AGENDA
REGULAR JOINT MEETING OF THE OAKLEY CITY COUNCIL/OAKLEY CITY COUNCIL
ACTING AS THE SUCCESSOR AGENCY TO THE OAKLEY REDEVELOPMENT
AGENCY/OAKLEY PUBLIC FINANCING AUTHORITY
Tuesday, December 10, 2024
6:30 PM
Oakley City Council Chambers located at 3231 Main Street, Oakley, California 94561.
Unless stated otherwise on the agenda, every item on the agenda is exempt from CEQA Guidelines Sections 15060(c), 15061(b)(3), 15273, 15378, 15301, 15323 and/or Public Resources Code Section 21065.
MISSION STATEMENT: The City of Oakley will create a resilient future that fosters and attracts a vibrant and evolving community that welcomes and values all people.
VISION STATEMENT: The City of Oakley celebrates our unique Delta lifestyle and small-town feel where we Live in a safe, dynamic community, Work together to build the future, and Play in our own backyard.
Agendas are posted in Oakley at Oakley City Hall-3231 Main Street, outside the gym at Delta Vista Middle School-4901 Frank Hengel Way and outside the Library at Freedom High School-1050 Neroly Road. Agendas are also posted on the City's Internet Website www.ci.oakley.ca.us.
A complete packet of information containing staff reports and exhibits related to each item is available for public review prior to an Oakley City Council and/or City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority meeting at Oakley City Hall, 3231 Main Street, Oakley, CA 94561. Any writings or documents provided to a majority of the Oakley City Council, Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency or Oakley Public Financing Authority regarding any item on this agenda will be made available for public inspection, during regular business hours, at the front counter in the Main Lobby of the Oakley City Hall located at 3231 Main Street, Oakley, CA 94561. Agendas may be picked up at the Oakley City Hall located at 3231 Main Street, Oakley, CA 94561 for no charge. To request information regarding placement on the City's agenda e-mail distribution list, please contact us at (925) 625-7000.
The City of Oakley provides social media options to stay connected to City Hall through Facebook, Twitter, Next Door and Instagram. Other opportunities to connect with City Hall include Envision Oakley, Oakley OnDemand on the City's website, and by emailing [email protected].
If you require special accommodation, please call the City Clerk's office at (925) 625-7000 before the meeting or contact City staff at the meeting. 1 1. OPENING MATTERS
1.1 Call to Order and Roll Call of the Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority
1.2 Pledge of Allegiance to the Flag
1.3 Contra Costa County Fire Protection District Update (Assistant Fire Chief, Scott Wannamaker)
1.4 Proclamation Honoring Logan Pope for Achieving Eagle Scout, Boy Scouts of America, Troop 90
1.5 Proclamation Recognizing National Law Enforcement Appreciation Day (Paul Beard, Chief of Police)
1.6 Presentation by Senator Glazer's Office
2. PUBLIC COMMENTS
3. COUNCILMEMBER COMMENTS
4. CONSENT CALENDAR
Please keep cell phones/electronic devices turned off during the meeting. Please be advised that City Council meetings are video recorded and attendees may appear on video.
Information Regarding Public Comment
Members of the public may address the Council on items of interest that are within the City's jurisdiction. In compliance with State law, the council may not take action or have discussion on any item that is not specifically listed on the agenda. Public comment on items not listed on the agenda will be heard under the Public Comments section of the agenda. Public comments on items listed on the agenda will be heard as the Mayor calls the items. In compliance with State law, the Council may not take action on an item that is not specifically listed on the agenda. If you would like to speak on any agenda item, please fill out a public speaker card available in the lobby and submit it to the City Clerk seated in the Council Chamber prior to the agenda item being called. The Mayor will call you by name to the podium to hear your comment. PUBLIC COMMENTS ARE LIMITED TO THREE (3) MINUTES. Online public comments are accepted until 5 p.m. the day of the meeting and can be submitted at https://www.ci.oakley.ca.us/online-public-comment-card/.
Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority
Proclamation
Proclamation
At this time, the public is permitted to address the Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority on non-agendized items.
Consent Calendar items are typically non-controversial in nature and are considered for approval by the Oakley City Council/ Oakley City Council Acting as the Successor 2 4.1 Approve Minutes from the Regular Joint City Council/City Council Acting as the Successor Agency to the Redevelopment Agency and Special Public Financing Authority Meeting held November 12, 2024 (Libby Vreonis, City Clerk)
4.2 Report Out of Closed Session Memo (Derek Cole, City Attorney)
4.3 Adopt Resolutions Approving 2025 Meeting Dates (Kim Snodgrass, City Clerk)
4.4 Consideration of a Resolution Accepting the Five-Year Development Impact Fee Report and Making Required Findings (AB 1600 Annual Report) (Jeri Tejeda, Administrative Services Director)
4.5 Adopt a Resolution Approving a Subdivision Improvement Agreement and Final Map for Brownstone Subdivision 8803 (Located on the north side of Brownstone Road, approximately 500 feet west of Main Street) (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.6 Adopt a Resolution Authorizing the City Manager to Execute a Construction Agreement with Sukut Construction, LLC for the Construction of Capital Improvement Project Number 310 - East Cypress Road Widening at Contra Costa Canal Project (Kevin Rohani, P.E., Public Works Director/City Engineer)
Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority with one single action. Members of the audience, Staff or the Oakley City Council/ Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority who would like an item removed from the Consent Calendar for purposes of public input may request the Mayor remove the item. The public may request to remove an item(s) to provide input by completing a public speaker card and submitting it to the City Clerk prior to the item(s) being called by the Mayor.
Minutes 11-12-24
Memo
Staff Report
1. List of Proposed 2025 Meeting Dates
2. City Council Resolution Approving 2025 Meeting Dates
3. Successor Agency Resolution Approving 2025 Meeting Dates
4. Public Financing Authority Resolution Approving 2025 Meeting Dates Staff Report
1. Resolution
2. Five-Year Report
Staff Report
1. Vicinity Map
2. Resolution - Final Map
3. Resolution - SIA
4. Subdivision Improvement Agreement
5. Final Map
Staff Report
1. Resolution
3 4.7 Adopt a Resolution Approving the Funding Agreement with the Contra Costa Transportation Authority (CCTA) to Design and Construct Oakley’s portion of the CCTA Countywide Smart Signals project and authorize the City Manager to execute the agreement with CCTA (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.8 Adopt a Resolution Authorizing the City Manager to execute an On-Call Agreement for Tree Pruning and Removal Services with Monticello Tree Service, Inc. for the City of Oakley from December 10, 2024 through June 30, 2026 (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.9 Adopt a Resolution Authorizing the City Manager to Execute an Agreement for On-Call Services with Jet Mulch, Inc. Related to Furnishing Park Playground and Landscaped Areas with Blown-In Wood Chips for the City of Oakley from December 10, 2024, through June 30, 2026
4.10 Consideration of a Resolution Approving the City's Investment Policy for Fiscal Year 2024/2025 (Jeri Tejeda, Administrative Services Director)
4.11 Adopt a Resolution Authorizing the City Manager to Execute an Agreement with AdArt Sign Company for the Replacement of Two Digital Signs Located at Civic Center Plaza and at the Junction of Laurel Road and Empire Avenue and a Controller at City Hall (Rob Barker, IT Manager)
4.12 Adopt a Resolution Naming Parcel C of Subdivision 9615 Machado Property, "Riverine Park" (Kevin Rohani, P.E., Public Works Director/City Engineer)
5. PUBLIC HEARINGS
2. Bid Results
Staff Report
1. Resolution
2. Vicinity Map
3. Project Flyer
4. CCTA Smart Signals Funding Agreement
Staff Report
1. Monticello Proposal
2. Resolution
Staff Report
1. Jet Mulch Proposal 2024
2. Resolution
Staff Report
1. Resolution
2. Statement of Investment Policy
Staff Report
1. Proposed Resolution
Staff Report
1. Resolution
2. Vicinity Map
3. Park and Facilities Naming Policy
4 5.1 Adopt a Resolution Approving a Determination to Vacate the Public Roadway Right-of- Way for Old Neroly Road between Neroly Road and Empire Avenue located along the Westerly Boundary of APN 053-071-046 (Kevin Rohani, P.E., Public Works Director/City Engineer)
6. REGULAR CALENDAR
6.1 Consideration of a Resolution Accepting the Annual Comprehensive Financial Report (ACFR), Memorandum on Internal Control, Required Communications and Report on Agreed Upon Procedures for Fiscal Year 2023-2024 (Jeri Tejeda, Administrative Services Director and Amy Meyer, CPA Maze and Associates)
6.2 Adopt a Resolution Approving the 2025 City Council Committee Appointment List (Kim Snodgrass, City Clerk)
7. REPORTS
7.1 CITY MANAGER
(a) City Manager
(b) Business License Update
(c) Update from the Oaks Apartments
7.2 OAKLEY CITY COUNCIL/OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE OAKLEY REDEVELOPMENT AGENCY (a) Reports from Council Liaisons to Regional Committees, Commissions and Boards AND Oakley City Council/Oakley City Council Acting as the Staff Recommendation: 1) Receive the Staff Report, 2) Receive Questions from the City Council, 3) Open the Public Hearing, 4) Receive Public Testimony, 5) Close the Public Hearing, 6) Deliberate, 7) Summarize the Deliberation 8) Adopt the Resolution
Staff Report
1. Vicinity Map
2. Resolution
3. Exhibit A Neroly Road - Signed Plat & Legal
Staff Report
1. Resolution
2. FY 2023/2024 ACFR
3. FY 2023/2024 Memorandum on Internal Control
4. FY 2023/2024 Required Communications
5. FY 2023/2024 Investment Policy
6. FY 2023/2024 Gann Limit Report
Staff Report
1. Draft 2025 City Council Committee Appointment List
2. Proposed Resolution
(b) November 2024 New Business Licenses
(c) Oaks Apartments Update
5 Successor Agency to the Oakley Redevelopment Agency (b) Requests for Future Agendas
8. WORK SESSIONS
9. CLOSED SESSION
10. ADJOURN
6 Honoring Eagle Scout Recipient
Logan Pope
WHEREAS, the City of Oakley, a place for families in the heart of the Delta, takes pride in its sense of community and citizen involvement; and
WHEREAS, the vision of the Boy Scouts of America is to prepare every eligible youth in America to become responsible, participating citizens and leaders, who are guided by the Scout Oath and Law; and WHEREAS, Logan Pope is a member of Boy Scout Troop 90 and achieved the rank of Eagle Scout on November 21st, 2024; and
WHEREAS, this is the highest award a Scout can receive; few scouts move up through the ranks of Scouting and only about 2% of Scouts make it all the way to Eagle; and WHEREAS, Logan’s Eagle Court of Honor will be held on December 21st, 2024; and WHEREAS, the Boy Scouts of America encourage Eagle Scout candidates to complete worthy projects to improve their neighborhoods, their community and the region; and WHEREAS, for his community service project, Logan used his skills to lead a large group of volunteers to design and build a Food Storage Box for the Santa Clara Police Officers Association campground to prevent the negative effects of wild animals eating human food; and WHEREAS, Logan has been part of scouting since the age of 8, has earned 38 merit badges, is a member of the Order of the Arrow and Wolfeboro Pioneers; he has held several leadership positions, which include Patrol Leader, Assistant Senior Patrol Leader, Senior Patrol Leader, and currently serving as a Troop Guide in Troop 90; and
WHEREAS, Logan is a true outdoors scout, he has 115 nights of camping, over 150 miles hiked, and 70 miles backpacked, and he has over 169 hours of community service; and WHEREAS, Logan has excelled in all facets of life, however, his main focus has always been faith, school, athletics, and scouting; and
WHEREAS, Logan is currently a Junior at Heritage High School; after high school he plans to serve a church mission for the Church of Jesus Christ of Latter Day Saints, and upon returning begin the process of becoming a professional welder; and
WHEREAS, Logan’s persistent progress through the ranks of scouting to achieve this prestigious award demonstrates his determination to prepare himself for a meaningful, productive role in society.
NOW, THEREFORE, BE IT RESOLVED that I, Anissa Williams Mayor of the City of Oakley along with the members of the Oakley City Council do hereby honor Logan Pope of Boy Scout Troop 90 on his achievement of attaining the rank of Eagle Scout, the highest rank in the Boy Scouts.
DATED: December 10, 2024
____________________
Anissa Williams, Mayor
7 Proclamation
National Law Enforcement Appreciation Day
WHEREAS, National Law Enforcement Appreciation Day was founded in 2015 by Concerns of Police Survivors (C.O.P.S.) to recognize officers across the country for the daily sacrifices they make for their communities; and
WHEREAS, Law Enforcement Officers of every rank and file have chosen a profession that puts their life on the line every day for their communities. They’ve answered a call to public service that is demanding and often unappreciated. On National Law Enforcement Appreciation Day, we have an opportunity to thank them for their service and offer a token of respect.
WHEREAS, the health and safety of the citizens of Oakley is important to the happiness, prosperity and well-being of our city’s families and community; and
WHEREAS, the City of Oakley is the proud home of dedicated police officers who put their lives on the line to keep our community safe; and
WHEREAS, these officers stand as leaders and teachers, educating the community about the importance of public safety; and
WHEREAS, the City of Oakley, appreciates the extraordinary efforts and sacrifices made by officers and their family members on a daily basis in order to protect our schools, workplaces, roadways, and homes.
NOW, THEREFORE, BE IT RESOLVED, that I, Anissa Williams, Mayor of the City of Oakley, on behalf of the City Council, do hereby declare January 9, 2025, as National Law Enforcement Appreciation Day, and call this observance to the attention of all our citizens.
December 10, 2024
_____________________
Anissa Williams, Mayor
8 Minutes of the Regular Joint Meeting of the Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority held November 12, 2024
1) OPENING MATTERS
1.1 Call to Order and Roll Call of the Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority
Mayor Anissa Williams called the meeting to order at 6:30 p.m. in the Oakley City Council Chambers located at 3231 Main Street, Oakley, CA 94561. Vice Mayor Shannon Shaw and Councilmembers George Fuller, Hugh Henderson and Aaron Meadows were also in attendance.
1.2 Pledge of Allegiance to the Flag (Iron House Elementary Students) Iron House Elementary Students led the Pledge of Allegiance to the Flag.
1.3 Delta Update (Roger Mammon)
Roger Mammon provided an update regarding the Delta.
1.4 Ironhouse Sanitary District Update (Jean-Marc Petit, General Manager) Ironhouse Sanitary District General Manager Jean-Marc Petit provided an update and PowerPoint presentation.
2) PUBLIC COMMENTS
Online Public Comments
Online public comments were submitted by James Patterson, “Blocked Resident”, John Smith, Michael Dupray and Jacki Rider. Mayor Williams read the comment into the record submitted by James Patterson in accordance with his statement. 9 Public Comments
Ann Englehardt provided a comment.
3) COUNCILMEMBER COMMENTS
Councilmember Fuller and Mayor Williams provided comments. 4) CONSENT CALENDAR
4.1 Approve Minutes from the Regular Joint City Council/City Council Acting as the Successor Agency to the Redevelopment Agency/Public Financing Authority Meeting held October 8, 2024 (Libby Vreonis, City Clerk)
4.2 Report Out of Closed Session Memo (Derek Cole, City Attorney)
4.3 City of Oakley Quarterly Investment Report (1st Quarter FY 2024/25) (Jeri Tejeda, Administrative Services Director)
4.4 City of Oakley as Successor Agency to the Oakley Redevelopment Agency Quarterly Investment Report (1st Quarter FY 2024/25) (Jeri Tejeda, Administrative Services Director)
4.5 Adopt a Resolution Approving Annexation No. 41 (Oakley Shops at Laurel Fields) to the City of Oakley Community Facilities District No. 2015-2 (Parks, Streetlight, Landscape, and Stormwater Services) (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.6 Ratify Election: Adopt Ordinance No. 14-24 Authorizing the Levy of a Special Tax on Parcels of Land within Tax Area Zone 193 within the Oakley Special Police Tax Area for Police Protection Services for the Oakley Shops at Laurel Fields project located at 998 Laurel Road (Parcels 1 and 2 of Minor Subdivision Map 24-976) (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.7 Consideration of a Resolution Allocating American Rescue Plan Act (ARPA) funding to meet the definition of obligated as of December 31, 2024 as required by ARPA (Jeri Tejeda, Administrative Services Director)
4.8 Adopt a Resolution for the Award of Construction Contract to Specified Play Equipment Company for the Construction of a new Playground and Surfacing at Vintage Parkway Elementary School (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.9 Adopt a Resolution Approving the Proposal from Sanbell, and Authorizing the City Manager to Execute Amendment Number 1 to the Consulting Services Agreement with Sanbell for Design Services related to the East Cypress Road Widening at CCWD Canal Crossing Project at Jersey Island 10 Road-Capital Improvement Project 310 (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.10 Adopt a Resolution Approving a Subdivision Improvement Agreement with Civic Summer Lake North, LLC for Dal Porto Ranch Park which consists of Lake and Sports Park Improvements within the Summer Lake North Subdivision (Parcel C & Parcel D of Subdivision 9307) (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.11 Adopting a Resolution Accepting the Subdivision Improvements Associated with Subdivision 9284 The Ranchettes at Neroly Located at the Southeast Corner of Oakley Road and Neroly Road (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.12 Adopt a Resolution Amending the City's Proclamation Policy to Add Small Business Saturday to the Approved Proclamation List (Kim Snodgrass, Deputy City Clerk)
4.13 Adopt a Resolution Approving the Agreement with O'Hara Properties, LLC (APN 035-510-009) for "Stormwater Management Facility Operations and Maintenance Agreement and Right of Entry" for DR 08-20 Quick Quack Car Wash Project Located at 1054 Laurel Plaza and Authorizing the City Manager to Execute the Agreement (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.14 Adopt a Resolution Approving the Agreement with O'Hara Properties, LLC for "Agreement of Property Owner for Provision of Landscaping in the Public Right of Way" for DR 08-20 Quick Quack Car Wash Located at 1054 Laurel Road and Authorizing the City Manager to Execute the Agreement (Kevin Rohani, P.E., Public Works Director/City Engineer)
4.15 Adopt a Resolution of the City Council of Oakley Accepting a Grant Deed Conveying to the City of Oakley Certain Real Property Interests (portions of 041-021-022, located on Neroly Road) (Derek Cole, City Attorney)
4.16 Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Contract with Keep IT Simple for the Renewal of Licensing for Microsoft Windows Server Operating Systems through the California Multiple Award Schedule (CMAS) Contracting Process (Rob Barker, IT Manager)
4.17 Adopt a Resolution Authorizing the City Manager to Execute a Professional Services Contract with Keep IT Simple for the Purchase and Installation of Data Backup Equipment, Cloud Replication and Software through the California Multiple Award Schedule (CMAS) Contracting Process (Rob Barker, IT Manager)
11 4.18 Adopt a Resolution Authorizing Advertisement of Two Planning Commission Seats for Two-Year Terms Expiring February 27, 2025, and Directing Staff to Bring Back a Resolution at the First Meeting in November 2026 for Consideration to Change the Two Current 2-year term seats to 4- year terms in February 2027 to allow for 3 seats to expire in 2029 and 2 seats to expire in 2031 (Libby Vreonis, City Clerk)
Councilmember Fuller requested items 4.1, 4.7, 4.8, 4.10, 4.13, 4.14, and 4.18 pulled.
Mayor Williams requested item 4.9 pulled.
It was moved by Vice Mayor Shaw and seconded by Councilmember Meadows to approve the remainder of the Consent Calendar. Motion was unanimous and so ordered. (5-0)
Item 4.1
Councilmember Fuller mentioned the minutes are incomplete and not available for future use.
It was moved by Mayor Williams and seconded by Vice Mayor Shaw to approve the minutes as submitted. AYES: Henderson, Meadows, Shaw, Williams. NOES: Fuller. (4-1)
Item 4.7
Councilmember Fuller requested clarification regarding the reallocation of ARPA funds and a list of the allocation of funds to ensure the funds are going to the new library.
City Manager Joshua McMurray and Mayor Williams responded.
It was moved by Mayor Williams and seconded by Councilmember Meadows to adopt the resolution as submitted. AYES: Henderson, Meadows, Shaw, Williams. NOES:
Fuller. (4-1)
Item 4.8
Councilmember Fuller commented that the equipment is great and it would be nice to have new equipment in Creekside Park.
Vice Mayor Shaw requested clarification regarding whether the park at Vintage has ever had a playground for older children. Mr. McMurray responded.
It was moved by Councilmember Fuller and seconded by Vice Mayor Shaw to adopt the resolution as submitted. Motion was unanimous and so ordered. (5-0) 12 Item 4.9
Mayor Williams mentioned she pulled this item for the public to hear about improvements occurring on E. Cypress Road.
City Manager Joshua McMurray explained that this item is regarding Phase II of the E.
Cypress project where the road crosses the canal; this is a contract to adjust and amend the existing contract to add funding for additional design services.
It was moved by Mayor Williams and seconded by Councilmember Meadows to adopt the resolution. Motion was unanimous and so ordered. (5-0) Item 4.10
Councilmember Fuller requested clarification regarding who is responsible for playground equipment and maintenance of the park. Mr. McMurray and Mayor Williams responded.
Vice Mayor Shaw inquired how many ball fields the park will have. Mr. McMurray responded.
Mayor Williams requested Mr. McMurray explain how this agreement is different from the Cinquini Park agreement which he explained.
It was moved by Mayor Williams and seconded by Councilmember Meadows to adopt the resolution. Motion was unanimous and so ordered. (5-0) Item 4.13
Councilmember Fuller expressed that change orders should come before the City Council for approval rather than the City Engineer having approval authority.
Mayor Williams inquired if Councilmember Fuller does not want Quick Quack to participate in storm water management facility operations.
Councilmember Fuller referred to the contract which documents responsibilities, but also allows the City Engineer discretion to execute change orders, and he prefers change orders come to the Council for approval.
Vice Mayor Shaw commented that the contract clearly indicates the City is under no obligation for maintenance or repair, and if the City must take action, it will invoice the property owner for reimbursement.
Mr. McMurray mentioned this is a standard agreement for projects, they have to comply with the regional permit, and this section would allow for some onsite changes if conditions change; it gives some administrative flexibility. 13 Mayor Williams requested an example of a change and Mr. McMurray mentioned an example could be that the facility is designed and doesn’t work as designed.
Mayor Williams indicated the Council are experts; engineers and planners are better suited. Mr. McMurray agreed.
It was moved by Mayor Williams and seconded by Councilmember Meadows to adopt the resolution. AYES: Henderson, Meadows, Shaw, Williams. NOES: Fuller. (4-1) Item 4.14
Councilmember Fuller expressed concern with the same clause as in item 4.13, here in relation to landscaping requirements. Mr. McMurray responded that this agreement addresses right of way landscaping.
It was moved by Councilmember Meadows and seconded by Vice Mayor Shaw to adopt the resolution as submitted. AYES: Henderson, Meadows, Shaw, Williams. NOES:
Fuller. (4-1)
Item 4.18
Councilmember Fuller mentioned with the election outcome, he has detected unhappiness with the Planning Commission and suggested dispersing it and having people resubmit applications for reinstatement to the Planning Commission and open it to others. Vice Mayor Shaw and Mayor Williams responded.
It was moved by Councilmember Meadows and seconded by Vice Mayor Shaw to adopt the resolution as submitted. AYES: Henderson, Meadows, Shaw, Williams. NOES:
Fuller. (4-1)
5) PRESENTATIONS
5.1 Presentation of Proclamations 1. Law Enforcement Records and Support Personnel Appreciation Day (Paul Beard, Police Chief) 2. GIS Day (Brianne Visaya, Assistant Engineer) 3. Small Business Saturday (Oakley Chamber of Commerce and Local Businesses)
1. Mayor Williams presented the proclamation to Chief of Police Paul Beard and Police Records Supervisor Yvette Fagardo.
2. Mayor Williams presented the proclamation to Assistant Engineer Brianne Visaya. Ms. Visaya provided information regarding GIS, how it is applied in the City of Oakley, and thanked the City Council.
3. Mayor Williams presented the proclamation. Oleksii Chuiko with the Chamber of Commerce accepted the proclamation and encouraged everyone to visit local businesses, not just on the recognized day, but always. 14 6) PUBLIC HEARINGS
None.
7) REGULAR CALENDAR
None.
8) REPORTS
8.1 CITY MANAGER
(a) City Manager
(b) Business License Update
(c) Update from the Oaks Apartments
(d) Police Department New Badge Presentation
(a) City Manager Joshua McMurray announced the Climate Action Plan Public Workshop will be held November 18th at the Recreation Center, 6:00 p.m.-8:00 p.m., the City Hall closure 11/28-11/29 in recognition of Thanksgiving and the day after, and the Christmas Tree Lighting event will be held December 5th at 5 p.m. (b) Mr. McMurray announced that the October business license update is included in the agenda packet. He introduced The Oaks Apartments update and the Police presentation.
(c) Update from the Oaks Apartments
Public Comments
Michael Dupray, Jacki Rider and Barbara Bautista provided comments.
Oke Johnson, Executive Vice President of WinnCompanies, provided an update and introduced the new property manager.
Vice Mayor Shaw addressed standing issues and the City Council’s involvement at this point, and she provided suggestions.
Mayor Williams addressed miscommunication.
Mr. Johnson responded to the issues and concerns they mentioned. (d) Police Department New Badge Presentation
Chief of Police Paul Beard provided a PowerPoint presentation to share the history of Police badges and the new badge that will be issued November 1. 15 8.2 OAKLEY CITY COUNCIL/OAKLEY CITY COUNCIL ACTING AS THE
SUCCESSOR AGENCY TO THE OAKLEY REDEVELOPMENT AGENCY
(a) Reports from Council Liaisons to Regional Committees, Commissions and Boards AND Oakley City Council/Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency
(b) Requests for Future Agendas
Councilmember Henderson, Vice Mayor Shaw, Mayor Williams, Councilmember Fuller and Councilmember Meadows provided reports.
Councilmember Meadows requested the meeting be adjourned in honor of Joe Tovar. 9) WORK SESSIONS
None.
10) CLOSED SESSION
10.1 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION (Pursuant to Government Code section 54956.9(a)
Summer Lake Owners Association v. City of Oakley et al., Contra Costa Superior Court Case No. C24-01760
Mayor Williams read the item into the record. She thanked everyone for joining and mentioned after the closed session item is heard, the meeting will be adjourned, in honor of Joe Tovar.
11) ADJOURN
There being no further business, the meeting was adjourned at 8:50 p.m.
Respectfully Submitted,
Libby Vreonis
City Clerk
16 MEMORANDUM
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Date: November 13, 2024
To: Mayor and City Councilmembers
From: Derek P. Cole, City Attorney
CC: Joshua McMurray, City Manager
Subject: Closed Session Report-Out Memo
For Consideration at the City Council Meeting of December 10, 2024 Background and Analysis
The City Council considered the following closed session item during its regular meeting held November 12, 2024:
CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
(Pursuant to Government Code Section 54956.9(a)
Summer Lake Owners Association v. City of Oakley et al.
Contra Costa Superior Court Case No. C24-01760
Direction was provided to staff. There was no reportable action.
Fiscal Impact
None.
Recommendation
Receive and file this report.
Attachments
None.
17 STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Kim Snodgrass, City Clerk
SUBJECT: Regular Joint City Council / City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority 2025 Meeting Dates
Background and Analysis
The regular joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority meetings have traditionally been scheduled on the second and fourth Tuesdays of each month beginning at 6:30 p.m., and the second meetings in June, July, August, November and December have been canceled. Attached is a list of proposed meeting dates for 2025 for review and approval.
Note that Tuesday November 11, 2025 is Veterans Day and City Hall will be Closed.
Oakley Municipal Code section 2.1.002 states that if a regular meeting date is a legal holiday, the meeting may be held on the preceding business day. Staff recommends holding the meeting on Wednesday November 12 as it may be a more convenient time for anyone wanting to enjoy the long holiday weekend.
Consistency with the Oakley Strategic Plan 27+
This item is consistent with the Strategic Plan 27+ Community and Collaborative Partnerships Goals
Fiscal Impact
None
Staff Recommendation
Staff recommends that the Oakley City Council, Successor Agency and Public Financing Authority approve the attached list of proposed regular meeting dates for 2025 or approve other dates that would be more suitable.
Attachments
1. List of Proposed 2025 Meeting Dates
2. City Council Resolution Approving 2025 Meeting Dates
3. Successor Agency Resolution Approving 2025 Meeting Dates
4. Public Financing Authority Resolution Approving 2025 Meeting Dates Approved and
Forwarded to the
City Council
18 2025 REGULAR JOINT OAKLEY CITY COUNCIL/ OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE OAKLEY REDEVELOPMENT AGENCY / *PUBLIC
FINANCING AUTHORITY MEETING DATES
Regular Joint Oakley City Council/Oakley City Council acting as the Successor Agency to the Redevelopment Agency meetings are held on the second and fourth Tuesdays at 6:30 pm in the Council Chambers, located at 3231 Main Street, Oakley, CA.
The meeting dates for 2025 are as follows:
January 14
January 28
February 11
February 25
March 11
March 25
April 8
April 22
May 13
May 27
June 10
July 8
August 12
September 9
September 23
October 14
October 28
November 12**
December 9
No second meeting in the months of June, July, August, November, and December *Oakley Public Financing Authority meetings will be held jointly with the Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency meetings the second Tuesday of each month unless otherwise noticed.
**Due to the Veterans Day Holiday, the November meeting will be held on Wednesday November 12th. 19 Resolution No. XX-24 Page 1 of 1
RESOLUTION NO. XX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY APPROVING 2025 MEETING DATES FOR THE REGULAR JOINT OAKLEY CITY COUNCIL/
OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE
OAKLEY REDVELOPMENT AGENCY/OAKLEY PUBLIC FINANCING AUTHORITY BE IT RESOLVED by the City Council of the City of Oakley that the 2025 meeting dates Attached as Exhibit A for the Regular Joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority are hereby approved.
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th day of December, 2024 by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
____________________
, Mayor
ATTEST:
____________________ ___________
Kim Snodgrass, City Clerk Date
20 SA Resolution No. XX-24 Page 1 of 1
SA RESOLUTION NO. XX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY ACTING AS
THE SUCCESSOR AGENCY TO THE OAKLEY REDEVELOPMENT AGENCY APPROVING 2025 MEETING DATES FOR THE REGULAR JOINT OAKLEY CITY
COUNCIL/ OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO
THE OAKLEY REDEVELOPMENT AGENCY/OAKLEY PUBLIC FINANCING
AUTHORITY
BE IT RESOLVED by the Oakley City Council of the City of Oakley, acting as the Successor Agency to the Oakley Redevelopment Agency, that the 2025 meeting dates attached as Exhibit A for the Regular Joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority are hereby approved.
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th day of December, 2024 by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
____________________
, Mayor
ATTEST:
____________________ ___________
Kim Snodgrass, City Clerk Date
21 Resolution No. XX-24 Page 1 of 1
RESOLUTION NO. XX-24
A RESOLUTION OF THE OAKLEY PUBLIC FINANCING AUTHORITY APPROVING 2025 MEETING DATES FOR THE REGULAR JOINT OAKLEY CITY COUNCIL/
OAKLEY CITY COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE
OAKLEY REDEVELOPMENT AGENCY/OAKLEY PUBLIC FINANCING AUTHORITY BE IT RESOLVED by the City Council of the City of Oakley that the 2025 meeting dates attached as Exhibit A for the Regular Joint Oakley City Council / Oakley City Council Acting as the Successor Agency to the Oakley Redevelopment Agency/Oakley Public Financing Authority are hereby approved.
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th day of December, 2024 by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
____________________
, Chair
ATTEST:
____________________ ___________
Kim Snodgrass, City Clerk Date
22 STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Jeri Tejeda, Administrative Services Director
SUBJECT: Development Impact Fee Five-Year Report
Background and Analysis
State law allows the City to charge fees to offset impacts associated with new development. Along with requirements related to the amount of the fees, nexus to impacts, and specifications for use of the fees, the Law requires that the City prepare annual and five-year reports for each fee program. The annual report must include a fee schedule, beginning and ending fund balances, revenues, expenditures, and project information. The five-year report must include information showing the fees are being spent timely and include supporting information about each program’s projects that support making a number of required findings. Once prepared and made available to the Public, it must also be presented to the City Council. The attached report is the City’s Five-Year Report for the period ending June 30, 2024, containing the prescribed information for each of the City’s Impact Fee Programs.
The legal requirements for enactment of a development impact fee program are set forth in the California Government Code sections 66000-66025 (the “Mitigation Fee Act”), the bulk of which was adopted as 1987’s Assembly Bill (AB) 1600 and thus are commonly referred to as “AB 1600 requirements”. Each fiscal year the City publishes a Development Impact Fee Report meeting the requirements of both California Government Code Section 66006(b) and 66001(d). The law also requires the report to be made available to the public within 180 days of the close of a fiscal year and that it be presented to the City Council at the next regular meeting not less than 15 days after it is made available to the public. This report was made available to the public on November 25, 2024
Consistency with the Oakley Strategic Plan 27+
This agenda item is consistent with the Strategic Plan 27+’s Finance and Fiscal Responsibility objective to communicate on financial updates including financial health, priorities, and unexpected expenditures.
Fiscal Impact
None
Approved and
Forwarded to the
City Council
23 STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Staff Recommendation
Staff recommends that the City Council approve the Resolution accepting the attached Report and making the required findings pursuant to Government Code Sections 66000 et seq.
Attachments
1. Resolution
2. Five-Year Report
24 Resolution No. XX-24 Page 1
of 2
RESOLUTION NO. XX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY
ACCEPTING THE FIVE-YEAR DEVELOPMENT IMPACT FEE REPORT FOR THE PERIOD ENDING JUNE 30, 2024 AND MAKING REQUIRED FINDINGS AS REQUIRED BY GOVERNMENT CODE SECTIONS 66000 ET SEQ.
WHEREAS, in 1987 Assembly Bill 1600 (AB 1600) was adopted; and WHEREAS, State Law allows Cities to establish development impact fees to mitigate the impacts of new development on growing communities; and WHEREAS, the City of Oakley did, in 2003, adopt its existing development impact fee programs; and
WHEREAS, Sections 66000 et seq. of the California Government Code contains the provisions defining parameters of development impact fees, as well as reporting and maintenance requirements to ensure the ongoing appropriateness of the fees charged; and
WHEREAS, the attached Five-Year Report contains information that meets both the annual and five year reporting requirements described in the Code; and WHEREAS, State Law also requires that every five years the Council make the following specific findings for each fee program related to that portion of the account or fund remaining unexpended, whether committed or uncommitted:
a) Identify the purpose to which the fee is to be put;
b) Demonstrate a reasonable relationship between the fee and the purpose for which it is charged;
c) Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements identified in the program; d) Designate the approximate dates on which the funding referred to in c) is expected to be deposited into the appropriate account or fund; and WHEREAS, Staff recommends the City Council accept the attached report and incorporate it herein in order to make the required findings.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Oakley accepts the attached Five-Year Report and makes the following required findings for each of the City’s Development Impact Fee Programs, incorporating the information from the report into this resolution.
1. The report includes the stated purpose for each fee;
2. The report includes the amount of fees unexpended in each Fund on June 30, 2024 and sufficient detail regarding the expected use of the fees to 25 Resolution No. XX-24 Page 2
of 2
demonstrate a reasonable relationship between the fee and the purpose for which it is charged;
3. The report includes the sources and amounts of funding anticipated to complete financing of incomplete improvements identified in eachprogram.
4. The report was made available to the public on November 25, 2024, and within 180 days of the end of the fiscal year.
5. The report includes the approximate dates on which the funding is expected to be deposited into the appropriate account or fund to finance the incomplete improvements noted.
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th day of December 2024 by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
_______________________
,Mayor
ATTEST:
_____________________ _______________________
Kim Snodgrass, City Clerk Date
26 Five Year Report
Development Impact Fees
For the City of Oakley
For Fiscal Year Ending June 30, 2024
Development Impact fees are fees, other than a tax or special assessment, which is charged by a local government agency to an applicant in connection with approval of a development project. The purpose of these fees is to defray all or a portion of the cost of public infrastructure related to the development project.
The legal requirements for enactment of a development impact program are set forth in the California Government Code sections 66000-66025 (the “Mitigation Fee Act”), the bulk of which was adopted as 1987’s Assembly Bill (AB) 1600 and thus are commonly referred to as “AB 1600 requirements.” The annual report must be made available to the public no later than 180 days after the end of the fiscal year and must be presented to the City Council at least fifteen days after it is made available to the public. The five-year report must be made available to the public following the fifth year the fees are collected and every five years thereafter.
This report is the City's Five-Year Report for the period ended June 30, 2024.
This report includes all of the Annual Report required data, and data that supports the findings required by the Code for the five-year period. Below, and on the following pages you will find for each fee program:
1. A brief description of the program.
2. Beginning and ending balances for the year.
3. Amount of fees collected, and the interest earned during theyear.
4. Total Expenditures for the year.
5. A summary of fund balances and five-year test.
6. A detailed list of current year disbursements by project, including the percentages funded by fees, including operating transfers.
7. Information listing the programs' projects expected to be funded with fees that have been collected but unspent, whether committed or not yet committed, including data from the City's most current Capital Improvement Plan.
8. A current schedule of fees.
27 The fee programs included in this report are the following:
Section A - Traffic Impact Fee Program
Section B - Park Impact Fee Program
Section C - Public Facilities Impact Fee Program
Section D - Fire Facilities Impact Fee Program
Program Descriptions
A. Traffic Impact Fee Program
The Traffic Impact Fee Program was established by the City on incorporation in 1999, and included separate Area of Benefit and Median Island Fees. In 2003, all of these programs were rolled up into a broader Traffic Impact Fee Program. The Program's stated purpose is to finance roadway improvements to reduce the impacts caused by future development in the City. The City accounts for the program in its Traffic Impact Fee Fund.
B. Park Impact Fee Program
In 2003, the City amended its existing Park Impact Fee Program. The stated purpose for the program is to acquire property and develop city parks to reduce the impacts caused by future development in the City. The City accounts for the program in its Park Impact Fee Fund.
C. Public Facilities Impact Fee Program
The Public Facilities Impact Fee Program was established by the City in 2003 to finance the acquisition, or design, engineering, construction, and other costs related to the purchase or construction of the Civic Center, Community Center, and Corporation Yard detailed in the resolution establishing the fee. These facilities were identified as necessary to reduce the impacts caused by future development in the City. The City accounts for the program in its Public Facilities Impact Fee Fund.
D. Fire Facilities Impact Fee Program
The Fire Facilities Impact Fee Program was established by the City in 2003 to finance the acquisition, design, engineering, construction, upgrade and or other costs related to the improved fire facilities in Oakley and Knightsen. Specific projects were identified in the enabling legislation, although subject to revision by the City Council. 28 Attached Supporting Documentation
The pages following include the supporting documentation required to meet the annual program reporting requirements and to support the Council's ability to make the findings they are required to make for each program as part of this five-year report.
The City's Capital Improvement Plan (CIP) is updated annually and provides a longerterm view of the City's plan for public improvements. The Fee Program revenues are budgeted and allocated through the annual CIP and City Budget process. References to CIP project numbers in the attachments have been provided where they are part of the adopted CIP.
29 Section A Summary of Annual Activity Fund Fee Interest & Fund Balance Income Misc Inc Expenditures Balance
6/30/2023 23/24 23/24 23/24 06/30/24
$ 12,255,516 1,494,245 691,272 1,438,445 $ 13,002,588 *** ***
Section B Summary of Fund Balance
Five Year Revenue Test
Using First In First Out Method
Unspent Funds Representing Ending Fund Balance: Amount
Revenues Collected from FY 19/20 -
Revenues Collected from FY 20/21 4,288,176
Revenues Collected from FY 21/22 4,329,404
Revenues Collected from FY 22/23 2,199,491
Revenues Collected from FY 23/24 2,185,517
Deferred Impact Fees Receivable (630,216)
Total Ending Fund Balance $ 12,372,373
Section C Summary of Expenditures Future Future Future
Traffic Fee Add'l Appropriations & Funding
% % Funded Expenditures Appropriations Other Funding Sources & Expenditure Detail: CIP # Complete by Fee 23/24 24/25 - 28/29 24/25 - 28/29 Construction Administrative & Operating Expenditures 100% $ 138,076 - Downtown Train Platform 205 100% 8% 163,645 - - -
E. Cypress - Knightson Av Intersection Signal 247 0% 0% 249,416 89,508 399,992 489,501 O'Hara AV/Carpenter RD Intersection IMP 263 4% 100% 1,277 334,620 - 334,620 Laurel RD Extension (Teton-Sellers) 273 54% 100% 28,656 164,750 - 164,750 Laurel RD Extension (Cloverbrook-O'Hara) 280 0% 55% 629,060 3,047,083 5,000,000 8,047,083 FY 2023/24 Traffic Signal Modernization 299 100% 100% 146,746 - - - East Cypress Rd Lane Alignment Analysis (RR tracks to Main Stree 301 100% 100% 80,568 - - - East Cypress Road Widening (Jersey Island Rd to Bethel Island Rd 302 0% 1% 1,002 5,557 - 5,557 East Cypress Road Widening at CCWD Canal Crossing Project 310 1% 20% - 1,900,000 7,407,776 9,307,776 $ 1,438,445 $ 5,541,518 $ 12,807,768 $ 18,349,286
TRAFFIC IMPACT FEES
Above includes $606,402 in deferred impact fees receivable from the Successor Agency to the Oakley Redevelopment Agency for a prior housing project. The balance is due on or before December 2063 at variable interest rate.
30 Section A Summary of Annual Activity Fund Fee Interest & Fund Balance Income Misc Inc Expenditures Balance
6/30/2023 23/24 23/24 23/24 06/30/24
$ 6,473,151 136,838 291,087 637,198 $ 6,263,877 ***
***
Section B Summary of Fund Balance
Five Year Revenue Test
Using First In First Out Method
Unspent Funds Representing Ending Fund Balance: Amount
Revenues Collected from FY 19/20 -
Revenues Collected from FY 20/21 1,847,903
Revenues Collected from FY 21/22 2,588,457
Revenues Collected from FY 22/23 1,399,593
Revenues Collected from FY 23/24 427,924
Deferred Impact Fees Receivable (467,242)
Total Ending Fund Balance $ 5,796,635
Section C Summary of Expenditures Future Future Future
Park Fee Additional Appropriations Funding
% % Funded Expenditures Appropriations & Other Funding Sources & Expenditure Detail: CIP # Complete by Fee 23/24 24/25 - 28/29 24/25 - 28/29 Construction Administrative Fees & Expenses 100% 12,416 TBD - -
Oakley Regional Community Park 176 100% 15% 37,975 - - - Irrigation Well Install-Fredom Basin 265 66% 50% 185,820 - 123,609 123,609 Enrico Cinquinin Park Construction 281 5% 100% 151,480 4,932,781 - 4,932,781 Koda Dog Park Shade Structure 287 100% 100% 150,616 - - - Marsh Creek Glenn Park Renovation 306 0% 60% - 300,000 200,000 500,000 City Parks Drinking Fountain Replacement 308 100% 100% 98,891 - - - $ 637,198 $ 5,232,781 $ 323,609 $ 5,556,390
PARK IMPACT FEES
Above includes $449,587 in deferred impact fees
receivable from the Successor Agency to the
Oakley Redevelopment Agency for a prior housing
project. The balance is due on or before December
2063 at variable interest rate.
31 Section A Summary of Annual Activity Fund Fee Interest & Fund Balance Income Misc Inc Expenditures Balance
6/30/2023 23/24 23/24 23/24 06/30/24
$ 3,037,070 362,789 135,447 1,133,325 $ 2,401,980 ***
***
Section B Summary of Fund Balance
Five Year Revenue Test
Using First In First Out Method
Unspent Funds Representing Ending Fund Balance: Amount
Revenues Collected from FY 19/20 -
Revenues Collected from FY 20/21 -
Revenues Collected from FY 21/22 1,256,486
Revenues Collected from FY 22/23 647,259
Revenues Collected from FY 23/24 498,235
Deferred Impact Fees Receivable (149,555)
Total Ending Fund Balance $ 2,252,426
Section C Summary of Expenditures Future Future Future
Public Fac. Fee Additional Appropriations Funding
% % Funded Expenditures Appropriations & Other Funding Sources & Expenditure Detail: CIP # Complete by Fee 23/24 24/25 - 28/29 24/25 - 28/29 Construction Administrative Fees 100% $ 16,426 TBD
Transfer to Fund 351 2006 COP Debt Service Fund 100% 676,779 3,364,756 City Hall Roof Top Solar Proejct 286 100% 92% 274,520 - - - Main Street Bridge Rehab at CC Canal 187 100% 34% 165,600 - - - $ 1,133,325 $ 3,364,756 $ - $ -
PUBLIC FACILITIES IMPACT FEES
Above includes $143,904 in deferred impact fees
receivable from the Successor Agency to the Oakley
Redevelopment Agency for a prior housing project.
The balance is due on or before December 2063 at
variable interest rate.
32 Section A Summary of Annual Activity Fund Fee Interest & Fund Balance Income Misc Inc Expenditures Balance
6/30/2023 23/24 23/24 23/24 06/30/24
$ - 136,023 - 136,023 $ - *
*
Section B Summary of Fund Balance
Five Year Revenue Test
Using First In First Out Method
Unspent Funds Representing Ending Fund Balance: Amount
Revenues Collected from FY 19/20 -
Revenues Collected from FY 20/21 -
Revenues Collected from FY 21/22 -
Revenues Collected from FY 22/23 -
Revenues Collected from FY 23/24 -
Total Ending Fund Balance $ -
Section C Summary of Expenditures Future Future Future
Fire Fac. Fee Additional Appropriations Funding
% % Funded Expenditures Appropriations & Other Funding Sources & Expenditure Detail: CIP # Complete by Fee 23/24 24/25 - 28/29 24/25 - 28/29 Construction Administrative Fees 100% $ - $ -
Co-Op Agreement with District for Station 55 $136,023 $0 $ 136,023 $ -
FIRE PROTECTION FACILITIES IMPACT FEES
The conditions of approval for the Summerlake
Subdivision had required the developer of the
Summerlake Subdivision to construct a new Fire
Station on East Cypress Road across from this
subdivision. This task had been delayed for
several years, and finally in 2017 a settlement
was reached. A contractor and architect was
hired by the City for the design and build of this
new Fire Station. The project completed in FY
2020. The City entered into a Cooperative
agreement with the District and impact fees will
be remitted as they become available for the
additional costs of Station 55 that were
requested by the District. In FY 2021 an agreement
was made with the Fire District that all Fire Impact
Fees will be collected by the district at permit
issuance. The City is no longer collecting this fee
but will continue to do the reporting until the liability is paid off.
33 FY 24-25 Impact Fees by Land Use Category (fees are subject to change) Effective July 1, 2024
Fee Type
Single
Family
(per unit)
MultiFamily
(per unit)
Accessory
Dwelling
Unit***
(“ADU”)
Commercial
(per 1,000
sf,)
Commercial
Recreation
(per 1,000
sf.)
Business
Park (per
1,000 sf.)
Light
Industrial
(per 1,000
sf.)
Utility
Energy
(per 1,000
sf.)
Other (as
noted)
Oakley Traffic $15,302.48 $9,334.83 $4,387.37 $6733.09 $9,028.15 $15,454.55 $9,028.15 $9,028.15 $15,302.48 (per peak hour trip)
RTDIM (Regional
Traffic) $24,306.66 $14,920.73 $7,012.74 $2,373.50 $2,373.50 $2,060.40 $2,060.40 $2,060.40 $28,596.13 (per peak hour trip) Park Acquisition $1,126.58 $736.27 $346.05 $166.01 $133.06 $332.02 $140.66 $140.66 Park Improvement $9,789.47 $6,397.05 $3,006.62 $1,442.13 $1,151.93 $2,881.72 $1,225.43 $1,225.43 Public Facilities $4,109.17 $2,690.37 $1,264.47 $606.73 $484.99 $1,211.46 $514.92 $514.92 General Plan* See “other” See “other” Not
charged See “other” See “other” See “other” See “other” See “other” $300.00 (per gross acre) South Oakley
Infrastructure Plan** See “other” See “other” Not charged See “other” See “other” See “other” See “other” See “other” $352.00 (per gross acre) Total $54,634.36 $34,079.25 $16,017.25 $11,321.46 $13,171.63 $21,940.15 $12,969.56 $12,969.56 * The General Plan fee is collected to reimburse the City for the costs associated with preparing and adopting the City’s General Plan. ** The SOIMP fee is collected to reimburse the City for the costs associated with preparing and adopting the SOIMP. *** ADU impact fees are only collected for ADUs that are 750 square feet or greater in floor area.
Additional fees may be required by outside agencies, such as sewer, water, school impact, and drainage fees. You are encouraged to contact the applicable agency to inquire about fee amounts. Some outside agency fees may be collected by the City and transferred to the applicable agency. For more information, see below:
• Contact Ironhouse Sanitary District at (925) 625-2279 for sewer connection fees. • Contact Diablo Water District at (925) 625-3798 for water service hook-up fees. • Contact Contra Costa County Flood Control and Water Conservation District at (925) 313-2000 for drainage impact fees. • Contact Oakley Union Elementary School District at (925) 625-0700 for school impact fees for all parcels east of Empire Avenue. • Contact Liberty Union High School District at (925) 634-2166 for school impact fees for all parcels east of Empire Avenue. • Contact Antioch Unified School District at (925) 706-4100 for school impact fees for all parcels west of Empire Avenue. • Contact Contra Costa Environmental Health at (925) 692-2500 for information on wells or septic systems. • Contact Contra Costa County Fire Protection District at (925) 941-3300 for related impact fees. 34 STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Kevin Rohani, P.E., Public Works Director/City Engineer SUBJECT: Adopt a Resolution Approving a Subdivision Improvement Agreement and Final Map for Brownstone Subdivision 8803 (Located on the north side of Brownstone Road, approximately 500 feet west of Main Street) Background and Analysis
On February 12, 2007, the City Council adopted Resolution 18-07 approving the project Vesting Tentative Map for Brownstone Subdivision 8803 to subdivide the
10.77-acre property into 50 single family residential lots. The project site is located at the north side of Brownstone Road, approximately 500 feet west of Main Street (APN:
034-210-009).
