIZED BY
Date: Signed:
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MECHANICS LIEN WARNING:
Anyone who helps improve your property, but who is not paid, may record what is called a mechanics’ lien on your property. A mechanics’ lien is a claim, like a mortgage or home equity loan, made against your property and recorded with the county recorder. Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to improve your property may record mechanics’ liens and sue you in court to foreclose the lien. If a court finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the lien. Liens can also affect your credit. To preserve their right to record a lien, each subcontractor and material supplier must provide you with a document called a ‘20-day Preliminary Notice.’ This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if he or she is not paid.
BE CAREFUL. The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material. This can be a big problem if you pay your contractor before you have received the Preliminary Notices. You will not get Preliminary Notices from your prime contractor or from laborers who work on your project. The law assumes that you already know they are improving your property.
PROTECT YOURSELF FROM LIENS. You can protect yourself from liens by getting a list from your contractor of all the subcontractors and material suppliers that work on your project. Find out from your contractor when these subcontractors started work and when these suppliers delivered goods or materials.
Then wait 20 days, paying attention to the Preliminary Notices you receive.
PAY WITH JOINT CHECKS. One way to protect yourself is to pay with a joint check. When your contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided you with a Preliminary Notice, write a joint check payable to both the contractor and the subcontractor or material supplier.
For other ways to prevent liens, visit CSLB’s website at www.cslb.ca.gov or call CSLB at 1-800-321-CSLB (2752).
Remember, if you do nothing, you risk having a lien placed on your home. This can mean that you may have to pay twice, or face the forced sale of your home to pay what you owe.
INFORMATION ABOUT THE CONTRACTORS STATE LICENSE BOARD (CSLB) CSLB is the state consumer protection agency that licenses and regulates construction contractors.
Contact CSLB for information about the licensed contractor you are considering, including information about disclosable complaints, disciplinary actions and civil judgments that are reported to CSLB. Use only licensed contractors. If you fi le a complaint against a licensed contractor within the legal deadline (usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor, CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed contractor’s employees. For more information: VISIT CSLB’s website at www.cslb.ca.gov CALL CSLB at 1-800-321- CSLB (2752) WRITE CSLB at P.O. Box 26000, Sacramento, CA 95826 162
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Note about Extra Work and Change Orders
Extra Work and Change Orders become part of the contract once the order is prepared in writing and signed by the parties prior to the commencement of any work covered by the new change order. The order must describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and the effect the order will have on the schedule of progress payments.
COMMERCIAL GENERAL LIABILITY INSURANCE (CGL)
Premo Solar carries commercial general liability insurance written by Kinsale Insurance Company. You may call the Kinsale Insurance Company at (804) 289-1300 to check the contractor’s insurance coverage.
WORKERS’ COMPENSATION INSURANCE
Premo Solar carries workers’ compensation insurance for all employees 163
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PROPOSAL AND CONTRACT
August 7, 2024
NAME: City of Del Rey Oaks- Ron Fucci
ADDRESS: 650 Canyon Del Rey Boulevard, Del Rey Oaks, CA 93940 JOB ADDRESS: Same
The undersigned agrees to furnish and provide necessary labor, materials, tools, implements and appliances to do, perform and complete in a good workmanlike manner the following:
New 60 Mil IB PVC Roof System
&
Malarkey Ecoasis Solar Reflective Shingles
Preparation:
1. Provide re-roofing permit and facilitate required inspections.
2. Cover and protect outside perimeter of building as needed from re-roofing activities.
3. Remove the existing foam and Built-Up (hot tar) roof systems cleaning the underlying wood decking of all loose debris (Flat with parapet walls).
4. Remove and dispose of the existing fiberglass roof system cleaning the underlying roof deck of all nails and debris.
5. Clean around the base of the existing duct penetrations, exhaust fan units and remaining roof equipment as needed to incorporate into the new PVC roof system.
6. Install new solid wood box curbs at all roof mounted equipment that currently sit on wood sleepers.
7. Install new tapered insulation (Crickets) at the back of all vertical unit curbs and skylights. 60 Mil IB PVC:
1. Install 1 layer of 1/4” Dens Decking (4’ x 8’ sheets) over the entire roof area and secure to underlying roof deck with 3” steel insulation plates and #14 2” wood screws (Provides class “A” fire rating and uniform and projection free substrate).
2. Re-roof over the new Dens Decking with 60 Mil IB PVC (72” wide sheets) single ply membrane and fasten to existing roof substrate with 2” #14 wood screws and 2” steel membrane plates 12” on center.
3. Install 2 half sheets (36” wide) of PVC around outside perimeter of roof as needed to provide wind uplift requirements.
4. Hot air weld new membrane at all field seams with automatic welder.
5. Install new 3” x 3” 90-degree PVC cladding metal along bottom edge of roof deck and secure in place with 1.5” #14 wood screws.
6. Apply an 8” wide 60 Mil PVC cover strip over new cladding metal and heat weld to new cladding metal and top of field sheet.
7. Install new PVC pipe and vent boots at all plumbing and vent pipe penetrations and hand weld over the top of field membrane.
8. Provide and install all remaining PVC membrane components which include pre-molded inside and outside corners at equipment curbs, termination bar, caulking and sealants as needed to apply new roof system.
9. Clean up and haul away all roof debris from the site to complete. 11520 Commercial Pkwy, Castroville, CA 95012
Office: (831) 443-3605 • premoroofing.com
Est. 1983 • Lice #436765
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Malarkey Ecoasis:
1. Install new 60 Mil IB Roof system at internal gutter detail.
2. Apply 1 layer of Malarkey Secure Start Plus Synthetic Underlayment over the existing plywood secured to existing roof deck with plastic cap nails.
3. Install Smart Start starter course along bottom perimeter eave edges and secure in place.
4. Install new Malarkey Ecoasis NEX Polymer Modified Architectural Shingles over new felt and secure to existing roof deck with 1 ¼” hot dipped galvanized roofing nails.
5. Install new metal plumbing and vent pipe flashings at all roof penetrations to replace existing and paint to match color of new shingles.
6. Install new 10’’ Malarkey EZ-Ridge ridge cap at all hip and ridge locations secured in place with 1 ¾’’ hot dipped galvanized roofing nails.
Additional Details:
1. New roof system carries a 10-year workmanship and standard 20-year manufacturer’s warranty.
2. New Malarkey Ecoasis roof system carries 10-year workmanship and 40-year manufacturer’s warranty
3. The proposed bid price is for a full re-roof.
4. New IB PVC roof system is impervious to ponding water.
5. Existing HVAC Ducting & Gas lines, solar system figured to be removed by others.
6. New roof systems comply with Monterey County CRRC commercial roofing regulations.
All the above is to be completed for the sum of $67,850.00.
Sixty-Seven Thousand Eight Hundred Fifty and NO/100
Exclusions: Dry rot and termite damage repairs, removal and re-installation of existing solar system, removal and reinstallation of gas lines, ducting etc. electrical work or repairs, new gutters, leader heads & downspouts, removing of any obsolete or abandoned roof equipment, additional sloping of existing roof deck or building up of any sagging or low spots (existing roof deck has deflection, Premo Roofing will not be responsible for any ponding water to result in the future), intake attic space venting, access limitations around perimeter of building, any additional labor or materials not outlined in the above Proposal & Contract.
ADDITIONAL TERMS, CONDITIONS AND NOTICES THAT YOU, THE OWNER OR SIGNATORY PARTY FOR OWNER ARE SUBJECT TO:
• If needed, replacement of rotten sheathing is billed on a time and material basis at a rate of $150.00 per man hour. All new materials installed will be bench primed. Finish painting will not be provided. • All payments are due 10 days from the billing date. Interest will be charged at the rate of 1 ½% per month or 18% per annum after 30 days. Any other arrangements must be made in writing and agreed to by both parties prior to commencement of the project.
• Sheathing repairs done by Premo Roofing are done for the sole purpose of weatherproofing the roof. • Premo Roofing will not be responsible for any pest infestation or dry rot which may appear in the future. • Any asbestos discovered on the premise shall be the sole responsibility of the owner and Premo Roofing takes no responsibility with respect to the removal and/or disposal of the same. • If it becomes necessary to institute suit or to employ an attorney in connection with any dispute arising under the terms and conditions of this contract, the prevailing party shall be entitled to recover all court costs and reasonable attorney’s fees in addition to all damages proven. • If the terms and conditions of Proposal & Contract are accepted, the owner of the property is required to sign below indicating acceptance of Proposal & Contract. If an agent or someone other than the owner signs for 165
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approval on the owner’s behalf, a Preliminary Lien Notice will be filed and sent to the owner of property (See Mechanic’s Lien Law information shown below).
