Government-Wide Financial Statements
The C
ity's government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type 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.
These s
tatements 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, are included in the accompanying Statement of Net Position . The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. 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 . 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
Sepa
rate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements . Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.
Cer
tain eliminations have been made as prescri bed 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 except those representing balances between the governmental activities and the business -type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those 49 62
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
• Transfers in/Transfers out
The City applies all applicable GASB pronouncements including all Interpretations currently in effect.
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 expla in 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, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues an d 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 60 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 taxes, taxpayer -assessed tax revenues (sales taxes, transient occupancy taxes, etc.), licenses, grant revenues and earnings on investments. 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 i s removed from the combined balance sheet and revenue is recognized.
The City reports the following funds as major funds:
General Fund
The General Fund is the City's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities such as public safety, public ways and facilities, par�s and recreation services, and economic development services.
Impact Fee Fund
The Impact Fee Fund accounts for impact fees imposed on new development as permitted by law, and related impact remediation costs. Remediation costs are not accounted for within this fund, but are recorded as transfers to the Capital Projects Fund, where remediation project costs are accumulated.
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Notes to the Basic Financial Statements
June 30, 2021
FORA Dissolution Fund
The FORA Dissolution Fund is used to account for resources received from the Fort Ord Reuse Authority upon dissolution for Community Development and Habitat Management.
Abrams B Debt Service Fund
The Abrams B Debt Service Fund is used to account for resources restricted to retirement of Abrams B Bonds principal and interest and the payment of those debt obligations.
Additionally, the City reports the following nonmajor fund types of governmental funds:
Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted , committed or assigned to specific purposes other than debt service or capital projects.
Debt Service Funds
Debt service funds account for resources accumulated and restricted to pay debt service on long-term debt obligations.
Capital Project Funds
Capital project funds account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets in governmental funds.
Proprietary Funds
In the fund financial statements, proprietary funds are presented using the accrual basis of accounting .
Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered . In the fund financial statements, proprietary funds are presented using the “economic resources measurement focus”. This means all assets, deferred outflow s of resources, liabilities (whether current or noncurrent) and deferred inflow s of resources associated with their activities are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund . Exchange transactions are those in which each party receives and gives up essentially equal value . Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements.
The City has the following enterprise funds that have been reported as major:
Marina Municipal Airport Operating Fund
The Marina Municipal Airport Operating Fund is sued to account for all financial transactions relating to City's airport.
Preston Park Housing Fund
The Preston Park Housing Fund is used to account for the operations of the Preston Park apartments.
Abrams B Housing Fund
The Abrams B Housing Fund is used to account for the operations of the Abrams B apartments. 51 64
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Notes to the Basic Financial Statements
June 30, 2021
Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position.
The City reports the following fiduciary funds:
FORA Dissolution Administration Fund
The FORA Dissolution Administration Fund is used to account for the long- term debt and debt service issued by FORA prior to its dissolution which is administered by the City and held in Trust.
Successor Agency Private Purpose Trust Funds
The Successor Agency Private Purpose Trust Funds includes the Successor Agency Obligation Retirement Fund and the Successor Agency Housing Assets Fund. The Successor Agency was created as a result of the State order to dissolve California Redevelopment Agencies. These funds are used to track the activities by the Successor Agency Oversight Board and the City’s Department of Finance in relation to the remaining assets and liabilities of the Successor Agency. The Housing Successor is governed by the City of Marina City Council and is obligated to use the Housing Successor Agency’s assets according to Redevelopment law for low and moderate-income housing.
C. Cash, Cash Equivalents and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.
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. For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non- pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.
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 , Overall Credit Risk, Custodial Credit Risk, Concentrations of Credit Risk, and Foreign Currency Risk.
Other disclosures are specif ied 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), which has invested a portion of the pool funds in Structured Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset -Backed Securities are subject to market risk as to change in interest rates.
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June 30, 2021
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.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
• Market approach - This approach uses prices generated for identical or similar assets or liabilities.
The most common example is an investment in a public security traded in an active exchange such as the NYSE.
• Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures. • Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.
Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.
D. Restricted Cash and Investments
Certain restricted cash and investm ents are held by fiscal agents for the redemption of bonded debt, for acquisition and construction of capital projects, and to meet bond indenture debt reserve requirements. Cash and investments are also restricted for deposits held for others within the enterprise funds. Amounts held in Trust for FORA Dissolution Administration and Successor Agency obligations are also reported as restricted cash and investments.
E. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non- current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business -type activities are reported in the government-wide financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources. The City considers all trade and property tax receivables to be fully collectible and therefore no allowance for uncollectible accounts is considered necessary.
F. 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 ac counts have historically been immaterial and the direct write -off method does not result in a material difference from the allowance method.
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June 30, 2021
G. Loans Receivable
Repayments of outstanding loans are classified as a revenue source in the applicable funds when collected and expenditures in the years disbursed. The portion of loans receivable deemed to be unavailable have been offset by Unavailable Revenues in the accompanying financial statements , which is a part of deferred inflows of resources.
H. Prepa
id Expenses and Inventory
The
aviation fuel inventory held by the Airport is stated at cost using the first -in-first-out (FIFO) valuation method. Materials and supplies used by governmental funds are recorded as expenditures at the time they are purchased or obtained.
Pre
paid expenses are also recogniz ed under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid expenses in both government -wide and fund financial statements.
I. Cap
ital Assets
Capi
tal assets used in governmental fund operations, including infrastructure assets (i.e. roads, curbs, gutters, bridges, sidewalks, drainage systems, lighting systems, and other assets) are reflected in the government-wide financial statements, along with related depreciation. Capital assets are defined by the City as assets with an initial individual cost of more than $10,000 for equipment, $100,000 for buildings and improvements and $200,000 for infrastructure, and an estimated life in excess of 1 year. Purchased capital assets are valued at historical cost or estimated historical cost. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are valued at acquisition value on the date donated. Capital assets acquired under lease or purchase agreements are capitalized when the City accumulates an ownership equity in the assets acquired.
The p
urpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Dep
reciation is provid ed using the straight -line method whereby the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The City has assigned the useful lives of the assets which range from four to forty years.
Abrams Housing and Preston Par k Housing Proprietary Funds have 50- year leasehold interests in these housing developments. The leasehold is depreciated over those 50 years. The City of Marina remains the property owner of the Abrams and Preston Park Housing projects.
J. Defer
red Outflows/Deferred Inflows
In ad
dition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. 54 67
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Notes to the Basic Financial Statements
June 30, 2021
In addition to liabilities, the statement of financial position or balance sheet will sometimes repo rt a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
K. Interest Payable
In the government -wide and proprietary fund 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.
L. Compensated Absences
It City employees are granted vacation and sic k days in varying amounts based on classification and length of service. Upon termination or retirement, the City is to pay 100% of vacation and compensatory time off. Personal time off ( PTO) and sick leave is paid in accordance with the applicable employee Memorandum of Understanding (MOU) or individual employment contract. The City ’s liability for compensated absences is recorded at the City -wide level in the Statement of Net Position for Governmental Activities. The liability for compensated absences is determined annually, however such compensated absences payments are not distinguished from regular payroll paid during the fiscal year.
Compensated absences are liquidated by the fund that has recorded the liability. The long- term portion of governmental activities compensated absences is liquidated primarily by the General Fund because most City employees are paid from the General Fund.
M. Long-Term Obligations
In the government -wide financial statements and proprietary fund statements, long- term debt and other long-term obligations are reported as liabilities in the applicable governmental or business- type activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in year incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
N. Benefit Plans
Pension Expense
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) plans (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. 55 68
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June 30, 2021
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.
Other Postemployment Benefit (OPEB) Expense
For purposes of measuring the Total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense information about the fiduciary net position of the City’s Retiree Benefits Plan (the OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the OPEB Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period June 30, 2019 to June 30, 2020
O. 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
Nonspendable fund balance represents balances set aside to indicate items that do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed, or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for specific purpose.
Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed
Committed fund balances have constraints imposed by passage of a Resolution of the City Council which may be altered only by Resolution of the City Council. Encumbrances and nonspendable amounts subject to Council commitments are included along with spendable resources. The City considers Resolutions to be the highest level of action that can be taken by Council that constitutes the most binding constraint.
Assigned
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes encumbrances; nonspendable amounts, when it is the City ’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects, and Debt Service Funds, which 56 69
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Notes to the Basic Financial Statements
June 30, 2021
have not been restricted or committed. The City Council has delegated the authority to make assignments of fund balance to the City Manager and Finance Director.
Unassigned
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund defi cits, if any, of other governmental funds.
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 balanc es 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.
P. 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 are attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position
Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position."
The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.
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.
Q. Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers. 57 70
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Notes to the Basic Financial Statements
June 30, 2021
R. Property Taxes and Special Assessments
The County of Monterey levies, bills, and collects property taxes and special assessments for the City.
Property taxes levied are recorded as revenue when received.
Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls constitute a lien against the property, may be paid in two installments the first is due November 1st of the fiscal year and is delinquent if not paid by December 10th and the second is due on February 1st of the fiscal year and is delinquent if not paid by April 10 th. Unsecured personal property taxes do not constitute a lien against real property unless the tax becomes delinquent.
Property valuations are established by the Assessor of the County of Monterey for the secured and unsecured property tax rolls. Under the provisions of Article X IIIA of the State Const itution, properties are assessed at 100 % of purchase price or value in 1978 whichever is later. From this base assessment, subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.
Tax levy dates are attached annually on January 1st preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1st and ends June 30th of the following year. Taxes are levied on both real and unsecured personal property, as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.
S. Budgetary Information
The City adopts a budget annually for all governmental fund types. This budget is effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted at the fund level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The legal level of budgetary control is the fund level. The City Council may amend the budget by resolution during the fiscal year. The City Manager has the authority to make adjustments to the operating budget between departments within the same fund. Transfers of operating budgets between funds, use of unappropriated fund balances, and significant changes in capital improvement project budgets require the approval of the City Council. The City’s basis of budgeting is the same as GAAP.
T. Encumbrances
Under encumbrance accounting, purchase orders, contract and other commitments for expenditures are recorded in order to commit that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all funds. All appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re- appropriated and become part of the subsequent year’s budget pursuant to state regulations.
U. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.
Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental fund financial statements, receivables associated with non- 58 71
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exchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unavailable revenue.
V. 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.
W. Subsequent Events
Beginning in March 2020, the United States economy began suffering adverse effects from the COVID - 19 Virus Crisis ("CV19 Crisis"). Departmental expenditures are closely monitored as the pandemic continues and the City continues to practice safety protocol as required by the State and the County. At the date of the issuance of these financial statements, the future impact of the CV19 Crisis cannot be reasonably estimated.
X. Implementation of New Accounting Pronouncements
GASB Statement No. 84, Fiduciary Activities
Issued in January 2017, this statement establishes criteria for identifying fiduciary activities for accounting and financial reporting purposes and describes four fiduciary funds that should be reported, if applicable. The statement is effective beginning fiscal year 2021. The City continues to meet the fiduciary criteria by classifying activities related to the Successor Agency as a fiduciary fund. The City did not report any activities as custodial funds.
Y. Upcoming New Accounting Pronouncements
GASB issued Statement No. 87, Leases
Issued in June 2017, this statement establishes standards of accounting and financial reporting for leases by lessees and lessors. It provides guidance on accounting trea tment of lease assets, lease liability, short- term leases, certain regulated leases, measurement for leases other than short -term leases and contracts that transfer ownership, subleases, lease- leaseback transactions, intra- entity leases, and leases between related parties. The statement will be effective beginning fiscal year 2022. The City is in the process of determining the impact this Statement will have on the financial statements.
GASB Statement No. 91, Conduit Debt Obligations
Issued in May 2019, this statement provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The statement will be effective beginning fiscal year 2023. The City is in the process of determining the impact this Statement will have on the financial statements.
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June 30, 2021
GASB Statement No. 92, Omnibus 2020
Issued in January 2020, this statement was issued for clarity and consistency by addressing practice issues identified from the implementation and application of certain GASB statements. The statement will be effective beginning fiscal year 2022 . The City is in the process of determining the impact this Statement will have on the financial statements.
GASB Statement No. 93, Replacement of Interbank Offered Rates
Issued in March 2020, this statement is to address accounting and financial reporting implications that result from the replacement of an interbank offered rate (IBOR) such as the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021. The statement will be effective beginning fiscal year 2022. The City is in the process of determining the impact this Statement will have on the financial statements.
GASB Statement No. 94, Public-Private Partnerships and Public-Public Partnerships and Availability Payment Arrangements
Issued in March 2020, this statement is to improve financial reporting by establishing the definitions of public-private and public -public partnership arrangements (PPPs) and available payment arrangement (APAs) and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. The statement will be effective beginning fiscal year 2023. The City is in the process of determining the impact this Statement will have on the financial statements.
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NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2021, cash and investments were reported in the financial statements as follows:
G overnm ental
Activities
Business-Type
Activities Total
Cash and investm ents 70,209,464$ 12,291,178$ 6,200,172$ 88,700,814$ Restricted cash and investments 1,189,709 - 11,834,439 13,024,148 Total cash and investments 71,399,173$ 12,291,178$ 18,034,611$ 101,724,962$ G overnm ent Wide
Statement of Net Position Fiduciary Funds
Statement of Net
Pos ition
Cash and investments consisted of the following as of June 30, 2021:
Deposits:
Cash on hand 5, 900$
Cash with fiscal agents 10,159,741
Cash in banks 2,510,174
Total deposits 12,675,815
Investm ents:
Local Agency Investm ent Fund 70,911,359
US Treasurey obligations 5,113,640
Total investm ents 76,024,999
Total City Treasury 88,700,814
Restricted cash and investments:
Local Agency Investm ent Fund 502,830
Money m arket funds 451,270
Cash in banks 235,609
Cash with fiscal agent 11,834,439
Total restricted cash and investments 13,024,148
Total cash and investments 101,724,962$
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 mu st 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 Deposit Insurance Corporation (FDIC).
The bank balances before reco nciling items totaled $ 2,724,469 at June 30, 2021 and were different from carrying amounts due to deposits in t ransit and outstanding checks. The amount uninsured w as $2,474,469, which was collateralized by securities held by pledging financial institutions. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by 61 74
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June 30, 2021
fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period- end cash and investment balances.
Interest income from cash and investments with fiscal agents is credited directly to the related fund.
B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques with 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.
C. Investment Policies
City Investment Policy
Under the provisions of the City 's investment policy, and in accordance with California Government Code, the following investments are authorized:
M aximu m
Maturity
Minimum
Credit
Qu
ality
M aximu m
Percentage of
Po
rtfolio
M aximu m
Investm ent
in
One Issuer
U.S. Treasury Bills, Notes and Bonds (A) N/A N o Limit No Limit U.S. G overnm ent-Sponsored Enterprise Agencies:
G overnm ent National Mortgage Association 5 years N/A No Limit No Limit Federal National Mortgage Association 5 years N/A No Limit No Limit Federal Home Loan Mortgage 5 years N/A No Limit No Limit Corporation Federal Hom e Loan Bank 5 years N/A No Limit No Limit Banker's Acceptances 180 days N/A 30% One Commercial
Bank
Certificates of Deposit 5 years N/A 1 5% (B)
Commercial Paper 270 days N/A 15% Highest Rating
by an NRSRO*
Commercial Paper 31 days N/A 30% Highest Rating
by an NRSRO*
Corporate Notes 5 years N/A 30% No Limit
Mutual Funds N/A N/A 20% Highest Rating
by an NRSRO*
Reverse Repurchase Agreements 92 days N/A 20% No Limit
Repurchase Agreements 1 year N/A No Limit No Limit
California Local Agency Investm ent Fund N/A N/A No Limit $40,000,000 per account
(A) Max im um m aturities of 5 years or greater with specific City Council approval (B) $250,000 unless collateralized by eligible securities as provided by California G overnm ental Code Sections 53651 and 53652.
* Nationally Recognized Statistical Rating Organization Authorized Investm ent Type
62 75
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
Under the provisions of the City 's investment policy, and in accordance with California Government Code, the following investments are authorized:
Under the terms of certain debt issuances, the City must maintain required amounts of cash and investments with trustees or fiscal agents. These funds are unexpended bond proceeds or are pledged as reserves to be u sed if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinance, bond indentures or State statute. The table below identifies the investment types that are authori zed for investments with fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. The table also identifies certain provisions of these debt agreements:
M aximu m
Maturity
Minimum
Credit Quality
U.S. Treasury Obligations None N/A
U.S. Agency Obligations None N/A
U.S. G overnm ent-Sponsored Agency Obligations None N/A State Obligations:
General Obligation None A
G eneral Short-Term Obligation None A-1+
Special Revenue Bonds None AA
Pre-Refunded Municipal Obligation None AAA
Unsecured Certificates of Deposit 30 days A-1
FDIC-Insured Deposit None N/A
Repurchase Agreements None A
Commercial Paper 270 days Three highest categories
Bankers' Acceptances (A) A-1
Money Market Mutual Funds None Three highest categories Investment Agreement None N/A
Tax -Ex em pt Obligations None Three highest categories State of California- Local Agency Investm ent Fund None N/A (A) Max im um m aturities of 5 years or greater with specific City Council approval Authorized Investm ent Type
The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year -end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the City’s practice is to buy and hold investments until maturity dates. Consequently, the City ’s investments are carried at fair value.
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City of Marina
Notes to the Basic Financial Statements
June 30, 2021
D. External Investment Pool
The City's investments with LAIF at June 30, 2021 , 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/.
D. 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. One of the ways that the City's interest rate ris k is mitigated is by purchasing a combination of shorter term 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 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 s tatistical rating organization. With the exception of U.S. Treasury obligations and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. As of June 30, 2021, the City ’s investments were in compliance with the ratings required by the City ’s investment policy and Government Code. U.S. Treasury obligations totaling $ 5,113,640 were rated Aaa by Moody’s and amounts held by bond trustees in money market accounts were rated AAA my S&P and Aaa by Moody’s.
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, 2021, the City had no investments in any one issuer (other than U.S. Treasury obligations 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 and the City 's investment policy do not 64 77
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
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 no t apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).
As of June 30, 2021, the City’s investments had the following maturities:
12 Months
or Les s 1-5 years Fair Value
Fair V alue
Input Levels
Local Agency Investm ent Fund 70,911,359$ -$ 70,911,359$ n/a US Treasury obligations 5,113,640 - 5,113,640 Level 1 Held by bond trustee:
Money m arket funds 451,270 - 451,270 Level 2 Total Investm ents 76,476,269$ -$ 76,476,269$
Investm ent Type
Maturity
NOTE 3 - LOANS RECEIVABLE
The City has engaged in programs designed to encourage construction or improvement of low -to- moderate income housing or other projects. Under these programs, grants or loans are provided under favorable terms to homeowners who agree to spend these funds in accordance with the City's terms. The balances of these loans arising from these business and housing programs at June 30, 2021 were $596,144. The loans have varying maturity dates and interest rates, depending on loan agreements. The balance of the notes receivable have been offset in the fund financial statements by deferred inflows of resources as they are not deemed measurable and available within 60 days, except for those loans that have current payment activity. The loans were fully reserved for in the Statement of Net Position.
The City has a loan program for developers for impact fees and engineering fees imposed by the City. At June 30, 2021 the City had $183,634 in loans receivable outstanding. These loans are offset in the fund financial statements by deferred inflows of resources.
NOTE 4 - INTERFUND TRANSACTIONS
Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that are to be repaid in their entirety over several years.
On November 1, 2006, the Marina Joint Powers Financing Authority issued $14,360,000 revenue bonds for the purpose of financing a loan in the same amount to the Abrams -B Non -Profit Corporation.
Simultaneously, the corporation paid the entire $14,360,000 back to the City of Marina, to pay loan costs and to acquire a 50- year leasehold int erest in the Abrams -B Apartments housing project. Also simultaneously, the City paid that cash to The Fort Ord Reuse Authority to purchase the Abrams -B property. Monthly note payments are made by the corporation to the City according to an original amortization schedule which was subsequently revised on November 15, 2016, at a lower interest rate, resulting is smaller monthly payments. Payments on the note are structured to be sufficient for the bond trustee to pay semi- annual principal and interest on the revenue bonds. Bond payments are made semiannually and will be fully re-paid in 2036. The balance of the loan was $9,302,500 at June 30, 2021.
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City of Marina
Notes to the Basic Financial Statements
June 30, 2021
As of June 30, 2021, inter-fund receivables and payables consisted of the following:
Advances to Advances from
Fund Other Funds Other Funds
Abrams B Debt Service Fund 9,302,500$ -$
Abrams B Housing Fund - 9,302,500
Total advances 9,302,500$ 9,302,500$
Transfers In/Out
With Council approval resources may be transferred from one fund to another. The following summarizes transfers between funds during the fiscal year ended June 30, 2021:
Fund Transfer in Tr ansfer out
General Fund 148,102$ 2,728,500$
Impact Fee Fund - 755,000
Nonmajor Governmental Funds 5,673,743 1,506,302
Marina Municipal Airport Fund 12,000 844,043
Successor Agency Obligation Retirement - 196,502 Successor Agency Housing Assets 196,502 -
Total Transfers 6,030,347$ 6,030,347$
Intra-Fund Transfers In/Out
The following table represents intra-fund transfers made during the fiscal year ended June 30, 2021:
Fund Transfer in Tr ansfer out
General Fund -$ 1,581,000$
Vehicle & Equipment Replacement Fund 1,131,000 -
Pension Stabilization Fund 450,000 -
Total Eliminations 1,581,000$ 1,581,000$
Intra-fund transfers are eliminated for presentation in the fund financial statements.
66 79
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
NOTE 5 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2021:
Balance Balance
Governmental Activities July 1, 2020 Additions Deletions June 30, 2021 Non-depreciable:
Land 22,080,651$ -$ -$ 22,080,651$ Total Non-Depreciable 22,080,651 - - 22,080,651 Depreciable:
Buildings and improvements 50,044,803 153,082 - 50,197,885 Equipment 8,502,426 725,951 - 9,228,377 Infrastructure 35,332,018 2,432,615 - 37,764,633 Total Depreciable 93,879,247 3,311,648 - 97,190,895 Less Accumulated Depreciation for:
Buildings and improvements (18,868,534) (1,172,757) - (20,041,291) Equipment (6,855,551) (412,907) - (7,268,458) Infrastructure (5,856,096) (887,609) - (6,743,705) Total Accumulated Depreciation (31,580,181) (2,473,273) - (34,053,454) Total Depreciable Capital Assets - Net 62,299,066 838,375 - 63,137,441 Total Governmental Capital Assets 84,379,717$ 838,375$ -$ 85,218,092$
Depreciation expense for governmental activities was charged to the following programs during the year:
General government 949,566$
Public safety 406,002
Public works 67,810
Economic & community development 983,225
Recreation & cultural services 66,670
Total depreciation expense 2,473,273$
Capital assets for business-type activities consisted of the following as of June 30, 2021:
Balance Balance
Business Type Activities July 1, 2020 Additions Deletions June 30, 2021 Non Depreciable
Land 36,900,000$ -$ -$ 36,900,000$ Total Non-Depreciable 36,900,000 - - 36,900,000 Depreciable:
Leasehold interest 48,783,242 - - 48,783,242 Buildings 9,295,040 195,402 - 9,490,442 Improvements (airport and runway) 14,540,399 267,347 - 14,807,746 Equipment 323,135 - - 323,135 Total Depreciable 72,941,816 462,749 - 73,404,565 Less Accumulated Depreciation
Leasehold interest (7,010,795) (975,665) - (7,986,460) Buildings (5,409,875) (277,548) - (5,687,423) Improvements (airport and runway) (8,731,251) (439,050) - (9,170,301) Equipment (279,899) (25,654) - (305,553) Total Accumulated Depreciation (21,431,820) (1,717,917) - (23,149,737) Total Depreciable Capital Assets - Net 51,509,996 (1,255,168) - 50,254,828 Total Business Type - Capital Assets 88,409,996$ (1,255,168)$ -$ 87,154,828$ 67 80
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
NOTE 6 - NONCURRENT LIABILITIES
The City's noncurrent liabilities consisted of the following as of June 30, 2021:
Due
Beginning Adjustm ent/ Ending Within One
Long-term Liabilities Balance Additions Deletions Balance Y ear Gov ernmental Activ ities:
2015 G eneral Obligation Refunding Bonds 6,970,000$ -$ (260,000)$ 6,710,000$ 280,000$ 2016 Abram s B Housing Revenue Bonds 10,005,000 - (440,000) 9,565,000 450,000 Capital Leases 508,464 276,393 (188,516) 596,341 237,487 Net Pens ion Liabilities 20,787,954 9,763,070 (7,599,679) 22,951,345 - Total OPEB Obligation 4,834,191 2,287,610 (458,586) 6,663,215 - Compensated Absences 1,544,477 36,803 - 1,581,280 395,320 Total G overnmental Activities 44,650,086$ 12,363,876$ (8,946,781)$ 48,067,181$ 1,362,807$ Business-Type Activ ities
Berkeley Capital Loan 35,950,000$ -$ -$ 35,950,000$ -$ Total Business-Type Activities 35,950,000$ -$ -$ 35,950,000$ -$ Fiduciary Funds:
Tax Allocation Bonds:
FORA Series 2020 30,705,000$ -$ -$ 30,705,000$ 1,260,000$ RDA SA, Series 2000A 375,000 - (25,000) 350,000 30,000 RDA SA, Series 2018A 6,535,000 - (215,000) 6,320,000 225,000 RDA SA, Housing Series 2018B 6,225,000 - (205,000) 6,020,000 215,000 RDA SA, Series 2020A - 4,790,000 - 4,790,000 - RDA SA, Housing Series 2020B - 4,950,000 - 4,950,000 130,000 Subtotal Tax Allocation Bonds 43,840,000 9,740,000 (445,000) 53,135,000 1,860,000 Bond discounts (214,935) - - (214,935) - Bond prem ium s 1,137,952 852,545 (115,707) 1,874,790 - Total Fiduciary Funds 44,763,017$ 10,592,545$ (560,707)$ 54,794,855$ 1,860,000$
2015 General Obligation Refunding Bonds
In May 2015, the City issued $7,640,000 General Obligation Bonds for the purpose of refunding $7,885,000 of the City's General Obligation Bonds, Election of 2002, Series 2005 which was issued for the purpose of constructing and supplying a library facility in the City. The bonds bear interest at 1.5 % to 5%. The bonds mature in August 2035. Principal payments of $85,000 to $605,000 are due annually on August 1. Interest payments are due semi-annually on February 1 and August 1. The Bonds are subject to an early redemption at par at the option of the City after August 2025.
68 81
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
The City accounts for the bonds in its governmental activities and uses taxes and assessments reported in a debt service fund to fund the principal and interest payments. Future debt service payments are as follows:
Fiscal Y ear Ending June 30: Principal Interest Total
2022 280,000$ 233,281$ 513,281$
2023 295,000 227,531 522,531
2024 315,000 216,706 531,706
2025 340,000 200,332 540,332
2026 370,000 182,581 552,581
2027-2031 2,280,000 667,271 2,947,271 2032-2036 2,830,000 249,803 3,079,803 Total 6,710,000$ 1,977,505$ 8,687,505$
Remarketed 2016 Abrams B Housing Revenue Bonds
In November 2006, the City issued $14,360,000 Multi-family Housing Revenue Bonds for the purpose of financing the acquisition of the Abrams B Apartments. These bonds were remar keted in November 2016.
