NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARINA DOE S HEREBY RESOLVE AS FOLLOWS:
1. The City’s Salary Schedule and Compensation Plan for Fiscal Year 2022/23 for Marina Directors is hereby memorialized in Exhibit “A”.
2. The MOU included as Exhibit “B” has been updated consistent with the Broadband Salary Range contained in Table 2 of Exhibit “A” and will be effective as of July 4, 2022.
PASSED and ADOPTED by the City Council of the City of Marina at a regular meeting duly held on this 6th day of July 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
Director Salary Broadband Effective 7/4/2022
Table 1. Director’s Monthly Broadband Salary Range
Position Proposed Monthly Broadband Range with 3.5 %
COLA
Assistant City Manager
Community Development Director
Finance Director
Fire Chief
Police Chief
Recreation Director
Public Works Dir/City Engineer
$11,175 - $19,080
Table 2. 2022/23 Executive Compensation Summary
Position Monthly Salary
Assistant City Manager $17,209.98
Community Development Director $15,337.66
Finance Director $13,967.33
Fire Chief $16,979.16
Police Chief $17,578.44
Recreation Director Currently vacant
Public Works Dir/City Engineer $15,842.73
5 Exhibit B
Marina Directors
Memorandum of Understanding
Benefit Description
1. Directors Broadband Salary Range
Position Monthly Broadband Range
Assistant City Manager
Community Development Director
Finance Director
Fire Chief
Police Chief
Recreation Director
Public Works Dir/City Engineer
$11,175 - $19,080
2. Medical, Dental & Vision, Flexible Benefit Plan
A. The City of Marina will contribute 70% of the low-cost health plan’s premium offered by CalPERS towards whatever plan the employee selects.
B. The City shall pay Dental insurance premium per month as follows:
C. The City shall pay vision insurance premium per month as follows:
D. Flexible Benefit Plan: The City shall implement a Section 125 Flexible Benefit Plan for the members of the Association, as follow”
E. City shall provide an allowance of $575 per month to each member for medical insurance and voluntary programs such as Dental insurance, Vision insurance and Long-Term Disability Insurance, Term Life Insurance, Medical Expense Reimbursement Account and Dependent Care Reimbursement account.
F. The allowance must be applied toward payment of monthly premium for the PERS Health plan, previously described to all members for members and their families except a member may decline coverage for the member and/or a member’s family if the member provides proof satisfactory to the City that the person for whom coverage is declined is covered under a qualifying group health insurance policy from another source.
G. City shall offer Dental insurance, Vision insurance, Term Life insurance, Medical Expense Reimbursement and Dependent Care Reimbursement on a voluntary basis. At the members election, the cost of these benefits Dental Plan Employee Only Employee + 1 Employee + 2 or
more
Premier Access $9.67 $24.00 $29.00
Vision Plan Employee Only Employee + 1 Employee + 2 or
more
Vision Service Plan $20.00 $20.00 $20.00
6 may be paid from any portion of the allowance described above or an offset to the members salary, if the combined cost of the benefits exceeds the allowance.
H. If the allowance is in excess of the cost of all benefits, the difference may be taken in cash. Any amounts taken in cash will be paid out in a bi- monthly payment. It is expressly understood that any future limit on the amount of cash and deferred compensation shall be subject to the meet- and-confer process.
I. City will provide a Medical Expense Reimbursement Account into which a member may pay any amount not to exceed $2,160 annually ($180 per month). A member may also pay into the Dependent Care
Reimbursement Account which member may pay any amount not to exceed $5,000 annually ($416.66 per month). City shall prepare a Flexible Benefit Plan worksheet for distribution to all members, which shall reflect the premiums for each element of the plan.
J. City shall pay up to $60.00 per member for the cost of setting up the Flexible Benefit Plan
K. City shall pay up to $6.00 per member per month for the administrative fee Flexible Benefit Plan
3. Life Insurance: City will provide on behalf of the employee $100,000.00 life insurance coverage at a cost not to exceed $45.00 per month.