The project’s main challenge for this site is the lack of storm drain infrastructure in the south Oakley area. This property naturally drains to the east towards Marsh Creek; however, the 72-inch storm drain trunk line needed to collect and convey stormwater for this watershed has not been constructed and spans across several private properties. Drainage easements to install this drainage infrastructure have not yet been acquired and dedicated to the City of Oakley.
On July 13, 2021, the City Council at the request of Clyde Miles Construction Co. Inc., approved Resolution 88-21 approving a modification of Condition of Approval number 69 of Resolution 18-07 related to the drainage improvements and the construction of Storm Drain Line C of Drainage Area 30B. The modified COA would allow for the project to develop with onsite stormwater detention and forego construction of Line C.
Clyde Miles Construction Co, Inc., a California limited liability company (Developer) has now requested approval by the City Council for the recordation of the final map for Subdivision 8803 Brownstone. The subdivision improvements include the construction of an infiltration basin on 6 lots (lots 26-31) to collect the stormwater runoff generated from the proposed subdivision. As required by the modified condition of approval, a Grant Deed of Development Rights will be recorded over these 6 lots in conjunction with the recording of the final map. The Grant Deed of Development Rights will prohibit any development on these 6 lots until the final improvement of Storm Drain Line C downstream of this subdivision is constructed. The interim infiltration basin will be owned and maintained by the developer until such time that Storm Drain Line C is constructed.
Approved and
Forwarded to the
City Council
35 STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US In order to satisfy all remaining conditions of approval, the applicant has requested that the City enter into a Subdivision Improvement Agreement (SIA).
The City Engineer and City Surveyor have reviewed the tentative map approval documents and the final map, and have found the map to be technically correct, in substantial compliance with the conditionally approved tentative map and all final map conditions of approval have been met (or are being secured by way of this subdivision agreement).
Consistency with the Oakley Strategic Plan 27+
This item is consistent with the Strategic Plan 27+ Community Health and Safety goal to build safe streets and healthy neighborhoods.
Fiscal Impact
There is no fiscal impact associated with this action as all the work is being performed by the Developer.
Staff Recommendation
Staff recommends that the City Council adopt the Resolutions authorizing the City Manager to execute the Subdivision Improvement Agreement (SIA) and approving the Final Map for Subdivision 8803 Brownstone.
Attachments
Attachment 1. Vicinity Map
Attachment 2. Resolution Approving the Final Map titled Subdivision 8803 Brownstone Attachment 3. Resolution Approving the Subdivision Improvement Agreement (SIA) Attachment 4. Subdivision Improvement Agreement (SIA)
Attachment 5. Subdivision 8803 Brownstone Final Map
36 Vicinity Map
Subdivision 8803
Brownstone ¯
37 Resolution No. __-24 Page 1
RESOLUTION NO. __-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY
APPROVING THE FINAL MAP FOR BROWNSTONE SUBDIVISION 8803 WHEREAS, On February 12, 2007, the City Council adopted Resolution 18-07 approving the project Vesting Tentative Map (8803) to subdivide the 10.77-acre property into 50 single family residential lots. The project site is located at the north side of Brownstone Road, approximately 500 feet west of Main Street (APN:
034-210-009); and
WHEREAS, on July 13, 2021, the City Council approved Resolution 88-21 to modify condition of approval number 69 related to the drainage improvements and construction of Storm Drain Line C in Drainage Area 30B. As required by the modified condition of approval, a Grant Deed of Development Rights will be recorded over these 6 lots (Lots 26-31) in conjunction with the recording of the final map. The Grant Deed of Development Rights will prohibit any development on these 6 lots until the final improvement of Storm Drain Line C downstream of this subdivision is constructed; and
WHEREAS, Clyde Miles Construction, Co, Inc. has satisfied the necessary conditions of approval for Subdivision 8803 Brownstone; and WHEREAS, the City Engineer has determined that the conditions of approval required prior to final map approval for the project have been satisfied; and WHEREAS, the City Surveyor has determined that the final map attached herein as Exhibit A is technically correct.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Oakley that the final map labeled “Subdivision 8803 Brownstone”, as prepared by dk Engineering be approved.
PASSED AND ADOPTED by the City Council of the City of Oakley, California, this 10th day of December 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
38 Resolution No. __-24 Page 2
APPROVED:
_______________________
ATTEST: ,Mayor
______
Kim Snodgrass, City Clerk Date
39 Resolution No. __-24 Page 1
RESOLUTION NO. __-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY
APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT WITH CLYDE MILES CONSTRUCTION CO, INC. FOR SUBDIVISION 8803 BROWNSTONE
AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT WHEREAS, the City Council of the City of Oakley, California, wishes to enter into a Subdivision Improvement Agreement with Clyde Miles Construction Co, Inc. for the development of a residential subdivision known as Subdivision 8803 Brownstone; and
WHEREAS, this agreement will require the developer to complete $518,139 for Grading, $1,900,077 for public Roadway Improvements, and $57,337 for public Landscape Improvements, in accordance with the project conditions of approval and City standard construction design.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Oakley that the Subdivision Improvement Agreement with Clyde Miles Construction Co, Inc. is hereby approved, and the City Manager is hereby authorized to execute the Subdivision Improvement Agreement for the development of Subdivision 8803 Brownstone in the form attached hereto as Exhibit A is made part of this resolution.
PASSED AND ADOPTED by the City Council of the City of Oakley, California, this 10th day of December 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
APPROVED:
_______________________
ATTEST: ,Mayor
______
Kim Snodgrass, City Clerk Date
40
CITY OF OAKLEY
SUBDIVISION IMPROVEMENT AGREEMENT
SUBDIVISION 8803
This agreement is made and entered into this 10th day of December, 2024 by and between the City of Oakley, a municipal corporation, hereinafter referred to as "CITY", and Clyde Miles Construction Co., hereinafter referred to as "DEVELOPER".
R E C I T A L S
WHEREAS, it has been determined by the City Council of the City of Oakley, State of California, that DEVELOPER, the subdivider of Subdivision 8803, desires to improve and dedicate those public improvements (hereafter “The Improvements”) required by the conditions of approval for the project as adopted by the City of Oakley City Council via Resolution Number 18-07 and modified by Resolution Number 88-21 in accordance with the requirements and conditions set forth in approvals, the requirements of the Subdivision Map Act of the State of California, and those certain plans and specifications for said development approved by CITY and titled “Brownstone Grading Plan Subdivision 8803” and “Brownstone Improvement Plans Subdivision 8803” as prepared by dk Engineering. and Landscape Plans titled “Brownstone – Offsites Subdivision 8803 Landscape Construction Documents” prepared by Ripley Design Group, Inc., now on file in the office of the City Engineer, which are hereby referred to for a more definite and distinct description of the work to be performed under this Agreement as though set forth at length herein; and WHEREAS, DEVELOPER and CITY acknowledge that not all conditions of approval (“COA”) contained in Resolution Number 18-07 and Resolution Number 88-21 have been satisfied, but nevertheless, DEVELOPER desires to file a final map. The satisfaction of all COA are the subject of this Agreement. DEVELOPER’s agreement to satisfy all COA including the aforementioned COA and construct the Improvements identified in the aforementioned COA is a material part of the consideration for this Agreement; and
WHEREAS, DEVELOPER intends to satisfactorily complete The Improvements within the time hereinafter specified, and CITY intends to accept DEVELOPER's offer(s) of dedication of The Improvements in consideration for DEVELOPER's satisfactory performance of the terms and conditions of this Agreement:
NOW, THEREFORE, in consideration of the mutual promises, conditions and covenants herein contained, the parties agree as follows:
1. Improvements.
DEVELOPER agrees to install the road improvements (both public and private), sewer and drainage improvements, signs, street lights, fire hydrants, landscaping, and such other improvements (including appurtenant equipment) as required as conditions 41 of approval of Tentative Map 8803 as set forth in Exhibit A to this Agreement, which is incorporated herein as if set forth at this point, or as otherwise required in the subdivision ordinance., including without limitation all Improvements identified in the following unsatisfied COA’s. In the event that any provision of this Agreement conflicts with the provisions of Exhibit A the provisions of Exhibit A shall prevail to the extent that the conflicting provision in Exhibit A requires a greater or more extensive improvement or expenditure, or to the extent that that provision extends DEVELOPER’s obligations over a greater period of time than the specific provision set forth herein. Such improvements shall also be made in conformance with the City of Oakley Municipal Code and Contra Costa County Ordinance Code as adopted and enforced by the City of Oakley.
DEVELOPER will commence construction of The Improvements within 120 days following the date on which CITY executes this Agreement. DEVELOPER shall complete said work not later than 12 months following said date of execution in a good workmanlike manner, in accordance with accepted construction practices and in a manner equal or superior to the requirements of the City of Oakley Municipal Code and Contra Costa County Ordinance Code and rulings made thereunder; and where there is a conflict between the improvement plans and the City Municipal Code or County Ordinance Code, the stricter requirements shall govern. It is understood that the City of Oakley was incorporated effective July 1, 1999, and as such continues to rely on certain laws, ordinances and design standards of the County of Contra Costa. References herein to the County Code or County Ordinance Code are understood to refer to such ordinances and codes as if adopted by the City of Oakley.
Time is of the essence in this Agreement. Upon completion, DEVELOPER shall furnish CITY with a complete and reproducible set of final as-built plans of The Improvements, including any authorized modifications.
2. Estimated Cost of Improvements and Possible Future Cash Deposit.
The estimated cost of constructing The Improvements required by this Agreement as adjusted for inflation is agreed to be $1,900,077 for Public Improvements, $518,139 for Grading and $57,337 for Public Landscaping. Said amounts include costs and reasonable expenses and fees which may be incurred in enforcing the obligation secured.
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3. Bonds Furnished.
Concurrently with the execution of this Agreement, DEVELOPER shall furnish CITY with the following security in the forms specified in Government Code sections 66499.1 and 66499.2 or in a form satisfactory to the CITY Attorney if different from said Government Code forms:
a. Faithful Performance. Either a cash deposit, a corporate surety bond issued by a company duly and legally licensed to conduct a general surety business in the State of California, or an instrument of credit equivalent to one hundred percent (100%) of the estimate set forth in Paragraph 2 and sufficient to assure CITY that The Improvements will be satisfactorily completed. A minimum of one percent (1%) of the security shall be a cash deposit.
b. Labor and Materials. Either a cash deposit, a corporate surety bond issued by a company duly and legally licensed to conduct a general surety business in the State of California, or an instrument of credit equivalent to fifty percent (50%) of the estimate set forth in Paragraph 2 and sufficient to assure CITY that DEVELOPER'S contractors, subcontractors, and other persons furnishing labor, materials, or equipment shall be paid therefor.
c. If required by CITY, a cash deposit, corporate surety bond, or instrument of credit sufficient to assure CITY that the surface water drainage of the subdivision shall not interfere with the use of neighboring property, including public streets and highways.
CITY shall be the sole indemnitee named on any instrument required by this Agreement. Any instrument or deposit required herein shall conform with the provisions of Chapter 5 of the Subdivision Map Act. DEVELOPER may request that portions or all of the bonds may be substituted by other parties in the event that portions or all of the Subdivision is sold to other parties, and such substitution shall not be unreasonably withheld by CITY.
4. Prevailing Wage.
CITY has determined that construction of The Improvements falls within the definition of “public works” set forth in California Labor Code Section 1720. Subject to any amendments to Labor Code Section 1720 et seq., DEVELOPER shall comply with Labor Code Section 1720 et seq., shall comply with the provisions set forth in Exhibit B and shall ensure that any contractors and subcontractors comply with the provisions of Exhibit B. DEVELOPER shall waive, indemnify, hold harmless and defend CITY concerning any liability arising out of Labor Code Section 1720 et seq. 43
5. Insurance Required.
Concurrently with the execution hereof, DEVELOPER shall obtain or cause to be obtained and filed with the CITY, all insurance required in this paragraph and as set forth in Exhibit C, and such insurance shall have been approved by the Finance Director of CITY, or his designee, as to form, amount and carrier. Prior to the commencement of work under this Agreement, DEVELOPER's general contractor shall obtain or cause to be obtained and filed with the Finance Director, all insurance required under this paragraph and as set forth in Exhibit C, evidenced herein as Exhibit D, and such insurance shall have been approved by the Finance Director of CITY, as to form, amount and carrier. DEVELOPER shall not allow any contractor or subcontractor to commence work on this contract or subcontract until all insurance required for DEVELOPER and DEVELOPER's general contractor shall have been so obtained and approved. Said insurance shall be maintained in full force and effect until the completion of work under this Agreement and the final acceptance thereof by CITY. All requirements herein provided shall appear either in the body of the insurance policies or as endorsements and shall specifically bind the insurance carrier.
6. Work Performance and Guarantee.
Except as otherwise expressly provided in this Agreement, and excepting only items of routine maintenance, ordinary wear and tear and unusual abuse or neglect, DEVELOPER guarantees all work executed by DEVELOPER and/or DEVELOPER's agents, and all supplies, materials and devices of whatsoever nature incorporated in, or attached to the work, or otherwise delivered to CITY as a part of the work pursuant to the Agreement, to be free of all defects of workmanship and materials for a period of one (1) year after initial acceptance of the entire work by CITY. DEVELOPER shall repair or replace any or all such work or material, together with all or any other work or materials which may be displaced or damaged in so doing, that may prove defective in workmanship or material within said one-year guarantee period without expense or charge of any nature whatsoever to CITY. DEVELOPER further covenants and agrees that when defects in design, workmanship and materials actually appear during the oneyear guarantee period, and have been corrected, the guarantee period shall automatically be extended for an additional year to insure that such defects have actually been corrected.
In the event the DEVELOPER shall fail to comply with the conditions of the foregoing guarantee within thirty (30) days time, after being notified of the defect in writing, CITY shall have the right, but shall not be obligated, to repair or obtain the repair of the defect, and DEVELOPER shall pay to CITY on demand all costs and expense of such repair. Notwithstanding anything herein to the contrary, in the event that any defect in workmanship or material covered by the foregoing guarantee results in a condition which constitutes an immediate hazard to the public health, safety, or welfare, CITY shall have the right to immediately repair, or cause to be repaired, such defect, and DEVELOPER shall pay to CITY on demand all costs and expense of such repair. 44
The foregoing statement relating to hazards to health and safety shall be deemed to include either temporary or permanent repairs which may be required as determined in the sole discretion and judgment of CITY.
If CITY, at its sole option, makes or causes to be made the necessary repairs or replacements or performs the necessary work, DEVELOPER shall pay, in addition to actual costs and expenses of such repair or work, fifty percent (50%) of such costs and expenses for overhead and interest at the maximum rate of interest permitted by law accruing thirty (30) days from the date of billing for such work or repairs.
7. Inspection of the Work.
DEVELOPER shall guarantee free access to CITY through its City Engineer and his designated representative for the safe and convenient inspection of the work throughout its construction. Said CITY representative shall have the authority to reject all materials and workmanship which are not in accordance with the plans and specifications, and all such materials and or work shall be removed promptly by DEVELOPER and replaced to the satisfaction of CITY without any expense to CITY in strict accordance with the improvement plans and specifications.
8. Agreement Assignment.
This Agreement shall not be assigned by DEVELOPER without the written consent of CITY.
9. Abandonment of Work.
Neither DEVELOPER nor any of DEVELOPER's agents or contractors are or shall be considered to be agents of CITY in connection with the performance of DEVELOPER's obligations under this Agreement.
If DEVELOPER refuses or fails to obtain prosecution of the work, or any severable part thereof, with such diligence as will insure its completion within the time specified, or any extension thereof, or fails to obtain completion of said work within such time, or if DEVELOPER should be adjudged as bankrupt, or should make a general assignment for the benefit of DEVELOPER's creditors, or if a receiver should be appointed, or if DEVELOPER, or any of DEVELOPER's contractors, subcontractors, agents or employees should violate any of the provisions of this Agreement, the CITY through its Public Works Director may serve written notice on DEVELOPER and DEVELOPER's surety or holder of other security of breach of this Agreement, or of any portion, thereof, and default of DEVELOPER.
In the event of any such notice of breach of this Agreement, DEVELOPER's surety shall have the duty to take over and complete The Improvements herein specified; provided, however, that if the surety, within thirty (30) days after the serving upon it of such notice of breach, does not give CITY written notice of its intention to take 45
over the performance of the contract, and does not commence performance thereof within thirty (30) days after notice to CITY of such election, CITY may take over the work and prosecute the same to completion, by contract or by any other method CITY may deem advisable, for the account and at the expense of DEVELOPER and DEVELOPER's surety shall be liable to CITY for any damages and/or reasonable and documented excess costs occasioned by CITY thereby; and, in such event, CITY, without liability for so doing, may take possession of, and utilize in completing the work, such materials, appliances, plant and other property belonging to DEVELOPER as may be on the site of the work and necessary therefor.
All notices herein required shall be in writing, and delivered in person or sent by registered mail, postage prepaid.
Notices required to be given to CITY shall be addressed as follows:
City Manager and City Engineer
City of Oakley
3231 Main Street
Oakley, CA 94561
Notices required to be given to DEVELOPER shall be addressed as follows:
Attn: Stephanie Miles
Clyde Miles Construction Co.
1110 Burnett Ave. Suite C
Concord, CA 94520
Notices required to be given surety of DEVELOPER shall be addressed as follows:
Attn: Stephanie Miles
Clyde Miles Construction Co.
1110 Burnett Ave. Suite C
Concord, CA 94520
Any party or the surety may change such address by notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address.
Concurrently with the execution of this Agreement, DEVELOPER has executed and has caused to be acknowledged an abstract of this Agreement. DEVELOPER agrees CITY may record said abstract in the Official Records of Contra Costa County.
10. Use of Streets or Improvements.
At all times prior to the final acceptance of the work by CITY, the use of any or all streets and improvements within the work to be performed under this Agreement shall be at the sole and exclusive risk of DEVELOPER. The issuance of any building or 46
occupancy permit by CITY for dwellings located within the tract shall not be construed in any manner to constitute a partial or final acceptance or approval of any or all such improvements by CITY. DEVELOPER agrees that CITY's Building Official may withhold the issuance of building or occupancy permits when the work or its progress may substantially and/or detrimentally affect public health and safety.
11. Safety Devices.
DEVELOPER shall provide and maintain such guards, watchmen, fences, barriers, regulatory signs, warning lights, and other safety devices adjacent to and on the tract site as may be necessary to prevent accidents to the public and damage to the property. DEVELOPER shall furnish, place, and maintain such lights as may be necessary for illuminating the said fences, barriers, signs, and other safety devices. At the end of all work to be performed under this Agreement, all fences, barriers, regulatory signs, warning lights, and other safety devices (except such safety items as may be shown on the plans and included in the items of work) shall be removed from site of the work by the DEVELOPER, and the entire site left clean and orderly.
12. Acceptance of Work.
Upon notice of the completion of the work covered by this agreement and the delivery of a set of final as-built plans to CITY by DEVELOPER, CITY, through its City Engineer or his designated representative, shall examine the work without delay, and, if found to be in accordance with said plans and specifications and this Agreement, shall recommend acceptance of the work to the City Council and, upon such acceptance, shall notify DEVELOPER or his designated agents of such acceptance. CITY reserves the right to not accept the work until all construction activities, including those related to building construction, within the project boundaries has been completed.
13. Patent and Copyright Costs.
In the event that said plans and specifications require the use of any material, process or publication which is subject to a duly registered patent or copyright, DEVELOPER shall be liable for, and shall indemnify CITY from any fees, costs or litigation expenses, including attorneys' fees and court costs, which may result from the use of said patented or copyrighted material, process or publication.
14. Alterations in Plans and Specifications.
Any alteration or alterations made in the plans and specifications which are a part of this Agreement or any provision of this Agreement shall not operate to release any surety or sureties from liability on any bond or bonds attached hereto and made a part hereof, and consent to make such alterations is hereby given, and the sureties to said bonds hereby waive the provisions of Section 2819 of the Civil Code of the State of California.
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15. Liability.
a. DEVELOPER Primarily Liable. DEVELOPER hereby warrants that the design and construction of The Improvements will not adversely affect any portion of adjacent properties and that all work will be performed in a proper manner. DEVELOPER agrees to indemnify, defend, release, and hold harmless CITY, and each of its elective and appointive boards, commissions, officers agents and employees, from and against any and all loss, claims, suits, liabilities, actions, damages, or causes of action of every kind, nature and description, directly or indirectly arising from an act or omission of DEVELOPER, its employees, agents, or independent contractors in connection with DEVELOPER'S actions and
obligations hereunder; provided as follows:
1. That CITY does not, and shall not, waive any rights against DEVELOPER which it may have by reason of the aforesaid
hold harmless agreement, because of the acceptance by
CITY, or the deposit with CITY by DEVELOPER, of any of
the insurance policies described in Paragraph 4 hereof.
2. That the aforesaid hold harmless agreement by
DEVELOPER shall apply to all damages and claims for
damages of every kind suffered, or alleged to have been suffered, by reason of any of the aforesaid operations
referred to in this paragraph, regardless of whether or not CITY has prepared, supplied, or approved of plans and/or specifications for the subdivision, or regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for
damages.
b. Design Defect. If, in the opinion of the CITY, a design defect in the work of improvement becomes apparent during the
course of construction, or within one (1) year following acceptance by the CITY of the improvements, and said
design defect, in the opinion of the CITY, may substantially impair the public health and safety, DEVELOPER shall, upon order by the CITY, correct said design defect at his sole cost and expense, and the sureties under the Faithful
Performance and Labor and Materials Bonds shall be liable to the CITY for the corrective work required.
c. Litigation Expenses. In the event that legal action is instituted by either party to this Agreement, and said action 48
seeks damages for breach of this Agreement or seeks to
specifically enforce the terms of this Agreement, and, in the event judgment is entered in said action, the prevailing party shall be entitled to recover its attorneys' fees and court costs. If CITY is the prevailing party, CITY shall also be entitled to recover its attorney’s fees and costs in any action against DEVELOPER’s surety on the bonds provided under
paragraph 3.
16. Recitals.
The foregoing Recitals are true and correct and are made a part hereof.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate at Oakley, California, the day and year first above written.
CITY OF OAKLEY
By:_______________________
Joshua McMurray
City Manager
APPROVED AS TO FORM:
Derek P. Cole
City Attorney
ATTEST:
________________________
Kim Snodgrass, City Clerk
DEVELOPER
By:______________________________
Stephanie Miles
Seeno President
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Exhibits: Exhibit A – City of Oakley City Council, Resolution 18-07 & 88-21 Exhibit B – Prevailing Wage
Exhibit C – Insurance Requirements
Exhibit D – Verification of Required Insurance
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EXHIBIT A
(RESOLUTION 18-07 & RESOLUTION 88-21)
51 52
53 54
55 56
57 58
59 60
61 62
63 64
65 66
67 68
69 70
71 72
73 74
75 76
EXHIBIT B
PROVISIONS REQUIRED FOR PUBLIC WORKS PROJECTS
PURSUANT TO CALIFORNIA LABOR CODE SECTION 1720 ET SEQ.
The Developer will ensure that any contract issued by the Developer or any privities of the Developer concerning the Improvements includes, and requires the parties to such contract to comply with, all applicable provisions contained in this Exhibit A and any other applicable requirements contained in California Labor Code Section 1720 and following.
HOURS OF WORK:
A. In accordance with California Labor Code Section 1810, eight (8) hours of labor in performance of the Services shall constitute a legal day’s work under this Agreement.
B. In accordance with California Labor Code Section 1811, the time of service of any worker employed in construction of the Improvements is limited to eight hours during any one calendar day, and forty hours during any one calendar week, except in accordance with California Labor Code Section 1815; which provides that work in excess of eight hours during any one calendar day and forty hours during any one calendar week is permitted upon compensation for all hours worked in excess of eight hours during any one calendar day and forty hours during any one calendar week at not less than one-and-one-half times the basic rate of pay.
C. The Developer and its contractors and subcontractors shall forfeit as a penalty to the City $25 for each worker employed in the construction of the Improvements for each calendar day during which the worker is required or permitted to work more than eight (8) hours in any one calendar day, or more than forty (40) hours in any one calendar week, in violation of the provisions of California Labor Code Section 1810 and following.
WAGES:
A. In accordance with California Labor Code Section 1773.2, the City has determined the general prevailing wages in the locality in which the Improvements are to be constructed for each craft or type of work needed to be as published by the State of California Department of Industrial Relations, Division of Labor Statistics and Research, a copy of which is on file in the City Engineer’s office and shall be made available on request. The Developer, and contractors and subcontractors engaged in the construction of the Improvements shall pay no less than 77
these rates to all persons engaged in construction of the Improvements.
B. In accordance with Labor Code Section 1775, the Developer and any contractors and subcontractors engaged in construction of the Improvements shall comply with Labor Code Section 1775 which establishes a penalty of up to $50 per day for each worker engaged in the construction of the Improvements who the Developer or any contractor or subcontractor pays less than the specified prevailing wage. The amount of such penalty shall be determined by the Labor Commissioner and shall be based on consideration of the mistake, inadvertence, or neglect of the Developer, contractor or subcontractor in failing to pay the correct rate of prevailing wages, or the previous record of the Developer, contractor or subcontractor in meeting applicable prevailing wage obligations, or the willful failure by the Developer, contractor or subcontractor to pay the correct rates of prevailing wages. A mistake, inadvertence, or neglect in failing to pay the correct rate of prevailing wages is not excusable if the Developer, contractor or subcontractor had knowledge of their obligations under the California Labor Code. The Developer, contractor or subcontractor shall pay the difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate.
If a subcontractor worker engaged in construction of the Improvements is not paid the general prevailing per diem wages by the subcontractor, subject to applicable law, the prime contractor is not liable for any penalties therefore unless the prime contractor had knowledge of that failure or unless the prime contractor fails to comply with all of the following requirements:
1. Any agreement executed between the Developer and a contractor or a contractor and a subcontractor for the construction of part of the Improvements shall include a copy of the provisions of California Labor Code Sections 1771, 1775, 1776, 1777.5, 1813, and 1815.
2. The contractor shall monitor payment of the specified general prevailing rate of per diem wages by the subcontractor by periodic review of any subcontractor’s certified payroll records.
3. Upon becoming aware of a subcontractor’s failure to pay the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for construction of the Improvements.
4. Prior to making final payment to the subcontractor, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general 78
prevailing rate of per diem wages employees engaged in the construction of the Improvements and any amounts due pursuant to California Labor Code Section 1813.
C. In accordance with California Labor Code Section 1776, the Developer and each contractor and subcontractor engaged in construction of the Improvements, shall keep accurate payroll records showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in construction of the Improvements. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:
1. The information contained in the payroll record is true and correct.
2. The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any services performed by the employer’s employees on the public works project.
The payroll records required pursuant to California Labor Code Section 1776 shall be certified and shall be available for inspection by the City and its authorized representatives, the Division of Labor Standards Enforcement, the Division of Apprenticeship Standards of the Department of Industrial Relations and shall otherwise be available for inspection in accordance with California Labor Code Section 1776.
D. In accordance with California Labor Code Section 1777.5, the prime contractor, on behalf of the Developer and any contractors or subcontractors engaged in construction of the Improvements, shall be responsible for ensuring compliance with California Labor Code Section 1777.5 governing employment and payment of apprentices on public works contracts.
E. In case it becomes necessary for the Developer or any contractor or subcontractor engaged in construction of the Improvements to employ on the construction of the Improvements any person in a trade or occupation (except executive, supervisory, administrative, clerical, or other non manual workers as such) for which no minimum wage rate has been determined by the Director of the Department of Industrial Relations, the Developer, contractor or subcontractor shall pay the minimum rate of wages specified therein for the classification which most nearly corresponds to services to be performed by that person. The minimum rate thus furnished shall be applicable as a minimum for such trade or occupation from the time of the initial employment of the person affected and during the continuance of such employment.
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EXHIBIT C
INSURANCE REQUIREMENTS
CONSTRUCTION CONTRACTS
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit (i.e., $10,000,000)
2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering Code 1 (any auto), with limits no less than $5,000,000 per accident for bodily injury and property damage.
3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
4. Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the project and no coinsurance penalty provisions.
5. Surety Bonds as described below.
6. Professional Liability (if Design/Build), with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.
7. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability and/or Errors and Omissions (if project involves environmental hazards) with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 policy aggregate.
If the contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Contractor shall procure and maintain for the duration of the contract, and if Contractor has a claims-made policy, Contractor shall maintain for two years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the contractor shall cause the insurer to reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees, and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.
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Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased, hired, or borrowed by or on behalf of the Contractor. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10 10 01 and CG 20 37 10 01forms if later revisions used).
2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers.
Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be in excess of the Contractor’s insurance and shall not contribute with it.
3. Each insurance policy required by this clause shall provide notice will be provided to City in the event that the policy is terminated. Contractor shall immediately notify City of any insurance cancellation or termination and shall provide replacement insurance policy documentation to the City.
Builder’s Risk (Course of Construction) Insurance
Contractor may submit evidence of Builder’s Risk insurance in the form of Course of Construction coverage. Such coverage shall name the City as a loss payee as their interest may appear.
If the project does not involve new or major reconstruction, at the option of the City, an Installation Floater may be acceptable. For such projects, a Property Installation Floater shall be obtained that provides for the improvement, remodel, modification, alteration, conversion or adjustment to existing buildings, structures, processes, machinery and equipment. The Property Installation Floater shall provide property damage coverage for any building, structure, machinery or equipment damaged, impaired, broken, or destroyed during the performance of the Work, including during transit, installation, and testing at the City’s site.
Claims Made Policies
If any coverage required is written on a claims-made coverage form:
1. The retroactive date must be shown, and this date must be before the execution date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of contract work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effective, or start of work date, the Contractor must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.
4. A copy of the claims reporting requirements must be submitted to the City for review.
5. If the services involve lead-based paint or asbestos identification/remediation, the Contractors Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability policy shall not contain a mod exclusion, and the definition of Pollution shall include microbial matter, including mold.
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Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to the City.
Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation.
Worker’s Compensation policies shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements, or copies of the applicable insurance language, effecting coverage required by this contract. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.
Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a format least as broad as CG 20 10 10 01 and CG 20 37 10 01.
Surety Bonds
Contractor shall provide the following Surety Bonds:
1. Bid bond
2. Performance bond
3. Payment bond
4. Maintenance bond
The Payment Bond and the Performance Bond shall be in a sum equal to the contract price.
If the Performance Bond provides for a one-year warranty a separate Maintenance Bond is not necessary. If the warranty period specified in the contract is for longer than one year a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.
Special Risks or Circumstances
City reserves right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other circumstances. 82
EXHIBIT D
VERIFICATION OF INSURANCE
83 FINAL MAP
dk ENGINEERING
SUBDIVISION 8803
BROWNSTONE
84 FINAL MAP
dk ENGINEERING
SUBDIVISION 8803
BROWNSTONE
MILES STREET ASHLEY ROAD
BROWNSTONE ROAD
STONE COURT MILES STREET
MILES COURT
85 BROWNSTONE
BOLTON ROAD (48' WIDE) MAIN STREET HIGHWAY 4
HISTORIC
RIGHT OF WAY HISTORIC
RIGHT OF WAY ANDERSON LANE (40' WIDE)
FINAL MAP
dk ENGINEERING
SUBDIVISION 8803
BROWNSTONE
SIMONI RANCH RD
BASIS OF BEARINGS
86 38
37 15 16 17 18 19 20 21 22 14
13 12
10 11
9 8 7
36 4
50 49
48 46 45 44
47 6
5 2
3 1 36
FINAL MAP
dk ENGINEERING
SUBDIVISION 8803
BROWNSTONE
MILES COURT MILES STREET ASHLEY ROAD
BROWNSTONE ROAD
12 13
DETAIL A
MILES CT
87 38
37 29
20 21 22 23 24 25
27 28
32 30
31 33
35 34
36 50
49 48
44 43 42
40 46 45 41
47 26
39 FINAL MAP
dk ENGINEERING
SUBDIVISION 8803
BROWNSTONE MILES STREET
MILES STREET
BROWNSTONE ROAD
STONE COURT MAIN STREET
25 26
DETAIL B
MILES ST
39 39
DETAIL C
STONE CT
88 STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Kevin Rohani, P.E., Public Works Director/City Engineer SUBJECT: Adopt a Resolution to Authorize the City Manager to execute a Construction Agreement with Sukut Construction, LLC for the Construction of Capital Improvement Project (CIP) 310 - East Cypress Road Canal Undergrounding Project, CCWD Segment 5A
Background and Analysis
The City’s adopted Fiscal Year (FY) 2024/25 Capital Improvement Program (CIP) Budget which designates funding for various infrastructure repair and replacement projects. This is consistent with the City’s goals to improve the quality of the City’s public infrastructure and to enhance the quality of life for our residents.
The improvements to East Cypress Road have been a key part of the City’s CIP program as established by the City Council, and a priority for the community to accommodate the growing needs of the residents of the East Cypress Road corridor.
Over the past few years as private development projects were constructed, each respective private development project constructed the new East Cypress Road along their frontage as seen along the Emerson Ranch, Delaney Park, and Cypress Crossings subdivisions. The construction of the improvements to widen East Cypress Road from Knightsen Avenue to west of CCWD canal (CIP 247) fronting the future Burroughs Subdivision is currently underway and anticipated to be completed by fall 2025.
ACD TI Capital Group, the developer of the Grand Cypress Preserve project, was originally slated to construct the improvements to East Cypress Road from the CCWD canal to Bethel Island Road. The Grand Cypress Preserve project would be the largest residential development project that has been planned in Oakley and would take several years to construct. The developer informed the City that they have placed their development project on hold and will not be constructing the East Cypress Road improvements until a date yet to be determined.
The uncertainty of the construction of the improvements to this important section of East Cypress Road on the developer’s part necessitated that the City negotiate with the developer to reach an agreement. This agreement included the acquisition of the right of way and transfer of all plans and permits that the developer had been working on for the East Cypress Road improvements. The City Council approved the Superseding Agreement on October 24, 2023, regarding reimbursement for and implementation of construction of the improvements related to the Grand Cypress Preserve Project.
Approved and
Forwarded to the
City Council
89 STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US This agreement was carried out in order for the City to undertake the design and construction of the East Cypress Road improvements from the CCWD canal crossing to Bethel Island Road. Over the past few months, the design team of the Public Works engineering staff along with Sanbell Inc. has been working expeditiously on the design for widening and improvements of East Cypress Road at the CCWD canal, undergrounding the canal, and widening the intersection of East Cypress Road and Jersey Island Road intersection.
CIP 310 is the most complex and complicated segment of the East Cypress Road widening project and by far the most intricate capital project that City of Oakley has undertaken due to the numerous overhead and underground utilities within this segment.
This project includes dewatering of the CCWD canal, undergrounding of the CCWD canal under East Cypress Road with a 10’ diameter pipe, installation of multiple new utility lines, construction of a levee and full roadway improvements with a new traffic signal at East Cypress Road/Jersey Island Road intersection consistent with our General Plan.
The complexity of this project is magnified further since while the above construction work is taking place, vehicular traffic must be maintained on East Cypress Road and Jersey Island Road as project is constructed through multiple phases through the 2025 and 2026 construction seasons. In accordance with the previously executed agreement, CCWD will reimburse the City $2.2 M for the construction of this project.
The CIP 310 project will have to coordinate with the current construction project, CIP 247 that is widening East Cypress Road from Knightsen Avenue to the CCWD canal and its complex staging phases to keep the vehicular traffic flowing while these projects are constructed. The close coordination of traffic handling sequence between CIP 310 and 247 makes these very unique projects as they are dependent on each other and the respective construction work must be synchronized.
After the completion of the project design, bid documents were prepared and the project publicly advertised for bidding. On December 5, 2024, four (4) total responsible bids were received for this project. Engineering staff along with CCWD staff reviewed the bids and determined that Sukut Construction, LLC was the lowest qualified responsible bidder for the project at a cost of $7,393,866.00. The bid from Sukut Construction, LLC is the best price considering the inflation that has affected all aspects of life and the increasing price of material and labor.
Consistency with the Oakley Strategic Plan 27+
The approval of this agreement is consistent with the Oakley Strategic Plan under our Community Health and Safety Goal to provide safe streets in our City. East Cypress Road is a critical segment in the Oakley roadway infrastructure network that will serve existing and future communities in the eastern portion of the City. The new roadway segment will be an essential infrastructure to support emergency vehicle access for this area.
90 STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 3
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Fiscal Impact
The funding for the construction of this project has been included in the Capital Improvement budget for Fiscal Year 2024/25 and is spread between several funding sources, including ARPA, Traffic Impact Fee, General Capital Projects and Street Maintenance & Rehabilitation, Gas Tax funds, and $2.2 million reimbursement from Contra Costa Water District (CCWD).
Staff Recommendation
Staff recommend that the City Council adopt the resolution approving a construction agreement with Sukut Construction, LLC for an amount not to exceed $7,393,866.00, and to authorize the City Manager to execute the agreement.
Due to variables associated with construction projects, and to address unforeseen circumstances during the course of construction; staff further recommends that the City Council authorize staff to execute future change orders to the construction contract as necessary in an amount not to exceed $700,000 for work beyond what is defined in the base project bid.
Attachments
1) Resolution
2) Bid Summary
91 Resolution No. __-24 Page 1
RESOLUTION NO. __-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY
APPROVING AN AGREEMENT WITH SUKUT CONSTRUCTION, LLC FOR
THE CONSTRUCTION OF CAPITAL IMPROVEMENT PROJECT (CIP)
NUMBER 310 – EAST CYPRESS ROAD CANAL UNDERGROUNDING
PROJECT, CCWD SEGMENT 5A
WHEREAS, Sanbell Inc., prepared the plans, specifications, and estimates for CIP No. 310 – East Cypress Road Canal Undergrounding Project, CCWD Segment 5A; and
WHEREAS, the plans, specifications and special provisions were publicly advertised for bidding, with the bid period closing at 2:00 P.M. on December 5th, 2024; and
WHEREAS, four (4) total responsible bids were received prior to the close of the bidding process; and
WHEREAS, Sukut Construction, LLC submitted the lowest qualified responsible bid for a total cost of $7,393,866.00 for the work, and the bid summary is attached here as Exhibit A; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Oakley that the Agreement with Sukut Construction, LLC for the East Cypress Road Canal Undergrounding Project, CCWD Segment 5A – CIP No. 310, for an amount not to exceed $7,393,866.00 is approved, and the City Manager is hereby authorized to execute the Agreement and change orders in an amount not to exceed $700,000 as necessary.
PASSED AND ADOPTED by the City Council of the City of Oakley at a meeting held on the 10th of December 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
APPROVED:
_______________________
,Mayor
ATTEST:
_______
Kim Snodgrass, City Clerk Date
92 93
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Kevin Rohani, P.E., Public Works Director/City Engineer SUBJECT: Adopt a Resolution Approving the Funding Agreement with the Contra Costa Transportation Authority (CCTA) to Design and Construct Oakley’s portion of the CCTA Countywide Smart Signals project and authorize the City Manager to execute the agreement with CCTA
Background and Analysis
The Countywide Smart Signals Project in Oakley is a Contra Costa Transportation Authority (CCTA) led project as a part of their Contra Costa Countywide Smart Signals Project to upgrade traffic signal system and communication systems on major arterial corridors throughout its 19 cities and unincorporated communities. The overall project will improve 328 intersections within Contra Costa County located along major arterial streets and designated as Routes of Regional Significance. A Route of Regional Significance is a roadway that connects two or more sub-areas of Contra Costa, crosses County boundaries, carries significant through traffic, and/or provides access to a regional highway or transit facility. The improvements proposed for the project include implementation of planned Intelligent Transportation System (ITS) elements that will unify Contra Costa County’s signal technology and communication systems to optimize traffic flow. It will provide an interconnected Advanced Traffic Management System (ATMS) with the ability to monitor traffic conditions in real-time, safely, and efficiently manage incidents, and share information between agencies and the public. The upgraded traffic signals combined with advanced detection systems will benefit pedestrians and transit commuters by improving safety, reduce wait times at intersections, improve total travel time for all modes while making transit and pedestrian options a more viable transportation alternative.
The City of Oakley portion of the project will upgrade 12 signals along Main Street. The preliminary estimated cost of this project in Oakley is $1,475,730. Funding is available from the Metropolitan Transportation Commission’s (MTC) One Bay Area Cycle 3 (OBAG 3) funds for design, construction, and deployment of the project. The estimated amount of local match is 11.47% from the City is $169,234. To implement the project, CCTA requires that the City enter into an agreement with CCTA committing the required local match.
The City of Oakley has a total of 41 signals located across the City with some of the oldest signals along Main Street when it once was Old Highway 4 prior to the construction of the Highway 4 Bypass. Most of these existing signal systems lack needed infrastructure, such as fiber and cellular/wireless-based communication, making it difficult to implement traffic Approved and
Forwarded to the
City Council
94 STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US signal synchronization and coordination between traffic signals along the arterial roads.
Most corridors do not currently include signal control and prioritization technologies to promote transit usage to reduce delay and travel times for transit vehicles and reduce response time for emergency vehicles. Staff have been strategically working to upgrade the legacy signal systems along the City’s major corridors to improve safety and circulation, and to get them ready for next generation communication and connectivity.
Implementation of this Smart Signals Project by CCTA is in line with the signal upgrade approach that staff have been engaged in and is expected to result in operational and safety improvements for all modes of transportation along these project corridors.
The Countywide Smart Signals Project in Oakley will upgrade 12 signals located along Main Street:
Signal No. Primary Street Secondary Street
1 Main St Laurel Rd
2 Main St Cypress Rd
3 Main St O’Hara Ave
4 Main St Norcross Ln
5 Main St Vintage Pkwy
6 Main St Teakwood Dr
7 Main St Empire Rd
8 Main St Carol Ln
9 Main St Big Break Rd
10 Main St Live Oak
11 Main St Neroly Rd
12 Main St Malicoat Ave/ Simoni Ranch Rd
More details about this project are in the Funding Agreement Countywide Smart Signals Project. The project is currently in design and scheduled for construction in 2025.
Consistency with the Oakley Strategic Plan 27+
The approval of this agreement is consistent with the Oakley Strategic Plan under our Community Health and Safety Goal to provide safe streets in our City. Main Street is a major arterial of our City and used by many on a daily basis. The signal modernization improvements along this roadway segment are an essential infrastructure for our City to support emergency vehicles and improve transportation efficiency. 95 STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 3
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Fiscal Impact
The City Council’s actions on this item will secure $1,475,730 of CCTA funding for the Smart Signals Project in Oakley led by CCTA. Local match funds that will be required to complete this project are approximately $169,234. With approval tonight, the City is committing to the matching funds. Staff will bring a funding source forward as part of the FY 2025/26 CIP Budget. This funding will not be general fund and will utilize one of the authorized street funds.
Staff Recommendation
Staff recommend that the City Council adopt the resolution approving the funding agreement committing the local match of $169,234 for the Countywide Smart Signals Project in Oakley sponsored by the Contra Costa Transportation Authority (CCTA) within Oakley; and authorizing the City Manager to execute the agreement.
Attachments
Attachment 1 – Resolution
Attachment 2 – Vicinity Map
Attachment 3 – Contra Costa Countywide Smart Signals Project Flyer Attachment 4 – Funding Agreement between the Contra Costa Transportation Authority and the City of Oakley
96 Resolution No. -24 Page 1 of 1
RESOLUTION NO. ___-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY APPROVING
THE FUNDING AGREEMENT WITH THE CONTRA COSTA TRANSPORTATION AUTHORITY (CCTA) TO DESIGN AND CONSTRUCT OAKLEY’S PORTION OF THE
CCTA COUNTYWIDE SMART SIGNALS PROJECT AND AUTHORIZE THE CITY
MANAGER TO EXECUTE THE AGREEMENT
WHEREAS, the Countywide Smart Signals Project in Oakley is a Contra Costa Transportation Authority (CCTA) led project as a part of their Contra Costa Countywide Smart Signals Project to upgrade traffic signal system and communication systems on major arterial corridors throughout its 19 cities and unincorporated communities. The overall project will improve 328 intersections within Contra Costa County located along major arterial streets and designated as Routes of Regional Significance; and,
WHEREAS, the City of Oakley’s portion of the project will upgrade 12 signals along Main Street. The preliminary estimated cost of this project in Oakley is $1,475,730. Funding is available from the Metropolitan Transportation Commission’s (MTC) One Bay Area Cycle 3 (OBAG 3) funds for design, construction, and deployment of the project. The estimated required local match of 11.47% from the City is approximately $169,234; and, WHEREAS, in order to implement the project, CCTA requires that the City enter into an agreement committing the required local match Funding Agreement; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Oakley that the Funding Agreement with Contra Costa Transportation Authority is hereby approved, and the City Manager is hereby authorized to execute the Funding Agreement for the City of Oakley’s portion of the CCTA Countywide Smart Signals Project in the form attached hereto as Exhibit A to be made part of this resolution.
PASSED, APPROVED AND ADOPTED this 10th day of December 2024 by the following vote.
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
___________________
,Mayor
ATTEST:
_____________________ ___________
Kim Snodgrass, City Clerk Date
97 Neroly Rd
Elm Ln
160
line Dr
Sweetwater St
Neroly Rd
Le Conte
Cir
Po Box
te 4
Nelson Ranch
Park
Rd
emar St
Carol Ln
Big
Oakley Rd Oakley Rd
Sand
y Ln
Main St
Main St
Cypress Square
NORTHWEST
OAKLEY
Live Oak Ave
Neroly Rd
Nerol y Rd
Laurel Rd
Empire Ave
Lariat Ln
Tate Ln
Placer Dr
Gamay Dr Vine Hill Rd
El Lago Dr
El Monte Dr
Nut Tree Ln
Bedford Ln
Poco Ln
4 Crockett Park
Neroly Rd Neroly Rd
Laurel Rd
Empire Ave
Prom
ontory Way
Teakw
o
od Dr
non
Dr
Pecan Ln
Piper Ln
W Ruby St
Wildcat Way
Main St
Vintage
Parkway
Elementary
School
DOWNTOWN
OAKLEY
Oakley
Laurel Rd
Norcross Ln
W Cypress Rd
Brown Rd
4th St
Nutmeg Dr
Cloverbroo
k
Ave
Chianti Way
Woodglen Dr
Duarte Ave
5th St
Grapevine Ln
Lois Ln
Star St
Ohara Ct
Mallard Ln
Walnut Dr
Almond Dr
Alder Dr
Ohara Ave
Ashwood Dr
Ohara Park
Ohara Park
Middle School
Brown
Rd
Kay Ln
Novarina Park
SOUTH
OAKLEY
Oakley Rd
Monet Dr
Sellers Ave
Burlington Northern and Santa Fe Railroad
Frank Hengel Way
Rose Ave Rose Ave
Laurel Rd
Laurel Rd
Honey Ln
W Cypress Rd
Mellowood Dr
Fall Ln
Teto
Picasso Dr
Ibis Dr
Loren Ln
Solitude Dr
Big
Bear Rd
Main
St
E Cypress Rd
Raye Ave
Hill Ave
Rose Ave
Malicoat Ave
Douglas Rd
Main St
Shady Oaks
Park
Gehringer
Elementary
School
Vicinity Map
Countywide Smarts Signal Project in City of Oakley ¯
98 CONTRA COSTA COUNTYWIDE SMART SIGNALS
Contra Costa Transporta�on Authority (CCTA) is leading a Countywide Smart Signals Project (Project) to upgrade traffic signal and communica�on systems at 328 intersec�ons within Contra Costa County throughout the 19 ci�es/towns and unincorporated communi�es located along major arterial streets and roads designated as Routes of Regional Significance.
PURPOSE + NEED | Exis�ng traffic
signal systems in most ci�es within Contra
Costa County consist of outdated legacy
systems that lack fiber and/or ethernet
base communica�on making traffic signal
synchroniza�on and coordina�on
between traffic signals difficult.
Addi�onally, most corridors need Signal
Control and Priori�za�on (SCP)
technologies that can promote transit
usage and mode shi�. These opera�onal
deficiencies result in severe traffic
conges�on within the ci�es which can
also lead to spillover on the freeways;
increasing commuter travel �mes,
greenhouse gas emissions, fuel
consump�on, and accidents.
SOLUTION | Implementa�on of the planned Intelligent Transporta�on System (ITS) elements will unify Contra Costa County’s signal technology and communica�on systems to op�mize traffic flow. It will provide an interconnected Advanced Traffic Management System (ATMS) with the ability to monitor traffic condi�ons in real-�me, safely, and efficiently manage incidents, and share informa�on between agencies and the public.
BENEFITS
SAFETY
Upgrading traffic signal equipment
and applying smart control
systems at intersec�ons will:
► Improve emergency service
response �me;
► Help first responders and law
enforcement manage traffic or
crime incidents; and
► Implement Video analy�cs
that can iden�fy near miss
situa�ons, prevent future
occurrences, and reduce
secondary accidents.
OPERATIONAL
IMPROVEMENTS
Signal synchroniza�on and
implementa�on of SCP
technologies will:
► Smooth traffic flow and
reduce idling;
► Improve speed management
(mul�-modal);
► Decrease travel �me and total
delay;
► Reduce greenhouse gas
emissions; and
► Increase transit reliability by
improving on-�me service.
