December 16, 2014

Transcription

December 16, 2014

AGENDA
Tuesday, December 16, 2014
5:30 P.M. Closed Session
6:30 P.M. Open Session
REGULAR MEETING
CITY COUNCIL, AIRPORT COMMISSION,
MARINA ABRAMS B NON-PROFIT CORPORATION
AND SUCCESSOR AGENCY OF THE FORMER MARINA REDEVELOPMENT AGENCY
AND JOINT POWERS FINANCING AUTHORITY
Council Chambers
211 Hillcrest Avenue
Marina, California
VISION STATEMENT
Marina will grow and mature from a small town bedroom community to a small city which is
diversified, vibrant and through positive relationships with regional agencies, self-sufficient. The City
will develop in a way that insulates it from the negative impacts of urban sprawl to become a desirable
residential and business community in a natural setting. (Resolution No. 2006-112 - May 2, 2006)
MISSION STATEMENT
The City Council will provide the leadership in protecting Marina’s natural setting while developing
the City in a way that provides a balance of housing, jobs and business opportunities that will result in
a community characterized by a desirable quality of life, including recreation and cultural
opportunities, a safe environment and an economic viability that supports a high level of municipal
services and infrastructure. (Resolution No. 2006-112 - May 2, 2006)
1.
CALL TO ORDER
2.
ROLL CALL & ESTABLISHMENT OF QUORUM:
(City Council, Airport
Commissioners, Marina Abrams B Non-Profit Corporation, and Redevelopment Agency
Members)
Nancy Amadeo, David W. Brown, Gail Morton, Mayor Pro-Tem/Vice Chair Frank
O’Connell, Mayor/Chair Bruce C. Delgado
3.
CLOSED SESSION: As permitted by Government Code Section 54956 et seq., the (City
Council, Airport Commissioners, Marina Abrams B Non-Profit Corporation, and
Redevelopment Agency Members) may adjourn to a Closed or Executive Session to
consider specific matters dealing with litigation, certain personnel matters, property
negotiations or to confer with the City’s Meyers-Milias-Brown Act representative.
a. Conference with Legal Counsel Existing Litigation, – (Paragraph (1) of subdivision (d)
of Section 54956.9) – One case
(1)
Marina v. Fort Ord Reuse Authority
Agenda for City Council Meeting of Tuesday, December 16, 2014
Page 2
b. Labor Negotiations
i. Marina Employee Association
ii. Marina Management Employees Association
iii. Marina Public Safety Officers Association
iv. Marina Public Safety Manager’s Association
v.
Marina Professional Firefighters Association
vi.
Department Directors
1. Community Development Director
2. Finance Director
3. Fire Chief
4. Police Chief
5. Recreation and Cultural Services Director
City Negotiators: Donna Williamson, Liebert Cassidy and Layne P. Long, City
Manager and Employee Relations Officer
c. Real Property Negotiations
a. Property: Marina Corporation Yard – 2660 5Th Avenue, Marina, CA
Negotiating Party: David Moon
Property Negotiator: City Manager
Terms: All terms and conditions
6:30 PM - RECONVENE OPEN SESSION AND REPORT ON ANY ACTIONS TAKEN IN
CLOSED SESSION
4.
MOMENT OF SILENCE & PLEDGE OF ALLEGIANCE (Please stand)
5.
SPECIAL PRESENTATIONS: None
6.
SPECIAL ANNOUNCEMENTS AND COMMUNICATIONS FROM THE FLOOR: Any
member of the Public or the City Council may make an announcement of special events or meetings
of interest as information to Council and Public. Any member of the public may comment on any
matter within the City Council’s jurisdiction which is not on the agenda. Please state your name for
the record. Action will not be taken on an item that is not on the agenda. If it requires action, it will
be referred to staff and/or placed on a future agenda. City Council members or City staff may
briefly respond to statements made or questions posed as permitted by Government Code Section
54954.2. In order that all interested parties have an opportunity to speak, please limit comments to
a maximum of four (4) minutes. Any member of the public may comment on any matter listed on this
agenda at the time the matter is being considered by the City Council
7.
CONSENT AGENDA FOR THE SUCCESSOR AGENCY TO THE FORMER MARINA
REDEVELOPMENT AGENGY: Background information has been provided to the Successor
Agency of the former Redevelopment Agency on all matters listed under the Consent Agenda, and
these items are considered to be routine. All items under the Consent Agenda are normally
approved by one motion. Prior to such a motion being made, any member of the public or the City
Council may ask a question or make a comment about an agenda item and staff will provide a
response. If discussion or a lengthy explanation is required, that item will be removed from the
Consent Agenda for Successor Agency to the former Marina Redevelopment Agency and placed at
the end of Other Action Items Successor Agency to the former Marina Redevelopment Agency.
a
8.
Page 3
Successor Agency Board consider adopting Resolution No. 2014-, (SA/MRA)
receiving and filing the Successor Agency to the former Marina Redevelopment
Agency audited statement of net position as of June 30, 2014 and the related
statement of changes in net position for the year ended June 30, 2014.
CONSENT AGENDA: Background information has been provided to the City Council, Airport
Commission, Marina Abrams B Non-Profit Corporation, and Redevelopment Agency on all matters
listed under the Consent Agenda, and these items are considered to be routine. All items under the
Consent Agenda are normally approved by one motion. Prior to such a motion being made, any
member of the public or the City Council may ask a question or make a comment about an agenda
item and staff will provide a response. If discussion or a lengthy explanation is required, that item
will be removed from the Consent Agenda and placed at the end of Other Action Items.