4. Retirement: The City shall provide retirement benefits the employee under the Public Employees' Retirement System (PERS), as follows:
A. Retirement Plans
1. For non-public safety employee:
a. Tier 1 – CalPERS 2%@ 55 provided to all miscellaneous member employees hired prior to December 31, 2012 or considered Classic members.
b. Tier 2 – CalPERS 2% @ 62 plan will be provided to all miscellaneous members hired on or after January 1, 2013 who are new members as defined under the PEPRA.
2. For sworn public safety employee:
a. Tier 1 – CalPERS 3%@ 50 provided to all members hired prior to December 31, 2012 or are considered Classic members.
b. Tier 2 – CalPERS 2.7% @ 57 plan will be provided to all members hired on or after January 1, 2013 who are new members as defined under the PEPRA
B. Contributions
a. Effective January 1, 2013 Tier 1 members will pay the full member contribution rate required by CalPERS
7 b. Effective January 1, 2013, Tier 2 members shall pay 50% of the normal cost of the retirement plan as identified annually by CalPERS. This contribution may change annually as required by the PEPRA
5. Survivor Benefits
A. The City will amend the PERS contract to include 1959 Survivors Benefit Level four for the Association. The employee cost will be $2.00 per month.
6. Holiday Schedule
A. For each member of the group the following holiday schedule shall apply • Martin Luther King Jr. Birthday (3rd Monday of January) • Presidents Day (3rd Monday of February)
• Memorial Day (Last Monday of May)
• Independence Day (July 4)
• Labor Day (First Monday of September)
• Veterans Day (November 11)
• Thanksgiving Day and the next day (4th Thursday and next Friday of November)
• Winter Break (December 24 – January 1)
B. When one of the above designated holidays falls on a weekend, then the weekday nearest that day will be considered as that holiday.
7. Leaves: The employee’s leave shall accrue and be
administered, as follows:
A. Administrative Leave: Employee shall receive two hundred (200) hours' yearly Administrative Leave, earned in a lump sum on July 1st of each year. Unused Administrative Leave to be paid at current salary upon termination of employment to a maximum of one hundred and sixty (160) hours.
Cash-out Unless otherwise specified in the Director’s Contract, the City will pay employee at their request a maximum amount of one hundred (100) hours of administrative leave each fiscal year, at the employee' s individual regular rate of pay.
B. Personal Leave Time: Employee shall accrue Personal Leave Time as in lieu of Sick and Vacation time. The accrual rate will be as follows.
First Through Fifth Year of Service. Twenty-two (22) working days per year.
Sixth Through Fifteenth Year of Service. Twenty-seven (27) working days per year.
Sixteenth Year of Service and On. Twenty (32) working days per year.
8 Personal Leave Time shall not accrue in excess of 960 hours. Upon resignation, employee shall receive compensation for unused Personal Leave Time to a maximum of 300 hours. Upon retirement, employee shall receive compensation for unused Personal Leave Time to a maximum of 800 hours.
Cash-out: The City will pay employee at their request a maximum amount of eighty (80) hours of personal leave each fiscal year, at the employee's individual regular rate of pay.
Emergency Compensation: For Personal Leave Time. Upon a written request certifying and explaining a health-related emergency, the City Manager may authorize Employee to receive compensation for Personal Leave Time for a maximum of 80 hours.
8. Physicals:
A. City shall pay up to $300.00 for the cost of a physical examination for the Employee, on an annual basis.
9. Training Day:
A. City shall budget $500.00 for the Employee as Department Director Training Day
10. Educational Programs:
A. The City will pay the tuition cost for educational programs in which the Employee participates, subject to the prior approval of the City Manager, provided the training is determined to be relevant to the Employee 's job. The annual aggregate cost for tuition shall not exceed $2,000.00.
11. Longevity Compensation:
A. After ten (10) years of accumulated service with the City, the employee shall receive an additional five percent (5%) in salary.
B. An advancement in longevity pay from 10 years to 9 years would go to employees who had an overall rating of “highly competent” on their most recent evaluation.