TRAFFIC MANAGEMENT
ENHANCEMENTS
Shared control and improved cross
jurisdic�onal traffic management will:
► Provide ci�es and Caltrans access to
monitor all videos and signals in
real-�me;
► Op�mize day-to-day traffic
opera�ons and manage local events
through signal �ming op�ons;
► Effec�vely manage arterial traffic
during major incidents on the
freeway, evacua�ons, or major
events; and
► Enable ci�es to priori�ze transit and
emergency vehicles.
The goals of the project are to improve safety, optimize mobility, prepare for emerging transportation technologies, and advance Smart Cities.
99 CONTACT | John Hoang, Director, Planning - CCTA
Phone: 925.256.4729 I E-mail: [email protected]
KEY PROJECT FEATURES
►Traffic signal system upgrades
►ATMS upgrades for each agency to provide
remote command and control at a centralized
Traffic Management Center (TMC) loca�on
►Close Circuit Television (CCTV) cameras
►Pedestrian and bicycle detec�on system
►Shared control and opera�on to allow cross
jurisdic�onal traffic management
►Automated data collec�on
►SCP for transit and emergency vehicles
►Vehicle detec�on system on designated
arterials and state routes
FUNDING + SCHEDULE
Project Phase Total Cost Fund Source Start Date
Planning/ Conceptual $250,000 Measure J Jul-22
Environmental Studies (PA&ED) $440,280 Measure J Mar-23 Design Engineering (PS&E) $1,651,050 Local Match, OBAG 3* Sep-24 Construc�on $28,433,092 Local Match, OBAG 3, LPP-F** Sep-25 Total $ 30,774,422
*One Bay Area Grant (OBAG) 3 federal funding provided by Metropolitan Transportation Commission (MTC). ** Local Partnership Program – Formulaic (LPP-F) state funding provided by California Transportation Commission (CTC).
STAKEHOLDERS
An�och Brentwood Clayton Concord Danville
El Cerrito Hercules Lafayete Mar�nez Moraga
Oakley Orinda Pinole Pitsburg Pleasant Hill
Richmond San Pablo San Ramon Walnut Creek Contra Costa County The project is being implemented in collaboration with Central Contra Costa Transit Authority (County Connection), Eastern Contra Costa Transit Authority (Tri Delta Transit), Western Contra Costa County Transit (WestCAT), Alameda-Contra Costa Transit District (AC Transit), Bay Area Rapid Transit (BART), California Department of Transportation (Caltrans), and MTC. 100
Countywide
Smart Signals
ABOUT THIS PROJECT
Contra Costa Transportation Authority (CCTA)
is leading a Smart Signals Project to upgrade traffic
signals at over 300 intersections throughout the
19 cities/towns and unincorporated communities
within Contra Costa County. This work is focused
along major arterials that have been designated
as “Routes of Regional Significance.”
Right Time For An Upgrade
Existing traffic signals within Contra Costa are not
connected to each other (like with fiber or ethernet),
preventing synchronization and coordination between
signals. Additionally, most modern signal systems need
Signal Control and Prioritization (SCP) technology that can help transit vehicles and alternative modes such as bikes and shuttles, move through intersections safely
and efficiently.
By incorporating modern elements into the County’s
signal systems, CCTA will optimize traffic flow on its
arterials, reduce congestion, and hopefully eliminate
spillover of congestion onto the freeways. Efforts
performed with this project will also enable CCTA to
enhance safety for all modes, monitor traffic conditions in real-time, improve incident management and response
times, and prepare Contra Costa for other emerging
transportation technologies.
A roadway that connects two or more
subareas of Contra Costa, crosses County
boundaries, carries significant through
traffic, and/or provides access to a
regional highway or transit facility.
What is a Route of
Regional Significance?
Benefits of Smart Signals
Safer Roads: Imagine better emergency
response times, easier management of
incidents by first responders and law
enforcement, and reduction of secondary
incidents due to video analytics that can
identify near-miss situations.
Smoother Travel: Synchronized,
responsive signals can reduce idling at
red lights, improve speed management,
decrease travel delays, reduce greenhouse
gas emissions, and increase transit reliability.
Better Traffic Management: Cities and
Caltrans will have access to real-time data
that allows optimization of traffic during
incidents, evacuations, or other major
events. Cities will be able to prioritize transit
and emergency vehicles as needed.
November 2023
101
Schedule
Stakeholders
Collaborators
CCTA is working closely with several agencies
to make this project a success. We are thankful
for the teamwork offered by the following:
Central Contra Costa Transit Authority (County
Connection), Eastern Contra Costa Transit Authority
(Tri Delta Transit), Western Contra Costa County
Transit (WestCAT), Alameda-Contra Costa Transit
District (AC Transit), Bay Area Rapid Transit (BART),
California Department of Transportation (Caltrans),
and Metropolitan Transportation Commission (MTC).
FOR MORE INFORMATION
ABOUT THIS PROJECT
John Hoang
Director, Planning at CCTA
925.256.4729
[email protected]
KEY FEATURES
1. Traffic Signal
Synchronization
2. Video/Radar Vehicle
Detection
3. Ethernet Communication
4. Pan-Tilt-Zoom Cameras
5. Emergency Vehicle
Preemption
6. Transit Signal Priority
7. Video Analytics and Closed
Circuit Television Cameras
8. Pedestrian and Bicycle
Detection
7 8
5 6
1 2
3 4
Environmental
Studies
(PAED)
Design &
Engineering
(PS&E)
Planning & Construction
Conceptual
Design
JULY
2022
MARCH
2023
APRIL
2024
SEPTEMBER
2025
Antioch
Brentwood
Clayton
Concord
Danville
El Cerrito
Hercules
Lafayette
Martinez
Moraga
Oakley
Orinda
Pinole
Pittsburg
Pleasant Hill
Richmond
San Pablo
San Ramon
Walnut Creek
Contra Costa County
Measure J
Local Match
OBAG 3*
LPP-F**
TOTAL
$30.8 million
*One Bay Area Grant 3 (OBAG 3): Federal
funding provided by Metropolitan Transportation
Commission (MTC).
**Local Partnership Program – Formulaic
(LPP-F): State funding provided by California
Transportation Commission (CTC).
FUNDING SOURCES
102
FUNDING AGREEMENT xxxx
Countywide Smart Signals Design and Construction Phases
29222494.1/060323.0001
FUNDING AGREEMENT NO. XXXX
BETWEEN
THE CONTRA COSTA TRANSPORTATION AUTHORITY
AND
THE CITY OF OAKLEY
FOR COST SHARING COMMITMENTS TO DESIGN AND CONSTRUCT THE
COUNTYWIDE SMART SIGNALS PROJECT
This Agreement is made and entered into on December 10, 2024, by the City of Oakley hereinafter referred to as ("CITY") and the CONTRA COSTA TRANSPORTATION AUTHORITY hereinafter referred to as ("AUTHORITY"). CITY and AUTHORITY are collectively referred to herein as the “Parties” and each individually as a “Party.”
RECITALS
1. AUTHORITY is the project sponsor and designated lead agency for implementing the Countywide Smart Signals Project within Contra Costa County, hereinafter referred to as “PROJECT”, which is a program to install signal system and intelligent transportation system (ITS) equipment upgrades to key identified intersections within Contra Costa County cities with the objective to coordinate and synchronize the timing of the signals.
2. AUTHORITY is the recipient of the Metropolitan Transportation Commission’s (MTC’s) One Bay Area Cycle 3 (OBAG 3) funds for design, construction, and deployment of the PROJECT.
3. CITY and AUTHORITY have identified 12 intersections to recommend for signal system and intelligent transportation system (ITS) equipment upgrades for inclusion in the PROJECT estimated at $1,475,730 (See Exhibit A)
4. CITY agrees to provide AUTHORITY with the minimum 11.47% local matching funds to the OBAG 3 funds in the amount of $169,234 in Fiscal Year 2024-25 to pay for the design and installation of upgraded equipment located within CITY’s right-of-way and cost of construction as part of the PROJECT.
5. CITY and AUTHORITY agree that the final matching funds requirements may be adjusted accordingly based on the final actual design and construction costs incurred and will be reconciled at the completion of the PROJECT as defined in paragraph 6 below.
NOW, THEREFORE, in consideration of the foregoing, the AUTHORITY and CITY do hereby agree as follows:
103
FUNDING AGREEMENT xxxx
Countywide Smart Signals Design and Construction Phases
29222494.1/060323.0001
SECTION I
CITY AGREES:
1. To provide AUTHORITY matching funds for upgrading equipment and construction cost for the City’s portion of the PROJECT in an amount of $169,234, which represents 11.47% of the OBAG3 funds of $1,475,730, no later than 30 days from receiving an invoice from AUTHORITY.
2. To work collaboratively with AUTHORITY to implement the PROJECT.
SECTION II
AUTHORITY AGREES:
1. To lead the development process including planning, design, construction, and deployment of the PROJECT, as described in Exhibit A and the Operations and Maintenance Agreement to be negotiated by the CITY and AUTHORITY following execution of this Agreement.
2. To submit an invoice to CITY for an amount of $169,234 prior to December 31, 2025.
3. To work collaboratively with CITY to implement the PROJECT.
SECTION III
IT IS MUTUALLY AGREED:
1. (a) That the cost to complete PROJECT is only an estimate and may require adjustments depending on the final cost. At the completion of the PROJECT, and if AUTHORITY determines that the match amount provided by CITY is exceeded, it will notify and seek approval of CITY to provide additional matching funds. Completion of the Project is defined as when AUTHORITY accepts and certifies that all phases of the PROJECT construction–including but not limited to installation, deployment, and activation of equipment–are completed. (b) If AUTHORITY determines that the match amount provided by CITY exceeded the amount needed to complete the PROJECT then AUTHORITY will refund CITY the balance of the original match amount provided by CITY and indicated in paragraph 1 of Section I.
2. Term: This Agreement will remain in effect through December 31, 2028, or at the completion of the PROJECT, whichever occurs first, or until discharged as provided in Paragraph 3 below or as a result of paragraph 12 below.
3. Discharge: This Agreement shall be subject to discharge as follows:
a. Either Party may terminate this Agreement at any time until construction of the 104
FUNDING AGREEMENT xxxx
Countywide Smart Signals Design and Construction Phases
29222494.1/060323.0001
PROJECT begins, other than for breach. Either Party may terminate by giving written notice of termination to the other Party which shall specify both the cause and the effective date of termination.
Notice of termination under this provision shall be given at least ninety (90) days before the effective date of such termination. Once construction of the PROJECT begins, neither party may terminate this Agreement unless there is a breach as addressed in paragraph 3(b) below. b. This Agreement may be canceled by a Party for breach of any obligation, covenant, or condition hereof by the other Party, upon notice to the breaching Party. With respect to any breach which is reasonably capable of being cured, the breaching Party shall have 30 days from the date of the notice to initiate steps to cure. If the breaching party diligently pursues cure, such party shall be allowed a reasonable time to cure, not to exceed sixty (60) days from the date of the initial notice, unless a further extension is granted by the non-breaching Party. On cancellation, the non-breaching party retains the same rights as a Party exercising its right to terminate under the provisions of paragraph 3(a), except that the canceling Party also retains any remedy for breach of the whole contract or any unperformed balance.
c. By mutual consent of both PARTIES, this Agreement may be terminated at any time. d. In the event of termination, AUTHORITY shall reimburse CITY, if AUTHORITY deems necessary, for overpayment by CITY based on the difference between actual cost share and estimated cost share, which such difference shall be determined in AUTHORITY’s sole discretion. In no event shall the maximum expenditure allowed under this Agreement, as it may be adjusted by a written amendment signed by both parties, be exceeded.
4. Indemnity: It is mutually understood and agreed, relative to the reciprocal indemnification of AUTHORITY and CITY:
a. That neither AUTHORITY, nor any officer or employee thereof, shall be responsible for, and CITY shall fully indemnify and hold harmless AUTHORITY against, any damage or liability occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction by CITY under the Agreement. It is also understood and agreed that pursuant to Government Code Section 895.4, CITY shall fully indemnify and hold the AUTHORITY harmless from any liability imposed for injury as defined by Government Code Section 810.8 occurring by reason of anything done or omitted to be done by CITY under this Agreement or in connection with any work, authority, or jurisdiction delegated to CITY under this Agreement. b. That neither CITY, nor any officer or employee thereof, shall be responsible for, and AUTHORITY shall fully indemnify and hold harmless CITY against any damage or liability occurring by reason of anything done or omitted to be done by AUTHORITY under or in connection with any work, authority, or jurisdiction by AUTHORITY under the Agreement. It is also understood and agreed that pursuant to Government Code Section 895.4, AUTHORITY shall fully indemnify and hold the CITY harmless from any liability imposed for injury as defined by Government Code Section 810.8 occurring by reason of anything done or omitted to be done by AUTHORITY under this Agreement or in connection with any work, authority, or jurisdiction delegated to AUTHORITY under this Agreement.
5. Notices: Any notice which may be required under this Agreement shall be in writing, shall 105
FUNDING AGREEMENT xxxx
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be effective when received, and shall be given by personal service, or by certified or registered mail, return receipt requested, to the addresses set forth below, or to such addresses which may be specified in writing to the parties hereto.
Name
Joshua McMurray
City Manager
3231 Main Street
Oakley, CA 94561
Timothy Haile
Executive Director
Contra Costa Transportation Authority
2999 Oak Road, Suite 100
Walnut Creek, CA 94597
6. Additional Acts and Documents: Each Party agrees to do all such things and take all such actions, and to make, execute and deliver such other documents and instruments, as shall be reasonably requested to carry out the provisions, intent and purpose of this Agreement.
7. Integration: This Agreement represents the entire Agreement of the Parties with respect to the subject matter hereof. No representations, warranties, inducements or oral agreements have been made by any of the Parties except as expressly set forth herein, or in other contemporaneous written agreements.
8. Amendment: This Agreement may not be changed, modified or rescinded except in writing, signed by all Parties hereto, and any attempt at oral modification of this Agreement shall be void and of no effect.
9. Independent Agency: AUTHORITY renders its services under this Agreement as an independent agency. None of the AUTHORITY’s agents or employees shall be agents or employees of the CITY.
10. Assignment: This Agreement may not be assigned, transferred, hypothecated, or pledged by any Party without the express written consent of the other Party.
11. Binding on Successors, etc.: This Agreement shall be binding upon the successor(s), assignee(s) or transferee(s) of the AUTHORITY or CITY as the case may be. This provision shall not be construed as an authorization to assign, transfer, hypothecate or pledge this Agreement other than as provided above.
12. Severability: Should any part of this Agreement be determined to be unenforceable, invalid, or beyond the authority of either Party to enter into or carry out, such determination shall not affect the validity of the remainder of this Agreement which shall continue in full force and effect; provided that, the remainder of this Agreement can, absent the excised portion, be reasonably interpreted to give effect to the intentions of the Parties. 106
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13. Limitation: All obligations of AUTHORITY under the terms of this Agreement are expressly subject to the AUTHORITY's continued authorization to collect and expend the sales tax proceeds provided by MEASURE C and MEASURE J. If for any reason the AUTHORITY's right to collect or expend such sales tax proceeds is terminated or suspended in whole or part, the AUTHORITY shall promptly notify CITY, and the PARTIES shall consult on a course of action to determine how to accomplish the PROJECT or if this Agreement should be terminated. If, after sixty (60) working days of the termination or suspension of sales tax proceeds authority, a course of action is not agreed upon by the PARTIES, this Agreement shall be deemed terminated by mutual or joint consent; provided, that any obligation to fund from the date of the notice shall be expressly limited by and subject to (i) the lawful ability of the AUTHORITY to expend sales tax proceeds for the purposes of the Agreement; and (ii) the availability, taking into consideration all the obligations of the AUTHORITY under all outstanding contracts, agreements to other obligations of the AUTHORITY, of funds for such purposes.
14. No Third Party Beneficiaries: This Agreement is not for the benefit of any person or entity other than the parties.
15. Dispute Resolution: The Parties shall work together in the spirit of good faith and cooperation to successfully implement this Agreement. Should a substantive disagreement arise between the Parties, the disagreement shall immediately be raised between the Parties. Prior to initiating any legal action, the Parties agree to meet in good faith to attempt to resolve any dispute, including but limited to meetings between executive management and participating in mediation. The Parties shall jointly select and engage the effort of a mediator to help resolve the dispute. The Parties shall equally share the costs of the mediator. If the issue is still unresolved, either Party may bring a legal action seeking resolution of the disagreement. However, any and all legal actions may only be brought if the preceding dispute resolution process has been satisfied.
16. Venue: This Agreement and all work performed thereunder shall be interpreted under and pursuant to the laws of the State of California. The Parties agree that the jurisdiction and venue of any dispute arising under this Agreement shall be the Superior Court of Contra Costa County.
17. Counterparts: This Agreement may be executed in any number of original counterpart signature pages, and each counterpart signature page shall be attached to and incorporated into this original Agreement.
CONTRA COSTA TRANSPORTATION
CITY OF OAKLEY AUTHORITY
By: By:
Joshua McMurray, City Manager Federal Glover, Chair
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Countywide Smart Signals Design and Construction Phases
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ATTEST:
By: By:
Kim Snodgrass, City Clerk Tarienne Glover, Clerk of the Board APPROVED as to form:
By: By:
Derek P. Cole, City Attorney Fennemore Wendel, Legal Counsel 108
FUNDING AGREEMENT No. xxxxx
Exhibit A City of Oakley
29222494.1/060323.0001
FUNDING AGREEMENT NO. XXXX
between
The Contra Costa Transportation Authority
and
The City of Oakley
EXHIBIT A
DESCRIPTION OF THE PROJECT
BACKGROUND
The Smart Signals project in Contra Costa County is a CCTA led countywide project to upgrade traffic signal system and communication systems throughout its 19 cities and unincorporated communities.
Contra Costa County is home to 19 cities/towns and the County, which includes numerous unincorporated communities. There are approximately 1400 traffic signals within the County, Caltransowned and various city-owned. Most of these traffic signals are located either along major arterials, including State Routes, identified as Routes of Regional Significance (RSS) or other major and minor arterials in the cities/towns.
The project will develop, manage, and implement Intelligent Transportation System (ITS) initiatives such as upgrading the existing legacy systems, providing interconnectivity throughout Contra Costa County signal systems and enhance the sharing of real-time information between agencies and the public.
The existing traffic signal systems in most jurisdictions located within Contra Costa County are legacy systems and are outdated or antiquated compared to newer traffic signal systems. These signal systems currently lack the communication infrastructure such as fiber and cellular/wireless-based communication, which makes it difficult to implement traffic signal synchronization and coordination between traffic signals along an arterial. Most corridors do not currently include Signal Control and Prioritization (SCP) technologies to promote transit usage to reduce delay and travel times for transit vehicles and reduce response time for emergency vehicles.
These deficiencies result in severe traffic congestion within the cities/towns and may result in spillover onto freeways and cause a chain reaction of congestion along local arterials. The current system contributes to overall commuter travel times and delays, increases greenhouse gas emissions and fuel consumption, as well as incidents and collisions. These deficiencies were documented following extensive discussions with the cities and towns regarding traffic signal operation within the Contra Costa County.
CCTA and the project Stakeholders have initially identified these deficiencies, which are translated as the following project goals: 1) Improve safety and minimize crashes, injuries, and fatalities between motorists, bicyclists, and pedestrians; 2) Optimize mobility along major corridors and RRS; and 3) Advance to Smart City and Internet of Things (IOT) solutions. 109
FUNDING AGREEMENT No. xxxxx
Exhibit A City of Oakley
29222494.1/060323.0001
PROJECT ELEMENTS
The Smart Signals project will develop, manage, and implement ITS initiatives that improve the safety and efficiency of multimodal mobility, maximize highway and arterial system throughput, and improve operational efficiency, safety, and reduce environmental impact throughout the county. By upgrading the existing legacy systems and providing interconnectivity throughout Contra Costa County signal systems, the county’s traffic signal systems can be prepared for future emerging technologies including connected and/or autonomous vehicles, big data, integrated corridor management (ICM), enable implementation of incident management strategies and Smart Cities initiatives. This solution can enhance the sharing of real-time information between agencies and the public using existing and next generation ITS technologies.
The upgraded traffic signal systems and signal interconnect will help smooth traffic flow and ease recurring traffic congestion by expanding mode choice options and reducing travel time on local streets and roads. Upgraded traffic signals will benefit pedestrians and transit commuters by reducing wait times at intersections, improving total travel time for all modes while making transit and pedestrian more viable transportation options. The Smart Signal systems would also improve the safety of pedestrians, bicyclists, vulnerable road users, and people with disabilities by deployment of detection systems.
To accomplish these goals, CCTA is applying a Smart Signal approach that will include the implementation of ITS equipment including upgraded traffic signal controllers and cabinets, upgraded Advanced Traffic Management System (ATMS) for each agency to provide remote command and control from a centralized Traffic Management Center (TMC) or Traffic Operations Center (TOC) location, Closed-circuit Television (CCTV) cameras, SCP for transit and emergency vehicles, and vehicle detection systems deployed on predefined designated arterials and state routes. These improvements will provide local cities and Caltrans day-to-day county-wide traffic management capabilities in addressing recurrent traffic congestion as well as provide CCTA capabilities for managing the system during non-recurring traffic congestion caused by diverted traffic due to major incidents on the freeway or during any evacuation efforts.
The PROJECT’s key features and benefits include but are not limited to some of the following:
Providing infrastructure for a countywide traffic management system Upgrading local signal controllers and signal system hardware, software, and firmware Deploying bicycle and pedestrian detection software for vulnerable road user protection Providing SCP, including Transit Signal Priority (TSP) and Emergency Vehicle Preemption (EVP) capabilities
Enabling local event management signal timing options Taking a proactive approach to safety by identifying “near miss” situations for analysis Enabling cities and CCTA to proactively manage day-to-day traffic Enabling cities to proactively manage traffic on local streets that has diverted off the freeway due to a major freeway incident
Identifying alternative routes with timing optimized for incident management Allowing shared control and operation, improving cross jurisdictional traffic management 110
FUNDING AGREEMENT No. xxxxx
Exhibit A City of Oakley
29222494.1/060323.0001
Allowing cities/CCTA access to monitor all CCTV cameras and traffic signals for the purpose of optimizing day-to-day operations
Deployment of the Smart Signals Project is expected to result in operational and safety improvements for all modes of transportation, such as:
Decrease in travel time,
Decrease in total delay,
Reduction in number of stops
Reduction in secondary accidents
Decrease in fuel consumption and greenhouse gas emissions Promotion of transit ridership
Reduction of response time for emergency vehicles
When operating together, these enhancements increase safety and reliability, and support environmental sustainability, economic development, and equitable access for all travelers.
CITY OF OAKLEY ELEMENTS
The signals located at the following intersection are included in the Project and are proposed to receive Smart Signal upgrades. (See Table 1 and Figure 1 below) Table 1: City of Oakley PROJECT Intersections
LIST OF INTERSECTIONS
Signal No. Primary Street Secondary Street
1 Main St Laurel Rd
2 Main St Cypress Rd
3 Main St O’Hara Ave
4 Main St Norcross Ln
5 Main St Vintage Pkwy
6 Main St Teakwood Dr
7 Main St Empire Rd
8 Main St Carol Ln
9 Main St Big Break Rd
10 Main St Live Oak
11 Main St Bridgehead Rd/Neroly Rd
12 Main St Malicoat Ave/ Simoni Ranch Rd
The recommended upgrades for signals located in Oakley include:
Signal controller firmware updates
Video/Radar detection
Wireless/Ethernet Over Copper (EOC) for communication between the signals Pan-Tilt-Zoom (PTZ) cameras
111
FUNDING AGREEMENT No. xxxxx
Exhibit A City of Oakley
29222494.1/060323.0001
An Advanced Traffic Management System (ATMS)
Traffic signal synchronization
Emergency Vehicle Preemption (EVP)
Transit Signal Priority (TSP), and
Video Analytics.
Based on preliminary estimates, the upgraded equipment, including cost of construction, is shown below. The City is responsible to provide the minimum 11.47% match. Total Number of Signals – 12
Total funding – $1,475,730
Local match required – $169,234 (11.47%)
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29222494.1/060323.0001
113
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Kevin Rohani, P.E., Public Works Director/City Engineer SUBJECT: Adopt a Resolution Authorizing the City Manager to execute an agreement for On-Call Tree Pruning and Removal Services with Monticello Tree Service, Inc. for the City of Oakley from December 10, 2024, through June 30, 2026
Background and Analysis
The City of Oakley has limited in-house resources to be able to address all of the ongoing maintenance needs of the public infrastructure and facilities in the community.
Outside contractors have been used to supplement City staff in performing maintenance activities. The various types of public works maintenance activities that the City needs for outside contractor resources generally are major street repair, crack filling of streets, storm drainpipe repair and rehabilitation, ditch cleaning, large scale brush removal from open ditches and drainage basins, Tree services, striping of streets and parking lots, guard rail repair and replacement and concrete repair and lighting repair and maintenance.
Monticello Tree Service, Inc., specializes in providing agencies tree-related services and have worked in the past several years for the City on various tree pruning and removal projects and related services specially on emergency requests and have done so successfully and with very competitive pricing.
Due to this contactor’s familiarity with the City’s operations and to the high demand for City staff, the Public Works Department did not feel that it was feasible or would be fruitful to complete the formal bidding process for this on-call maintenance contract.
The award of the agreement is exempt from competitive bidding under Section 3.6.010 of the Oakley Municipal Code paragraph 8) which provides an exception for competitive bidding “For maintenance and repair of buildings and facilities.” Currently, for all such contract services above the $50,000 amount, the City Council must authorize the work by simple majority per the City’s purchasing policy
Approved and
Forwarded to the
City Council
114
STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Consistency with the Oakley Strategic Plan 27+
Consistence with the Oakley Strategic Plan for community health and safety by ensuring our Parks, Streets and Facilities are maintained to preserve safety for the Oakley Community.
Fiscal Impact
Approval of the resolution will authorize the City Manager to execute the On-Call Tree Services agreement with Monticello Tree Service, Inc. for the remainder of Fiscal Year 2024/25 and all of FY 2025/26, with the option to extend the agreement for an additional 2 years, through June 30, 2028, if work continues to be performed satisfactorily. The funding for this service is included in the Public Works Department operations budget for the respective fiscal years.
Staff Recommendation
City staff recommend that the City Council adopt the resolution approving the Tree Services Maintenance Agreement with Monticello Tree Service, Inc. for the remainder of Fiscal Year 2024/25 and all of FY 2025/26 and authorizing the City Manager to execute the agreement with the option to extend the agreement through June 30, 2028.
Attachments
1. Monticello Proposal
2. Resolution
115
MONTICELLO TREE SERVICE, INC. PO BOX 769 (530) 574-7270 www.monticellotreeservice.com Winters, CA [email protected] 95694 Nestor Hernandez
November 13, 2024
Monticello Tree Service, Inc. is pleased to submit this qualifications statement for tree pruning, removal, and arborist services for the City of Oakley. Monticello Tree Services, Inc. provides a wide range of tree related services for our clients. We have the experience needed to handle any project. Our team is professionally trained for all tasks related to tree pruning and removal in addition to having certified arborists in our team to handle all project needs.
Our top priority is to take care of your trees and to make them as healthy as can be. Through proper tree care techniques, we can ensure that they will continue to grow and help make your landscape look the best it can.
We can prune and shape any tree and offer palm tree care. We are experienced with the different types of trees in the Oakley community.
Our experts utilize proper tree trimming and tree pruning techniques to prevent unwanted harm to your trees.
Improper tree care can impact a tree’s growth and immunity to insects and diseases. Correct pruning and tree removal techniques along with detailed culling is essential for maintaining the health of your trees. Proactive pruning and thinning of your tree canopies dramatically minimize the risk of damage and is far less costly than the expense and inconvenience of an emergency which our crew is well equipped to respond swiftly.
The trust our clients put in us to keep them safe, care for their trees, and treat them fairly is not something we take lightly. Forming long-lasting relationships with each of our clients based on this trust is our mission.
We look forward to working with the City of Oakley on any tree related services. Please feel free to contact me at (530) 574-7270 if you have any questions.
Sincerely,
Nestor Hernandez, President
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MONTICELLO TREE SERVICE, INC. PO BOX 769 (530) 574-7270 www.monticellotreeservice.com Winters, CA [email protected] 95694 Nestor Hernandez
SERVICES
REQUESTED PRUNING SERVICE
dbh = diameter breast height
0 – 6” dbh $40.00 / per tree
7” – 18” dbh $95.00 / per tree
19” – 24” dbh $180.00 / per tree
25” – 36” dbh $400.00 / per tree
Over 36” dbh $520.00 / per tree
REQUESTED TREE AND STUMP REMPBAL SERVICE
Tree and Stump Removal
0-24” dbh
$20.00 / diameter inch
Tree and Stump Removal
over 24” dbh
$30.00 / diameter inch
Tree Removal Only 0-24” dbh $15.00 / diameter inch
Tree Removal Only Over 24 dbh $20.00/ diameter inch
Stump Removal Only $10.00 / inch
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MONTICELLO TREE SERVICE, INC. PO BOX 769 (530) 574-7270 www.monticellotreeservice.com Winters, CA [email protected] 95694 Nestor Hernandez
SERVICES
EMERGENCY CALL OUTS
After hours, weekends, holidays $90 / man hours
Minimum man hours per call 3 hours
TREE PLANTING
24 Box Trees $240.00 / tree
CREW RATE FOR SPECIAL PROJECTS/ SPECIAL EQUIPMENT
RATES
3 man crew with equipment $320.00 / hour
1 man crew with equipment $80.00 / hour
Skid steer $60.00 / hour
Dump Trailer $20.00 / hour
65” Boom Truck $60.00 / hour
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Resolution No. XX-24 Page 1 of 1
RESOLUTION NO. XX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY APPROVING AN AWARD OF CONTRACT WITH MONTICELLO TREE SERVICE, INC. FOR ONCALL TREE MAINTENANCE SERVICES AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR THE REMAINDER OF FY 2024/25 AND ALL OF FY 2025/26
WHEREAS, the City of Oakley Public Works and Engineering Department frequently seeks outside contractor maintenance services for City-owned infrastructure; and WHEREAS, the continued growth of trees in the community necessitates professional tree pruning services to ensure the trees grow properly and stay vibrant and healthy; and WHEREAS, Monticello Tree Service, Inc. has performed various tree maintenance services competently for the City in previous years; and WHEREAS, the award of the agreement is exempt from competitive bidding under Section 3.6.010 of the Oakley Municipal Code paragraph 8) which provides an exception for competitive bidding “For maintenance and repair of buildings and facilities”.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED, by the City Council of the City of Oakley that the On-Call Tree Maintenance Services agreement with Monticello Tree Service, Inc. for the remainder of Fiscal Year 2024/25 and all of FY 2025/26 is hereby approved, and the City Manager is authorized to execute said agreement. The proposal is attached hereto as Exhibit A.
BE IT FURTHER RESOLVED AND ORDERED, if at the end of the term, the services have been performed satisfactorily the City Manager has the discretion to approve an extension of the agreement, an additional 2 years to June 30, 2028, under the same terms as the original agreement.
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th of December 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS: APPROVED:
_______________________
, Mayor
ATTEST:
______ ________________
Kim Snodgrass, City Clerk Date
119
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Kevin Rohani, P.E., Public Works Director/City Engineer SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Agreement for On-Call Services with Jet Mulch, Inc. Related to Furnishing Park Playground and Landscaped Areas with Blown-In Wood Chips for the City of Oakley from December 10, 2024, through June 30, 2026
Background and Analysis
The City of Oakley has limited in-house resources to be able to address all of the ongoing maintenance needs of the public infrastructure and facilities in the community.
Outside contractors have been used to supplement City staff in performing maintenance activities. The various types of public works maintenance activities that the City needs for outside contractor resources generally are major street repair, crack filling of streets, storm drainpipe repair and rehabilitation, ditch cleaning, large scale brush removal from open ditches and drainage basins, striping of streets and parking lots, guard rail repair, and installation of wood chips at various playgrounds and public landscaping.
Jet Mulch, Inc. has been furnishing and installing wood chips at various park playgrounds and landscaping zones for the past several years. They have performed well and have met the City’s service requests professionally. This company is the only one that provides blown-in applications for wood chips which do not require staff or contractors to install the product, which saves on time and cost to the City of Oakley.
Due to this contactor’s familiarity with the City’s operations and the high demand for City staff, the Public Works Department did not feel that it was feasible or would be fruitful to complete the formal bidding process for this on-call maintenance contract.
The award of the agreement is exempt from competitive bidding under Section 3.6.010 of the Oakley Municipal Code paragraph 8) which provides an exception for competitive bidding “For maintenance and repair of buildings and facilities.” Currently, for all such contract services above the $50,000 amount, the City Council must authorize the work by simple majority per the City’s purchasing policy
Approved and
Forwarded to the
City Council
120
STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Consistency with the Oakley Strategic Plan 27+
Consistence with the Oakley Strategic Plan for community health and safety by ensuring our Parks, Streets and Facilities are maintained to preserve safety for the Oakley Community.
Fiscal Impact
The proposed work will be paid for from the various park and landscape maintenance funds and the Public Works Department operations budget for the respective fiscal years. Approval of the resolution will authorize the City Manager to execute the OnCall agreement with Jet Mulch, Inc. for the remainder of Fiscal Year 2024/25 and all of FY 2025/26, with the option to extend the agreement for an additional 2 years, through June 30, 2028, if work continues to be performed satisfactorily.
Staff Recommendation
City staff recommend that the City Council adopt the resolution approving the On-Call Agreement with Jet Mulch, Inc. for the remainder of Fiscal Year 2024/25 and all of FY 2025/26 and authorizing the City Manager to execute the agreement with the option to extend the agreement through June 30, 2028.
Attachments
Attachment 1 – Jet Mulch, Inc. Proposal
Attachment 2 - Resolution
121
JOB DESCRIPTION
JetMulch, Inc. has been around for two decades delivering and pneumatically installing organic landscape materials. The majority of the business involves in delivering and installing organic products for the Landscape and construction industry.
Our customers’ projects range in size from Caltrans Highway projects, to elementary school playground boxes and include City Parks, Landscape Contractors’ maintenance projects and new construction for commercial, residential, public and private projects. The following are our types of Mulch:
Jet Blend, Playground-Premium Wood Chips, Redwood Chip/Nugget, Gorilla Mulch, Colored Chip Reddish Brown/Mahogany/Black, Black Gorilla Mulch, Walk On Bark, Mini Fir Bark and Small Fir Bark, Compost, Light Weight Soil, Rounded Pea Gravel, and Pumice Rock.
How it works: We blow material from our blower trucks spraying every corner beautifully with hoses.
SERVICES
*Decorative landscape Mulch *Soil Amendment
*Erosion Control *Lightweight Soils
122
P.O. Box 1667 Capitola, CA 95010 Phone 866.306.8524 Fax 831-462-2126 www.jetmulch.com [email protected]
Engineered Wood Fiber for Playgrounds
Playground chips are made from 100% virgin Wood. Our playground chips are considered one of the safest wood products available for the playground environment because it contains no recycled content which may include metal or toxic residues. Meets ADA, ASTM, and CPSC playground surfacing standards and complies with all relevant ASTM standards: F1292 for impact absorption, F2075 for material purity, and F1951 for wheelchair access.
It is recommended that there is a containment border of at least twelve inches to allow for a safe depth of Engineered Wood Fiber. The subgrade should allow for adequate drainage from the playground box.
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November 2024
----------------------------- Price Sheet ---------------------------- ❖ Price includes blown-in installation
❖ Please call for a quote on projects larger than 50 cubic yards. ❖ Contact your local rockery for
Playground projects under 10 cubic yards or
Mulch projects under 20 cubic yards
MULCH
FREE DELIVERY on truckloads of 50 Cubic Yards or more installed on standard site types in standard Bay Area locations.
Jet Blend $44.95 /Cubic Yard
Playground - Wood Fiber $44.95 /Cubic Yard
Playground - Wood Chips $44.95 /Cubic Yard
Redwood Chip $54.95 /Cubic Yard
Gorilla Mulch $54.95 /Cubic Yard
Mahogany ProChip – Colored Chip $54.95 /Cubic Yard
Black Colored Chip $54.95 /Cubic Yard
Black Gorilla Mulch $59.95 /Cubic Yard
Walk On Bark $64.95 /Cubic Yard
Mini Fir Bark $74.95 /Cubic Yard
Small Fir Bark $74.95 /Cubic Yard
SOIL AMENDMENTS
Prices based on a truckload of 50 Cubic Yard quantities installed on standard site types and standard Bay Area locations.
Nitrolized Sawdust $44.95 /Cubic Yard
Compost/Humus Blend $49.95 /Cubic Yard
Planter Mix $94.95 /Cubic Yard
124
November 2024
SMALL LOAD SET UP FEES:
10-19 CY: $150.00
20-29 CY: $100.00
30-39 CY: $75.00
40-50 CY: $50.0
SMALL LOAD DELIVERY CHARGES:
$3.50 per mile
Jet Mulch, Inc. • P.O. Box 1667, Capitola, CA 95010 • 866-306-8524 www.JetMulch.com
125
Resolution No. XX-24 Page 1 of 1
RESOLUTION NO. XX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY APPROVING AN AWARD OF CONTRACT WITH JET MULCH, INC. FOR ON-CALL PARK
PLAYGROUND AND PUBLIC LANDSCAPING BLOWN-IN WOOD CHIP SERVICES FOR THE REMAINDER OF FY 2024/25 AND ALL OF FY 2025/26
WHEREAS, the City of Oakley is responsible for safe maintenance of all City park playgrounds and public landscaping areas based on State regulations; and WHEREAS, Jet Mulch, Inc. has been performing placement of wood chips at various park playgrounds and landscaping areas for the past several years for the City of Oakley; and WHEREAS, the award of the agreement is exempt from competitive bidding under Section 3.6.010 of the Oakley Municipal Code paragraph 8) which provides an exception for competitive bidding “For maintenance and repair of buildings and facilities”.
WHEREAS, Staff recommends executing the contract with Jet Mulch, Inc. for the remainder of FY 2024/25 and FY 2025/26 for furnishing and installing wood chips at park playgrounds and public landscaped areas; and
NOW, THEREFORE, BE IT RESOLVED AND ORDERED, by the City Council of the City of Oakley that the On-Call Agreement with Jet Mulch, Inc. for the remainder of Fiscal Year 2024/25 and all of FY 2025/26 is hereby approved, and the City Council authorizes the City Manager to execute said agreement. The proposal is attached hereto as Exhibit A.
BE IT FURTHER RESOLVED AND ORDERED, if at the end of the term, the services have been performed satisfactorily, the City Manager has the discretion to approve an extension of the agreement, an additional 2 years to June 30, 2028, under the same terms as the original agreement.
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th day of December 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
APPROVED:
_______________________
, Mayor
ATTEST:
______ ________________
Kim Snodgrass, City Clerk Date
126
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10 2024
TO: Joshua McMurray, City Manager
FROM: Jeri Tejeda, Administrative Services Director
SUBJECT: Consideration of a Resolution approving the City’s Investment Policy for Fiscal Year 2024/2025
Background and Analysis
California Government Code Section 53646 and good financial practice recommends that local agencies prepare a written investment policy and that the governing body review and approve the policy on an annual basis.
The Policy being presented continues to incorporate all sections and information as recommendation by the Association of Public Treasurers of the United States and Canada and the California Municipal Treasurers Association, for Fiscal Year 2024/2025. It identifies Safety, Liquidity and Return on Investment, in that order, as the City’s Investment objectives; incorporates the “prudent investor” standard; and limits investments to those specifically approved by Government Code.
The attached proposed investment policy for Fiscal Year 2024/2025 only has one minor change. It changes the term Agency Fund to Custodial Fund per GASB Statemen No. 84.
Consistency with the Oakley Strategic Plan 27+
This agenda item is consistent with the Strategic Plan 27+ goal for the City of Oakley to leverage its financial resources for the long-term benefit of our residents and businesses while maintaining sufficient reserves to provide stability and ensure a successful future.
Fiscal Impact
There is no fiscal impact.
Approved and
Forwarded to the
City Council
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STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Staff Recommendation
Staff recommends the Council adopt the attached Resolution Approving the City’s Investment Policy for Fiscal Year 2024/2025.
Attachments
1. Resolution
2. Statement of Investment Policy
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Resolution No. XX-24 Page 1 of 1
RESOLUTION NO. XX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY APPROVING THE INVESTMENT POLICY FOR FISCAL YEAR 2024/2025
WHEREAS, the City Council has established, and each year approves an Investment Policy regarding the investment of the City’s temporary idle cash; and WHERAS, the Policy delegates authority for investing the City’s funds to the Administrative Services Director; and
WHEREAS, the Policy specifies the City’s investment objectives in accordance with California Law and provides a framework for managing and investing the City’s funds in accordance with these objectives; and
WHEREAS, the Investment Policy itself requires the City’s Investment Policy be reviewed and approved by the City Council each year; and WHEREAS, the Administrative Services Director has reviewed the existing policy and recommends the City Council approve the attached policy for FY 2024/2025.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Oakley hereby approves the Investment Policy for FY 2024/2025 attached hereto as Exhibit A.
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th day of December, 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
APPROVED:
_______________________
Mayor
ATTEST:
_____________________ _______________________
Kim Snodgrass, City Clerk Date
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CITY OF OAKLEY
STATEMENT OF INVESTMENT POLICY
1. Purpose:
This statement provides guidelines for the prudent investment of the temporary idle cash of the City of Oakley (hereafter referred to as City) and outlines the policies for maximizing the efficiency of the City's cash management system. The goal is to enhance the economic status of the City while protecting its pooled cash.
2. Scope:
This Investment Policy (Policy) applies to all financial assets of the City. For purposes of this Policy, the City of Oakley includes the City, as Successor Agency to the Oakley Redevelopment Agency, and the Oakley Financing Authority, which are component units of the City of Oakley, controlled by the City Council, share the same administrative services of the City, and are "related entities" of the City. These funds are accounted for in the City's Annual Comprehensive Financial Report and include:
General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Internal Service Funds
Trust and Agency Funds
The investment of bond proceeds held with trustees is directed by the City but is governed by the restrictions on permitted investments in the applicable bond indenture or similar agreements.
The City retirement plans are with the California Public Employees Retirement System, and the City has no authority or oversight over the investments in any of the plans. Further, the City administers a deferred compensation plan through the ICMARetirement Corporation (ICMA-RC). Assets held in the ICMA plan are held in trust for the participants and are not assets managed by the City. The City does not have any authority over the investments held in these trusts.
3. Policy:
The City's cash management system should accurately monitor and forecast expenditures and revenues and allow the City to invest funds to the fullest extent possible, subject to the City's investment objectives, as described below.
Custodial Funds
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4. Objectives:
The primary objectives, in priority order, of the City's investment activities shall be:
4.1. Safety: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required (as described in more detail in Sections 9 and 12 of this Policy).
4.2. Liquidity: The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements, which might be reasonably anticipated.
4.3. Return on investment: The City's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, considering the City's investment risk constraints and the cash flow characteristics of the portfolio.
5. Prudence
In accordance with California Government Code ("CGC") §53600.3, the Administrative Services Director or designee, who are authorized to make investment decisions on the City's behalf, are trustees and therefore fiduciaries subject to the "prudent investor standard":
"When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with the care,skill, prudence, and diligence underthe circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency."
6. Delegation of Authority:
The authority to manage the City's investment program is derived from the California Government Code Sections 53600 through 53609. Management responsibility for the investment program is hereby delegated to the Administrative Services Director (Director), who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include reference to: safekeeping, repurchase agreements, wire transfer agreements, 131
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collateral/depository agreements and banking service contracts. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the established procedures. The Director shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The Director may also delegate investment decision making and execution authority to an investment advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided. Independently of the City’s relationship with its investment advisor, the Director maintains the authority to purchase securities on behalf of the City, provided that they comply with the Investment Policy.
7. Ethics and Conflicts of Interest:
The investment responsibility carries with it the added duties of ensuring that investments placed are done so without the appearance of improper influence. Finance personnel involved in the investment function shall adhere to the state's Code of Economic Interest and to the following:
7.1. All persons authorized to place or approve investments shall annually submit a Statement of Economic Interest, also known as the Form 700. The Form 700 provides necessary information to the public about an official’s personal financial interests to ensure that officials are making decisions in the best interest of the public and not enhancing their personal finances. Additional guidance on disclosing potential conflicts of interest is available on the California Fair Political Practices Commission website.
7.2. Maintaining the Public Trust: All participants in the investment process shall seek to act responsibly as custodians of the public trust. Investment officials shall avoid any transaction that might impair public confidence in the City of Oakley's ability to govern effectively.
8. Authorized Financial Dealers and Institutions:
Should the City engage in investments outside of the use of savings, money market funds, and policy compliant investment pools (LAIF and CalTrust, etc.), the Director will establish and maintain a list of financial institutions authorized to provide investment services, and a list of approved security broker/dealers selected by credit worthiness, who maintain an office in the State of California. These may include "primary" dealers or regional dealers that qualify under Securities & Exchange 132
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Commission Rule 15C3-1 (uniform net capital rule). No public deposit shall be made except in a qualified public depository as established by State laws.
All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions on the Director's list, must supply the Director with the following: Proof of National Security Dealers certification, trading resolution, proof of State of California registration, personal resume, certification of having read the City's investment policy, and depository contracts. In addition, a current audited financial statement is required to be on file for each financial institution and broker/dealer through which the City invests.
At a minimum, the task of maintaining a list of financial institutions and approved security broker/dealers shall include the Director's annual review of the financial condition and registrations of qualified bidders.
Before engaging in investment transactions with a broker/dealer, the Director shall have received from said firm a signed letter, attesting that the individual responsible for the City's account with that firm has reviewed the City of Oakley's Investment Policy and that the firm understands the policy and intends to present investment recommendations and transactions to the City that are appropriate under the terms and conditions of the Investment Policy.
If the City has an investment advisor, the investment advisor may use its own list of authorized broker-dealers to conduct transactions on behalf of the City.
Purchase and sale of securities will be made on the basis of competitive bids and offers with a minimum of three quotes being obtained, when practicable.
9. Authorized & Suitable Investments:
Investment of City funds is governed by the California Government Code Sections 53600 et seq. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investment to the investments listed below. In the event an apparent discrepancy is found between this Policy and the Government Code, the more restrictive parameters will take precedence. The maximum allowable percentage limits and minimum credit quality requirements listed below apply at the time the security is purchased. 133
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Credit criteria listed in this section refers to the credit quality of the issuing organization at the time the security is purchased. In the event of a downgrade below the minimum credit rating requirements listed below, the investment advisor, if so designated, must notify the Director of such downgrade within 15 days of the downgrade and will use their best professional judgment to determine the appropriate course of action.
Within the context of such limitations, the following investments are authorized, subject to the restrictions and limitations below:
Investment Type Maximum
Maturity
Maximum
Allowable
% of
Portfolio
Minimum Credit
Quality
Requirements
Gov’t Code
Section
Medium-Term Notes 5 years 30% "A" or equivalent
by an NRSRO
53601(k)
Mutual Funds
NIA 20% (10%
per fund)
"AAA" or
equivalent by two
NRSROs or
investment advisor
requirements
53601(1)(1)
Money Market Mutual
Funds
NIA 20%
"AAA" or
equivalent by tow
NRSROs or
investment advisor
requirements
53601(1)(2)
Asset-backed securities
5 years 20%
"AA" or
equivalent by an
NRSRO
53601(0)
Local Agency
Investment Fund
(LAIF)
NIA None None 16429.1
Shares of beneficial
interest in a Joint
Powers Authority (e.g.
Investment Trust of
California (CalTRUST)
or California Asset
Management Program
(CAMP))
NIA None None 53601(p)
Supranational
Obligations
5 years 30% "AA" or equivalent
by an NRSRO
53601(q)
Local Agency Bonds 5 years None None 53601(a)
U.S. Treasury
Obligations
5 years None None 53601(b)
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State ObligationsCA and Others5 years None "A" or equivalent by an NRSRO
53601(d)
CA Local Agency
Obligations
5 years None "A" or equivalent
by an NRSRO
53601(e)
5 years None None 53601(f)
U.S. Agency/Government
Sponsored Enterprise
Obligations
Bankers' Acceptances 180 days 40% None 53601(g)
Commercial Paper- 270 days
or
Non-Pooled Funds less
25% "A-1" or equivalent
by an NRSRO 53601(h)
Commercial Paper- 270 days
or
Pooled Funds less
40% "A-1" or equivalent
by an NRSRO 53635(a)(l)
Negotiable
Certificates of Deposit
5 years 30% "A" or equivalent
by an NRSRO
5360l(i)
Placement Service
Certificates of Deposit
5 years 50%
FDIC or NCUA
coverage
53601.8 and
53635.8
Non-negotiable
Certificates of Deposit
5 years None None 53630 et seq.
NRSRO = Nationally Recognized Statistical Ratings Organization Prohibited Investments: Under the provisions of Government Code Sections 53601.6 and 53631.5, the City shall not invest any funds covered by this Investment Policy in inverse floaters, range notes, interest only strips derived from mortgage pools or any investment that may result in a zero-interest accrual if held to maturity.
Notwithstanding the prohibitions in the above paragraph, the City may invest in securities issued by, or backed by, the United States government that could result in zero- or negative-interest accrual if held to maturity, in the event of, and for the duration of, a period of negative market interest rates. The City may hold these instruments until their maturity dates.
10. Collateralization:
Collateralization will be required on investments in certificates of deposit (excluding negotiable certificates of deposit) over $250,000. Repurchase agreements are authorized and suitable investments, per California Code. However, the City does not choose to include them in its list of authorized and suitable investments, at this time. 135
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If repurchase agreements were included in the list, they would also require collateralization. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be one hundred two percent (102%) of market value of principal and accrued interest.
Collateral must be held by an independent third party with whom the City has a current custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained.
The right of collateral substitution is granted.