• In the event you cancel the signed contract, after work has started, or materials ordered, a 10% cancellation fee of the bid proposal amount shall be charged in addition to any incurred costs including hours spent on clerical work, ordering, and delivering of samples, permit fees and accrued overhead expenses. • The terms of payment shall be: 50% progress payment upon loading roof with new material and balance due in full upon completion of work.
• Special order and non-returnable materials will have to be paid for in advance before ordering said materials. • Proposed bid price is subject to material price increases. Costs of materials continue to rise making it difficult to hold pricing for more than 30 days.
• “Under the Mechanic’s Lien Law (California Code of Civil Procedure, Section 1181 ET SEQ.), any contractor, subcontractor, laborer, supplier, or other person who helps to improve your property but is not paid for his work or supplies, has a right to enforce a claim against your property. This means that, after a court hearing, your property could be sold by a court officer and the proceeds of the sale used to satisfy the indebtedness. This can happen even if you have paid your own contractor in full, if the subcontractor, laborer, or supplier remains unpaid.”
Contractors are required by law to be licensed and regulated by the Contractor’s State License Board. Any questions concerning a contractor may be referred to the Contractor’s State License Board, 1020 N. Street, Sacramento, California 95814.
Respectfully Submitted,
By Cesar Felix
Cesar Felix
Premo Roofing Company
CA License #436765
ACCEPTED AND AUTHORIZED BY
Date_____________________ Signed __________________________________ Date_____________________ Signed __________________________________ 166
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Scudder Roofing Company
California Contractor’s Lic. #445118
P.O. Box 2596 Monterey, CA 93942
Telephone: (831) 373-7212 Fax: (831) 883-2453
Visit our website at: www.scudderroofing.com
Proposal/Contract
Date: November 18th 2024
Attention: Ron Fucci
[email protected]
Roofing Proposal For: 650 Canyon Del Rey Oaks “City Hall-Roof” Del Rey Oaks
From: Javier Heredia
[email protected]
Cell: (831) 901-3150 / Fax: (831) 883-2453
Bid Date: November 18th 2024
Scope of work:
Scudder Roofing will furnish all the required materials which we guarantee will be as specified, and we will perform all the labor required for the completion of the re-roof work as follows. Property owner(s) will be listed as additionally insured and receive a copy of Scudder Roofing’s current Workman’s Compensation and General Liability insurance forms before work is scheduled to start.
Scudder Roofing will coordinate and facilitate a pre-construction meeting at the job site before the commencement of work. The pre-construction meeting will be attended by Javier Heredia (Project Consultant), Abel Mendoza (Safety Superintendent), the project foreman, and the owner/agent.
The purpose of the meeting is to introduce the owner/agent to the project foreman and discuss the project details and ensure all expectations are met. All roof installation procedures and other related work installed by Scudder Roofing will be performed following current Cal-OSHA safety recommendations and requirements. Scudder Roofing will secure all necessary permits required by the permitting agency. All inspections will be facilitated by Scudder Roofing employees. At the end of each day, the working area will be made watertight to protect the building and its contents from normal weather conditions.
The work area will be cleaned daily. Upon completion of the work described below, a final clean-up will be performed and all job-related debris will be removed. All work performed by Scudder Roofing will be in accordance to local building codes, manufacturer’s recommendations, and guidelines set by the (NRCA) National Roofing Contractors Association.
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November 18th
20 Scudder Roofing Company 650 Canyon Del Rey Oaks
Base bid 1: 60-mil Duro-Last Roof System and CertainTeed Landmark Solaris Roof system Preparation Work:
1. Flat Roof Area: At the flat roof areas remove all mastic from all roof penetration and remove the existing perimeter edge flashings. Clean the roof surface and remove any loose debris to prepare the existing cap sheet roof surface for the installation of a new 60-mil Duro-Last roofing system.
2. Shingle pitch Roof Area: At the pitched shingle roof area Tera of the existing roof system down to the wood substrate. Pull all roof nails, clean the roof surface and remove any loose debris to prepare for the new roof system
3. End-of-Day Cleanup: At the end of each workday, sweep the perimeter of the working area and the driveway using a magnetic sweep to ensure all fasteners and debris are removed from the job site.
Installation:
1. Roof Insulation: Supply and install new tapered cricket’s behind existing curbs.
2. Roof System: Supply and install a new Class “A” fire-rated 60-mil Duro-Flecee roof system, adhered system over the existing cap sheet system, following the manufacturer’s specifications.
3. Wall Membrane and Transitions: Install new membrane at all roof-to-wall transitions, ensuring proper coverage and sealing and installing Termination Bar.
4. Flashing and Drains: Install all new membrane corners, flashings, drains, as required.
5. Pipe Boots and Vents: Supply and install new membrane pipe boots and roof membrane one-way vents.
6. Perimeter edge: Supply and install all new 3” vinyl coated drip edge flashings at all roof perimeters.
7. Color Selection: The color of the single-ply membrane will be selected by the owner from the manufacturer's standard color options.
8. At the pitched roof: supply and install new perimeter edge flashings and install new membrane at internal gutter details and new membrane drains. Install pre-painted 2”x2” drip edge metal at all eave perimeter details of a new composition shingle roof system. Supply and install new pipe jacks flashings at solar standoffs. Supply and install new galvanized plumbing pipe jacks, and hooded aluminum vent assemblies with rubber storm collars at all plumbing details. Install self-adhered WinterGuard waterproofing membrane around all roof penetrations and valley details. Supply and Install one layer of CertainTeed high-performance Diamondeck synthetic roof underlayment over the entire roof area. At lower eave lines, supply and install CertainTeed Swift starter at all rake and eave details. Install a CertainTeed “Landmark Solaris” Roof system as per manufacturer specifications. All field shingles will be fastened using Hot dip galvanized roofing nails. Install new low profile O’Hagin vents to promote adequate attic venting. Install heavy textured “Mountain” ridge trim shingles fastened with stainless steel roofing nails at all hip and ridge details.
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November 18th
20 Scudder Roofing Company 650 Canyon Del Rey Oaks
ADD ON Solar PV Work: Carefully remove the existing PV solar system as necessary and set aside for re-installation after installing the new roof system. The PV solar system will be re-installed to match the same existing layout.
Before the solar system removal and after installation, Scudder Solar will monitor the system to ensure everything is in good working condition. *Please note that Scudder Roofing/Solar is not responsible for future system performance or faulty equipment during removal or installation. A project improvement order will take effect if additional components/wiring is required.
Guarantee
Ten (10)-year guarantee on workmanship provided by Scudder Roofing Company. The manufacturer of product selected by the owner will provide a material warranty where applicable.
Exclusions:
Interior cover-up Interior painting Eave Venting Hazardous mat/abatement/disposal New Gutters Splash blocks Performance Bond New Skylights Stucco Work Electrical work Plumbing work HVCA Work
Work at other areas Dry rot repairs Permit cost Additional Solar PV equipment Roof insulation/tapper roof system
Safety note
The job scope detailed in this proposal includes the set-up, as necessary, of worker and pedestrian safety systems which may include but are not limited to toe boards at roof level and personal safety harness systems and other fall protection systems to be worn or secured by Scudder workman while on the roof. All roof installation procedures and other related work installed by Scudder Roofing will be performed in accordance with current Fed-OSHA safety recommendations and requirements.
Asbestos note
If demolition encounters asbestos for removal, disturbance, or disposal, owner of building will be responsible for any disposal and roof price will increase accordingly for any special abatement procedures.
Price note
Prices are based on having good access the roof areas for loading purposes and working continuously without interruption for the duration of the project. If direct access is not available and it becomes necessary to pack the materials and/or if delays develop which are out of our control and may affect the profitability of the work provided by the Scudder Roofing Company a change order may be issued to cover the cost of additional set up time for each delay.
Prices include all materials, labor, clean up, licenses, and insurance (PL, PD, and Workman’s Compensation) required to complete the job. Any alterations or improvements which must be performed by Scudder Roofing will be charged at an additional rate of $145.00 per hour and materials will be charged at cost plus 40% gross margin. Please note that any alterations or improvements performed will be done solely for purposes of roof installation. Bid subject to change if not accepted within fifteen (15) days.
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November 18th
20 Scudder Roofing Company 650 Canyon Del Rey Oaks
Payment terms
We propose to perform the above work in accordance with the drawings and specifications submitted and completed in a workmanlike manner according to standard practices with payments made as outlined in “terms and conditions” on the following page. Any alteration or deviation from the above specifications involving extra costs will be made and will become an extra charge over and above the work. Our workers are fully covered by Workman’s Compensation and Public Liability Insurance. Overdue accounts will be charged interest at the rate of 1.5% per month (minimum $2.00 per month charge). In the event it becomes necessary to enforce this agreement by litigation, the prevailing party shall be entitled to court costs, attorney and collection fees. We may withdraw this proposal at any time before acceptance.