The bonds bear interest at 0.95% to 3.55%. The bonds mature in November 2036. Principal payments of $110,000 to $160,000 are due annually on November 1. Interest payments are due semi -annually on May 1 and November 1. Beginning on November 15, 2023, the bonds have an optional redemption price of 102%, declining to 101% on November 15, 2024, and at par on November 15, 2025 and thereafter.
The City accounts for the bonds in its governmental activities and accounts for the revenue debt service in the Abrams B Debt Service Fund. Future debt service payments are as follows:
Fiscal Y ear Ending June 30: Principal Int erest Total
2022 450,000$ 285,280$ 735,280$
2023 465,000 277,723 742,723
2024 475,000 268,905 743,905
2025 490,000 258,888 748,888
2026 505,000 247,813 752,813
2027-2031 3,165,000 982,978 4,147,978 2032-2036 3,615,000 435,445 4,050,445 2037 400,000 7,100 407,100
Total 9,565,000$ 2,764,132$ 12,329,132$
Capital Leases
In July 2018, the City entered into a lease agreement in the amount of $663,156 at 4.52% to finance the purchase of radio equipment. Annual principal and interest payments of $185,348 are due through July 2022.
In 2020, the City entered into a lease agreements totaling $277,704 to finance the purchase of vehicles .
Annual principal and interest payments of $68,114 are due through fiscal year 2025.
69 82
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
The City accounts for the leases in its governmental activities and uses resources reported the General Fund to pay the principal and interest payments. Future debt service payments are as follows:
Fiscal Y ear Ending June 30: Principal Int erest Total
2022 237,487$ 15,974$ 253,461$
2023 245,294 8,167 253,461
2024 68,114 - 68,114
2025 45,446 - 45,446
Total 596,341$ 24,141$ 620,482$
Equipment and related accumulated amortization under the capital lease are as follows:
Leased Equipm ent 940,860$
Accumulated Amortization (462,654)
Net Book V alue 478,206$
Business-Type Activities
Preston Park Loan
On January 7, 2016, the Preston Par k Sustainable Community Non-profit Corporation entered into a loan agreement in the amount of $35,950,000 at 4.15 % to finance the costs of acquisition of a leasehold interest in property of Preston Park Apartments. The loan is a full -term interest only loan with the entire principal balance due on February 1, 2026. Interest payments are made through January of 2026 without an early redemption option. Future debt service payments are as follows:
Fiscal Y ear Ending June 30: Principal Interest Total
2022 -$ 1,512,646$ 1,512,646$
2023 - 1,512,646 1,512,646 2024 - 1,516,790 1,516,790 2025 - 1,516,790 1,516,790 2026 35,950,000 1,011,194 36,961,194
Total 35,950,000$ 7,070,066$ 43,020,066$
Fiduciary Fund Tax Allocation Bonds
Fort Ord Reuse Authority (FORA) Tax Allocation Bonds, Series 2020 In June 2020, the FORA issued $30,705,000 of tax allocation bonds, Series 2020. The proceeds of the Series 2020 bonds w ill be used to fund building removal costs for various public agencies related to property formerly included in the Fort Ord Military Base, provide funds to satisfy an obligation of the Authority to CalPERS, set -up debt service reserves, set -up administrative accounts, pay insurance premiums related to the bonds and cover bond issuance costs The bonds bear annual interest at 1.151% to
3.307%. Principal and interest is paid semi -annually on March 1st and September 1st. The bonds mature September 1, 2037 in amounts ranging from $1,260,000 to $1,765,000.
Tax Allocation Bonds, Neeson Road
In November 2000, the former RDA issued $700,000 of tax allocation bonds, Series A. The proceeds of the 2000 Series A bonds issued were used fund infrastructure redevelopment activities at the Marina Airport. The bonds bear annual interest at 4.75 %. The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is paid semi-annually, on January 1st and July 1st. Principal is paid in annual installments beginn ing January 1, 2018 and maturing January 1, 2031 in amounts ranging from $10,000 to $45,000.
70 83
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
Tax Allocation Bonds, 2018 Series A (Taxable) and Series B (Tax Exempt) In 2018, the former RDA issued $4,750,000 of tax allocation bonds, Series A (Taxable) and Series B (Tax Exempt). A total of $6,905,000 of Series A bonds were issued and $6,585,000 of Series B bonds. The proceeds of the 2018 Series A bonds issued were used to ma ke payment on a promiss ory note and agreement, dated August 5, 2008 of the former Marina Redevelopment Agency for the benefit of Marina Community Partners.
The bonds bear annual interest at 5 %. The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is annually, due on Septembe r 1st. Principal is paid in annual installments beginning September 1, 2018 and ending September 1, 2038 in amounts ranging from $165,000 to $515,000. The proceeds of the 2018 Series B bonds issued were used to repay a significant portion of the loans from the City of Marina to the Agency. The bonds bear annual interest at 5% . The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is annually, due on September 1st. Principal is paid in annual installments beginning September 1, 2018 and ending September 1, 2038 in amounts ranging from $165,000 to $515,000.
Tax Allocation Bonds, Series 2020A
In August 2020, the former RDA issued $4,790,000 of tax allocation bonds, Series 2020A. The proceeds of the 2020 Series A bonds issued were used to mak e payment on the aforementioned promissory note and agreement, dated August 5, 2008 of the former Marina Redevelopment Agency for the benefit of Marina Community Partners. The bonds bear annual interest at 4.00% . The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is paid semi-annually, on March 1st and September 1st. Principal is paid in annual installments beginning September 1, 2022 and maturing September 1, 2035.
Housing Tax Allocation Bonds, Series 2020B
In August 2020, the former RDA issued $4,950,000 of housing tax allocation bonds, Series 2020B. The proceeds of the 2020 Series B bonds issued were used to ma ke payment on the aforementioned promissory note and agreement, dated August 5, 2008 of the former Marina Redevelopment Agency for the benefit of Marina Community Partners. The bonds bear annual interest at 4.00 %. The bonds were issued in fully registered form without coupons in denominations of $ 5,000. Interest is paid semi - annually, on March 1st and September 1st. Principal is paid in annual installments beginning September 1, 2021 and maturing September 1, 2040.
The annual debt service requirements for the Tax Allocation Bonds are as follows:
Fiscal Y ear Ending June 30: Principal Int erest Total
2022 1,860,000$ 1,987,508$ 3,847,508$
2023 2,130,000 1,795,899 3,925,899
2024 2,190,000 1,742,933 3,932,933
2025 2,245,000 1,685,228 3,930,228
2026 2,335,000 1,622,487 3,957,487
2027-2031 15,065,000 6,823,615 21,888,615 2032-2036 15,325,000 4,115,898 19,440,898 2037-2041 11,985,000 1,309,262 13,294,262 Total 53,135,000$ 21,082,830$ 74,217,830$
The Successor Agency fiduciary funds account for activity of the Successor Agency of the Marina Redevelopment Agency. In 2012, the State of California dissolved Redevelopment Agencies and created 71 84
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
Successor Agencies to extinguish debts of the Redevelopment Agencies. The Marina Successor Agency is required by a Development and Disposition Agreement ( DDA) to issue debt to repay the Dunes Corporation amounts owed in the DDA. This debt is fully funded by a commitment from the State of California as specified in the Dissolution Act.
NOTE
7 - RISK MANAGEMENT
The C
ity is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City obtains insurance coverages.
The C
ity purchases liability, property, errors and omissions, and wor kers' compensation insurance from the Monterey Bay Area Self Insurance Authority (MBASIA), a risk-sharing program. Under this program, coverage is provided for up to a maximum of $29,000,000 for each general liability claim less the City's deductible of $10,000. Statutory coverage is provided for wor kers' compensation claims. The City is assessed a contribution to cover claims, operating costs, and claim settlement expenses based upon an actuarially determined rate for each coverage layer pool Additional cash contributions may be assessed on the basis of adverse loss experience. If the events of the year result in a negative risk position, the members' annual assessment may be increased in subsequent years. The City is unable to reasonably estimate the probability of MBASIA ending the year in a negative risk position. Refunds to members may be made if funds are determined to be surplus as a result of an actuarial study.
The C
ity currently r eports liability ris k management activities in the general fund. Claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. W orkers compensation insurance costs are allocated to various departments proportionate to their total payroll. For the year ended June 30, 2021, the City paid a total of $1,428,180 to MBASIA for insurance coverage; $485,908 and $942,272 for liability and wor kers compensation insurance, respectively and did not receive a rebate from the program. There were no material unpaid and uninsured claims outstanding at the beginning or end of the last two fiscal years.
NOTE
8 - RETIREMENT PLANS
Gene
ral Information about the Pension Plans
Pla
n Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost- Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68 .
Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors three miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
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City of Marina
Notes to the Basic Financial Statements
June 30, 2021
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 ye ars of total service are eligible to retire at age 50 ( age 52 for Miscellaneous Plan members if membership date is on or after January 1, 2013 ) with statutorily reduced benefits. All members are eligible for non -duty disability benefits after 5 years of service. The death benefit is one of the following: the Special Death Benefit (Safety only), the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specif ied by the Public Employees ’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:
Tier 1 PEPRA
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 Y ears 5 Y ears
Benefit payments Monthly for Life Monthly for Life
Retirement age 55 62
Monthly benefits as a
% of eligible com pensation 2.00% 2.00%
Required em ployee contribution rates 7.000% 6.750%
Required em ployer contribution rates 11.031% 7.732%
Miscellaneous
Tier 1 PEPRA
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 Y ears 5 Y ears
Benefit payments Monthly for Life Monthly for Life
Retirement age 50 57
Monthly benefits as a
% of eligible com pensation 3.00% 2.70%
Required em ployee contribution rates 9.000% 13.000%
Required em ployer contribution rates 23.674% 13.044%
Safety
Employees Covered
At June 30, 2021, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety
Ac
tive 46 51
Transferred 14 36
Separated 29 17
Retired 72 78
Total 161 182
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 73 86
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
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, 2021, the City’s contributions were as follows:
Miscellaneous 809,660$
S
afety 2,075,458
Total Em ployer Contributions 2,885,118$
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City reported a net pension liability for its proportionate share of the net pension liabilities as follows:
Misc ellaneous
Safety
Tot
al
Proportionate Share
of Net Pension
Lia
bility/(Asset)
$ 6,846,483
16,104,861
$ 22,951,345
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 Plan s are measured as of June 30, 2020, 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, 2019 rolled forward to June 30, 2020 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 e mployers, actuarially determined.
The City’s proportionate share of the net pension liability for the Plans as of June 30, 2020 and 2020 was as follows:
Miscellaneous Safety Combined Plans
Proportion - June 30, 2020 0.15555% 0.23322% 0.20287%
Proportion - June 30, 2021 0.16231% 0.24173% 0.21094%
Change - Increase/(Decrease) 0.00677% 0.00850% 0.00807%
For the year ended June 30, 2021, the City recognized pension expense of $4,684,449.
74 87
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Miscellanous Plan
Deferred
Outflows of
Re
sources
Deferred
Inflows of
Re
sources
Changes of Assumptions -$ 48, 832$
Differences between Expected and Actual Experience 352,820 - Differences between Projected and Actual Investment Earnings 203,386 - Differences between Employer's Contributions and
Proportionate Share of Contributions - 260,258 Change in Employer's Proportion 321,716 -
Pension Contributions Made Subsequent to Measurement Date 809,660 - Total 1,687,581$ 309, 090$
Safety Plan
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions -$ 53,646$
Differences between Expected and Actual Experience 1,248,850 - Differences between Projected and Actual Investment Earnings 350,026 - Differences between Employer's Contributions and
Proportionate Share of Contributions 56,354 496,893 Change in Employer's Proportion 630,980 -
Pension Contributions Made Subsequent to Measurement Date 2,075,458 - Total 4,361,668$ 550,539$
Miscellanous and Safety Plan
Deferred
Outflows of
Re
sources
Deferred
Inflows of
Re
sources
Changes of Assumptions -$ 102, 477$
Differences between Expected and Actual Experience 1,601,670 - Differences between Projected and Actual Investment Earnings 553,412 - Differences between Employer's Contributions and
Proportionate Share of Contributions 56,354 757,151 Change in Employer's Proportion 952,695 -
Pension Contributions Made Subsequent to Measurement Date 2,885,118 - Total 6,049,249$ 859, 628$
The City reported $2,885,118 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2022.
75 88
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Safety Total
75,
712$ 565,505$ 641,216$
199,648 591,467 791,115
195,922 403,317 599,239
97,549 175,383 272,932
- - -
- - -
568,831$ 1,735,672$ 2,304,502$
Fiscal Year
Ending June 30:
Deferred Outflows/(Inflows) of Resources
Total
2023
2024
2025
Thereafter
2026
2022
Act
uarial Assumptions
The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase (1)
Investment Rate of Return 7.15% (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 Discount Rate
The discount rate used to measure the total pension liability was 7.15% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the 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 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 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.
76 89
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
The long-term expected rate of return on pension plan investments was determined using a building block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long- term expected rate of return, CalPERS took into account both short -term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected com pound 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 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 rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using t he capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.
Assumed Asset Real Return Re al Return
Asset Class (a) Alloc ation Years 1 - 10 (b) Years 11+ (c) Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a) In the System's ACFR, Fixed Income is included in Global Debt Securities; Liquidity Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period.
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:
Miscellaneous Safety Combined
1% Decrease 6.15% 6.15% 6.15%
Net Pension Liability 10,647,176$ 24,298,978 34,946,154 Current 7.15% 7.15% 7.15%
Net Pension Liability 6,846,483$ 16,104,862 22,951,345 1% Increase 8.15% 8.15% 8.15%
Net Pension Liability 3,706,090$ 9,380,815 13,086,905 77 90
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
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 D
escription
The City of Marina participates in the California Public Employees Retirement System ( CalPERS), a cost-sharing multiple employer public employee defined benefit pension plan. CalPERS provides post - employment medical insurance benefits to retirees and their spouses who meet plan eligibility requirements in accordance with their labor agreement. The City provides health care benefits for all retired employees based on retirement age of 50 with 5 years of service. Retirees can enroll in any of the available CalPERS medical plans and the benefits continue for the life of the retiree and surviving spouse.
The City contributes the minimum amount provided under Government Code Section 22825 of the Public Employees Medical and Hospital Care Act. Retirees must p ay any premium amounts in excess of the City's contribution. For each bargaining unit, the minimum amount the City contributes is pro- rated over the 20-year period starting from that unit's CalPERS coverage.
The C
ity has authority to establish and amend the Plan's benefit terms and financing requirements to the City Council. No assets are accumulated in a trust that meets all of the criteria in GASB statement No. 75 Paragraph 4. There are no separate financial statements issued for the OPEB plan.
Emp
loyees Covered by Benefit Terms
At June 30, 2021, the benefit terms covered the following employees:
Active employees 82
Inactive employees 23
Dep
endents of Retirees 11
Total covered 116
Contributions
The City makes contributions based on a pay-as- you go basis as approved by the authority of the City’s Board. Total benefit payments included in the measurement period were $7 3,360 while actual contributions for the fiscal year were $80,621. The actuarially determined contribution for the measurement period was $ 468,831. The City’s contributions were .88% of covered employee payroll during the fiscal year ended June 30, 2021. 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. 78 91
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
Actuarial Assumptions
The following summarized the actuarial assumptions for the OPEB plan included in this fiscal year:
Valuation Date: June 30, 2019
Measurement Date: June 30, 2020
Actuarial Cost Method: Entry-Age Normal Cost Method
Amortization Period: 20 years
Asset Valuation Method:
Actuarial Assumptions:
Discount Rate 2.21%
Inflation 2.26%
Salary Increases 3.25%
Healthcare Trend Rate
Mortality
Service Requirement 100% at 5 Years of Service
Retirement:
Hired before January 1, 2013
Hired on or after January 1, 2013:
**Discount rate decreased in 2021 from 3.5% to 2.2%
2% @55 Rates for Miscellaneous Employees
3% @50 for Police and Fire
2% @62 for Miscellaneous Employees.
2.7% @57 for Police and Fire.
Level percentage of payroll, closed
CalPERS 2017 Mortality
4.25%
Discount Rate
The discount rate was based on the Bond Buyer 20-bond General Obligation Index.
Total OPEB Liability
The City's Total OPEB liability was measured as of June 30, 20 20 (measurement date) and was determined by an actuarial valuation as of June 30, 2019 (valuation date) for the fiscal year ended June 30, 2021 (reporting date).
79 92
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
Changes in the Total OPEB Liability
The following summarizes the changes in the Total OPEB liability during the year ended June 30, 2021:
Fiscal Year Ended June 30, 2021
(Measurement Date June 30, 2020)
Total OPEB
Liability
Plan
Fiduciary Net
Position
Net OPEB
Liability
(Asset)
Balance at June 30, 2020 4,834,191$ -$ 4,834,191$ Service cost 264,281 - 264,281 Interest in Total OPEB Liability 177,174 - 177,174 Balance of diff between actual and exp experience (5,518) - (5,518) Balance of changes in assumptions 1,466,447 - 1,466,447 Benefit payments (73,360) - (73,360) Net changes 1,829,024 - 1,829,024 Balance at June 30, 2021 6,663,215$ -$ 6,663,215$ Covered Employee Payroll 8,315,617$
Total OPEB Liability as a % of Covered Employee Payroll 80.13% Service Cost as a % of Covered Employee Payroll 3.18%
Net OPEB Liability as a % of Covered Employee Payroll 80.13%
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, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Def er r ed
Outflows of
Re
sour ces
Def er r ed
Inflows of
Re
sour ces
Difference between actual and expected experience 261,018$ -$ Change in assumptions 300,938 -
OPEB contribution subsequent to measurement date 80,621 - Totals 642,577$ -$
Of the total amount reported as deferred outflows of resources related to OPEB, $ 80,621 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 net OPEB liability in the year ended June 30, 2022.
80 93
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended June 30,
2022 (2,778)$
2023 (2,778)
2024 (2,778)
2025 (2,778)
2026 60,824
Thereafter 512,244
Total 561,956$
OPEB Expense
The following summarizes the OPEB expense by source during the year ended June 30, 2021:
Service cost 264,281$
Interest in TOL 177,174
Difference between actual and expected experience 38,069 Change in assumptions (40,847)
OPEB Expense 438,677$
The following summarizes changes in the Total OPEB liability as reconciled to OPEB expense during the year ended June 30, 2021:
6,663,215$
(4,
834,191)
1,829,024
Changes in deferred outflows (264,612)
Changes in deferred inflows (1,206,356)
Employer contributions and implicit subsidy 80,621
OPEB Expense 438,677$
Net OP EB liability ending
Net OP EB liability beginning
Change in net OP EB liability
Sensitivity to Changes in the Discount 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 discount rate that is one percentage point lower or one percentage point higher, is as follows:
(1% Decr ea se ) 2.21% (1% Increase )
Net OPEB Liability (Asset) 8,261,895$ 6,663,215$ 5,467,170$ Discount Rate
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 81 94
City of Marina
Notes to the Basic Financial Statements
June 30, 2021
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:
(1% Decr ea se ) 4.25% (1% In crease )
Net OPEB Liability (Asset) 5,348,520$ 6,663, 215$ 8,447,915$ Trend Rate
NOTE 10 - COMMITMENTS AND CONTINGENCIES
Law
suits
The City is subject to certain matters of litigation that may arise in the normal course of conducting City business. City management believes, based upon consultation with legal counsel, 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.
Feder
al 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 Uniform Guidance and applicable State requirements. 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.
Defer
red Compensation
The City offers its employees two deferred compensation plans created in accordance with California Code Section 53212 and Internal Revenue Code Section 457 under which employees can defer a portion of their salary until future years. The deferred compensation plan money is a deduction from the employees' salary and is invested with independent retirement trustees. The trustees hold the amounts deferred and any related income on behalf of employees. The assets and li abilities of these plans have been excluded from the accompanying financial statements. 82 95
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REQUI
RED SUPPLEMENTARY INFORMATION
84 97
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85 98
City of Marina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2021
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and assessments 16,392,500$ 18,493,317$ 20,988,247$ 2,494,930$ Licenses, permits and fees 108,500 108,500 2,446,456 2,337,956 Fines and forfeitures 163,050 163,050 95,186 (67,864) Intergovernmental 618,700 1,695,891 1,626,524 (69,367) Charges for services 2,537,230 2,539,230 3,802,810 1,263,580 Investment earnings 275,000 275,000 323,971 48,971 Other revenue 65,440 70,440 466,679 396,239 Total Revenues 20,160,420 23,345,428 29,749,873 6,404,445
EXPENDITURES
Current:
General government 4,665,870 5,738,470 6,689,562 (951,092) Public safety 11,886,980 13,159,786 12,046,544 1,113,242 Public works 1,494,750 1,608,450 1,687,981 (79,531) Economic & community development 2,388,477 2,511,371 2,492,190 19,181 Recreation & cultural services 849,940 849,940 770,898 79,042 Capital outlay 865,500 865,500 643,889 221,611 Debt service
Principal 185,000 185,000 188,516 (3,516) Interest and fiscal charges - - 27,295 (27,295) Total Expenditures 22,336,517 24,918,517 24,546,875 371,642 Excess (Deficiency) of Revenues over Expenditures (2,176,097) (1,573,089) 5,202,998 6,776,087
OTHER FINANCING SOURCES (USES)
Transfers in 3,734,202 3,960,202 148,102 (3,812,100) Transfers out (3,617,000) (4,309,500) (2,728,500) 1,581,000 Sale of capital assets - - - - Total Other Financing Sources (Uses) 117,202 (349,298) (2,580,398) (2,231,100)
Net Change in Fund Balance (2,058,895) (1,922,387) 2,622,600 4,544,987
Fund Balance Beginning 24,506,236 24,506,236 24,506,236 -
Fund Balance Ending 22,447,341$ 22,583,849$ 27,128,836$ 4,544,987$
The City adopts a budget annually for all governmental fund types. This budget is effective July 1 for the ensuing fiscal year.
From the effective date of the budget, which is adopted at the fund level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The legal level of budgetary control is the fund level. The City Council may amend the budget by resolution during the fiscal year. The City Manager has the authority to make adjustments to the operating budget between departments within the same fund. Transfers of operating budgets between funds, use of unappropriated fund balances, and significant changes in capital improvement project budgets require the approval of the City Council. Expenditures in excess of appropriations were covered by budgets in other objects/functions or beginning fund balance.
86 99
City of Marina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
FORA Dissolution Fund
For the Year Ended June 30, 2021
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental - 7,850,000 705,792$ (7,144,208) Investment earnings - - 124,437 124,437 Total Revenues - 7,850,000 830,229 (7,019,771)
EXPENDITURES
Current:
Economic & community development - 7,850,000 1,442,114 6,407,886 Total Expenditures - 7,850,000 1,442,114 6,407,886 Excess (Deficiency) of Revenues over Expenditures - - (611,885) (611,885)
OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balance - - (611,885) (611,885)
Fund Balance Beginning 11,961,956 11,961,956 11,961,956 -
Fund Balance Ending 11,961,956$ 11,961,956$ 11,350,071$ (611,885)$
87 100
City of Marina
Schedule of Pension Contributions
June 30, 2021
(Last Ten Years)
Miscellaneous and Safety Plan
Fiscal Y ear Ended 2015 2016 2017 2018 2019 2020 2021
Contractually Required Contributions 1,428,070$ 2,069,732$ 2,385,218$ 2,524,388$ 2,050,095$ 2,739,136$ 2,885,118$ Contributions in Relation to
Contractually Required Contributions 1,428,070 2,069,732 2,385,218 2,524,388 2,050,095 2,739,136 2,885,118 Contribution Deficiency (E xcess) -$ -$ -$ -$ -$ -$ -$ Covered Payroll 7,233,320$ 6,987,956$ 7,070,353$ 7,637,741$ 7,411,028$ 8,281,259$ 9,003,748$ Contributions as a
% of Covered Payroll 19.74% 29.62% 33.74% 33.05% 27.66% 33.08% 32.04% Notes to Schedule:
V aluation Date: June 30, 2019
Assum ptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing
3.8 Y ears Rem aining Am ortization Period
Inflation Assum ed at 2.5%
Investment Rate of Returns set at 7.15%
Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65% to 7.15% in fiscal year 2018.
The CalPERS m ortality assum ptions was adjusted in fiscal year 2019.
CalPERS m ortality table based on CalPERS' ex perience and include 15 years of projected ongoing m ortality im provem ent using 90 percent of Scale MP 2016 published by the Society of Actuaries. 88 101
City of Marina
Schedule of Proportionate Share of Net Pension Liability June 30, 2021
(Last Ten Years)
Miscellaneous and Safety Plan
Fiscal Y ear Ended 20 15 2016 2017 2018 2019 2020 2021
Proportion of Net Pension
Liability (Safety and Mis c) 0.18297% 0.17995% 0.18715% 0.19055% 0.19679% 0.20287% 0.21094% Proportionate Share of
Net Pens ion Liability 11,385,528$ 12,351,371$ 16,193,904$ 18,897,109$ 18,963,346$ 20,787,954$ 22,951,345$ Covered Payroll 7,701,575$ 7,233,320$ 6,987,956$ 7,070,353$ 7,637,741$ 7,411,028$ 8,281,259$ Proportionate Share of NPL
as a % of Covered Payroll 147.83% 170.76% 231.74% 267.27% 248.28% 280.50% 277.15% Plan's Fid uciary Net Position
as a % of the TPL 79.61% 77.38% 75.77% 74.66% 76.15% 75.40% 74.18% Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65% to 7.15% in fiscal year 2018.
The CalPERS m ortality assum ptions was adjusted in fiscal year 2019.
89 102
City of Marina
Schedule of Changes in Total OPEB Liability
June 30, 2021
(Last Ten Years)
Fiscal Year Ended 2018 2019 2020 2021
Tot
al OPEB liability
Service cost 271,072$ 200,224$ 195,708$ 264,281$ Interest 157,957 153,199 168,281 177,174
Differences between expected and actual experience (4,684) (27,347) 371,094 (5,518) Changes of assumptions (1,590,885) (200,100) (14,726) 1,466,447 Benefit payments (22,911) (28,444) (76,872) (73,360) Net change in Total OP EB Liability (1,189,451) 97,532 643,485 1,829,024 Total OPEB Liability - beginning 5,282,625 4,093,174 4,190,706 4,834,191 Total OP EB Liability - ending 4,093,174 $ 4,190,706$ 4,834,191 $ 6,663,215$ Plan fiduciary net position
Net change in plan fiduciary net position -$ -$ -$ - Plan fiduciary net position - beginning - - - - Plan fiduciary net position - ending -$ -$ -$ -$ Net OP EB liability (asset) 4,093,174 $ 4,190,706 4,834,191 6,663,215 Plan fiduciary net position as a percentage
of the total OP EB liability 0.00% 0.00% 0.00% 0.00%
Covered Employee Payroll 7,387,760 $ 7,635,928$ 7,725,967 $ 8,315,617$ Net OPEB liability as a percentage
of covered employee payroll 55.40% 54.88% 62. 57% 80.13% Total OPEB liability as a percentage
of covered employee payroll 55.40% 54.88% 62. 57% 80.13% Other Notes
There were no changes in benefit terms.
Dis
count rates decreased from 3.87% to 3.5% in 2020, then to 2.21% in 2021.