11. Safekeeping and Custody:
All security transactions entered into by the City shall be conducted on a deliveryversus-payment (DVP) basis. Securities will be held by a third-party custodian designated by the Director and evidenced by safekeeping receipts. For the investments that are managed by PFM, the Director has designated US Bank, who is tied to CAMP investments, as the third-party custodian. All CAMP-tied IPs have US Bank as their custodian and all securities are held there with CAMP being the sweep vehicle and keeper of cash. US Bank is the custodian for the City’s assets, and the City of Oakley believes that this arrangement with the City’s third-party investment manager (PFM) satisfies the safekeeping and custody requirements of this policy.
12. Diversification:
The City will diversify its investments by security type and institution. Except as provided below, no more than five percent (5%) of the City's portfolio may be invested in any one institution, regardless of sector. The types of investments which are excluded from this limitation are:
• United States Treasury and federal agency/government-sponsored enterprise obligations,
• Supranational obligations,
• Bank certificates of deposit,
• Other certificates of deposit, and
• Money market funds and other pooled investment vehicles, including LAIF and shares of a JPA.
13. Maximum Maturities:
To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless approved by the City Council at least three months prior to investment, the City will not directly invest in securities maturing more than 5 years from the date of purchase.
14. Reporting:
The Director is charged with the responsibility of including investment activities in the 136
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City's Annual Comprehensive Financial Report. Additionally, the Director shall provide a quarterly listing of investment transactions and a quarterly investment report to the City Council.
The quarterly investment report shall include the following information for each individual investment: description of investment instrument, issuer name, maturity date, credit rating, coupon rate, yield, purchase price, par value, book value, current market value and the source of the valuation. The quarterly investment report shall also state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance and include a statement denoting the City's ability to meet its expenditure requirements for the next six months or provide an explanation as to why sufficient money may or may not be available.
15. Investment Policy Review:
The City's investment policy shall be reviewed by the Director and adopted by resolution annually by the City Council.
16. Other Constraints:
The City shall operate its investment portfolio within the many State and selfimposed constraints. It shall buy no stocks, shall not speculate, nor shall it deal in futures or options, or buy on margin. The City will not purchase inverse floaters, range notes, interest only strips or any security having an interest rate derived from an index, commodity price or other variable i.e. securities commonly known as derivatives.
17. Investment Pools/Mutual Funds
A thorough investigation of any pooled investment program and/or mutual fund is required prior to investing and on a continual basis. There shall be a questionnaire developed which will request the following information:
• A description of eligible investment securities, and a written statement of investment policy and objectives.
• A description of how interest is calculated and distributed, and how gains and losses are treated.
• A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. • A description of who may invest in the program, how often, and what size of deposits and withdrawals are allowed.
• A schedule for receiving statements and portfolio listings. • Are reserves or retained earnings utilized?
• A fee schedule and method for assessing fee.
• Does the pool accept bond proceeds?
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18. Internal Controls
The Director is responsible for establishing and maintaining a system of internal controls to ensure that City assets are protected from loss arising from fraud, employee error, imprudent actions, theft or misuse, and to ensure compliance with this Policy, City-mandated procedures and federal and state laws. An internal control structure should include written procedures that encompass the following principles:
• Segregation of duties,
• Explicit delegation of authority and responsibility,
• Timely reconciliation and balancing,
• Documentation, recording, and record keeping,
• Management control and oversight,
• Dual or secondary authorization.
The control structure should cover timely projections of cash flow and funding needs, cash collection and disbursements, wire transfers, anti-theft and antifraud practices, depository and custody services, collateral management, broker/dealer services, trading and confirmation, and master repurchase agreements (if appropriate).
It should be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management.
As part of its annual audit, the City’s auditor will review compliance with statues, policies and procedures.
19. Performance Standards
The investment portfolio shall be designed with the objective of principal preservation, liquidity and obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs.
In evaluating the performance of the City's portfolio in compliance with this Policy, it is expected that the City shall establish an appropriate performance benchmark and compare the total return of its portfolio to the total return of the benchmark.
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The policy recognizes that reporting on a market basis will periodically cause market gains or losses to be reported. In most instances, such gains or losses will not be realized since individual securities may be held to maturity. However, it is also recognized that in the course of managing the City's investment portfolio, realized losses may be incurred from time to time as part of an actively managed portfolio strategy, if deemed appropriate and if such losses are incurred with the greater goal of purchasing new securities which are expected to produce higher earnings (net of realized losses) over time, or of improving the portfolio's overall credit quality or positioning.
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Glossary of Investment Policy Terms
Amortization of Costs: Reconciliation of the purchase price of a security and par value resulting in net interest.
Bank Deposit: Deposits in banks or other depository institutions that may be in the form of demand accounts (checking) or investments in accounts that have a fixed term and negotiated rate of interest
Bankers' Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution, as well as the issuer, guarantees payment of the bill.
Benchmark: A passive index used to compare the performance, relative to risk and return, of an investor's portfolio.
Book Value: The value at which an asset is carried on a balance sheet.
Broker: A person or firm that acts as an intermediary by purchasing and selling securities for others rather than for its own account.
California Asset Management Program (CAMP): A pooled asset management program (joint powers authority) for California public agencies with professional investment services provided by PFM Asset Management LLC.
Cash Flow: A comparison of cash receipts (revenues) to required payments (debt service, operating expenses, etc.).
Certificate of Deposit (CD): A short-term, secured deposit in a financial institution that usually returns principal and interest to the lender at the end of the loan period.
CD Placement Service: A service that allowslocal agencies to purchase more than $250,000 in CDs from a single financial institution while still maintaining FDIC insurance coverage.
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Collateral: Securities, evidence of deposit or other property, which borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
Collateralization of Deposit: Process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing the repayment of deposited funds.
Commercial Paper (CP): An unsecured short-term promissory note issued by corporations or municipalities, with maturities ranging from 2 to 270 days.
Comprehensive Annual Financial Report (CAFR): The official annual report for the City. It includes combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with financerelated legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
County Pooled Investment Funds: The aggregate of all funds from public agencies placed in the custody of the county treasurer or chief finance officer for investment and reinvestment.
Coupon: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.
Credit Rating: Various alphabetical and numerical designations used by credit rating or nationally recognized statistical rating organizations (NRSROs), institutional investors, Wall Street underwriters, and commercial rating companies to give relative indications of bond and note creditworthiness.
Long-term Ratings
The three most commonly used NRSROs are Standard & Poor's, Fitch Ratings, and Moody's. Standard & Poor's and Fitch Ratings use the same system, starting with their highest rating, of AAA, AA, A, BBB, BB, B, CCC, CC, C, and D for default. Moody's Investors Service uses Aaa, Aa, A, Baa, Ba, B, Caa, and Ca.
The top four letter categories are considered investment grade ratings. 141
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Each of the services use pluses (+), minuses (-), or numerical modifiers to indicate steps within each category. The S&P ratings from AA to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. Moody's appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
Short-term Ratings
Standard & Poor's short-term ratings system is A-1+, A-3, B, C, and/ for default. Fitch Ratings use Fl+, F3, B, C, and/ for default. Finally, Moody's uses Pl and P3, anything below P3 is considered not prime.
Credit Risk: The chance that an issuer will be unable to make scheduled payments of interest and principal on an outstanding obligation. Another concern for investors is that the market's perception of an issuer/borrower's credit will cause the market value of a security to fall, even if default is not expected.
Custodian: A bank or other financial institution that keeps custody of stock certificates and other assets.
Dealer: Someone who acts as a principal in all transactions, including underwriting, buying, and selling securities, including from his/her own account.
Default Risk: The risk that issuers/borrowers will be unable to make the required payments on their debt obligations.
Delivery vs. Payment: The payment of cash for securities as they are delivered and accepted for settlement.
Diversification: The allocation of different types of assets in a portfolio to mitigate risks and improve overall portfolio performance.
Duration: Indicator of the effect of an interest rate change on a bond price.
The longer the duration, the greater the expected change in a portfolio's value when interest rates change.
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Federal Deposit Insurance Corporation (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.
Financial Industry Regulatory Authority (FINRA): FINRA is the successor to the National Association of Securities Dealers (NASD) and the member regulation, enforcement and arbitration operations of the New York Stock Exchange. It is a non-governmental organization that regulates member brokerage firms and exchange markets. The government agency which acts as the ultimate regulator of the securities industry, including FINRA, is the Securities and Exchange Commission.
Government Sponsored Enterprises (GSE): Privately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Securities issued by GSEs carry the implicit backing of the U.S. Government, but they are not direct obligations of the U.S. Government. For thisreason, these securities will offer a yield premium over Treasuries. Examples of GSEs currently include: Federal Home Loan Bank System (FHLB), Federal Farm Credit Banks Funding Corporation (FFCB), Federal Home Loan Mortgage Corporation (FHLMC), and the Federal National Mortgage Association (FNMA).
Interest: The amount a borrower pays to a lender for the use of his or her money.
Interest Rate Risk: Interest rate risk is the risk that an investment's value will change due to a change in the absolute level of interest rates, spread between two rates, shape of the yield curve, or any other interest rate relationship.
Liquidity: The measure of the ability to convert an instrument to cash on a given date at full face or par value.
Liquidity Risk: The risk that a security, sold prior to maturity, will be sold at a loss of value. For a local agency, the liquidity risk of an individual investment may not be as critical as how the overall liquidity of the portfolio allows the agency to meet its cash needs.
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Local Agency Investment Fund (LAIF): A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer's Office.
Market Risk: The chance that the value of a security will decline as interest rates rise. In general, as interest rates fall, prices of fixed income securities rise. Similarly, as interest rates rise, prices fall. Market risk also is referred to as systematic risk or risk that affects all securities within an asset class similarly.
Market Value: The price at which a security is trading and presumably could be purchased or sold at a particular point in time.
Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase/reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer/lender to liquidate the underlying securities in the event of default by the seller/borrower.
Maturity: The date on which the principal or stated value of an investment becomes due and payable.
Medium Term Note: Corporate or depository institution debt securities meeting certain minimum quality standards (as specified in the California Government Code) with a remaining maturity of five years or less.
Money Market Mutual Funds: A sub-type of mutual funds that invest exclusively in short-term money market instruments. Seek the preservation of capital as a primary goal while maintaining a high degree of liquidity and providing income representative of the market for short- term investments.
Mutual Fund: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments.
National Credit Union Administration (NCUA): an independent federal agency that insures deposits at federally insured credit unions, currently up to $250,000.
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Nationally Recognized Statistical Rating Organization (NRSRO): A rating organization designated by the SEC as being nationally recognized.
Negotiable Certificates of Deposit: Generally, short-term debt instrument that usually pays interest and is issued by a bank, savings or federal association, state or federal credit union, orstate-licensed branch of a foreign bank. The majority of negotiable CDs mature within six months while the average maturity is two weeks. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). Negotiable CDs are insured by FDIC up to $250,000, but they are not collateralized beyond that amount.
Non-Negotiable Certificates of Deposit: CDs that carry a penalty if redeemed prior to maturity. A secondary market does exist for nonnegotiable CDs, but redemption includes a transaction cost that reduces returns to the investor. Non-negotiable CDs issued by banks and savings and loans are insured by the Federal Deposit Insurance Corporation up to the amount of $250,000, including principal and interest. Amounts deposited above this amount may be secured with other forms of collateral through an agreement between the investor and the issuer. Collateral may include other securities including Treasuries or agency securities such as those issued by the Federal National Mortgage Association.
Par Amount or Par Value: The principal amount of a note or bond which must be paid at maturity. Par, also referred to as the "face amount" of a security, is the principal value stated on the face of the security. A par bond is one sold at a price of 100 percent of its principal amount.
Portfolio: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.
Premium: Premium means the difference between the par value of a security and the cost of the security, when the cost is above par. Investors pay a premium to purchase a security when the return to the investor (yield) is lower than the stated coupon (interest rate) on the investment.
Price: Price is the amount of monetary consideration required by a willing seller and a willing buyer to sell an investment on a particular date. 145
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Principal: The face value or par value of a debt instrument, or the amount of capital invested in a given security.
PrudentInvestor Standard: A standard of conduct where a person acts with care, skill, prudence, and diligence when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. The test of whether the standard is being met is if a prudent person acting in such a situation would engage in similar conduct to ensure that investments safeguard principal and maintain liquidity.
Public Bank: A corporation, organized as either a nonprofit mutual benefit corporation or a nonprofit public benefit corporation for the purpose of engaging in the commercial banking business or industrial banking business that is wholly owned by a local agency, as specified, local agencies, or a joint powers authority.
Qualified Public Depository: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
Rate of Return: The yield obtainable on a security based on its purchase price or its current market price.
Repurchase Agreement: An agreement of one party (for example, a financial institution) to sell securities to a second party (such as a local agency) and simultaneous agreement by the first party to repurchase the securities at a specified price from the second party on demand or at a specified date.
Safekeeping: Offersstorage and protection of assets provided by an institution serving as an agent.
Safety: In the context of investing public funds, safety relates to preserving the principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.
Secondary Market: A market made for the purchase and sale of outstanding issues following the initial distribution.
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2023-24 Investment Policy
Supranational Institutions: International institutionsformed by two or more governments that transcend boundaries to pursue mutually beneficial economic or social goals. There are three supranational institutions that issue obligations that are eligible investments by California local agencies: the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Inter-American Development Bank (IADB).
Total Return: Total return includes interest, realized gains and losses, and unrealized gains and losses over a given period of time.
U.S. Agency Obligations: Bonds issued by agencies of the Federal government set up to supply credit to various classes of institutions.
Examples include the Small Business Administration (SBA) and the Government National Mortgage Association (Ginnie Mae). The timely payment of principal and interest on federal agency bonds are explicitly backed by the "full credit and faith and credit of the U.S. government," whereas government-sponsored enterprise (CSE) obligations receive the de facto backing of the federal government. Nevertheless, both U.S. agency obligations and government-sponsored enterprise obligations trade similarly and are often generally referred to collectively as "federal agency" obligations.
U.S. Treasury Obligations: Debt obligations of the U.S. Government sold by the Treasury Department in the forms of bills, notes, and bonds. Bills are short-term obligations that mature in one year or less and are sold at a discount. Notes are obligations that mature between one year and ten years.
Bonds are long-term obligations that generally mature in ten years or more.
Weighted Average Maturity: The average maturity of all the securitiesthat comprise a portfolio, typically expressed in days or years.
Yield: The current rate of return on an investment security generally expressed as a percentage of the securities current price. 147
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Rob Barker, IT Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Agreement with AdArt Sign Company for the Replacement of Two Digital Signs Located at Civic Center Plaza and at the Junction of Laurel Road and Empire Avenue and a Controller at City Hall Background and Analysis
The City of Oakley currently utilizes two digital signs to communicate important information and advertise municipal events to the public. One sign is located at Civic Center Plaza, and the other at the junction of Laurel Road and Empire Avenue. These signs are critical for disseminating information effectively and maintaining engagement with the community.
Over time, these digital signs have aged and begun to show signs of deterioration.
Blotches caused by component failures have developed on the displays, reducing their effectiveness and visual appeal. Furthermore, the current signs are technologically outdated and do not support higher resolutions or modern imagery standards. Finally, the controller for the Civic Center Plaza sign has reached end of life and needs to be replaced to ensure that it can receive security updates.
Replacing these signs with newer, high-resolution digital signage will enhance the City’s ability to effectively communicate with residents and visitors. The updated displays will provide sharper, clearer imagery, significantly improving the quality of event advertising and information dissemination. AdArt Sign Company installed the existing signs and has provided quotes totaling $84,024 ($48,677 for Civic Center Plaza, $33,305 for Laurel Road and $2,042 for the controller) for the replacement of the two signs and controller.
Consistency with the Oakley Strategic Plan 27+
The provided services will support several objectives under the Strategic Plan 27+:
Community Health and Safety goal; Finance and Fiscal Responsibility goal; Sustainable Organization goal.
Approved and
Forwarded to the
City Council
148
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us Fiscal Impact
Funding for the replacement has been allocated in fund 220 Special Community Projects.
Staff Recommendation
Staff recommends the City Council adopt a resolution authorizing the City Manager to execute an agreement with AdArt Sign Company for the replacement of the digital signs located at Civic Center Plaza and at the junction of Laurel Road and Empire Avenue for a total not to exceed amount of $84,030.
Attachments
1. Proposed Resolution
149
Resolution No. XX-24 Page 1 of 1
RESOLUTION NO. XX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH ADART SIGN
COMPANY FOR THE REPLACEMENT OF TWO DIGITAL SIGNS LOCATED AT
CIVIC CENTER PLAZA AND THE JUNCTION OF LAUREL ROAD AND EMPIRE
AVENUE, AND A CONTROLLER LOCATED AT CITY HALL
WHEREAS, the City of Oakley utilizes digital signage at the Civic Center Plaza and the junction of Laurel Road and Empire Avenue to disseminate important information and advertise municipal events to the public; and
WHEREAS, the existing digital signs have aged and deteriorated, and are technologically outdated and unable to support higher resolutions or modern imagery standards; and WHEREAS, the controller for the Civic Center Plaza sign has reached its end-of-life and requires replacement; and
WHEREAS, replacing these signs with newer, high-resolution digital signage will enhance the City’s ability to effectively communicate with residents and visitors through sharper, clearer imagery and improved functionality; and
WHEREAS, AdArt Sign Company, the original installer of the existing signs, has provided a proposal for the replacement of the two signs and the Civic Center controller at a total cost of $84,030, will be funded through fund 220 Special Community Projects.
BE IT RESOLVED by the City Council of the City of Oakley that the City Manager is authorized to execute a contract with AdArt Sign Company for total not to exceed amount of $84,030 for the replacement of two digital signs and one controller.
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th day of December 2024 by the following vote.
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
___________________
, Mayor
ATTEST:
____________________ __________
Kim Snodgrass, City Clerk Date
150
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Kevin Rohani, P.E., Public Works Director/City Engineer SUBJECT: Adopt a Resolution Naming Parcel C of Subdivision 9615 Machado Property, “Riverine Park“
Background and Analysis
Meritage Homes of California, Inc. is the developer of Subdivision 9615 Machado Property. This subdivision is located at the southwest corner of Machado Lane and East Cypress Road. The subdivision includes Parcel C that is dedicated for public park purposes. Parcel C is a 0.32-acre parcel park proposed at the northeast end of Channel Circle as shown in the attached Vicinity Map.
The following features are being considered for this park: play structure, accessible picnic tables, trash / recycling receptables, benches, dog waste dispensers, park monument sign, open turf area, and lighting.
The Developer is currently preparing the final construction documents for the park and intends to start construction in the coming months. The following three (3) park names were presented for consideration: Riverine Park, Riverine Recreation Park, and The Park at Riverine.
Of the three names being considered, the Developer wishes to name the park “Riverine Park” to compliment the street names selected for this new neighborhood and name of this subdivision as Riverine Subdivision. The park name is in line with the City’s adopted Facilities Naming Policy (Attachment 3). Staff is requesting City Council approval of the park name.
Consistency with the Oakley Strategic Plan 27+
This item is consistent with the Strategic Plan 27+ Parks and Open Space Goals to build parks and public areas and encourage programs and recreation.
Fiscal Impact
There is no fiscal impact associated with this action as all the work is being performed by the Developer.
Approved and
Forwarded to the
City Council
151
STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Staff Recommendation
Staff recommends that the City Council adopt the Resolution to formally name Parcel C park of Subdivision 9615 “Riverine Park.”
Attachments
Attachment 1. Resolution
Attachment 2. Vicinity Map
Attachment 3. City Facilities Naming Policy
152
Resolution No. __-24 Page 1
RESOLUTION NO. __-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY NAMING PARCEL C OF SUBDIVISION 9615, “RIVERINE PARK”
WHEREAS, Meritage Homes of California, Inc. is the developer of Subdivision 9615, Machado Property; and
WHEREAS, Parcel C of Subdivision 9615 has been dedicated to the City of Oakley for a public park and landscape purposes; and
WHEREAS, in February 2007 the City Council approved a City Facilities Naming Policy; and
WHEREAS, the developer proposed three (3) names for the park and after further discussions with staff, “Riverine Park” was selected; and NOW, THEREFORE, BE IT RESOLVED AND ORDERED, that the City Council of the City of Oakley hereby names the dedicated park Parcel C of Subdivision 9615, as “Riverine Park”.
PASSED AND ADOPTED by the City Council of the City of Oakley at a meeting held on December 10, 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
APPROVED:
_______________________
ATTEST: ,Mayor
______
Kim Snodgrass, City Clerk Date
153
Vicinity Map
Subdivision 9615 Park
N
154
CITY FACILITIES NAMING POLICY
Approved February 26, 2007
PURPOSE:
To provide guidelines and procedures for naming of City Facilities and Parks.
DEFINITIONS:
City Facilities: Any facility, park or property owned, controlled and/or maintained by the City to conduct City business or City‐sponsored activities, including developed areas, undeveloped areas and designated open spaces.
PROCEDURE:
City staff will coordinate the generation of potential names and forward them to the City Manager. The City Manager will provide recommendation(s) regarding the proposed name(s) to the City Council for its consideration and the City Council shall have final approval.
POLICY:
1) Naming shall be of such that it would provide an easy and recognizable reference to the facility and be compatible to the area in which the facility is located.
2) Naming based on a geographic location should reflect the well‐known geographic name of the area within which the facility is located, the street adjacent to the facility, or other acceptable identification with the consideration of specific place, neighborhood, subdivision, or well‐confirmed cultural or historical significance.
3) Naming based on a person or family should be done only for an individual (or family) that has had a clearly positive and significant impact or contribution to the City, State or Country. (This could include significant donors to the facility or previous property owners). Names should be avoided that would cause undue contention or concern.
4) Naming should take into account the names of other facilities (public or private) so as to not duplicate or utilize a name that could be readily confused by others, particularly emergency response personnel.
155
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Kevin Rohani, P.E., Public Works Director/City Engineer SUBJECT: Adopt a Resolution approving the roadway vacation of public right of way for Old Neroly Road between Neroly Road to Empire Avenue located along the westerly boundary of APN 053-071-046
Background and Analysis
On April 22, 2008, the City of Oakley City Council Resolution 40-08, approved the vesting tentative for Subdivision 9191 and a development plan for the Empire Station mixed use project by LSK development for the property located at the southwest corner of Empire Avenue and the future realignment of Neroly Road. The project condition of approval number 85 required the developer to convey to the City, by offer of dedication, the on-site portion of the right of way needed to realign Neroly Road as shown as the “Current Alignment Neroly Road” in the attached Vicinity Map. Condition of approval 89, required the developer to apply to the City for the abandonment of the excess right of way for Neroly Road south of the realigned Neroly Road shown as “Old Neroly Road” in the attached Vicinity Map.
On January 27, 2009, the City of Oakley City Council approved the right of way dedication and reimbursement agreement with LSK Development Company regarding the Neroly Road Realignment west of Empire Avenue (Capital Improvement Project CIP No. 92) and authorize the City Manager to execute the agreement. The agreement identified the terms of the land transactions required by the Conditions of Approval for this development.
During this time, the City of Oakley designed CIP No. 92 in conjunction with the improvements to the Magnolia Park Subdivision (Sub 8731) being developed by Pulte Homes east of Empire Avenue. On March 27, 2012, the City of Oakley City Council accepted the work as complete for CIP No. 92 for the Neroly Road Westerly Extension.
As part of the realignment project, the City coordinated with many utility companies in this area to abandon facilities within Old Neroly Road to complete the abandonment of the public right of way. In 2011, AT&T and the City of Oakley entered into an agreement to underground the utility lines along Old Neroly Road as part of this effort.
On February 28, 2022, the City of Oakley Public Works Department received a letter from Mark III Asset Management requesting that the City of Oakley complete the land exchange for the realignment of Neroly Road at Empire Avenue per Condition of Approved and
Forwarded to the
City Council
156
STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Approval number 89. Public Works staff have received verification from all utility companies that there are no public utilities within the area to be vacated.
Over the years, the excess right of way in this area has been a nuisance, being a regular place for illegal dumping and unhoused encampments. Once the vacation of the public right of way is approved, this area will be incorporated with the future development of the adjacent lot on APN 053-071-046.
A public hearing notice was posted 10 days prior and on November 19, 2024, this item was brought to the Planning Commission and approved to be brought forth to the City Council for approval.
Consistency with the Oakley Strategic Plan 27+
This item is consistent with the Strategic Plan 27+ Community Health and Safety goals under Community Health and Safety Goal to build safe streets and healthy neighborhoods.
Fiscal Impact
There is no fiscal impact associated with this action.
Staff Recommendation
Staff recommends that the City Council adopt the Resolution vacating the public right of way of Old Neroly Road between Neroly Road to Empire Avenue as shown in Exhibit A and for the City Manager to sign the grant deed to execute the land transfer.
Attachments
Attachment 1 – Vicinity map
Attachment 2 - Resolution
Attachment 3 – Exhibit A Legal Description and Plat Map 157
Old Neroly Road Vacation of Public Right of Way
Vicinity Map
APN 053-071-046
158
Resolution No. __-24 Page 1 of 2
RESOLUTION NO. __-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY VACATING
EXCESS RIGHT OF WAY OF OLD NEROLY ROAD BETWEEN NEROLY ROAD TO EMPIRE AVENUE LOCATED ALONG THE WESTERLY BOUNDARY OF APN 053- 071-046
WHEREAS, on April 22, 2008, the City of Oakley City Council Resolution 40-08, approved the vesting tentative for Subdivision 9191 and a development plan for the Empire Station mixed-use project by LSK development for the property located at the southwest corner of Empire Avenue and the future realignment of Neroly Road. The project condition of approval number 85 required the developer to convey to the City, by offer the dedication, the on-site portion of the right of way needed to realign Neroly Road as shown as the “Current Alignment Neroly Road” in the attached Vicinity Map. Condition of approval 89, required the developer to apply to the City for the abandonment of the excess right of way for Neroly Road south of the realigned Neroly Road shown as “Old Neroly Road” in the attached Vicinity Map; and, WHEREAS, on January 27, 2009, the City of Oakley City Council approved the Right of Way Dedication and Reimbursement Agreement with LSK Development Company regarding the Neroly Road Realignment west of Empire Avenue (Capital Improvement Project CIP No. 92) and authorize the City Manager to execute the agreement. The agreement identified the terms of the land transactions required by the Conditions of Approval for this development; and,
WHEREAS, on February 28, 2022, the City of Oakley Public Works Department received a letter from Mark III Asset Management requesting that the City of Oakley complete the land exchange for the realignment of Neroly Road at Empire Avenue per Condition of Approval number 89 and consistent with Right of Way Dedication and Reimbursement Agreement for Neroly Road; and,
WHEREAS, A public hearing notice was posted 10 days prior and on November 19, 2024, this item was brought to the Planning Commission and approved to be brought to forth to the City Council for approval.
WHEREAS, this vacation is made pursuant to Chapter 1 of Part 2 of the Streets & Highways Code, commencing at Sec. 8300; and
WHEREAS, the City Council finds that the vacation will not have a significant effect on the environment and that it has been determined to be exempt from the requirements of CEQA pursuant to Article 5, Section 15061(b)(3) of the CEQA Guidelines; and WHEREAS, the area to be vacated is described on Exhibit “A” attached hereto; 159
Resolution No. __-24 Page 2 of 2
THERFORE BE IT RESOLVED by the City Council of the City of Oakley as follows:
1. The area described herein as Exhibit A is hereby vacated as public right of way for streets, highways, and public service easements.
2. Authorize the City Manager to sign the Grant Deed to execute the land transfer.
PASSED AND ADOPTED this 10th day of December 2024 by the following vote.
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
_______________________
ATTEST: ,Mayor
______
Kim Snodgrass, City Clerk Date
160
161
162
163
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Jeri Tejeda, Administrative Services Director
SUBJECT: Consideration of a Resolution Accepting the Annual Comprehensive Financial Report (ACFR), Memorandum on Internal Control, Required Communications and Report on agreed Upon Procedures for Fiscal Year 2023/2024.
Background and Analysis
The Fiscal Year 2023/2024 ACFR, including the City’s audited financial statements is attached. The Successor Agency to the Oakley Redevelopment Agency is also included in the ACFR. In accordance with State Law, the Auditors also performed agreed upon procedures to review our Appropriations Limit calculations and compliance. Maze and Associates performed the engagements and have issued an unmodified (clean) opinion on the financial statements, as presented.
The Auditor’s Memorandum on Internal Control and the Auditor’s Required Communications letter include the required communications from the Statement of Auditing Standards (SAS) No. 112 Communicating Internal Control Related Matters Identified in an Audit. SAS No. 112 requires that the Auditor report any “material weakness” or “significant deficiency” found during the audit. The attached Memorandum on Internal Control (MOIC) contains zero (0) significant deficiencies for FY 2023/2024, and also shows the significant deficiencies from the prior year MOIC have been implemented.
The Auditor’s “Report on Agreed Upon Procedures for Compliance with the Proposition 111 2023/2024 Appropriations Limit Increment” is also attached. The agreed upon procedures are less in scope than the audit, but in carrying out the procedures, the auditors walked through the calculation to ensure compliance with the appropriations limit calculation requirement. We are within the limitation guidelines.
The Auditor’s report on agreed upon procedures for testing the City’s compliance with certain provisions of the investment policy is new this fiscal year. This is a requirement of the investment policy and therefore we have engaged an independent auditor for the current year and will continue to do so in the future.
Approved and
Forwarded to the
City Council
164
STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 2
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US A representative of Maze & Associates will present the ACFR and other related documents to the City Council, which are attached to this staff report. City staff has prepared the transmittal letter, which starts on page i and the Management Discussion and Analysis (MD&A), which starts on page 5 of the attached ACFR document. The MD&A is meant to help summarize much of the information that is provided in further detail in the ACFR report. Below are some highlights related to the City’s financial Health:
The net change in fund balance for the General Fund was an increase of approx.$7.1 million in Fiscal Year 2023/2024. In the prior year there was an anticipated use of funds for capital projects which decreased the prior year’s fund balance. This year’s increase is primarily related to higher than anticipated income in Interest Earned, Police Services Revenue Property Tax Revenue and one-time sale of property. It is also due to savings in expenditures in Contingency, Consulting & Contract Services in Public Works and Community Development as well as Salary and Benefit savings due to vacancies in Police and Public Works.
Among other shifts in the General Fund’s fund balance categories, the Capital Projects Reserve was increased by $5.7 million due to the large increase in the fund balance. This will be brought to the City Council at mid-year to determine whether to keep in reserve or allocate to a specific capital project. General Fund Emergency Reserves are at 30% and shown on the ACFR as a separate line item to help the reader differentiate from fund balance that should only be used during times of economic downturn versus unassigned fund balance that is available for use.
Consistency with the Oakley Strategic Plan 27+
This agenda item is consistent with the Strategic Plan 27+’s Finance and Fiscal Responsibility Goal for the City of Oakley to leverage its financial resources for the long-term benefit of our residents and businesses while maintaining sufficient reserves to provide stability and ensure a successful future. It is also consistent with the Finance and Fiscal Responsibility objective to communicate on financial updates including financial health, priorities, and unexpected expenditures.
Fiscal Impact
There is no fiscal impact of adopting this resolution.
Staff Recommendation
Staff recommends the City Council adopt the attached resolution accepting the reports.
165
STAFF REPORT
CITY HALL | 3231 Main Street, Oakley, CA 94561 3
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US Attachments
1. Resolution
2. FY 2023/2024 ACFR
3. FY 2023/2024 Memorandum on Internal Control
4. FY 2023/2024 Required Communications
5. FY 2023/2024 Investment Policy
6. FY 2023/2024 Gann Limit Report
166
RESOLUTION NO. XX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY ACCEPTING
THE ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR), MEMORANDUM
ON INTERNAL CONTROL, REQUIRED COMMUNICATIONS, AND REPORT ON AGREED UPON PROCEDURES FOR FISCAL YEAR 2023/2024
WHEREAS, each year the City hires an independent audit firm to complete an audit of the City’s books and records; and
WHEREAS, the City’s citizens, bondholders, bond insurers, rating agencies and others rely on the audited financial statements, and other related information published by the City to monitor the City’s financial health; and
WHEREAS, the City publishes an Annual Comprehensive Financial Report (ACFR), which includes its audited Basic Financial Statements as defined in Governmental Accounting Standards, as well as Supplementary Information; and WHEREAS, the Auditor has as part of its most recently completed audit prepared a “Memorandum on Internal Control” outlining any significant deficiencies, material weaknesses, and/ or any additional suggestions the Auditor feels might be of benefit to the City; and
WHEREAS, the Auditor has prepared a letter of “Required Communications” which includes certain information related to the audit that professional standards require to be communicated to the City Council and management under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance; and WHEREAS, the Auditor was also engaged to perform certain agreed upon procedures to verify the City’s Appropriations Limit calculations and has issued a report related thereto; and
WHEREAS, the ACFR, Memorandum on Internal Control, Required Communications, Investment Policy Audit and Report on Agreed Upon Procedures performed for Fiscal Year 2023/2024 are attached hereto as Exhibits A, B, C and D.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Oakley accepts the attached ACFR, Memorandum of Internal Control, Required Communications, Investment Policy Audit and Report on Agreed-Upon Procedures performed for Fiscal Year 2023/2024.
167
Resolution No. XX-24 Page 2 of 2
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th day of December 2024 by the following vote:
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
____________________
Mayor
ATTEST:
_____________________ ___________________
Kim Snodgrass, City Clerk Date
168
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FOR THE YEAR ENDED
June 30, 2024
169
170
CITY OF OAKLEY, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
PREPARED BY THE
FINANCE DIVISION
171
This Page Left Intentionally Blank
172
INTRODUCTORY SECTION
173
174
CITY OF OAKLEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
INTRODUCTORY SECTION:
TABLE OF CONTENTS
Letter of Transmittal ................................................................................................................................................... i Organizational Chart ............................................................................................................................................. viii Elected Officials and Administrative Personnel ...................................................................................................... ix GFOA Certificate of Achievement ........................................................................................................................... x FINANCIAL SECTION:
Independent Auditor’s Report .................................................................................................................................. 1 Management’s Discussion and Analysis ................................................................................................................ 5 Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ..................................................................................................................... 16 Statement of Activities .......................................................................................................................... 17 Fund Financial Statements:
Governmental Funds:
Balance Sheet .................................................................................................................................... 20 Reconciliation of the Governmental Funds Balance Sheet with the Statement of Net Position .............................................................................................................. 23 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 24 Reconciliation of the Net Change in Fund Balances Total Governmental Funds with the Statement of Activities ........................................................................................ 26 175
CITY OF OAKLEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
FINANCIAL SECTION (Continued):
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
General Fund ............................................................................................................................... 27 Lighting and Landscaping Districts ............................................................................................ 28 Public Protection ......................................................................................................................... 29 Low and Moderate Income Housing Asset ................................................................................. 30 Proprietary Funds:
Statement of Net Position ............................................................................................................ 32 Statement of Revenue, Expenses and Changes in Fund Net Position ........................................ 33 Statement of Cash Flows ............................................................................................................. 34 Fiduciary Funds:
Statement of Fiduciary Net Position ........................................................................................... 36 Statement of Changes in Fiduciary Net Position ........................................................................ 37 Notes to Basic Financial Statements ....................................................................................................... 39 Required Supplementary Information:
Schedule of the City’s Proportionate Share of the Net Pension Liability ................................................... 90 Schedule of Contributions ............................................................................................................................ 92 Supplemental Information:
Major Governmental Fund Other than the General Fund and Special Revenue Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Traffic Impact Fees ....................................................................................................................... 98 176
CITY OF OAKLEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
FINANCIAL SECTION (Continued):
Non-major Governmental Funds:
Combining Balance Sheets ............................................................................................................. 102 Combining Statements of Revenues, Expenditures, and Changes in Fund Balances ........................................................................................................................ 108 Combining Schedules of Revenues, Expenditures, and Changes in Fund Balances-Budget and Actual ........................................................................................ 114 Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 124 Combining Statement of Revenue, Expenses and Changes in Fund Net Position ......................... 125 Combining Statement of Cash Flows ............................................................................................. 126
Custodial Funds:
Combining Statement of Net Position ................................................................................................ 128 Combining Statement of Changes in Net Position ............................................................................. 130 STATISTICAL SECTION:
Financial Trends:
Net Position by Component – Last Ten Fiscal Years .............................................................................. 137 Changes in Net Position – Last Ten Fiscal Years ................................................................................... 138 Fund Balances of Governmental Funds – Last Ten Fiscal Years ........................................................... 139 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years .......................................... 140 Revenue Capacity:
Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............................. 141 Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ....................................... 142 Principal Property Tax Payers ................................................................................................................. 143 Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 144 177
CITY OF OAKLEY, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
STATISTICAL SECTION (Continued):
Debt Capacity:
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years .................................................................. 145 Computation of Direct and Overlapping Debt ........................................................................................ 146 Computation of Legal Bonded Debt Margin ........................................................................................... 147 Bonded Debt Pledged Revenue Coverage – Last Ten Fiscal Years ........................................................ 148 Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................. 149 Principal Employers – Current Year and Nine Years Ago ...................................................................... 150 Operating Information:
Budgeted Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ....................................................................................................................... 151 Operating Indicators by Function/Program – Last Ten Fiscal Years ...................................................... 152 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .................................................. 153
OTHER AUDIT REPORT
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements performed in Accordance with Government Auditing Standards ............................................................................................................. 157 178
Anissa Williams
Mayor
Shannon Shaw
Vice Mayor
George Fuller
Councilmember
Hugh Henderson
Councilmember
Aaron Meadows
Councilmember
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.CI.Oakley.CA.US December 10, 2024
To the Citizens of the City of Oakley,
and the Honorable Members of the Oakley City Council,
We are pleased to submit to you the City of Oakley’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024. This report is published in accordance with State law that requires financial statements be presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants. It is also prepared to meet reporting standards set forth by the Governmental Finance Officers Association.
This letter of transmittal is designed to complement the Management’s Discussion and Analysis (MD&A) and should be read in conjunction with it.
The MD&A can be found immediately following the report of the independent auditors.
This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, the management of the City has established a comprehensive internal control framework designed to both protect the government’s assets from loss, theft, or misuse and compile sufficient reliable information for the presentation of the City’s financial statements in conformity with GAAP. Given the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal control has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement.
To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and the changes in financial position of the governmental activities and the various funds of the City; and includes all disclosures necessary to enable the reader to gain an understanding of the City’s financial affairs.
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City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us
CITY PROFILE
The City of Oakley is a community of approximately 46,500 residents located in the eastern portion of Contra Costa County in the San Francisco Bay Area. The City entity is a California municipality incorporated on July 1, 1999 and operates under a Council-City Manager form of government. The City Council is comprised of five members, three of which were elected by the voters, city-wide, serving in staggered four-year terms and two were elected to serve in their respective District from the 2022 election, also serving a staggered four-year term. The 2024 election transitioned the three remaining at-large seats to District seats. The Council hires a City Manager to run the City’s day-to-day operations.
The City provides the following services: Legislative; Administrative; Building and Safety; Code Enforcement, Planning; Engineering; Streets, Parks, and Landscape Maintenance; Recreation; and Police Protection. Other community services that are provided by local special districts with their own governing boards include: Sewer, Water, Transit, Irrigation, Mosquito Abatement, Flood Control, Schools, and Fire Protection. The City contracts sanitation services with a local firm under a long-term franchise agreement.
FINANCIAL INFORMATION
Discussion and analysis of the City’s finances can be found in the MD&A section of the attached report. The information below includes a summary of what is recorded in the General Fund and certain Other Financial Information of ongoing interest but not included in the MD&A.
The Financial Statements presented in this ACFR include the City and its component unit, the Oakley Public Financing Authority. It is blended in the report since it is governed by the City Council sitting in a separate capacity and provides services exclusively to the City. The Oakley Redevelopment Agency was dissolved on January 31, 2012, and its assets and liabilities were transferred to the City, as Housing Successor, and to a Successor Agency. The Successor Agency is reported as a Private Purpose Trust Fund, since it is legally a separate Entity and its decisions and governance subject to the approval of parties other than the City Council.
Each year, the City Council holds a strategic planning discussion and adopts a budget to direct the allocation of City resources in accordance with its strategic planning priorities. The process typically begins in January with internal budget reviews, followed by a strategic planning session in March, a budget workshop ii 180
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us in May to discuss a Proposed Budget, and adoption of a final Recommended Budget in June. The development of the Fiscal Year 2024/25 Budget included a budget study session that was held at the May 14, 2024 Council meeting.
The City operates on a fiscal year that begins each July 1 and ends on June
30. The adopted Budget includes the annual update of the City’s Comprehensive Statement of Financial Policies, which serves as a framework for its financial practices, an update to its 10 Year Plan, and budgets for each of the funds under the City’s control. Budgetary control is established at the Fund level.
The City’s General Fund is its primary operating fund, and is used to account for Legislative, Administrative Services, Community Development, Recreation, Police and Public Works operations, and is where the City accounts for all its general-purpose revenues. It is distinguished from the City’s other governmental funds that are used to account for special purpose revenues, capital projects, debt service activities, and monies held for the benefit of others.
DEBT MANAGEMENT
The City generally does not incur debt, except in instances where there will be long-term benefits or where no other method of acquiring an asset is possible.
Equipment purchases are generally funded through the City’s Equipment Replacement Fund or with current revenues.
RESERVES
The City has sufficient reserves to meet its current and immediate future obligations. The Statement of Financial Policies contains reserve policies and the City’s Adopted Budget includes a 10 Year Plan which highlights the impact of near-term decisions on fund balances and reserves during the 10-year period. Furthermore, in order to maintain the 10 Year Plan’s relevance, twice each year (at budget adoption and again at mid-year), the City reviews and updates the assumptions used in the Plan.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
In preparing the budget for FY 2024/25, management considered the following significant factors likely to affect the financial condition of the City:
Building permit issuance continued to slow throughout 2024. While this was anticipated in the FY 2023/24 budget, keeping revenues very conservative, it iii 181
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us was anticipated to grow in the FY 2024/25 budget. The end of 2024 has brought an increase to the issuance of building permits for single family homes as well as a large commercial project.
Property Tax revenue growth was budgeted at 4% for Fiscal Year 2024/25, however, with the County Assessor subsequently reported an increase of over 5% in assessed valuations which is anticipated to increase revenue for property tax and property tax in lieu of vehicle license fees.
The City is seeing an uptick in commercial development. The Oakley Mercantile building in the downtown was recently completed and all but one of the six tenant spaces are filled. The same developer of that building, R and R Pacific Construction, has already started construction on a mixed-use commercial/residential building across the street from the Mercantile building.
The Shops at Laurel Fields has also started construction. This will feature a Safeway anchored shopping center and bring several new businesses into the City providing for a mix of fast casual dining and goods and services for our residents.
The City has also taken on two major Capital Improvement projects. The City, in three phases spanning three fiscal years, will complete the East Cypress Road widening from Knighten Avenue to Bethel Island Road. This multi-year project has required significant resources and coordination with many other agencies. When completed, this will finish a stretch of road that has been in desperate need of improvement for decades. We are also working on closing the final gap of improvements needed on Laurel Road. Those improvements at the large 22-acre parcel at the southeast corner of Laurel Road and O’Hara Avenue will complete the widening of Laurel Road, that has been worked on for over two decades, from Highway 4 to Main Street.
The City is aware of the lack of funding for storm water maintenance and capital projects. In the fiscal year 2024/25 budget the City transferred $100,000 in general fund money to the storm water fund in an effort to help offset to rising costs related to storm water. It is anticipated this transfer will be a recurring transfer and will likely need to increase year over year.
The City has accumulated reserves well in excess of its adopted policy level of 30% of anticipated General Fund expenditures. With an adequate reserve, the Council has appropriated the excess to fund one-time additional infrastructure and economic development investments. The City has several large projects iv 182
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us in the coming years and any one-time expenditures used will be weighed against the 10-year plan to ensure all expenditures can be managed not only now but into the future.
In December 2016 the California Public Employees Retirement System (“CalPERS”) lowered the discount rate assumption, the long-term rate of return from 7.50% to 7% over the subsequent three years. On November 15, 2021, the CalPERS Board voted to lower the rate further, from 7% to 6.8%. In FY 2017/18 the City set up a pension trust that will be used to reduce the unfunded accrued liability and/or provide rate stabilization in future years. At the end of FY 2023/24 the City has $1,165,247 in the pension trust account that can be used to pay future pension costs. The City has also set aside reserves of $1,000,000 for consideration of future section 115 Trust investments or UAL pay-downs.
On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law. Section 9901 of the ARPA amended Title VI of the Social Security Act to add Section 603. This establishes the Coronavirus State & Local Fiscal Recovery Fund (CSLFRF) for local governments across the U.S. Every city and town received a funding allocation. In California, both large cities-entitlement cities (populations over 50,000) and small cities – non-entitlement cities (populations of less than 50,000, which includes the City of Oakley) have received ARPA funding allocations. In total, small cities (non-entitlement, cities including Oakley) in California received $1.2 billion. The City of Oakley received $10.2 million and to date has obligated all $10.2 million as it is required by the grant to do so by December 31, 2024. All obligated expenses must be used by December 31, 2026.
While the budget news was generally good, the City Council continues to support a budget process that uses recurring revenues for recurring expenditures and allocates one-time funds for one-time purposes, reflecting the Council’s commitment to conservative budgeting, controlling costs, and using the City’s revenues wisely.
LONG TERM FINANCIAL PLANNING
The City adopts a balanced budget for each fiscal year by June 30. The City has financial policies that include the use of one-time revenues being used for non-recurring or one-time expenditures including capital and reserves. The City has adopted a fund balance policy that requires the unassigned fund balance in the General Fund to be at least 30% of operating expenditures. As part of the budgeting process a 10-year financial projection is approved each year. v 183
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us This creates the framework to evaluate the City’s success in ensuring service sustainability. Each year, a 5-year Capital Improvement Plan is created to build and maintain the core infrastructure of the City.
THE LOCAL AND REGIONAL ECONOMIES
Oakley’s local economy continues to grow. While commercial activity in the region has improved, commercial vacancies in nearby cities remain a viable and competing alternative to new ground-up construction in Oakley. New development and City initiatives bring infrastructure improvements and attractive new neighborhoods. These investments support the City’s efforts to attract new businesses and expand existing local employment opportunities.
The City continues the revitalization of the downtown area with the improvement and widening of Main Street. New commercial development is nearing completion in the downtown and grant funding has been received by the San Joaquin Joint Powers Authority to install an Amtrak train platform in the downtown area.
Like most small cities in metropolitan areas, Oakley’s economy is influenced strongly by the regional economy. It rises as the region expands and falls as the region contracts.
The San Francisco Bay Area continues to be one of the top areas in economic growth in 2024, with an average 2.7% GDP, while employment for the City’s residents continues to improve. Oakley has a labor force of 19,800, with an unemployment rate of 5.4% in September 2024, compared to 4.5% in 2023,
5.9% in 2022 and 7.2% in 2021.
INDEPENDENT AUDITORS
State statutes require an annual audit by independent certified public accountants. The accounting firm of Maze & Associates has been engaged by the City to conduct this year’s audit. The auditor’s report on the basic financial statements is included in the financial section of the report.
AWARDS FOR EXCELLENCE IN FINANCIAL REPORTING
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report for the fiscal year ended June 30, 2023. To receive the award, a government must publish an easily readable and efficiently organized annual comprehensive financial vi 184
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.
AVAILABILITY TO THE PUBLIC
Once accepted by the Council, the report will be made available to the public at City Hall, on the City’s website, at State and Federal repositories, and by providing copies to the City’s bond disclosure dissemination agent.
CONCLUSION
We are proud to deliver to you the City’s Annual Comprehensive Financial Report for the year ended June 30, 2024. The preparation of this report on a timely basis could not have been accomplished without the dedicated services of Finance Division staff and the assistance of many others in the City organization. We would like to express our appreciation to everyone who contributed to its preparation and thank you for your continued support in planning and conducting the financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
Joshua McMurray Jeri Tejeda
City Manager Administrative Services Director
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RESIDENTSOFOAKLEY
CITYMANAGER
Leads the day to day operations
Exec. Dir of Successor Agency
Exec. Dir of Financing Authority
Economic Development
CITYCOUNCIL
ASSISTANTCITYMANAGER
Public Information, Council Liaison,
Information Technology, City Clerk,
Records, Elections, Paralegal, Agenda
Packets, Passports, Special Projects,
Emergency Preparadness, Website
Services
PUBLICWORKS
Engineering, Capital Projects,
Parks & Landscaping, Storm
Water, Roadways &Traffic,
Inspections, Facility
Maintenance
COMMUNITY DEVELOPMENT
Planning &Zoning
Building Permits
Code Enforcement,
Recycling, Housing, Census,
Business Licenses
ADMINISTRATIVE SERVICES
Finance, Budget, Accounting, AP
&AR, Payroll, Human Resources,
Recruitment, Compensation &
Benefits, Recreation, Programs &
Events, Facility Rentals, Risk
Management, Workers Comp
POLICE
Administration
Patrol
Investigations
Special Services
Records
2024-2025
CITYATTORNEY
Advises City Council and Staff
viii 186
CITY OF OAKLEY
ELECTED OFFICIALS AND
ADMINISTRATIVE PERSONNEL
JUNE 30, 2024
ELECTED OFFICIALS
Mayor Anissa Williams
Vice-Mayor Shannon Shaw
Council Member George Fuller
Council Member Hugh Henderson
Council Member Aaron Meadows
ADMINISTRATIVE PERSONNEL
City Manager Joshua McMurray
Assistant City Manager Danielle Navarro
City Attorney Derek Cole
Chief of Police Paul Beard
Administrative Services Director Jeri Tejeda
Public Works Director/City Engineer Kevin Rohani
Community Development Director Kenneth Strelo
City Clerk Libby Vreonis
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Oakley
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
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FINANCIAL SECTION
189
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Oakley, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Oakley, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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Supplemental Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplemental Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 25, 2024 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
November 25, 2024
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MANAGEMENT’S DISCUSSION AND ANALYSIS
This discussion and analysis of the City of Oakley’s financial performance for the fiscal year ended June 30, 2024, provides an overview of year ending results based on the government-wide statements, an analysis on the City’s overall financial position and results of operations to assist users in evaluating the City’s financial position, and discussions of both significant changes that occurred in funds and significant budget variances. In addition, it describes the activities during the year for capital assets and long-term debt. It concludes with a description of currently known facts, decisions, and conditions that are expected to have a significant effect on the financial position or results of operations. Please read this management’s discussion and analysis in conjunction with the City’s financial statements.