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November 18th
20 Scudder Roofing Company 650 Canyon Del Rey Oaks
Acceptance of Proposal Initial Options Elected
Base bid 1: 60-mil Durofleece Roof system and landmark Solaris roof system ……………………………………………………………………………………....Total $75,971.00 ( ) ADD ON Solar PV Work
……………………………………………………………………………………....Total $19,600.00 ( ) *If bid bond/performance bond is required add 2%
Terms and conditions
Deposit of 10% up to $1,000.00 due upon signing of proposal with payments made per progress billing cycle based upon the percentage of job completed. All additional pre-approved “change order” or “project improvement” work above the contract price will be billed on an individual basis with payment to be made in full upon completion of the agreed upon improvement work.
Acceptance of proposal
The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified.
Payment will be made as outlined above. It is understood and agreed that this is work not provided for in any other agreement and no contractual rights arise until this proposal is accepted in writing. This contract is only valid when signed by an officer of Scudder Roofing.
Scudder Roofing has the right of refusal on this project prior to officer’s signature.
Accepted: Date
(Sign and print name)
Authorized Signature: Date
Jennifer Scudder, President
We would like to thank you in advance for this opportunity to review and propose a bid for your project. We are striving for 100% customer satisfaction and have worked very diligently to make sure this proposal is suited to meet your needs for now, and in the future.
Please call me if you have any questions. We look forward to working with you.
Sincerely,
Javier Heredia
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November 18th Scudder Roofing Company 650 Canyon Del Rey Oaks
MEDIATION. The parties agree to mediate any dispute or claim arising between them out of this agreement, or any resulting transaction, before resorting to arbitration or court action, through a mutually agreed upon mediator, who shall be a professional mediator, retired judge or attorney, or through the judicial Arbitration and Mediation service. (JAMS), or any other mediation provider or service mutually agreed to by the parties. Mediation fees, if any, shall be divided equally among the Parties. If, for any dispute or claim to which this paragraph applies, any part (i) commences an action without first attempting to resolve the matter through mediation, or (ii) before an action or arbitration is commenced, refuses to mediate after a request has been made, then that Party shall not be entitled to recover attorneys’ fees, even if they would otherwise be available to that Party in any such action or arbitration.
ARBITRATION OF DISPUTES. The Parties agree that any dispute or claim arising out of this agreement, or any resulting transaction, which is not settled through mediation, shall be decided by neutral binding arbitration. The arbitration shall be a retired judge or justice, or an attorney with at least 10 years of experience in construction litigation. The Parties shall have the right to discovery in accordance with Code of Civil Procedure 1283.05. in all other respects, the arbitration shall be conducted in accordance with Tittle 9 of Part 3 of the Code of Civil Procedure.
Enforcement of this agreement shall be governed by the Federal Arbitration Act. Judgment upon the award of the arbitrator may be entered in any court having jurisdiction. “NOTICE: By INITIALING IN THE SPACE BELOW, YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION
DECED BY NEUTRAL ARBITRATION AS PROVIDE BY CALIFORNIA LAW AND YOU ARE GIVING UP
ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATEDIN A COURT OR JURY TRIAL, BY
INTIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS
PROVISION, YOUI MAY BE COMPELLED TO ARBITRATION UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.” WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTER INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION TO NEUTRAL ARBITRATION.”
Customer Scudder
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November 18th Scudder Roofing Company 650 Canyon Del Rey Oaks
Fencing / Facilities / Pedestrian Safety
There is no work are wire- cyclone fencing or a staging area or entry-way Pedestrian safety-scaffold included in this proposal. If this or Project fencing is required a change order will result.
Standard Orange Cones and Caution tape will be used to delineate the work areas.
Plants
Scudder Roofing assumes no responsibility for damage to plants and shrubs, however all due care will be taken to prevent damage.
Change Orders
If you direct any modification or addition to the work covered by this contract, the charge for that extra work shall be determined in advance and the estimated cost shall be added to the contract price, either by estimated amount or previously agreed upon time and materials basis. You shall make payments for all extras as that work progresses, concurrently with the regularly scheduled payments. Contractor shall do no extra work without prior written authorization from you. Any extra work may also increase the estimated time for completion of this project. If owner cannot be reached to approve additional required work, Scudder Roofing will assume owner agrees to the charges and Scudder Roofing will move forward to complete the project on a timely basis.
Job duration note
Prices are based on working continuously without interruption for the duration of the project. If delays are develop which are out of our control and may affect the profitability of the work provided by the Scudder Roofing Company a change order may be issued to cover the cost of additional set up time for each delay.
Lead note
California law requires all structures built prior to 1978, where a painted area in the amount of 20 square feet or more may be disturbed during the roofing or reconstruction process to be either tested for lead in the paint or to assume the existence of lead in the paint. Any removal of paint or stucco in the amount of 20 square feet or more is subject to this provision. As such any testing or abatement procedures required to perform this work will result in a change order over and above the project amount listed in this proposal.
Ceiling
Scudder Roofing assumes no responsibility for damage to ceilings, resulting from roof vibration during re-roofing procedures; however, all due care is taken to prevent any damage. Although great care is administered Scudder Roofing cannot be responsible for non-detectable house wiring that may run directly underneath existing roof system. This wiring may be disturbed or may need to be upgraded to meet certain code upgrades, if this is discovered a change order price will be produced.
Note: Scudder Roofing assumes no responsibility for damage to skylight(s) resulting from roofing procedures. However, all due care is taken to prevent any damage.
Note: Due to the nature of a roofing project, Scudder Roofing must use the driveway access provided. Scudder roofing will assume no liability for damage, which may be caused to the driveway/sidewalk by Scudder, its employees and/or agents. Such damage may include, but is not limited to, subsidence, cracks, crumbling or displacement of the surface due to placing laden or UN-laden vehicles, trucks and/or equipment on the driveway surface.
Note: Scudder Roofing assumes no responsibility for damage to dry wall ceilings, resulting from roof vibration during roofing procedures. However, all due care is taken to prevent any damage.
Note: During roofing of your home or business it is possible the heat duct and water heat duct can be disturbed or jarred loose. Often times it is undetectable from the roof line that any disturbance has occurred. It is strongly recommended and suggested that after the roof is complete and if Scudder Roofing cannot access interior of the house that the owner inspect the duct systems on both the water heater and furnace. If anything looks out of the ordinary and appears to be loose or disturbed, please contact us at your earliest convenience so we can perform a further investigation. It is crucial because an improper connection of the ducting can result in serious injury or death due to carbon monoxide poisoning.
Time for Performance
It is anticipated that work on this contract will begin approximately days after return of the signed agreement, and will be completed in approximately days after commencement, weather permitting. If contractor fails to commence work within twenty (20) days of the date specified for commencement, this may constitute a violation of the Contractor’s State Licensing Law.
Mechanics Lien Notice to Owner
To protect yourself under the Mechanics Lien Law, you have the right to require all materials suppliers and laborers to have signed a “Waiver and Release” form. If a Mechanics Lien has been filed against your property, it can only be voluntarily released by a voluntary “Release of Mechanics Lien” signed by the person or entity that filed the Mechanics Lien against your property unless a lawsuit to enforce the lien was not timely filed. You have the right to withhold any final payment until any and all such liens are removed. You are encouraged to consult with an attorney if a lien is filed against your property. 173
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November 18th Scudder Roofing Company 650 Canyon Del Rey Oaks
Acceptance/Rejection
The company reserves the right to reject or cancel all or part of this agreement due to unacceptable payment performance or credit rating of the Owner/Customer. The Company may accept late payments of partial payments, checks; back drafts or money orders marked “Paid in Full” without waving any of its rights related to this agreement.
Approval
Until approved this proposal is subject to change without notice and is automatically with drawn on the (15th) fifteenth day at issue.
Alternate Bids
The Owner/Customer has the option to obtain alter-alternate bids for the above additional work, provided that obtaining the bids does not unduly hold up completion of the project. The Company will be held harmless for damage to the property during this bidding period. In emergency situations if the Owner/Customer is absent from the work site, the Company is authorized to proceed without formal notification to the Owner/Customer. However, the Company shall be responsible to document the performance of this additional work.
Company Responsibility
The Company shall provide necessary labor, materials and sales tax on materials to complete the object as specified. The Company may in its discretion substitute materials to be used in the work; provided all substituted materials are that of equal kind and quality All surplus or salvageable materials remain the property of the Company.
Company Insurance
The Company shall provide Workers Compensation, Public Liability, Property Damage and Complete Operations insurance for the project unless such insurance in whole or in part is supplied by a general contractor, sub-contractor or owner. Damage to the building or its contents, during or after construction or during the warranty period shall be covered by this insurance. The Company’s maximum liability is limited to the coverage provided.