12. Business Expense Allowance: Employee shall receive a business expense allowance of $50.00 per month.
13. Non-Covered Items. Items not covered in this agreement are governed by the City’s Employee Handbook.
9 RESOLUTION NO. 2022-33
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA AUTHORIZING ADJUSTMENTS TO THE CITY’S SALARY SCHEDULE AND COMPENSATION PLAN
FOR MARINA DIRECTORS, AUTHORIZING THE CITY MANAGER TO EXECUTE A
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MARINA AND THE
MARINA DIRECTORS, AUTHORIZING THE FINANCE DIRECTOR TO MAKE
APPROPRIATE BUDGET AND ACCOUNTING ENTRIES AND RECEIVING AN ORAL
REPORT ON CHANGES TO EXECUTIVE COMPENSATION IN COMPLIANCE WITH GOVERNMENT CODE SECTION 54953(C)(3)
WHEREAS, the City employs directors to manage the various departments of the City; and, WHEREAS, these directors have a co llective Memorandum of Understanding (MOU) and employment agreements (Contracts); and,
WHEREAS, the Director MOU lapsed January 1, 2021; and,
WHEREAS, the City Council has review various indicators of the cost of living, including the San Francisco June CPI which was up more than 2.5% from the year prior; and, WHEREAS, consistent with the employee MOU’s recently approved, the City wishes to increase the Directors broadband salary schedule by 2.5% for FY 21/22 and a variable cost of living adjustment for FY 22/23 based upon the April 2022 SF/Oakland CPI, but not less than 2% and not more than
3.5%; and,
WHEREAS, the 2.5% cost of living increase to the Directors broadband salary schedule results in the an increase in the range from $10,535 - $17,985 per month to $10,798 - $18,434 per month, as shown in Table 1 of Exhibit “A”; and,
WHEREAS, the Marina Directors group actual salaries as a result of the above compensation changes are summarized in Table 2 of Exhibit “A”; and,
WHEREAS, the Director’s M OU conta ins salary ra nges, benefits , terms and con ditions of employment and is addition, the Directors individual Contracts which are based on the MOU. The MOU included as Exhibit “B” updates the Broadband Salary Range and will be effective as of July 1, 2021 through June 30, 2023.
WHEREAS, effective July 1, 2021, all positions listed above and in the attached resolution, will receive a cost-of-living increase to their salaries, in the amount of 2.5%; and, WHEREAS, the following positions will receive an equity increase at the following rates, effective February 28, 2022:
a. Fire Chief will receive a 14.5% equity increase;
b. Police Chief will receive a 12.0% equity increase;
WHEREAS, the annual cost of the salary increases is approximately $75,000 a year.
WHEREAS, Government Code section 54953(c)(3) requires that, before taking final action, the Board of Directors must orally report a summary o f the recommendation regarding t he salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executives; and,
EXHIBIT C
10 Resolution No. 2022-33
Page Two
WHEREAS, on March 1, 2022, the City Council received an oral report on the changes to executive compensation and approved this comprehensive memorializing the changes.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARINA DOE S HEREBY RESOLVE AS FOLLOWS:
1. Authorize adjustments to the City’s salary schedule and compensation pl an for Marina Directors; and,
2. Authorize the City Manager to execute a Memorandum of Understanding between the City of Marina and the Marina Directors Employees; and,
3. Authorize Finance Director to make appropriate accounting and budgetary entries; and,
4. Receive the executive compensation report in compliance with Government Code Section 54953(c)(3).
PASSED and ADOPTED by the City Council of the City of Marina at a regular meeting duly held on this 1st day of March 2022 by the following vote:
AYES, COUNCIL MEMBERS: Medina Dirksen, Burnett, Berkley, Delgado NOES, COUNCIL MEMBERS: None
ABSENT, COUNCIL MEMBERS: Biala
ABSTAIN, COUNCIL MEMBERS: None
Bruce C. Delgado, Mayor
ATTEST:
Anita Sharp, Deputy City Clerk
EXHIBIT C
11 EXHIBIT A
Director Salary Broadband Effective 7/5/2021
Table 1. Director’s Monthly Broadband Salary Range
Position Monthly Broadband Range
Assistant City Manager
Community Development Director
Finance Director
Fire Chief
Police Chief
Recreation Director
Public Works Dir/City Engineer
$10,798 to $18,435
Table 2. Executive Compensation Summary
Position Monthly Salary
Assistant City Manager $16,628
Community Development Director $14,819
Finance Director $13,495
Fire Chief $16,405
Police Chief $16,984
Recreation Director Currently vacant
Public Works Dir/City Engineer $15,307
EXHIBIT C
12 EXHIBIT B
Marina Directors
Memorandum of Understanding
Benefit Description
1. Directors Broadband Salary Range
Position Monthly Broadband Range
Assistant City Manager
Community Development Director
Finance Director
Fire Chief
Police Chief
Recreation Director
Public Works Dir/City Engineer
$10,798 to $18,435
2. Medical, Dental & Vision, Flexible Benefit Plan
A. The City of Marina will contribute 70% of the low-cost health plan’s premium offered by CalPERS towards whatever plan the employee selects.