There were no changes in trend rates
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. 90 103
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SUPPLEMENTARY INFORMATION
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93 106
NONMAJO
R GOVERNMENTAL FUNDS
Special Revenue Funds
CDBG: Accounts for various U.S. Housing and Urban Development Department, Community Development Bloc k Grant, non- housing programs, including grant revenues, grant expenditures and program income.
CDB
G Housing: Accounts for various U.S. Housing and Urban Development Department, Community Development Block Grant, housing programs.
Public
Education Government: Accounts for franchise tax fees collected with cable television bills.
Fees collected through the cable provider finance the operating and capital costs of broadcasting City Council and other meetings of public interest over a dedicated TV channel.
Gas T
ax Streets: Accounts for State gas tax revenues and occasional City cash and staffing contributions, and the costs of allowable streets maintenance and repair projects.
Roa
d Maintenance and Rehabilitation (SB1): Accounts for funds received and expended specific to road maintenance and repairs.
Tra
nsportation Safety and Investment: Accounts for funds received and expended from sales tax Measure X to invest in roads throughout the County.
Nati
onal Parks Recreation Services: Accounts for revenues generated by land and antenna rentals, and from various recreation activities conducted on the site, as well as costs for facilities improvements, repairs, maintenance, staffing and support costs related to recreational activities. All activities are conducted on property granted to the City upon Fort Ord Army Base Closure. Use of these reso urces is limited to recreation activities conducted on these premises.
Seab
reeze Assessment District: Accounts for assessments collected from property owners within the boundaries of the District, and related landscape maintenance costs.
Mont
erey Bay Est ates Assessment District: Accounts for assessments collected from property owners within the boundaries of the District, and related landscape maintenance costs.
Cyp
ress Cove II Assessment District: Accounts for assessments collected from property owners within the boundaries of the District, and related landscape maintenance costs.
CFD
2007- 2 Locke-Paddon: A Community Facilities District (CFD) accounts for annual assessments against property owners within the boundaries of the District and related improvement and maintenance costs.
CFD
2015-1 Dunes: A Community Facilities Districts (CFD) accounts for annual assessments against property owners within the boundaries of the District and related improvement and maintenance costs.
Debt Service Funds
201
5 GO Refunding Bonds: Accounts for tax revenues that provide resources to ma ke bond principal and interest payments, and to pay costs of administering the 2015 general obligation refunding bonds, which refinanced the 2005 library construction general obligation bonds. 94 107
NONMAJOR GOVERNMENTAL FUNDS
Marina Landing Bonds: Accounted for special assessment revenues, bond principal and interest payments, and debt administration costs. Bonds were originally issued to finance certain infrastructure improvements to properties in the Marina Landing Assessment. All bonds have been liquidated but the fund has a residual cash balance which will be disbursed and the fund deactivated when appropriate.
Marina Greens Bonds: Accounted for special assessment revenues, bond principal and inter est payments, and debt administration costs. Bonds were originally issued to finance certain infrastructure improvements to properties in the Marina Greens Assessment District. All bonds have been liquidated but the fund has a residual cash balance which will be disbursed and the fund deactivated when appropriate.
Capital Projects Funds
Airport: This fund accounts for federal and state grant revenues, city- match and other resources that are dedicated and/or restricted to creating, expanding or otherwise improving infrastructure and other long- lived assets at the Marina Municipal Airport.
Park Facilities: Over a period of time, this fund has accounted for residential par k development taxes, park facility improvement fees, park facility use fees, mitigation fees for new development, pa rks in-lieu fees, grant revenues, private and public donation s, antenna rents and other resources dedicated or restricted to the acquisition, construction and /or improvement of par k and recreational facilities.
Resources in this fund were expended for their required purposes, and since implementation of Par ks Impact Fees (accounted for in the Impact Fee Fund) the fund has become inactive. The small remaining cash balance will be transferred to the appropriate successor fund.
City Capital Projects: This fund is used to account for the City's major capital projects.
95 108
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Public
CDBG Education Gas
CDBG Housing Government Tax
Fund Fund Fund Fund
ASSETS
Cash and investments 290,886$ 27,280$ 47,184$ 27,284$ Restricted cash and investments - - - -
Accounts receivable 193 17 30,251 -
Notes receivable 536,144 60,000 - -
Total assets 827,223$ 87,297$ 77,435$ 27,284$
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable - $ - $ 30,251$ 20,388$
Accrued payroll and benefits - - - 6,546
Deposits and other liabilities - - - -
Total liabilities - - 30,251 26,934
Deferred Inflows of Resources:
Unavailable revenues 536,144 60,000 - -
Fund Balances:
Restricted:
Transportation - - - -
Streets & special districts - - - 350
Community development 291,079 27,297 - -
Recreation - - - -
Capital projects - - - -
Debt service - - - -
Committed
Capital projects - - - -
Public education - - 47,184 -
Unassigned - - - -
Total fund balances 291,079 27,297 47,184 350
Total liabilities, deferred inflows of
resources and fund balances 827,223$ 87,297$ 77,435$ 27,284$ Cont'd
Special Revenue Funds
96 109
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Notes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued payroll and benefits
Deposits and other liabilities
Total liabilities
Deferred Inflows of Resources:
Unavailable revenues
Fund Balances:
Restricted:
Transportation
Streets & special districts
Community development
Recreation
Capital projects
Debt service
Committed
Capital projects
Public education
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
National
Road Transportation Parka Seabreeze
Maintenance & Safety & Recreation Assessment
Rehabilitation Investment Services District
Fund Fund Fund Fund
399,707$ 624,274$ 265,457$ - $
- - - - 45,423 246,934 173 -
- - - - 445,130$ 871,208$ 265,630$ - $
- $ - $ - $ 2,296$ - - 2,477 - - - - - - - 2,477 2,296 - - - - - 871,208 - - 445,130 - - - - - - - - - 263,153 - - - - - - - - - - - - - - - - - - - - (2,296) 445,130 871,208 263,153 (2,296) 445,130$ 871,208$ 265,630$ - $
Cont'd
Special Revenue Funds
97 110
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Notes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued payroll and benefits
Deposits and other liabilities
Total liabilities
Deferred Inflows of Resources:
Unavailable revenues
Fund Balances:
Restricted:
Transportation
Streets & special districts
Community development
Recreation
Capital projects
Debt service
Committed
Capital projects
Public education
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Monterey Cypress CFD
Bay Estates Cove II 2007-2 CFD
Assessment Assessment Locke- 2015-1
District District Paddon Dunes
Fund Fund Fund Fund
13,897$ 5,119$ 14,256$ 785,411$ - - - - 9 4 8 505 - - - - 13,906$ 5,123$ 14,264$ 785,916$ 952$ 1,229$ 319$ 3,000$ - - - - - - - - 952 1,229 319 3,000 - - - - - - - - 12,954 3,894 13,945 782,916 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12,954 3,894 13,945 782,916 13,906$ 5,123$ 14,264$ 785,916$ Cont'd
Special Revenue Funds
98 111
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Notes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued payroll and benefits
Deposits and other liabilities
Total liabilities
Deferred Inflows of Resources:
Unavailable revenues
Fund Balances:
Restricted:
Transportation
Streets & special districts
Community development
Recreation
Capital projects
Debt service
Committed
Capital projects
Public education
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
2015 Marina Marina
GO Landing Greens
Refunding Improvement Improvement
Bonds Bonds Bonds
Fund Fund Fund
-$ -$ -$
490,837 7,085 4,909
268 - -
- - -
491,105$ 7,085$ 4,909$
-$ 15$ 15$
- - -
- - -
- 15 15
- - -
- - -
- - -
- - -
- - -
- - -
491,105 7,070 4,894
- - -
- - -
- - -
491,105 7,070 4,894
491,105$ 7,085$ 4,909$
Cont'd
Debt Service Funds
99 112
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Notes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued payroll and benefits
Deposits and other liabilities
Total liabilities
Deferred Inflows of Resources:
Unavailable revenues
Fund Balances:
Restricted:
Transportation
Streets & special districts
Community development
Recreation
Capital projects
Debt service
Committed
Capital projects
Public education
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Measure X Airport City Total
Road and Capital Park Capital Nonmajor
Transportation Projects Facilities Projects Governmental Fund Fund Fund Fund Funds
3,821,380$ 861,351$ 860$ 8,556,077 $ 15,740,423$ - - - - 502,831
3,105 465 - - 327,355
- - - - 596,144
3,824,485$ 861,816$ 860$ 8,556,077 $ 17,166,753$ 25,214$ 22,214$ - $ 79,280$ 185,173$
- - - 1,094 10,117
- - - - -
25,214 22,214 - 80,374 195,290
- - - - 596,144
- - - - 871,208
- - - - 1,259,189
- - - - 318,376
- - - - 263,153
3,799,271 839,602 860 - 4,639,733
- - - - 503,069
- - - 8,475,703 8,475,703
- - - - 47,184
- - - - (2,296)
3,799,271 839,602 860 8,475,703 16,375,319
3,824,485$ 861,816$ 860$ 8,556,077 $ 17,166,753$ Concluded
Capital Projects Funds
100
113
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Public
CDBG Education Gas
CDBG Housing Government Tax
Fund Fund Fund Fund
REVENUES
Taxes and assessments - $ - $ 118,426$ 530,456$ Intergovernmental - - - - Charges for services - - - - Investment earnings 2,959 6,170 - - Other revenue - 16,500 - - Total Revenues 2,959 22,670 118,426 530,456
EXPENDITURES
Current:
General government - - - - Public works - - - 467,777 Economic & community development - - 118,426 - Recreation & cultural services - - - - Capital outlay - - - - Debt service
Principal - - - - Interest and fiscal charges - - - - Total Expenditures - - 118,426 467,777 Excess (Deficiency) of Revenues over Expenditures 2,959 22,670 - 62,679
OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers out - - - (62,400) Total Other Financing Sources (Uses) - - - (62,400) Net Change in Fund Balances 2,959 22,670 - 279 Fund Balances Beginning 288,120 4,627 47,184 71 Fund Balances Ending 291,079$ 27,297$ 47,184$ 350$ Cont'd
Special Revenue Funds
101
114
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Economic & community development
Recreation & cultural services
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
National
Road Transportation Parka Seabreeze
Maintenance & Safety & Recreation Assessment
Rehabilitation Investment Services District
Fund Fund Fund Fund
456,427$ 847,409$ - $ 6,733$
- - - - - - 79,168 -
1,957 2,362 3,158 - - - - - 458,384 849,771 82,326 6,733
- - - - - 6,000 267 5,728 - - - - - - 41,511 -
- - - -
- - - - - - - - - 6,000 41,778 5,728 458,384 843,771 40,548 1,005
- - - - (400,000) (600,000) (418,917) (1,740) (400,000) (600,000) (418,917) (1,740) 58,384 243,771 (378,369) (735)
386,746 627,437 641,522 (1,561) 445,130$ 871,208$ 263,153$ (2,296)$
Cont'd
Special Revenue Funds
102
115
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Economic & community development
Recreation & cultural services
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
Monterey Cypress CFD
Bay Estates Cove II 2007-2 CFD
Assessment Assessment Locke- 2015-1
District District Paddon Dunes
Fund Fund Fund Fund
12,728$ 19,928$ 13,432$ 166,608$ - - - - - - - - 131 31 58 6,604 - - - - 12,859 19,959 13,490 173,212 - - - - 11,694 16,175 3,867 7,099 - - - - - - - - - - - -
- - - - - - - - 11,694 16,175 3,867 7,099 1,165 3,784 9,623 166,113 - - - - (2,870) (2,750) - (2,770) (2,870) (2,750) - (2,770) (1,705) 1,034 9,623 163,343 14,659 2,860 4,322 619,573 12,954$ 3,894$ 13,945$ 782,916$ Cont'd
Special Revenue Funds
103
116
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Economic & community development
Recreation & cultural services
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
2015 Marina Marina
GO Landing Greens
Refunding Improvement Improvement
Bonds Bonds Bonds
Fund Fund Fund
588,803$ - $ - $
- - -
- - -
1,509 165 144
- - -
590,312 165 144
530 - -
- - -
- - -
- - -
- - -
260,000 - -
238,031 50,513 41,562
498,561 50,513 41,562
91,751 (50,348) (41,418)
- - -
(14,855) - -
(14,855) - -
76,896 (50,348) (41,418)
414,209 57,418 46,312
491,105$ 7,070 $ 4,894 $
Cont'd
Debt Service Funds
104
117
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
General government
Public works
Economic & community development
Recreation & cultural services
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
Measure X Airport City Total
Road and Capital Park Capital Nonmajor
Transportation Projects Facilities Projects Governmental Fund Fund Fund Fund Funds
- $ - $ - $ - $ 2,760,950$ - 139,196 - 59,274 198,470 - - - - 79,168 52,565 7,440 8 - 85,261 - - - 500 17,000 52,565 146,636 8 59,774 3,140,849 - - - - 530 - - - - 518,607 - - - - 118,426 - - - - 41,511 2,101,815 473,623 - 775,009 3,350,447
- - - - 260,000 - - - - 330,106 2,101,815 473,623 - 775,009 4,619,627 (2,049,250) (326,987) 8 (715,235) (1,478,778) 2,600,000 802,243 - 2,271,500 5,673,743 - - - - (1,506,302) 2,600,000 802,243 - 2,271,500 4,167,441 550,750 475,256 8 1,556,265 2,688,663 3,248,521 364,346 852 6,919,438 13,686,656 3,799,271$ 839,602$ 860$ 8,475,703$ 16,375,319$ Concluded
Capital Projects Funds
105
118
GENE
RAL FUND COMBINING SCHEDULES
The Ge
neral Fund is the City 's primary operating fund. This is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. For the City, the general fund includes such activities such as public safety, public ways and facilities, parks and recreation services, and economic development services. 106
119
City of Marina
Combining Balance Sheet
General Fund
June 30, 2021
Vehicle &
Equipment OPEB Pension Library Total
General Replacement Obligation Stabilization Maintenance General Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments 20,902,162$ 2,754,759$ 200,000$ 2,050,000$ 279,222$ 26,186,143$ Restricted cash and investments 235,609 - - - - 235,609 Accounts receivable 3,154,752 - - - - 3,154,752 Notes receivable 183,634 - - - - 183,634 Total assets 24,476,157$ 2,754,759$ 200,000$ 2,050,000$ 279,222$ 29,760,138$
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable 753,823$ -$ -$ -$ 675$ 754,498$ Accrued payroll and benefits 586,591 - - - 8 586,599 Deposits and other liabilities 815,666 - - - - 815,666 Total liabilities 2,156,080 - - - 683 2,156,763 Deferred Inflows of Resources:
Unavailable revenues 474,539 - - - - 474,539 Fund Balances:
Restricted 235,609 - - - - 235,609 Committed
Emergency Reserve 4,507,924 - - - - 4,507,924 Facilities Repairs 500,000 - - - - 500,000 Compensated Absences 400,000 - - - - 400,000 Community Improvements 641,268 - - - - 641,268 General Plan Update 125,000 - - - - 125,000 Vehicle & Equipment Replacement - 2,754,759 - - - 2,754,759 OPEB - - 200,000 - - 200,000 Pension Stabilization - - - 2,050,000 - 2,050,000 Library Maintenance - - - - 278,539 278,539 Unassigned 15,435,737 - - - - 15,435,737 Total fund balances 21,845,538 2,754,759 200,000 2,050,000 278,539 27,128,836 Total liabilities, deferred inflows of
resources and fund balances 24,476,157$ 2,754,759$ 200,000$ 2,050,000$ 279,222$ 29,760,138$
107
120
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
General Fund
For the Year Ended June 30, 2021
Vehicle &
Equipment OPEB Pension Library Total
General Replacement Obligation Stabilization Maintenance General Fund Fund Fund Fund Fund Eliminations Fund
REVENUES
Taxes and assessments 20,988,247$ - $ - $ - $ - $ - $ 20,988,247$ Licenses, permits and fees 2,446,456 - - - - - 2,446,456 Fines and forfeitures 95,186 - - - - - 95,186
Intergovernmental 1,626,524 - - - - - 1,626,524 Charges for services 3,802,810 - - - - - 3,802,810 Investment earnings 323,971 - - - - - 323,971
Other revenue 466,679 - - - - - 466,679
Total Revenues 29,749,873 - - - - - 29,749,873
EXPENDITURES
Current:
General government 6,688,495 1,067 - - - - 6,689,562 Public safety 12,046,544 - - - - - 12,046,544 Public works 1,687,981 - - - - - 1,687,981
Economic & community development 2,474,241 - - - 17,949 - 2,492,190 Recreation & cultural services 770,898 - - - - - 770,898 Capital outlay 51,988 591,901 - - - - 643,889 Debt service
Principal 161,910 26,606 - - - - 188,516
Interest and fiscal charges 23,438 3,857 - - - - 27,295 Total Expenditures 23,905,495 623,431 - - 17,949 - 24,546,875 Excess (Deficiency) of
Revenues over Expenditures 5,844,378 (623,431) - - (17,949) - 5,202,998
OTHER FINANCING SOURCES (USES)
Transfers in 148,102 1,131,000 - 450,000 - (1,581,000) 148,102 Transfers out (4,309,500) - - - - 1,581,000 (2,728,500) Total Other Financing Sources (Uses) (4,161,398) 1,131,000 - 450,000 - - (2,580,398) Net Change in Fund Balances 1,682,980 507,569 - 450,000 (17,949) - 2,622,600 Fund Balances Beginning 20,162,558 2,247,190 200,000 1,600,000 296,488 - 24,506,236 Fund Balances Ending 21,845,538$ 2,754,759$ 200,000$ 2,050,000$ 278,539$ -$ 27,128,836$ 108
121
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109
122
STATISTICAL SECTION
110
123
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111
124
City of Marina TABLE 1
Net Position
Last Ten Fiscal Years
2012 2013 2014 2015 1 2016 2
2017 2018 2019 2020 2021
Governmental activities:
Net investment in capital assets 18,946,730$ 18,664,807$ 20,295,121$ 22,196,868$ 61,460,494$ 64,902,023$ 74,531,326$ 74,955,690$ 76,644,586$ 77,649,251$ Restricted 8,088,891 6,790,485 7,082,547 8,194,764 6,559,194 9,355,317 12,369,283 14,377,743 32,932,269 36,675,399 Unrestricted 17,808,826 17,440,618 18,619,528 7,227,722 12,018,477 11,101,690 1,153,328 5,397,539 8,141,549 10,374,278 Total governmental activities net position 44,844,447$ 42,895,910$ 45,997,196$ 37,619,354$ 80,038,165$ 85,359,030$ 88,053,937$ 94,730,972$ 117,718,404$ 124,698,928$ Business-type activities:
Net investment in capital assets 46,298,927$ 45,577,707$ 43,551,275$ 43,324,510$ 42,332,248$ 42,448,410$ 41,999,782$ 41,393,300$ 42,711,663$ 41,902,328$ Restricted - - - - - - - - - - Unrestricted 5,009,395 5,007,519 5,543,355 5,561,505 7,457,704 7,987,512 8,317,449 10,759,921 11,561,226 13,231,995 Total business-type activities net position 51,308,322$ 50,585,226$ 49,094,630$ 48,886,015$ 49,789,952$ 50,435,922$ 50,317,231$ 52,153,221$ 54,272,889$ 55,134,323$ Primary government:
Net investment in capital assets 65,245,657$ 64,242,514$ 63,846,396$ 65,521,378$ 103,792,742$ 107,350,433$ 116,531,108$ 116,348,990$ 119,356,249$ 119,551,579$ Restricted 8,088,891 6,790,485 7,082,547 8,194,764 6,559,194 9,355,317 12,369,283 14,377,743 32,932,269 36,675,399 Unrestricted 22,818,221 22,448,137 24,162,883 12,789,227 19,476,181 19,089,202 9,470,777 16,157,460 19,702,775 23,606,273 Total primary government net position 96,152,769$ 93,481,136$ 95,091,826$ 86,505,369$ 129,828,117$ 135,794,952$ 138,371,168$ 146,884,193$ 171,991,293$ 179,833,251$ Notes:
1 In Fiscal 2014/15, the City implemented Governmental Accounting Standards Board (GASB) Statement 68 - Accounting and Financial Reporting for Pensions, requiring the City to record a fictitious pension liability that was previously neither measurable nor recorded on the City's financial statements 2 In Fiscal 2015/16, the City acquired two significant capital assets; Preston Park Housing Project $35.1 million and Dunes infrastructure $2.9 million Source: City of Marina Audited Financial Statements
Fiscal Year Ended June 30 Fiscal Year Ended June 30
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2012 2013 2014 2015
1 2016
2 2017 2018 2019 2020 2021
Millions
Total Primary Government Net Position
112
125
City of Marina TABLE 2
Changes in Net Position
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Governmental activities:
General government 3,705,459$ 3,158,122$ 2,916,551$ 2,984,155$ 3,480,230$ 4,692,664$ 5,513,745$ 5,858,902$ 7,628,497$ 8,897,835$ Public safety 9,724,249 10,062,178 10,600,203 10,128,248 9,854,516 11,351,326 10,668,593 10,604,157 14,422,863 13,666,296 Public works 2,163,703 2,673,237 2,757,413 2,887,311 1,873,600 1,908,465 1,915,307 2,216,656 2,689,673 2,405,492 Economic & Community Development 3,189,156 1,501,626 1,791,747 1,424,974 2,441,492 1,927,976 2,259,928 2,803,220 3,956,676 5,247,962 Recreation & cultural services 1,068,016 1,088,854 1,232,087 1,069,775 1,179,699 1,173,364 1,197,500 1,169,832 1,244,526 940,929 Public Inprovements 2,061,205 1,167,854 765,115 896,127 1,505,639 1,689,946 1,883,898 2,177,696 - - Interest and fiscal charges 1,145,120 1,088,328 1,030,828 1,407,245 796,761 667,627 553,256 558,500 591,768 639,390 Total governmental activities expenses 23,056,908 20,740,199 21,093,944 20,797,835 21,131,937 23,411,368 23,992,227 25,388,963 30,534,003 31,797,904 Business-type activities:
Airport 1,805,625 2,067,193 2,139,705 1,901,134 1,578,540 1,608,413 1,702,082 1,485,600 1,653,799 1,892,873 Preston Park Housing - - - - 3,940,705 6,435,459 6,622,148 2,594,187 6,083,395 6,317,011 Abrams-B Housing 2,331,910 2,673,687 2,897,135 2,606,945 3,224,211 3,106,604 3,394,698 5,974,685 4,128,113 3,167,489 Total business-type activities expenses 4,137,535 4,740,880 5,036,840 4,508,079 8,743,456 11,150,476 11,718,928 10,054,472 11,865,307 11,377,373 Total primary government expenses 27,194,443$ 25,481,079$ 26,130,784$ 25,305,914$ 29,875,393$ 34,561,844$ 35,711,155$ 35,443,435$ 42,399,310$ 43,175,277$ Program Revenues
Governmental activities:
Charges for services & program revenues:
General government 2,523,926$ 1,253,981$ 2,857,217$ 573,764$ 2,494,834$ 2,499,202$ 3,932,540$ 4,020,638$ 4,232,396$ 3,763,108$ Public safety 483,373 744,846 848,336 603,046 786,543 733,781 909,599 218,953 196,284 289,185 Public works 216,950 515,416 905,055 1,751,989 - 599 440 - - - Economic & Community Development 280,763 1,402,912 3,390,067 2,898,550 1,252,538 1,685,111 1,473,747 1,430,281 3,801,226 6,584,030 Recreation & cultural services 162,077 244,427 179,949 178,301 81,713 77,361 94,627 92,731 172,209 81,644 Public Inprovements 468,981 5,533 60,905 1,056,078 1,929,360 2,306,877 2,295,007 1,776,845 - - Debt Service 805,495 1,120,322 1,063,287 1,215,804 - - - - - - Operating grants and contributions 766,875 419,088 501,893 438,044 380,876 - 397,385 846,776 1,018,974 1,788,253 Capital grants and contributions 1,450,216 589,729 658,007 2,286,975 4,585,380 - 1,197,861 1,517,506 11,212,794 383,039 Total governmental activities program revenues 7,158,656 6,296,254 10,464,716 11,002,551 11,511,244 7,302,931 10,301,206 9,903,730 20,633,883 12,889,259 Business-type activities:
Charges for services:
Airport 1,084,201 1,118,689 1,188,608 1,235,090 1,135,525 1,157,167 1,078,147 1,331,552 1,340,046 1,790,543 Preston Park Housing - - - - 4,934,125 6,328,162 6,469,476 3,455,449 6,843,782 7,058,160 Abrams-B Housing 2,917,523 2,892,241 2,965,994 3,058,722 3,197,353 3,264,067 3,324,176 6,687,941 3,495,394 3,477,132 Operating grants and contributions - - - - 10,000 390,351 10,000 - - - Capital grants and contributions - - - - - 3,986,805 696,860 - 2,530,886 462,750 Total business-type activities program revenues 4,001,724 4,010,930 4,154,602 4,293,812 9,277,003 15,126,552 11,578,659 11,474,942 14,210,108 12,788,585 Total primary government program revenues 11,160,380 10,307,184 14,619,318 15,296,363 20,788,247 22,429,483 21,879,865 21,378,672 34,843,991 25,677,844 Net (expense)/revenue:
Governmental activities (15,898,252) (14,443,945) (10,629,228) (9,795,284) (9,620,693) (16,108,437) (13,691,021) (15,485,233) (9,900,120) (18,908,645) Business-type activities (135,811) (729,950) (882,238) (214,267) 533,547 3,976,076 (140,269) 1,420,470 2,344,801 1,411,212 Total primary government net (expense)/revenue (16,034,063)$ (15,173,895)$ (11,511,466)$ (10,009,551)$ (9,087,146)$ (12,132,361)$ (13,831,290)$ (14,064,763)$ (7,555,319)$ (17,497,433)$ General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes 3,980,436$ 2,341,638$ 4,595,756$ 5,109,408$ 2,719,013$ 3,018,698$ 3,261,967$ 3,796,881$ 3,724,035$ 3,919,415$ Sales and use taxes 4,274,491 4,434,956 4,588,760 4,849,207 5,210,921 5,366,144 5,929,585 6,862,925 8,420,971 9,640,663 Franchise taxes 649,791 646,522 726,548 823,764 1,007,012 1,084,574 1,173,881 1,976,778 1,225,160 1,238,550 Transient occupancy taxes 1,876,488 1,932,294 2,154,023 2,395,263 2,549,531 2,680,928 3,297,828 4,008,179 3,472,430 3,501,246 Gas taxes - - - - - - - - 946,422 986,884 Motor vehicle taxes 3,091,930 3,014,633 - - 2,685,134 2,934,743 3,252,508 3,649,318 4,012,763 4,360,659 Other taxes - - - - - - - - 142,225 101,780 Grants not restricted to a program - - - - - - - - 2,149,827 139,197 Investment earnings 54,237 49,158 23,541 28,416 75,584 149,622 402,805 613,259 973,856 679,275 Transfers, Miscellaneous & One-time revenues 576,486 76,207 1,641,886 1,423,896 730,262 1,817,437 2,466,111 1,254,928 1,536,863 1,597,893 Special items - - - - 37,062,047 - (3,398,757) - 6,283,000 - Total governmental activities 14,503,859 12,495,408 13,730,514 14,629,954 52,039,504 17,052,146 16,385,928 22,162,268 32,887,552 26,165,562 Business-type activities:
Other revenue - - - - - - - - 274,299 226,507 Investment earnings 6,386 6,854 5,941 5,653 6,954 10,824 21,578 76,494 87,568 55,758 Contributed capital assets 1,458,509 - 13,960 1,036,227 - 324,720 - - Transfers In(Out) Net - - - - - - - 14,306 (587,000) (832,043) Total business-type activities 1,464,895 6,854 19,901 5,653 6,954 1,047,051 21,578 415,520 (225,133) (549,778) Total primary government 15,968,754$ 12,502,262$ 13,750,415$ 14,635,607$ 52,046,458$ 18,099,197$ 16,407,506$ 22,577,788$ 32,662,419$ 25,615,784$ Change in Net Position
Governmental activities (1,394,393)$ (1,948,537)$ 3,101,286$ 4,834,670$ 42,418,811$ 943,709$ 2,694,907$ 6,677,035$ 22,987,432$ 7,256,917$ Business-type activities 1,329,084 (723,096) (862,337) (208,614) 540,501 5,023,127 (118,691) 1,835,990 2,119,668 861,434 Total primary government (65,309)$ (2,671,633)$ 2,238,949$ 4,626,056$ 42,959,312$ 5,966,836$ 2,576,216$ 8,513,025$ 25,107,100$ 8,118,351$ Source: City of Marina Audited Financial Statements
Fiscal Year Ended June 30 Fiscal Year Ended June 30
113
126
City of Marina TABLE 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Non-spendable 269,169$ 269,169$ 545,361$ 715,669$ 543,713$ 530,713$ 530,713$ -$ -$ -$ Restricted 175,172 178,246 180,782 396,081 446,329 211,371 511,371 239,497 595,729 235,609 Committed 200,000 200,000 200,000 603,705 570,730 7,027,012 7,367,012 9,644,438 10,597,489 11,457,490 Unassigned 7,272,918 5,443,810 6,478,231 6,142,694 6,340,666 1,318,952 4,157,087 7,549,288 13,313,018 15,435,737 Total General Fund 7,917,259$ 6,091,225$ 7,404,374$ 7,858,149$ 7,901,438$ 9,088,048$ 12,566,183$ 17,433,223$ 24,506,236$ 27,128,836$ All other governmental funds
Restricted -
Recreation & Social Service Programs 774,760$ 529,511$ 388,107$ 437,778$ 396,963$ 456,117$ 529,410$ 603,788$ 641,522$ 263,153$ Transprotation and Streets - - - - - - - - 1,655,668 2,130,397 Economic & Community Development 5,038,229 4,134,798 4,691,109 6,742,282 5,094,894 8,270,438 10,318,250 13,121,425 25,464,987 28,452,169 Capital Improvements & Maintenance 902,846 872,555 918,950 15,068 59,329 256,727 950,955 1,500,191 3,613,719 4,639,733 Debt service 1,197,884 1,075,375 903,599 603,555 561,680 859,522 884,213 889,834 960,644 954,338 Committed 3,014,928 4,575,485 3,984,776 4,935,756 8,159,831 5,411,834 6,617,787 5,960,566 6,966,622 8,522,887 Unassigned - - - - - - - (376) (1,561) (2,296) Total all other governmental funds 10,928,647$ 11,187,724$ 10,886,541$ 12,734,439$ 14,272,697$ 15,254,638$ 19,300,615$ 22,075,428$ 39,301,601$ 44,960,381$ Fund Balance - All Governmental Funds 18,845,906$ 17,278,949$ 18,290,915$ 20,592,588$ 22,174,135$ 24,342,686$ 31,866,798$ 39,508,651$ 63,807,837$ 72,089,217$ Source: City of Marina audited financial statements
Fiscal Year Ended June 30 Fiscal Year Ended June 30
The City implemented GASB 54, "Fund Balance Reporting and Governmental Fund Type Definitions," beginning fiscal year 2011. Certain data required by GASB 54 is not available for years prior to 2011, and certain fund balance classifications have changed under GASB-54. Reclassifications for prior years have not been made.