Mutual Cancellation
The Owner/Customer and Company have the option to renegotiate or cancel this agreement at any time for any reason up to three days after signing the agreement without penalty and with the assurance any deposits paid will be immediately returned. If the contract is breached thereafter without consent of the Company liquidated damages of 20% of the cash PRICE of the project, plus a pro-proportionate share of all work already performed will be due the Company.
Ownership
Title to material and/or work furnished under this agreement shall remain the property of the Company or its assignees until all payments have been made. It is also agreed the Company will have a security interest in any real property of the Owner, and the Owner will not dispose of the property until the work has been paid in full.
Owner/Customer Responsibility
The owner is responsible for individual finance charges, bank fees, or local building permit fees required for the project. The Owner/Customer will make themselves available during construction for clarification of specifications and approval of additional work as may be required The Owner/Customer will assure adequate access to the property and incidental electric and water as required. Special changes or additions to this agreement, as required by regulatory agencies will be at additional cost unless such changes or additions are cited in this agreement normal maintenance and care of work installed is the Owner’s responsibility. The owner/customer will confirm in writing to the Company headquarters any warranty claims within ten days of discovering any detect or failure of the work to properly perform. Certified Mail is considered proof of notice.
Project Sequencing
The Company is responsible for establishing scheduling and sequencing of the work to be performed. The Company shall not he held responsible for delay, non-delivery, discontinuance, default in shipment by a supplier in whole or in part loss in transit, strikes, lockouts or other conditions beyond the control of the Company. The Owner/Customer agrees to pay for completed work, if portions are delayed, due to these reasons. In the event of significant delay, change and price increase involving labor, material or equipment through no fault of the Company the contract amount, time of completion and/or other contract requirements shall be adjusted equitably by Additional Work Order.
Substantial Completion
Payment is due upon substantial completion of the work. If certain minor items OF WORK are incomplete, the cost of those items may be withheld from the substantial completion pay-PAYMENT at the Owner/Customer option until such items are complete.
Understanding
This agreement constitutes the entire understanding between the Owner/Customer and the Company. It is agreed that no representation or warranty is binding unless cited in this agreement.
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November 18th Scudder Roofing Company 650 Canyon Del Rey Oaks
Scudder Roofing Company
P.O. Box 2596, Monterey, CA 93942
Phone (831) 373-7212, Fax (831) 883-2453
www.scudderroofing.com
PARTICULARS
Pitched roof type color
Flat roof type color
Gutter type color downspout color
Bathroom facilities provided by owner? Yes NoPortable toilet? Yes No
Location of toilet:
Electrical service provided by owner? Yes No
Location of Electrical service:
Existing property damage:
Other Notes:
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{AJL-01177027;1}
CITY OF DEL REY OAKS
AGREEMENT FOR 2024 CITY HALL REROOF PROJECT
THIS AGREEMENT (“Agreement”) is executed this ___day of __________, by and between the CITY OF DEL REY OAKS, a municipal corporation, (hereinafter “City”), and Prestige Roofing, 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 “Base Bid” 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 $74,900.00. 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 ___________. 176
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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: Miquel Ruiz
Title: Owner
Address: 10830 Merritt St. Suite #5 Castroville, CA 95012 Telephone: 831-998-7775
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, 177
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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.
1. All insurance required under this Agreement must be written by an insurance company either:
2. admitted to do business in California with a current A.M. Best rating of no less than A:VI;
or
3. an insurance company with a current A.M. Best rating of no less than A:VII. 178
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ii. 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. iii. 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. iv. 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. 179
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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 810-996.6). 180
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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, Contractors Bid.
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:_____________________ 182
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{AJL-01663232;1}
RESOLUTION NO. 2024-20
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL REY OAKS DECLARING THE RESULTS OF THE NOVEMBER 5, 2024
CONSOLIDATED GENERAL MUNICIPAL ELECTION
WHEREAS, a consolidated General Municipal Election was held in the City of Del Rey Oaks on Tuesday, November 5, 2024 as required by the provisions of the laws of the State of California; and
WHEREAS, the Monterey County Registrar of Voters was requested to perform all necessary election procedures for the consolidated General Municipal Election; and WHEREAS, the Monterey County Registrar of Voters did canvass the returns of said consolidated General Municipal Election, and did certify to this City Council the results of the votes cast at said election, which said certification is attached hereto as Exhibit “A,” and incorporated herein by reference; and
WHEREAS, the City Council is required to pass a Resolution reciting the facts of the election and other matters as hereinafter set forth.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Del Rey Oaks does find and state as follows:
SECTION 1. Said canvass by the Registrar of Voters of Monterey County, as shown by said certificates, and the results of said consolidated General Municipal Election, are hereby ratified, confirmed, approved, and declared.
SECTION 2. The number of votes given at each precinct and the number of votes given in the City to each of the persons named for the respective offices for which the persons were candidates, and the ballot measure are as listed in attached Exhibit “A.” SECTION 3. Measure R. Measure R was placed on the November 5, 2024 General Municipal Election ballot. Measure R provided, “Shall the measure to protect city services including police and fire, parks, bicycle and pedestrian safety, roadways and storm drains, by increasing the Transient Occupancy Tax up to 4%, raising up to $60,000 in additional yearly revenue the State cannot take away, and taxing rent charged to “hotel” guests, including by online travel and short-term rental companies, for transient occupancy, with annual independent audits, until ended by voters, be adopted?” Measure R was passed by a majority of voters and the votes given for it are listed in the attached Exhibit “A.”
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{AJL-01663232;1}
PASSED AND ADOPTED by the City Council of the City of Del Rey Oaks at a regular meeting duly held on December 17, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
__________________________
Scott Donaldson, Mayor
ATTEST:
____________________________
Karen Minami, City Clerk
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Item 3.
2025CITYOF DEL REY OAKS REGIONAL
AGENCIES BOARDS & COMMITTEES
REPRESENTATIVES APPOINTMENT LIST
AGENCY
SPECIAL DISTRICTS
STIPEND MEMBER
Alternate
1) ReGen Monterey
* 4 year term through 2028
Felipe Melchor, General Manager
14201 Del Monte Blvd ., Marina
384-5313 / Website: www.mrwmd.org
Meeting: 3 rd Friday of each month at 9:30 a.m.
2) Monterey-SalinasTransit
Carl Sedoryk, General Manager
19 Upper Ragsdale Dr. #200, Monterey
899-2558 / Website: www.mst .org
Meeting: 2
nd Monday of each month at 10:00 a.m.
Mo Co Regional Taxi Authority
Administered by MST
Meeting: Once a year
$100/mtg Shirley
$100/mtg Shirley
Hallock
$5O/mtg
3) Northern Salinas Valley Mosquito Abatement $100/mtg
* 2 year term through 2026
Kenneth Klemme, Manager-Biologist
342 Airport Blvd, Salinas
373-2483 / Website: www.montereycountymosquito.com
Meeting: 2nd Tuesday of each month at 12:00 p.m.
4) Seaside CountySanitation District $100/mtg
Chair: Jerry Blackwelder
440 Harcourt Avenue, Seaside
899-6230 / Website: www.ci.seaside.ca.us
Meeting: 2na Tuesday of each month at 9:30 a.m.
Goetzelt
Uy
Burger
5) M. Peninsula Water Management District
(MPWMD)
David Stoldt, General Manager
5 Harris Court, Bldg . G, Monterey 658-
5600 / Website:
www.mpwmd.dst.ea.us / mpwmd.htm
Meeting: 3rd Monday of each month at 7:00 p.m
No compensation Hallock (PAC)
Guertin (TAC)
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Item 4.
JOINT POWERS AUTHORITIES
1) Association of Monterey BayGovernments
Maura F. Twomey, Executive Director
24580 Silver Cloud Ct., Monterey
883-3750 or [email protected] / Website: www.ambag.org
Meeting: 2
nd Wednesday of each month at 6:00 p.m.
$5O/mtg. Uy
Shirley
2) Community Human Services No compensation
Robin Mccrae, Executive Director
2560 Garden Road, Ste 201,Monterey
658-3811 or [email protected] / Website: www.chservices.org Meeting: 3 rd Thursday of each month at 11:00 a.m.
Hallock
Burger
3) Monterey One Water (MRWPCA)
Paul A. Sciuto, General Manager
5 Harris Court, Bldg. D,Monterey
372-3367 / Website: www.mrwpca.org
Meeting: Last Monday of each month at 6:00 p.m.
$100/mtg Donaldson
Shirley
SPECIALLY CONSTRUCTED ORGANIZATION
Meeting: 4 th Wednesday of each month at 9:00 a.m.
MISCELLANEOUS
1. City Selection (Mayors)
Meeting: 1
st Friday of each month at 11:30
a.m.
2. Monterey Bay Area Insurance Fund (MBASIA)
Conor Boughey, Risk Manager
100 Pine St., 11t h Floor, San Francisco
(415)403-1400 / Website: www.mbasia.org
Meeting: 1 st Monday of each month at 9:30 a.m.