B. The City shall pay Dental insurance premium per month as follows:
C. The City shall pay vision insurance premium per month as follows:
D. Flexible Benefit Plan: The City shall implement a Section 125 Flexible Benefit Plan for the members of the Association, as follow”
E. City shall p rovide an allowance of $575 per month to each m ember for medical insurance and voluntary programs such as Dental insurance, Vision insurance and Long-Term Disability Insurance, Term Life Insurance, Medical Expense Reimbursement Account and Dependent Care R eimbursement account.
F. The allowance must be applied toward payment of monthly premium for the PERS Health plan, previously described to all members for members and their families except a member may decline coverage for the member and/or a member’s family if the member provides proof satisfactory to the City that the person fo r whom coverage is declined is covered under a qualifying group health insurance policy from another source.
G. City shall o ffer Dental insurance, Vision insurance, Term Life insurance, Medical Expense Reimbursement and Dependent Care Reimbursement on a voluntary basis. At the members election, the cost of these benefits may be paid from any portion of the allowance described above or an offset to the mem bers salary, if the combined cos t of the benefits exceeds the allowance.
Dental Plan Employee Only Employee + 1 Employee + 2 or
more
Premier Access $9.67 $24.00 $29.00
Vision Plan Employee Only Employee + 1 Employee + 2 or
more
Vision Service Plan $20.00 $20.00 $20.00
EXHIBIT C
13 H. If the allowance is in excess of the cost of all benefits, the difference may be taken in cash. Any amounts taken in cash will be paid out in a bi -monthly payment. It is expressly understood that any future limit on the amount of cash and deferred compensatio n shall be subject to the meet-and-confer process.
I. City will provide a Medical Expen se Reimbursement Account into which a member may pay any amount not to exceed $2,160 annuall y ($180 per month). A member may also pay into the Dependent Care Reimbursement Account which member may pay any amount not to exceed $5,000 annually ($416.66 per month). City shall prepare a Flexible Benefit Plan worksheet for distribution to all member s, which shall reflect the premi ums for e ach element of the plan.
J. City shall pay up to $60.00 per member for the cost of setting up the Flexible Benefit Plan
K. City shall pay up to $6.00 per member per month for the administrative fee Flexible Benefit Plan
3. Life Insurance: City will provide on behalf of the employee $100,000.00 life insurance coverage at a cost not to exceed $45.00 per month.
4. Retirement: The City shall provide retirement benefits the employee under the Public Employees' Retirement System (PERS), as follows:
A. Retirement Plans
1. For non-public safety employee:
a. Tier 1 – CalPERS 2%@ 55 pro vided to all miscellaneous member employees hired prior to December 31, 2012 or considered Classic members.
b. Tier 2 – CalPERS 2% @ 62 plan will be provided to all miscellaneous members hired on or after January 1, 2013 who are new members as defined under the PEPRA.
2. For sworn public safety employee:
a. Tier 1 – CalPERS 3%@ 50 provided to all members hired prior to December 31, 2012 or are considered Classic members.
b. Tier 2 – CalPERS 2.7% @ 57 plan will be provided to all members hired on or after January 1, 2013 who are new members as defined under the PEPRA
B. Contributions
a. Effective January 1, 2013 Tier 1 members will pay the full member contribution rate required by CalPERS
b. Effective January 1, 2013, Tier 2 members shall pay 50% of the normal cost of the retirement plan as identified annually by CalPERS. This contribution may change annually as required by the PEPRA
EXHIBIT C
14 5. Survivor Benefits
A. The City will amend the PERS contract to include 195 9 Survivors Benefit Level four for the Association. The employee cost will be $2.00 per month.