114
127
City of Marina TABLE 4
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Taxes & assessments 13,873,137$ 12,370,042$ 13,403,846$ 13,859,210$ 14,776,278$ 15,622,866$ 17,513,555$ 21,359,063$ 21,944,005$ 23,749,197$ Licenses, Permits & Fees 189,415 277,547 444,470 515,123 545,288 672,613 2,127,179 2,346,192 1,962,170 2,446,456 Fines and penalties 187,808 189,423 195,743 194,540 144,598 146,415 106,116 102,543 60,958 95,186 Intergovernmental revenues - - - - 2,649,113 3,224,446 2,252,459 2,069,412 15,455,706 2,530,786 Charges for services 7,018,767 6,154,287 8,730,551 9,732,507 5,315,358 5,203,312 6,074,165 5,136,602 6,378,832 8,064,882 Investment Earnings 66,685 49,158 38,287 41,926 75,584 149,622 402,532 613,259 973,856 679,275 Other revenues 180,324 536,172 108,332 1,242,920 39,664,855 2,893,494 (i) 1,169,157 (ii) 839,396 979,403 1,224,019 Total revenues 21,516,136 19,576,629 22,921,229 25,586,226 63,171,074 27,912,768 29,645,163 32,466,467 47,754,930 38,789,801 Expenditures
General government 3,225,776 2,187,323 2,333,193 2,512,974 2,765,874 3,350,106 4,334,089 4,664,354 5,310,952 6,690,092 Public safety 10,175,888 10,194,910 10,209,287 10,551,880 10,425,058 10,581,491 10,127,912 10,300,132 11,281,745 12,046,544 Public works 2,183,090 2,640,931 2,686,096 2,906,689 1,784,937 1,798,782 1,821,925 1,868,424 2,109,907 2,206,588 Economic & community development 1,492,441 1,953,554 1,800,790 1,448,506 2,441,977 1,923,875 2,254,588 2,641,074 2,439,900 4,052,730 Recreation & cultural services 907,685 913,253 1,080,272 895,100 964,613 950,754 1,002,449 994,789 950,128 812,409 Redevelopment 1,700,931 - - - - - - - - - Public improvements/capital outlay 2,032,620 2,076,397 3,153,496 2,722,948 41,314,503 6,281,854 2,042,472 3,678,333 6,850,668 3,994,336 Debt Service
Principal 735,000 676,185 1,214,878 661,757 1,284,007 889,686 625,200 765,000 809,692 888,516 Interest and fiscal charges 992,799 941,068 1,041,082 1,063,563 734,155 719,354 641,193 561,358 572,752 649,249 Total expenditures 23,446,230 21,583,621 23,519,094 22,763,417 61,715,124 26,495,902 22,849,828 25,473,464 30,325,744 31,340,464 Excess of revenues over(under) expenditures (1,930,094) (2,006,992) (597,865) 2,822,809 1,455,950 1,416,866 6,795,335 6,993,003 17,429,186 7,449,337 Other financing sources (uses)
Transfers in 5,028,972 3,368,405 2,928,560 3,149,165 4,669,312 2,156,862 1,312,011 4,298,165 6,421,672 5,821,845 Transfers out (4,500,744) (2,928,370) (2,387,529) (3,017,733) (4,543,717) (1,405,176) (583,234) (4,312,471) (5,834,672) (4,989,802) Sale of capital assets - - 1,068,800 - - - - - 6,283,000 - Issuance of long-term debt - - - (401,716) - - - 663,156 - - Total other financing sources (uses) 528,228 440,035 1,609,831 (270,284) 125,595 751,686 728,777 648,850 6,870,000 832,043 Special Items:
Extraordinary gain/(loss) (629,152) - - - - - - - - - Total extraordinary items (629,152) - - - - - - - - - Net change in fund balances (2,031,018)$ (1,566,957)$ 1,011,966$ 2,552,525$ 1,581,545$ 2,168,552$ 7,524,112$ 7,641,853$ 24,299,186$ 8,281,380$ Beginning Fund Balances 20,772,125 18,845,907 17,278,949 18,290,915 20,592,588 22,174,136 24,342,686 31,866,798 39,508,651 63,807,837 Rounding (1) 3 (2) - - - - Prior-period adjustment 104,800 - - (250,852) - - - - - - Ending Fund Balances 18,845,907$ 17,278,949$ 18,290,915$ 20,592,588$ 22,174,136$ 24,342,686$ 31,866,798$ 39,508,651$ 63,807,837$ 72,089,217$ (i) (i)
Source: City of Marina Audited Financial Statements
(ii) - During fiscal 2016/17 The City recorded a one-time revenue of almost $2 from donation of infrastructure at the Dunes development. In addition, significant extraordinary grants for capital improvements were received.
Fiscal Year Ended June 30 Fiscal Year Ended June 30
Changes in Fund Balances of Governmental Funds
(i) - during FY 2015/2016 the City recorded a one-time revenue resulting from sale of a 50-year leasehold interest in the Preston Park Housing development to the Preston Park Corporation. An extraordinay capital outlay cost was recorded for the acquisition of that asset.In addition, the developer of the former University Villages donated almost $3 Million infrastructure which was recognized as one-time revenue. Other one-time capital asset-related revenues totalled $1.3 Million 115
128
City of Marina TABLE 5
General Fund Tax Revenues
Last Ten Fiscal Years
Franchise & Transient Motor Vehicle.
Property Sales Cardroom Occupancy In-Lieu Total
1,764,017$ 4,274,491$ 649,792$ 1,876,488$ 2,328,483$ 10,893,271$ 1,879,967 4,434,956 646,522 1,932,294 2,324,211 11,217,950 2,199,001 4,588,760 726,548 2,154,023 2,396,756 12,065,088 2,045,073 4,849,207 823,764 2,395,263 2,555,616 12,668,923 2,252,005 5,210,921 1,037,816 2,549,531 2,685,134 13,735,407 2,462,394 5,288,097 983,741 2,680,927 2,934,017 14,349,176 2,616,657 5,847,182 1,057,654 3,297,828 3,252,508 16,071,829 3,079,361 6,862,925 1,259,574 4,008,180 3,649,318 18,859,358 3,044,638 7,740,865 1,249,755 3,472,431 4,012,763 19,520,452 3,111,184 8,793,254 1,221,904 3,501,246 4,360,659 20,988,247 Source: City of Marina Financial Statements
Fiscal Year
Ended
June 30
2012
2013
2014
2015
2021
2016
2017
2018
2019
2020
$-
$5
$10
$15
$20
$25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Year
General Fund Tax Revenue by Fiscal Year
116
129
City of Marina TABLE 6
General Fund Revenues
Last Ten Fiscal Years
Fiscal Year
Ended June 30 Taxes
Licenses, Permits
& Fees
Fines, Penalties
and Forfeitures
Chrg for Svcs
Grants &
Program Income
Investment
Earnings Other Total *
2012 10,893,271$ 189,415$ 187,808$ 3,215,947$ 54,237$ 122,609$ 14,663,287$ 2013 11,217,950 277,547 189,423 3,410,660 30,124 96,392 15,222,096 2014 12,065,088 444,470 195,743 4,295,003 23,597 32,054 17,055,955 2015 12,668,923 515,123 194,540 4,016,197 26,961 236,379 17,658,123 2016 ** 13,735,407 545,288 144,598 4,311,415 41,376 145,502 18,923,586 2017 *** 14,349,176 672,613 146,415 3,719,176 96,574 429,215 19,413,169 2018 16,071,829 2,127,179 106,116 3,455,823 242,670 1,531,133 23,534,750 2019 18,859,358 2,346,192 102,543 3,313,868 334,220 881,440 25,837,621 2020 19,502,452 1,962,170 60,957 4,045,957 552,780 1,445,811 27,570,127 2021 20,988,247 2,446,456 95,186 5,429,334 323,971 466,679 29,749,873 Source: City of Marina Financial Statements
* Excludes transfers in from other funds
** Other excludes $37.9 million non-cash capital assets transactions for consistency *** Other excludes $1.6 million non-cash capital assets transactions for consistency $-
$5
$10
$15
$20
$25
$30
$35Millions
Total General Fund Revenue by Fiscal Year
117
130
City of Marina TABLE 7
All Governmental Funds Revenues
Last Ten Fiscal Years
Fiscal Year
Ended June 30
Taxes &
Assessments
Licenses,
Permits & Fees
Fines, Penalties
and Forfeitures
Intergov't
Revenues
Chrg for
Services
Investment
Earnings Other Total *
2012 13,873,137$ 189,415$ 187,808$ -$ 7,018,767$ 66,685$ 180,324$ 21,516,136$ 2013 12,370,042 277,547 189,423 - 6,154,287 49,158 536,172 19,576,629 2014 13,403,846 444,470 195,743 - 8,730,551 38,287 108,332 22,921,229 2015 13,859,210 515,123 194,540 - 9,732,507 41,926 1,242,920 25,586,226 2016 ** 14,776,278 545,288 144,598 2,649,113 5,315,358 75,584 1,751,986 25,258,205 2017 *** 15,622,866 672,613 146,415 3,224,446 5,203,312 149,622 546,503 25,565,777 2018 17,513,555 2,127,179 106,116 2,252,459 6,074,165 402,532 3,421,616 31,897,622 2019 **** 21,359,063 2,346,192 102,543 2,069,412 5,136,602 613,259 2,908,808 34,535,879 2020 21,944,005 1,962,170 60,958 15,455,706 6,378,832 973,856 979,403 47,754,930 2021 23,749,197 2,446,456 95,186 2,530,786 8,064,882 679,275 1,224,019 38,789,801 Source: City of Marina Financial Statements
* Excludes interfund transfers in
** Other excludes $37.9 million non-cash capital lease transactions for consistency *** Other excludes $1.6 million non-cash capital assets transactions for consistency **** Other excludes $.66 million non-cash lease transaction for consistency $-
$10
$20
$30
$40
$50
$60Millions
Total Governmental Funds Revenue by Fiscal Year
118
131
City of Marina TABLE 8
Total Outstanding Debt
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental Activities:
General obligation library refunding bonds 8,380,000$ 8,325,000$ 8,260,000$ 7,925,000$ 7,640,000$ 7,555,000$ 7,390,000$ 7,195,000$ 6,970,000$ 6,710,000$ Pension obligation bonds 2,920,000 2,480,000 1,995,000 1,470,000 900,000 275,000 145,000 - - - Total General Obligation Bonds 11,300,000 10,805,000 10,255,000 9,395,000 8,540,000 7,830,000 7,535,000 7,195,000 6,970,000 6,710,000 Revenue bonds - Abrams-B Housing 12,825,000 12,500,000 12,165,000 11,820,000 11,465,000 11,275,000 10,860,000 10,435,000 10,005,000 9,565,000 Redevelopment tax increment bonds 550,000 - - - - - - - - - Limited obligation bonds - Marina Landing 370,000 190,000 - - - - - - - - Limited obligation bonds - Marina Greens 290,000 225,000 155,000 - - - - - - - Total Limited Obligation & Revenue Bonds 14,035,000 12,915,000 12,320,000 11,820,000 11,465,000 11,275,000 10,860,000 10,435,000 10,005,000 9,565,000 Total Bonded Indebtedness 25,335,000 23,720,000 22,575,000 21,215,000 20,005,000 19,105,000 18,395,000 17,630,000 16,975,000 16,275,000 Compensated absences 1,269,238 1,297,518 1,273,047 1,137,080 1,223,211 1,289,557 1,234,374 1,374,294 1,544,477 1,581,280 Capital leases 24,807 234,410 164,532 92,774 18,767 - - 663,156 508,464 596,341 Total Governmental Activities 26,629,045 25,251,928 24,012,579 22,444,854 21,246,978 20,394,557 19,629,374 19,667,450 19,027,941 18,452,621 Business-type Activities:
Promissory note - Preston Park Housing - - - - 35,950,000 35,950,000 35,950,000 35,950,000 35,950,000 35,950,000 - - - - - - - - - - Total Business-type Activities - - - - 35,950,000 35,950,000 35,950,000 35,950,000 35,950,000 35,950,000 Total Debt 26,629,045$ 25,251,928$ 24,012,579$ 22,444,854$ 57,196,978$ 56,344,557$ 55,579,374$ 55,617,450$ 54,977,941$ 54,402,621$ Per Capita income1 23,976$ 25,106$ 25,101$ 24,773$ 25,327$ 26,525$ 28,168$ 29,705$ 30,895$ 33,348$ Personal income1 (in thousands) 479,904$ 507,869$ 509,601$ 521,199$ 546,937$ 587,343$ 631,639$ 681,936$ 689,608$ 730,984$ Debt as percentage of personal income 5.55% 4.97% 4.71% 4.31% 10.46% 9.59% 8.80% 8.16% 7.97% 7.44% Population2 20,016 20,229 20,302 21,039 21,595 22,143 22,424 22,957 22,321 21,920 Total debt per capita 1,330 1,248 1,183 1,067 2,649 2,545 2,479 2,423 2,463 2,482 Taxable Assessed value3 1,418,009,510 1,414,994,415 1,461,630,562 1,561,125,061 1,642,092,991 1,803,719,945 1,924,857,463 2,168,132,130 2,385,745,200 2,599,147,176 Total Debt as % of assessed value 1.88% 1.78% 1.64% 1.44% 3.48% 3.12% 2.89% 2.57% 2.30% 2.09% Notes:
Source: City of Marina Audited Financial Statements
(-) No data available
1 MuniServices LLC (for 2018 estimated 2% increase from prior year) - Personal Income calculated by multiplying per capita income by total population (see 2) 2 California Department of Finance
3 Monterey County Tax Rate Books, as detailed by MuniServices LLC (see Table 11) Fiscal Year Ended June 30
119
132
City of Marina TABLE 9
Bonded Debt
Last Ten Fiscal Years
Fiscal 3 3 3 G.O. Debt
Year Total Less: General as a % G.O. Debt Taxable
Ended Bonded Revenue Obligation of Assessed Per Assessed June 30 Debt Bonds Bonded Debt Value Capita Value1
Population2
2012 25,335,000 14,035,000 11,300,000 0.80% 565 1,418,009,510 20,016 2013 23,720,000 12,915,000 10,805,000 0.76% 534 1,414,994,415 20,229 2014 22,575,000 12,320,000 10,255,000 0.70% 505 1,461,630,562 20,302 2015 21,215,000 11,820,000 9,395,000 0.60% 447 1,561,125,061 21,039 2016 20,005,000 11,465,000 8,540,000 0.52% 395 1,642,092,991 21,595 2017 19,105,000 11,275,000 7,830,000 0.43% 354 1,803,719,945 22,143 2018 18,395,000 10,860,000 7,535,000 0.39% 336 1,924,857,463 22,424 2019 17,630,000 10,435,000 7,195,000 0.33% 313 2,168,132,130 22,957 2020 16,975,000 10,005,000 6,970,000 0.29% 312 2,385,745,200 22,321 2021 16,275,000 9,565,000 6,710,000 0.26% 306 2,599,147,176 21,920 Source: 1 California Municipal Statistics, Inc.Monterey County Auditor-Controller Tax Rate Book 2 California Department of Finance mid-fiscal year (e.g. 2008 population @ 1/1/2008) 3 City of Marina Audited Financial Statements
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Obligation Bonded Debt Outstanding
120
133
City of Marina TABLE 10
Demographic and Economic Statistics
Last ten fiscal years
Fiscal
Year
Population
(1)
Personal
Income (2)
Per Capita
Personal
Income (2)
Median
Age (4)
**Public
School
Enrollment
County
Unemployment
Rate (%) (3)
City
Unemployment
Rate(%) (3)
County
Population
(1)
2011-12 19,808 474,917 23,976 34.6 10,956 - - 419,038
2012-13 19,996 502,020 25,106 35.5 10,730 - - 420,668
2013-14 20,073 503,852 25,101 37.3 10,768 10.1% 6.0% 421,494 2014-15 20,268 502,099 24,773 36.5 10,653 7.6% 5.7% 425,756 2015-16 20,872 528,625 25,327 36.5 10,633 8.1% 6.1% 425,413 2016-17 21,528 571,030 26,525 36.9 10,732 7.6% 5.7% 442,365 2017-18 22,424 631,639 28,168 36.9 10,685 9.4% 3.1% 443,281 2018-19 22,957 681,936 29,705 36.8 10,658 4.7% 2.6% 445,414 2019-20 22,321 689,608 30,895 34.9 10,526 16.8% 19.3% 441,143 2020-21 21,920 730,984 33,348 33.9 9,994 10.8% 10.2% 437,318 **Student Enrollment reflects the total number of students enrolled in the Monterey Peninsula Unified School District.
Other school districts within the City are not accounted for in this statistic. (-) No data available
3.) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department.
4.) Data provided by the United States Census Data Sets Tables.
Source: MuniServices, LLC / an Avenu Insights & Analytics Company
1.) Population Projections are provided by the California Department of Finance
2.) Income Data is derived from previous income adjusted for inflation. 121
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City of Marina TABLE 11
Citywide Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year
Ended
June 30,
Residential
Property
Commercial
Property Other Property
Total Secured
Property
Unsecured
Property
Less Tax-exempt
property
Taxable
Assessed
Value
Total Direct
Tax Rate (1)
Estimated
Actual Taxable
Value (2)
Factor of
Taxable
Assessed
Value (2)
2012 999,890,473$ 210,602,668$ 221,165,490$ 1,431,658,631$ 60,668,484$ 74,317,605$ 1,418,009,510$ 0.195687 -$ - 2013 1,021,168,922 210,455,067 205,553,290 1,437,177,279 58,276,233 80,459,097 1,414,994,415 0.195687 - - 2014 1,042,168,418 214,316,449 236,797,577 1,493,282,444 57,910,086 89,561,968 1,461,630,562 0.195687 - - 2015 1,119,179,396 230,300,136 241,538,459 1,591,017,991 60,026,223 89,919,153 1,561,125,061 0.195687 - - 2016 1,191,143,317 235,961,520 271,722,544 1,698,827,381 60,963,585 117,697,975 1,642,092,991 0.195687 - - 2017 1,304,549,843 239,333,525 323,669,510 1,867,552,878 70,591,640 134,424,573 1,803,719,945 0.195687 2,566,421,120 1.4228490 2018 1,434,005,745 280,826,470 279,447,839 1,994,280,054 70,557,468 139,980,059 1,924,857,463 0.195687 4,227,144,827 2.1960820 2019 1,624,632,460 299,834,075 324,295,905 2,248,762,440 68,650,466 149,280,776 2,168,132,130 0.195687 3,598,481,418 1.6597150 2020 1,832,903,173 299,403,469 349,422,056 2,481,728,698 74,208,552 170,192,050 2,385,745,200 0.195687 4,402,847,247 1.8454809 2021 2,038,469,193 323,010,924 337,595,275 2,699,075,392 74,931,939 174,860,155 2,599,147,176 0.195687 3,863,740,763 1.4865417 (-) No data available
Source: Monterey County Assessor data, MuniServices, LLC (1.) Total direct tax rate is represented by TRA 12-0041 (2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices. Based on these calculations a multiplier value was extrapolated and applied to current assessed values.