3. Seaside Groundwater Basin Watermaster
Dewey D. Evans, Chief Executive Officer
2600 Garden Road, Suite 228, Monterey
641-0113 / Website: www.seasidebasinwatermaster.org
Meeting: 1
st Wednesday of each month at 2:00 p.m.
Nocompensation
No compensation
Donaldson
Guertin
Bourquin
Shirley
Burger
1) Transportation Agency for Monterey County (TAMC) $100/mtg. Donaldson Todd Muck, Executive Director Uy
55-B Plaza Circle, Salinas
775-0903 / Website: www.tamcmonterey.org
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Item 4.
As of December 17, 2024
Public Safety: Council Members Hallock, Uy, and Mayor Donaldson Park/Rec: Council Members Hallock, Shirley, and Mayor Donaldson Public Works: Council Member Burger, Uy, and Mayor Donaldson Finance: Council Members Burger, Shirley, and Mayor Donaldson Approved as to form and content at a Regular Meeting of the City Council of the City of Del Rey Oaks held on December 17, 2024
Approved:
Attest: ,
190
Item 4.
DATE:
TO:
FROM:
SUBJECT:
CEQA:
December 17, 2024
Honorable Mayor and City Council
John Guertin, City Manager
Approve Modification of Position Control List and Modification of the Salary Schedule to Reflect Promotion of Chief Bourquin to the position of Assistant City Manager/Chief of Police
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
Approve the following changes to the Position Control list and Salary Schedule to reflect the promotion of Chief Chris Bourquin to the position of Assistant City Manager/Chief of Police with a 10% salary adjustment.
Background
In 2021, the City Council approved the establishment of the Assistant City Manager/Chief of Police position through the adoption of Resolution 2021-27. This role was created to address the City's need for streamlined leadership, combining the responsibilities of Chief of Police with executive-level support to enhance citywide operational oversight.
The Assistant City Manager/Chief of Police position is intended to:
• Assist the City Manager in managing citywide operations. • Oversee major interdepartmental efforts and lead high-visibility initiatives. • Serve as Acting City Manager in the absence of the City Manager.
The position remains unfilled since Chief Hoyne’s departure from the City. Effective December 14, 2024, the City Manager has decided to promote Chief Chris Bourquin to this role based on his exceptional qualifications and performance.
Summary & Discussion
Chief Chris Bourquin has served the City with distinction as Chief of Police, demonstrating strong leadership, strategic thinking, and a deep commitment to community service. His experience, institutional knowledge, and ability to effectively collaborate across departments make him uniquely suited for the dual responsibilities of this position.
Under Chief Bourquin's leadership, the Police Department has consistently achieved operational excellence and maintained high levels of community trust. Promoting him to Assistant City Manager/Chief of Police will allow the City to capitalize on his leadership skills while addressing critical organizational needs, including:
• Strengthening coordination between departments.
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Item 5.
• Enhancing responsiveness to citywide operational challenges. • Providing continuity of leadership in the City Manager's absence.
To align with the increased scope of responsibilities, it is recommended that the Salary Schedule be updated to reflect a 10% salary adjustment for Chief Bourquin, raising his annual salary from $160,000 to $176,000. This adjustment ensures fair compensation for the expanded role and aligns with industry standards for similar executive positions.
Fiscal Impacts
The fiscal impact is limited to the proposed 10% salary adjustment, equal to $16,000. The increase will be incorporated into the existing budget. No additional financial resources are required for this action.
Conclusion
Modifying the Position Control List and Salary Schedule to reflect the promotion of Chief Chris Bourquin to the position of Assistant City Manager/Chief of Police is a strategic decision that strengthens the City’s leadership structure. His proven track record and qualifications make him an excellent choice for this key role, and the recommended salary adjustment ensures equitable compensation for the expanded duties.
ATTACHMENTS:
1. Resolution 2024-21
2. Revised Position Control List
3. Revised Salary Schedule
Respectfully Submitted,
John Guertin
City Manager
192
Item 5.
RESOLUTION NO. 2024-21
CITY OF DEL REY OAKS CITY COUNCIL
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
DEL REY OAKS AMENDING THE POSITION CONTROL
LIST AND SALARY SCHEDULE TO REFLECT THE
PROMOTION OF THE CHIEF OF POLICE TO ASSISTANT
CITY MANAGER/CHIEF OF POLICE
WHEREAS, the position of Assistant City Manager/Chief of Police was created by Resolution No. 2021-27 to assist the City Manager in performing the citywide day-to-day executive duties of the City through direct supervision over major interdepartmental efforts, leading citywide programs and initiatives having the highest level of City Council and community visibility, and serving as the City Manager in the City Manager's absence; and,
WHEREAS, the City Manager has decided to promote the Chief of Police to the position of Assistant City Manager/Chief of Police in order to assist the City Manager in performing the citywide day-to-day executive duties of the City; and
WHEREAS, this requires that the City Council amend the position control list and the salary schedule to reflect this change effective December 14, 2024.
NOW, THEREFORE, BE IT RESOLVED by the City of Del Rey Oaks as follows:
1. The attached revised Position Control List and Salary Schedule are hereby approved effective December 14, 2024.
PASSED AND ADOPTED this 17th day of December 2024, by the following vote:
AYES:
NOES:
ABSENT:
Scott Donaldson, Mayor
City of Del Rey Oaks
___________________________________
Karen Minami, City Clerk
City of Del Rey Oaks
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Item 5.
ASSISTANT CITY MANAGER/CHIEF OF POLICE
DEFINITION
Under administrative direction of the City Manager, plans, organizes, directs and administers the public safety and law enforcement activities for the community; performs a wide variety of complex administrative and analytical duties; administers the Police Department budget; manages and oversees assigned administrative processes, procedures, projects and programs; and provides information and assistance to the public regarding assigned programs and services; performs other work as required.
DISTINGUISHING CHARACTERISTICS
This is a department head classification responsible for providing overall administration in the wide range of activities that are involved in protecting life and property. This classification is responsible for assisting the City Manager with the overall management and administration of City operations and services and is required to make certain that all department activities are in accordance with City Manager directives and established City Council policy. Due to the visibility of the position within the community, there is also a public relations element that is important to the functioning of this classification.
EXAMPLE OF DUTIES
Establishes and maintains cooperative relationships with other agencies, public, City Council and City Manager.
Plans, organizes and coordinates the work of the Police Department.
Assume direct responsibility for monitoring and administering a variety of programs; oversee assigned administrative support functions including budget.
Develop and implement operational, administrative, program, and other policies and procedures; assist in contract negotiations and administration.
Participate in drafting and implementing City-wide and departmental goals, policies, and procedures.
Prepares budget estimates and controls budget expenditures.
Collect, compile, and analyze complex information from various sources on a variety of specialized topics related to assigned programs; prepare reports which present and interpret data, and identify alternatives; make and justify recommendations.
Serve as City liaison/facilitator with public and private organizations, community groups and other related organizations
Recommends purchase of equipment and supplies.
Formulates rules, procedures and policies for the efficient operation of the department.
Coordinates law enforcement activities with other City departments and law enforcement agencies. 194
Item 5.
Directs the development and implementation of departmental in-service training programs.
Interviews employment prospects and recommends the selection of new personnel.
Enforces discipline and training regulations.
Evaluates employee work performance and recommends promotions in accordance with established procedures.
Directs investigations of citizen complaints.
Meets with the public and deals with various officials and citizens in furthering the public relations program of the department.
Recommends and administers, as needed, intra-departmental disciplinary action in accordance with City and departmental procedures.
Develops sound and lawful department strategies to address needs for public safety.
Represents the Police Department in meetings with the City Manager, other State or local agencies and citizens.
Reviews department operations to insure and enforce compliance with laws, policies and department budget.
Prepares a variety of correspondence.
Reviews criminal investigations.
Makes public presentations to various community clubs and organizations.
Utilizes the department computers for entering and retrieving information as necessary.
KNOWLEDGE AND ABILITIES
Knowledge of:
Modern principles, practices and techniques of police administration, organization and management.
Principles and practices of public administration used in the operations of local government.
Methods of research, program analysis, and report preparation.
Laws, ordinances, regulations, and court decisions affecting public safety and law enforcement.
Federal, State and local laws, codes and regulations.
Principles and practices of budget administration.
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Item 5.
Public relations techniques and facilitation skills.
Use and care of firearms.
Principles of supervision.
Ability to:
Plan, organize and coordinate the work of the Police Department.
Perform responsible and difficult administrative work involving the use of independent judgment and personal initiative.
Research, analyze, and evaluate programs, policies, and procedures Formulate, implement and administer department policy and procedures.
Develop, coordinate and administer departmental budget functions.
Analyze problems, identify alternative solutions, project consequences of proposed actions and implement recommendations in support of goals.