FINANCIAL HIGHLIGHTS
• Government-wide net position increased by $11,604,328 or 3.52 percent this year. • Government-wide program expenditures exceeded program revenues by $11,672,894. • General Fund revenues were $2,115,084 more than budgeted; expenditures were $3,861,403 less than budgeted.
• The General Fund fund balance at the end of the year was $32,912,037 of which $17,711,344 was available/unassigned.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and Statement of Activities (on pages 16 and 17) provides information about the activities of the City as a whole and presents a long-term view of the City’s finances. Fund financial statements start on page 20. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City’s operations in more detail than the government-wide statements by providing information about the City’s most significant funds and other funds. The remaining fiduciary fund statement provides financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government. 5 195
REPORTING THE CITY AS A WHOLE
The Statement of Net Position and the Statement of Activities:
Our analysis of the City as a whole begins on page 7. One of the most important questions asked about the City’s finances is “Is the City as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities to answer this question. These statements include all assets, deferred outflows/inflows of resources and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are considered regardless of when cash is received or paid.
These two statements report the City’s net position and changes in net position. Net position is the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, which is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position is an indication of whether its financial health is improving or deteriorating. To put the City’s financial health in perspective, you will likely need to consider certain non-financial factors, such as changes in the economy, that impact consumer spending or property values. In the Statement of Net Position and the Statement of Activities, we include City activities from two categories:
Governmental activities – Most of the City’s basic services are reported in this category, and include general government (city manager, city clerk, finance, etc.), community development (planning and building, public works and parks, police protection, and recreation. Property taxes, sales tax, transient occupancy tax, user fees, interest income, franchise fees, state and federal grants, contributions from other agencies, and other revenues finance these activities.
Component unit activities – The City includes one additional legal entity in its report – the Oakley Public Financing Authority. Although legally separate, the City is financially accountable for this “component unit.”
REPORTING THE CITY’S MOST SIGNIFICANT FUNDS
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds (called “major” funds) and other funds (called “non-major” funds) – not the City as a whole.
Some funds are required by State law and/or by bond covenants; however, management has established other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for the use of certain taxes, grants, and other resources.
The City’s funds are classified as Governmental Funds, Proprietary Funds or Fiduciary Funds. 6 196
Governmental Funds
Most of the City’s basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending.
These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. The differences of results in the Governmental Fund financial statements to those in the Government-Wide financial statements are explained in a reconciliation following each Governmental Fund financial statement.
Proprietary Funds - Internal Service Activities
The City has established Equipment Replacement, Information Technology and Capital Facilities Maintenance and Replacement Internal Services Funds. Internal Service Funds are operated in a manner similar to a private business enterprise. In the case of the Equipment Replacement Fund, it charges the other City funds to accumulate amounts sufficient to maintain and replace fleet vehicles at the end of their useful life. The Information Technology Fund is funded by transfers from the General Fund that are sufficient to replace computer equipment as necessary, and the Capital Facilities Maintenance and Replacement Fund charges the other City Funds to accumulate sufficient amounts to pay for major repairs and building systems replacements when they may occur. These Funds are reported using the accrual basis of accounting.
Trust and Custodial Funds - Reporting the City’s Fiduciary Responsibilities The City is the trustee, or fiduciary, for certain funds held on behalf of bondholders and other governmental agencies. The City’s fiduciary activities are reported in separate Statements of Fiduciary Net Position and Changes in Fiduciary Net Position. We exclude these activities from the City’s other financial statements because the City does not own these assets and cannot use them to finance its operations. The City is the Successor Agency to the Oakley Redevelopment Agency, and the Successor Agency’s assets and liabilities are accounted for in a private purpose trust fund reported with the City’s other fiduciary funds.
THE CITY AS A WHOLE
For Fiscal Year 2023/2024, the City’s combined net position increased $11,604,328 from $329,229,513 to $340,833,841. The analysis below focuses on the net position (Table 1) and changes in net position (Table 2) of the City’s governmental activities. 7 197
Table 1
Net Position
As of June 30, 2024 and 2023
The City’s Net Position is made up of three components: Net Investment in Capital Assets; Restricted Net Position; and Unrestricted Net Position. Net Investment in Capital Assets, representing capital assets, and principally infrastructure assets, accounts for the majority of the City’s governmental activities’ net position.
The increase of $7,646,963 in Net Investment in Capital Assets resulted primarily from the contribution of street and parks infrastructure from developers, including the Pheasant Meadows and Vintner View housing developments and the completion of several large capital projects including the Downtown Parking Lot Project as well as the FY 2023/2024 Street Repair and Resurfacing Project.
Governmental Activities 2024 2023
Assets
Current and restricted assets $104,755,131 $102,852,722 Other Long-Term Assets 12,845,286 12,736,548
Capital assets 245,637,998 238,336,035
Total Assets 363,238,415 353,925,305
Deferred Outflows of Resources
Related to pensions (Note 11) 4,025,773 4,135,020
Liabilities
Long-term debt outstanding 7,570,000 7,915,000
Other liabilities 18,325,163 20,116,979
Total Liabilities 25,895,163 28,031,979
Deferred Inflows of Resources
Related to pensions (Note 11) 267,952 441,835
Related to leases (Note 14) 267,232 356,998
Total Deferred Inflows of Resources 535,184 798,833
Net Position
Net Investment in Capital Assets 238,067,998 230,421,035 Restricted 60,747,069 59,525,708
Unrestricted 42,018,774 39,282,770
Total Net Position $ 340,833,841 $ 329,229,513
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The increase of $1,221,361 in Restricted Net Position is primarily due to funds restricted for capital projects, as a result of current year project expenditures and carryover to the next year for project completion.
The increase of $2,736,004 in Unrestricted Net Position is primarily attributed to the General Fund revenues in excess of expenditures. With a conservative budget due to the uncertainties of the effect of inflation on the economy, property tax, and interest came in significantly higher than anticipated. Vacancies in staffing as well as conservative spending accounted for the Fiscal Year 2023/2024 expenditures coming in under budget.
Table 2
Changes in Net Position
As of June 30, 2024 and 2023
Governmental Activities 2024 2023
REVENUES
Program Revenues:
Charges for Services $20,762,123 $20,818,777
Operating Grants & Contributions 5,461,834 3,475,268
Capital Grants & Contributions 6,672,260 12,071,631
General Revenues:
Property tax 10,631,202 9,997,445
Sales tax 3,146,621 3,259,906
Other taxes 3,193,877 2,906,346
Use of money and property 5,082,660 3,231,632
Miscellaneous 1,222,862 1,414,703
Total Revenues 56,173,439 57,175,708
EXPENSES
Legislative 998,002 1,107,304
Administrative Services 3,552,112 3,605,591
Law Enforcement 13,584,056 12,909,496
Community Development and Housing 4,650,961 4,822,090
Public Works 20,385,721 20,106,673
Recreation 1,065,586 1,033,851
Interest on long-term debt 332,673 344,126
Total Expenses 44,569,111 43,929,131
Change in Net Position 11,604,328 13,246,577
Net Position – Beginning 329,229,513 315,982,936
Net Position – Ending $340,833,841 $329,229,513
9 199
Governmental Activities
Total governmental revenue for Fiscal Year 2023/2024 was $56,173,439. Capital Grants and Contributions, which account for 12% of revenue, saw a decrease of $5,399,371, from $12,071,631 in Fiscal Year 2022/2023 to $6,672,260 in Fiscal Year 2023/2024. This decrease is due to high value capital projects that were completed in Fiscal Year 2023/2024. Charges for Services, which account for 37% of revenue decreased slightly by $56,654, This remains consistent with the slowdown of development with the City. Property Taxes increased $633,757 due to a general increase in property values as well as an increase in the number of new homes on commercial and industrial buildings being assessed. The use of money and property increased $1,851,028 due to the fluctuation of market rates, the increase in investment in money market accounts, and the sale of City Property. The other categories experienced slight increases.
Total expenses were $44,569,111. Public Works, with $20,385,721 of expenses, represented the largest component of total governmental expenses. The $279,048 increase in Public Works expenses resulted primarily from capital projects being completed in Fiscal Year 2023/2024, compared to the prior fiscal year. Law Enforcement increased by $674,560, primarily due to a planned increase in salary and benefits as well as fewer vacancies within the department.
Fiscal Year 2024 Governmental Activities
10 200
THE CITY’S FUNDS
On page 24, the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances is shown. The combined fund balance was $89,234,702, an increase of $4,229,897. The largest contributors, aside from the General Fund, to the change in fund balance were the increases ARPA funding of $463,163 and Traffic Impact Fees of $747,073, primarily due increasing interest rates and the return received, and an increase in the Landscape and Lighting Districts assessments of $1,521,920 due to the timing of capital expenditures.
The General Fund Balance increased by $7,170,271, from the prior year. The increase is due to a decrease in transfers to fund capital projects in FY 2023/2024 and higher than normal interest earned.
The General Fund Unassigned Fund Balance increased by $1,126,192, due primarily to the 3.5% unexpected increase in revenue with the sale of the City property and 4.25% less of planned expenditures.
General Fund revenues were $8,349,483 more than expenditures. That excludes Net Transfers Out of $1,179,212, which are categorized under Other Financing Sources (Uses).
General Fund Budgetary Highlights
For the City’s General Fund, actual revenues of $23,080,032 were $2,115,084 more than the final budgeted revenues of $20,964,948 Use of Money and Property, Property Tax, and Other Tax Revenues exceeded final budget by $1,655,930. The increase in assessed value of property was approx. 5%, which was better than the projected 4% at budget time. Higher than anticipated interest earned was also a factor in the increase.
General Fund expenditures of $14,730,549 were $3,861,403 less than the final budget of $18,591,952. Savings were realized primarily in Law Enforcement ($1,700,453) and Public Works ($837,139). The law savings are a result of vacancies that existed throughout the fiscal year. The savings in Public Works were a combination of salary savings from vacant positions and lower expenditures in contract services than originally anticipated. 11 201
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
At the end of Fiscal Year 2023/24 the City had $245,637,998 invested in a broad range of capital assets including land, streets, bridges, drainage systems, traffic lights, parks, buildings, vehicles, and equipment. (See Table 3).
Table 3
Capital Assets
As of June 30, 2024 and 2023
Governmental Activities 2024 2023
Non Depreciable
-Land $18,429,069 $18,535,225
-Construction in Progress 5,405,955 11,585,659
-Subscriptions in Progress 182,442 0
Depreciable, net of Accumulated
-Machinery, Equipment and Vehicles 1,770,217 1,421,130
-Buildings and Improvements 25,124,723 24,334,114
-Park Improvements 14,068,218 14,738,950
-Infrastructure 180,657,374 167,720,957
Total Capital Assets $245,637,998 $238,336,035
Capital Assets increased by $7,301,963 during Fiscal Year 2023/24, with the most significant increases being in Infrastructure by $12,936,417. Large capital projects such as both projects related to the Downtown Parking Lot Project, Street Repair and Resurfacing Project and the Cypress Grove Storm Drain Pump Station Building.
The City’s FY 2024/25 Capital Improvement Budget calls for the spending of $13,175,000 on new capital projects, the majority being the construction of roadways, Oakley Library & Community Center, and street repairs. The projects will be financed primarily with Traffic Impact Fees, and General Fund Allocations. Additional information about the capital assets can be found in Note 7 of the financial statements.
12 202
Debt
At year-end, the City’s governmental activities had $7,570,000 of Outstanding Debt as shown in Table 4. In December 2016, the City issued the 2016 Lease Revenue Bonds of $10,025,000 to refinance the outstanding 2006 Certificates of Participation and to finance the construction of the Oakley Recreation Center. Additional information about the City’s debt can be found in Note 8 of the financial statements.
Table 4
Outstanding Debt at Year-End
Governmental Activities 2024 2023
2016 Lease Revenue Bonds $7,570,000 $7,915,000
During the year, the City made all of its current year debt service payments in a timely manner.
CONTACTING THE CITY FOR FINANCIAL INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Finance Division at the City offices at 3231 Main Street, Oakley, California, by calling (925) 625-7010, or forwarding your inquiry via the “contact us” page on the City’s website (www.oakleyinfo.com). This Annual Comprehensive Financial Report (ACFR), as well as other financial documents, is posted in the Finance Division section of the City Website.
13 203
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204
CITY OF OAKLEY
STATEMENT OF NET POSITION
AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the City’s assets and deferred outflows of resources and all its liabilities and deferred inflows of resources, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the City’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between City funds have been eliminated.
The Statement of Net Position reports the difference between the City’s total assets and deferred outflows of resources and the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of the City’s Net Position, by subtracting total liabilities from total assets.
The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column. The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds.
The Statement of Activities reports increases and decreases in the City’s Net Position. It is also prepared on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Statement of Activities presents the City’s expenses first, listed by program. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental program. The City’s general revenues are then listed in the Governmental Activities and the Change in Net Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City and the Oakley Public Financing Authority, which is legally separate but is a component unit of the City because it is controlled by the City, which is financially accountable for the activities of the entity. 15 205
CITY OF OAKLEY
STATEMENT OF NET POSITION
JUNE 30, 2024
Governmental
Activities
ASSETS
Cash and investments available for operations (Note 3) $96,428,525 Cash and investments with fiscal agent (Note 3) 1,733,001 Accounts receivable, net of allowance
for doubtful accounts (Note 1F) 2,793,190
Interest receivable 474,865
Prepaids and deposits 1,368
Loans receivable (Note 5) 12,551,825
Land held for resale (Note 6) 3,324,182
Capital assets (Note 7):
Land and construction in progress 24,017,466
Depreciable, net 221,620,532
Leases receivable (Note 14) 293,461
Total Assets 363,238,415
DEFERRED OUTFLOWS OF RESOURCES
Related to pensions (Note 11) 4,025,773
LIABILITIES
Accounts payable 2,395,256
Accrued liabilities 252,865
Deposits payable 1,539,709
Unearned revenue 9,103,868
Interest payable 51,628
Claims payable - due in one year (Note 16) 50,009
Compensated absences (Note 1H):
Due within one year 332,832
Due in more than one year 1,331,326
Net Pension Liability - Due in more than one year (Note 11) 3,267,670 Long-term debt (Note 8):
Due within one year 360,000
Due in more than one year 7,210,000
Total Liabilities 25,895,163
DEFERRED INFLOWS OF RESOURCES
Related to pensions (Note 11) 267,952
Related to leases (Note 14) 267,232
Total Deferred Inflows of Resources 535,184
NET POSITION (Note 10)
Net investment in capital assets 238,067,998
Restricted for:
Capital projects 49,070,436
Debt service 52,134
Police services 452
Low and moderate income housing 11,624,047
Total Restricted Net Position 60,747,069
Unrestricted net position 42,018,774
Total Net Position $340,833,841
See accompanying notes to financial statements
16 206
CITY OF OAKLEY
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
Net (Expense)
Revenue and Change
Program Revenues in Net Position
Operating Capital
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities Governmental Activities:
Legislative $998,002 ($998,002)
Administrative Services 3,552,112 $487,927 $250,000 (2,814,185) Community Development 4,647,542 2,783,470 2,527,663 $498,812 1,162,403 Public Works 20,385,721 9,158,715 2,374,313 6,173,448 (2,679,245) Housing Programs 3,419 (3,419)
Law Enforcement 13,584,056 7,909,954 309,858 (5,364,244) Recreation 1,065,586 422,057 (643,529)
Interest and fiscal charges 332,673 (332,673)
Total Governmental Activities $44,569,111 $20,762,123 $5,461,834 $6,672,260 (11,672,894) General revenues:
Taxes:
Property taxes 10,631,202
Sales taxes 3,146,621
Business license taxes 327,862
Transient occupancy taxes 263,885
Franchise taxes 2,602,130
Intergovernmental, unrestricted:
Motor vehicle in lieu 55,579
Use of money and property 5,075,841
Gain on sale of property 6,819
Miscellaneous 1,167,283
Total General Revenues 23,277,222
Change in Net Position 11,604,328
Net Position-Beginning 329,229,513
Net Position-Ending $340,833,841
See accompanying notes to financial statements
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208
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the City in fiscal 2024. Individual non-major funds may be found in the Supplemental Section.
GENERAL FUND
The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Revenues deposited in the General Fund include property tax, sales tax, franchise fees, business licenses, fines and forfeitures and fees for services. This fund is used to finance most of the City’s basic services including Legislative, General Administration, Law Enforcement, Public Works and Community Development.
LIGHTING AND LANDSCAPING DISTRICTS SPECIAL REVENUE FUND This fund accounts for assessments made upon parcels of land within the Lighting and Landscaping Zones #1, #2 and #3 and their use in accordance with the provisions of the State of California Streets and Highway Code.
PUBLIC PROTECTION SPECIAL REVENUE FUND
This fund accounts for dedicated Police Services Special Taxes and State COPS program funds.
LOW AND MODERATE INCOME HOUSING ASSET SPECIAL REVENUE FUND This fund accounts for the housing assets of the former Oakley Redevelopment Agency and loan repayments restricted to low and moderate income housing projects.
ARPA SPECIAL REVENUE FUND
This fund accounts for American Rescue Plan Act funding. The City is allowed to claim $10 million of the funds as an economic loss, which can be used to provide government services. The remaining $177,190 is being claimed as a partial reimbursement for special COVID-19 sick leave that the City’s General Fund has paid out during the pandemic.
TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
This fund accounts for fees assessed on new development to provide street and road improvements. 19 209
CITY OF OAKLEY
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2024
Lighting and
Landscaping Public
General Districts Protection
ASSETS
Cash and investments available for operations (Note 3) $27,855,066 $14,947,996 Cash and investments with fiscal agent (Note 3) 1,165,247 Accounts receivable, net of allowance
for doubtful accounts (Note 1F) 1,357,414 19
Interest receivable 151,018 73,469 $9,322
Due from other funds (Note 4C) 220,331
Prepaids and deposits 1,368
Loans receivable (Note 5) 85,150
Advances to other funds (Note 4B) 78,532
Leases receivable (Note 14) 293,461
Land held for resale (Note 6) 3,324,182
Total Assets $34,531,769 $15,021,484 $9,322
LIABILITIES
Accounts payable $614,225 $462,106
Accrued liabilities 251,261
Due to other funds (Note 4C) $9,322
Deposits payable 6,173
Unearned revenue 480,841
Advances from other funds (Note 4B) 78,532
Total Liabilities 1,352,500 540,638 9,322
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - loans receivable
Unavailable revenue - interest on advances to other funds Related to leases (Note 14) 267,232
Total Deferred Inflows of Resources 267,232
FUND BALANCES
Fund balance (Note 10):
Nonspendable 3,515,461
Restricted 1,165,247 14,480,846
Assigned 10,519,985
Unassigned 17,711,344
Total Fund Balances (Deficits) 32,912,037 14,480,846
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $34,531,769 $15,021,484 $9,322
See accompanying notes to financial statements
20 210
Low and Moderate Traffic Other Total
Income Housing Impact Governmental Governmental
Asset ARPA Fees Funds Funds
$418,852 $7,200,379 $14,435,278 $29,430,201 $94,287,772 567,754 1,733,001
1,000 1,434,757 2,793,190
40,319 73,174 116,561 463,863
220,331
1,368
12,452,208 14,467 12,551,825
630,216 616,797 1,325,545
293,461
3,324,182
$12,871,060 $7,240,698 $15,154,135 $32,166,070 $116,994,538 $27,814 $397,907 $744,240 $2,246,292
251,261
211,009 220,331
1,533,536 1,539,709
6,612,364 1,575,042 435,621 9,103,868
$1,247,013 1,325,545
1,247,013 6,640,178 1,972,949 2,924,406 14,687,006
12,452,208 12,452,208
178,597 174,793 353,390
267,232
12,452,208 178,597 174,793 13,072,830
3,515,461
13,002,589 21,286,197 49,934,879
600,520 7,914,723 19,035,228
(828,161) (134,049) 16,749,134
(828,161) 600,520 13,002,589 29,066,871 89,234,702
$12,871,060 $7,240,698 $15,154,135 $32,166,070 $116,994,538 21 211
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212
CITY OF OAKLEY
Reconciliation of the
GOVERNMENTAL FUNDS - BALANCE SHEET
with the
STATEMENT OF NET POSITION
JUNE 30, 2024
Total fund balances reported on the governmental funds balance sheet: $89,234,702 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Government Funds. 245,637,998
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance, to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the Statement of Net Position. 2,001,187
NON-CURRENT REVENUES
Revenues which are unavailable on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. 12,805,598
LONG TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Long-term debt (7,570,000)
Interest payable (51,628)
Compensated absences (1,664,158)
Net pension liability and pension-related deferred outflows/inflows of resources 490,151 Claims Payable (50,009)
NET POSITION OF GOVERNMENTAL ACTIVITIES $340,833,841
See accompanying notes to financial statements
23 213
CITY OF OAKLEY
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
Lighting and
Landscaping Public
General Districts Protection
REVENUES
Property taxes $10,631,202
Sales tax 3,146,621
Other taxes 2,866,015 $971,409
Licenses and permits 2,212,279
Charges for services 276,138
Fines and forfeits 92,495
Intergovernmental 526,029 $186,159
Developer fees
Special assessments 4,932,765 7,732,158
Loan repayments
Use of money and property 2,167,290 657,212 54,285
Miscellaneous 1,161,963 2,500
Total Revenues 23,080,032 6,563,886 7,972,602
EXPENDITURES
Current:
Legislative 921,436
Administrative Services 2,936,167
Community Development 2,519,134
Public Works 1,634,486 4,969,982
Housing programs
Law Enforcement 5,534,807 7,972,602
Recreation 1,034,181
Capital outlay 150,338 269,784
Debt service:
Principal
Interest and fiscal charges 3,084
Total Expenditures 14,730,549 5,242,850 7,972,602
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 8,349,483 1,321,036
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4A) 1,557 200,884
Transfers (out) (Note 4A) (2,115,070)
Proceeds from sale of property 934,301
Total Other Financing Sources (Uses) (1,179,212) 200,884 NET CHANGE IN FUND BALANCES 7,170,271 1,521,920
FUND BALANCES (DEFICIT) AT BEGINNING OF YEAR 25,741,766 12,958,926 FUND BALANCES (DEFICIT) AT END OF YEAR $32,912,037 $14,480,846 See accompanying notes to financial statements
24 214
Low and Moderate Traffic Other Total
Income Housing Impact Governmental Governmental
Asset ARPA Fees Funds Funds
$560,663 $11,191,865
3,146,621
2,342,246 6,179,670
2,212,279
276,138
92,495
$2,339,200 3,542,098 6,593,486
$1,494,245 1,956,334 3,450,579
351,670 13,016,593
$6,068 6,068
37,457 436,163 685,914 990,261 5,028,582
5,360 8,635 1,178,458
43,525 2,775,363 2,185,519 9,751,907 52,372,834
921,436
2,936,167
576,193 1,539,315 4,634,642
138,076 3,259,402 10,001,946
3,419 3,419
33,148 13,540,557
1,034,181
1,763,007 1,300,370 11,794,299 15,277,798
345,000 345,000
47,120 331,888 382,092
50,539 2,339,200 1,438,446 17,303,052 49,077,238
(7,014) 436,163 747,073 (7,551,145) 3,295,596
2,986,793 3,189,234
(1,074,164) (3,189,234)
934,301
1,912,629 934,301
(7,014) 436,163 747,073 (5,638,516) 4,229,897
(821,147) 164,357 12,255,516 34,705,387 85,004,805
($828,161) $600,520 $13,002,589 $29,066,871 $89,234,702 25 215
CITY OF OAKLEY
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $4,229,897 Amounts reported for governmental activities in the Statement of Activities are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Capital expenditures are added back to fund balance 15,671,398 Depreciation expense is deducted from fund balance
(Depreciation expense is net of internal service fund depreciation of $659,791 which has already been allocated to serviced funds.) (9,276,335) Developer dedicated infrastructure is added to fund balance 3,494,186 Capital expenditures contributed to internal service funds (473,877) Capital assets contributed from internal service funds 117,791 Retirements are deducted from fund balance (2,325,700)
LONG TERM DEBT PROCEEDS AND PAYMENTS
Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal is added back to fund balance 345,000
NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Non-current portion of compensated absences 209,785
Interest payable 2,300
Unavailable revenue 252,867
Advance from Fire District 136,023
Net pension liability (asset) and deferred outflows/inflows related to pensions (1,125,619) Claims payable 25,841
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition and maintenance to individual funds.
The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.
Change in Net Position - Internal Service Fund 320,771
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $11,604,328 See accompanying notes to financial statements
26 216
CITY OF OAKLEY
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance
Original Amended Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Property taxes $10,047,326 $10,297,027 $10,631,202 $334,175 Sales taxes 3,100,000 2,953,000 3,146,621 193,621
Other taxes 2,904,000 2,904,000 2,866,015 (37,985)
Licenses and permits 2,103,800 1,963,800 2,212,279 248,479 Charges for services 232,926 232,926 276,138 43,212
Fines and forfeits 110,600 110,600 92,495 (18,105)
Intergovernmental 420,000 481,481 526,029 44,548
Use of money and property 627,550 807,550 2,167,290 1,359,740 Miscellaneous 1,267,640 1,214,564 1,161,963 (52,601)
Total Revenues 20,813,842 20,964,948 23,080,032 2,115,084
EXPENDITURES
Current:
Legislative 1,038,996 1,062,522 921,436 141,086
Administrative Services 3,558,909 3,399,782 2,936,167 463,615 Community Development 3,050,030 3,120,841 2,519,134 601,707 Public Works 2,331,454 2,471,625 1,634,486 837,139
Law Enforcement 7,219,915 7,235,260 5,534,807 1,700,453 Recreation 1,104,342 1,136,922 1,034,181 102,741
Capital outlay 120,000 165,000 150,338 14,662
Total Expenditures 18,423,646 18,591,952 14,730,549 3,861,403
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,390,196 2,372,996 8,349,483 5,976,487
OTHER FINANCING SOURCES (USES)
Transfers in 1,557 1,557
Transfers (out) (2,095,831) (2,095,831) (2,115,070) (19,239) Proceeds from sale of property 922,581 934,301 11,720
Total Other Financing Sources (Uses) (2,095,831) (1,173,250) (1,179,212) (5,962) NET CHANGE IN FUND BALANCES $294,365 $1,199,746 7,170,271 $5,970,525 Fund balance at beginning of year 25,741,766
Fund balance at end of year $32,912,037
See accompanying notes to financial statements
27 217
CITY OF OAKLEY
LIGHTING AND LANDSCAPING DISTRICTS SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Other taxes $833,000 $833,000 $971,409 $138,409
Special assessments 4,884,331 4,884,331 4,932,765 48,434 Use of money and property 31,500 31,500 657,212 625,712 Miscellaneous 2,500 2,500
Total Revenues 5,748,831 5,748,831 6,563,886 815,055
EXPENDITURES
Current:
Public Works 5,763,082 5,788,082 4,969,982 818,100
Capital outlay 560,000 560,000 269,784 290,216
Debt service:
Interest and fiscal charges 3,084 (3,084)
Total Expenditures 6,323,082 6,348,082 5,242,850 1,105,232
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (574,251) (599,251) 1,321,036 1,920,287
OTHER FINANCING SOURCES (USES)
Transfers in 205,831 205,831 200,884 (4,947)
Total Other Financing Sources (Uses) 205,831 205,831 200,884 (4,947) NET CHANGE IN FUND BALANCES ($368,420) ($393,420) 1,521,920 $1,915,340 Fund balance at beginning of year 12,958,926
Fund balance at end of year $14,480,846
See accompanying notes to financial statements
28 218
CITY OF OAKLEY
PUBLIC PROTECTION SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Intergovernmental $165,700 $165,700 $186,159 $20,459
Special assessments 7,250,000 7,250,000 7,732,158 482,158 Use of money and property 54,285 54,285
Total Revenues 7,415,700 7,415,700 7,972,602 556,902
EXPENDITURES
Current:
Law Enforcement 7,416,400 7,416,400 7,972,602 (556,202) Total Expenditures 7,416,400 7,416,400 7,972,602 (556,202) NET CHANGE IN FUND BALANCES ($700) ($700) $700
Fund balance at beginning of year
Fund balance at end of year
See accompanying notes to financial statements
29 219
CITY OF OAKLEY
LOW AND MODERATE INCOME HOUSING ASSET SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance
Original Amended Positive
Budget Budget Actual (Negative)
REVENUES
Loan repayment $10,000 $10,000 $6,068 ($3,932)
Use of money and property 37,457 37,457
Total Revenues 10,000 10,000 43,525 33,525
EXPENDITURES
Current:
Housing programs 3,419 (3,419)
Debt service:
Interest 10,000 10,000 47,120 (37,120)
Total Expenditures 10,000 10,000 50,539 (40,539)
NET CHANGE IN FUND BALANCES (7,014) ($7,014)
Fund balance (deficit) at beginning of year (821,147)
Fund balance (deficit) at end of year ($828,161)
See accompanying notes to financial statements
30 220
PROPRIETARY FUNDS
INTERNAL SERVICE FUNDS
Internal service funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services to other City funds be financed through user fees to those funds.
The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of the internal service fund is eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position. 31 221
CITY OF OAKLEY
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2024
Governmental
Activities -
Internal Service
Funds
ASSETS
Current:
Cash and investments available for operations (Note 3) $2,140,753 Receivables:
Interest 11,002
Total Current Assets 2,151,755
Noncurrent:
Capital assets (Note 7):
Depreciable, net 6,536,049
Total noncurrent Assets 6,536,049
Total Assets 8,687,804
LIABILITIES
Current:
Accounts payable 148,964
Accrued liabilities 1,604
Total Liabilities 150,568
NET POSITION (Note 10)
Investment in capital assets 6,536,049
Unrestricted 2,001,187
Total Net Position $8,537,236
See accompanying notes to financial statements
32 222
CITY OF OAKLEY
PROPRIETARY FUNDS
STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
Governmental
Activities -
Internal Service
Funds
OPERATING REVENUES
Charges for services $872,176
Total Operating Revenues 872,176
OPERATING EXPENSES
Supplies 259,018
Depreciation 737,524
Total Operating Expenses 996,542
Operating Income (Loss) (124,366)
NONOPERATING REVENUES (EXPENSES)
Gain (loss) on sale of capital assets (4,801)
Interest income 93,852
Total Nonoperating Revenues 89,051
Income (Loss) Before Contributions and Transfers (35,315) Contributions 473,877
Capital assets contributed to governmental activities (117,791) Change in net position 320,771
BEGINNING NET POSITION 8,216,465
ENDING NET POSITION $8,537,236
See accompanying notes to financial statements
33 223
CITY OF OAKLEY
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
Governmental
Activities -
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $872,176
Payments to suppliers (259,029)
Cash Flows from Operating Activities 613,147
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES
Capital assets purchased and contributed to governmental activities (117,791) Acquisition of capital assets (362,948)
Cash Flows from Capital Financing Activities (480,739)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 86,437
Net Cash Flows 218,845
Cash and investments at beginning of period 1,921,908
Cash and investments at end of period $2,140,753
NONCASH TRANSACTIONS
Contributions of capital assets $473,877
Retirement of capital assets ($4,801)
Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:
Operating income (loss) ($124,366)
Adjustments to reconcile operating income (loss) to cash flows from operating activities:
Depreciation 737,524
Net change in liabilities:
Accounts payable (1,175)
Accrued liabilities 1,164
Cash Flows from Operating Activities $613,147
See accompanying notes to financial statements
34 224
FIDUCIARY FUNDS
FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
Successor Agency to the Redevelopment Agency Private Purpose Trust Fund is used to account for the activities of the Successor Agency to the former Redevelopment Agency of the City of Oakley.
Custodial Funds are used to report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.
35 225
CITY OF OAKLEY
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
Successor Agency
to the
Redevelopment Agency
Private Purpose Custodial
Trust Fund Funds
ASSETS
Cash and investments (Note 3 and 18) $1,608,905 $4,976,652 Cash and investments with fiscal agent (Note 3 and 18) 2,961 542,819 Accounts receivable 2,000 8
Interest receivable 5,956 13,011
Loans receivable (Note 18B) 575,762
Total Assets 2,195,584 5,532,490
LIABILITIES
Accounts payable 1,099,747
Interest payable 247,940
Due to other agencies 920,340
Long-term debt (Note 18C):
Due within one year 955,000
Due in more than one year 20,576,259
Total Liabilities 21,779,199 2,020,087
NET POSITION (DEFICIT)
Restricted for:
Held in Trust for private purpose (19,583,615)
Bondholders 3,512,403
Total Net Position (Deficit) ($19,583,615) $3,512,403
See accompanying notes to financial statements
36 226
Successor Agency
to the
Redevelopment Agency
Private-Purpose Custodial
Trust Fund Funds
ADDITIONS
Property taxes $2,085,169
Special assessments $2,713,634
Use of money and property 77,662 128,898
Total Additions 2,162,831 2,842,532
DEDUCTIONS
Administrative expenses 31,792
Redevelopment and economic development 250,000
Payments to bondholders and related fiscal charges 1,540,053 Payments to other agencies 773,152
Debt service:
Interest and fiscal charges 799,306
Total Deductions 1,049,306 2,344,997
Change in Net Position 1,113,525 497,535
NET POSITION (DEFICIT) HELD IN TRUST FOR SUCCESSOR
AGENCY AND OTHER GOVERNMENTS
Beginning of year (20,697,140) 3,014,868
End of year ($19,583,615) $3,512,403
CITY OF OAKLEY
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
See accompanying notes to financial statements
37 227
This Page Left Intentionally Blank
228
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Oakley was incorporated as a general law city on July 1, 1999. Oakley is a community of approximately 46,500 residents situated in Contra Costa County on the east side of San Francisco Bay.
Oakley is located approximately 50 miles east of the City of San Francisco. The City operates under the Council-Manager form of government and provides the following services: law enforcement, highways and streets, public improvements, planning and zoning, recreation, and general administration services.
The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below:
A. Reporting Entity
The City is governed by a five member council elected by City residents. The City is legally separate and fiscally independent which means it can issue debt, set and modify budgets and fees and sue or be sued.
The accompanying basic financial statements include only the financial activities of the City and the Oakley Public Financing Authority, which is a component unit controlled by and dependent on the City.
The Authority is included (“blended”) with funds of the City since it is governed by the City Council sitting in a separate capacity.
The Oakley Public Financing Authority is a separate governmental entity whose purpose is to assist in the financing and refinancing of certain redevelopment activities of the former Redevelopment Agency and certain programs and projects of the City. The Authority’s activities to date consist only of the purchase and resale of City or Redevelopment Agency debt issues, and the issuance of the 2004-1 Limited Obligation Bonds, the 2006-1 Infrastructure Revenue Bonds, the 2006 Certificates of Participation and the Refunding Revenue Bonds, Series 2012, the Refunding Revenue Bonds, Series 2014, and the 2016 Lease Revenue Bonds. Separate financial statements are not issued for the Oakley Public Financing Authority.
B. Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.
Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 39 229
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Financial Statements: The fund financial statements provide information about the City's funds, including blended component units. The emphasis of fund financial statements is on major individual governmental funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.
C. Major Funds
Major governmental funds are identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund-type.
Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Revenues deposited in the General Fund include property tax, sales tax, franchise fees, business licenses, fines and forfeitures and fees for services. This fund is used to account for most of the City’s basic services including Legislative, General Administration, Law Enforcement, Recreation and Community Development.
Lighting and Landscaping Districts Special Revenue Fund – This fund accounts for assessments made upon parcels of land within the Lighting and Landscaping Zones #1, #2 and #3 and their use in accordance with the provisions of the State of California Streets and Highway Code.
Public Protection Special Revenue Fund – This fund accounts for dedicated Police Services Special Taxes and State COPS program funds.
Low and Moderate Income Housing Asset Special Revenue Fund – This fund accounts for the housing assets of the former Oakley Redevelopment Agency and loan repayments restricted to low and moderate income housing projects.
ARPA Special Revenue Fund – This fund accounts for American Rescue Plan Act funding. The City is allowed to claim $10 million of the funds as an economic loss, which can be used to provide government services. The remaining $177,190 is being claimed as a partial reimbursement for special COVID-19 sick leave that the City’s General Fund has paid out during the pandemic.
Traffic Impact Fees Capital Projects Fund – This fund accounts for fees assessed on new development to provide street and road improvements.
40 230
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City also reports the following fund types:
Internal Service Funds – The funds account for equipment replacement and capital facilities maintenance and replacement; all of which are provided to City departments on a cost reimbursement basis.
Fiduciary Funds – These funds are used to account for assets held by the City as an agent or trustee for individuals, private organizations, and other governments. The Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund accounts for the accumulation of resources to be used for payments at appropriate amounts and times in the future. Custodial funds are used to account for assets held by the City for the Assessment Districts 2004-1 and 2006-1, assets held on behalf of the County for regional mitigation fees and on behalf of other agencies for other purposes. The financial activities of these funds are excluded from the City-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
D. Basis of Accounting
The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, including lease liabilities, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions, including entering into contracts giving the City the right to use leased assets and right-to-use subscription assets, are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and financing through leases are reported as other financing sources.
Those revenues susceptible to accrual are sales tax, transfer tax, fines, interest revenue and gross receipts taxes. Charges for services, and licenses and permits are not susceptible to accrual because they are not measurable until received in cash.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The City may fund programs with a combination of cost-reimbursement grants, categorical block grants, special purpose revenues and general purpose revenues. While both restricted and unrestricted Net Position may be available to finance program expenditures the City’s policy is to first apply restricted purpose revenues to such programs, followed by general purpose revenues if necessary.
Certain indirect costs are included in program expenses reported for individual functions and activities. 41 231
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of net position or balance sheet report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets 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. The City has only one item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet.
The governmental funds report unavailable revenues from four sources: accounts receivable, interest on interfund advances, loans receivable and leases receivable. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
F. Accounts Receivable
Receivables at June 30, 2024 were comprised of the following:
Inter- Total
Governmental Activities: Taxes Accounts Governmental Receivables General Fund $1,335,160 $6,735 $15,519 $1,357,414
Lighting and Landscaping Districts
Special Revenue Fund 19 19
Traffic Impact Fees Capital Projects Fund 1,000 1,000
Non-Major Governmental Funds 109,491 1,325,266 1,434,757 Total $1,335,160 $116,245 $1,341,785 $2,793,190
G. Property Taxes and Special Assessment Revenue
Revenue is recognized in the fiscal year for which the tax and assessment is levied. The County of Contra Costa levies, bills and collects property taxes and special assessments for the City; under the County’s “Teeter Plan” the County remits the entire amount levied for secured taxes and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.
Secured property tax is due in two installments, on November 1 and February 1 and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31.
The term “unsecured” refers to taxes on personal property other than real estate, land and buildings.
These taxes are secured by liens on the personal property being taxed. Secured and unsecured property tax revenues are recognized by the City in the fiscal year they are assessed, provided they become available as defined above.
42 232
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Compensated Absences
Compensated absences comprise unpaid vacation and certain compensated time off, which are accrued as earned. For all governmental funds, amounts expected to be paid out for permanent liquidation are recorded as fund liabilities; the long-term portion is recorded in the Statement of Net Position.
The liability for compensated absences is determined annually. The changes in the compensated absences were as follows:
Governmental
Activities
Beginning Balance $1,873,943
Additions 854,293
Payments and Reductions (1,064,078)
Ending Balance $1,664,158
Current Portion $332,832
Included in the payments and reductions is the effect of the change in the City’s policy of paying employees 50% of sick leave at retirement for those with 5 years of service to those with at least 10 years of service. This change in policy resulted in a reduction in the overall compensated absences balance.
The long-term portion of governmental activities compensated absences is liquidated primarily by the General Fund.
I. Prepaids and Deposits
Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
Prepaids and deposits in governmental funds are equally offset by nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net current assets.
43 233
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J. Fair Value Measurements
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 between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
K. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
L. Cash and Cash Equivalents
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
M. New, Closed, Reactivated and Renamed Funds
The City established the following funds:
• The Fire Protection District Custodial Fund was established to account for impact fees from development and submitted to the District.
• The Reclamation District #799 (CFD 2022-2) Custodial Fund was established to account for impact fees from development and submitted to the District.
The OTS Police Grants Special Revenue Fund had been closed as of July 1, 2022, but was reopened during the year ended June 30, 2024.
The Opioid Remediation Special Revenue Fund was closed as of June 30, 2024.
The General Agency Custodial Fund was renamed as the General Custodial Fund during the year ended June 30, 2024.
44 234
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING
A. Budget Policy
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.
2. Work sessions are conducted to obtain citizen’s comments.
3. The budget is legally enacted by City Council resolution.
4. All appropriations transfers between funds must be approved by the City Council by resolution during the fiscal year. The City Manager is authorized to transfer unencumbered appropriations within a fund. In addition, amendments that are made to authorize spending of increased or new special purpose revenues may be approved by the City Manager. The legally adopted budget requires that expenditures not exceed total appropriations at the fund level.
5. Budgets are adopted for all Governmental Funds, except the Fire Impact Fees Special Revenue Fund, as well as the 2006-1 Assessment District Capital Projects Fund, which is governed by bond convents. In addition, the ARPA Special Revenue Fund is budgeted on a project length basis and therefore is not comparable on an annual basis.
6. Formal budgetary integration is employed as a management control device during the year for all budgeted funds.
7. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
8. Budgeted amounts appearing in the budgetary comparison statements are as originally adopted or as amended by the City Council or the City Manager, as authorized.
B. Encumbrances
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all budgeted funds.
Unexpended operating appropriations lapse at year end and must be reappropriated in the following year.
Unexpended capital projects appropriations are automatically reappropriated in the following year.
Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities.
45 235
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING (Continued)
C. Expenditures in Excess of Appropriations
The following funds incurred expenditures in excess of appropriations:
Fund
Excess of
Expenditures Over
Appropriations
Public Protection Special Revenue Fund $556,202
Low and Moderate Income Housing Asset Special Revenue Fund 40,539 Developer Deposits Special Revenue Fund 86,308
Opioid Remediation Special Revenue Fund 5,943
The funds had sufficient revenues or other resources to finance these expenditures.
46 236
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 3 – CASH AND INVESTMENTS
The City pools cash from all sources and all funds, except cash of the Successor Agency and cash with fiscal agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time.
A. Policies
The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by the City’s fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.
The City’s investments are carried at fair value, as required by generally accepted accounting principles.
The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B. Classification
Cash and investments are classified in the financial statements as shown below:
City cash and investments:
Cash and investments available for operations $96,428,525 Cash and investments with fiscal agent 1,733,001
Total City Cash and Investments 98,161,526
Cash and investments in Fiduciary Funds (Separate Statement):
Successor Agency to the Redevelopment
Agency Private Purpose Trust Fund:
Cash available for operations 1,608,905
Cash and investments with fiscal agent 2,961
Custodial Funds:
Cash and investments available for operations 4,976,652 Cash and investments with fiscal agent 542,819
Total Cash and Investments $105,292,863
47 237
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 3 – CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the City’s Investment Policy:
Authorized Investment Type
Maximum
Maturity
Minimum
Credit
Quality
Maximum
Percentage
of Portfolio
Maximum
Investment
In One Issuer
Local Agency Bonds 5 years No Limit 5%
U.S. Treasury Obligations 5 years No Limit No Limit
State Obligations-California and Others 5 years A No Limit 5%
California Local Agency Obligations 5 years A No Limit 5%
U.S. Agency/Government Sponsored Obligations 5 years No Limit No Limit
Bankers Acceptances 180 days 40% 5%
Commercial Paper – Non-Pooled Funds 270 days A-1 25% 5%
Commercial Paper – Pooled Funds 270 days A-1 40% 5%
Negotiable Certificates of Deposit 5 years A 30% No Limit
Placement Service Certificates of Deposit 5 years FDIC or NCUA Coverage
50% No Limit
Non-negotiable Certificates of Deposit 5 years No Limit No Limit Medium-Term Corporate Notes 5 years A 30% 5%
Money Market Mutual Funds and Mutual Funds N/A AAA 20%/(10% per fund)
No Limit
Asset-Backed Securities 5 years AA 20% No Limit
California Local Agency Investment Fund N/A No Limit $75 million per account
Shares of beneficial interest in a Joint Powers
Authority (e.g. Investment Trust of California
(CalTrust) or California Asset Management Program
(CAMP)
N/A No Limit No Limit
Supranational Obligations 5 years AA 30% No Limit
48 238
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 3 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and Successor Agency must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used 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 resolutions, bond indentures or State statutes. The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:
Authorized Investment Type
Maximum
Maturity
Minimum
Credit
Quality
U.S. Government Securities N/A Aaa/AAA
U.S. Government Agency Securities N/A N/A
Local Agency Investment Fund N/A $75 million per
account
Bankers Acceptances 360 days A1/A1+/P1
Commercial Paper 270 days A-1+/P-1
Money Market Funds N/A A/AAAm/AAAm
Municipal Obligations N/A Aaa/AAA
Pre-refunded Municipal Obligations N/A Highest
General Obligations N/A A2/A
Investment Agreements/Contracts N/A A
Repurchase Agreements N/A N/A
Investments fully insured by the FDIC N/A N/A
Tax-exempt Obligations N/A Highest Rating
Short term Certificates of Deposit 360 days A1/A1+/P1
Certificates of Deposit N/A A
California Asset Management Program N/A N/A
Shares in a California Common Law Trust N/A N/A
E. Public Agencies Post-Employment Trust
On June 29, 2017, the City Council adopted resolution 86-17 approving the adoption of the Public Agencies Post-Employment Trust administered by Public Agency Retirement Services (PARS). The Trust is an irrevocable trust and qualifies as an Internal Revenue Section 115 trust. This trust will assist the City in mitigating the CalPERS contribution rate volatility. Investments of funds held in Trust are governed by the Investment Guideline Document for the investment account and by the agreement for administrative services with PARS, rather than the general provisions of the California Government Code or the City’s investment policy. The City elected a discretionary investment approach which allows the City to maintain oversight of the investment management, control on target yield and the portfolio’ risk tolerance, under the Balanced Index PLUS investment option. The assets in the Trust will eventually be used to fund pension plan obligations.
49 239
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 3 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk and Fair Value Hierarchy
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the distribution of the City’s investments by maturity or earliest call date:
Less Than One to
Investment Type One Year Five Years Total
Cash and Investments in City Treasury:
U.S. Treasury Notes $6,822,504 $19,399,944 $26,222,448
Medium Term Corporate Notes 2,674,492 1,182,761 3,857,253 Local Agency Investment Fund 9,844,288 9,844,288
Money Market Funds 1,899,773 1,899,773
Capital Asset Management Program 56,122,230 56,122,230
CalTRUST 296,076 296,076
Held by Fiscal Agents:
Capital Asset Management Program
PARS Balanced Index PLUS 1,165,247 1,165,247
Money Market Funds 1,113,534 1,113,534
Total Investments $79,938,144 $20,582,705 100,520,849
Cash deposits in banks 4,772,014
Total Cash and Investments $105,292,863
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75 million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. On June 30, 2024, these investments matured in an average of 217 days.
50 240
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 3 – CASH AND INVESTMENTS (Continued)
The City is a participant in the Short-Term Fund of the Investment Trust of California (CalTRUST), a joint powers authority and public agency established by its members under the provisions of Section 6509.7 of the California Government Code. Members and participants are limited to California public agencies. CalTRUST is governed by a Board of Trustees of seven Trustees, at least seventy-five percent of whom are from the participating agencies. The City reports its investment in CalTRUST at the fair value amount provided by CalTRUST, which is the same as the value of the pool shares. The balance is available for withdrawal on demand, and is based on the accounting records maintained by CalTRUST. Included in CalTRUST’s investment portfolio are: United States Treasury Notes, Bills, Bonds or Certificates of Indebtedness; registered state warrants or treasury notes or bonds; California local agency bonds, notes, warrants or other indebtedness; federal agency or United States governmentsponsored enterprise obligations; bankers acceptances; commercial paper; negotiable certificates of deposit; repurchase agreements; medium-term notes; money market mutual funds; notes, bonds or other obligation secured by a first priority security interest in securities authorized under Government Code Section 53651; and mortgage passthrough securities, collateralized mortgage obligations, and other asset – backed securities.
CalTRUST’s Short-Term Fund has a target portfolio duration of 0 to 2 years. On June 30, 2024, these investments matured in an average of 310 days. The investment in CalTRUST, classified in Level 2 of the fair value hierarchy, is valued based on the fair value factor provided by the CalTRUST, which is calculated as the average cost to net asset value per share of the Short-Term Fund. At June 30, 2024, the fair value approximated the City’s cost.
The City, as a CAMP shareholder, may withdraw all or any portion of the funds in each CAMP account at any time by redeeming shares. The CAMP Declaration of Trust permits the CAMP trustee to suspend the right of withdrawal from CAMP or to postpone the date of payment of redemption proceeds if the New York Stock Exchange is closed other than for customary weekend and holiday closings, if trading on the New York Stock Exchange is restricted, or if, in the opinion of the CAMP trustees, an emergency exists such that disposal of the CAMP pool securities or determination of its net asset value is not reasonably practicable. If the right of withdrawal is suspended, the City may either withdraw its request for that withdrawal or receive payment based on the net asset value of the CAMP pool next determined after termination of the suspension of the right of withdrawal. At June 30, 2024, the fair value approximated the City’s cost. At June 30, 2024, these investments have an average maturity of 38 days.