*2016-17 is the city's first CAFR; thus prior year data is limited. Historical values have been updated to reflect consistent report methodology. 122
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City of Marina TABLE 12
Total Assessed Value of Property by Use Code, Citywide
Last Ten Fiscal Years ended June 30,
Category 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Residential 999,890,473$ 1,021,168,922$ 1,042,168,418$ 1,119,179,396$ 1,191,143,317$ 1,304,549,843$ 1,434,005,745$ 1,624,632,460$ 1,832,903,173$ 2,038,469,193$ Commercial 210,602,668 210,455,067 214,316,449 230,300,136 235,961,520 239,333,525 280,826,470 299,834,075 299,403,469 323,010,924 Vacant 105,625,465 88,707,295 91,495,277 92,842,928 113,779,359 159,784,721 86,517,557 107,563,261 118,749,943 102,071,314 Industrial 40,617,436 42,004,430 43,126,163 45,472,293 47,528,389 50,935,771 50,311,955 74,410,577 81,659,246 83,292,426 Professional 2,282,284 2,327,927 27,065,788 27,188,660 27,731,885 28,154,791 55,396,279 51,429,463 53,428,857 54,707,908 Miscellaneous 25,260,025 23,492,333 23,885,720 24,134,083 24,581,435 24,859,615 28,798,906 30,396,302 31,701,673 32,438,297 Unknown 10,631,936 10,941,213 11,523,829 11,910,872 18,220,975 18,563,065 14,390,755 14,745,873 15,350,500 15,654,726 Social 11,923,305 12,313,314 13,342,598 13,405,529 13,659,612 13,862,915 14,456,257 14,577,357 14,678,468 14,972,034 Rural 10,401,468 10,607,474 10,817,599 10,896,679 11,112,371 11,280,290 13,054,808 14,390,658 14,250,237 14,522,610 Institution 8,028,441 8,643,639 8,890,706 9,014,743 9,217,872 10,257,867 10,439,846 10,584,094 11,083,917 11,248,345 Recreation 6,395,130 6,515,665 6,649,897 6,672,672 5,890,646 5,970,475 6,081,476 6,198,320 8,519,215 8,687,615 Total Secured Value 1,431,658,631 1,437,177,279 1,493,282,444 1,591,017,991 1,698,827,381 1,867,552,878 1,994,280,054 2,248,762,440 2,481,728,698 2,699,075,392 Unsecured 60,668,484 58,276,233 57,910,086 60,026,223 60,963,585 70,591,640 70,557,468 68,650,466 74,208,552 74,931,939 Exemptions 74,317,605 80,459,097 89,561,968 89,919,153 117,697,975 134,424,573 139,980,059 149,280,776 170,192,050 174,860,155 Total Assessed Value 1,418,009,510$ 1,414,994,415$ 1,461,630,562$ 1,561,125,061$ 1,642,092,991$ 1,803,719,945$ 1,924,857,463$ 2,168,132,130$ 2,385,745,200$ 2,599,147,176$ Source: Monterey County Assessor data, MuniServices, LLC/Avenu Insights & Analytics Use code categories are based on Monterey County Assessor's data 2016/17 is the City's first CAFR publication
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City of Marina TABLE 13
Direct and Overlapping Property Tax Rates
Last Nine Fiscal Years ending June 30,
2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 Basic City and County Levy
Monterey County-Wide 0.246232 0.246232 0.246232 0.246232 0.246232 0.246232 0.246232 0.246232 0.246232 0.246232 County Library 0.022722 0.022722 0.022722 0.022722 0.022722 0.022722 0.022722 0.022722 0.022722 0.022722 City of Marina 0.195687 0.195687 0.195687 0.195687 0.195687 0.195687 0.195687 0.195687 0.195687 0.195687 Monterey County Office of Education 0.026664 0.026664 0.026664 0.026664 0.026664 0.026664 0.026664 0.026664 0.026664 0.026664 Monterey Pen Unified School District 0.437978 0.437978 0.437978 0.437978 0.437978 0.437978 0.437978 0.437978 0.437978 0.437978 Monterey Pen College 0.047299 0.047299 0.047299 0.047299 0.047299 0.047299 0.047299 0.047299 0.047299 0.047299 MCWRA Dist 0.001391 0.001391 0.001391 0.001391 0.001391 0.001391 0.001391 0.001391 0.001391 0.001391 Monterey Regional Park Dist 0.011593 0.011593 0.011593 0.011593 0.011593 0.011593 0.011593 0.011593 0.011593 0.011593 North Salinas Valley Mosquito Abater 0.008347 0.008347 0.008347 0.008347 0.008347 0.008347 0.008347 0.008347 0.008347 0.008347 Moss Landing Harbor Dist 0.002087 0.002087 0.002087 0.002087 0.002087 0.002087 0.002087 0.002087 0.002087 0.002087 TOTAL 1% BREAKOUT 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments
City of Marina debt service 0.004260 0.004484 0.004684 0.004602 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Marina Library 2002 Election Series 2005 0.027300 0.027716 0.028118 0.027962 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Monterey Pen Coll 2002 Ser A & 2005 Refund 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Monterey Pen Coll 2002 Ser B C & 2005 Refund 0.023570 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Monterey Pen Unif SD 2010 Election Series A 0.028790 0.027965 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Monterey Pen CCD 2002 Ser B C & 2005 Refund 0.000000 0.022367 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Monterey Pen CCD 2013 Refund 0.000000 0.000000 0.015772 0.032471 0.023039 0.000000 0.000000 0.000000 0.000000 0.000000 Monterey Pen USD 2010 Ser A & 2012 Election 0.000000 0.000000 0.021309 0.022774 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000 Marina 2015 GO Refunding Bonds 0.000000 0.000000 0.000000 0.000000 0.022348 0.023068 0.021612 0.023200 0.019640 0.022180 Monterey Penn CCD 2002 BC & 2013 Ref AB & 2016 Ref 0.000000 0.000000 0.000000 0.000000 0.000000 0.022336 0.021655 0.021187 0.020484 0.020166 Monterey Pen USD 2010 Ser A & B 0.000000 0.000000 0.000000 0.000000 0.030000 0.030000 0.028902 0.091957 0.117071 0.041454 TOTAL OVERRIDE RATE 0.083920 0.082532 0.069883 0.087809 0.075387 0.075404 0.072169 0.136344 0.157195 0.083800 Total Tax Rate 1.083920 1.082532 1.069883 1.087809 1.075387 1.075404 1.072169 1.136344 1.157195 1.083800 Source: County Auditor/Controller data, MuniServices, LLC /Avenu Insights & Analytics Rates are not adjusted for ERAF
TRA 12-004 is represented for this report
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City of Marina TABLE 14
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
Taxpayer
Taxable Value
($)
Percent of
Total City
Taxable
Value (%)
Taxable Value
($)
Percent of
Total City
Taxable
Value (%)
Hamstra-Appleton LLC 52,816,796 2.03%
Wathen Castanos Peterson Homes Inc Et Al 44,726,865 1.72% Pacific Coast Highway Property LLC 36,893,400 1.42%
LV44 Limited Partnership 35,279,116 1.36% 23,910,328 1.69% HHLP Sanctuary Associates LLC 35,150,640 1.35%
Wal Mart Stores Inc 27,672,137 1.06% 17,500,000 1.23% Target Corporation 26,908,720 1.04% 20,500,000 1.45% Marina Hotels BW LLC 23,567,283 0.91%
Community Hospital Properties Inc 23,341,479 0.90% 14,164,367 1.00% Cemex Inc 21,262,733 0.82% 16,597,536 1.17%
WC Marina LLC 20,447,468 0.79%
Monterey Peninsula Hotels Group LP 20,030,962 0.77%
Happy Homes Marina Dunes LLC 18,703,977 0.72%
Tate Michael J Tr 18,269,718 0.70% 14,842,708 1.05% Alliance Residential Co Inc 15,810,574 0.61% 9,526,380 0.67% Marina Community Partners LLC 15,159,867 0.58% 49,786,254 3.51% New Heritage Family Limited Partnership 14,664,132 0.56% Sierra Pacific Properties Inc 13,871,528 0.53% 8,846,372 0.62% Valle Del Sol Properties LLC Et Al 13,582,953 0.52%
189 Seaside LLC 12,369,808 0.48%
SKN Properties 10,950,168 0.42%
Cypress Gates Inc 10,580,642 0.41% 9,046,717 0.64% Zimmerman Gregory J & Foux Anthony L 9,869,190 0.38%
Cypress Dunes LLC 9,542,317 0.37%
Reservation Estates Apartments LP 9,322,687 0.36%
Shea Marina Village LLC 39,734,415 2.80%
Cypress Marina Heights LP 17,652,823 1.24%
MDR-TMI LLC 11,290,500 0.80%
Kohls Department Stores Inc 10,001,651 0.71%
Ocean Lodging LLC 9,255,919 0.65%
ELS Properties Corporation 8,145,570 0.57%
Brooks William H 7,947,502 0.56%
Marina Cypress Apartments LLC 7,575,910 0.53% Vega Nelson A & Susan J 6,862,412 0.48%
Marina Beach Inn Inc 6,830,244 0.48%
Marina RV LLC 6,395,130 0.45%
Worldmark The Club 6,321,446 0.45%
Nehawandian Abolghassen & Pari 6,084,652 0.43% Burch Roger A & Michele 5,875,132 0.41%
Chee Kyo Nam & Debbie K 5,666,515 0.40%
Total Top 25 Taxpayers 540,795,160 20.81% 340,360,483 24.00% Total Taxable Value 2,599,147,176 100.00% 1,418,009,510 100.00% Source: County Assessor data, MuniServices, LLC/Avenu Insights & Analytics 2020-21 2011-12
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City of Marina TABLE 15
Principal Employers
Business Name
Number of
Employees
Percent of Total
Employment (%)
Monterey Peninsula USD* 265 2.09%
Walmart Supercenter 225 1.77%
Target 197 1.55%
Monterey Regional Waste Mgmt Dist.** 115 1.55%
City of Marina 85 0.91%
Scudder Roofing Company 84 0.67%
Monterey One Water Treatment Plant 83 0.66%
Kohl's 62 0.65%
REI 55 0.49%
Michael's 35 0.43%
Total Top 10 Employers 1,206 10.77%
Total City Labor Force (1) 12,700
2016-17 is the cities first CAFR publication, therefore prior year historical data is not available.
1.) Total City Labor Force provided by EDD Labor Force Data ** Includes Marina and Monterey location.
2020-21
Source: MuniServices, LLC /Avenu Insights & Analytics
Results based on direct correspondence with city’s local businesses. *Only schools located within the City of Marina.
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139
City of Marina
Overlapping Debt Table 16
2020-21 Assessed Valuation: $2,614,034,976
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) Debt 6/30/21 Hartnell Joint Community College District $259,591,667 0.11% $288,147 Monterey Peninsula Community College District 109,868,522 6.325 6,949,184 Monterey Peninsula Unified School District 220,056,122 17.546 38,611,047 North Monterey County Unified School District 30,395,000 0.573 174,163 City of Marina 6,710,000 100 6,710,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $52,732,541 OVERLAPPING GENERAL FUND DEBT:
Monterey County General Fund Obligations $139,253,793 3.53% $4,914,266 Monterey County Board of Education Certificates of Participation 5,006,000 3.529 176,662 North Monterey County Unified School District Certificates of Participation 3,780,000 0.573 21,659 Monterey County Water Resources Agency General Fund Obligations 20,370,000 3.529 718,857 TOTAL GROSS OVERLAPPING GENERAL FUND DEBT $5,831,444
Less: Monterey County supported obligations 116,358
TOTAL NET OVERLAPPING GENERAL FUND DEBT $5,715,086
OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): $53,135,000 65.111 - 100. % $42,422,333 TOTAL DIRECT DEBT $6,710,000
TOTAL GROSS OVERLAPPING DEBT $94,276,318
TOTAL NET OVERLAPPING DEBT $94,159,960
GROSS COMBINED TOTAL DEBT $100,986,318 (2)
NET COMBINED TOTAL DEBT $100,869,960
(2)Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2020-21 Assessed Valuation:
Direct Debt ($6,710,000) 0.26%
Total Direct and Overlapping Tax and Assessment Debt 2.02% Total Direct Debt ($6,710,000) 0.26%
Gross Combined Total Debt 3.86%
Net Combined Total Debt 3.86%
Ratios to Redevelopment Successor Agency Incremental Valuation ($912,334,534):
Total Overlapping Tax Increment Debt 4.65%
Source: Avenu Insights & Analytics
California Municipal Statistics, Inc.
(1)The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
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Page | 1 115105 Concord Circle, Ste. 130, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
To the City Council of the
City of Marina
We hav
e audited the basic financial statements of the City of Marina as of and for the year ended June 30, 2021, and have issued our report thereon dated April 20, 2022. Professional standards require that we advise you of the following matters relating to our audit.
Our
Responsibility under Generally Accepted Auditing Standards and Government Auditing Standards
As
communicated in our engagement letter, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America.
Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our re
sponsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City of Marina solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We
are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Ot
her Information in Documents Containing Audited Financial Statements Purs
uant to professional standards, our responsibility as auditors for other information in documents containing City of Marina ’s audited financial statements doesn’t extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information.
Our re
sponsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
EXHIBIT B
143
Page | 2 115105 Concord Circle, Ste. 130, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to management.
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City of Marina is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during June 30, 2021. No matters have come to our atten tion that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affect ing the financial statements include accumulated depreciation related to capital assets and unfunded liabilities and related expenses based on assumptions in actuarial studies performed on defined benefit plans (GASB 68 and 75).
We evaluated the key factors and assumptions used to develop the identified estimates and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment a nd are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting City of Marina ’s financial statements relate to cash and investments, receivables, capital assets, long-term liabilities, and defined benefit plans.
144
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[email protected] • www.cnallp.com
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. N one of the misstatements identified by us as a result of our audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole or applicable opinion units.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures The material misstatements that we identified as a result of our audit procedures were brought to the attention of, and corrected by, management.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City of Marina’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in a separate letter dated April 20, 2022.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Findings or Issues
In the normal course of our professional association with the City of Marina we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity , and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City of Marina’s auditors. 145
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[email protected] • www.cnallp.com
This report is intended solely for the information and use of the Council and management of the City of Marina and is not intended to be and should not be used by anyone other than these specified parties.
April 20, 2022
Morgan Hill, California
146
Page | 1 15105 Concord Circle, Suite 130 Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
To the City Council and Management of the
City of Marina
Int
roduction and Internal Controls
In pl
anning and performing our audit of the basic financial statements of the City of Marina , as of and for the year ended June 30, 2021 , 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, we considered City of Marina’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Marina ’s internal control over financial reporting.
A de
ficiency 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 reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows:
• Reaso
nably possible. The chance of the future event or events occurring is more than remote but less than likely.
• Probable. The future event or events are likely to occur.
Our
consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses.
Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
As a result of the procedures performed, we have identified the following control deficiency that could increase the likelihood misstatements will not be prevented, detected and corrected in a timely basis:
The
City’s cash accounts were not reconciled in a timely manner in order to properly perfor m year end closing proc edures. As a result, se veral adjusting entries had to be made after the start of our audit.
EXHIBIT C
147
Page | 2 15105 Concord Circle, Suite 130 Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Upcoming Accounting Pronouncements
The following is a summary of new accounting pronouncements from the Governmental Accounting Standards Board:
GASB issued Statement No. 87, Leases
Issued in June 2017, this statement establishes standards of accounting and financial reporting for leases by lessees and lessors. It provides guidance on accounting treatment of lease assets, lease liability, short -term leases, certain regulated leases, measurement for leases other than short -term leases and contracts that transfer ownership, subleases, lease- leaseback transactions, intra- entity leases, and leases between related parties. The statement will be effective beginning fiscal year 2022.
The City is in the process of determining the impact this Statement will have on the financial statements.
GASB Statement No. 91, Conduit Debt Obligations
Issued in May 2019, this statement provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The statement will be effective beginning fiscal year 2023. The City is in the process of determining the impact this Statement will have on the financial statements.
GASB Statement No. 92, Omnibus 2020
Issued in January 2020, this statement was issued for clarity and consistency by addressing practice issues identified from the implementation and application of certain GASB statements. The statement will be effective beginning fiscal year 2022. The City is in the process of determining the impact this Statement will have on the financial statements.
GASB Statement No. 93, Replacement of Interbank Offered Rates
Issued in March 2020, this statement is to address accounting and financial repor ting implications that result from the replacement of an interbank offered rate (IBOR) such as the London Interbank Offered Rate (LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its current form at the end of 2021. The statement will be effective beginning fiscal year 2022. The City is in the process of determining the impact this Statement will have on the financial statements.
GASB Statement No. 94, Public -Private Partnerships and Public- Public Partnerships a nd Availability Payment Arrangements
Issued in March 2020, this statement is to improve financial reporting by establishing the definitions of public -private and public -public partnership arrangements (PPPs) and available payment arrangement (APAs) and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. The statement will be effective beginning fiscal year 2023 . 148
Page | 3 15105 Concord Circle, Suite 130 Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
The City is in the process of determining the impact this Statement will have on the financial statements.
Purpose of Communication
The purpose of this communication, which is an integral part of our audit, is to describe, for management and those charged with governance, the scope of our testing of internal control and the results of that testing , and communicate additional informatio n that may be relevant to future City decision making. Accordingly, this communication is not intended to be and should not be used for any other purpose.
April 20, 2022
Morgan Hill, California
149
May 12, 2022 Item No. 11a
Honorable Mayor and Members
of the Marina City Council
City Council Meeting
of June 7, 2022
CITY COUNCIL CONSIDER ADOPTING RESOLUTION NO. 20 22-,
AMENDING THE RATE ADJUSTMENT CALCULATION OF THE
FRANCHISE AGREEMENT WITH GREEN WASTE RECOVERY
UTILIZING A SECTOR SPECIFIC UNIFORM PERCENTAGE
ADJUSTMENT AND APPROVING MAXIMUM RATES TO BE
CHARGED BY GREENWASTE RECOVERY EFFECTIVE JULY 1, 20 22
FOR COLLECTION OF FRANCHISED SOLID WASTE, RECYCLING,
AND ORGANICS.
REQUEST:
It is requested that the City Council consider:
1. Adopting Resolution No. 20 22- amending the rate adjustment calculation of the franchise agreement with Green Waste Recovery utilizing a sector specific uniform percentage adjustment and approving maximum rates to be charged by Gre en Waste Recovery effective July 1, 2022 for collection of franchised solid waste, recycling, and organics.
BACKGROUND:
On August 19, 2014 , the City Council adopted Resolution No. 2014 -98, and entered into a new exclusive 15 -year Franchise Agreement with Green Waste Recovery (GRW) to provide solid waste, recycling, and organics collection services for the City of Marina. The Agreement provides for automatic annual rate adjustments for GWR’s services calculated following either a multi-index rate adjustment methodology or a cost-based rate adjustment methodology.
On November 2, 20 21, the City Council adopted Resolution No. 20 21-114, approving an amendment to the Franchise Agreement with Green Waste Recovery (GRW) to incorporate changes required by Sena te B ill 1383 (SB 1383) to divert organic waste from landfills. The amended Agreement retained provisions for automatic annual rate adjustments for GWR’s services calculated following either a multi -index rate adjustment methodology or a cost -based rate adjustment methodology.
Cost-based Rate Adjustment Methodology
The cost-based adjustment involves an extensive and detailed review of GWR’s actual cost of operations, changes in inflation, the number of customers, and the service level provided and comparing t his to actual gross receipts collected to determine GWR’s compensation for the current rate period and to forecast the future rates. The cost to perform this review is estimated at $50,000 - $100,000 (which cost w ould be passed onto the rate payer) . A cost-based rate adjustment was performed for rate period 5 in 2019 . Adjustments to the GreenWaste compensation resulted in rate-payer surplu ses of $540,298 in rate perio d 5 , $258,203 in rate period 6, and $175,891 in rate period 7. As a result of the surpluses, rates for marina customers have been fixed at the rates set in 2018.
Multi-index Rate Adjustment Methodology
Each service level rate in the Franchise Agreement rate schedule is comprised of an oper ating component, disposal/processing component and a fee component. The annual rate adjustment consists of adjusting each of the rate components as follows:
1 Continued from May 17, 2022
Operating Component Factor:
• Labor Component: Labor costs from the prior year are adjusted by the a nnual percentage change in the Employment Cost Index (ECI)
• Fuel Component: Fuel costs from the prior year are adjusted by the actual volume of fuel purchased in the prior year and the annual percentage change in the Fuel Index • Other Component: Non labor/fuel related costs from the prior year are adjusted by the annual percentage change of the Consumer Price Index (CPI) Disposal/Processing Component : This component is automatically adjusted as a direct pass - through based on MRWMD fees and the City’s pri or year’s tonnages by material type. The disposal and processing component(s) are based on th e difference between the City’s actual tonnage by material type and what was proposed by GWR in their initial proposal to the City.
The disposal and processing components also consider the tipping fee charged by the Monterey Regional Waste Management Distr ict (MRWMD). At their meeting on May 18 th, 2018 , the MRWMD Board of Directors considered a 7% increase on tipping fees . The public hearing on rate increases is likely to be held at the June 17th, 2022 MRWMD Board of Directors meeting.
The proposed tipping fee increase has been factored into the proposed fee increase for GWR customers. MRWMD rationale for the increased tipping fees is to cover the increased cost due to SB 1383, supply chain and labor cost increases over the past 2 years.
Fee Component : This comp onent is a direct pass through of Franchise fees, calculated as a percent of the total rate by service level.
The rate adjustment for the 20 22/2023 fiscal year was conducted using a variation of the multi- index methodology which was distributed across sect ors by weighted averages in accordance with the methodology agreed upon in 2016 . The changes implemented in 2016 allow for a uniform percentage increase for services.
The Franchise Agreement stipulates that the City of Marina shall make a good faith effort to approve the accuracy of the calculated rates by June 1 of each year, and such ra tes shall be effective on each subsequent July 1. This allows noticing all customers of rate increases. If rates are not effective by July 1 due to a delay caused solely by the City of Marina, GWR may retroactively bill customers for the amount of the rate increase.
ANALYSIS:
GWR provided the City, by way of HF&H Consultants (who represents the City), with the annual rate adjustment calculation (“EXHIBIT B”). “EXHIBIT A” is an executive summary from HF&H reporting the finding that the application for the annual rate adjustment by GWR is consistent with the methodology approved in the prior year.
At the September 15th, 2020 meeting, City Council asked staff to analyze an equitable method of returning the surplus from rate periods 5 and 6 to the rate-payers that paid into the surplus. Staff requested a proposal from HF&H to analyze historical customer data which has been p rovided by GWR. Approval of an agreement with HF&H to p erform this work is an item on tonight’s City Council agenda. If approved, the analysis will be performed over the next few weeks and staff will return with recomme ndations. This process is not tied to the rate increase deadline of July 1st.
Subsequently, a surplus of $175,891 was generated in rate period 7. Given the increase s due to SB 1 383, staff is recommending that the rate period 7 surplus be used to offset rate incre ases over the next two years. Applying $89,227 of the surplus reduces the rate period 8 rate increase from 5.82% to 3.10%.
2 Staff is recommending the sector-based adjustment be used for calculating rates for 2022/2023 in keeping with the methodology approved in 2016.
At the November 2nd, 2021 meeting, City Council expressed an interest in a senior rate structure that is not income qualified . City staff requested that HF&H estimate the impact of creating a discounted rate for senior citizens with 32-gallon waste container service . HF&H modeled the effects of the discount at either a 20% rate reduction, aligning with the CARE program, or a 50% rate reduction. To provide the discounted rate, the other classes would have an additional rate increase above the index rate adjustment to subsidize the loss of revenue from the migratio n to discounted service.
HF&H pulled population data from the United States Census Bureau for the City of Marina to estimate the percentage of the population eligible for the senior discount (+65 years old) o f
13.8%. Using the City’s quarterly reports, HF&H applied the senior popu lation percentage across the residential cart subscription levels to estimate the maximum number of customers that could migrate from standard to discounted service. By calculating th e difference from the standard to the discounted rates, multiplied by the number of eligible customers, HF&H was able to estimate the additional revenue required for the subsidy of these discounted rates.
For a 20% senior discount, an additional $52,311 ( a 1.35% additional rate increase) would need to be subsidized by the othe r rate classes. For a 50% senior discount, an additional $92,145 (a
2.39% additional rate increase) would be subsidized by the other rate classes.
FISCAL IMPACT:
The FY2022/2023 proposed rate adjustment woul d have no effect on City expenses, as this is a cost to the rate payers. The Franchise Agreement has a 15% franchise fee of gross receipts. Any rate increase provides a corresponding increase in franchise fee revenue to the City.
CONCLUSION:
This request is submitted for City Council consideration and possible action.
Respectfully submitted,
____________________________
Brian McMinn, P.E., P.L.S.
Public Works Director/City Engineer
City of Marina
REVIEWED/CONCUR:
____________________________
Layne Long
City Manager
City of Marina
3 RESOLUTION NO. 2022-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA AMENDING THE
RATE ADJUSTMENT CALCULATION OF THE FRANCHISE AGREEMENT WITH
GREEN WASTE RECOVERY UTILIZING A SECTOR SPECIFIC UNIFORM
PERCENTAGE ADJUSTMENT AND APPROVING MAXIMUM RATES TO BE CHARGED BY GREENWASTE RECOVERY EFFECTIVE JULY 1, 2022, FOR COLLECTION OF FRANCHISED SOLID WASTE, RECYCLING, AND ORGANICS.
WHEREAS, the City of Marina entered into a franchise agreement with GreenWaste Recovery (GWR) on August 19, 2014 for solid waste, recycling, and organics collection services for the period of August 1, 2015 through July 31, 2030, and;
WHEREAS, Section 8. 2 of the Franchise Agreement describes the process for an automatic annual adjustment to maximum customer rates on July 1 of each year, based on agreed upon cost indices, changes in tipping fees as the Monterey Regiona l Waste Management District, and the a ctual tonnage for materials collected by GWR, and;
WHEREAS, on November 2, 2021, the City Council adopted Resolution No. 2021 -114, approving an amendment to the Franchise Agreement with Green Waste Recovery (GRW) to i ncorporate c hanges required by Senate Bill 1383 (SB 1383) to divert organic waste from landfills. The amended Agreement retained provisions for automatic annual rate adjustments for GWR’s services calculated following either a multi-index rate adjustment methodology or a cost-based rate adjustment methodology, and; WHEREAS, a cost-based rate adjustment was performed for rate period 5 in 2019. Adjustments to the GreenWaste compensation resulted in rate-payer surpluses of $540,298 in rate period 5, $258,203 in rate period 6, a nd $175,891 in rate period 7. As a result of the surpluses, rates for marina customers have been fixed at the rates set in 2018.
WHEREAS, City staff and third party consultant, HF&H, have reviewed GWR’s calculation of the rate adjustments for FY 2022/2023 and finds the calculations to be accurate and consistent with the methodology and requirements of the franchise agreement, and; WHEREAS, given the increases due to SB 1383, staff is recommending that the rate period 7 surplus be used to offset rate increases over the next two years. Applying $89,227 of the surplus reduces the rate period 8 rate increase from 5.82% to 3.10%.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Marina hereby resolves to approve the rates in Exhibit B that incorporate a 3.1% increase to all single family residential maximum rates authorized to be charged by GWR under the Franchise Agreement, effective July 1, 2022.
PASSED AND ADOPTED by the City Council of the City of Marina at a regular meeting duly held on the 7th day of June 2022, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
Bruce C. Delgado, Mayor
ATTEST:
Anita Sharp, Deputy City Clerk
4 EXHIBIT A
5 6
7 8
9 10
EXHIBIT B
11 12
May 12, 2022 Item No. 11b
Honorable Mayor and Members
of the Marina City Council
City Council Meeting
of June7, 2022
CITY COUNCIL CONSIDER ADOPTING RESOLUTION NO. 20 22-,
APPROVING A CONSULTING SERVICES AGREEMENT BETWEEN
HF&H CONSULTANTS, LLC AND THE CITY OF MARINA TO PERFORM
AN ANALYSIS OF AN EQUITABLE METHOD OF CRE DITING SURPLUS
SOLID WASTE COLLECTION FEES BACK TO RATE PAYERS FOR A FEE NOT TO EXCEED $ 29,910; AUTHORIZING THE CITY MANAGER TO
EXECUTE THE AGREEMENT ON BEHALF OF THE CITY SUBJECT TO
FINAL REVI EW AND APPROVAL BY THE CITY ATTORNEY; AND
AUTHORIZING THE FINANCE DIRECTOR TO MAKE THE NECESSARY
BUDGETARY AND ACCOUNTING ENTRIES.
REQUEST:
It is requested that the City Council consider:
1. Adopting Resolution No. 20 22- approving a Cons ulting Services Agr eement between HF&H Consultants, LLC (HF&H) and the City of Marina to perform an analysis o f an equitable method of crediting surplus solid waste collection fees back to rate p ayers for a fee not to exceed $29,910, and;
2. Authorizing the City Manager to exec ute the agreement (EXHIBIT A) on behalf of the City subject to final review and approval by the City Attorney, and;
3. Authorizing the Finance Director to make the necessary budgetary and accounting entries.
BACKGROUND:
On August 19, 2014, the City Council adopted Resolution No. 2014 -98, and entered into a new exclusive 15 y ear Franchise Agreement with Green Waste Recovery (GRW) to provide solid waste, recycling, and organics collection services for the City of Marina. The Agreement provides for automatic annual rate adjustments for GWR’s services calculated following either a multi-index rate adjustment methodology or a cost-based rate adjustment methodology.
The cost-based adjustment involves an extensive and detailed review of GWR’s actual cost of operations, changes in inflation, the number of customers, and the service level provided and comparing this to actual gross receipts collected to determine GWR’s compensation for the current rate period and to forecast the future rates. A cost-based rate adjustment was performed for rate period 5 in 2019. Adjustments to the GWR compensation resulted in rate -payer surpluses of $540,298 in rate period 5, $258,203 in rate period 6, and $175,891 in rate period 7.
As a result of the surpluses, rates for marina customers have been fixed at the rates set in 2018.
ANALYSIS:
At the September 15th, 2020 meeting, City Council asked staff to analyze an equitable method of returning the surplus from rate periods 5 and 6 to the rate -payers that paid into the surplus. S taff requested a proposal from HF&H ( EXHIBIT B) to analyze historical customer data which has been provided by GWR. If approved, the analysis will be performed over the next few weeks and staff will return to City Council with recommendations. 1 Continued from May 17, 2022
FISCAL IMPACT:
The cost of performing an analysis of an equitable method of crediting surplus solid waste collection fees back to rate payers will be reimbursed by rate payers through t he annual rate setting process established by the franchise agreement.
CONCLUSION:
This request is submitted for City Council consideration and possible action.
Respectfully submitted,
____________________________
Brian McMinn, P.E., P.L.S.
Public Works Director/City Engineer
City of Marina
REVIEWED/CONCUR:
____________________________
Layne Long
City Manager
City of Marina
2 RESOLUTION NO. 2022-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA APPROVING
A CONSULTING SERVICES AGREEMENT BETWEEN HF&H CONSULTANTS,
LLC AND THE CITY OF MARINA TO PERFORM AN ANALYSIS OF AN
EQUITABLE METHOD OF CREDITING SURPLUS SOLID WASTE COLLECTION FEES BACK TO RATE PAYERS FOR A FEE NOT TO EXCEED $29,910;
AUTHORIZING T HE CITY MANAGER TO EXECUTE THE AGREEMENT ON
BEHALF OF THE CITY SUBJECT TO FINAL REVIEW AND APPROVAL BY THE CITY ATTORNEY; AND A UTHORIZING THE FINANCE DIRECTOR TO MAKE THE NECESSARY BUDGETARY AND ACCOUNTING ENTRIES.