Prepare clear and concise reports.
Speak and write clearly and effectively.
Establish and maintain cooperative and effective relationships with other law enforcement agencies, public officials and the general public.
Implement procedures and policies of the City Manager and Council.
EDUCATION AND EXPERIENCE
Any combination of training and experience which is likely to provide the required knowledge and abilities would be acceptable for employment. A typical background would be:
Education
Equivalent to graduation from a four-year college or university with a degree in Administration of Justice, Public Administration, or a related field. Masters degree highly desirable.
Experience
Five years of increasingly responsible municipal law enforcement experience, including at least three years at the command level.
SPECIAL REQUIREMENTS
Possession of a valid California Motor Vehicle Operator’s license.
Possession of Advanced and Management P.O.S.T. certificates. 196
Item 5.
Actual Budget Proposed
Position 2022-23 2023-24 2024-25
City Manager 1 1 1
Deputy City Clerk & Assistant to the City Manager 1 0 0 City Clerk 1 1
Administrative Services Technician 1
Deputy City Clerk/Permit Clerk 0 0 1
Administrative Assistant 1 1 0
Assistant City Manager and Chief of Police 1 0 1
Chief of Police 0 1 0
Commander 1 1 1
Sergeant 3 3 3
Police Officer * 5 5 5
Public Works Supervisor 1 1 1
Total Positions 14 14 15
*Police Officer positions are authorized at 6 but only 5 positions are filled for FY 24-25 Budget City of Del Rey Oaks
Position Control List for FY 2024-2025
Effective 12/14/2024
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Item 5.
Title Step 1 Step 2 Step 3 Step 4 Step 5 Contract
City Manager Per Contract
Monthly 16,844.50
Bi-weekly 7,774.40
Hourly Rate 97.18
Annual 202,134.00
Assistant City Manager & Chief of Police Per Contract
Monthly 14,666.67
Bi-weekly 6,769.23
Hourly Rate 84.62
Annual - - - - - 176,000.00
City Clerk
Monthly 6,974.92 7,323.33 7,689.08 8,073.83 8,477.75
Bi-weekly 3,219.20 3,380.00 3,548.80 3,726.40 3,912.80
Hourly Rate 40.24 42.25 44.36 46.58 48.91
Annual 83,699.00 87,880.00 92,269.00 96,886.00 101,733.00 Deputy City Clerk/Permit Clerk
Monthly 5,286.67 5,551.83 5,829.17 6,120.42 6,427.17
Bi-weekly 2,440.00 2,562.40 2,690.40 2,824.80 2,966.40
Hourly Rate 30.50 32.03 33.63 35.31 37.08
Annual 63,440.00 66,622.00 69,950.00 73,445.00 77,126.00 Administrative Services Technician
Monthly 5,286.67 5,551.83 5,829.17 6,120.42 6,427.17
Bi-weekly 2,440.00 2,562.40 2,690.40 2,824.80 2,966.40
Hourly Rate 30.50 32.03 33.63 35.31 37.08
Annual 63,440.00 66,622.00 69,950.00 73,445.00 77,126.00 Police Commander
Monthly 8,526.67 8,952.58 9,400.33 9,869.83 10,363.08
Bi-weekly 3,935.40 4,131.96 4,338.60 4,555.32 4,782.96
Hourly Rate 46.85 49.19 51.65 54.23 56.94
Annual 102,320.00 107,431.00 112,804.00 118,438.00 124,357.00 Police Sergeant
Monthly 7,525.67 7,902.42 8,297.42 8,712.33 9,147.33
Bi-weekly 3,473.40 3,647.28 3,829.56 4,021.08 4,221.84
Hourly Rate 41.35 43.42 45.59 47.87 50.26
Annual 90,308.00 94,829.00 99,569.00 104,548.00 109,768.00 Police Officer
Monthly 6,490.08 6,814.08 7,154.42 7,513.00 7,887.92
Bi-weekly 2,995.44 3,144.96 3,302.04 3,467.52 3,640.56
Hourly Rate 35.66 37.44 39.31 41.28 43.34
Annual 77,881.00 81,769.00 85,853.00 90,156.00 94,655.00 Public Works Supervisor
Monthly 5,655.83 5,938.42 6,234.83 6,546.83 6,964.50
Bi-weekly 2,610.40 2,740.80 2,877.60 3,021.60 3,214.40
Hourly Rate 32.63 34.26 35.97 37.77 40.18
Annual 67,870.00 71,261.00 74,818.00 78,562.00 83,574.00 Temporary/Part Time EE
CITY OF DEL REY OAKS
SALARY SCHEDULE FOR FISCAL YEAR 2024-2025
Effective 12/14/2024
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Item 5.
Hourly Rate At the discretion of the City Manager 50.00
1. Mayor and City Council Members shall be paid the sum of $100.00 per month for attendance at all regular and special council meetings unless previously granted a leave of absence with pay, or unless excused by the Mayor.
2. The Mayor is paid an additional $125 per month for promoting and advertising the City.
3. All employees of the City pay the full employee paid percent contribution to each employee's PERS account.
4. The Police Chief and the City manager's salaries are per individual contract.
5. Police Reserve officers are paid at a rate of $35.66 per hour worked (1st step Police Officer). 6 Police Officers Uniform Allowance $1,000 annually
7 City Manager: Auto Allowance $450/month ($5,400 annual) 8 PD works 84 hours/ pay period
9 Educational Incentive:
$100 per month for Associate's degree
$200 per month for Bachelor's degree
10 Longevity Pay:
2% longevity pay for individual's working over 10 years 4% longevity pay for individual's working over 20 years 11 Wellness: $500 per year
CITY OF DEL REY OAKS
SALARY SCHEDULE FOR FISCAL YEAR 2024-2025
199
Item 5.
DATE: December 17, 2024
TO: Honorable Mayor and City Council
FROM: John Guertin, City Manager
SUBJECT: Appointment of Vice Mayor for 2025
CEQA: Enactment of this resolution is not subject to the California Environmental Quality Act (CEQA) as it is not a project pursuant to Guidelines Section 15378 (b)(5) because it is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment.
Recommended Action
That the Council approve the appointment of Councilmember Jeremy Hallock as Vice Mayor for the 2025 calendar year.
Discussion
California Government Code Section 36801 requires the appointment of a mayor pro tempore or Vice Mayor. At the beginning of 2024, the Council selected Councilmember Uy to be Vice Mayor for 2024 and that Councilmember Hallock would be next in the rotation.
Fiscal Impacts
None.
Respectfully Submitted,
_______________________________
John Guertin
City Manager
200
Item 6.
DATE:
TO:
FROM:
SUBJECT:
CEQA:
December 17, 2024
Honorable Mayor and City Council
John Guertin, City Manager
Approve transfer of $167,446 from the ARPA Fund to the General Fund as reimbursement for General Government Administration
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
Approve the transfer of $167,446 from the ARPA Fund to the General Fund as reimbursement for General Government Administration.
Background
The City received $395,672 in ARPA monies of which $228,226 has been spent as of June 30, 2024 leaving a balance of $167,446. Staff recently attended a webinar regarding the expenditure of these monies. Staff was reminded that the deadline to obligate the monies is December 31, 2024. To be considered obligated the funds need to be entered into a contractual agreement by December 31, 2024. The City then has until 2026 to spend the obligated funds. If funds are not obligated by December 31, 2024 they have to be returned.
Staff has not been able to spend the funds as planned. As such, there is a need to spend/obligate the funds by December 31, 2024, or return the unused funds.
Summary & Discussion
The simplest solution is to spend the remaining $167,446 for General Government Administration, one of the allowable categories. Staff is therefore recommending that the $167,446 be transferred to the General Fund as reimbursement for City Clerk expenses which through November total $265,296. This will fulfill the requirement for obligation of the monies by December 31, 2024.
During the mid-year budget review the Council can then consider how to utilize the additional General Fund monies. They can be used for some of the anticipated ARPA uses with no time constraint since the monies will now be General Fund monies.
Fiscal Impacts
The fiscal impact is that the General Fund will receive an additional $167,446 in funding and the ARPA Fund will be depleted.
Conclusion
Approval of the recommended action will allow the City to make full use of the $395,672 in ARPA funds received.
201
Item 7.
ATTACHMENTS:
• None
Respectfully Submitted,
_______________________________
John Guertin
City Manager
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Item 7.
Kim Shirley’s Council Report
for Tuesday, December 17, 2024
Wednesday, November 13th- Technical Advisory Committee for the Seaside Groundwater Basin Watermaster- As the vice chair of this committee, I ended up chairing today’s meeting since we were missing our chair and barely met quorum. After approving the minutes, we reviewed the Salinas Valley and Marina Coast Water District Groundwater Sustainability updates from our staff. I specifically asked questions about the proposed seawater intrusion extraction barrier and desalination project that is being reviewed to protect further seawater intrusion in the 180/400 ft aquifer. It’s an impressive amount of water that they would need to process in order to achieve the protective barrier.