6. Holiday Schedule
A. For each member of the group the following holiday schedule shall apply • Martin Luther King Jr. Birthday (3rd Monday of January) • Presidents Day (3rd Monday of February)
• Memorial Day (Last Monday of May)
• Independence Day (July 4)
• Labor Day (First Monday of September)
• Veterans Day (November 11)
• Thanksgiving Day and the next day (4th Thursday and next Friday of November)
• Winter Break (December 24 – January 1)
B. When one of the above designated ho lidays falls on a weekend, then the weekday nearest that day will be considered as that holiday.
7. Leaves: The employee’s leave shall accrue and be
administered, as follows:
A. Administrative Leave: Employee shall receive two hundred (200) hours' yearly Administrative Leave, earned in a lump sum on July 1st of each year. Unused Administrative Leave to be paid at current salary upon termination of employment to a maximum of one hundred and sixty (160) hours.
Cash-out Unless otherwise specified in the Director’s Contract, the City will pay employee at their request a maximum amount of one hundred (100) hours of administrative leave each fiscal year, at the employee' s individual regular rate of pay.
B. Personal Leave Time: Employee shall accrue Personal Leave Time as in lieu of Sick and Vacation time. The accrual rate will be as follows.
First Through Fifth Year of Service. Twenty-two (22) working days per year.
Sixth Through Fifteenth Year of Service. Twenty-seven (27) working days per year.
Sixteenth Year of Service and On. Twenty (32) working days per year.
Personal Leave Time shall not accrue in excess of 960 hours. Upon resignation, employee shall receive compensation for unused Personal Leave Time to a maximum of 300 hours. Upon retirement, employee shall receive compensation for unused Personal Leave Time to a maximum of 800 hours.
EXHIBIT C
15 Cash-out: The City will pay employee at their request a maximum amount of eighty (80) hours of personal leave each fiscal year, at the employee's individual regular rate of pay.
Emergency Compensation: For Personal Leave Time. Upon a written request certifying and explaining a health-related emergency, the City Manager may authorize Employee to receive compensation for Personal Leave Time for a maximum of 80 hours.
8. Physicals:
A. City shall pay up to $300.00 for the cost of a physical examination for the Employee, on an annual basis.
9. Training Day:
A. City shall budget $500.00 for the Employee as Department Director Training Day
10. Educational Programs:
A. The City will pay the tuition cost for educational programs in which the Employee participates, subject to the prior approval of the City Manager, provided the training is determined to be relevant to the Employee 's job.
The annual aggregate cost for tuition shall not exceed $2,000.00.
11. Longevity Compensation:
A. After ten (10) years of accumulated service with the City, the employee shall receive an additional five percent (5%) in salary.
B. An advancement in longevity pay from 10 y ears to 9 years w ould go to employees who had an overall rating of “high ly competent” on thei r most recent evaluation.
12. Business Expense Allowance: Employee shall receive a bu siness expense allowance of $50.00 per month.
13. Non-Covered Items. Items not covered in this agreement are governed by the City’s Employee Handbook.
EXHIBIT C
16 February 23, 2022 Item No: 11a
Honorable Mayor and Members City Council Meeting
of the Marina City Council of March 1, 2022
CITY COUNCIL CONSIDER ADOPTING RESOLUTION NO. 2022-,
AUTHORIZING ADJUSTMENTS TO THE CITY’S SALARY SCHEDULE
AND COMPENSATION PLAN FOR MARINA DIRECTORS,
AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM
OF UNDERSTANDING BETWEEN THE CITY OF MARINA AND THE
MARINA DIRECTORS, AUTHORIZING THE FINANCE DIRECTOR TO
MAKE APPROPRIATE BUDGET AND ACCOUNTING ENTRIES AND
RECEIVING AN ORAL REPORT ON CHANGES TO EXECUTIVE
COMPENSATION IN COMPLIANCE WITH GOVERNMENT CODE
SECTION 54953(C)(3)
REQUEST:
It is requested that the City Council consider adopting Resolution No. 2022-:
1. Authorizing adjustments to the City’s salary schedule and compensat ion plan for Marina Directors; and,
2. Authorizing the City Manager to execute a Memorandum of Understanding between the City of Marina and the Marina Directors Employees; and,
3. Authorizing Finance Director to make appropriate accounting and budgetary entries; and,
4. Receiving an oral report on changes to the executive compensation plan in compliance with Government Code Section 54953(c)(3).