WHEREAS, the City of Marina entered into a franchise agreement with GreenWaste Recovery, Inc. (GWR) on August 19, 2014 for solid waste, recycling, and organics collection services for the period of August 1, 2015 through July 31, 2030, and;
WHEREAS, Section 8.2 of the Franchise Agreement provides for automatic annual rate adjustments for GWR’s services calculated following either a multi-index rate adjustment methodology or a cost-based rate adjustment methodology, and;
WHEREAS, a cost-based rate adjustment was performed for rate period 5 in 2019. Adjustments to the GWR compensation resulted in rate-payer surpluses of $540,298 in rate period 5, $258,203 in rate period 6, and $175,891 in rate period 7, and;
WHEREAS, At the September 15th, 2020 meeting, City Council asked staff to analyze an equitable method of returning the surplus from rate periods 5 and 6 to the rate-payers that paid into the surplus. Staff requested a proposal from HF&H (Exhibit B) to analyze historical customer data which has been provided by GWR, and;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Marina hereby:
1. Approves a Consulting Services Agreement (Exhibit A) between HF&H Consultants, LLC and the City of Marina to perform an an alysis of an equitable method of crediting surplus solid waste collection fees back to rate payers for a fee not to exceed $29,910, and;
2. Authorizes the City Manager to execute the agreement on beh alf of the City subject to final review and approval by the City Attorney, and;
3. Authorizes the Finance Director to make the necessary budgetary and accounting entries.
PASSED AND ADOPTED by the City Council of the City of Marina at a regular meeting duly held on the 7th day of June 2022, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
Bruce C. Delgado, Mayor
ATTEST:
Anita Sharp, Deputy City Clerk
3 1
CITY OF MARINA
AGREEMENT FOR PROFESSIONAL SERVICES FOR THE ANALYSIS OF AN
EQUITABLE METHOD OF CREDITING SURPLUS SOLID WASTE
COLLECTION FEES BACK TO RATE PAYERS
THIS AGREEMENT is made and entered into on May , 2022, by and between the City of Marina, a California charter city, her einafter referred to as the "City," and HF&H Consultants, LLC, a California corporation, hereinafter referred to as the "Contractor." City and Contractor are sometimes individually referred to as "p arty" and collectively as "parties" in this Agreement.
Recitals
A. City desires to retain Contractor for perform an analysis of an equitable method of crediting surplus solid waste collection fees back to rate payers for rate periods 5 and 6 of the exist ing franchise agreement between the City of Ma rina and Green Waste Recovery, Inc. – Contractor shall provide services pertaining to the City study and shall perform support services for City as determined by the Public Works Director.
B. Contractor repres ents and warrants that it has the qualifications, experience and personnel necessary to properly perform the services as set forth herein.
C. City desires to retain Contractor to provide such services.
Terms and Conditions
For of good and valuable con sideration, the receipt and sufficiency of which is hereby acknowledged and in consideration of the mutual promises contained herein, City and Contractor agree to the following terms and conditions:
1. Scope of Work.
(a) Contractor is hereby hired and retained by the City to work in a cooperative manner with the City to fully and adequately perform those services set forth in Exhibit “A” attached hereto (“Scope of Work”) and by this refere nce made a part hereof. With prior written notice to Contractor, City may elect to delete certain tasks of the Scope of Work at its sole discretion. (b) Contractor shall perform all such work with skill and diligence and pursuant to generally accepted standards of practice in effect at the time of performance. Cont ractor shall provide corrective services without charge to the City for work which fails to meet these standards and which is reported to Contractor in writing within sixty days of discovery. Should Contractor fail or refuse to perform promptly its obliga tions under this Agreement, the City may render or undertake the performance thereof and the Contractor shall be liable for any expenses thereby incurred.
(c) If services under this Agreement are to be performed by a design professional, as that term i s defined in California Civil Code §2782.8(b)(2), design professional certifies that all design professional services shall be provided by a person or persons duly licensed by the State of California to provide the type of services described in Section 1(a ). By delivery of completed
EXHIBIT A
4 2
work, design professional certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws, and the professional standard of care in California. (d) Contractor is responsi ble for making an independent evaluation and judgment of all relevant conditions affecting performance of the work, including without limitation site conditions, existing facilities, seismic, geologic, soils, hydrologic, geographic, climatic conditions, applicable federal, state and local laws and regulations and all other contingencies or considerations.
(e) City shall cooperate with Contractor and will furnish all information data, records and reports existing and available to City to enable Contractor to carry out work outlined in Exhibit “A." Contractor shall be entitled to reasonably rely on information, data, records and reports furnished by the City, however, the City makes no warranty as to the accuracy or completeness of any such information, dat a, records or reports available to it and provided to Contractor which were furnished to the City by a third party. Contractor shall have a duty to bring to the City's attention any deficiency or error it may discover in any information provided to the Contractor by the City or a third party.
2. Term of Agreement & Commencement of Work.
(a) Unless otherwise provided, the term of this Agreement shall begin on the date of its full executi on and shall expire on December 31, 20 22, unless extended by amen dment or terminated earlier as provided herein. The date of full execution is defined as the date when all of the following events have occurred:
(i) This Agreement has been approved by the C ity's Council or by the board, officer or employee authorized to give such approval, and;
(ii) The office of the City Attorney has indicated in writing its approval of this Agreement as to form, and;
(iii) This Agreement has been signed on behalf of Contractor by the person or persons authorized to bind the Contractor hereto, and;
(iv) This Agreement has been signed on behalf of the City by the person designated to so sign by the City's Council or by the officer or employee authorized to enter into this Contract and is attested to by the Marina City Clerk.
(b) Contractor shall commence work on the Project on or by June 1, 2022. This Agreement may be extended upon written agreement of both parties.
Contractor may be required to prepare a written schedule for the work to be performed, which schedule shall be approved by the City and made a part of Exhibit A, and to perform the work in accordance with the approved schedule.
3. Compensation.
(a) City liability for compensation to Contractor under this Agreement shall only be to the extent of the present appropriation to fund this Agreement. For services to be provided under this Agreement City shall compensate Contractor in an amount not to exceed twenty-nine thousand nine hundred and ten d ollars ($29,910) in accordance with the provisions of thi s Section and the Cost Estimate attached hereto as Exhibit B and incorporated herein by this reference
5 3
(b) Invoice(s) in a format and on a schedule acceptable to the City shall be submitted to and be reviewed and verified by the Project Administrator (see Section 5(a)) and forwarded to the City's Finance Department for payment. City shall notify Contractor of exceptions or disputed items and their dollar value within fifteen days of receipt. Payment of t he undisputed amount of the invoice will typically be made approximately thirty days after the invoice is submitted to the Finance Department.
(c) Contractor will maintain clearly identifiable, complete and accurate records with respect to all costs incur red under this Agreement on an industry recognized accounting basis.
Contractor shall make available to the representative of City all such books and records related to this Agreement, and the right to examine, copy and audit the same during regular busin ess hours upon 24 -hour's notice for a period of fo ur years from the date of final payment under this Agreement.
(d) Contractor shall not receive any compensation for Extra Work without the prior written authorization of City. As used herein, "Extra Work " means any work that is determined by the City to be necessary for the proper completion of the Project but which is not included within the Scope of Work and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
(e) Expenses not otherwise addressed in the Scope of Services or the Fee Schedule incurred by Contractor in performing services under this Agreement shall be reviewed and approved in advance by the Project Administrator (Section 5(a)) and reimbursed to Contractor.
4. Termination or Suspension.
(a) This Agreement may be terminated in whole or in part in writing by either party in the event of a substantial failure by the other party to fulfill its obligations under this Agreement through no fault of the terminating party, provided that no termination may be effected unless the other party is given (1) not less than ten days written notice of intent to terminate, and (2) provided an opportunity for consultation with the terminating party prior to termination.
(b) If termination for default is e ffected by the City, an equitable adjustment in the price provided for in this Agreement shall be made, but (1) no amount shall be allowed for anticipated profit on unperformed services or other work, and (2) any payment due the Contractor at the time of t ermination may be adjusted to cover any additional costs to the City because of the Contractor's default. If after the termination for failure of Contractor to fulfill its contractual obligations, it is de termined that the Contractor had not failed to ful fill contractual obligations, the termination shall be deemed to have been for the convenience of the City.
(c) The City may terminate or suspend this Agreement at any time for its convenience upon not less than thirty days prior written notice to Contra ctor. Not later than the effective date of such termination or suspension, Contractor shall discontinue all affected work and deliver all work product and other documents, whether completed or in progress, to the City.
(d) If termination for default is e ffected by the Contractor or if termination for convenience is effected by the City, the equitable adjustment shall include a reasonable profit for services or other work performed. The equitable adjustmen t for termination shall provide for payment to the Contractor for services rendered and expenses incurred prior to the termination, in 6 4
addition to termination settlement costs reasonably incurred by Contractor relating to written commitments that were executed prior to the termination.
5. Project Administrator, Project Manager & Key Personnel.
(a) City designates as its Project Administrator Public Works Director Mr . Brian McMinn who shall have the authority to act for the City under this Agreement. The Project Administrator or his/her authorized representative shall represent the City in all matters pertaining to the work to be performed pursuant to this Agreement.
(b) Contractor designates ______________, as its Project Manager who shall coordinate all phases of the Project. The Project manager sh all be available to City at all reasonable times during the Agreement term.
(c) Contractor warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. Contractor, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Contractor has represented to City that certain key personnel will perform and coordinate the work under th is Agreement. Should one or more of such personnel become unavailable, Contractor may substitute other personnel of at least equal competence upon written approval of the City. In the event that City and Contractor cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: _______________
6. Delegation of Work.
(a) If Contractor utilizes any subcontractors, consultants, persons , employees or firms having applicable expertise to assist Contractor in performing the services under this Agreement, Contractor shall obtain City's prior written approval to such employment. Contractor's contract with any subcontractor shall contain a p rovision making the subcontract subject to all provisions of this Agreement. Contractor will be fully responsible and liable for the administration, completion, presentation and quality of all work perform ed. City reserves its right to employ other contractors in connection with this Project.
(b) If the work hereunder is performed by a design professional, design professional shall be directly involved with performing the work or shall work through his, her or its employees.
The design professional's re sponsibilities under this Agreement shall not be delegated. The design professional shall be responsible to the City for acts, errors or omissions of his, her or its subcontractors. Negligence of subcontr actors or agents retained by the design profession al is conclusively deemed to be the negligence of the design professional if not adequately corrected by the design professional. Use of the term subcontractor in any other provision of this Agreement shal l not be construed to imply authorization for a de sign professional to use subcontractors for performance of any professional service under this Agreement.
(c) The City is an intended beneficiary of any work performed by a subcontractor for purposes of establishing a duty of care between the subcontractor and the City.
7. Skill of Employees . Contractor shall ensure that any employees or agents providing services under this Agreement possess the requisite skill, training and experience to properly perform such services.
7 5
8. Confidential and Proprietary Information. In the course of performing services under this Agreement Contractor may obtain, receive, and review confidential or proprietary documents, information or materials that are and shall remain the exclusive property of the City.
Should Contra ctor undertake the work on behalf of other agencies, entities, firms or persons relating to the matters described in the Scope of Work, it is expressly agreed by Contractor that any such confidential or proprietary information or materials shall not be provided or disclosed in any manner to any of Contractor’s other clients, or to any other third party, without the City’s prior express written consent.
9. Ownership of Data. Unless otherwise provided for herein, all documents, material, data, drawings, pla ns, specifications, computer data files, basis for design calculations, engineering notes, and reports originated and prepared by Contractor, or any subcontractor of any tier, under this Agreement shall be and remain the property of the City for its use in any manner it deems appropriate. Contractor agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in the City and waives and relinquishes all claims t o copyright or intellectual property rights in fav or of the City. Contractor shall provide two (2) sets of reproducible of the above -cited items, except for the computer data files which shall consist of one (1) set. Contractor shall use all reasonable e fforts to ensure that any electronic files provided to the City will be compatible with the City's computer hardware and software. Contractor makes no representation as to long -term compatibility, usability or readability of the format resulting from the use of software application packages, operating systems or computer hardware differing from those in use by the City at the commencement of this Agreement. Contractor shall be permitted to maintain copies of all such data for its files. City acknowledges that its use of the work product is limited to th e purposes contemplated by the Scope of Work and, should City use these products or data in connection with additions to the work required under this Agreement or for new work without consultation with and without additional compensation to Contractor, Contractor makes no representation as to the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Work and shall have no liability or responsibility whatsoever in connection with such use which shall be at the City's sole risk. Any and all liability arising out of changes made by the City to Contractor's deliverables is waived against Contractor unless City has given Contractor prior written notice of the changes and has received Contractor's written consent to such changes.
10. Conflict of Interest.
(a) Contractor covenants that neither it, nor any officer or principal of its firm has or shall acquire any interest, directly or indirectly, which wo uld conflict in any manner with the interests of the City or which would in any way hinder Contractor’s performance of services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interes t shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the City Manager. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the intere sts of the City in the performance of this Agreeme nt. Contractor shall represent the interest of the City in any discussion or negotiation.
(b) City understands and acknowledges that Contractor may be, as of the date of commencement of services under this Agreement, independently involved in the perf ormance of non-related services for other governmental agencies and private parties. Contractor is unaware of any stated position of the City relative to such projects. Any future position of the City on such projects may result in a conflict of interest for purposes of this section. 8 6
(c) No official or employee of the City who is authorized in such capacity on behalf of the City to negotiate, make, accept, or approve, or take part in negotiating, making a ccepting or approving this Agreement, during the t erm of his or her tenure or service with City and for one year thereafter, shall have any interest, direct or indirect, in this Agreement or the proceeds thereof or obtain any present or anticipated material benefit arising there from.
11. Disclosure. Contractor may be subject to the appropriate disclosure requirements of the California Fair Political Practices Act, as determined by the City Manager.
12. Non-Discrimination.
(a) During the performance of this Agreement the Contractor shall comply with the applicable nondiscrimination and affirmative action provisions of the laws of the United States of America, the State of California and the City. In performing this Agreement, Contractor shall not discriminate, harass, or allow harassment, against an y employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), medical condition (including cancer), age, marit al status, denial of family and medical care leave and denial of pregnancy disability leave. Contractor shall give written notice of its obligations under this clause to labor organizations with which it has a collective bargaining or other agreement.
(b) Contractor shall include the nondiscrimination and compliance provisions of this Section in all subcontracts.
13. Indemnification & Hold Harmless.
(a) Other than in the performance of professional services by a design professional, which shall be sol ely as addressed by subsection (b) below, and to t he full extent permitted by law, Contractor shall indemnify, defend (with independent counsel reasonably acceptable to the City) and hold harmless City, its Council, boards, commissions, employees, official s and agents ("Indemnified Parties" or in the sing ular "Indemnified Party") from and against any claims, losses, damages, penalties, fines and judgments, associated investigation and administrative expenses, and defense costs including but not limited to r easonable attorney’s fees, court costs, expert witness fees and costs of alternate dispute resolution (collectively "Liabilities “), where same arise out of the performance of this Agreement by Contractor, its officers, employees, agents and sub -contractors. The Contractor’s obligation to indemnify applie s unless it is adjudicated that the liability was caused by the sole active negligence or sole willful misconduct of an indemnified party. If it is finally adjudicated that liability is caused by the compa rative active negligence or willful misconduct of an indemnified party, the Contractor’s indemnification obligation shall be reduced in proportion to the established comparative liability of the indemnified party.
(b) To the fullest extent permitted by l aw (including without limitation California Civil Code Sections 2782.8), when the services to be provided under this Agreement are design professional services to be performed by a design professional, as that term is defined under said section 2782.8, Contractor shall indemnify, protect, defend (with independent counsel reasonably acceptable to the City) and hold harmless City and any Indemnified Party for all Liabilities regardless of nature or type that arise out of, pertain to, or relate to the negligen ce, recklessness, or willful misconduct of design professional, or the acts or omissions of an officer, employee, agent or subcontractor of the design professional. The design professional’s obligation to indemnify applies unless it is adjudicated that the liability was caused by the sole active 9 7
negligence or sole willful misconduct of an indemnified party. If it is finally adjudicated that liability was caused by the comparative active negligence or willful misconduct of an indemnified party the design pr ofessional’s indemnification obligation shall be r educed in proportion to the established comparative liability.
(c) All obligations under this section are to be paid by Contractor as incurred by City.
The provisions of this Section are not limited by th e provisions of sections relating to insurance including provisions of any worker's compensation act or similar act. Contractor expressly waives its statutory immunity under such statues or laws as to City, its employees and officials.
Contractor agrees to obtain executed indemnity agreements with provi sions identical to those set forth here in this section from each and every subcontractor, sub tier contractor or any other person or entity involved by, for, with or on behalf of Contractor in the performa nce or subject matter of this Agreement. In the event Contractor fails to obtain such indemnity obligations from others as required here, Contractor agrees to be fully responsible according to the terms of this section. Failure of City to monitor complia nce with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder.
(d) If any action or proceeding is brought against any Indemnified Party by reason of any of the matters against which the Co ntractor has agreed to defend the Indemnified Part y, as provided above, Contractor, upon notice from the City, shall defend any Indemnified Party at Contractor's expense by counsel reasonably acceptable to the City. An Indemnified Party need not have first paid for any of the matters to which it is entitled to indemnification in order to be so defended. If it is finally adjudicated that liability was caused by the sole active negligence or sole willful misconduct of an indemnified party, Contractor may su bmit a claim to the City for reimbursement of reasonable attorney’s fees and defense costs.
(e) This obligation to indemnify and defend City, as set forth herein, is binding on the successors, assigns, or heirs of Contractor and shall survive the termina tion of this Agreement or this Section.
14. Insurance.
(a) As a condition precedent to the effectiveness of this Agreement and without limiting Contractor's indemnification of the City, Contractor agrees to obtain and maintain in full force and effect at its own expense the insurance policies set forth in Exhibit “C” “Insurance” attached hereto and made a part hereof. Contractor shall furnish the City with original certificates of insurance, manually autographed in ink by a person authorized by that insu rer to bind coverage on its behalf, along with cop ies of all required endorsements. All certificates and endorsements must be received and approved by the City before any work commences. All insurance policies shall be subject to approval by the City Att orney and Risk Manager as to form and content.
Specifically, such insurance shall: (1) protect City as an additional insured for commercial general and business auto liability; (2) provide City at least thirty days written notice of cancellation, material reduction in coverage or reduction in limits and ten days written notice for non-payment of premium; and (3) be primary with respect to City's insurance program.
Contractor's insurance is not expected to respond to claims that may arise from the acts or omissions of the City.
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(b) City reserves the ri ght at any time during the term of this Agreement to change the amounts and types of insurance required herein by giving Contractor ninety days advance written notice of such change. If such change should result in substantial additional cost of the Contractor, City agrees to negotiate additional compensation proportional to the increased benefit to City.
(c) All required insurance must be submitted and approved the City Attorney and Risk Manager prior to the inception of any operations by Contractor.
(d) The required coverage and limits are subject to availability on the open market at reasonable cost as determined by the City. Non availability or non affordability must be documented by a letter from Con tractor's insurance broker or agency indicating a good faith effort to place the required insurance and showing as a minimum the names of the insurance carriers and the declinations or quotations received from each. Within the foregoing constraints, Contractor's failure to procure or maintain required in surance during the entire term of this Agreement shall constitute a material breach of this Agreement under which City may immediately suspend or terminate this Agreement or, at its discretion, procure or r enew such insurance to protect City's interests an d pay any and all premium in connection therewith and recover all monies so paid from Contractor.
(e) By signing this Agreement, Contractor hereby certifies that it is aware of the provisions of Section 3700 et seq., of the Labor Code which require every employer to be insured against liability for Workers' Compensation or to undertake self -insurance in accordance with the provision of that Code, and that it will comply with such provisions at all such time s as they may apply during the performance of the work pursuant to this Contract. Unless otherwise agreed, a waiver of subrogation in favor of the City is required.
15. Independent Contractor. The parties agree that Contractor, its officers, employees and agents, if any, shall be independent contractors with regard to the providing of services under this Agreement, and that Contractor's employees or agents shall not be considered to be employees or agents of the City for any purpose and will not be enti tled to any of the benefits City provides for its employees. City shall make no deductions for payroll taxes or Social Security from amounts due Contractor for work or services provided under this Agreement.
16. Claims for Labor and Materials . Contractor shall promptly pay when due all amounts payable for labor and materials furnished in the performance of this Agreement, so as to prevent any lien or other claim under any provision of law from arising against any City property (including reports, documents, and other tangible matter produced by the Cont ractor hereunder), against the Contractor's rights to payments hereunder, or against the City, and shall pay all amounts due under the Unemployment Insurance Act with respect to such labor.
17. Discounts. Contractor agrees to offer the City any discount terms that are offered to its best customers for the goods and services to be provided herein, and apply such discounts to payment made under this Agreement which meet the discount terms.
18. Cooperation; Further Acts . The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
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19. Dispute Resolution. If any dispute arises between the parties as to proper interpretation or application of this Agreement, the parties shall first meet and confer in a good faith attempt to resolve the matter between themselves. If the dispute is not resolved by meeting and conf erring, the matter shall be submitted for formal m ediation to a mediator selected mutually by the parties.
The expenses of such mediation shall be shared equally between the parties. If the dispute is not or cannot be resolved by mediation, the parties may mutually agree (but only as to those issues of the matter not resolved by mediation) to submit their dispute to arbitration. Before commencement of the arbitration, the parties may elect to have the arbitration proceed on an informal basis; however, if the parties are unable so to agree, then the arbi tration shall be conducted in accordance with the rules of the American Arbitration Association. The decision of the arbitrator shall be binding, unless within thirty days after issuance of the arbitrator’s written decision, any party files an action in co urt. Venue and jurisdiction for any such action between the parties shall lie in the Superior Court for the County of Monterey.
20. Compliance With Laws.
(a) Each party's performance hereunder shall c omply with all applicable laws of the United States of America, the State of California and the City including but not limited to laws regarding health and safety, labor and employment, wage and hours and licensing laws which affect employees. This Agreement shall be governed by, enforced and interpreted under the laws of the State of California. Contractor shall comply with new, amended or revised laws, regulations or procedures that apply to the performance of this Agreement.
(b) If the Project is a "public work," or prevailing wages are otherwise r equired, Contractor shall comply with all provision of California Labor Code section 1720 et seq. , as applicable, and laws dealing with prevailing wages, apprentices and hours of work.
(c) Contractor represents that it has obtained and presently holds a ll permits and licenses necessary for performance hereunder, including a Business License required by the City's Business License Ordinance. For the term covered by this Agreement, the Contractor shall maintain or obtain as necessary, such permits and lic enses and shall not allow them to lapse, be revoked or suspended.
21. Assignment or Transfer . This Agreement or any interest herein may not be assigned, hypothecated or transferred, either directly or by operation of law, without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
22. Notices. All notices required or permit ted to be given under this Agreement shall be in writing and shall be personally delivered, sent by facsimile ("fax") or certified mail, postage prepaid with return receipt requested, addressed as follows:
To City: City Manager
City of Marina City Hall
211 Hillcrest Avenue
Marina, California 93933
Fax: (831) 384-9148
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To Contractor: ____________________
____________________
____________________
____________________
Fax (___) ___-____
Notice shall be deemed effective on the date personally delivered or transmitted by facsimile or, if mailed, three days after deposit in the custody of the U.S. Postal Service. A copy of any notice sent as provided herein shall also be delivered to the Project Administrator and Project Manager.
23. Amendments, Changes or Modifications . This Agreement is not subject to amendment, change or modification except by a writing signed by the authorized representatives of City and Contractor.
24. Force Majeure . Notwithstanding any other provisi ons hereof, neither Contractor nor City shall be held responsible or liable for failure to meet their respective obligations under this Agreement if such failure shall be due to causes beyond Contractor's o r the City's control. Such causes include but are not limited to: strike, fire, flood, civil disorder, act of God or of the public enemy, act of the federal government, or any unit of state of local government in either sovereign or contractual capacity, epidemic, quarantine restriction, or delay in tran sportation to the extent that they are not caused by the party's willful or negligent acts or omissions, and to the extent that they are beyond the party's reasonable control.
25. Attorney's Fees . In the event of any controversy, claim or dispute relatin g to this Agreement, or the breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorney's fees and costs.
26. Successors and Assigns. All of the t erms, conditions and provisions of this Agreement shall apply to and bind the respective heirs, executors, administrators, successors, and assigns of the parties. Nothing in this paragraph is intended to affect the limitation on assignment.
27. Authority to Enter Agreement . Contractor has all requisit e power and authority to conduct its business and to execute, deliver and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right and authority to make this Agreement and bind each respective party.
28. Waiver. A waiver of a default of any term of this Agreement shall not be construed as a waiver of any succeeding default or as a waiver of the provision itself. A party's performance after the other party's default shall not be construed as a waiver of that default.
29. Severability. Should any portion of this Agreement be determined to be void or unenforceable, such shall be severed from the whole and the Agreement will continue as modified.
30. Construction, References, Captions. Since the parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any party. Any term referencing time, day s or period for performance shall be deemed calendar days and not workdays. The captions of the various sections are for convenience and ease of reference only, and do not define, limit, augment or describe the scope, content or intent of this Agreement. 13 11
31. Advice of Counsel. The parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms and conditions of this Agreement, and that the decision of whether or not to seek the advice of counsel with respect to this Agreement is a decision which is the sole responsibility of each of the parties hereto. This Agreement shall not be construed in favor or against either party by reason of the extent to which each party participated in the drafting of this Agreement.
32. Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
33. Time. Time is of the essence in this contract.
34. Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the matters as set forth in this Agreement, and no other agreement, statement or promise made by or to any party or by or to any employee, officer or agent of any party, which is not contained in this Agreement shall be binding or v alid. . The exhibits attached hereto are incorporated into this Agreement. In the event of a conflict between the terms of this Agreement and any exhibit, the terms of this Agreement shall control.
IN W ITNESS WHEREOF , Contractor and the City by their d uly authorized representatives, have executed this Agreement, on the date first set forth above, at Marina, California.
CITY OF MARINA CONTRACTOR
By: ________________________ By: _________________________ Name: Layne P. Long Name:
Its: City Manager Its:
Date: _______________________ Date: ___________________
Approved as to form:
By:
City Attorney
14 EXHIBIT A
SCOPE OF SERVICES
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C-1
Exhibit C - Insurance
Contractor agrees to provide insurance in accordance with the requirements set forth herein. If Contractor uses existing coverage to comply with these requ irements and that coverage does not meet the requirements set forth herein, C ontractor agrees to amend, supplement or endorse the existing coverage to do so. Contractor shall furnish the City with original certificates of insurance, manually autographed i n ink by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by the City before any work commences. The City reserves its right to require complete, certified copies of all required insurance policies at any time. The following coverage will be provi ded by Contractor and maintained on behalf of the City and in accordance with the requirements set forth herein.
Commercial General Liability (primary). Commercial general liabil ity insurance covering Contractor's operations (and products where applicable) is required whenever the City is at risk of third party claims which may arise out of Contractor's work or presence on City premises.
Contractual liability coverage is a required inclusion in this insurance.