Money market funds are available for withdrawal on demand and at June 30, 2024 matured in an average of 37 days.
51 241
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 3 – CASH AND INVESTMENTS (Continued)
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of June 30, 2024 for each investment type as provided by Standard and Poor’s investment rating system.
Investment Type AAA/AAAm AA+/AA/AA- A+/A/A- BBB+ (A) Total Cash and Investments in City Treasury:
Medium Term Corporate Notes $1,266,899 $2,380,320 $210,034 $3,857,253 Capital Asset Management Program $56,122,230 56,122,230 CalTRUST 296,076 296,076
Money Market Funds 1,899,773 1,899,773
Held by Fiscal Agents:
Money Market Funds 1,113,534 1,113,534
Total Rated Investments $59,135,537 $1,562,975 $2,380,320 $210,034 63,288,866 Local Agency Investment Fund 9,844,288
PARS Balanced Index PLUS 1,165,247
Exempt:
U.S. Treasury Notes 26,222,448
Total Investments $100,520,849
(A) Investment is rated A3 by Moody's Investment Ratings Service Not Rated:
52 242
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 3 – CASH AND INVESTMENTS (Continued)
H. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2024:
Investments Investments
Measured at Measured at
Investment Type Level 1 Level 2 Net Asset Value Amortized Cost Total Cash and Investments in City Treasury:
U.S. Treasury Notes $26,222,448 $26,222,448
Medium Term Corporate Notes $3,857,253 3,857,253
Capital Asset Management Program $56,122,230 56,122,230 CalTRUST $296,076 296,076
Money Market Funds 1,899,773 1,899,773
Held by Fiscal Agents:
PARS Balanced Index PLUS 1,165,247 1,165,247
Money Market Funds 1,113,534 1,113,534
Total Investments $26,222,448 $3,857,253 $1,461,323 $59,135,537 90,676,561 Investments Exempt from Fair Value Hierarchy:
Local Agency Investment Fund 9,844,288
Total Investments $100,520,849
Investments classified in Level 1 of the fair value hierarchy were valued using quoted prices in active markets. All investments classified in Level 2 of the fair value hierarchy were valued using matrix pricing techniques maintained by various pricing vendors. These prices were obtained from various pricing sources from our custodian bank. The California Local Agency Investment Fund is exempt from classification in the fair value hierarchy. Fair value is defined as the quoted market value on the last trading day of the period.
I. Concentration of Credit Risk
At June 30, 2024, City had no significant investments in the securities of any individual issuers, other than U. S. Treasury securities, investment pools and money market funds. 53 243
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 4 – INTERFUND TRANSACTIONS
A. Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. Transfers are used:
to move revenue from the fund that statute or budget requires to collect the item to the fund that statute or budget requires to expend the item; distribute unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations; to segregate money for anticipated capital projects; and to provide additional resources for current operations or debt service.
Transfers between Funds during the fiscal year ended June 30, 2024 and the purpose for each were as follows:
Transfer
Fund Receiving Transfer Fund Making Transfers Amount
General Fund Non-Major Governmental Funds $1,557 (A)
Lighting and Landscaping Districts Special Revenue Fund General Fund 15,831 (B) Non-Major Governmental Fund 185,053 (B)
Non-Major Governmental Funds General Fund 2,099,239 (B) Non-Major Governmental Funds 887,554 (B),(C)
Total Interfund Transfers $3,189,234
(A) To close fund.
(B) To fund capital projects and administration.
(C) To fund debt service.
54 244
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 4 – INTERFUND TRANSACTIONS (Continued)
B. Long-Term Interfund Advances
At June 30, 2024, the funds below had made advances which were not expected to be repaid within the next year. The balances in the funds with the advance to other funds are offset by deferred inflow, or nonspendable or restricted fund balance.
Advanced
Advances to Other Funds Advances from Other Funds Amount General Fund Lighting and Landscaping Districts Special Revenue Fund $78,532 Traffic Impact Fees Capital Projects Fund Low and Moderate Income Housing Asset Special Revenue Fund 630,216 Non-Major Governmental Funds Low and Moderate Income Housing Asset Special Revenue Fund 616,797 Total Interfund Advances $1,325,545
Since the City’s formation in 1999, the General Fund has, on occasion, made advances to the Lighting and Landscaping Districts Special Revenue Fund to cure operating deficits in two of the Landscaping Districts. The advances bear interest at the City’s investment pool rate. The balance of these advances totaled $78,532 at June 30, 2024.
The Traffic Impact Fees Capital Projects Fund, Park Impact Fees Capital Projects Fund, and Public Facilities Impact Fees Capital Projects Fund agreed to accept deferred payment of impact fees by the former Redevelopment Agency to assist with the Courtyards at Cypress Grove affordable housing project.
Although no cash was advanced, these obligations were recorded as advances to the former Redevelopment Agency. The City’s Low and Moderate Income Housing Asset Special Revenue Fund, as Housing Successor to the former Redevelopment Agency’s housing activities, assumed the obligation to repay the advances, which will be repaid from future loan collections. The advances bear interest at the City’s annual pooled investment rate which was of 3.927% for fiscal year 2024. The balance outstanding at June 30, 2024 was $1,247,013.
C. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after at the end of the fiscal year. The following funds owed the General Fund as of June 30, 2024:
Special Revenue Funds:
Public Protection $9,322
NPDES 104,865
Creekside Park Restoration Grant 1,854
OTS Police Grants 24,800
Capital Projects Funds:
Measure J 23,459
Cypress Grove 56,031
Total $220,331
55 245
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 5 – LOANS RECEIVABLE
A. Low and Moderate Income Housing and City Loans Receivable The former Redevelopment Agency engaged in programs designed to encourage construction of or improvement in low-to-moderate income housing. Under these programs, grants or loans were provided under favorable terms to homeowners or developers who agreed to expend these funds in accordance with the Agency’s terms. With the dissolution of the Redevelopment Agency as discussed in Note 18, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result the Low and Moderate Income Housing Asset Fund assumed the loans receivable of the Redevelopment Agency’s Low and Moderate Income Housing Fund. In addition, the City has made loans to certain employees and to local businesses for economic development. Although these loans and notes are expected to be repaid in full, their balance has been offset by unavailable revenue or nonspendable fund balance. The balances of the loans receivable, including accrued interest, on June 30, 2024 are set forth below:
Golden Oak Manor $1,290,948
Silver Oak Apartments 669,794
Oakley Senior Housing 607,142
Oakley Cypress Associates 3,893,750
Carol Lane 5,866,998
First Time Homebuyer 123,576
New Lifeline Ministries 14,467
Downtown Revitalization Loan Program 85,150
Total $12,551,825
B. Golden Oak Manor
Under the terms of a Loan Agreement dated December 19, 1994 between the Redevelopment Agency and the Developer, Golden Oak Manor, L.P., the Agency loaned the amount of $780,000 to construct 50 senior residential rental units, with 24 of the units being restricted to very low income households. The loan is secured by a deed of trust on the property, is due in 2054 and bears simple annual interest of 3 percent. Interest and principal are deferred for 60 years or upon transfer of the property to an unqualified entity. Any unpaid amounts are considered deferred; all deferred principal and interest is due when the note matures. During fiscal year 2017, the loan was assigned and transferred from Golden Oak Manor, L.P., to Golden Oak Manor II, L.P.
C. Silver Oak Apartments
Under the terms of a Loan Agreement dated May 1, 1998 between the Redevelopment Agency and the Developer, Ecumenical Association for Housing, the Agency loaned $374,220 along with an additional $99,206 in January 1999, for a total loan amount of $473,426, to fund the construction of 24 affordable housing units. The loan is secured by a deed of trust on the property, is due in 2058 and bears simple annual interest of 3 percent with principal and interest due annually to the extent there is “residual receipts” as defined in the agreement. Any unpaid amounts are considered deferred; all deferred principal and interest is due when the note matures.
56 246
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 5 – LOANS RECEIVABLE (Continued)
D. Oakley Senior Housing
Under the terms of a Loan Agreement dated February 8, 2000 between the Redevelopment Agency and the Developer, Oakley Senior Associates, L.P., the Agency loaned the amount of $1,800,000 to fund the acquisition and development costs to construct eighty units of affordable housing for low and moderate income seniors. The loan is secured by a deed of trust on the property, is due in 55 years from the issuance of the certificate of completion, but not later than 2058, and bears simple annual interest of 3 percent, with principal and interest due annually to the extent there is “residual receipts” as defined in the agreement. Any unpaid amounts are considered deferred; all deferred principal and interest is due when the note matures. The Agency received a payment of $547,000 from the developer during fiscal year 2002. A portion of the loan had been funded by the Redevelopment Agency Projects Fund, and with the dissolution of the Agency effective February 1, 2012, the assets of the Redevelopment Agency Projects Fund, including a portion of the Oakley Senior Housing loan in the amount of $623,082, were assumed by the Successor Agency as discussed in Note 18. In July 2022, the Successor Agency agreed to subordinate its loan to the primary lender on the project, which puts the Successor Agency’s loan in the second position.
E. Oakley Cypress Associates
Under the terms of the Loan Agreement dated December 1, 2005, the former Redevelopment Agency loaned $2.5 million to Oakley Cypress Associates to assist in the development of 96 affordable housing units. The loan is secured by a deed of trust on the property and bears simple interest of 3 percent annually. Principal and interest payments are due annually to the extent that Oakley Cypress Associates has “residual receipts” as defined in the agreement. The remaining balance of unpaid principal and accrued interest is due fifty-five years after the issuance of the certificate of completion, but no later than December 1, 2063.
F. Carol Lane
Under the terms of a Loan Agreement dated February 23, 2007 between the Redevelopment Agency and the Developer, 59 Carol Lane, L.P., the Agency loaned the amount of $3,858,753 to fund the acquisition and development costs to construct two hundred and eight units of senior and family affordable housing for low and very-low income households. The loan is secured by a deed of trust on the property, is due in 55 years from the issuance of the certificate of completion, but not later than 2062, and bears simple interest of 3 percent annually, with principal and interest due annually to the extent there are “residual receipts” as defined in the agreement. Any unpaid amounts are considered deferred; all deferred principal and interest is due when the note matures.
G. First-Time Homebuyer Program
The Redevelopment Agency administered a First-Time Homebuyers Program funded by Bond proceeds in the amount of $512,392 in 1994, under which low and moderate income individuals may qualify for first-time home buyer deferred second mortgages to purchase homes in the Oakley area. The individual loans are 30-year fixed rate deferred loans, bearing interest at a rate equal to two percent below the Lender’s rate and do not exceed $50,000. These loans are due thirty years from the date of issuance, but principal and accrued interest will be forgiven at maturity if the unit was owner occupied for the full thirty years. Under the terms of the Program, loans must be repaid in full if the property is sold to a nonqualified buyer.
57 247
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 5 – LOANS RECEIVABLE (Continued)
H. New Lifeline Ministries
The City installed frontage improvements that are to be paid by the property owner, New Lifeline Ministries. Under the terms of a June 2015 reimbursement agreement, New Lifeline Ministries agreed to reimburse the City for its costs incurred in the amount of $36,165. The loan is unsecured, bears interest of 1% and is repayable in equal monthly installments over 15 years. The balance of the loan as of June 30, 2024 was $14,467.
I. Revitalization Loan Program
In 2014, the City Council approved funds to be allocated for the Downtown Revitalization Loan Program. The goal of the Loan Program is to leverage public funds and private investment to further enhance the physical appearance and economic vitality of the commercial buildings and businesses in the downtown corridor. The long-term objectives of the program include improving the physical appearance of the buildings and area, encouraging the retention and attraction of businesses to the corridor, increasing property values, increasing tenant stability, increasing pedestrian walkability and creating a stronger “sense of place”. Loan funds under the program can be used for façade improvements, landscaping and exterior lighting, signage, ADA compliance, building infrastructure upgrades needed for new tenant conversion and demolition. The loan program requires that the applicant contribute minimum equity of 10% of the total projects.
The loans under this program are secured by a promissory note and a personal guarantee, as well as UCC filings on all equipment purchased by the loan. 50% of the loan, or $37,500, of the loan can be assumed and prepaid with no prepayment penalty, but is due and payable if the business is sold. The balance of the loan was $85,150 as of June 30, 2024.
NOTE 6 – LAND HELD FOR RESALE
The City has purchased parcels that are expected to be resold in the near future. Such land parcels are accounted for at the lower of cost or net realizable value or agreed-upon sales price if a disposition agreement has been made with a developer.
The balance of land held for resale in the General Fund at June 30, 2024 was $3,324,182.
58 248
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 7 – CAPITAL ASSETS
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available, except for intangible right to use subscription assets, the measurement of which is described in Note 15 below. Contributed capital assets are valued at their estimated acquisition value on the date contributed.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose 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.
Depreciation is provided using the half-year convention method which is like the straight-line method in that the cost of the asset is divided by its expected useful life in years, but the asset is depreciated over 6 months instead over one year in its first year. The result is charged to expense each year until the asset is fully depreciated. The capitalization threshold for equipment with a cost of $5,000 or more and a useful life of more than two years, and for all buildings, improvements and infrastructure with a cost of $50,000 or more and a useful life of more than two years. The City has assigned the useful lives listed below to capital assets:
Buildings 40 years
Improvements 5-15 years
Machinery and Equipment 5 years
Vehicles 5 years
Roadways:
Streets (includes pavement, sidewalk,
curb & gutters, trees & signs)
7-40 years
Traffic Signals 25 years
Street Lights 40 years
Bridges 100 years
Parks and Recreation:
General Improvement 25 years
Specialty Features 10 years
Major outlays for capital assets and improvements are capitalized as projects are constructed. 59 249
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 7 – CAPITAL ASSETS (Continued)
A. Capital Assets Additions and Retirements
Capital asset balances comprise the following:
Balance as of Balance as of
June 30, 2023 Additions Retirements Transfers June 30, 2024 Governmental Activities:
Capital assets not being depreciated:
Land $18,535,225 $530,331 ($636,487) $18,429,069
Construction in Progress 11,585,659 14,602,539 ($20,782,243) 5,405,955 Subscription in Progress 182,442 182,442
Total capital assets not being depreciated 30,120,884 15,315,312 (636,487) (20,782,243) 24,017,466 Capital assets being depreciated:
Buildings and Improvements 33,285,355 915,288 (2,009,572) 2,471,140 34,662,211 Machinery and Equipment 3,327,156 205,991 3,533,147
Vehicles 2,283,145 630,834 (120,962) 2,793,017
Roadways:
Pavement 228,748,442 392,808 16,120,711 245,261,961
Sidewalks 11,952,711 93,770 12,046,481
Storm Drains 8,580,353 1,609,375 1,512,150 11,701,878
Curbs and Gutters 13,425,023 73,636 104,023 13,602,682
Traffic Signals 8,794,381 146,746 8,941,127
Regulatory Signs and Street Trees 6,126,164 53,510 6,179,674 Street Lights 4,721,508 79,325 4,800,833
Bridges 4,422,722 427,473 4,850,195
Parks and Recreation Structures 24,211,991 276,474 24,488,465 Total capital assets being depreciated 349,878,951 4,331,011 (2,130,534) 20,782,243 372,861,671 Less accumulated depreciation for:
Buildings and Improvements (8,951,241) (906,606) 320,359 (9,537,488) Machinery and Equipment (2,616,702) (217,048) (2,833,750) Vehicles (1,572,469) (265,889) 116,161 (1,722,197)
Roadways:
Pavement (101,690,196) (6,165,097) (107,855,293)
Sidewalks (3,950,052) (174,288) (4,124,340)
Storm Drains (675,595) (305,175) (980,770)
Curbs and Gutters (4,037,178) (207,568) (4,244,746)
Traffic Signals (3,052,560) (333,319) (3,385,879)
Regulatory Signs and Street Trees (2,581,552) (326,462) (2,908,014) Street Lights (1,728,125) (118,837) (1,846,962)
Bridges (1,335,089) (46,364) (1,381,453)
Parks and Recreation Structures (9,473,041) (947,206) (10,420,247) Total accumulated depreciation (141,663,800) (10,013,859) 436,520 (151,241,139) Net capital assets being depreciated 208,215,151 (5,682,848) (1,694,014) 20,782,243 221,620,532 Governmental activities capital assets, net $238,336,035 $9,632,464 ($2,330,501) $245,637,998 60 250
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 7 – CAPITAL ASSETS (Continued)
B. Capital Asset Contributions
Some capital assets may be acquired using federal and State grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.
C. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program are as follows:
Governmental Activities
Administrative Services $325,804
Public Works 8,950,531
Internal Service Funds 737,524
Total Depreciation $10,013,859
D. Subscription Asset In Process
On January 10, 2023, the City adopted a resolution approving an agreement with Tyler Technologies for the conversion from the Tyler Eden ERP System to the Tyler Enterprise ERP System. This project is being funded through the American Rescue Plan Act (ARPA) grant funding.
The total cost of the ERP conversion project is expected to be $1,034,839, which includes $405,456 in recurring annual subscription and maintenance costs over a three-year period, $30,140 in travel expenses, and the remaining costs attributed to initial conversion and implementation.
Although the project is not expected to be fully implemented until fiscal year 2026, certain startup costs have been incurred during the current fiscal year as part of the agreement, primarily related to initial setup and planning. As of June 30, 2024, the City has incurred $182,442 in expenses for system setup and preimplementation activities. These costs are classified as a subscription asset in process and will remain in process until the system is fully operational.
61 251
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 8 – LONG-TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt. The City’s long-term debt is recorded only in the government-wide financial statements.
In governmental fund types, debt discounts and issuance costs are recognized in the current period.
A. Current Year Transactions and Balances
The City’s debt issue and transaction is shown below and discussed in detail thereafter.
Original
Issue Balance Balance Current
Amount June 30, 2023 Retirements June 30, 2024 Portion
2016 Lease Revenue Bonds
2.00-5.00%, due 5/1/2041 $10,025,000 $7,915,000 ($345,000) $7,570,000 $360,000 B. 2016 Lease Revenue Bonds
On December 1, 2016, the Oakley Public Financing Authority issued the 2016 Lease Revenue Bonds in the principal amount of $10,025,000 to: (i) refinance the outstanding 2006 Certificates of Participation together with related lease payment obligations, (ii) obtain additional funds to finance the construction of a community center and related facilities (the “2016 Project”), (iii) pay the premium of a debt service reserve policy for the Bonds and (iv) pay the costs of issuing the Bonds, including the premium for the Policy. Principal is payable annually and the interest is payable semi-annually through 2041. The 2006 Certificates of Participation were called on January 14, 2017.
Under the terms of the Trust Agreement for the 2016 Lease Revenue Bonds, an event of default occurs if (i) the Authority fails to pay interest or principal on the Bonds when due and payable, (ii) the Authority fails to observe or perform in any material way any other covenant or term contained in the Trust Agreement, (iii) the Authority commences a voluntary case under Title 11 of the United States Code, or (iv) an event of default occurs under the lease entered into in connection with the Bonds (the “Lease”).
The City has pledged City Hall as collateral for the Lease payments due to the Authority.
Upon the occurrence of an event of default, the Trustee may enforce all rights of the bond owners, including without limitation the right to receive and collect the lease payments payable by the City under the Lease (the “Lease Payments”) and declare the principal and interest of all of the Bonds then outstanding to be due and payable immediately; provided, that neither the Authority nor the Trustee may accelerate the Lease Payments or otherwise declare any Lease Payments not then in default to be immediately due and payable.
The City’s failure to pay Lease Payments when due, among other items, constitutes an event of default under the Lease. Upon the occurrence of an event of default under the Lease Agreement, the Authority may exercise any and all remedies available under law or granted under the Lease and the Trustee acting at the direction of the insurer of the Bonds, has the right to re-enter and re-let City Hall and to terminate the Lease.
62 252
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 8 – LONG-TERM DEBT (Continued)
C. Debt Service Requirements
Annual debt service requirements are shown below for the City’s long-term debt:
For the Year
Ending June 30 Principal Interest
2025 $360,000 $309,769
2026 380,000 295,369
2027 395,000 280,169
2028 405,000 267,825
2029 420,000 251,624
2030 - 2034 2,185,000 982,770
2035 - 2039 2,345,000 518,492
2040 - 2041 1,080,000 67,238
$7,570,000 $2,973,256
NOTE 9 – ASSESSMENT DEBT WITH NO CITY COMMITMENT
On August 3, 2004, and July 19, 2006, the Oakley Public Financing Authority issued $17,150,000 principal amount of Revenue Bonds and $11,460,000 principal amount of Infrastructure Revenue Bonds to finance the construction and acquisition of certain public improvements within the City’s Special District Nos. 2004-1 and 2006-1, respectively. On March 3, 2012, the 2004 Bonds were refunded by the Refunding Revenue bonds, Series 2012 in the principal amount of $14,775,000. On October 15, 2014, the Oakley Public Financing Authority issued Refunding Revenue Bonds, Series 2014, in the principal amount of $9,070,000 to refund the 2006 Bonds. On July 28, 2021, the Oakley Public Financing Authority issued Refunding Revenue Bonds, Series 2021, in the principal amount of $10,496,000 to refund the 2012 Bonds.
The 2021 Bonds are secured only by revenues received as payment of assessments levied against property within Special District Nos. 2004-1 and 2006-1. Neither the faith and credit nor the general taxing power of the City of Oakley have been pledged to the payment of the Bonds. Therefore, the Bonds have been excluded from the accompanying financial statements. The outstanding balances of the 2014 and 2021 Bonds were $6,115,000 and $8,374,000, respectively, at June 30, 2024.
NOTE 10 – NET POSITION AND FUND BALANCES
Net Position is measured on the full accrual basis, while Fund Balance is measured on the modified accrual basis.
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three captions. These captions apply only to Net Position, which is determined only at the Government-wide level, and are described below:
63 253
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
Net investment in capital assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects, debt service requirements, and redevelopment funds restricted to low and moderate income purposes.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund’s cash, receivables and deferred outflows of resources, less its liabilities and deferred inflows of resources.
The City’s fund balances are classified based on spending constraints imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendable represents balances set aside to indicate items 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 fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.
Committed fund balances have constraints imposed by formal action of the City Council, such as by Resolution or Ordinance, which are equally binding, and may be altered only by the same formal action of the City Council.
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 under the Appropriations Control Policy, the City Manager. This category includes encumbrances that are not to be liquidated by restricted or committed resources; nonspendables, 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 have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
64 254
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
Detailed classifications of the City’s Fund Balances, as of June 30, 2024, are below:
Major Major Capital
Special Revenue Funds Projects Fund
Low and Mod
Lighting and Income Traffic Other
General Landscaping Public Housing Impact Governmental
Fund Balance Classifications Fund District Protection Asset ARPA Fees Funds Total Nonspendables:
Items not in spendable form:
Prepaids and deposits $1,368 $1,368
Loans receivable 85,150 85,150
Land held for resale 3,324,182 3,324,182
Advances 78,532 78,532
Leases receivable 26,229 26,229
Total Nonspendable
Fund Balances 3,515,461 3,515,461
Restricted for:
Pension benefits 1,165,247 1,165,247
Lighting and landscaping services $14,480,846 14,480,846 Traffic impact projects $13,002,589 13,002,589
Public facilities impact projects $2,401,981 2,401,981
Street maintenance and improvement 3,878,873 3,878,873
2006-1 Assessment District 701,110 701,110
Community Facilities District #1 1,168,024 1,168,024
Community Facilities District 2015-1 2,684,796 2,684,796 Community Facilities District 2020-1 73,988 73,988
Citywide Community Facilities 1,494,717 1,494,717
Agricultural conservation 7,720 7,720
Debt service 52,134 52,134
Park impact fees 6,263,876 6,263,876
Cypress Grove improvements 65,641 65,641
Regional Park 2,492,885 2,492,885
Officer wellness 452 452
Total Restricted Fund Balances 1,165,247 14,480,846 13,002,589 21,286,197 49,934,879 Assigned to:
Termination payments 300,000 300,000
Uninsured claims payable 450,000 450,000
Outlay projects 269,985 269,985
Capital projects 8,500,000 8,500,000
Unfunded pension liability 1,000,000 1,000,000
Government services $600,520 600,520
Main Street Projects 7,914,723 7,914,723
Total Assigned Fund Balances 10,519,985 600,520 7,914,723 19,035,228 Unassigned:
General Fund:
Unassigned - Emergency Reserve 8,129,231 8,129,231
Other Unassigned 9,582,113 9,582,113
Other fund deficits ($828,161) (134,049) (962,210)
Total Unassigned Fund Balances 17,711,344 (828,161) (134,049) 16,749,134 Total Fund Balances $32,912,037 $14,480,846 ($828,161) $600,520 $13,002,589 $29,066,871 $89,234,702 65 255
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
C. Minimum Fund Balance Policies
The City’s Budget Policies require the City to strive to maintain the following fund balances:
1) A minimum of 30% of the annual operating expenditures in the General Fund’s Unassigned Fund Balance for emergencies and unforeseen operating or capital needs. The primary purpose of this reserve is to protect the City’s essential service programs and funding requirements during periods of economic downturn (defined as a recession lasting two or more years) or other unforeseen catastrophic costs not covered by the annually budgeted Contingency Reserve. Should the balance in the reserve fall below the 30% threshold, a plan to restore the level over a period of no more than five years is to be included in each proposed annual budget reviewed with the City Council until the reserve has been returned to at least 30% of General Fund operating expenditures. 2) Establish an account to accumulate funds to be used for payment of accrued employee benefits for terminated employees. The accumulated amount in the reserve will equal the projected payout of accumulated benefits requiring conversion to pay on retirement for employees then eligible for retirement so there are funds to pay out accumulated benefits requiring conversion to pay on termination. The balance of the reserve was $300,000 as of June 30, 2024. 3) Claims Reserves will be budgeted at a level which, together with purchased insurance, adequately protects the City. The City will maintain a reserve of two times its deductibles for those claims covered by the insurance pool of which the City is a member (currently the Municipal Pooling Authority of Northern California). In addition, the City will perform an annual analysis of past claims not covered by the pool, and reserve an appropriate amount to pay for uncovered claims, including Labor Code Section 4850 Salary Continuation payments. The balance of the reserve was $450,000 as of June 30, 2024.
4) The City had previously established a Vehicle and Equipment Replacement Reserve Fund for the accumulation of funds for the replacement of worn and obsolete vehicles and other capital equipment. In Fiscal Year 2021/2022, the City split that fund out into the Equipment Replacement Internal Service Fund (Fund 501) and the Information Technology Internal Service Fund (Fund 503). Adequate funds will be set aside in both of these funds each year to ensure that funds are available for asset replacement at the end of the respective assets’ life cycles. As of June 30, 2024, the balance of available resources was approximately $1,064,000 in the Equipment Replacement Internal Service Fund and $387,000 in the Information Technology Internal Services Fund.
Staff has created a schedule of vehicles and computer equipment, along with their estimated lives and replacement values, and determined that the cost to replace existing vehicles is approximately $175,000 per year and the cost to replace existing computer equipment is approximately $150,000 on average, per year. The revised policy will ensure the City’s ability to replace assets when they reach the end of their useful lives.
66 256
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
5) The City will seek to build and maintain a Facilities Maintenance Capital Asset Reserve Fund for capital costs associated with the maintenance of all City building facilities. The reserve will be maintained at a level at least equal to projected five year facilities maintenance capital costs. Park operating funds shall budget annual capital replacement costs and use them to fund reserves for future equipment replacement and resurfacing needs. The balance of the Facilities Maintenance Capital Asset Reserve was $550,046 as of June 30, 2024 and many of the park operating funds do not have sufficient revenues to adequately fund reserves, which does not meet the targeted level.
However, management believes the balance is sufficient to fund all anticipated replacements. 6) The City will seek to build and maintain a Storm Drain Depreciation Reserve for costs associated with the major maintenance and capital improvement costs included in the Storm Drain (NPDES) program budget. The minimum reserve level will be 50% of the costs projected over the next five years, or $250 thousand per year as of June 30, 2020. The balance of the reserve, which is a component of the NPDES Special Revenue Fund’s Restricted Fund Balance, was zero as of June 30, 2024. The reserve is expected to be reestablished from future revenues. 7) The City will establish a Reserve for Qualifying Expenditures and will transfer into it from current revenues all amounts necessary to ensure compliance with Gann Limit provisions. These funds will be used solely to pay for Gann Limit excludable capital expenditures. To qualify, they must be for assets having a value greater than $100,000 and having a useful life of at least 10 years. The City was in compliance with the Gann Limit provisions as of June 30, 2024, and therefore was not required to establish a Reserve for Qualifying Expenditures as of June 30, 2024.
D. Fund Balance Deficit
The following funds had deficit fund balance as of June 30, 2024:
Special Revenue Funds:
Low and Moderate Income Housing Asset $828,161
NPDES 133,980
Developer Deposits 69
The deficits are expected to be eliminated by future revenues or funding from the General Fund.
67 257
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 10 – NET POSITION AND FUND BALANCES (Continued)
E. Net Investment in Capital Assets
The balances related to Net Investment in Capital Assets are comprised of the following as of June 30, 2024:
Governmental
Activities
Capital Assets, Net of Accumulated Depreciation $245,637,998 Less Capital Debt (7,570,000)
Net Investment in Capital Assets $238,067,998
NOTE 11 – PENSION PLAN
A. General Information about the Pension Plan
Plan Description – All qualified permanent, probationary and part-time employees are eligible to participate in the City’s Safety (police) and Miscellaneous (all other) Employee Pension Rate Plans. The City’s Miscellaneous and Safety Rate Plans are part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors four rate plans (three miscellaneous and one safety). 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.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: 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 specified by the Public Employees’ Retirement Law.
In August 2010, the City Council authorized an amendment to the contract between the City and the CalPERS in order to establish a Tier 2 retirement benefits structure. The Tier 2 changed the retirement benefit formula from 2.5% @ 55 to 2% @ 60 for new miscellaneous employees hired on or after October 18, 2010. A Tier 3 structure was established to implement the provisions of the Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, and is applicable to employees new to CALPERS, and hired after December 31, 2012, and not subject to grandfathering into the previously existing Tier 2 Rate Plan.
Effective August 12, 2015, the City established a Safety Rate Plan that provides benefits for safety employees hired after January 1, 2013 using the 2.7% @ 57 benefit formula.
68 258
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 11 – PENSION PLAN (Continued)
The Plan’s provisions and benefits in effect at June 30, 2024, are summarized as follows:
Miscellaneous
Classic Tier 1 Classic Tier 2 PEPRA Tier 3
Hire date
Prior to
October 18, 2010
On or after
October 18, 2010
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 2.0 % to 2.7% 1.092% - 2.418% 1.0% - 2.5% Required employee contribution rates 8.00% 7.00% 7.75%
Required employer contribution rates 14.06% 10.66% 7.68% Required UAL contribution $0 $0 $0
Safety
PEPRA
Hire date
On or after
January 1, 2013
Benefit formula 2.7% @ 57
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 50 - 57
Monthly benefits, as a % of eligible compensation 2.0% - 2.7% Required employee contribution rates 13.75%
Required employer contribution rates 14.48%
Required UAL contribution $0
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a monthly basis or can be paid in a lump sum at a reduced amount. There was no unfunded liability due during fiscal year 2024 due to the investment returns experienced by CalPERS, but it is expected to resume in fiscal year 2025.
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 Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
For the year ended June 30, 2024, the City’s total contributions to the Plan were $1,335,431. 69 259
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 11 – PENSION PLAN (Continued)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:
Miscellaneous $1,859,027
Safety 1,408,643
Total Net Pension Liability (Asset) $3,267,670
Proportionate Share
of Net Pension
Liability (Asset)
The governmental activities net pension liability is liquidated primarily by the General Fund.
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2023 was as follows:
Proportion - June 30, 2022 0.01800%
Proportion - June 30, 2023 0.02619%
Change - Increase (Decrease) 0.00819%
70 260
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 11 – PENSION PLAN (Continued)
For the year ended June 30, 2024, the City recognized pension expense of $2,461,550. As of June 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $1,335,431 Differences between actual and expected experience 198,389 ($23,586) Changes in assumptions 194,448
Change in employer's proportion and differences between the employer’s contributions and the employer’s
proportionate share of contributions 1,803,740 (244,366) Net differences between projected and actual earnings
on plan investments 493,765
Total $4,025,773 ($267,952)
$1,335,431 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended Annual
June 30 Amortization
2025 $1,132,200
2026 720,561
2027 555,613
2028 14,016
Total $2,422,390
71 261
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 11 – PENSION PLAN (Continued)
Actuarial Assumptions – For the measurement period ended June 30, 2023, the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The June 30, 2022 total pension liabilities were based on the following actuarial methods and assumptions for all benefit tiers:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Actuarial Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Salary Increases (1)
Investment Rate of Return 6.90% (2)
Mortality Derived using CalPERS Membership Data for
all Funds (3)
Post Retirement Benefit Increase
The lesser of contract COLA or 2.30% until
Purchasing Power Protection Allowance floor
on purchasing power applies, 2.30% thereafter
(1) Depending on age, service and type of employment
(2) Net of pension plan investment expenses, including inflation (3) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.
Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2022 valuation were based on the results of a November 2021 actuarial experience study for the period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS website.
Discount Rate – The discount rate used to measure the total pension liability for the Plan was 6.90%. The projection of cash flows used to determine the discount rate for the Plan assumed that contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach.
The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points.
72 262
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 11 – PENSION PLAN (Continued)
The expected real rates of return by asset class are as follows:
Asset Class (1)
Assumed
Asset Allocation
Real Return
(1), (2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-Backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management Study.
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 Plan, calculated using the discount rate for the Plan, 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:
1% Decrease 5.90%
Net Pension Liability (Asset) $7,184,658
Current Discount Rate 6.90%
Net Pension Liability (Asset) $3,267,670
1% Increase 7.90%
Net Pension Liability (Asset) $52,039
Pension Plan Fiduciary Net Position – Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 73 263
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 12 – OTHER POST-EMPLOYMENT BENEFITS
A. PORAC Retiree Medical Trust Plan
The City established a post-employment health care defined contribution plan in May 2016, pursuant to a negotiated Memoranda of Understanding (MOU) with its Oakley Police Officers Association employee bargaining unit. The City’s funding obligation for the plan is defined within the MOU and is a specified contribution of $450 per month per police employee. Police Management (Chief and Lieutenants) also receive the same benefit.
The administration of benefits for the plan rests with the plan administrator. The administrator for the plan is the Peace Officers Research Association of California (PORAC) Retiree Medical Trust. There are no vesting requirements to be eligible to use these funds post-employment for qualified medical expenses.
The benefit can only be used to purchase post-employment health insurance.
Contributions to the plan during fiscal year 2024 were $207,000.
B. Retirement Health Savings Plan
In February 2020, the City established a retirement health savings (RHS) plan for all non-safety employees. Effective July 1, 2022, the City's funding obligation for the plan is $1,300 per year per employee.
The administration of benefits for the plan rests with the plan administrator. The administrator for the plan is Mission Square Retirement (formerly ICMA RC). To be vested in the plan an employee must have 5 years of employment to be eligible to use these funds post-employment. The benefit can only be used to fund post-employment medical expenses.
Contributions to the plan during fiscal year 2024 were $72,264.
NOTE 13 – DEFERRED COMPENSATION PLANS
City employees may also defer a portion of their compensation under City sponsored Deferred Compensation Plans. The City offers the opportunity to participate in one of two plans, one created in accordance with Internal Revenue Code Section 457, and one created in accordance with Internal Revenue Code 401a. Under the 457 Plan, different rules apply and amounts contributed may be either pre-tax or after-tax depending on applicable plan rules; under the 401a Plan participants are not taxed on the deferred portion of their compensation until distributed to them. Under both plans, distributions may be made only at termination, retirement, death or in an emergency as defined by each Plan.
The Plans are part of the public agency agent multiple‐employer defined contribution plans that are administered by Mission Square Retirement (formerly ICMA RC). Benefit provisions under the Plans are established by City resolution.
The City has no liability for any losses incurred by the Plans and does not participate in any gains, but does have the duty of due care that would be required of an ordinary prudent investor. The City has a contract with Mission Square to manage and invest the assets of each Plan. The administrator pools the assets of each Plan with those of other participants and does not make separate investments for the City.
The assets in the Plans are the sole property of the participants or their beneficiaries. Since the assets held under the Plans are not the City’s property and are not subject to claims by general creditors of the City, they have been excluded from these financial statements. The Plans require investments to be stated at fair market value and it requires all gains and losses on Plan investments to accrue directly to participant accounts.
74 264
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 13 – DEFERRED COMPENSATION PLANS (Continued)
The City contributes a 1% match of employee contributions to the 457 Plan for all employees, except those under the Oakley Police Officers Association. Police Department lieutenants receive an additional employer contribution of 2% of base pay, for a total contribution of 3%. The Police Chief receives a 1% match of his contributions to the 457 Plan. The City Manager receives a contribution of $500 per month, as well as a 1% match of his contributions to the 457 Plan. The employer contributions vest 60% after one year, increasing 10% per year until they are 100% vested in year five.
The City contributes a 1% match of employee earnings, excluding overtime and bonuses, to the 401a Plan for employees that work an average of 30 hours per week. The employer contributions vest 60% after one year, increasing 10% per year until they are 100% vested in year five.
If an employee participates in both plans, the maximum employer matching contribution is 1%, except for Police Department lieutenants, which is a maximum of 3%.
The City’s required contributions for the year ended June 30, 2024 totaled $55,173.
NOTE 14 - LEASES
A. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City recognizes lease receivables or liabilities with an initial, individual value of $50,000 or more.
Lessee - The City does not have any noncancellable leases of nonfinancial assets as of June 30, 2024. If there were such leases outstanding, the City would recognize a lease liability and an intangible right‐to‐ use lease asset (lease asset) in the government‐wide financial statements.
At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
75 265
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 14 – LEASES (Continued)
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position.
Lessor - The City is a lessor for noncancellable leases of commercial space and communication sites.
The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2024 were:
Lease Deferred Inflows
Receivable of Resources
General Fund
Leases Receivable (Lessor)
Facilities rentals:
Guanatos Ice Cream $35,562 $31,037
Communication sites:
American Tower 119,954 111,341
Sprint Nextel (T-Mobile) 137,945 124,854
Total Leases Receivable $293,461 $267,232
76 266
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 14 – LEASES (Continued)
Facilities Rentals – The City leases commercial space to third parties. During the year ended June 30, 2024, the City had one lease that was subject to being recorded as a lease receivable under generally accepted accounting principles. The original lease term was five years and as of June 30, 2024, the lease had just under one year remaining. The lease can be renewed for one additional five year term upon written notice of the tenant. The City did not include the extension periods in the calculation of the lease receivable balance. The City recognized $30,886 in lease revenue and $1,597 in interest revenue during the current fiscal year related to this lease. Also, the City has deferred inflows of resources associated with this lease that will be recognized as revenue over the lease term.
Communication Site Leases – The City leases various locations to third parties for the provisions of mobile/wireless communications services. During the year ended June 30, 2024, the City had two leases, with original lease terms ranging from twenty to thirty years, including the optional extension periods, and as of June 30, 2024, the leases had 3.6 to 4.8 years remaining. The City recognized $58,880 in lease revenue and $8,856 in interest revenue during the current fiscal year related to these leases. Also, the City has deferred inflows of resources associated with these leases that will be recognized as revenue over the lease term.
NOTE 15 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. The City recognizes SBITA assets/liabilities with an initial, individual value of $50,000 or more.
At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription.
The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported on the statement of net position. City did not have any SBITAs that met the criteria for capitalization as of June 30, 2024, other than ERP upgrade discussed in Note 7D above. 77 267
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 16 – RISK MANAGEMENT
A. Municipal Pooling Authority of Northern California (MPA) The City is a member of the Municipal Pooling Authority of Northern California. The Authority provides coverage against various types of loss risks under the terms of a joint-powers agreement with the City and several other cities and governmental agencies. The City participates in the coverage programs as follows:
Types of Coverage (Deductible) Coverage Limits
Liability ($25,000) $34,500,000
Vehicle - Physical Damage ($3,000 for police vehicles, 250,000 $2,000 for all others)
Worker's Compensation (no deductible) Statutory
Property:
All Risk ($25,000), Fine Art ($5,000), Water Claims ($150,000) 1,000,000,000 Flood* 25,000,000
Pollution Liability ($250,000 for incidents after July 1, 2021 and $500,000 for prior events) 2,000,000 Boiler and Machinery ($10,000) 100,000,000
Cyber Liability ($50,000) 3,000,000
Government Crime ($2,500) 5,000,000
Employment Liability ($50,000) 2,000,000
* $100,000 minimum deductible per occurrence, except Zones A and V, which are subject to a $250,000 deductible per occurrence.
The Authority is governed by a Board consisting of representatives from member municipalities. The Board controls the operations of the Authority, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board.
The City’s deposits with the Authority are in accordance with formulas established by the Authority.
Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating.
Audited financial statements for the Authority are available from MPA, 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.
78 268
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 16 – RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
Claims and judgments, including a provision for claims incurred but not reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is reasonably determinable. As discussed, above, the City has coverage for such claims, but it has retained the risk for the deductible, or uninsured portion of these claims. Settlements have not exceeded insurance coverage for the past three fiscal years.
The City’s liability for uninsured liability claims at June 30 was estimated by management based on claims experience during the fiscal year and was computed as follows:
June 30
2024 2023
Balance at beginning of year $75,850 $88,723
Liability for current fiscal year claims 3,172 2,927
Change in liability for prior fiscal year claims
and claims incurred but not reported (IBNR) (14,260) 15,295 Claims paid (14,753) (31,095)
Balance at end of year $50,009 $75,850
NOTE 17 – COMMITMENTS AND CONTINGENCIES
A. Construction and Other Commitments
The City has the following outstanding construction and design commitments as of June 30, 2024 which are included in the balance of encumbrances in Note 17E:
East Cypress/Knightsen Avenue Intersection Signal $8,763,348 East Cypress Road Widening - Jersey Island to Bethel Island 309,234 East Cypress Road Widening at CCWD Canal Crossing Project 208,364 Enrico Cinquini Park Construction 124,350
Public Works Operations Building Remodeling 60,000
Laurel Road Extension 38,960
Laurel Road Widening 31,230
Irrigation Well Installation at City's Freedom Basin Project 14,180 Piper Lane Drainage Channel Trash Capture 13,230
O'Hara Avenue/Carpenter Road Intersection Improvement 9,420 B. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney, with one exception, there is no presently filed litigation which is likely to have a material adverse effect on the financial position of the City. The City currently has one potential claim that may exceed the limits of the City's liability insurance coverage, however, the claim is in its early stages is too early to quantify the City's exposure, and therefore, no liability has been recorded as of year-end. 79 269
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 17 – COMMITMENTS AND CONTINGENCIES (Continued)
C. Federal and State Grant Programs
The City participates in several federal and State grant programs. These programs are subject to audit by the City’s independent accountants in accordance with the provisions of the federal Single Audit Act as amended and applicable State requirements. No cost disallowances have been proposed as a result of audits completed to date; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
D. Funding Plan for Construction of Station 55 and Advance from Fire District In September 2018, the City entered into a cooperative funding agreement with the East Contra Costa Fire Protection District for the construction of Fire Station No. 55 in the Summer Lakes subdivision. Under the terms of a separate settlement agreement with a developer, the City received $3.12 million for the design and construction of Fire Station #55 along with the dedication of a one acre parcel on which the station is to be built. Under the terms of the cooperative funding agreement, the District agreed to advance $1.9 million to the City to complete the design and construction of Station 55. Within thirty days of final completion of the project, the City agrees to transfer title to Station 55 and the associated one acre parcel to the District.
Starting sixty days following the final completion of the project, the advance from the District is repayable on a monthly basis from fire facilities impact fees collected by the City in the previous month. Title was transferred to the Fire District in May 2021 and the fire station opened in June 2022. The advance of funds did not bear interest and the final payment on the advance of $136,023 was made during the year ended June 30, 2024.
E. Encumbrances
Encumbrances outstanding as of June 30, 2024 by fund were as follows:
Major Governmental Funds:
General Fund $269,985
ARPA Special Revenue Fund 1,279,513
Traffic Impact Fees Capital Projects Fund 8,852,359
Non-Major Governmental Funds 421,793
Total Encumbrances $10,823,650
F. Developer Impact Fee Credits
In April 2022, the City entered into an agreement with a developer who is developing the Grand Cypress Preserve residential project. The City agreed to grant the developer impact fee credits and other reimbursements for its costs incurred, since the developer will construct certain improvements beyond what is needed to serve the specific project. The value of these credits and reimbursements do not increase for inflation, nor do they accrue interest. On October 14, 2023, the City and the developer entered into a Superseding Agreement that amended and replaced the terms of the original agreement.
80 270
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 17 – COMMITMENTS AND CONTINGENCIES (Continued)
Under the terms of the Superseding Agreement, the developer is expected to install improvements with a total cost of $12,035,616 (Developer’s Cost), of which the City will provide fee credits or reimbursements totaling $6,808,345 (City’s Share), and if the City agrees to amend the Specific Plan to allow for other future development within the Specific Plan, the City will reimburse the developer an additional amount which is the difference between the Developer’s Share and $18,843,961 (Full Fair-Share Amount).
Reimbursement of the City’s Share is payable from two sources: traffic impact fees (TIF) of $4,240,100, and $2,568,245 (Remaining Payment) from other sources, which may include the issuance of bonds. The Remaining Payment may also be relieved if the City finds an alternative to the requirement to construct the Rock Slough Bridge. The developer will receive fee credits for 100% of the TIF for the completion of the Jersey Island Road improvements described in the original agreement and will be sourced in the form of a credit against the TIF for any lots constructed within the developer’s property. The final Remaining Payment is due within four months of the date the developer obtains approval from Contra Costa Water District for the construction of levee improvements. Once the City has satisfied the City’s Share, the City is to reimburse the developer for 50% of the future developers’ share of TIF collected until the Full Fair-Share Amount is reimbursed.
As of June 30, 2024, no reimbursements had been paid, and the obligations remain contingent upon further development and collection of fees.
The accounting for the amounts due are not recorded as indebtedness since the payments (use of the credits or reimbursements) are contingent upon the developer’s development of residential lots or the collection of development fees from future building growth which has not yet occurred.
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES A. REDEVELOPMENT DISSOLUTION
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by AB1484 on June 27, 2012 (collectively referred to as the Dissolution Act), which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into or modifying agreements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1 26.
In addition, the Dissolution Act directs the State Controller to review the activities of all redevelopment agencies and successor agencies to determine whether an asset transfer between an agency and any public agency occurred on or after January 1, 2011. If an asset transfer did occur and the public agency that received the asset is not contractually committed to a third party for the expenditure or encumbrance of the asset, the legislation purports to require the State Controller to order the asset returned to the redevelopment agency. The State Controller’s Office completed its asset transfer review in July 2015, which did not require the transfer of any additional assets to the Successor Agency.
81 271
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
Effective January 31, 2012, the Redevelopment Agency was dissolved. In accordance with the Dissolution Act, certain assets of the Redevelopment Agency Low and Moderate Income Housing Fund were distributed to a Housing Successor; and all remaining Redevelopment Agency assets and liabilities were distributed to a Successor Agency.
Under the provisions of ABx1 26, the City was eligible to elect to become the Housing Successor and retain the housing assets and elected to do so. On February 1, 2012, the Agency’s housing assets were transferred to the City’s Low and Moderate Income Housing Asset Special Revenue Fund. The activities of the Housing Successor are reported in the Low and Moderate Income Housing Assets Special Revenue Fund as the City has control of those assets, which may be used in accordance with the low and moderate income housing provisions of California Redevelopment Law.
The City also elected to become the Successor Agency and on February 1, 2012 the Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency.
ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established on April 17, 2012. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members, including one member of City Council and one former Redevelopment Agency employee appointed by the Mayor.
The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board and the Department of Finance. The City provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency.
The Department of Finance issued the Successor Agency a Finding of Completion on August 15, 2014.
Cash and investments of the Successor Agency as of June 30, 2024 includes the following:
Cash available for operations:
Cash available for operations $219,912
Cash held for September 1, 2023 debt service payment 1,388,993 Cash and investments with fiscal agent 2,961
Total Cash and Investments $1,611,866
Details regarding cash and investments are discussed in Note 3. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of June 30, 2024.
B. LOANS RECEIVABLE
The Successor Agency assumed the non-housing loans receivable of the Redevelopment Agency as of February 1, 2012. The Redevelopment Agency engaged in programs designed to encourage construction of or improvement to low-to-moderate income housing. Under these programs, grants or loans were provided under favorable terms to homeowners or developers who agreed to expend these funds in accordance with the Agency’s terms. The balance of the portion of the Oakley Senior Housing loan assumed by the Successor Agency as discussed in Note 5D above was $575,762 as of June 30, 2024. 82 272
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
C. LONG-TERM DEBT
The Successor Agency assumed the long-term debt of the Redevelopment Agency as of February 1, 2012.
1. Current Year Transaction and Balances
All of the long-term debt of the Successor Agency is comprised of Tax Allocation Bonds issued by the Redevelopment Agency. The Bonds are special obligations of the Agency and are secured only by the Agency’s tax increment revenues. Tax Allocation Bond transactions were as follows:
Original Issue Balance Balance Current
Amount June 30, 2023 Retirements June 30, 2024 Portion
2015A Tax Allocation Bonds
3.75-5.00%, due 9/01/2028 $2,595,000 $2,595,000 $2,595,000 $165,000 2015B Tax Allocation Bonds
2.00-3.75%, due 9/01/2024 3,115,000 905,000 ($525,000) 380,000 380,000 2018 Tax Allocation Refunding Bonds
3.25-6.00%, due 9/01/2038 18,655,000 17,540,000 (395,000) 17,145,000 410,000 Add: Unamortized Bond Premium 1,505,343 (94,084) 1,411,259 Total $22,545,343 ($1,014,084) $21,531,259 $955,000
2. Successor Agency 2015 Tax Allocation Bonds
On May 6, 2015, the Agency issued $2,595,000 in 2015 Tax Allocation Bonds, Series A, and $3,115,000 in 2015 Tax Allocation Bonds, Series B. The proceeds of these bonds, secured by property tax revenues in the Redevelopment Property Tax Trust Fund, were used to refund and defease the outstanding 2003 Tax Allocation Bonds. The 2003 Bonds were called on June 19, 2015.