To meet the objectives they would need to extract between 40,000 and 100,000 acre-feet/yr with a recovery of about 70% (they would produce 70% of what they extract). I was curious to know if the Seaside Basin would be allowed to purchase any of this water to protect our basin (we would need roughly 3,600 acre-ft/yr). At this time, the plan is to deliver water only to those that are associated with their basin, but our staff will remain involved in these discussions and will bring it up again if they indeed move forward with this project.
Next we approved contracts for services that the Watermaster will be using in 2025.
Nothing was out of the ordinary and they were easily approved.
Tuesday, November 19th- City Council Meeting- We began our city council meeting with a very informative presentation from Dave Stoldt, General Manager of the Monterey Regional Water Management District (MRWMD). With the expansion of Pure Water Monterey coming online by the end of 2025 it’s now up to the Water Management District to allocate the “extra” water to jurisdictions and other agencies who are looking towards growth. For jurisdictions, MRWMD looked at the AMBAG Regional Growth Forecast along with the Regional Housing Need Allocations (RHNA) to begin those calculations. As a reminder, this water being discussed is only applicable to our current built footprint of DRO.
Our Ft. Ord property will be getting its water from Marina Coast Water which is a separate water provider so our new allocation will only apply to construction within our current residential and commercial areas. After looking at the AMBAG reports and considering our RHNA growth will mainly be located in former Ft. Ord, the Water Management District has decided to allocate a total of 13 Acre Feet/year for the next 25 years with an initial allocation of 6 AFY (for reference, our current 5yr demand within our city is 113 AFY). This water can be used for ADUs, additional bathrooms, and other potential projects with water needs. It will be important for the council to have discussions and create policies around prioritizing projects for the release of this new water which becomes available to us in February 2025. Unfortunately, the peninsula is still bound by the state cease and desist order so this water wouldn’t be able to be used for projects that would require a new meter. 1 203
Item A.
MRWMD will be going to the state to make the case that the cease and desist order is no longer necessary given this extra water and it’s been years since we’ve been overdrafting the Seaside Basin and are no longer taking extra water from the Carmel River.
Regardless, it’s great to be getting this new source of water, so if YOU have thoughts on how it should be used, let me know.
Under Old Business we discussed the passage of our ballot measure which will allow us to raise our transient occupancy tax (TOT) from 10% to 12%. With this added income, which may roughly equate to $30,000, City Manager John Guertin presented the possibility that we use some of that money to hire a service that will help us manage our short term rentals (STRs) which is the only source of our TOT. I really like the idea of relieving our city staff from monitoring our STRs and the time it takes to manage the collection of taxes. No doubt these services are expensive but I’m happy we’re looking into them and I look forward to talking more about this in the coming months.
Lastly, under New Business we discussed and approved a contract for the work that will be done to fix the portion of Rosita Rd that’s slipping into the creek (the uphill portion, above the intersection of Angelus and Rosita). I’m grateful that staff applied for a FEMA grant to fix this portion as the project came in at $410,410 plus a 15% contingency. I know residents have been hesitant to drive over that portion of the road and they’ll be happy to see it fixed. The work should begin in January (weather permitting) and take about 30 days to complete. In the discussion, City Manager Guertin also talked about building a sidewalk along that edge, which I think is a great idea. I’d love to see us incorporate that as a future project.
Friday, November 22nd- ReGen Monterey Board Meeting- This was our last meeting of the year and thankfully, we didn’t have too many things on the agenda. After passing the consent agenda, we had a presentation from the Sitos group about the biochar pilot program, which will end in July 2025. As a reminder, the Sitos group is using slow pyrolysis, with mainly large wood waste material as feedstock, to create biochar that sequesters carbon and can be put into soil to enhance our agricultural industry through increased soil health and improved plant nutrition. Apparently, this pilot program is the only one that has a focus of creating customizable biochar for agriculture. Unfortunately, or fortunately since this is a pilot project, they ran into several problems over these past 15 months that they finally just worked out. They’ve only been able to produce up to 40% capacity because they’ve had lots of problems with moisture, both in the feedstock but also combined with the moisture of our local climate. This discovery has led them to design a dryer that will be installed in the next version of their setup. They’ve also been working towards improving the quality of the biochar, understanding what other feedstock they might be able to use, as well as working on their air quality permitting (pyrolysis is not considered incineration or combustion, but they were finding an increase in lead that was being released). In the end, I think they were very pleased with everything they’ve learned with this pilot program and they look forward to creating a larger capacity facility 2 204
Item A.
somewhere locally where they will see revenue streams from not only selling the biochar to the agricultural industry, but they will also make money from energy sales and carbon credits.
Our only discussion item for this meeting was discussing our new approach for dealing with our CalPERS unfunded actuarial pension liability, which is currently at $19.7 million (actually it’s higher since that was the number from 2023, which is the most recent accounting). We were presented with four options and after some discussion we went with the staff recommendation which is to make an “extra payment” of at least $500,000 at the beginning of the calendar year in addition to keeping up with our minimal payments that we’ve been making every year. This plan will reduce our interest we accrue and will pay off the “unfunded” portion in roughly 13 years. The Board will have the flexibility to either pay more or less when the time comes, but this gives the staff the direction to incorporate that amount into our budgeting process every year. I greatly appreciated this item and am happy the staff worked to address this issue.
After getting the financial update, we moved on to elect our officers for the 2025 calendar year. I’m very proud that the committee opted to stay with the status quo— keeping me as chair for another year and keeping Mayor Bruce Delgado as vice chair. This recommendation received a unanimous vote of support. I am very honored to remain ReGen’s board chair for 2025. It’s been a great learning experience for me and I truly love what our organization does (just ask my family members…I’m always the one that is obsessed with recycling, reusing, and composting!).
Monday, November 25th- Special Monterey-Salinas Transit Board Meeting- This meeting was called because during the week prior, it was discovered that not all of the federal funding that we were planning on getting to fund the SURF! project was actually going to come through (higher construction costs have raised the total). Luckily, staff were thinking quickly on their feet and were able to come up with the necessary funding from other pots that will allow us to show we have “committed” funds which releases the funding that has been promised for this project. This meeting was to approve those two additional pots of money. The largest portion of the needed money (almost $26 million) is now coming from State SB 125 funding, which had already been set aside for MST, mostly with the idea that it would cover our shortfalls. Thankfully, at this point, our budget looks good and since the SURF! project is also an eligible project for those funds, we felt it was ok to move them over. SB 125 funds are also very flexible, so if the SURF! project doesn’t use all of the funds, they could easily be transferred back for another use. The second portion ($2 million) is coming from our Capital Reserves. As these funds get transferred to this project, we’ll actually receive funds from the Federal Highway Administration which will reimburse us for the use of those funds. The one resolution that covered these actions was easily passed by the board.
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Item A.
Monday, November 25th- Monterey One Water Board Meeting- The two discussion items in tonight’s meeting were related in that they addressed the energy projects M1W will be focusing on in the future. The larger picture is that through the Inflation Reduction Act, M1W will be eligible for Investment Tax Credits (ITC) which will reimburse M1W (on average 30%) for investments in renewable energy projects. In order to capitalize on these projects prior to the new administration, 5% of the project cost needed to be incurred prior to the end of 2024 and that’s what these two agenda items were addressing. The first was an amendment to a contract for electrical design work for interconnection between the Regional Treatment Plant, Salinas Valley Reclamation Plant, and the Advanced Water Purification Facility. The second item listed the projects they are hoping to use for the ITC as well as authorizing a purchase for linear generators which will improve reliability as they move forward with these renewable energy projects. Both of these items easily passed. I’m always impressed with how forward thinking M1W is for the benefit of not only the ratepayers but the planet, too.
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Item A.
Council Report from Vice Mayor John Uy, Ed.D. 1
Council Report from Vice Mayor John Uy
December 17, 2024
I. Council Report: Regular Meeting of the DRO City Council on November 19, 2024 It is with great gratitude that I present to you the highlights from the November 19, 2024, City Council regular meeting. As your Vice Mayor, I am deeply committed to fostering transparency, collaboration, and progress for our beloved city. Below are the key discussions and decisions that took place:
Presentations
David Stoldt, General Manager of MRWMD
David provided an overview of the 2024-2025 water allocation process, emphasizing the challenges and opportunities ahead. This topic is vital for Del Rey Oaks as we navigate sustainable water use in the face of limited resources. I encourage all residents to engage in discussions about conservation and water planning to ensure a resilient future.