Primary insurance shall be provided on ISO-CGL form No. CG 00 01 11 85 or 88 or on an ISO or ACORD form providing coverage at least as broad as ISO form CG 00 01 10 01 and approved in advance by the City Attorney and Risk M anager. Total limits shall be no less than one million dollars ($1,000,000) combined single limit per occurrence for all coverages. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Project or the general aggregate limi t shall be two million dollars ($2,000,000). Contractor must give written notice to the City of any pending claim, action or lawsuit which has or may diminish the aggregate. If any such claim or lawsuit exists, Contractor shall be required, prior to comm encing work under this Agreement, to restore the impaired aggregate or prove it has replacement insurance protection to the satisfaction of the City Attorney and Risk Manager.
City, its Council, boards and commissions, officers, employees, agents and volu nteers shall be added as additional insureds using ISO additional insured endorsement form CG 20 10 11 85 or forms CG 20 10 10 01 and CG 20 37 10 01. Coverage shall apply on a primary, non-contributing basis in relation to any other insurance or self -insurance, primary or excess, available to the City or any agent of City. Coverage is not expected to respond to the claims which may arise from the acts or omissions of the City. C overage shall not be limited to the vicarious liability or supervisory role o f any additional insured. Coverage shall contain no contractors' limitation endorsement. There shall be no endorsement or modification limiting the scope of coverage for liability arising from pollution, explosion, collapse, underground property damage o r employment-related practices.
Umbrella Liability Insurance. Umbrella liability insurance (over primary) shall apply to bodily injury/property damage, personal injury/adver tising injury, at a minimum, and shall include a “drop down” provision provid ing primary coverage above a maximum $25,000.00 self -insured retention for liability not covered by primary policies but covered by the umbrella policy.
Coverage shall be following form to any underlying coverage.
17 C-2
Coverage shall be provided on a “pa y on behalf” basis, with defense costs payable in addition to policy limits. There shall be no cross liability exclusion and no contractor's limitation endorsement. Policies lim its shall be not less than one million dollars ($1,000,000) per occurrence and in the aggregate, above any limits required in the underlying policies shall have starting and ending dates concurrent with the underlying coverage.
Business Auto. Automobile liability insurance is required where vehicles are used in performing the work under this Agreement or where vehicles are driven off -road on City premises, it is not required for simple commuting unless City is paying mileage. However, compliance with California law requiring auto liability insurance is a contractual requirement.
If automobile insurance is required for work under this Agreement, primary coverage shall be written on ISO Business Auto Coverage form CA 00 01 06 92 including symbol 1 (Any A uto) or on an ISO or ACORD form providing coverage at least as broad as CA 00 01 10 01 approved by the City Attorney and Risk Manager. Coverage shall be endorsed to stated that the City, its Council, boards and commissions, officers, employees, agents and volunteers shall be added as additional insureds with respect to the ownersh ip, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Contractor or for which the Contractor is responsible. Limits shall be no less than one million dollars ($1,000,000) combined single limit per accide nt for bodily injury and property damage. Starting and ending dates shall be concurrent. If Contractor owns no autos, a non -owned auto endorsement to the commercial general liability policy described above is acceptable.
Workers’ Compensation/Employers’ Liability. Workers' Compensation and Employer's Liability insurance are not required for single-person contractors. However, under California law these coverages (or a copy of the State's Consent to Self -Insure) must be provided if Contractor has any employees at any time during the period of this Agreement. Policy(s) shall be written on a policy form providing workers’ compensation statutory benefits as required by law.
Employers’ liability limits shall be no less than one million dollars ($1,000,000) per accident or disease and shall be scheduled under any umbrella policy described above. Unless otherwise agreed, policy(s) shall be endorsed to waive any right of subrogation as respects the City, its Council, boards and commissions, officers, employees, agents and volunteers.
Property Insurance. Property insurance, in a form and amount approved by the City Attorney and Risk Manager, is required for Contractors having exclusiv e use of premises or equipment owned or controlled by the City. City is to b e named a Loss Payee As Its Interest May Appear in property insurance in which the City has an interest, e.g., as a lien holder. Fire damage legal liability is required for persons occupying a portion of City premises.
C-2
Errors and Omissions/Profe ssional Liability. Errors and Omissions or professional liability coverage appropriate to Contractor's profession, in a form and amount approved by the City Attorney and Risk Man ager, will be specified on a project -by-project basis if Contractor is working as a licensed professional. Contractor shall maintain such insurance for a period of five years following completion of the project. Such insurance shall be in an amount of no t less than one million dollars ($1,000,000) per claim and in annual aggregat e. Design professionals shall maintain such insurance in place until the expiration of the warranty period of the Project.
18 C-3
Contractor and City further agree as follows:
a) This Exhibit supersedes all other sections and provisions of this Agreement t o the extent that any other section or provision conflicts with or impairs the provisions of this Exhibit.
b) Nothing contained in this Exhibit is to be construed as affecting or altering the legal status of the parties to this Agreement. The insurance requirements set forth in this Exhibit are intended to be separate and distinct from any other provision in this Agreement and shall be interpreted as such.
c) All insurance co verage and limits provided pursuant to this Agreement shall apply to the full extent of the policies involved, available or applicable. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the applicatio n of such insurance coverage.
d) Requirements of specific coverage features or limits contained in this Exhibit are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. S pecific reference to a given coverage feature is for purposes of clarificatio n only and is not intended by any party to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
e) For purposes of insurance coverage only, this Agr eement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or toward performance of this Agreement.
f) All general or auto liability insurance coverage provided pursuant to this Agreement, or any other agreements pertaining to the performance of this A greement, shall not prohibit Contractor, Contractor’s employees, or agents from waiving the right of subrogation prior to a loss. Contractor hereby waives all rights of subrogation against the City.
g) Unless otherwise approved by City, Contractor’s insurance shall be written by insurers authorized and admitted to do business in the State of California with a minimum “Best’s” Insurance Guide Rating of “A:VII.” Self -insurance will not be considered to comply with these insurance specifications.
h) In t he event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be prom ptly reimbursed by Contractor.
i) Contractor agrees to provide evidence of the insurance required herein, satisfactory to City Attorney and Risk Manager, consisting of certifica te(s) of insurance evidencing all of the coverages required and an additional endorsement to Contractor’s general liability and umbrella liability policies using ISO form CG 20 10 11 85. Certificate(s) are to reflect that the insurer will provide at least thirty days written notice of cancellation, material reduction in coverage or reduction in limits and ten days written notice for non-payment of premium. Contractor agrees to require its insurer to modify such certificates to delete any exculpatory wordin g stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions. Contractor agrees to provide complete copies of policies to City within ten days of City's request for said copies.
19 C-4
j) Contractor shall provide proof that pol icies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof w ill be furnished at least two weeks prior to the expiration of the coverages.
k) Any actual or alleged failure on the part of the City or any other additional insured under these requirements to obtain proof of insurance required under this Agreement in no way waives any right or remedy of City or any additional insured, in this or any other regard.
l) Contractor agrees to require all subcontractors or other parties hired for this Project to provide workers' compensation insurance as required herein and general liability insurance naming as additional insureds all parties to thi s Agreement. Contractor agrees to obtain certificates evidencing such coverage and make reasonable efforts to ensure that such coverage is provided as required here. Contractor agrees to require that no contract used by any subcontractor, or contracts Co ntractor enters into on behalf of City, will reserve the right to charge back to City the cost of insurance required by this Agreement. Contractor agrees that upon request, all a greements with subcontractors or others with whom Contractor contracts with on behalf of City, will be submitted to City for review. Contractor acknowledges that such contracts or agreements may require modification if the insurance requirements do not re flect the requirements herein. Failure of City to request copies of such agre ements will not impose any liability on City, its Council, boards and commissions, officers, employees, agents and volunteers.
m) If Contractor is a Limited Liability Company, g eneral liability coverage must be amended so that the Limited Liability Compa ny and its Managers, Affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.
n) Contractor agrees to provide immediate notice to C ity of any claim or loss against Contractor that includes City as a defendant . City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve the City.
o) Coverage will not be limited to the specific location or indivi dual entity designated as the address of the Project. Contractor agrees to have its coverage endorsed so that all coverage limits required pursuant to this requirement are available separately for each and every location at which Contractor conducts opera tions of any type on behalf of City. Contractor warrants that these limits will not be reduced or exhausted except for losses attributable to those specific locations and not by losses attributable to any other operations of Contractor.
p) Contractor agrees not to attempt to avoid its defense and indemnity obligations to City, its Council, boards and commissions, officers, employees, agents and volunteers by using as a defense Contractor's statutory immunity under workers' compensation or similar statutes.
r) Contractor agrees to ensure that coverage provided to meet these requirements is applicable separately to each insured and that there will be no cross liability exclusions that preclude coverage for suits between Contractor and City or between City and any other insured or Named Insured under the policy, or between City and any party associated with City or its employees.
20 C-5
s) Contractor shall maintain commercial general li ability, and if necessary, commercial umbrella liability insurance, with a li mit of not less than one million dollars ($1,000,000) each occurrence for at least three years following substantial completion of the work.
21 EXHIBIT B
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24 25
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May 25, 2022 Item No. 11c
Honorable Mayor and Members City Council Meeting
of the Marina City Council of June 7, 2022
THE CITY COUNCIL CONSIDER ADOPTING RESOLUTION NO. 2022 -,
AUTHORIZING PURSUIT OF A LEASE AGREEMENT WITH THE
TRANSPORTATION AGENCY OF MO NTEREY COUNTY TO LEA SE A
PORTION OF THE MONTEREY BRANCH LINE TO BE USE D FOR
RECREATIONAL PURPOSES , SELECTING AN OPERATOR FOR THE
MONTEREY BRANCH LINE, AND DETERMINING THE TERM OF
LEASE FOR THE OPERATOR.
RECOMMENDATION: City Council consider
(1) Authorizing pursuit of a lease agreement with the Transportation Agency of Monterey County (TAMC) to lease a portion of the Monterey Branch Line to be used for recreational purposes; and,
(2) Selecting an operator for the Monterey Branch Line and determining the term of lease for the operator.
SUMMARY:
Provides an overview of two unsol icited proposals for te mporary recreational use of a portion of the Monterey Branch Line, including a section within Marina City limits.
BACKGROUND:
The Transportation Agency of Monterey County (TAMC) received two unsolicited proposals for temporary use of a portion of the TAMC-owned Monterey Branch Line, including a section within Marina City limits. The TAMC Board of Supervisors directed their staff to pursue leasing a portion of the Monterey Branch Line to the City of Marina, which would ultimately be responsible for performing CEQA analysis for the project and issuing permits to the winning proposal. A lease agreement between TAMC, the City of Marina, and the winning proposal would formalize operation requirements and conditions of approval.
The City Council may reject both proposals or decide to pursue a lease agreement with one of the operators. Due to the nature of each operation and the linear arrangement of the Monterey Branch Line, both operations cannot use the right-of-way in tandem. The staging area for either operation would be located in the City of Marina near the intersection of Del Monte Boulevard and Palm Avenue, and the City will take the lead in determining what conditions of approval should apply to a permitted temporary use.
Planning staff have analyzed proposals from the Museum of Handcar Technology (received April 12, 2022) and Mendocino Railway (received April 20, 2022) for completeness, intensity of proposed uses, types of improvements proposed at the staging area, and impacts to surrounding land uses, including residential uses. Either use presents challenges, and a design review committee (DRC) was assembled to review and provide input on each proposal. DRC comments are included in EXHIBIT A. An analysis of each proposal is included below.
1 Museum of Handcar Technology
The proposal consists of human-powered push handcars operating on a 4-mile segment of rail between Marina and a point near the southern edge of Fort Ord Dunes State Park. The operator would serve about 1,300 customers per month, primarily on Saturdays and Sundays with some trips on Fridays and holidays. The operator seeks to provide trips year-round but is amenable to seasonal operations if the City will not sanction year-round use of the staging area. Hours of operation would be 9 a.m. to 5 p.m. (8 p.m. during the summer).
The operator proposes to surface a portion of the TAMC and City right-of-way with compacted road base to accommodate 25 parking spaces and one paved ADA-compliant space. Access to the parking area would be via Marina Drive. A split-rail fence would be installed around the parking and staging area. The operator also proposes to install an at-grade crossing where the railway intersects with the Monterey Bay Coastal Recreation Trail, approximately one-third mile south of the staging area.
The operator has prior experience working in Marina and utilized the same staging area and a similar stretch of railway for operations last year. Additional changes to this year’s proposal include storage containers for overnight storage of handcars (as opposed to metal security fencing), a portable audio system for safety briefings oriented toward Del Monte Boulevard (as opposed to residences on Marina Drive), and a loading area consisting of a platform of stone pavers (as opposed to an unimproved surface). The operator is requesting to be assigned an address and requires 200-amp electrical service.
Mendocino Railway
The proposal consists of human- and battery-powered railbikes operating on a 4-mile segment of rail between Marina and a point near the southern edge of Fort Ord Dunes State Park. The operator would serve 8,000 customers in the first year of operations and more than 20,000 customers in subsequent years. The operator seeks to provide trips year-round. Hours of operation would be 8 a.m. to 9 p.m., with seasonal adjustments as necessary.
The operator has no prior experience working in Marina. The proposal includes a storage container within the staging area where bikes would be stored and charged overnight. Electrical power would be provided by a solar array on the roof of the storage container or via a connection from a nearby PG&E line. The project would require 6-10 employees.
DISCUSSION:
The DRC reviewed both proposals and provided comments, included in EXHIBIT A. Concerns center primarily on providing adequate access to and from the site, providing appropriate facilities on site, making improvements to accommodate operations, and mitigating potential impacts to adjacent uses, including multifamily residences near the staging area. Specific points of concern include the lack of restroom facilities in each proposal, the need to move storage containers out of an emergency access road parallel to Marina Drive, insufficient information about proposed facilities, and questions about how trash, noise, and traffic impacts will be addressed.
The City Council has discretion to determine which proposal, if any, may operate within the TAMC right-of-way. If the City Council selects a proposal, the operator will be required to obtain an encroachment permit from the Public Works Department and sign a lease agreement with the city.
City staff will attach relevant findings and conditions of approval to the encroachment permit and/or lease agreement.
2 Attached is the draft lease agreement from TAMC (“EXHIBIT B”). Key provisions of the agreement are:
• The initial term of the agreement will be up to two (2) years • The city will be the lead agency under the California Environmental Quality Act (CEQA). • The lease is $4,248 for Area 1 then $3,035 for Area 2 (if needed) and Area 3 $1175 for the parking and storage area.
• The TAMC lease will only allow for recreational uses within the project area.
FISCAL IMPACT:
Planning staff w ould develop a fee agreement with the selected proposal and require the applicant to cover all costs associated with staff review and analysis prior to issuing an y permits.
There would be no direct impact to the budget.
ENVIRONMENTAL REVIEW:
After a proposal is selected by the City Council , staff will determine what level of CEQA analysis is required prior to issuing permits. As the lead agency, City staff will coordinate CEQA analysis with Monterey County and TAMC . Currently we are expecting a Notice of Exemption with detailed background material to cost the selected vendor between $5,000-$10,000 as the railway already has detailed habitat and plant species documented for the project area.
CONCLUSION:
This request is submitted for City Council consideration and comment.
Respectfully submitted,
Alec Barton, AICP
Contract Planner
City of Marina
REVIEWED/CONCUR:
Guido F. Persicone, AICP
Community Development Director
City of Marina
_____________________________
Layne Long
City Manager
City of Marina
3 RESOLUTION NO. 2022-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA
AUTHORIZING PURSUIT OF A LEASE AGREEMENT WITH THE
TRANSPORTATION AGENCY OF MONTEREY COUNTY TO LEASE A
PORTION OF THE MONTEREY BRANCH LINE TO BE USED FOR
RECREATIONAL PURPOSES, SELECTING AN OPERATOR FOR THE
MONTEREY BRANCH LINE, AND DETERMINING THE TERM OF LEASE FOR THE OPERATOR.
WHEREAS, the City of Marina received two unsolicited proposals for tempo rary recreational use of a portion of the Monterey Branch Line; and
WHEREAS, the City Council can reject both proposals or select one to operate within the Monterey Branch Line right-of-way on a temporary basis; and
WHEREAS, the decision of the City Council authorizes City staff to formalize a lease agreement with the selected operator, perform any required CEQA analysis, and issue any required permits prior to use of the Monterey Branch Line.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Marina that does hereby:
(1) Select (Mendocino Railway / Museum of Handcar Technology) to operate within the Monterey Branch Line right-of-way on a temporary basis, subject to the conditions of a pproval in a val id lease agreement and a ny required permits; and
(2) Direct staff to formalize a lease agreement with (Mendocino Railway / Mus eum of Handcar Technology), perform any required CEQA analysis, and issue any required permits prior to use of the Monterey Branch Line.
PASSED AND ADOPTED by the City Council of the City of Marina at a regular mee ting duly held on the 7th day of June, by the following vote:
AYES, COUNCIL MEMBERS:
NOES, COUNCIL MEMBERS:
ABSENT, COUNCIL MEMBERS:
ABSTAIN, COUNCIL MEMBERS:
_________________________
Bruce C. Delgado, Mayor
ATTEST:
_____________________________
Anita Sharp, Deputy City Clerk
4 EXHIBIT A
Building
Parking, restroom facilities, path of travel from parking to the designated loading area
Fire
1. Fire is requiring an Emergency Response Plan to be approved by the Fire Department prior to operation that includes Seaside Fire (This project falls within both the Marina and Seaside Fire Departments’ response area)
2. All adopted Marina City Fire Code ordinances are followed
3. The final plot plan to be approved by the Fire Department. The Fire Department will check for access and hydrants
Engineering
Museum of Handcar Technology
1. Any improvements or staging within the City right-of-way will require an Encroachment Permit. Review the attached permit application form for standard conditions and submittal requirements.
2. The following additional information and clarifications will be required for your permit application:
a. Provide a structural section for the parking lot road base. Show grades (directional % grades and spot elevations) for the general parking lot area. b. For the ADA parking space, a site-specific detail will be required showing compliance to current parking standards.
c. Since your proposed operational window is year-round, provide a plan sheet for how stormwater best management practices will be implemented on your project site.
d. Provide details for installation of the proposed wooden fencing. Will this require concrete foundations for your posts?
e. Will the ticket booth and handcar shed require a concrete foundation? f. Will any grading take place (e.g. moving dirt to level the site)? Moving more than 2,500 sq ft or 50 cubic yards of soil will require a grading permit. g. Will there be any trimming or other impacts to local trees? Please see City Municipal Code Chapter 17.62 and coordinate directly with the Planning Division should any trees be impacted in the vicinity of your project site.
3. The location proposed for the storage containers is not approved as it blocks an emergency access road that traverses parallel to Marina Drive. Relocate your storage containers off of the access road.
4. Any addressing for the site will require a New Address application through the Public Works Department.
Mendocino Railway
1. Any improvements or staging within the City right-of-way will require an Encroachment Permit. Review the attached permit application form for standard conditions and submittal requirements.
2. Submit a preliminary site plan showing the locations of:
a. Storage container(s)
b. Staging area
c. Turntables
d. Charging stations
e. Parking area
5 Transportation Agency for Monterey County – City of Marina Lease S:\00 - CITY CLERK\2 - Agenda-Staff Reports - DRAFT\2022 Reports\June 7\11c - Exhibit B - TAMC and City of Marina MBL Lease.docx
DRAFT - LEASE
This LEASE AGREEMENT, hereinafter called “LEASE” is made between the TRANSPORTATION AGENCY FOR MONTEREY COUNTY, hereinafter called “LESSOR” and the CITY OF MARINA, hereinafter called “LESSEE” as of the last date opposite the respective signatures below as follows:
1. DESCRIPTION OF PREMISES
The LESSOR hereby leases to LESSEE, and TENANT hires from LESSOR, on the terms and conditions hereinafter set forth, in a nonexclusive grant lease, those certain premises (Premises) known as the property (hereafter referred to as the “Property”). a. Exhibit A depicts three sub-components of the Property, identified as Area 1, Area 2 and Area 3.
b. The Property includes an encroachment into the LESSOR’s railroad right of way, located in the County of Monterey, for an approximate length of three and a half (3.5) miles from the Palm Avenue and Marina Drive intersection in Marina, under the Highway 1 overcrossing and over the bike path, to the balloon spur tracks in the Fort Ord Dunes State Park (Area 1), with a possible additional two and a half (2.5) miles towards Sand City (Area 2). There is also an area of fifty (50) by two hundred and twenty-five (225) feet for a fenced in storage area along the railroad tracks in the City of Marina near Marina Drive and Palm Avenue (Area 3). Besides the railroad track, there are no buildings or permanent structures on the Premises.
c. The LESSEE is directly overseeing recreational uses outlined in the SUBLESSEE’s proof of concept for the Project (Project).
d. LESSEE agrees to prohibit entry to the Property to anyone not participating in the leased activities.
2. TERM
The initial term shall be two (2) years and the term of this Lease shall begin on xx date (“Lease Commencement Date”) and will continue until xx date terminated sooner as provided for hereinafter in Section 16. Upon completion of the initial lease term, the LESSOR and LESSEE may renew the Lease for xx additional term. During initial or renewed lease term, LESSOR reserves the right to end lease term. LESSEE shall give LESSOR written notice of its intent to renew sixty (60) days prior to expiration of initial lease term. Said
EXHIBIT B
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advance notice period of sixty (60) days may be altered by mutual consent. LESSOR shall give LESSEE advance written notice of its intent to end lease term thirty (30) days prior to end of lease term.
3. TERMINATION BY LESSOR
a. LESSEE understands and agrees that the LESSOR has future plans for the Property, such as the SURF! Busway and Bus Rapid Transit Project, and other transportation uses.
Thus, LESSEE agrees to vacate the Property during the term of the Agreement or any renewal or extension of the Lease, without liability to the LESSOR. b. LESSOR may terminate this LEASE if there is a default by the LESSEE with respect to any of the provisions of this LEASE or LESSEE’s obligations under it, including the payment of the Rent, after giving LESSEE notice of default and failure by LESSEE to cure the default within thirty (30) days. This provision, however, shall not be deemed to extend the term of the LEASE by any cure period.
4. DESIGNATION OF LEAD AGENCY
The California Environmental Quality Act (“CEQA”) provides that where a proposed project is to be carried out or approved by more than one public agency, an agency is to be determined to be the Lead Agency under CEQA, and such Lead Agency is to be responsible for preparing the appropriate environmental documentation. Section 15051(d) of CEQA Guidelines (14 CCR § 15051) also provides that where more than one public agency meets the criteria for being a Lead Agency, the public agencies may designate a Lead Agency by agreement The Parties agree that the CITY OF MARINA, the LESSEE, shall be designated as the Lead Agency for the purpose of environmental review, or any other review or oversight process such as environmental compliance and site inspections before or during the LEASE period.
The CITY OF MARINA, as Lead Agency, shall be responsible for the costs of conducting any said environmental review, up to and including possible approval of the environmental document, and litigation (if any) related to such approval.
5. PAYMENT FOR COST RECOVERY
LESSEE agrees to pay LESSOR a non-refundable payment of Twenty Thousand Dollars ($20,000) upon execution of the LEASE as a not-to-exceed amount for LESSOR staff and legal counsel for certain reasonable and necessary costs for the timely review, processing, 7 Transportation Agency for Monterey County – City of Marina Lease S:\00 - CITY CLERK\2 - Agenda-Staff Reports - DRAFT\2022 Reports\June 7\11c - Exhibit B - TAMC and City of Marina MBL Lease.docx
and administration time to oversee and verify compliance with this LEASE, such as environmental compliance and site inspections before, during, and after the TERM period.
6. RENT
LESSOR AND LESSEE agree that the monthly rent for the term of this Lease shall be structured based on the cost of 4.6 cents per square foot per month for Areas 1 and 2 and 14 cents per square foot per month for Area 3.
a. LESSEE agrees to pay LESSOR non-refundable monthly rent in the amount of Four Thousand, Two Hundred and Forty-Eight Dollars ($4,248) for Area 1. b. LESSEE agrees to pay LESSOR non-refundable monthly rent in the amount of Three Thousand and Thirty-Five Dollars ($3,035) for Area 2 if and only if LESSEE agrees to the use of Area 2.
c. LESSEE agrees to pay LESSOR non-refundable monthly rent in the amount of One Thousand, Five Hundred Seventy-Five Dollars ($1,575) for the use of Area 3.
7. USE/FACILITIES COVERED
The use of the facilities is to be limited to the rail line area noted in the description of premises. Use of the rail line is limited to recreational uses as described Section 8. The use of surrounding property for storage is limited to Area 3. Any irreversible changes to the Property must first be proposed to LESSOR and approved by LESSOR. Additionally, any irreversible changes are to be within any safety standards pursuant to the type of changes proposed and it is the LESSEE’S duty to be knowledgeable about and compliant with all legal requirements, including but not limited to, federal, state, and local statutory and regulatory obligations.
8. PERMITTED USES OF ACTIVITY USE AREAS
LESSEE shall be entitled to use or SUBLEASE the Premises for recreational activities including recreational vehicles along Route, vegetation and debris clearing along Route, storage of recreational materials in designated areas, and for giving trainings and guided tours along Route. LESSOR shall be able to use the property to access any areas including, but not limited to, areas relevant to current or future studies, transportation, utilities and engineering projects and other official uses of the Property or Route. 8 Transportation Agency for Monterey County – City of Marina Lease S:\00 - CITY CLERK\2 - Agenda-Staff Reports - DRAFT\2022 Reports\June 7\11c - Exhibit B - TAMC and City of Marina MBL Lease.docx
9. MAINTENANCE AND REPAIR
LESSOR makes no representations as to the condition of the Property. LESSEE takes occupancy of this Property in an “as is” condition. LESSEE acknowledges that the Property and all improvements thereon are in good order and condition, and LESSEE hereby covenants and agrees to keep the same in good order and condition during the term of this Lease, and upon the expiration of this Lease and any renewal term to surrender the Property and improvements to LESSOR in as good condition as when received, except for loss or damage by fire, natural disaster, act of God, and reasonable use and wear. LESSOR will not repair or maintain nor contribute funding toward the repair or maintenance of the Property during the term of this LEASE.
10. MODIFICATIONS AND ALTERATIONS
All and any modifications and alterations made by LESSEE or SUBLESSEE shall be approved by the LESSOR as well as any relevant local or state agencies. Any permanent modifications or alterations by the LESSEE or SUBLESSEE to the tracks or railroad ties of the PROPERTY shall be within specifications that have been proposed to LESSOR reviewed by LESSOR and approved by LESSOR. Non-permanent modifications, including but not limited to tenting, portable restrooms, storage units, fencing, signage, waste receptacles and other items utilized during the terms of the Lease will be removed and Area 3 shall be cleaned and restored to its pre-Lease condition once the Lease term has ended. Any issues or complaints related to non-permanent modifications shall be the responsibility of LESSEE to address and, if appropriate, correct.
If the LESSOR approves of a proposed permanent modification, the LESSOR may also require that the LESSEE return the property to its original or improved condition prior to the termination of the LEASE. If LESSOR does in fact require this, the LESSEE will give the LESSOR the opportunity to review the final condition of the property to ensure that the property has in fact been returned to its original or improved condition.