Under the terms of the Trust Indenture for the 2015 Bonds, an event of default occurs if, among other things, the Successor Agency (i) fails to pay interest or principal on the 2015 Bonds when due and payable, (ii) fails to observe or perform any other covenant or term contained in the Trust Indenture, or (iii) commences a voluntary case under Title 11 of the United States Code. Upon the occurrence of an event of default, the Trustee may exercise any remedies available to the Trustee and the bond owners in law or at equity.
The 2015 Bonds are secured by the Successor Agency’s property tax revenues in the Redevelopment Property Tax Trust Fund. Annual principal payments on the Series A Bonds do not start till September 1, 2024, and semi-annual interest payments are due March 1 and September 1, through 2028. Annual principal payments on the Series B Bonds are due September 1, and semiannual interest payments are due March 1 and September 1, through 2024. 83 273
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
3. Successor Agency 2018 Tax Allocation Refunding Bonds On July 19, 2018, the Agency issued $18,655,000 in 2018 Tax Allocation Refunding Bonds. The proceeds of these bonds, secured by property tax revenues in the Redevelopment Property Tax Trust Fund, were used to refund and defease the outstanding 2008 Subordinate Tax Allocation Bonds. The refunding reduces the total debt service payments over 21 years by $7,649,546 and results in an economic gain (difference between the present values of the debt service payments on the old and new debt) of $3,097,278. The 2008 Bonds were called on September 1, 2018.
Under the terms of the Trust Indenture for the 2018 Bonds, an event of default occurs if, among other things, the Successor Agency (i) fails to pay interest or principal on the 2018 Bonds when due and payable, (ii) fails to observe or perform any other covenant or term contained in the Trust Indenture, or (iii) commences a voluntary case under Title 11 of the United States Code. Upon the occurrence of an event of default, the Trustee may exercise any remedies available to the Trustee and the bond owners in law or at equity.
The 2018 Bonds are secured by the Successor Agency’s property tax revenues in the Redevelopment Property Tax Trust Fund. The 2018 Bonds are on parity with the 2015 Bonds discussed above Annual principal payments on the 2018 Bonds are due September 1, and semiannual interest payments are due March 1 and September 1, through 2028.
4. Pledge of Tax Revenues
As discussed above, the Agency had pledged all future tax increment revenues, less amounts required to be set aside in the Redevelopment Agency Low and Moderate Income Housing Capital Projects Fund and certain tax increment pass through payments, for the repayment of both the 2003 and 2008A Tax Allocation Bonds (non-housing revenues). The Agency had also pledged tax increment revenues required to be set aside in the Redevelopment Agency Low and Moderate Income Housing Capital Projects Fund (housing revenue) for the repayment of a portion of the 2003 Tax Allocation Bonds. With the issuance of the 2018 Bonds, the tax increment revenue is pledged on parity with the 2015 and 2018 Bonds. The pledge of all future tax increment revenues ends upon repayment of the $26,944,762 remaining debt service on the 2015 and 2018 Bonds above, which is scheduled to occur in 2039.
With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bonds, with no distinction between housing and non-housing revenues. Beginning in fiscal year 2012, under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. Total property taxes available for distribution to the Successor Agency and other taxing entities for fiscal year 2024 calculated by the County Auditor-Controller was $7,967,005 and the total received by the Successor Agency for fiscal year 2024 debt service was $2,085,169 which represented 121% of the $1,719,306 of debt service.
84 274
CITY OF OAKLEY
NOTES TO BASIC FINANCIAL STATEMENTS
For fiscal year ended June 30, 2024
NOTE 18 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
5. Debt Service Requirements
Annual debt service requirements for the Bonds are shown below:
For the Year
Ending June 30 Principal Interest
2025 $955,000 $846,489
2026 1,000,000 799,986
2027 1,050,000 748,736
2028 1,105,000 699,939
2029 1,145,000 653,615
2030 - 2034 6,610,000 2,355,340
2035 - 2039 8,255,000 720,657
20,120,000 $6,824,762
Add: Unamortized
Premium 1,411,259
Net Long Term Debt $21,531,259
D. COMMITMENTS AND CONTINGENCIES
1. State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-annually that contains all proposed expenditures for the subsequent six-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance.
Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance in the future cannot be determined at this time.
2. State Asset Transfer Review
The activities of the former Redevelopment Agency and the Successor Agency were also subject to further examination by the State of California. The State Controller’s Office conducted a review of the propriety of asset transfers between the former Redevelopment Agency or the Successor Agency and any public agency that occurred on or after January 1, 2011. The results of that review were issued in July 2015 and although the review did identify ineligible transfers of assets from the former Redevelopment Agency to the City, the report reflected the current year and prior year transfers discussed in Note 18A and made no further demands for the return of assets to the Successor Agency.
E. CONTRA COSTA COUNTYWIDE CONSOLIDATED OVERSIGHT BOARD On July 1, 2018, the duties of the Oakley Oversight Board transferred to a new Contra Costa Countywide Consolidated Oversight Board, which is responsible for overseeing the winddown affairs of all Successor Agencies in Contra Costa County, including the Successor Agency to the Oakley Redevelopment Agency.
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REQUIRED SUPPLEMENTARY INFORMATION
277
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279
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous and Safety Rate Plans, a Cost Sharing-Employer Defined Benefit Pension Plan Last 10 Years
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Plan's Proportion of the Net Pension Liability (Asset) 0.04460% 0.05032% 0.04978% 0.02077% Plan's Proportionate Share of the Net Pension Liability/(Asset) $1,102,233 $1,380,410 $1,729,323 $2,059,612 Plan's Covered Payroll $1,972,266 $2,494,839 $3,497,131 $6,800,698 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 55.89% 55.33% 49.45% 30.29% Plan's Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 79.82% 78.40% 74.06% 73.31%
Notes to Schedule:
90 280
REQUIRED SUPPLEMENTARY INFORMATION
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
0.02053% 0.02258% 0.01526% -0.02567% 0.01800% 0.02619%
$1,978,129 $2,313,974 $1,660,558 ($1,388,239) $2,077,415 $3,267,670 $8,031,468 $8,224,932 $8,331,862 $8,425,819 $8,601,562 $9,842,108
24.63% 28.13% 19.93% -16.48% 24.15% 33.20%
75.26% 75.26% 75.10% 88.29% 76.68% 76.21%
91 281
REQUIRED SUPPLEMENTARY INFORMATION
Miscellaneous and Safety Rate Plans, a Cost Sharing-Employer Defined Benefit Pension Plan Last 10 Years
SCHEDULE OF CONTRIBUTIONS
For the year Ended June 30 2015 2016 2017 2018
Actuarially determined contribution $296,613 $382,769 $746,429 $986,847 Contributions in relation to the actuarially determined contributions 296,613 382,769 746,429 986,847 Contribution deficiency (excess) $0 $0 $0 $0
Covered payroll $2,494,839 $3,497,131 $6,800,698 $8,031,468 Contributions as a percentage of covered payroll 11.89% 10.95% 10.98% 12.29% 92 282
REQUIRED SUPPLEMENTARY INFORMATION
2019 2020 2021 2022 2023 2024
$1,038,446 $2,174,321 $1,595,273 $1,113,411 $1,258,262 $1,335,431 1,038,446 2,174,321 1,595,273 1,113,411 1,258,262 1,335,431 $0 $0 $0 $0 $0 $0
$8,224,932 $8,331,862 $8,425,819 $8,601,562 $9,842,108 $11,091,516
12.63% 26.10% 18.93% 12.94% 12.78% 12.04%
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284
SUPPLEMENTAL INFORMATION
285
286
MAJOR GOVERNMENTAL FUND, OTHER THAN
GENERAL FUND AND SPECIAL REVENUE FUNDS
TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
This fund accounts for fees assessed on new development to provide street and road improvements. 97 287
CITY OF OAKLEY
TRAFFIC IMPACT FEES
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance
Positive
Budget Actual (Negative)
REVENUES
Developer fees $1,785,396 $1,494,245 ($291,151)
Use of money and property 30,000 685,914 655,914
Miscellaneous 5,360 5,360
Total Revenues 1,815,396 2,185,519 370,123
EXPENDITURES
Current:
Community Development
Public Works 174,174 138,076 36,098
Capital outlay 12,791,701 1,300,370 11,491,331
Total Expenditures 12,965,875 1,438,446 11,527,429
NET CHANGE IN FUND BALANCES ($11,150,479) 747,073 $11,897,552 Fund balance at beginning of year 12,255,516
Fund balance at end of year $13,002,589
98 288
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
GAS TAX
This fund accounts for revenues and expenditures received from the State of California under Street and Highways Code Sections 2105, 2106, 2107 and 2107.5. This fund also accounts for the revenues and expenditures related to Senate Bill 1 (SB 1) Road Maintenance and Rehabilitation Program received from the State of California under Street and Highways Code Sections 2032. All allocations must be spent for street maintenance and construction.
NPDES
This fund accounts for storm water utility fees assessed on properties city-wide and used to pay for the “National Pollution Discharge Elimination System” to prevent further polluting of our streams and bays as mandated by the Federal government.
COMMUNITY FACILITIES DISTRICT #1
This fund accounts for maintenance and operations related to drainage and flood control at the Cypress Grove development.
COMMUNITY FACILITIES DISTRICT 2015-1
This fund accounts for the activities associated with the maintenance of neighborhood parks, community parks, regional parks, street lighting, landscaping and storm water detention facilities at Emerson Ranch.
AG CONSERVATION
This fund accounts for the activities associated with establishing and carrying out the City’s agricultural conservation program.
CITYWIDE COMMUNITY FACILITIES DISTRICT
This fund was established to account for the activities associated with the maintenance of neighborhood parks and stormwater detention facilities in the areas of the 2015-2 Citywide Community Facility District.
REGIONAL PARK
This fund was established to account for the activities associated with the development and maintenance of the Oakley Regional Community Park.
CREEKSIDE PARK RESTORATION GRANT
This fund accounts for a grant from the Delta Conservancy with the purpose of developing plans to restore 775 linear feet of Marsh Creek to provide habitat for native fish and wildlife. Various partners will be participating in the analysis including American Rivers, Inc., Contra Costa Flood District and the adjacent property owner/developer.
99 289
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
DEVELOPER DEPOSITS
This fund accounts for deposits received from contractors and property owners to offset the cost of providing certain Community Development services including processing applications and reviewing grading plans of applicant projects.
OPIOID REMEDIATION
This fund accounts for funds received from the State from the settlement agreement with Janssen and Distributors.
The settlement funds are restricted to uses related to opioid abatement.
OFFICER WELLNESS AND MENTAL HEALTH GRANT
This fund accounts for grant funds received from the Bureau California Board of State and Community Corrections (BSCC). The Officer Wellness and Mental Health (Officer Wellness) Grant Program, established in the 2022 Budget Act, provides funds for the purpose of improving officer wellness and expanding mental health sources.
COMMUNITY FACILITIES DISTRICT 2020-1
This fund accounts for the activities associated with the operations and maintenance associated with the City’s Community parks and the public landscape, street lighting, and storm drain maintenance associated with the Contra Costa Logistics Center project. The activity was previously reported as a component of the Lighting and Landscaping
OTS POLICE GRANTS
This fund was established to account for grant funding received to pay for overtime expenses on eligible traffic operations.
CAPITAL PROJECTS FUNDS
MEASURE J
This fund accounts for the City’s portion of the half-cent County-wide sales tax levied to fund transportation improvements to local streets.
GENERAL CAPITAL PROJECTS
This fund accounts for revenues and expenditures related to General Fund contributions, grants and other funding accounts for capital projects not accounted for in other capital projects funds. It accounts for the total expenditures for each project charged to this fund.
PARK IMPACT FEES
This fund accounts for fees assessed on new development to provide for park acquisition and development.
PUBLIC FACILITIES IMPACT FEE
This fund accounts for fees assessed on new development to provide for public facilities.
FIRE IMPACT FEES
This fund accounts for fees assessed on new developments to provide for fire protection capital facilities. 100
290
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
MAIN STREET
This fund accounts for Main Street related projects funded by the General Fund.
CYPRESS GROVE CAPITAL PROJECT
This fund accounts for funds from the 2004-1 Limited Obligation Bonds used to purchase infrastructure assets built by developers in the 2004-1 Assessment District area.
STREET MAINTENANCE REHAB
This fund was established to account for the accumulation of funds for the long-term maintenance of the City’s streets. The amounts transferred into the reserve will be used to augment the City’s Gas Tax, Measure J, and other street improvement revenues in completing street maintenance and improvement projects. The reserve shall be considered fully funded when the balance and the combination of anticipated special revenues eligible for street maintenance is sufficient to pay for the next 3 years’ anticipated maintenance, which is anticipated to occur by June 30, 2018.
2006-1 ASSESSMENT DISTRICT
This fund accounts for funds from the 2006 Infrastructure Revenue Bonds that will ultimately be used to purchase infrastructure assets built by developers in the 2006-1 Assessment District area.
DEBT SERVICE FUND
This fund accounts for principal and interest on the City’s debt issues. 101
291
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2024
SPECIAL REVENUE FUNDS
Community
Community Facilities
Facilities District
Gas Tax NPDES District #1 2015-1
ASSETS
Cash and investments available for operations $2,901,788 $1,164,950 $2,684,467 Cash with fiscal agent
Accounts receivable, net 199,487 $146,665
Interest receivable 14,399 6,889 13,254
Advances to other funds
Total Assets $3,115,674 $146,665 $1,171,839 $2,697,721
LIABILITIES
Accounts payable $164,673 $138,204 $3,815 $12,925
Due to other funds 104,865
Deposits payable
Unearned revenue 37,576
Total Liabilities 164,673 280,645 3,815 12,925
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - interest on advances to other funds Total Deferred Inflows of Resources
FUND BALANCES
Restricted 2,951,001 1,168,024 2,684,796
Assigned
Unassigned (133,980)
Total Fund Balance 2,951,001 (133,980) 1,168,024 2,684,796 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $3,115,674 $146,665 $1,171,839 $2,697,721 102
292
SPECIAL REVENUE FUNDS
Citywide Creekside Officer
Community Park Wellness
Ag Facilities Regional Restoration Developer Opioid and Mental Conservation District Park Grant Deposits Remediation Health Grant $7,681 $1,572,124 $2,495,885 $1,494,280 $19,829
$2,992 109,490
39 7,375 102
$7,720 $1,579,499 $2,495,885 $2,992 $1,603,770 $19,931
$84,782 $1,138 $73,303
1,854
$3,000 1,530,536
$19,479
84,782 3,000 2,992 1,603,839 19,479
$7,720 1,494,717 2,492,885 452
(69)
7,720 1,494,717 2,492,885 (69) 452
$7,720 $1,579,499 $2,495,885 $2,992 $1,603,770 $19,931
(Continued)
103
293
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2024
CAPITAL
SPECIAL REVENUE PROJECTS
FUNDS FUNDS
Community
Facilities OTS General
District Police Capital
2020-1 Grants Measure J Projects
ASSETS
Cash and investments available for operations $74,962 $5,405,201 Cash with fiscal agent
Accounts receivable, net $24,800 $951,323
Interest receivable 349 8 29,122
Advances to other funds
Total Assets $75,311 $24,800 $951,331 $5,434,323
LIABILITIES
Accounts payable $1,323 $809
Due to other funds $24,800 $23,459
Deposits payable
Unearned revenue 378,566
Total Liabilities 1,323 24,800 23,459 379,375
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - interest on advances to other funds Total Deferred Inflows of Resources
FUND BALANCES
Restricted 73,988 $927,872
Assigned 5,054,948
Unassigned
Total Fund Balance 73,988 927,872 5,054,948
Total Liabilities, Deferred Inflows of Resources $75,311 $24,800 $951,331 $5,434,323 104
294
CAPITAL PROJECTS FUNDS
Park Public Fire Cypress Grove Street 2006-1
Impact Facilities Impact Impact Main Capital Maintenance Assessment Fees Fee Fee Street Project Rehab District
$5,907,969 $2,337,595 $536,608 $2,519,525 $259,517
$124,295 440,263
30,505 12,071 1,330
467,242 149,555
$6,405,716 $2,499,221 $536,608 $124,295 $2,519,525 $701,110 $9,429 $54,858 $162,416 $2,623 $33,942
56,031
9,429 54,858 162,416 58,654 33,942
132,411 42,382
132,411 42,382
6,263,876 2,401,981 65,641 $701,110
374,192 2,485,583
6,263,876 2,401,981 374,192 65,641 2,485,583 701,110
$6,405,716 $2,499,221 $536,608 $124,295 $2,519,525 $701,110 (Continued)
105
295
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2024
Total
Debt Nonmajor
Service Governmental
Fund Funds
ASSETS
Cash and investments available for operations $47,820 $29,430,201 Cash with fiscal agent 3,196 567,754
Accounts receivable, net 1,434,757
Interest receivable 1,118 116,561
Advances to other funds 616,797
Total Assets $52,134 $32,166,070
LIABILITIES
Accounts payable $744,240
Due to other funds 211,009
Deposits payable 1,533,536
Unearned revenue 435,621
Total Liabilities 2,924,406
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - interest on advances to other funds 174,793 Total Deferred Inflows of Resources 174,793
FUND BALANCES
Restricted $52,134 21,286,197
Assigned 7,914,723
Unassigned (134,049)
Total Fund Balance 52,134 29,066,871
$52,134 $32,166,070
106
296
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297
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
Community
Community Facilities
Facilities District
Gas Tax NPDES District #1 2015-1
REVENUES
Property taxes $560,663
Other taxes $836,741
Intergovernmental $2,363,734
Developer fees
Special assessments $351,670
Use of money and property 114,189 98,740 120,403
Miscellaneous 8,395 240
Total Revenues 2,486,318 560,903 450,410 957,144
EXPENDITURES
Current:
Community Development
Public Works 713,541 795,506 242,918 600,450
Law Enforcement
Capital outlay 806,191 3,490 1,253,321
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 1,519,732 798,996 1,496,239 600,450
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 966,586 (238,093) (1,045,829) 356,694
OTHER FINANCING SOURCES (USES)
Transfers in 219,373
Transfers (out) (185,053) (162,994) (24,923)
Total Other Financing Sources (Uses) (185,053) 219,373 (162,994) (24,923) NET CHANGE IN FUND BALANCES 781,533 (18,720) (1,208,823) 331,771 Fund balance (deficit) at beginning of year 2,169,468 (115,260) 2,376,847 2,353,025 Fund balances (deficit) at end of year $2,951,001 ($133,980) $1,168,024 $2,684,796 108
298
SPECIAL REVENUE FUNDS
Citywide Creekside Officer
Community Park Wellness
Ag Facilities Regional Restoration Developer Opioid and Mental Conservation District Park Grant Deposits Remediation Health Grant $1,105,953 $358,150
$107,554 $23,782 $8,425
$1,286,308
$370 57,306 23,401 583 1,232
370 1,163,259 381,551 107,554 1,286,308 24,365 9,657
100,558 1,286,308
740,550
23,943 9,205
4,331
740,550 4,331 100,558 1,286,308 23,943 9,205
370 422,709 377,220 6,996 422 452
10,641
(23,993) (422)
(13,352) (422)
370 409,357 377,220 6,996 452
7,350 1,085,360 2,115,665 (6,996) (69)
$7,720 $1,494,717 $2,492,885 ($69) $452
(Continued)
109
299
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
CAPITAL
PROJECTS
SPECIAL REVENUE FUNDS FUNDS
Community
Facilities OTS General
District Police Capital
2020-1 Grants Measure J Projects
REVENUES
Property taxes
Other taxes $41,402
Intergovernmental $24,800 $968,803 $45,000
Developer fees 34,376
Special assessments
Use of money and property 2,590 55,100 38,833
Miscellaneous
Total Revenues 43,992 24,800 1,023,903 118,209
EXPENDITURES
Current:
Community Development
Public Works 19,864 134,157
Law Enforcement
Capital outlay 24,800 2,105,748 3,485,237
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 19,864 24,800 2,239,905 3,485,237
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 24,128 (1,216,002) (3,367,028)
OTHER FINANCING SOURCES (USES)
Transfers in 2,080,000
Transfers (out)
Total Other Financing Sources (Uses) 2,080,000
NET CHANGE IN FUND BALANCES 24,128 (1,216,002) (1,287,028) Fund balance (deficit) at beginning of year 49,860 2,143,874 6,341,976 Fund balances (deficit) at end of year $73,988 $927,872 $5,054,948 110
300
CAPITAL PROJECTS FUNDS
Park Public Fire Cypress Grove Street 2006-1
Impact Facilities Impact Impact Main Capital Maintenance Assessment Fees Fee Fee Street Project Rehab District
$136,838 $362,789 $136,023
291,087 135,448 $5,901 $33,378
427,925 498,237 136,023 5,901 33,378
16,426 136,023
12,416
624,782 440,120 $101,466 $2,944,813
637,198 456,546 136,023 101,466 2,944,813
(209,273) 41,691 (101,466) 5,901 (2,944,813) 33,378
(676,779)
(676,779)
(209,273) (635,088) (101,466) 5,901 (2,944,813) 33,378
6,473,149 3,037,069 475,658 59,740 5,430,396 667,732
$6,263,876 $2,401,981 $374,192 $65,641 $2,485,583 $701,110 (Continued)
111
301
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
Total
Debt Nonmajor
Service Governmental
Fund Funds
REVENUES
Property taxes $560,663
Other taxes 2,342,246
Intergovernmental 3,542,098
Developer fees 1,956,334
Special assessments 351,670
Use of money and property $11,700 990,261
Miscellaneous 8,635
Total Revenues 11,700 9,751,907
EXPENDITURES
Current:
Community Development 1,539,315
Public Works 3,259,402
Law Enforcement 33,148
Capital outlay 11,794,299
Debt service:
Principal 345,000 345,000
Interest and fiscal charges 331,888 331,888
Total Expenditures 676,888 17,303,052
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (665,188) (7,551,145)
OTHER FINANCING SOURCES (USES)
Transfers in 676,779 2,986,793
Transfers (out) (1,074,164)
Total Other Financing Sources (Uses) 676,779 1,912,629
NET CHANGE IN FUND BALANCES 11,591 (5,638,516)
Fund balance (deficit) at beginning of year 40,543 34,705,387 Fund balances (deficit) at end of year $52,134 $29,066,871 112
302
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303
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
GAS TAX N.P.D.E.S.
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes $563,310 $560,663 ($2,647)
Other taxes
Intergovernmental: $2,369,972 $2,363,734 ($6,238)
Developer fees
Special assessments
Use of money and property 114,189 114,189
Miscellaneous 8,395 8,395 240 240
Total Revenues 2,369,972 2,486,318 116,346 563,310 560,903 (2,407)
EXPENDITURES
Current:
Community Development
Public Works 734,046 713,541 20,505 801,612 795,506 6,106 Law Enforcement
Capital outlay 2,932,200 806,191 2,126,009 1,821 3,490 (1,669) Debt service:
Principal
Interest and fiscal charges
Total Expenditures 3,666,246 1,519,732 2,146,514 803,433 798,996 4,437
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,296,274) 966,586 2,262,860 (240,123) (238,093) 2,030
OTHER FINANCING SOURCES (USES)
Transfers in 219,373 219,373
Transfers (out) (190,000) (185,053) 4,947
Total Other Financing Sources (Uses) (190,000) (185,053) 4,947 219,373 219,373 NET CHANGE IN FUND BALANCES ($1,486,274) 781,533 $2,267,807 ($240,123) (18,720) $221,403 Fund balances (deficit) at beginning of year 2,169,468 (115,260) Fund balances (deficit) at end of year $2,951,001 ($133,980) 114
304
SPECIAL REVENUE FUNDS
COMMUNITY FACILITIES
COMMUNITY FACILITIES DISTRICT #1 DISTRICT 2015-1 AG CONSERVATION Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $755,327 $836,741 $81,414
$351,669 $351,670 $1
5,000 98,740 93,740 2,000 120,403 118,403 $370 $370
356,669 450,410 93,741 757,327 957,144 199,817 370 370
370,934 242,918 128,016 827,327 600,450 226,877
1,513,964 1,253,321 260,643
1,884,898 1,496,239 388,659 827,327 600,450 226,877
(1,528,229) (1,045,829) 482,400 (70,000) 356,694 426,694 370 370 (162,994) (162,994) (24,923) (24,923)
(162,994) (162,994) (24,923) (24,923)
($1,528,229) (1,208,823) $319,406 ($70,000) 331,771 $401,771 370 $370 2,376,847 2,353,025 7,350
$1,168,024 $2,684,796 $7,720
(Continued)
115
305
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
CITYWIDE COMMUNITY
FACILITIES DISTRICT REGIONAL PARK
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes $1,045,594 $1,105,953 $60,359 $327,000 $358,150 $31,150 Intergovernmental:
Developer fees
Special assessments
Use of money and property 800 57,306 56,506 21,000 23,401 2,401 Miscellaneous
Total Revenues 1,046,394 1,163,259 116,865 348,000 381,551 33,551
EXPENDITURES
Current:
Community Development
Public Works 1,032,648 740,550 292,098
Capital outlay 21,134 4,331 16,803
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 1,032,648 740,550 292,098 21,134 4,331 16,803
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 13,746 422,709 408,963 326,866 377,220 50,354
OTHER FINANCING SOURCES (USES)
Transfers in 10,641 10,641
Transfers (out) (23,993) (23,993)
Total Other Financing Sources (Uses) (13,352) (13,352)
NET CHANGE IN FUND BALANCES $13,746 409,357 $395,611 $326,866 377,220 $50,354 Fund balances (deficit) at beginning of year 1,085,360 2,115,665 Fund balances (deficit) at end of year $1,494,717 $2,492,885 116
306
SPECIAL REVENUE FUNDS
CREEKSIDE PARK
RESTORATION GRANT DEVELOPER DEPOSITS OPIOID REMEDIATION Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $41,403 $107,554 $66,151 $13,637 $23,782 $10,145
$1,200,000 $1,286,308 $86,308
583 583
41,403 107,554 66,151 1,200,000 1,286,308 86,308 13,637 24,365 10,728 125,332 100,558 24,774 1,200,000 1,286,308 (86,308)
18,000 23,943 (5,943)
125,332 100,558 24,774 1,200,000 1,286,308 (86,308) 18,000 23,943 (5,943) (83,929) 6,996 90,925 (4,363) 422 4,785
(422) (422)
(422) (422)
($83,929) 6,996 $90,925 ($4,363) $4,363
(6,996) (69)
($69)
(Continued)
117
307
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
OFFICER WELLNESS AND COMMUNITY FACILITIES
MENTAL HEALTH GRANT DISTRICT 2020-1
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes $38,443 $41,402 $2,959
Intergovernmental $28,000 $8,425 ($19,575)
Developer fees
Special assessments
Use of money and property 1,232 1,232 2,590 2,590
Miscellaneous
Total Revenues 28,000 9,657 (18,343) 38,443 43,992 5,549
EXPENDITURES
Current:
Community Development
Public Works 40,117 19,864 20,253
Law Enforcement 28,000 9,205 18,795
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 28,000 9,205 18,795 40,117 19,864 20,253
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 452 452 (1,674) 24,128 25,802
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out)
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES 452 $452 ($1,674) 24,128 $25,802 Fund balances (deficit) at beginning of year 49,860
Fund balances (deficit) at end of year $452 $73,988
118
308
SPECIAL REVENUE FUND CAPITAL PROJECTS FUNDS
OTS POLICE GRANTS MEASURE J GENERAL CAPITAL PROJECTS
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $24,800 $24,800 $1,009,555 $968,803 ($40,752) $45,000 $45,000 34,376 34,376
55,100 55,100 38,833 $38,833
24,800 24,800 1,009,555 1,023,903 14,348 79,376 118,209 38,833 144,634 134,157 10,477
24,800 24,800 2,814,681 2,105,748 708,933 8,737,436 3,485,237 5,252,199 24,800 24,800 2,959,315 2,239,905 719,410 8,737,436 3,485,237 5,252,199 (1,949,760) (1,216,002) 733,758 (8,658,060) (3,367,028) 5,291,032 2,080,000 2,080,000
2,080,000 2,080,000
($1,949,760) (1,216,002) $733,758 ($6,578,060) (1,287,028) $5,291,032 2,143,874 6,341,976
$927,872 $5,054,948
(Continued)
119
309
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
CAPITAL PROJECTS FUNDS
PARK IMPACT FEES PUBLIC FACILITIES IMPACT FEE
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental
Developer fees $1,273,657 $136,838 ($1,136,819) $469,917 $362,789 ($107,128) Special assessments
Use of money and property 291,087 291,087 135,448 135,448 Miscellaneous
Total Revenues 1,273,657 427,925 (845,732) 469,917 498,237 28,320
EXPENDITURES
Current:
Community Development 6,200 16,426 (10,226)
Public Works 9,424 12,416 (2,992)
Law Enforcement
Capital outlay 5,890,923 624,782 5,266,141 455,241 440,120 15,121 Debt service:
Principal
Interest and fiscal charges
Total Expenditures 5,900,347 637,198 5,263,149 461,441 456,546 4,895
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (4,626,690) (209,273) 4,417,417 8,476 41,691 33,215
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers (out) (676,779) (676,779)
Total Other Financing Sources (Uses) (676,779) (676,779) NET CHANGE IN FUND BALANCES ($4,626,690) (209,273) $4,417,417 ($668,303) (635,088) $33,215 Fund balances (deficit) at beginning of year 6,473,149 3,037,069 Fund balances (deficit) at end of year $6,263,876 $2,401,981 120
310
CAPITAL PROJECTS FUNDS
MAIN STREET CYPRESS GROVE CAPITAL PROJECT STREET MAINTENANCE REHAB Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $5,901 $5,901
5,901 5,901
$483,057 $101,466 $381,591 $5,317,608 $2,944,813 $2,372,795 483,057 101,466 381,591 5,317,608 2,944,813 2,372,795
(483,057) (101,466) 381,591 5,901 5,901 (5,317,608) (2,944,813) 2,372,795 ($483,057) (101,466) $381,591 5,901 $5,901 ($5,317,608) (2,944,813) $2,372,795 475,658 59,740 5,430,396
$374,192 $65,641 $2,485,583
(Continued)
121
311
CITY OF OAKLEY
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULES OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
CAPITAL PROJECTS FUND
2006-1 ASSESSMENT DISTRICT DEBT SERVICE FUND
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental
Developer fees
Special assessments
Use of money and property $33,378 $33,378 $11,700 $11,700 Miscellaneous
Total Revenues 33,378 33,378 11,700 11,700
EXPENDITURES
Current:
Community Development
Public Works
Law Enforcement
Capital outlay $35,000 35,000
Debt service:
Principal 345,000 345,000
Interest and fiscal charges 331,779 331,888 (109)
Total Expenditures 711,779 676,888 34,891
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 33,378 33,378 (711,779) (665,188) 46,591
OTHER FINANCING SOURCES (USES)
Transfers in 676,779 676,779
Transfers (out)
Total Other Financing Sources (Uses) 676,779 676,779
NET CHANGE IN FUND BALANCES 33,378 $33,378 ($35,000) 11,591 $46,591 Fund balances (deficit) at beginning of year 667,732 40,543 Fund balances (deficit) at end of year $701,110 $52,134 122
312
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.
The concept of major funds does not extend to internal service funds because they do not do business with outside parties. For the Statement of Activities, the net revenues or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.
However, internal service funds are still presented separately in the Fund financial statements, including the funds below.
EQUIPMENT REPLACEMENT
This fund is used to finance and account for the replacement of equipment used by City departments.
CAPITAL FACILITIES MAINTENANCE AND REPLACEMENT
This fund is used to account for the maintenance and replacement of the City’s capital facilities used by City departments.
INFORMATION TECHNOLOGY
This fund is used to finance and accounts for the replacement of technology equipment used by City departments. 123
313
CITY OF OAKLEY
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
Capital Facilities
Equipment Maintenance and Information
Replacement Replacement Technology Total
ASSETS
Current:
Cash and investments available for operations $1,208,607 $547,066 $385,080 $2,140,753 Receivables:
Interest 6,037 2,980 1,985 11,002
Total Current Assets 1,214,644 550,046 387,065 2,151,755 Noncurrent:
Capital assets:
Depreciable, net 1,070,820 4,765,832 699,397 6,536,049
Total Noncurrent Assets 1,070,820 4,765,832 699,397 6,536,049 Total Assets 2,285,464 5,315,878 1,086,462 8,687,804
LIABILITIES
Accounts payable 148,964 148,964
Accrued liabilities 1,604 1,604
Total Liabilities 150,568 150,568
NET POSITION
Investment in capital assets 1,070,820 4,765,832 699,397 6,536,049 Unrestricted 1,064,076 550,046 387,065 2,001,187
Total Net Position $2,134,896 $5,315,878 $1,086,462 $8,537,236 124
314
CITY OF OAKLEY
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
Capital Facilities
Equipment Maintenance and Information
Replacement Replacement Technology Total
OPERATING REVENUES
Charges for services $682,176 $190,000 $872,176
Total Operating Revenues 682,176 190,000 872,176
OPERATING EXPENSES
Supplies 253,219 $692 5,107 259,018
Depreciation 265,889 254,587 217,048 737,524
Total Operating Expenses 519,108 255,279 222,155 996,542 Operating Income (Loss) 163,068 (255,279) (32,155) (124,366)
NONOPERATING REVENUES (EXPENSES)
Gain on sale of assets (4,801) (4,801)
Interest income 47,876 31,729 14,247 93,852
Total Nonoperating Revenues 43,075 31,729 14,247 89,051 Income (Loss) Before Contributions and Transfers 206,143 (223,550) (17,908) (35,315) Contributions 319,538 154,339 473,877
Capital assets contributed to governmental activities (117,791) (117,791) Change in net position 525,681 (341,341) 136,431 320,771 BEGINNING NET POSITION 1,609,215 5,657,219 950,031 8,216,465 ENDING NET POSITION $2,134,896 $5,315,878 $1,086,462 $8,537,236 125
315
CITY OF OAKLEY
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
Capital Facilities
Equipment Maintenance and Information
Replacement Replacement Technology Total
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $682,176 $190,000 $872,176
Payments to suppliers (124,312) ($114,610) (20,107) (259,029) Cash Flows from Operating Activities 557,864 (114,610) 169,893 613,147
CASH FLOWS FROM CAPITAL
FINANCING ACTIVITIES
Capital assets purchased and
contributed to governmental activities (117,791) (117,791) Acquisition of capital assets (311,296) (51,652) (362,948) Cash Flows from Capital Financing Activities (311,296) (117,791) (51,652) (480,739)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest 43,446 30,122 12,869 86,437
Net Cash Flows 290,014 (202,279) 131,110 218,845
Cash and investments at beginning of period 918,593 749,345 253,970 1,921,908 Cash and investments at end of period $1,208,607 $547,066 $385,080 $2,140,753
NONCASH TRANSACTIONS
Contributions of capital assets $319,538 $154,339 $473,877 Retirement of capital assets ($4,801) ($4,801)
Reconciliation of Operating Income (Loss)
to Cash Flows from Operating Activities:
Operating income (loss) $163,068 ($255,279) ($32,155) ($124,366) Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 265,889 254,587 217,048 737,524
Net change in assets and liabilities:
Accounts payable 127,743 (113,918) (15,000) (1,175)
Accrued liabilities 1,164 1,164
Cash Flows from Operating Activities $557,864 ($114,610) $169,893 $613,147 126
316
CUSTODIAL FUNDS
Custodial Funds report resources, not in a trust, that are held by the City for other parties outside of the City’s reporting entity.
ASSESSMENT DISTRICT 2004-1
This fund accounts for Assessment District 2004-1 special assessment collections and debt service payments.
GENERAL CUSTODIAL FUND
This fund accounts for fees established by the County to fund future County capital facilities from development that are collected via building permits and submitted to the County, as well as assets held on behalf of other agencies for other purposes.
ASSESSMENT DISTRICT 2006-1
This fund accounts for Assessment District 2006-1 special assessment collections and debt service payments.
FIRE PROTECTION DISTRICT
This fund was established to account for impact fees collected from development and submitted to the District.
RECLAMATION DISTRICT #799 (CFD 2022-2)
This fund was established to account for impact fees collected from development and submitted to the District. 127
317
CITY OF OAKLEY
CUSTODIAL FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
Assessment General Assessment Fire
District Custodial District Protection
2004-1 Fund 2006-1 District
ASSETS
Cash and investments $1,926,811 $1,668,406 $1,042,283 $149,480 Cash and investments with fiscal agent 151,650 391,169
Accounts receivable 8
Interest receivable 8,531 4,480
Total Assets 2,086,992 1,668,414 1,437,932 149,480
LIABILITIES
Accounts payable 748,074 162,001
Due to other agencies 920,340
Total Liabilities 1,668,414 162,001
NET POSITION:
Restricted for:
Bondholders or other agencies 2,086,992 1,437,932 (12,521) Total Net Position $2,086,992 $1,437,932 ($12,521)
128
318
Reclamation
District 799
(CFD2022-2) Total
$189,672 $4,976,652
542,819
8 13,011
189,672 5,532,490
189,672 1,099,747
920,340
189,672 2,020,087
3,512,403
$3,512,403
129
319
CITY OF OAKLEY
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
Assessment General Assessment Fire
District Custodial District Protection
2004-1 Fund 2006-1 District
ADDITIONS
Special assessments $1,192,037 $762,672 $335,085
Use of money and properties 73,357 53,835 1,706
Total Additions 1,265,394 816,507 336,791
DEDUCTIONS
Administrative expenses 20,185 11,607
Payments to bondholders and
related fiscal charges 902,080 637,973
Payments to other agencies 349,312
Total Deductions 922,265 649,580 349,312
Change in Net Position 343,129 166,927 (12,521)
Beginning Net Position 1,743,863 1,271,005
Ending Net Position $2,086,992 $1,437,932 ($12,521)
130
320
Reclamation
District 799
(CFD2022-2) Total
$423,840 $2,713,634
128,898
423,840 2,842,532
31,792
1,540,053
423,840 773,152
423,840 2,344,997
497,535
3,014,868
$3,512,403
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322
STATISTICAL SECTION
323
324
STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and wellbeing have changed over time:
1. Net Position by Component
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:
1. Assessed and Estimated Actual Value of Taxable Property
2. Property Tax Rates, All Overlapping Governments
3. Principal Property Tax Payers
4. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:
1. Ratio of Outstanding Debt by Type
2. Computation of Direct and Overlapping Debt
3. Computation of Legal Bonded Debt Margin
4. Bonded Debt Pledged Revenue Coverage, Former Redevelopment Agency Tax Allocation Bonds Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:
1. Demographic and Economic Statistics
2. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:
1. Budgeted Full-Time Equivalent City Government Employees by Function
2. Operating Indicators by Function/Program
3. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.
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326
CITY OF OAKLEY
Net Position by Component (000's)
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Primary government
Governmental activities
Net investment in capital assets $147,685 $153,509 $170,799 $174,868 $185,805 $188,555 $214,187 $221,980 $230,421 $238,068 Restricted 26,651 27,205 31,286 39,006 35,780 39,992 48,461 56,581 59,526 60,747 Unrestricted 13,898 17,784 20,395 19,286 19,877 24,020 33,049 37,422 39,283 42,019 Total governmental activities net position $188,234 $198,498 $222,480 $233,160 $241,462 $252,567 $295,697 $315,983 $329,230 $340,834 $0
$50
$100
$150
$200
$250
$300
$350
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Net of Related Debt Restricted Unrestricted
137
327
CITY OF OAKLEY
Changes in Net Position (000's)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 (a) 2021 2022 2023 2024
Expenses
Governmental Activities:
Legislative $466 $481 $604 $641 $754 $661 $722 $620 $1,107 $998 Administrative Services 1,341 1,220 1,855 1,877 1,971 3,197 3,056 1,236 3,606 3,552 Community Development 1,843 2,152 2,088 3,160 4,019 4,572 3,437 3,782 4,819 4,648 Public Works 10,640 11,478 11,818 12,200 12,969 13,198 21,437 (b) 16,987 20,107 20,386 Housing Programs 45 85 3 3 4 4 3 3 3 3
Law Enforcement 8,314 8,230 8,066 9,097 9,567 10,257 10,139 10,005 12,909 13,584 Recreation 524 560 562 629 771 662 653 723 1,034 1,065
Interest and fiscal charges 301 292 476 400 390 378 373 349 344 333 Total Governmental Activities Expenses 23,474 24,498 25,472 28,007 30,445 32,929 39,820 33,705 43,929 44,569 Total Primary Government Expenses $23,474 $24,498 $25,472 $28,007 $30,445 $32,929 $39,820 $33,705 $43,929 $44,569 Program Revenues
Governmental Activities:
Charges for Services:
Administrative Services $252 $395 $521 $549 $399 $889 $1,736 $1,240 $807 $488 Community Development 1,375 2,133 2,151 3,137 2,759 3,312 4,785 3,832 3,464 2,783 Public Works 3,592 3,951 4,245 4,764 5,206 5,571 7,021 7,962 8,851 9,159 Law Enforcement 3,506 3,638 4,068 4,426 4,887 5,408 5,551 6,480 7,381 7,910 Recreation 73 98 126 166 189 583 281 334 316 422
Operating Grants and Contributions 1,714 1,356 1,309 1,619 2,090 2,246 2,895 3,549 3,475 5,462 Capital Grants and Contributions 2,715 5,040 10,324 10,562 8,430 10,090 45,155 16,125 12,072 6,672 Total Government Activities
Program Revenues 13,227 16,611 22,744 25,223 23,960 28,099 67,424 39,522 36,366 32,896 Total Primary Government
Program Revenues $13,227 $16,611 $22,744 $25,223 $23,960 $28,099 $67,424 $39,522 $36,366 $32,896 Net (Expense)/Revenue
Governmental Activities ($10,247) ($7,887) ($2,728) ($2,784) ($6,485) ($4,830) $27,604 $5,817 ($7,563) ($11,673) Total Primary Government Net Expense ($10,247) ($7,887) ($2,728) ($2,784) ($6,485) ($4,830) $27,604 $5,817 ($7,563) ($11,673) General Revenues and Other
Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $5,331 $5,814 $6,233 $6,918 $7,435 $7,965 $8,569 $8,821 $9,997 $10,631 Sales Taxes 1,506 1,753 1,774 1,826 2,041 2,183 2,485 3,246 3,260 3,147 Transient Occupancy Tax 196 210 267 276 270 233 240 261 262 264 Nonregulatory Franchise and Business 1,418 1,584 1,686 1,877 1,934 2,042 2,234 2,475 2,645 2,930 Intergovernmental, unrestricted:
Motor Vehicle In-Lieu 16 16 18 22 20 33 31 50 46 55
Other 186 2
Interest Earnings and Use of Property 519 557 563 881 1,645 1,573 756 (1,578) 2,776 5,076 Gain on Sale of Property 455 7
Other 1,056 1,890 1,340 1,665 1,440 1,907 1,210 1,194 1,369 1,167 Extraordinary / Special Item 362 (c) 6,327 (d) 14,642 (d) Total Government Activities 10,404 18,151 26,709 13,465 14,787 15,936 15,525 14,469 20,810 23,277 Total Primary Government $10,404 $18,151 $26,709 $13,465 $14,787 $15,936 $15,525 $14,469 $20,810 $23,277 Change in Net Position
Governmental Activities $157 $10,264 $23,981 $10,681 $8,302 $11,106 $43,129 $20,286 $13,247 $11,604 Total Primary Government $157 $10,264 $23,981 $10,681 $8,302 $11,106 $43,129 $20,286 $13,247 $11,604 NOTES:
(a) Revenues were reclassified in fiscal year 2019-20. Prior years have not been revised. (b) The City conveyed a completed fire station project totaling $3.3 million to the East Contra Costa County Fire Protection District which was recorded as an expenditure in the Statement of Activities. (c) Pursuant to a settlement agreement with the Department of Finance, the City transferred assets to the Successor Agency and the Successor Agency transferred assets to the City. (d) Pursuant to the Long Range Property Management Plan, the Successor Agency transferred assets to the City. 138
328
CITY OF OAKLEY
Fund Balances of Governmental Funds (000's)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable $4,375 $7,000 $4,741 $4,704 $4,793 $4,104 $3,512 $3,537 $3,520 $3,516 Restricted 559 559 559 202 429 644 1,110 974 1,047 1,165 Assigned 170 943 626 4,257 3,919 5,960 6,922 11,750 4,589 10,520 Unassigned 7,938 9,068 8,769 7,172 7,796 7,342 12,791 10,381 16,585 17,711 Total General Fund $13,042 $17,570 $14,695 $16,335 $16,937 $18,050 $24,335 $26,642 $25,741 $32,912 (a) All Other Governmental Funds
Nonspendable $18
Restricted $17,525 $17,593 $24,517 $31,783 $24,004 $27,615 $37,235 45,152 $47,795 $48,770 Assigned 829 622 4,434 3,132 3,543 6,625 7,770 6,869 12,412 8,515 Unassigned (1,374) (1,401) (1,046) (1,039) (993) (920) (923) (931) (943) (962) Total all other governmental funds $16,980 $16,814 $27,905 $33,876 $26,554 $33,320 $44,082 $51,108 $59,264 $56,323 (a) NOTES:
(a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis. $0
$10
$20
$30
$40
$50
$60
$70
$80
$90
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Reserved / Restricted Nonspendable Assigned Unreserved / Unassigned 139 329
CITY OF OAKLEY
Changes in Fund Balance of Governmental Funds (000's)
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues
Taxes $8,331 $9,213 $10,179 $11,499 $12,484 $13,663 $15,955 $17,836 $19,895 $20,518 Licenses, permits and fees 1,285 2,024 2,348 2,562 1,772 2,331 4,740 3,816 2,927 2,212 Fines and forfeitures 135 138 133 133 129 105 77 106 70 93 Use of money and property 319 563 366 640 1,359 1,383 509 (1,451) 2,647 5,035 Intergovernmental revenues 2,651 3,030 3,015 3,757 5,092 2,961 3,171 4,197 4,874 6,593 Charges for services 9,259 11,578 14,635 16,131 12,490 18,283 24,184 22,209 17,301 16,744 Other 1,116 1,867 1,320 4,835 2,578 2,563 2,938 1,392 1,403 1,178 Total Revenues 23,096 28,413 31,996 39,557 35,904 41,289 51,574 48,105 49,117 52,373 Expenditures
Current:
Legislative 449 482 614 612 730 683 728 875 960 921
Administrative services 1,287 1,335 1,709 1,419 1,586 3,238 2,961 2,291 2,514 2,936 Community development 1,821 2,274 2,113 3,081 3,959 4,608 4,351 4,899 4,715 4,635 Public works 4,661 5,651 5,921 6,053 6,373 6,093 8,044 9,683 10,215 10,002 Housing programs 5 85 3 3 3 4 3 3 3 3
Law enforcement 7,975 8,098 8,038 9,202 9,779 9,807 9,772 10,610 11,978 13,541 Recreation 522 566 575 607 750 687 660 925 912 1,034
Estimated reduction in value
of property held for resale 40
Capital outlay 5,293 7,969 6,397 10,279 18,747 7,591 7,329 8,928 10,317 15,278 Debt service:
Principal repayment 265 275 6,725 275 280 295 305 315 330 345 Interest and fiscal charges 306 299 621 417 417 403 375 361 372 382 Total Expenditures 22,624 27,034 32,716 31,948 42,624 33,409 34,528 38,890 42,316 49,077 Excess (deficiency) of revenues over
(under) expenditures 472 1,379 (720) 7,609 (6,720) 7,880 17,046 9,215 6,801 3,296 Other Financing Sources (Uses)
Transfers in 2,227 2,311 6,091 3,747 2,891 3,933 3,028 6,550 10,285 3,189 Transfers (out) (2,227) (2,311) (6,091) (3,747) (2,891) (3,933) (3,028) (6,550) (10,285) (3,189) Proceeds (loss) from sale of property 10 79 50 120 453 934 Lease revenue bonds issued 10,025
Bond issuance premium 157
Total other financing sources (uses) 10 79 10,232 120 453 934 Special item (274) 2,904 (1,294)
Net Change in fund balances $208 $4,362 $8,218 $7,609 ($6,720) $7,880 $17,046 $9,335 $7,254 $4,230 Debt service as a percentage of
noncapital expenditures 3.3% 3.0% 27.9% 3.2% 2.9% 2.7% 2.5% 2.3% 2.2% 2.2% 140
330
CITY OF OAKLEY
ASSESSED AND ESTIMATED ACTUAL
VALUE OF TAXABLE PROPERTY (MILLIONS)
LAST TEN FISCAL YEARS
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b) 2015 $2,869 $112 $11 $131 $3,123 $38 $3,161 $3,161 1%
2016 3,105 112 11 147 3,375 42 3,417 3,417 1%
2017 3,314 130 11 190 3,645 48 3,693 3,693 1%
2018 3,639 142 11 166 3,958 58 4,016 4,016 1%
2019 3,997 148 45 143 4,333 53 4,386 4,386 1%
2020 4,272 153 56 196 4,677 70 4,747 4,747 1%
2021 4,528 165 64 233 4,990 70 5,060 5,060 1%
2022 4,841 173 120 227 5,361 75 5,436 5,436 1%
2023 5,589 185 244 217 6,235 97 6,332 6,332 1%
2024 6,017 192 319 211 6,739 131 6,870 6,870 1%
Source: Contra Costa County Auditor Controller Office Certificate of Assessed Valuations Notes:
(a) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus the value of any new construction, plus an increment of no more than two percent annually. These values are considered to be full market values. (b) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.