Old Business
Short-Term Rental Program and Transient Occupancy Tax (TOT) We received a comprehensive update from Staff on the Short-Term Rental Program and the successful passage of Measure R. The measure will increase TOT revenue by up to 4%, enabling the city to invest in tools to better manage and regulate short-term rentals. At the moment, the TOT will be raised to 12% from 10%, but the Council may raise it to 14% in the future if it sees fit. This will ensure a balance between welcoming visitors and preserving the character of our neighborhoods.
New Business
Rosita Road Emergency Repair Project
The Council unanimously approved awarding the contract for the Rosita Road Emergency Repair Project to Coastal Paving and Excavating. This $410,410 project will address significant damages caused by last winter’s storms. With Federal Highway Administration grant funds covering a substantial portion, this repair will ensure safety and accessibility for all residents.
Looking Ahead
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Item A.
Council Report from Vice Mayor John Uy, Ed.D. 2
We are excited to reconvene on December 17, 2024, for our next City Council meeting. As we approach the end of the year, I encourage everyone to stay engaged, attend meetings, and share your perspectives. Together, we can continue to build a future that honors our past and embraces new opportunities.
Thank you for allowing me to serve as your Vice Mayor. I am deeply inspired by the resilience, kindness, and vision of our community. Let us move forward with hope and determination.
II. Council Report: Thanksgiving Message of Vice Mayor John Uy on November 28, 2024 Dear Del Rey Oaks Community,
This Thanksgiving, I want to share how grateful I am to be part of such a wonderful community.
Del Rey Oaks is more than just a city—it’s a family where kindness, resilience, and togetherness thrive. Each of you contributes to making our home such a special place.
This year, we’ve seen how much we can accomplish when we come together. From small acts of kindness to big community efforts, you’ve shown what it means to truly care for one another. It’s this spirit that makes me proud to serve as your Vice Mayor. 208
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As we gather around our tables, let’s take a moment to count our blessings and extend a helping hand to those who may need it. I hope your Thanksgiving is filled with warmth, joy, and the company of those you hold dear.
Happy Thanksgiving to you and your loved ones. Thank you for making our community so special.
With heartfelt gratitude,
John Uy
Vice Mayor, Del Rey Oaks
III. Council Report: Celebration of Life and Memorial Ash Scattering of DRO Councilmember Bill Ragsdale-Cronin – November 29, 2024
It is with a heavy yet grateful heart that I share the experience of representing the City of Del Rey Oaks at the Celebration of Life and Memorial Ash Scattering for our beloved Councilmember Bill Ragsdale-Cronin on November 29, 2024, at Bass Lake, California. This solemn yet inspiring event was a testament to the remarkable life and legacy of Big Bill, as he was fondly known.
The ceremony brought together family, friends,
and members of the many communities Bill
touched. It was a gathering that reflected the
depth of his impact and the wide circles of
connection he nurtured throughout his life. I had
the profound honor of reading an article written
by Councilmember Kim Shirley for The Acorn,
beautifully chronicling Bill’s contributions to our
city and beyond. Kim’s words eloquently captured
Bill’s passion for community, his steadfast
dedication, and the joy he found in building
connections.
As the event progressed, I was deeply humbled to
participate in the ash scattering ceremony.
Standing at the edge of the serene Bass Lake, I
sprinkled Bill’s ashes into the water, symbolizing
his return to nature and the everlasting flow of
life. Before scattering the ashes, I delivered a
heartfelt message on behalf of the City Council
and the people of Del Rey Oaks, expressing our
deepest gratitude. I thanked Bill for his
unwavering dedication to our community, his
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tireless efforts to improve the lives of others, and his ability to inspire and unite us. His work and spirit have truly left Del Rey Oaks better than it was before. 210
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This experience reminded me of the profound importance of service and the enduring impact one person can have. Bill’s life exemplified the values we cherish in Del Rey Oaks: kindness, collaboration, and an unyielding commitment to community. His legacy will continue to guide us as we strive to honor his memory through our work and our shared vision for the future.
Let us carry forward Bill’s spirit by supporting one another and fostering the sense of belonging that he worked so hard to cultivate. In our moments of reflection and action, may we remember Big Bill and his boundless dedication to the people he served.
IV. Council Report: Message of Vice Mayor John Uy for the Holiday Season – December 10, 2024
Dear Del Rey Oaks Community,
As the holiday season unfolds, I want to express my heartfelt gratitude for being part of such a vibrant and caring community. This time of year reminds us of the simple yet profound joys that bring us together—family, friends, and the shared spirit of goodwill.
May your holidays be filled with moments of laughter, warmth, and love. Let’s cherish the blessings we’ve enjoyed and carry forward the hope and optimism that the new year brings. 211
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Whether you’re celebrating with loved ones or finding quiet moments of reflection, know that you are part of a community that values and supports you.
Wishing you and your family a season of peace, joy, and inspiration. Happy Holidays and thank you so much for making Del Rey Oaks such a wonderful place! With warmest wishes,
John Uy
Vice Mayor, Del Rey Oaks
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Transportation Agency for Monterey County
• 55-B Plaza Circle • Salinas, California 93901-2902
(831) 775-0903 FAX (831) 775-0897 • E-mail: [email protected] www.tamcmonterey.org
TRANSPORTATION AGENCY FOR MONTEREY COUNTY
www.tamcmonterey.org
HIGHLIGHTS
December 4, 2024
TAMC Honors Out-Going Board Members Adams and Potter
The Transportation Agency for Monterey County (TAMC) Board of Directors recognized Supervisor Mary Adams and Mayor Dave Potter for their dedicated work to improve regional transportation throughout Monterey County. The certificates of appreciation are acknowledgements of their service and recognition of their retirement after years of dedicated public service on behalf of Monterey County.
Supervisor Adams was recognized for nearly 8 years of service, which included acting as TAMC Chair in 2022, being a member of Transportation Agency’s Executive Committee and the Rail Policy Committee, and working closely with the County, Caltrans, and CHP on safety improvements along Highway 1 and local road issues and traffic concerns.
Mayor Potter is the longest-term member of the TAMC Board, having served for 31 years in various roles. He has been a tireless champion of expanded passenger rail service in the Monterey Bay Area, representing Monterey County, TAMC, and the Coast Rail Coordinating Council at the State and Federal levels to seek and secure funding for rail projects in our region.
Mayor Potter joined TAMC in 1993 as a Monterey City Council member, followed by his service as District 5 Supervisor from 1996-2016, where he was a key participant in negotiating a successful acquisition of the 13-mile Monterey Branch Line railroad right-of-way from Union Pacific in 2003; and since 2018, Mayor Potter has represented the City of Carmel-by-the-Sea.
During his tenure, Mayor Potter served as TAMC Board Chair in 1994, 1995 and 2008, and Rail Policy Committee Chair from 2001-2016. He advocated for the expansion of Intercity Rail Service between San Francisco and Los Angeles as the Chair of the Coast Rail Coordinating Council for over 30 years.
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Transportation Agency for Monterey County
55-B Plaza Circle • Salinas, California 93901-2902
(831) 775-0903 FAX (831) 775-0897 • E-mail: [email protected] www.tamcmonterey.org
Pajaro/Watsonville Multimodal Station
The Board received an update on the Notice of Preparation and Scoping Period for the Pajaro/ Watsonville Multimodal Station. The Pajaro/ Watsonville Multimodal Station Project is Phase 2 of the Monterey County Rail Extension project. It will create a connection point for new passenger rail service between the Monterey Bay Area and the San Francisco Bay Area region which includes:
• New passenger loading platform, shelters, lighting, and associated infrastructure • Monterey-Salinas Transit and Santa Cruz Metro bus transfer facilities • Bicycle and pedestrian improvements
• Vehicle parking spaces and electric vehicle charging stations • Improved access via a new signalized intersection at Salinas Road and Lewis Road Project Benefits include:
• Expands transportation options with connections to local and regional destinations • Facilitates access to jobs, health care, education, and shopping • Reduces vehicle trips and emissions
• Provides new rail service in the underserved communities of Pajaro and Watsonville Outreach for the Notice of Preparation included a workshop, newspaper ads, social media, emails, and website updates, as well as on-the-ground outreach work at local businesses and community centers, Watsonville farmer's markets, and resident's group meetings. The purpose of the Notice of Preparation and the workshop held in Pajaro on November 20, 2024, was to:
• Introduce the project and alternatives being considered; • Provide an opportunity for verbal and written public comment on scoping project alternatives and the environmental document; and
• Inform the public about the upcoming Draft Environmental Document preparation process, project timeline, and future opportunities for public input.
The Project scoping period is used to get feedback from residents and local community members who could be impacted by the proposed project. The deadline to provide feedback for the scoping period is Friday, December 6, 2024.
Project information: https://www.tamcmonterey.org/monterey-county-rail-extension-phase-2- pajaro-watsonville#/
Survey: https://publicinput.com/project/?id=92638&embedId=86508#tab-58172 214
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