11. DESTRUCTION OF PREMISES
LESSEE agrees not to commit or suffer to be committed any waste or injury or any public or private nuisance, and to keep the premises clean and clear of use or storage of hazardous materials as defined by local, state, and federal laws, rules, or regulations, and clear of any refuse and obstructions, and to dispose of all garbage, trash, and rubbish in a manner satisfactory to LESSOR. If the leased premises shall be damaged by LESSEE or SUBLESSEE which damage puts the premises into a condition which is not decent, safe, healthy, and sanitary, LESSEE agrees to make or cause to be made full repair of said damage caused by 9 Transportation Agency for Monterey County – City of Marina Lease S:\00 - CITY CLERK\2 - Agenda-Staff Reports - DRAFT\2022 Reports\June 7\11c - Exhibit B - TAMC and City of Marina MBL Lease.docx
LESSEE or SUBLESSEE and to restore the premises to the condition which existed prior to said damage, or LESSEE agrees to clear and remove from the leased premises all debris and contaminants resulting from said damage caused by LESSEE or SUBLESSEE and rebuild or restore the premises to the condition which existed prior to such damage. LESSEE agrees to use any insurance proceeds which may become available from any such damage to first pay for the cost of any repairs and restorations.
12. MUTUAL INDEMNIFICATION AND INSURANCE
a. INDEMNIFICATION
i. In consideration for use of the Property, LESSEE agrees to indemnify, defend, and save harmless LESSOR and its officers, agents, and employees, from and against any and all claims, liabilities, or losses whatsoever arising out of or in any way related to LESSEE'S use of the Property under this LEASE, including but not limited to claims for Property damage, personal injury, death, injuries to reputation, economic losses, and emotional distress, and any legal expenses (such as attorney's fees, court costs, investigation costs, and expert fees) incurred by the LESSOR in connection with such claims. "LESSEE'S use" includes LESSEE'S or SUBLESSEE’S action or inaction and the action or inaction of its officers, employees, and agents, including but not limited to SUBLESSEE'S customers. The obligation of LESSEE to indemnify does not extend to claims or losses arising out of the sole negligence or willful misconduct of the LESSOR or LESSOR'S directors, officers, agents, or employees.
ii. LESSEE agrees to indemnify, defend, and save harmless LESSOR and its directors, officers, agents, and employees from and against any equipment or bodily injury damages sustained by any party using the Property.
b. INSURANCE
i. Commercial general liability insurance including but not limited to premises, personal injuries, products, operations and completed operations, to protect against loss from liability imposed by law for damages occurring on account of bodily injury, including death therefrom, suffered or alleged to be suffered by any person or persons whomsoever, resulting directly or indirectly from any act or activities of LESSOR or LESSEE, its SUBLESSEE or any person acting for LESSOR or LESSEE or under its control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities of LESSOR or LESSEE, or its SUBLESSEE, or 10 Transportation Agency for Monterey County – City of Marina Lease S:\00 - CITY CLERK\2 - Agenda-Staff Reports - DRAFT\2022 Reports\June 7\11c - Exhibit B - TAMC and City of Marina MBL Lease.docx
any person acting for LESSOR or LESSEE, or under its control or direction. Such insurance shall also provide for and protect LESSOR against incurring any legal cost in defending claims for alleged loss. Such public liability and property damage insurance shall be maintained in full force and effect during the entire term of this Lease in the amount of not less than $1,000,000 combined single limit per occurrence and $2,000,000 in the aggregate. Coverage shall be at least as broad as ISO Commercial General Liability Occurrence Form CG0001. ii. Workers’ Compensation Insurance. If LESSEE or SUBLESSEE employs others in the performance of this contract, LESSEE or SUBLESSEE shall procure and maintain during the entire term of this Lease a Workers' Compensation Insurance Policy in accordance with California Labor Code section 3700 and with a minimum of $1,000,000 per occurrence for employer’s liability.
iii. All insurance required by this LEASE shall be with a company acceptable to LESSOR and authorized by law to transact insurance business in the State of California. All such insurance shall be written on an occurrence basis, or, if the policy is not written on an occurrence basis, such policy with the coverage required herein shall continue in effect for a period of two years following termination of this LEASE.
Each liability policy shall provide that LESSOR shall be given notice in writing at least thirty (30) days in advance of any endorsed reduction in coverage or limit, cancellation or intended non-renewal thereof.
iv. Liability policies shall provide an endorsement naming LESSOR, their directors, officers, agents, and employees, as Additional Insureds and shall further provide that such insurance is primary insurance to any insurance or self-insurance maintained by the LESSOR and that the insurance of the Additional Insureds shall not be called upon to contribute to a loss covered by LESSEE’S insurance. v. Prior to execution of this LEASE by LESSOR, LESSEE shall file certificates of insurance with LESSOR, showing that the LESSEE has in effect the insurance required by this LEASE. LESSEE shall file a new or amended certificate of insurance within five (5) calendar days after any change is made in any insurance policy that would alter the information on the certificate then on file. Acceptance or approval of insurance shall in no way modify or change the indemnification clause in this Agreement, which shall continue in full force and effect. LESSEE agrees that the provisions of this section as to insurance shall not be construed as limiting in any way the extent to which the LESSEE may be held responsible for the payment of damages to 11 Transportation Agency for Monterey County – City of Marina Lease S:\00 - CITY CLERK\2 - Agenda-Staff Reports - DRAFT\2022 Reports\June 7\11c - Exhibit B - TAMC and City of Marina MBL Lease.docx
persons or property resulting from LESSEE's activities, the activities of its SUBLESSEE or the activities of any person or persons for which Tenant is otherwise responsible. vi. Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions must be declared to and approved by LESSOR. At the option of the LESSOR either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the LESSOR, its officers, officials, employees and volunteers; or LESSEE shall provide a financial guarantee satisfactory to LESSOR guaranteeing payment of losses and related investigations, claim administration and defense expenses.
13. LIENS
LESSEE agrees to keep the Property free from liens of every character, and in the event that any liens for labor or materials should arise during the term hereof on account of any act or omission by LESSEE arising from LESSEE’s use of the Property, LESSEE agrees to discharge and pay the same.
14. NO GIFT OF PUBLIC FUNDS
This LEASE prohibits the giving or lending of public funds to any person or entity, public or private. Prohibition includes aid, making of gift, pledging of credit or payment of liabilities and encompasses the giving of monetary funds and any “thing of value”.
15. COMPLIANCE WITH LAWS
LESSEE shall not do, or permit to be done, or keep, or permit to be kept, in or about the Property, anything which shall be a nuisance, or which shall be in violation of any law, ordinance, rule or regulation of any governmental authority, or of any rule or regulation of the, relating to the Property, or which shall increase, or tend to increase, the existing rates of insurance of the Property.
16. TERMINATION
This lease may be terminated by either party as of the last day of any calendar month by giving sixty (60) days prior written notice thereof to the other party. Termination of this lease shall not terminate either party’s obligation to defend, indemnify and hold harmless the other, as provided in this Lease, nor shall terminate either party’s obligation to maintain sufficient insurance, as provided in this Lease.
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17. DEFAULT
a. The occurrence of any of the following, to the extent of the LESSEE’s use, shall constitute a default by the LESSEE: Abandonment and vacation of the Property for thirty (30) days.
b. Failure to perform any other provision of this LEASE if the failure to perform is not cured within thirty (30) days after notice has been given to LESSEE. If the default cannot be reasonably cured within thirty (30), LESSEE shall not be in default of this LEASE if LESSEE commences to cure the default within the thirty (30) day period and diligently and in good faith continues to cure the default. a. Upon default, LESSOR shall have the right to terminate this LEASE and take possession of the Property. Said remedy is not exclusive and is cumulative in addition to other remedies now or later allowed by law.
18. CONDITIONS TO LEASE
LESSOR reserves the right to grant access to people including, but not limited to, TAMC employees, contractors, and TAMC project affiliates. This LEASE certifies that LESSEE and any SUBLESSEES must accommodate the other users of the Route and Property.
19. ASSIGNMENT AND SUBLETTING
LESSEE may not assign this LEASE, or any interest herein, or underlet the Property, or any part thereof, without the prior written consent of the LESSOR which shall not be unreasonably withheld. LESSEE agrees that any SUBLEASE entered cannot conflict with the terms of the LEASE.
20. COORDINATION:
The parties to this LEASE agree that, unless otherwise indicated in writing, the following persons have primary responsibility for liaison and coordination of activities required to carry out this LEASE:
for LESSOR: TAMC for LESSEE: City of Marina
Todd Muck, Executive Director Layne Long, City Manager [email protected] [email protected]
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21. INSPECTION
LESSOR has the right to inspection of the property within twenty-four (24) hours of a written or verbal notification to the LESSEE.
22. NONDISCRIMINATION:
The LESSEE herein covenants by and for itself, administrators and assigns, and all persons claiming under or through them, and this LEASE is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons on account of race, color creed, disability, religion, sex, marital status, national origin, ancestry, or sexual preference in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the land herein leased, nor shall the LESSEE itself or any person claiming under or through LESSEE establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of lessees, sublessees, or vendees on the Property herein leased.
23. NOTICE
Any notices that either party desires to or is required to give to the other party or any other person shall be sent by email. Such notices shall be addressed to the other party at the address set forth above. Either party may change its address by notifying the other party of the change of address. Notice shall be deemed communicated within seventy-two (72) hours from the date of emailing, if emailed as provided in this paragraph. LESSEE shall not assign out rights to any other party.
24. SUCCESSORS AND RESTRICTION ON ASSIGNMENT
LESSEE shall not assign its rights under this agreement. This LEASE, and all terms, covenants, and conditions hereof, shall be binding upon and shall inure to the benefit of the heirs, legal representatives, and successors of the respective parties hereto.
25. OWNERSHIP
The LESSOR is the owner of the Property and all site improvements on the Property on the effective date of this LEASE. All right, title, and interest in and to the Property and those site improvements shall belong to the LESSOR, including improvements made by LESSEE as described in Paragraph 10.
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26. POSSESSORY INTEREST AND PROPERTY TAXES
Pursuant to California Revenue and Taxation Code section 107.6, notice is hereby given that LESSEE is responsible for any possessory interest, utility or Property taxes that may be imposed as a result of, or related to, this LEASE. Additionally, any fines imposed on the Property during the LEASE period that are a result of LESSEE’s actions, or the actions of the use permitted by LESSEE on the property, shall be the sole responsibility of LESSEE.
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IN WITNESS WHEREOF the parties hereto have executed this LEASE this ____ day of ___________, 2022.
CITY OF MARINA, LESSEE:
BY: ______________________________________
Layne Long, City Manager
Approved as to form:
_______________________________________
City Attorney
TRANSPORTATION AGENCY FOR MONTEREY COUNTY, LESSOR
BY: _____________________________________
Todd Muck, Executive Director
Approved as to form:
_______________________________________
TAMC Counsel
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Exhibit A
17 June 2, 2022 Item No: 11d
Honorable Mayor and Members City Council Meeting
of the Marina City Council of June 7, 2022
CITY COUNCIL CONSIDER RECEIVING A PRESENTA TION
REGARDING THE LONG -TERM VISION AND FISCAL
SUSTANABILITY OF THE MARINA MUNICIPAL AIRPORT , EFFORTS
TO PROVIDE QUALITY GENERAL AVIATION FACILITIES TO MEET
DEMANDS, AND POTENTIAL SUPPORT FROM THE MILITARY
ASSISTANCE PROGRAM ( MAP) TO FUND INVESTMENTS IN
INFRASTRUCTURE TO S UPPORT HANGAR DEVELOPMENT AND
FACILITATE REVENUE SUPPORTING LAND USES
REQUEST:
It is requested that the City Council consider:
1. Receiving a presentation on the long-term vision and fiscal sustainability, hangar and infrastructure need s and solutions, and potential f inancial support from the M ilitary Assistance Program for the Marina Municipal Airport.
BACKGROUND
The Marina Municipal Airport is the newest general aviation airport on the Monterey Peninsula, residing on 845 acres of form er Fort Ord property, with over 400 acres dedicated to aviation.
The City of Marina owns and operates the airport. The airport provides support to commer cial, military, and private aircraft. Services and facilities currently available include hangar sto rage, tie-downs, minor aircraft maintenance, skydiving, and fueling. The airport has been open for public use since 1995.
The airport is included in the FAA ’s National Plan of Integrated Airport Systems (NPIAS). As such, the Airport is eligible for fede ral de velopment grants. The airfield layout consists of a single runway, measuring 3,483 feet in length and 75 feet in width. Airport facilities currently include five large hangar buildings (approximately 30,000 s q.ft. each), 24 T -hangars, 20 box hangars, 170 tie downs, a n airport administration building and six ancillary buildings for non - aviation tenants.
There are estimated to be 50 based aircraft (including 42 single engine piston aircraft, three turboprops, 1 business jet) and 30,000 annual operations. Key tenants today include the U.S.
Navy Center for Interdisciplinary Remotely Piloted Aircraft Study (CIRPAS), Skydive Monterey Bay, Light & Motion and most recently Joby Aviation, a leader in the vertical Take-off and Landing (eVTOL) industry, emplo ying hundreds at the Marina Airport with expansion plans for a new large aeronautical manufacturing facility.
The Marina Municipal Airport is committed to supporting the aviation, economic, environmental, and recreational n eeds of the airport and the Mari na community. Key strategies of this vision are:
• Expanding aviation related business by partnering with existing businesses or attracting new businesses.
• Phasing in the expansion of aviation needs
1 • Identifying revenue genera ting possibilities and partnerin g with the community fo r economic development
• Identifying highest and best use of airport land area • Making the airport financially self-sustaining
To operate the airport at a bare minimum costs about $900,000 annually. This includes salaries for two full -time staff, professional services, and minimum maintenance and repair to keep the airport operating. Revenues generated by box hangers, cell to wers, aviation use han gers, and fuel sales total about $550,000 annually. Joby Aviation leases bring in about $1,000,000 annually in revenues to the airport. Attracting new aviation and non -aviation businesses to the airport are critical to the fiscal sustainability of the airport.
DISCUSSION:
Staff and representatives of the Federal Avia tion Administration (FAA ) have be en in close communication for the last couple of years to support growth at the Marina Munici pal Airport and tenants such as Joby Aviation. These talks have resulted in the FAA’s greater understanding and attention to the needs and challenges of the airport.
The airport was deeded to the City directly from the federal government following the closure of Fort Ord. The former helicopter airport contained large hangar buildings in need of a great deal of maint enance. While it was documented in th e Airport Master P lan that an estimated 43 private small planes could be stored in the 5 large conventi onal hangars, utilizing these large buildings in this way is not the highest and best use as it is not efficient, is not the highest and best use, and does not provide for fiscal sustainability of the Airport. In comparison, leasing the entire bui lding to single tenant generates much greater revenue for the airport that is used to reinvest in the maintenance and upkeep of the buildings. Below is a n examp le using a large hanger building to compare the rents generated by several small tenants in contrast to one single tenant.
Large Hangar Individual Tenants Singe Tenant
Lease Rates Max capacity of 9 aircraft
@ $250 mo. each = $2,250
Office space 5,000 s.f. x $.50 p/s.f. = $2,500
Total = 4,750 mo.
35,000 sf x .36 p/s.f.
= $12,600 mo.
At current rates the differ ence betw een indi vidual tenants v ersus one tenant is approximately $7,850 a month or $94,250 annually. The total annual re venue under these two s cenarios are summarized below.
Large Hangar Individual Tenants Singe Tenant
Lease Rates 4,750 mo. / $57,000 annually $12,600 mo. / $151,200 annually
As part of staff ’s recent analysis of airport fiscal sustainability included long ran ge maintenance costs required to preserve the 50–70-year-old structures constructed by the Army. The engineer’s analysis of the needed capital reserve costs over th e next 30 -years and ongoing annual maintenance costs to preserve each large hanger building requires an approximate total of $200,000 annually. In addition to the ca pital and maint enance costs, there are also ongoing operations costs.
2 After reviewing the financial data presented above the FAA staff agreed that tenants such as Joby Aviation are critical to the long-term sustainability of the airp ort and the continue d quality facilities for the general aviation community. This education for the FAA st aff has fortunately opened discussions of the airport partic ipating in the highly selective M ilitary Assistance Program. Nationwide, there are only a few general aviation airport s th at are selected to participate in MAP at one time. And the funding can be si gnificate (up to $35 million) over the 5-year funding cycles.
While the FAA staff is supportive of helping our airport to be financially sustainable, they are also concerned that we continue to provide a quality general aviation airport for pilots while also fostering Joby ’s expansion. In this effo rt, staff has worked with the Tartaglia Engi neering to develop hangar complex plans on the airport that can be phased in o ver 30 -years to meet the demands of the general aviation users of the airport. Also provided were engineering estimates of the costs to develop these complexes.
The presentation attached was presented the FAA staff on May 6, 2022 and was received well.
This presentation includes the vision for Airport and how the future expansion of tenan ts such as Joby Avia tion will work in concert with expansion of hangar space to servi ce the general aviation community and provide for re venue supporting land uses to be devel oped in the future further adding to the financial sustainability of the Airport.
The conclusion of the meeting with the FAA staff was that the City will continue to develop its phasing plan for the Airport and how we propose to use MAP funding towards meeting the vision and fin ancial sustainable future. Staff has met with Tar taglia Engineers to discuss including estimat es for in frastructure development to support the Airport Business Park and revenue support area on the north side of the Airport property. The FAA staff also encouraged City staff to meet with Airport tenants and share future vision and hangar plans. This meeting is being planned for evening of June 8th and will be reported back to the FAA at our next meeting.
In addition to these efforts to provide for the Airport’s future, staff also continues to try and gain the approval of the FAA for the Joby future factory bu ilding on the South Tarmac area. These discussions and meetings are critical to that effort as w ell and we look forward to having the FAA approval this summer.
Respectfully submitted,
_____________________________
Matt Mogensen
Assistant City Manager
City of Marina
REVIEWED/CONCUR:
___________________________
Layne Long
City Manager
City of Marina
3 MARINA
MUNICIPAL
AIRPORT
Vision and efforts to meet current and future aviation demands May 6, 2022
4 VISION FOR THE MARINA MUNICIPAL
AIRPORT
Airport Master Plan Adopted May 2018
Provides guidance for future development to
meet existing and future needs
Project included public review and input
5 PAC meetings,2 workshops, Council adoption
Several Landside Alternatives incorporated
Annual Budget & CIP review and approval
5 MARINA MUNICIPAL AIRPORT VISION
STATEMENT
Mission Statement
The Marina Municipal Airport’s mission is to provide a safe, efficient, customer focused airport to serve the Marina community and Monterey Peninsula area.
Vision
The Marina Municipal Airport is committed to supporting the economic, environmental, and recreational needs of the airport and Marina community through safe and secure operations and fiscal self-sustainability. Key strategies of our vision are:
1. Expanding aviation related business by partnering with existing businesses or attracting new businesses.
2. Phasing in the expansion of aviation needs
3. Identifying revenue generating possibilities and partnering with the community for economic development
4. Identifying highest & best use of airport land area
5. Making the airport financially self-sustaining
6 MARINA MUNICIPAL AIRPORT VISION
STATEMENT (CONT.)
Goals and Objectives
1. Address the needs of the general aviation users
2. Address the general aviation needs of the businesses
3. Maintain and retain current facilities and airport assets including real property, runways, taxiways, ramps, hangers, etc.
4. Provide services and economic value to the City of Marina
5. Be a welcoming gateway for private aircraft access to the Monterey Peninsula
6. Provide a safe environment for all at the airport
7. Enabling the support, acquisition and construction of new airport assets
8. Identifying development projects to fulfill the preferred development plan in the ALP
9. Establish a phasing plan for development projects to meet forecasted needs and review possible funding sources
7 ON-
AIRPORT
LAND USE
8 AIRPORT
BUSINESS PARK
LAND USE
CONCEPT
9 LONG-
TERM
MASTER
PLAN
CONCEPT
10 AIRCRAFT STORAGE AND PARKING
INVENTORY
Aviation building space by type Estimated Total
Aircraft Positions
Maintenance/ Office
Space (s.f)
Aircraft Storage Space
(s.f.)
Total T‐Hangar 24 1,000 23,500
Total Box Hangar 20 2,300 27,200
Total Conventional Hangar 43 22,200 125,500*
North Tarmac Tie Down Area 170 388,800
*Actual usage of hangars, especially if there is a single lessee, may result in fewer available aircraft positions. 11 POTENTIAL AIRCRAFT STORAGE DEMAND
Airport maintains and interest list for hangar storage List is a few years old and needs to be cleaned up for those that have found storage elsewhere.
Potential Interest List Category
(has not been verified to see if still interested)
Total Units in Potential Demand
Total T‐Hangar Waitlist 16
Total Box Hangar Waitlist 27
Total Unspecified Hanger Waitlist 51
12 HANGAR
DEVELOPMENT
PLANNING
13 PROPOSED ADDITIONAL SUPPL Y
Hangar Project Total Number of Hangars Size of Hangars
North Tower Hangar Complex 44 40' x 40’ 30' x 30’ 50' x 50’ 60' x60’ 80' x 100’ 80' x 80'
160' x 130'
Neesen Road West Hangar Complex 21 60' x 50’ 100' x 100’ 116' x 120'
50' x 120’ 80' x 100'
West Apron Hangar 5 60' x 50'
West End Hangar Complex 48 47'6" x 39’ 40' x 40’ 160' x 130'
Taxi lane Hangar – Small 1 100' x 100'
Taxi lane Hangar - Large 1 300' x 150'
Total 120
14 AIRPORT
DEVELOPMENT
PHASES
15 HANGER ADDITION PHASING
Priority
Phase 1 (Years 1 – 15) Number
of
Hangars
Size of Hangars Percent of Current
Potential Demand
1 Tower North Hangar Complex Buildings A, B, C 26 40' x 40’ 30' x 30'
28%
2 Tower North Hangar Complex Building D 10 50' x 50' 11% 3 Tower North Hangar Complex Buildings H 2 160' x 130' 2% 4 Tower North Hangar Complex Buildings E 4 60' x60' 4%
5 Neesen Road West Hangar Complex Building A 11 60' x 50' 12% 6 West Apron Hangar 5 60' x 50' 5%
7 Neesen Road West Hangar Complex Building D 4 80' x 100' 4% 8 Neesen Road West Hangar Complex Building B 1 100' x 100' 1% Total 63 67%
16 HANGER ADDITION PHASING
Priority
Phase 2 (Years 15 – 30) Number
of
Hangars
Size of Hangars Percent of Current
Potential Demand
Tower North Hangar Complex Buildings F and G 2 80' x 100’ 80' x 80'
2%
Neesen Road West Hangar Complex Building C 21 116' x 120' 22% Taxilane Hangar - Small 1 100' x 100' 1%
Taxilane Hangar - Large 1 300' x 150' 1%
West End Hangar Complex Buildings A - F 48 47'6" x 39'
40' x 40'
160' x 130'
51%
17 PHASE 1 – PRIORITY 1
Bldg
A
Bldng
B
Bldng
C
Total
Total
Units
12 6 8 26
Unit
Size
40' x
40'
40' x
40'
30’ x
30'
Estimated
Cost
$6,102,479
Annual
Revenue
$153,600
18 PHASE 1 – PRIORITY 2
Bldg
D
Total
Total
Units
10 10
Unit
Size
50' x
50'
Estimated
Cost
$4,423,056
Annual
Revenue
$72,000
19 PHASE 1 – PRIORITY 3
Bldg
H
Total
Total
Units
2 2
Unit
Size
160'
x 130'
Estimated
Cost
$6,073,848
Annual
Revenue
$53,760
20 PHASE 1 – PRIORITY 4
Bldg
E
Total
Total
Units
4 4
Unit
Size
60'
x60'
Estimated
Cost
$3,520,968
Annual
Revenue
$48,384
21 PHASE 1 – PRIORITY 5
Bldg
A
Total
Total
Units
11 11
Unit
Size
60’ x
50'
Estimated
Cost
$5,449,497
Annual
Revenue
$79,200
22 PHASE 1 – PRIORITY 6
Bldg Total
Total
Units
5 5
Unit
Size
60’ x
50'
Estimated
Cost
$6,044,465
Annual
Revenue
$50,400
23 PHASE 1 – PRIORITY 7
Bldg
D
Total
Total
Units
4 4
Unit
Size
80’ x
100'
Estimated
Cost
$7,317,050
Annual
Revenue
$86,016
24 PHASE 1 – PRIORITY 8
Bldg
B
Total
Total
Units
1 1
Unit
Size
100’ x
100'
Estimated
Cost
$3,130,248
Annual
Revenue
$33,600
25 PHASE 1 TOTAL COSTS
Priority PHASE 1 (YEARS 1-15)
Engineer
Estimated Cost
Principle with
Interest Cash/Grant
Total Project
Cost (D + E)
1 Tower North Hangar Complex Buildings A, B, C $ 6,102,479 $ 4,583,152 $ 3,850,000 $ 8,433,152 2 Tower North Hangar Complex Buildings D $ 4,423,056 $ 2,132,495 $ 3,375,000 $ 5,507,495 3 Tower North Hangar Complex Buildings H $ 6,073,848 $ 1,574,560 $ 5,300,000 $ 6,874,560 4 Tower North Hangar Complex Buildings E $ 3,520,968 $ 1,263,493 $ 2,900,000 $ 4,163,493 5 Neesen Road West Hangar Complex Building A $ 6,044,465 $ 2,328,659 $ 4,900,000 $ 7,228,659 6 West Apron Hangar $ 6,044,465 $ 1,209,566 $ 5,450,000 $ 6,659,566 7 Neesen Road West Hangar Complex Building D $ 7,317,050 $ 2,578,086 $ 6,050,000 $ 8,628,086 8 Neesen Road West Hangar Complex Building B $ 3,130,248 $ 773,696 $ 2,750,000 $ 3,523,696 Total Phase I $ 42,656,579 $ 34,575,000 $ 51,018,707 26 PHASE 2
Bldg
F
Bldg
G
Total
Total
Units
1 1 2
Unit
Size
80’ x
100'
80’ x
80'
Estimate
d Cost
$12,990,641
Annual
Revenue
$48,384
27 PHASE 2
Bldng
C
Total
Total Units 3 3
Unit
Size
116' x
120'
Estimated
Cost
$13,412,274
Annual
Revenue
$141,120
28 PHASE 2
Bldg Total
Total
Units
1 1
Unit
Size
100’
x 100'
Estimated
Cost
$4,230,863
Annual
Revenue
$42,000
29 PHASE 2
Bldg Total
Total
Units
1 1
Unit
Size
300’ x
150'
Estimated
Cost
$15,654,732
Annual
Revenue
$151,200
30 PHASE 2
Bldg
A - D
Bldng
E
Bldng
F - G
Total
Total
Units
40 6 2 48
Unit
Size
47'6"
x 39'
40' x
40'
160' x
130'
Estimated
Cost
$35,425,870
Annual
Revenue
$461,232
31 PHASE 2 TOTAL COSTS
Priority PHASE 2 (YEARS 15-30)
none set
yet
Engineer
Estimated Cost
Principle with
Interest Cash/Grant
Total Project
Cost (D + E)
Tower North Hangar Complex Buildings F and G $ 12,990,641 $ 26,432,248 $ - $ 26,432,248 Neesen Road West Hangar Complex Building C $ 13,412,274 $ 27,290,149 $ - $ 27,290,149 Taxilane Hangar - Small $ 4,320,863 $ 8,791,723 $ - $ 8,791,723 Taxilane Hangar - Large $ 15,654,732 $ 31,852,912 $ - $ 31,852,912 West End Hangar Complex Buildings A - F $ 35,425,870 $ 72,081,535 $ - $ 72,081,535 $ 81,804,380 $ 177,545,139 $ 166,448,568
32 33
34