The City of Oakley includes 44 tax rate areas.
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Unsecured Property Secured Property
141
331
CITY OF OAKLEY
PROPERTY TAX RATES
ALL OVERLAPPING GOVERNMENTS
(Rate Per $100 of Assessed Value)
LAST TEN FISCAL YEARS
Basic East Bay Oakley Liberty Brentwood Contra Antioch
County Regional Union Union Elementary Contra Costa Costa Unified Fiscal Wide Park School School School Community Water School Year Levy District District District District College BART Land Levy District Total 2015 $1.0000 $0.0085 $0.0614 $0.0273 $0.0522 $0.0252 $0.0045 $0.0037 $0.0764 $1.2592 2016 1.0000 0.0067 0.0583 0.0237 0.0447 0.0220 0.0026 0.0035 0.0912 1.2527 2017 1.0000 0.0032 0.0433 0.0217 0.0698 0.0120 0.0080 0.0032 0.0864 1.2476 2018 1.0000 0.0021 0.0693 0.0450 0.0635 0.0114 0.0084 0.0030 0.0824 1.2851 2019 1.0000 0.0021 0.0641 0.0414 0.0445 0.0110 0.0070 0.0028 0.0870 1.2599 2020 1.0000 0.0094 0.0585 0.0399 0.0617 0.0188 0.0120 0.0026 0.0843 1.2872 2021 1.0000 0.0014 0.0527 0.0370 0.0445 0.0161 0.0139 0.0025 0.0789 1.2470 2022 1.0000 0.0020 0.0565 0.0360 0.0441 0.0176 0.0060 0.0023 0.0682 1.2327 2023 1.0000 0.0058 0.0441 0.0269 0.0498 0.0162 0.0140 0.0021 0.0804 1.2393 2024 1.0000 0.0057 0.0341 0.0283 0.0462 0.0146 0.0134 0.0020 0.0801 1.2244 Source: Contra Costa County Auditor-Controller
$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
$1.2
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Per Hundred $
Antioch Unified School District Brentwood Elementary School District Contra Costa Community College Liberty Union School District East Bay Regional Park District Oakley Union School District BART Contra Costa Water Land Levy Basic County Wide Levy 142
332
CITY OF OAKLEY
Principal Property Tax Payers
Current Year and Nine Years Ago
2023-24 2014-15
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
NP Oakley LLC $137,734,338 1 2.00%
(Pending Appeals On Parcels)
ET Oakley LLC 86,053,320 2 1.25%
(Pending Appeals On Parcels)
Amazon Com Services LLC 41,609,960 3 0.61%
ACD TI Oakley LLC 35,627,146 4 0.52%
NPIF IV Oakley Building II LLC 30,602,882 5 0.45%
Elm Lake Oakley 27,048,980 6 0.39%
Oakley Self Storage LP 24,256,671 7 0.35%
Cypress Square Commercial LLC 21,327,856 8 0.31%
Reclamation District 799 18,156,000 9 0.26%
Stonewood Oakley LLC 16,685,940 10 0.24%
East County Communities LLC $23,045,781 1 0.73%
Cypress Square-S and R Associates 18,101,126 2 0.57%
Hui Y. Sefton 12,797,100 3 0.40%
Neroly Sports Club Investors 11,636,425 4 0.37%
Lucky No Cal Investor LLP 8,385,446 5 0.27%
Shea Homes LP 8,271,800 6 0.26%
Shurgard Storage Centers Inc. 7,411,923 7 0.23%
BMS Investments 3 LLC 6,310,604 8 0.20%
HPH Properties LLP 6,156,745 9 0.19%
Simon-Oakley Town Center LLC 6,119,300 10 0.19%
Subtotal $439,103,093 6.39% $108,236,250 3.42%
Total Net Assessed Valuation:
Fiscal Year 2023-2024 $6,870,000,000
Fiscal Year 2014-2015 $3,161,000,000
Source: HdL Companies (Contra Costa County Assessor Combined Tax Rolls and the SBE Non Unitary Tax Roll) 143
333
CITY OF OAKLEY
PROPERTY TAX LEVIES AND COLLECTIONS (THOUSANDS)
LAST TEN FISCAL YEARS
212
212
213
Percent
of Total
Current Percent Delinquent Total Tax
Fiscal Total Tax of Levy Tax Tax Collections
Year Tax Levy (a) Collections Collected Collections Collections to Tax Levy 2015 $2,364 $2,364 100.0% (a) $2,364 100.0%
2016 2,593 2,593 100.0% (a) 2,593 100.0%
2017 2,853 2,853 100.0% (a) 2,853 100.0%
2018 3,145 3,145 100.0% (a) 3,145 100.0%
2019 3,443 3,443 100.0% (a) 3,443 100.0%
2020 3,741 3,741 100.0% (a) 3,741 100.0%
2021 3,976 3,976 100.0% (a) 3,976 100.0%
2022 4,287 4,287 100.0% (a) 4,287 100.0%
2023 5,120 5,120 100.0% (a) 5,120 100.0%
2024 5,374 5,374 100.0% (a) 5,374 100.0%
Source: City of Oakley Records
NOTES: Amounts reported above include only the 1% basic property taxes allocated to the City. They do not include special taxes, assessments, or property taxes received in lieu of vehicle license fees. (a) The County apportions taxes under the alternative method of apportionment authorized under Revenue & Taxation Code sections 4701 et seq, under which the County provides the City with 100% of its tax levy.
The County retains any penalty and delinquency charges collected. $0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
$1,600.0
$1,800.0
$2,000.0
$2,200.0
$2,400.0
$2,600.0
$2,800.0
$3,000.0
$3,200.0
$3,400.0
$3,600.0
$3,800.0
$4,000.0
$4,200.0
$4,400.0
$4,600.0
$4,800.0
$5,000.0
$5,200.0
$5,400.0
$5,600.0
$5,800.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Tax Collections Total Tax Levy (a)
144
334
CITY OF OAKLEY
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities (in thousands)
Lease Percentage
Fiscal Certificates of Revenue of Personal Per
Year Participation Bonds Total Income (a) Capita (a)
2015 $6,690 $0 $6,690 0.66% $175
2016 6,415 0 6,415 0.61% 160
2017 0 9,715 9,715 0.90% 236
2018 0 9,440 9,440 0.86% 226
2019 0 9,160 9,160 0.76% 219
2020 0 8,865 8,865 0.70% 209
2021 0 8,560 8,560 0.63% 200
2022 0 8,245 8,245 0.58% 185
2023 0 7,915 7,915 0.51% 176
2024 0 7,570 7,570 0.42% 166
Notes : Debt amounts exclude any premiums, discounts, or other amortization amounts.
Sources: City of Oakley
(a) See the Demographic Statistics schedule for personal income and population data. 145
335
CITY OF OAKLEY
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2024
2023-24 Assessed Valuation, Excluding the Redevelopment Agency: $6,869,712,376 Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/24 % Applicable (1) Debt 6/30/24 Bay Area Rapid Transit District $2,445,575,000 0.680% $16,629,910 Contra Costa Community College District 618,770,000 2.569% 15,896,201 Antioch Unified School District School Facilities Improvement District 94,904,585 10.037% 9,525,573 Liberty Union High School District 131,485,000 21.156% 27,816,967 Brentwood Union School District 101,045,135 0.123% 124,286 Oakley Union School District 35,745,000 86.140% 30,790,743 East Bay Regional Park District 144,520,000 1.069% 1,544,919 California Statewide Community Development Authority Assessment Districts 37,868,000 100.000% 37,868,000 City of Oakley 1915 Act Bonds 14,489,000 100.000% 14,489,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $154,685,599
DIRECT AND OVERLAPPING GENERAL FUND:
Contra Costa County General Fund Obligations $171,495,000 2.561% 4,391,987 Antioch Unified School District Certificates of Participation 19,252,546 8.017% 1,543,477 City of Oakley Lease Revenue Bonds 7,570,000 100.000% 7,570,000 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 13,505,464 Less: Contra Costa County supported obligations 1,089,062 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $12,416,402 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): $20,120,000 100.000% $20,120,000 TOTAL DIRECT DEBT $7,570,000
TOTAL GROSS OVERLAPPING DEBT $180,741,063
TOTAL NET OVERLAPPING DEBT $179,652,001
GROSS COMBINED TOTAL DEBT $188,311,063 (2)
NET COMBINED TOTAL DEBT $187,222,001
(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.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations.
Ratios to 2023-24 Assessed Valuation:
Direct Debt ($7,570,000)…................................................................ 0.11% Overlapping Tax and Assessment Debt….............................................. 2.25% Gross Combined Total Debt................................................................... 2.74% Net Combined Total Debt...................................................................... 2.73% Ratio to Successor Agency Redevelopment Incremental Valuation ($928,174,175):
Overlapping Tax Increment Debt…........................................................ 2.17% Source: CalMuni
NOTE: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. 146
336
CITY OF OAKLEY
COMPUTATION OF LEGAL BONDED DEBT MARGIN
JUNE 30, 2023
ASSESSED VALUATION:
Secured property assessed value, net of
exempt real property $6,870,000,000
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $257,625,000 AMOUNT OF DEBT SUBJECT TO LIMIT:
Total Bonded Debt $0
Less Tax Allocation Bonds and Sales Tax Revenue
Bonds, Certificate of Participation not subject to limit 0 Amount of debt subject to limit 0
LEGAL BONDED DEBT MARGIN $257,625,000
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2015 $118,537,500 $0 $118,537,500 0.00%
2016 128,137,500 0 128,137,500 0.00%
2017 138,487,500 0 138,487,500 0.00%
2018 150,600,000 0 150,600,000 0.00%
2019 164,475,000 0 164,475,000 0.00%
2020 195,262,500 0 195,262,500 0.00%
2021 208,012,500 0 208,012,500 0.00%
2022 203,850,000 0 203,850,000 0.00%
2023 237,450,000 0 237,450,000 0.00%
2024 257,625,000 0 257,625,000 0.00%
NOTES:
(a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
147
337
CITY OF OAKLEY
BONDED DEBT PLEDGED REVENUE COVERAGE
FORMER REDEVELOPMENT AGENCY TAX ALLOCATION BONDS
LAST TEN FISCAL YEARS
Tax Debt Service Requirements
Fiscal Increment
Year Revenue (a) Principal Interest Total Coverage
2015 $2,525,004 $660,000 (b) $1,555,802 (b) $2,215,802 1.14 2016 2,133,349 425,000 (b) 1,310,054 (b) 1,735,054 1.23 2017 1,976,225 465,000 (b) 1,337,150 (b) 1,802,150 1.10 2018 2,093,153 510,000 (b) 1,317,650 (b) 1,827,650 1.15 2019 1,963,996 245,000 (b) (c) 1,101,416 (b) (c) 1,346,416 1.46 2020 1,982,174 540,000 (b) 1,017,321 (b) (c) 1,557,321 1.27 2021 1,933,455 815,000 (b) 994,885 (b) 1,809,885 1.07
2022 2,065,052 845,000 (b) 955,694 (b) 1,800,694 1.15
2023 2,086,738 880,000 (b) 918,100 (b) 1,798,100 1.16
2024 2,086,169 920,000 (b) 880,467 (b) 1,800,467 1.16
(a) Beginning in fiscal year 2012, tax increment reported in this table is the amount calculated by the County Auditor-Controller. Under the provisions of the laws dissolving the Redevelopment Agency, the Successor Agency only receives the funds necessary to fulfill its approved obligations. (b) Debt service is paid by the Successor Agency.
(c) The Successor Agency refunded the 2008 Subordinate Tax Allocation Bonds in fiscal year 2019 with the issuance of the 2018 Tax Allocation Refunding Bonds.
Source: City of Oakley Annual Financial Statements
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Tax Increment Revenue Debt Service Payment
148
338
CITY OF OAKLEY
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Contra
Total Per Capita Costa City
Fiscal City Personal Personal Unemployment County Population Year Population Income Income Rate (%) (a) Population % of County 2015 38,124 $1,010,134,000 $26,496 7.7% $1,088,764 3.54% 2016 40,141 1,046,700,000 26,075 6.2% 1,102,684 3.50%
2017 41,199 1,074,714,000 26,085 5.5% 1,123,429 3.64%
2018 41,742 1,102,345,000 26,408 4.2% 1,149,363 3.67%
2019 41,759 1,197,857,000 28,684 3.5% 1,155,879 3.61%
2020 42,461 1,271,727,000 29,950 3.6% 1,153,526 3.68%
2021 42,895 1,366,625,000 31,859 9.9% 1,165,927 3.68%
2022 44,533 1,427,927,000 32,064 7.4% 1,156,555 3.85%
2023 44,995 1,558,005,000 34,626 4.3% 1,147,653 3.92%
2024 45,736 1,791,622,000 39,173 4.6% 1,146,626 3.99%
(a) Data reported is for the prior calendar year.
Sources: HdL Coren & Cone
U.S. Department of Commerce, California State Department of Finance, Employment Development Department U.S. Census Bureau latest available data
0.00%
2.50%
5.00%
7.50%
10.00%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Unemployment Rate (%)
2.00%
2.50%
3.00%
3.50%
4.00%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
City Population as a % of County Population
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
$1,800
$1,900
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Total Personal Income
$10
$15
$20
$25
$30
$35
$40
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Per Capita Personal Income
149 339
CITY OF OAKLEY
Principal Employers
Current Year and Nine Years Ago
2023-24 2014-15
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment Amazon.com Services LLC 984 1 22.9%
Oakley Union Elementary School District 592 2 13.8% 438 1 20.5% Pet Food Express 72 3 1.7%
Skipolini's 64 4 1.5%
McDonalds #12565 55 5 1.3% 31 7 1.5%
Lucky's 51 6 1.2% 54 3 2.5%
Raley's 38 7 0.9% 51 4 2.4%
Bear Buddies, Inc. 37 8 0.9%
Dutch Bros Coffee 35 9 0.8%
Dependable Roofing 35 10 0.8%
Taco Bell #30767 35 10 0.8%
Foundation Constructors Inc 30 10 0.7% 32 6 1.5%
Diamond Hills Sports Club and Spa 55 2 2.6%
Continente Nut LLC 42 5 2.0%
Ironhouse Sanitary 32 6 1.5%
Delta Black Bear Diner 31 7 1.5%
Rain for Rent 28 8 1.3%
Oakley Ace Hardware 26 9 1.2%
Round Table Pizza 25 10 1.2%
BMS Investments, LLC, DBA Comfort Suites 25 10 1.2%
Jack in the Box 578 25 10 1.2%
Subtotal 2,028 47.2% 895 41.9%
Total City Day Population (A) 4,294 2,137
Source: City of Oakley Finance Department - Business Licenses Notes:
(A) Total City Day Population is the number of employees reported on business license applications by businesses located in Oakley. 150
340
CITY OF OAKLEY
Budgeted Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
Adopted for Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
General government* 12.08 12.89 13.36 14.13 14.61 15.92 15.82 16.49 17.23 18.23 Community development:
Public works* 12.46 14.74 14.78 15.03 16.13 16.13 15.13 15.71 15.23 16.80 Planning 1.75 2.00 2.00 2.50 2.80 3.00 2.90 3.00 3.00 3.00 Building & Safety* 5.50 6.25 6.33 6.60 6.68 7.46 8.90 8.35 8.40 8.40 Law enforcement* 31.48 31.73 34.88 39.88 39.98 40.63 40.26 43.96 48.00 49.52 Recreation 5.37 5.78 6.16 6.64 8.60 8.60 7.77 11.08 11.08 8.23 Total 68.64 73.39 77.51 84.78 88.80 91.74 90.78 98.59 102.94 104.18 Notes:
Amounts reported are Full Time Equivalent (FTEs).
n/a means not available.
* The City Contracts for the following services:
City Attorney and IT services are contracted with an outside firm and included in the General Government total.
Police Services were contracted with the County Sheriff through April 30, 2016 and include contracting for a specific number of officers.
Police Records Supervisory services are contracted with an outside firm.
Building Inspection and Engineering Services were contracted with an outside firm until October 2013.
Source: City of Oakley Operating Budgets
0 20
40 60
80 100
120
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
FTE's
General government* Law enforcement* Public works* Planning Recreation Building & Safety* 151
341
CITY OF OAKLEY
Operating Indicators by Function/Program
Last Ten Fiscal Years
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
Law enforcement:
Police (a) (b):
Violent crimes 46 52 54 51 59 33 29 127 133 82
Property crimes 429 615 491 511 465 537 554 580 553 545 Public Works:
Street resurfacing (miles) 8.62 0.25 0.42 8.50 1.40 5.60 1.50 3.80 4.50 0.00 Leisure Services:
Recreation:
Recreation activities participants 29,630 32,386 36,430 35,417 (c) 33,996 36,832 8,341 (d) 32,309 44,773 47,907 Source: City of Oakley
Notes:
(a) 2014 - 2017 data is prior calendar year's; 2018 is for fiscal year end. (b) Data from FB1 Uniformed Crime Reports (UCR)
(c) No indoor facility rentals with construction of Recreation Center (d) Large decrease due to COVID 19 Pandemic
152
342
CITY OF OAKLEY
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year Ended June 30,
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/Program
Law enforcement:
Police stations 1111 1 11111
Police patrol vehicles 26 28 29 28 23 27 29 29 31 31
Public works:
Miles of streets 131.00 133.00 136.00 136.00 139.00 141.00 142.00 142.00 143.00 143.00 Street lights 3,050 3,104 3,200 3,200 3,285 3,314 3,347 3,347 3,362 3,362 Traffic Signals 33 34 35 36 37 38 39 40 40 40
Recreation:
Community services:
City parks 31 32 33 34 36 37 37 37 37 37
City parks acreage 102.5 108.0 113.0 116.0 119.0 121.0 121.0 121.0 121.0 121.0 Community centers 2 1 1 0 (a) 1 (a) 1 1 1 1 1
Baseball/softball diamonds 8 8 9 9 10 10 10 10 10 10
Soccer/football fields 7899 9 99999
Skate features 3333 3 11111
BMX dirt track 0000 0 00000
Source: City of Oakley
Notes:
(a) Oakley Recreation Building closed for construction of Recreation Center. 153
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344
OTHER AUDIT REPORT
345
346
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Oakley, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the City of Oakley, California, as of and for the year ended June 30, 2024, and have issued our report thereon dated November 25, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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 or significant deficiencies may exist that have not been identified.
157
347
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
We have also issued a separate Memorandum on Internal Control dated November 25, 2024 which is an integral part of our audit and should be read in conjunction with this report.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
November 25, 2024
158
348
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED
JUNE 30, 2024
349
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350
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2024
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1 Schedule of Other Matters ....................................................................................................................... 3 Current Status of Prior Significant Deficiencies ..................................................................................... 7 Current Status of Prior Year Other Matters ........................................................................................... 11 351
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352
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of Oakley, California
In planning and performing our audit of the basic financial statements of the City of Oakley, California, as of and for the year ended June 30, 2024, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing our audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis.
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. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. 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.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.
This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.
Pleasant Hill, California
November 25, 2024
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CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We cite them here to keep you informed of developments:
EFFECTIVE FISCAL YEAR 2024/25:
GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.
GASB 102 – Certain Risk Disclosures
State and local governments face a variety of risks that could negatively affect the level of service they provide or their ability to meet obligations as they come due. Although governments are required to disclose information about their exposure to some of those risks, essential information about other risks that are prevalent among state and local governments is not routinely disclosed because it is not explicitly required. The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.
This Statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government’s highest level of decision-making authority. Concentrations and constraints may limit a government’s ability to acquire resources or control spending.
This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.
If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions of the following:
• The concentration or constraint.
• Each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements. • Actions taken by the government prior to the issuance of the financial statements to mitigate the risk. 3 355
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2025/26:
GASB 103 – Financial Reporting Model Improvements
The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.
Management’s Discussion and Analysis
This Statement continues the requirement that the basic financial statements be preceded by management’s discussion and analysis (MD&A), which is presented as required supplementary information (RSI). MD&A provides an objective and easily readable analysis of the government’s financial activities based on currently known facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions.
Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed. This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that “boilerplate” discussions should be avoided by presenting only the most relevant information, focused on the primary government. In addition, this Statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units.
Unusual or Infrequent Items
This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows.
Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, and (5) investment income and expenses.
4 356
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 103 – Financial Reporting Model Improvements (Continued) In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies are defined as (1) resources received from another party or fund (a) for which the proprietary fund does not provide goods and services to the other party or fund and (b) that directly or indirectly keep the proprietary fund’s current or future fees and charges lower than they would be otherwise, (2) resources provided to another party or fund (a) for which the other party or fund does not provide goods and services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or future pricing policies, and (3) all other transfers.
Budgetary Comparison Information
This Statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI.
How the Changes in This Statement Will Improve Financial Reporting The requirements for MD&A will improve the quality of the analysis of changes from the prior year, which will enhance the relevance of that information. They also will provide clarity regarding what information should be presented in MD&A.
The requirements for the separate presentation of unusual or infrequent items will provide clarity regarding which items should be reported separately from other inflows and outflows of resources.
The definitions of operating revenues and expenses and of nonoperating revenues and expenses will replace accounting policies that vary from government to government, thereby improving comparability. The addition of a subtotal for operating income (loss) and noncapital subsidies will improve the relevance of information provided in the proprietary fund statement of revenues, expenses, and changes in fund net position.
The requirement for presentation of major component unit information will improve comparability.
The requirement that budgetary comparison information be presented as RSI will improve comparability, and the inclusion of the specified variances and the explanations of significant variances will provide more useful information for making decisions and assessing accountability. 5 357
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2026/27:
GASB 104 – Disclosure of Certain Capital Assets
State and local governments are required to provide detailed information about capital assets in notes to financial statements. GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis— for State and Local Governments, requires certain information regarding capital assets to be presented by major class. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets.
This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with GASB Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with GASB Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.
This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset.
How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability. Additionally, the disclosure requirements will im-prove consistency and comparability between governments.
6 358
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
SIGNIFICANT DEFICIENCIES
2023-01 Accurate Year-End Close and Trial Balance Review The year-end financial closing and preparation of the general ledger data should be completed timely and accurately. In addition, well-managed organizations should develop a plan to ensure that adequate resources will remain available in the event of employee departures. Part of that is ensuring there are resources available to be utilized on short notice to fill gaps in key positions, especially in the Finance Department. These resources need to be in place throughout the fiscal year to ensure accounting processes and procedures continue and allow time for analysis of account balances and activities.
When the general ledger was provided for audit, we noted that five funds, including the General Fund and, did not balance in the trial balance report in the total amount of $109,419, and we also noted that the beginning fund balance of the General Fund did not agree to the prior year ending fund balance by an additional $1.141 million.
In addition, during the year-end audit, City staff provided fifteen post-closing adjustments, some of which were known at the start of the audit and some that were discovered as the audit progressed.
We understand the beginning fund balance issues were caused by new accounts that were created during the prior year end closing that did not properly transition when the final year end closing procedures were performed to create the current year beginning balances. However, that error went undetected throughout fiscal year 2023, until the general ledger was provided for audit. We understand the significant number of post-closing adjustments were a byproduct of staff turnover in the Finance Department that put the closing procedures behind and did not allow time to complete the analysis of balances prior to providing the general ledger for audit.
When the general ledger accounts and funds are out of balances, it increases the risk that errors or misstatements may go undetected by staff and corrections may not be made in a timely manner. In addition, interim reports provided to City Council or other internal and external parties may be inaccurate.
The City should develop procedures to ensure that the general ledger funds are in balance at all times and that the beginning balances in the general ledger agree to the prior year ending balances in the audited financial statements. In addition, the City must develop procedures to ensure that accounts are analyzed throughout the fiscal year and after the year end close to ensure that all funds are in balance and additional closing entries are not required prior to providing the general ledger for audit.
Current Status:
Implemented
7 359
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
SIGNIFICANT DEFICIENCIES
2023-02 Timely Preparation of Bank Reconciliations
Bank account and investment reconciliations are one of the most important internal controls a City can have, and the reconciliation cannot be considered complete until it has been reviewed and approved. To be an effective control, reconciliations and the associated review should be completed in their entirety as soon as reasonably possible after each month-end, usually within thirty to forty-five days of the bank statement date.
The City normally prepares two bank reconciliations per month. We selected three months of bank and investment reconciliations for testing of timely preparation and review and noted that five of the six reconciliations were not prepared timely as follows:
• August 2022 general checking account reconciliation was prepared and reviewed on December 22, 2022. • December 2022 Successor Agency bank reconciliation was prepared on March 13, 2023 and reviewed on March 15, 2023.
• December 2022 general checking account reconciliation was prepared and reviewed on April 28, 2023. • June 2023 Successor Agency bank reconciliation was prepared and reviewed on September 13, 2023. • June 2023 general checking bank reconciliation was prepared and reviewed on October 23, 2023.
We understand the City experienced staff turnover during the past two years, which shifted priorities for existing staff to other tasks and delayed the bank reconciliation process.
By not completing and reviewing the bank reconciliations timely, accounting errors, misstatements and/or unauthorized activities may not be identified or corrected in a timely manner and could continue to accumulate to amounts that cannot be identified and resolved.
The City must implement procedures to ensure the timely preparation and review of bank reconciliations throughout the fiscal year.
Current Status:
Implemented.
8 360
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
SIGNIFICANT DEFICIENCIES
2023-03 Inaccurate Customer Fees Charged
The rates charged in the City’s permit billing system should be consistent with the City’s Master Fee Schedule approved by the City Council. And, permit fee calculations should be reviewed for accuracy.
We tested twenty-five receipts and recalculated the fees using the City’s Master Fee Schedule, but we were unable to recalculate the fees for eight permits tested. After discussing the issue with City staff, we found that the differences noted were in the Strong Motion Instrumentation Program (SMIP) Fee, and Construction and Demolition Debris Recycling (C&D) Fee. The SMIP fee for the eight permits was charged at the 2019 rate, rather than the 2023 or other applicable rate, depending on when the permit was initiated, and for one of those permits, the C&D fee charged was $37.00, but the fee should have been $41.00.
Although the increase in the fees is not significant, we understand the SMIP issue has gone undetected since 2019, and City staff estimates the amount undercharged to be approximately $16 thousand over that time. And, it appears the C&D fee was not updated in the permit system to reflect the current rate.
We understand that staff responsible for calculating the permit fees were not aware of the changes to the Master Fee Schedule.
Update for June 30, 2024: City staff estimates the amount undercharged to be approximately $544 from July to December 2023. We understand the City updated the fee in the building permit system in January 2024, so we selected one January 30, 2024 permit for testing of that fee and noted the correct fee was charged.
Errors in fee calculations or charging fees that are not in accordance with the Master Fee Schedule approved by the City Council could result in undercharging or overcharging customers and an understatement or overstatement of revenue.
The City should develop procedures to ensure that building permit fees are charged based on the current Master Fee Schedule.
Current Status:
Implemented effective January 1, 2024.
9 361
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
SIGNIFICANT DEFICIENCIES
2022-01 Compliance with Transportation Development Act Audit Requirements Transportation Development Act (TDA) grant funding received from the Metropolitan Transportation Commission (MTC) requires an audit when expenditures are incurred and/or when funding is requested from MTC. In addition, grant reimbursement requests should be reviewed by someone other than the preparer prior to mailing, including those for grant reimbursement requests.
During the fiscal year 2022 audit, we noted that the City received a payment of $130,000 from MTC and we inquired about whether a TDA audit was needed. Upon further research by Finance staff, it was determined that the funding was related to a reimbursement request filed for fiscal year 2021 expenditures, and the TDA grant funding had been accrued as accounts receivable and revenue at June 30, 2021. Therefore, the City should have undergone a TDA compliance audit for the year ended June 30, 2021, but no such audit was completed.
We understand that the Finance Department was not made aware of the TDA grant until fiscal year 2022, when the grant accrual was made during the fiscal year 2022 audit, and that City staff was also not aware that the grant was subject to a compliance audit. As a result, the City is not in compliance with the TDA compliance audit requirements of MTC.
We also understand that grant billings are prepared by the applicable department staff, but the billings are not reviewed by someone other than the preparer until the Finance Department staff reviews it when the receivable is collected.
The City should develop procedures to ensure that TDA audits are completed when grant expenditures are incurred and/or reimbursement is requested from MTC. In addition, the City should review all outstanding grant agreements to determine whether the City is in compliance with any associated audit requirements. Finally, the City should develop procedures to ensure that grants receivable billings are reviewed by someone other than the preparer prior to mailing.
Current Status:
Implemented
10 362
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
OTHER MATTERS
2023-04 Investment Policy Compliance
Section 15, Investment Policy Review, of the City’s Statement of Investment Policy and California Government Code Section 53646 require the annual review and adoption of the Investment Policy.
The City’s Statement of Investment Policy was adopted by City Council on March 28, 2023, but that is more than one year from the prior adoption on September 21, 2021.
We understand the delay was due to turnover of City staff.
The City is not in compliance with the annual review and adoption requirements of the Statement of Investment Policy.
The City should develop procedures to ensure the Statement of Investment Policy is reviewed and adopted by City Council timely – within a year of the prior adoption.
Current Status:
Implemented.
2023-05 Fee Documentation
Documentation of the basis of fees charged to customers should be checked for accuracy to ensure the City is receiving the correct amount for each payment made, regardless of whether it is a billed amount or an allocation, and the supporting documentation should be retained in the City’s records.
We selected twenty-five cash receipts for testing of accuracy and support and noted that there were six receipts for scan planning fees ($0.13 per page) related to the permit processing and issuance program that could not be recalculated as the receipt does not include page count. In addition, per review of one cash receipt tested that did include a ten-key tape with the page count, it appears the City charged $0.125 instead of $0.13 per page.
Without documentation showing the page count associated with the fees charged, the City is unable to recalculate the payment due and therefore may not be receiving or charging the accurate amount.
We understand the City does not have a policy for retaining the ten-key tape or other documentation of the number of pages scanned and the fee charged.
The City should require documentation of the page count be retained to ensure that the amount charged and collected is accurate. And, the City should determine whether the fee to be charged is $0.125 or the rounded amount of $.13 per page)
Current Status:
Effective April 2024, the city adopted a flat fee for scanning of documents. 11 363
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
OTHER MATTERS
2023-06 Inactive Deposits Payable
Deposits payable held by the City should be related to active projects, or projects that have not yet started. Old balances should be researched to determine if the deposit should be returned to the depositor or recognized as revenue if the activity is complete.
The City has sixty-two individual deposits payable outstanding as of June 30, 2023, with a total liability of $1.16 million. We understand that certain of those deposits are related to old projects for which the deposit is no longer active and should be returned to the depositor. We also understand that the City has attempted to return those inactive balances, but they were returned to the City as undeliverable.
The City should determine whether the inactive deposits should be subjected to the escheatment process by which the City advertises the unclaimed balances in accordance with California Government Code Sections 50050- 50053 provisions. If the deposits remain unclaimed and are not subject to exemptions listed in the Government Code Sections 50050-50053, the City can transfer the funds to the General Fund.
Current Status:
Implmented.
2022-02 Investment Policy Compliance
The City significantly revised its Investment Policy during fiscal year 2022 and hired an investment manager to assist with expanding the City’s investment portfolio. We reviewed the City’s Fiscal Year 2021-22 Investment Policy adopted on September 14, 2021 and noted the following:
a. Monthly and Quarterly Reporting
Section 14, Reporting, of the Investment Policy requires a monthly listing of investment transactions and a quarterly investment report to the City Council. Although we did note that the City files a quarterly investment report with the City Council, it does not appear that the City includes the monthly listing of transactions in that report or in a separate report to the City Council.
The City should either comply with the requirements of Section 14 of the Investment Policy or revise the Investment Policy to reflect the current practices.
b. Safekeeping and Custody
Section 11, Safekeeping and Custody, of the Investment Policy requires that all investment transactions “be conducted on a delivery-versus-payment (DVP basis). Securities will be held by a third-party custodian designated by the Director and evidenced by safekeeping receipts.” Although the City does have access to the investment purchase receipts for transactions initiated by the investment manager, the investments are held by the investment manager’s third-party custodian in an account in the name of the City.
The City should either require the use of its own third-party custodian to comply with the requirements of Section 11 of the Investment Policy, or revise the Investment Policy to reflect the current arrangement. 12 364
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
OTHER MATTERS
2022-02 Investment Policy Compliance (Continued)
c. Investment Reporting
Section 14, Reporting, of the Investment Policy and California Government Code Section 53646(b)(1) require a listing of investments, including the investment instrument, issuer name, maturity date, credit rating, coupon rate, yield, purchase price, par value, book value, current market value and the source of the valuation. Although the City includes the source of the market valuation in its quarterly Investment Report and the December 2021 and June 2022 Investment Reports indicate “See Detail”, the reports did not include the details for the individual investments in the City’s portfolio, and instead included only a summary statement of investments attachment.
The City should revise the Investment Report to comply with the requirements of Section 14 of the Investment Policy. If the City does not want to include the detailed listing of investments in the body of the Investment Report, then the detailed statement should be attached to the Investment Report, rather than the summary statement.
d. Review of Internal Controls
Section 18, Internal Controls, of the City’s fiscal year 2021-22 Investment Policy requires the following:
The Finance Director shall establish an annual process for independent review of these controls, including cash and investment testing, by an external auditor. This review will help to ensure compliance with the City's investment policies and procedures.
As the City’s external auditors, we cannot be part of the City’s internal control structure. Although we have been engaged to audit the City’s financial statements, we have not been requested to perform an audit specific to the system of internal controls required by the Investment Policy. We would be happy to perform any procedures the City specifies regarding the investments as a separate engagement. Otherwise, the provisions should be revised to reflect current practices or removed from the Investment Policy.
Current Status:
Implemented
13 365
CITY OF OAKLEY
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR
OTHER MATTERS
2022-03 Developer Dedicated Infrastructure Improvements Generally accepted accounting principles require that contributed capital assets be valued at their estimated acquisition value on the date contributed.
The City periodically receives contributions of developer constructed infrastructure improvements and the dollar amount capitalized is based on the original engineer’s estimate of the improvements expected to be installed.
Although the timing of the engineer’s estimate may sometimes be relatively close to the date the developer dedicates the capital assets to the City, that is not always the case. As a result, the estimated acquisition value of the assets on the City’s acceptance date may differ from the original engineer’s estimate.
Update for June 30, 2023: During our testing of one developer dedicated infrastructure transaction, we again noted the value capitalized was based on the original contract estimate of the assets installed and dedicated.
Update for June 30, 2024: During our testing of one developer dedicated infrastructure transaction, we again noted the value capitalized was based on the original contract estimate of the assets installed and dedicated.
The City should develop procedures to estimate the acquisition value of developer dedicated infrastructure at the time of acceptance of the capital assets and use that amount to record the capital assets in the general ledger.
Current Status:
Finance staff will work with engineering staff to determine a process in estimating developer dedicated infrastructure in the future.
14 366
CITY OF OAKLEY
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED
JUNE 30, 2024
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368
CITY OF OAKLEY
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2024
Table of Contents
Page
Required Communications ................................................................................................................ 1 Significant Audit Matters ......................................................................................................... 1 Qualitative Aspects of Accounting Practices ..................................................................... 1 Difficulties Encountered in Performing the Audit ............................................................. 3 Corrected and Uncorrected Misstatements ....................................................................... 3 Disagreements with Management ...................................................................................... 3 Management Representations ............................................................................................ 3 Management Consultations with Other Independent Accountants ............................... 3 Other Audit Findings or Issues ......................................................................................... 3 Other Matters ............................................................................................................................ 4 369
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370
REQUIRED COMMUNICATIONS
To the City Council of
the City of Oakley, California
We have audited the basic financial statements of the City of Oakley for the year ended June 30, 2024.
Professional standards require we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information orally to the Mayor, City Manager and Administrative Services Director during our discussion on May 13, 2024. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City are described in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year.
The following pronouncements became effective, but did not have a material effect on the financial statements:
GASB 99 – Omnibus 2022, paragraphs 4-10 (related to financial guarantees and the classification and reporting of derivative instruments) GASB 100 - Accounting Changes and Error Corrections
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. 1 371
Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s 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 significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:
Estimated Fair Value of Investments: Investments held by the City were measured by fair value as disclosed in Note 3 to the Financial Statements. Fair value is essentially market pricing in effect as of June 30, 2024. These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2024.
Estimated Depreciation: Management’s estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 7 to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimated Compensated Absences: Accrued compensated absences is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1H. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimated Net Pension Liability (Asset) and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liability and deferred outflows/inflows of resources are disclosed in Note 11 to the financial statements and are based on accounting valuations determined by the California Public Employees Retirement System, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole.
Estimated Claims Liabilities: Management’s estimate of the claims liabilities payable is disclosed in Note 16 to the financial statements and is based on actuarial studies determined by the City’s joint powers authority insurance provider, which are based on the claims experience of the City.
We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimated Leases Receivable and Deferred Inflows of Resources Related to Leases:
Management’s estimates of leases receivable and deferred inflows of resources related to leases in Note 14 are based on the agreement term, including any assumptions related to whether extensions may be exercised, and the discount rate net present value calculation is based on the estimated borrowing rate at the measurement date. We evaluated the key factors and assumptions used to develop the leases receivable and deferred inflows of resources related to leases estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole.
Disclosures - The financial statement disclosures are neutral, consistent, and clear. 2 372
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in a management representation letter dated November 25, 2024.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
3 373
Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information.
We were engaged to report on the supplementary information which accompany the financial statements, but are not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and Statistical Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
******
This information is intended solely for the information and use of the City Council and management and is not intended to be and should not be used by anyone other than these specified parties.
Pleasant Hill, California
November 25, 2024
4 374
CITY OF OAKLEY
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
TESTING THE CITY’S COMPLIANCE WITH
CERTAIN PROVISIONS OF THE CITY’S
INVESTMENT POLICY FOR FISCAL YEAR 2023-2024
FOR THE YEAR ENDED JUNE 30, 2024
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376
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
TESTING THE CITY’S COMPLIANCE WITH
CERTAIN PROVISIONS OF THE CITY’S
INVESTMENT POLICY FOR FISCAL YEAR 2023-2024
FOR THE YEAR ENDED JUNE 30, 2024
Honorable Mayor and Members
of the City Council
City of Oakley, California
We have performed the procedures enumerated below on testing the City of Oakley’s compliance with certain provisions of the City’s Investment Policy for Fiscal Year 2023-2024 for the year ended June 30, 2024. The City’s management is responsible for compliance with certain provisions of the Policy.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of testing the City’s compliance with certain provisions of the Policy for the year ended June 30, 2024. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
1. We obtained and read the City’s Fiscal Year 2023-2024 Investment Policy adopted on December 12, 2023.
2. We obtained the detailed written procedures related to the investment functions as required by Section 18, Internal Controls of the Investment Policy (Written Procedures).
We understand they were not written until November 2024. The City should ensure it is in compliance with the provisions of the Investment Policy when adopted.
3. We tested the City’s compliance with the following provisions of the Investment Policy:
8. Authorized Financial Dealers and Institutions
The City contracted with an external investment manager, PFM Asset Management, effective September 14, 2021, therefore we obtained email correspondence documentation that the City has provided the external investment manager with a copy of the 2023-2024 investment policy. 377
8. Competitive Bidding Process (see 9 below)
9. Authorized and Suitable Investments
We tested the composition of the City’s June 2024 Monthly Investment Report for compliance with the types of securities held and the maximum holdings, maximum per issuer and maximum maturity limitations without exception.
We selected 3 investment purchase transactions from July 1, 2023 to June 30, 2024 out of 10 total purchases for fiscal year 2024 and tested for the following without exception:
• Authorization
• Compliance with bid requirements of 8. above, as applicable • Investment rating at time of purchase to Moody’s or S&P and for compliance with Investment Policy minimum rating requirement, if applicable • Addition to the safekeeping statement in the month purchased • Addition to the Quarterly Investment Report in the month/quarter purchased
10. Collateralization
The City did not have any certificates of deposit or repurchase agreements outstanding at June 30, 2024, therefore we did not select 10% of such investments to trace to collateralization documentation and test whether in compliance with the collateralization of 102% of market value of principal and accrued interest requirement.
11. Safekeeping and Custody
We obtained the June 30, 2024 U.S. Bank third party custodian statement and reconciled to the June 30, 2024 Quarterly Investment Report to determine that all securities included in the Quarterly Investment Report were held by the City’s third-party custodian without exception. We noted that the only investments in the Quarterly Investment Report that were not included in the custodian statement were the Local Agency Investment Fund (LAIF) account, CAMP Pool account, CalTrust account and the Principal Public Deposit Sweep Program account.
The City’s investments in the LAIF, CAMP, CalTrust and Principal Public Deposit Sweep Program accounts are pooled investments that are not subject to being held by the City’s custodian. They are held directly by LAIF CAMP, CalTrust and Principal Public Deposit Sweep Program in separate City of Oakley-designated accounts.
12. Maximum Maturities
We calculated the difference between the Purchase Date (Settlement Date) and Maturity Date for all investments in the June 2024 Quarterly Investment Report to test for compliance with the 5- year maturity limitation and noted no exceptions.
378
14. Reporting
We selected two Quarterly Investment Reports (December 2023 and June 2024) and tested to determine whether the Reports included the 12 components listed on the Investment Policy and noted no exceptions.
17. Investment Pools/Mutual Funds
The City had four Investment Pools/Mutual Funds outstanding as of June 30, 2024, therefore we selected one (10% of the total count) Investment Pool to test whether the City had the required 8- point questionnaire on file and noted the questionnaire was not completed.
The City should develop procedures to obtain the 8 points of information from all existing, and any new, Investment Pools/Mutual Funds/Money Market Funds on a regular basis, in accordance with the requirements of the Investment Policy.
4. We did not test for compliance with the following provisions of the Investment Policy:
1. Purpose
2. Scope
3. Policy
4. Objectives
5. Prudence
6. Delegation of Authority, except as noted in #3(9) above
7. Ethics and Conflicts of Interest
12. Diversification, except as noted in #3(9) above
15. Investment Policy Review
16. Other Constraints
18. Internal Controls, except as noted in #2 above
19. Performance Standard
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the City’s compliance with certain provisions of the Policy for the year ended June 30, 2024. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. ********************
This report is intended solely for the information and use of management and the City Council and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
November 25, 2024
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380
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2023-2024 APPROPRIATIONS LIMIT INCREMENT
To the City Council of the
City of Oakley, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet) of the City of Oakley, California, for the year ended June 30, 2024. The City’s management is responsible for the Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of these procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
A. We obtained the Worksheet and determined that the 2023-2024 Appropriations Limit of $15,761,694 and annual adjustment factors were adopted by Resolution of the City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council.
B. We recomputed the 2023-2024 Appropriations Limit by multiplying the 2022-2023 Prior Year Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by multiplying the population option by the inflation option.
C. For the Worksheet, we agreed the Per Capita Income Factor and City Population Factor to California State Department of Finance Worksheets. We agreed the County Population Factor to the California State Department of Finance Worksheet, but it was not included on the City’s Worksheet.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. 381
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of management and the City Council and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
November 25, 2024
382
STAFF REPORT
City of Oakley | 3231 Main Street, Oakley, CA 94561
O (925) 625-7000 | F (925) 625-9859 | www.ci.oakley.ca.us DATE: December 10, 2024
TO: Joshua McMurray, City Manager
FROM: Kim Snodgrass, City Clerk
SUBJECT: Adopt a Resolution Approving the 2025 City Council Committee Appointment List
Background and Analysis
Each year after the Oakley City Council reorganizes, the City Council reviews the City Council Committee Appointment List for the upcoming year to decide which local and regional committees each Councilmember shall serve. The Mayor and Vice Mayor have traditionally been appointed to represent the City of Oakley on the Contra Costa County Mayors’ Conference and East County Mayors and City Managers meetings. Attached is the draft list for 2025.
Consistency with the Oakley Strategic Plan 27+
This matter is consistent with the Oakley Strategic Plan 27+ Community and Collaborative Partnerships Goal to build strong community and collaborative partnerships to be mutually beneficial and co-create shared goals.
Fiscal Impact
None.
Staff Recommendation
Staff recommends that the City Council review and discuss the draft 2025 City Council Committee Appointment List and adopt a resolution approving a final list.
Attachments
1. Draft 2025 City Council Committee Appointment List
2. Proposed Resolution Approving the 2025 City Council Committee Appointment List
Approved and
Forwarded to the
City Council
383
2025 City Council Committee Appointment List
Mayor
CalCities East Bay Division, Voting
CCC Mayors Conference
East County Mayors and City Managers
Ad Hoc Parks Subcommittee
Oakley Inter-Agency Subcommittee (Public School Liaison) Tri-Delta Transit
Vice Mayor
ABAG, Voting
CCC Mayors Conference, Alternate
Diablo Water District Liaison
East Bay Leadership Council (Liaison)
East County Mayors and City Managers, Alternate
MCE Board, Alternate
Councilmember # 1
ABAG, Alternate
Contra Contra Costa Fire Protection District Board (Liaison) Tri-Delta Transit
Councilmember # 2
Board of Green Empowerment Zone
CalCities East Bay Division, Alternate
Habitat Conservation Plan Exec. Committee/HCP Conservancy Ironhouse Sanitary District Liaison
Councilmember # 3
Ad Hoc Parks Subcommittee
MCE Board
Oakley Inter-Agency Subcommittee (Public School Liaison) TRANSPLAN/ECCRFFA/St. Route 4 Bypass (CC Rep)
384
Resolution No. XX-24 Page 1 of 1
RESOLUTION NO. XX-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OAKLEY APPROVING THE 2025 CITY COUNCIL COMMITTEE APPOINTMENT LIST
BE IT RESOLVED by the City Council of the City of Oakley that the 2025 City Council Committee Appointment List attached as Exhibit A is hereby approved.
PASSED AND ADOPTED by the City Council of the City of Oakley this 10th day of December 2024 by the following vote.
AYES:
NOES:
ABSTENTION:
ABSENT:
APPROVED:
___________________
, Mayor
ATTEST:
____________________ ________
Kim Snodgrass, City Clerk Date
385
Full Name Primary Contact Email Address Primary Address Phone # Full Primary Address Active Licenses BAY STUMP REMOVAL [email protected] (925) 510-8660 4040 MELLOWOOD DR OAKLEY CA 94561-2430
HOME BASED BUSINESS LICENSE
BROWNSTONE GARDENS [email protected] (510) 584-7316 91 BROWNSTONE RD OAKLEY CA 94561-3857
BUSINESS LICENSE
HAIR BYTAAY [email protected] (925) 360-2554 3663 MAIN STREET OAKLEY, CA 94561
BUSINESS LICENSE
HARDWOOD FLOORING EXPERTS CO
INC
(925) 752-3723 4553 WATERFORD WAY
OAKLEY CA 94561-3226
HOME BASED BUSINESS LICENSE
OAKEN HIDE DESIGNS LLC [email protected] (925) 354-2928 200 CALLIA CT OAKLEY CA 94561-2201
HOME BASED BUSINESS LICENSE
PIG WIG DESIGNS [email protected] (209) 814-6137 1745 CHANDON WAY OAKLEY CA 94561-3051
HOME BASED BUSINESS LICENSE
QUICK QUACK CAR WASH (888) 772-2792 1054 LAUREL RD
OAKLEY CA 94561
BUSINESS LICENSE
7 386
2024 Year End Update
387
CONTACT INFORMATION & STAFFING
Contact Information:
• Reina Banuelos, Onsite Regional Property Manager: [email protected] • Bill Hinton, Onsite Regional Maintenance Manager: [email protected] • The Oaks email: [email protected]
• Telephone Number: 925-625-1300
Onsite Staffing:
• Leasing & Administration: Onsite Regional Property Manager, Assistant Manager, Staff Accountant, Social Services Coordinator & three Occupancy Specialists • Maintenance: Onsite Regional Maintenance Manager, six full-time Maintenance Technicians 388
RESIDENT SERVICES
389
ENRICHMENT &
EMPOWERMENT
1089 HOURS OF REGULAR
SERVICE PROGRAMMING
FOR 2024
NOT INLCUDING SPECIAL EVENTS
OR THE WEEKLY FOOD STABILITY
SERVICES
390
COMMUNICATION
During the year we have continued to use both email and print to communicate with our residents – this includes utilizing the Active Building program, regular email, printed letters, flyers and newsletters.
During the year we met at least monthly in a formal setting, ‘Coffee with Katie’, ‘The Oaks with Oke’ and now ‘Revitalize with Reina’. In December, we listened to the needs of our residents and made a notable shift to individual building meetings.
391
PROPERTY
OPERATIONS
392
CUSTOMER SERVICE ENHANCEMENTS
• Monthly: Key staff members meet with the residents in a variety of settings – large groups, small groups and one-on-one. They are an effective way in keeping communication open and also encourages positive interactions with staff and other residents of the community.
• Staffing: Maintaining the proper level of staffing and hiring “right” are key parts of maintaining an acceptable level of service. The Oaks has invested in more experienced individuals to lead the departments and run the day-to-day functions of the community. • Technology: Strengthening the use of technology to receive and track maintenance requests. Residents are able to submit requests at any time through the use of mobile facilities.
393
MAINTENANCE
HIGHLIGHTS
394
RECAP OF SIGNIFICANT MAINTENANCE DURING 2024
• Sidewalk repairs and improvements
• Club Room refreshening in buildings 59, 65, 67, 81 & 73 which included flooring, painting, and new furniture • New landscape, cleaning and trash services
• New trash compactor
• Tree trimming and removal
• Hydro-jetting of fresh water and waste-water lines
• Dryer vent cleaning
• Roof repairs
• Common area flooring replacement
• Completion of a large number of old service requests
395
SERVICE REQUESTS
2024 Year to Date
• 1,959 service requests received
• 2,294 service requests completed
396