BACKGROUND:
The City of Marina City Council has delegated all hiring authority to the City Manager including director positions of Assistant City Manager, Police Chief, Fire Chief, Finance Director, Public Works Director, Community Development Director and Recreat ion Director. The salary ranges, benefits, terms and con ditions of employment are incl uded in the Director’s Memorandum of Understanding (MOU). In addition, the directors have specific contracts which are based on the MOU. When a new director is hired, he or she is hired within the broadband salary range dependent on his or her position, experience, skills and abilities.
Government Code section 54953(c)(3) requires that, before taking final action, the Board of Directors must orally report a summary o f the recommendation regarding t he salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executives.
ANALYSIS:
The Director MOU lapsed January 1, 2021. Consistent with the employee MOU’s recently approved, it is recommend that the Directors be provided a 2.5% cost of living adjustment for FY 21/22 and a variable cost of living adjustment for FY 22/23 based upon the April 2022 SF/Oakland CPI, but not less than 2% and not more than 3.5%. The FY 21/22 cost of living adjustment to be effective the first full pay period in July 2021.
EXHIBIT C
17 The 2.5% cost of living adjustment to the City’s current Director’s broadband salary range results in the changes demonstrated in Table 1 below.
Table 1. Director’s Monthly Broadband Salary Range
Position Current Monthly Broadband
Range
Proposed Monthly Broadband
Range with 2.5 % COLA
Assistant City Manager
Community Development Director
Finance Director
Fire Chief
Police Chief
Recreation Director
Public Works Dir/City Engineer
$10,535 to $17,985 $10,798 to $18,435
The attached MOU documents the salary adjustments noted above and will be effective as of July 1, 2021 through June 30, 2023. There are no changes to benefits or other compensations as a result of the cost-of-living adjustment.
Executive Compensation Changes
Government Code section 54953(c)(3) requires that, before taking final action, the Board of Directors must orally report a summary of the recommendation regarding the salaries, salary schedules, or compensation paid in the form of fringe benefits of local agency executives. Below in Table 2 is a list of employees who constitute local agency executives in the Marina Directors group.
Assistant City Manager
Community Development Director
Finance Director
Fire Chief
Police Chief
Recreation Director
Public Works Dir/City Engineer
Effective July 1, 2021, all positions listed above and in the attached resolution, will receive a cost- of-living increase to their salaries, in the amount of 2.5%.
In addition, the following positions will receive an equity increase at the following rates, effective February 28, 2022:
a. Fire Chief will receive a 14.5% equity increase;
b. Police Chief will receive a 12.0% equity increase;
Executive Compensation Summary
The Marina Directors g roup actual salaries as a r esult of the above compensation changes are summarized in Table 2 below.
EXHIBIT C
18 Table 2. Executive Compensation Summary
Position Monthly Salary
Assistant City Manager $16,628
Community Development Director $14,819
Finance Director $13,495
Fire Chief $16,405
Police Chief $16,984
Recreation Director Currently vacant
Public Works Dir/City Engineer $15,307
FISCAL IMPACT:
The annual costs of th e above-described changes to the execu tive compensation schedule are approximately $75,000 a year.
CONCLUSION:
This report is presented for Council’s consideration.
Respectfully submitted,
_____________________________
Catrina Scharf
Human Resource Analyst
City of Marina
REVIEWED/CONCUR:
_____________________________
Layne Long
City Manager
City of Marina
EXHIBIT C
19 Continued from June 7, 2022
June 2, 2022 Item No: 11b
Honorable Mayor and Members
of the Marina City Council
City Council Meeting
of July 6, 2022
CITY COUNCIL CONSIDER RECEIVING A PR ESENTATION
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 o f 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 hang ar storage, 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 fo r 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, employing 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 th e Marina 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 par tnering 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 Administratio n (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 example 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 ten ants 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 staff 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 significate (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 tenants 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 Tartaglia 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 AGENDA ITEM: 11c
JULY 6, 2022
STAFF WILL BE PROVIDING A POWERPOINT
PRESENTATION TO COUNCIL PRIOR TO THE
JULY 6, 2022, MEETING