a. ACCOUNTS PAYABLE:
(1)
Accounts Payable Check Numbers 73230-73334 totaling $349,469.97
Wire transfers totaling: $191,689.77
b. MINUTES:
(1)
November 20, 2014, Special Joint City Council/Planning Commission Meeting
(2)
December 2, 2014, Regular City Council Meeting
c. CLAIMS AGAINST THE CITY: None
d. AWARD OF BID: None
e. CALL FOR BIDS: None
f. ADOPTION OF RESOLUTIONS:
(1)
City Council consider adopting Resolution No. 2014-, authorizing submission of
grant application for 2014 Assistance to Firefighters Grant Program’s Staffing
for Adequate Fire and Emergency Response (SAFER) for four (4) full time
firefighters; authorizing the City Manager to execute the grant application on
behalf of the city subject to final review and approval by the City Attorney.
(2)
City Council consider adopting Resolution No. 2014-, approving regular City
Council meeting schedule for 2015 Calendar Year.
g. APPROVAL OF AGREEMENTS:
(1)
City Council consider adopting Resolution No. 2014-, authorizing the City’s
Retired Fire Chief to work on a temporary basis during the recruitment and
orientation of the Fire Chief position, and authorize the City Manager to execute
the personnel action form on behalf of the city.
h. ACCEPTANCE OF PUBLIC IMPROVEMENTS:
(1)
City Council consider adopting Resolution No. 2014-, approving request by
Marina Community Partners LLC, to release portion of performance bond for
public improvements in the Dunes Phase 1C area in the amount of $998,261.;
accept a substitute performance bond security of $100,000 for remaining street
lights and electrical facilities, and; authorize the City Manager to execute the
release agreement on behalf of the City subject to final review and approval by
the City Attorney.
Page 4
i. MAPS: None
j. REPORTS: (RECEIVE AND FILE):
(1)
City Council consider receiving brief informational report for priority projects
and programs.
(2)
Community Human Services, November 20, 2014 Board Meeting Highlights.
(3)
Transportation Agency for Monterey County, December 3, 2014 Highlights.
(4)
City Council consider adopting Resolution No. 2014-, receiving and filing City
of Marina audited Annual Financial Reports for the fiscal year ended June 30,
2014.
k. FUNDING & BUDGET MATTERS: None
l. APPROVE ORDINANCES (WAIVE SECOND READING): None
m. APPROVE APPOINTMENTS:
(1)
City Council consider adopting Resolution No. 2014 approving Mayor’s 2015
recommendation for Mayor Pro Tem and City Council member assignments to
various Committees/Commissions/Boards.
9.
PUBLIC HEARINGS: None
10.
OTHER ACTIONS ITEMS OF THE SUCCESSOR AGENCY TO THE FORMER
MARINA REDEVELOPMENT AGENCY: Action listed for each Agenda item is that
which is requested by staff. The Successor Agency may, at its discretion, take action on any
items. The public is invited to approach the podium to provide up to four (4) minutes of
public comment.
11.
OTHER ACTION ITEMS: Action listed for each Agenda item is that which is requested by
staff. The City Council may, at its discretion, take action on any items. The public is invited
to approach the podium to provide up to four (4) minutes of public comment.
Note: No additional major projects or programs should be undertaken without review of the impacts
on existing priorities (Resolution No. 2006-79 – April 4, 2006).
a. Marina Joint Powers Financing Authority consider adopting Resolution No. 2014-, (JPA),
electing officers and directing the filing of notices with Secretary of State and the County
Clerk.
b. City Council consider adopting Resolution No. 2014-, approving Amendment No. 8 to
Management Agreement between the City of Marina, the City of Marina Abrams B NonProfit Corporation (“Non-Profit Corporation”) , and Alliance Communities Inc., for
Abrams B Housing Area, subject to final approval by the Federal National Mortgage
Association, and; authorizing City Manager to execute Amendment No. 8 to Management
Agreement on behalf of the City subject to final review and approval by the City
Attorney; adopting Resolution No. 2014- (NPC), approving Amendment No. 8 to
Management Agreement between the City of Marina, the Non-Profit Corporation, and
Alliance Communities, Inc., subject to final approval by the Federal National Mortgage
Association, and; authorizing the Executive Director to execute Amendment No. 8 to
Management Agreements on behalf of the Non-Profit Corporation subject to final review
and approval by the Non-Profit Corporation Legal Counsel.
12.
Page 5
COUNCIL & STAFF INFORMATIONAL REPORTS:
a. Monterey County Mayor’s Association [Mayor Bruce Delgado]
b. Council and staff opportunity to ask a question for clarification or make a brief report
on his or her own activities as permitted by Government Code Section 54954.2.
13.
ADJOURNMENT:
CERTIFICATION
I, Anita Flanagan, Deputy City Clerk, of the City of Marina, do hereby certify that a copy of the
foregoing agenda was posted at City Hall and Council Chambers Bulletin Board at 211 Hillcrest
Avenue, Monterey County Library Marina Branch at 190 Seaside Circle, City Bulletin Board at the
corner of Reservation Road and Del Monte Boulevard on or before 5:30 p.m., Friday, December 12,
2014.
_______________________________________
ANITA FLANAGAN, DEPUTY CITY CLERK
City Council, Airport Commission and Redevelopment Agency meetings are recorded on tape and
available for public review and listening at the Office of the City Clerk, and kept for a period of 90
days after the formal approval of MINUTES.
City Council meetings may be viewed live on the meeting night and at 12:30 p.m. and 3:00 p.m. on
Cable Channel 25 on the Sunday following the Regular City Council meeting date. In addition,
Council meetings can be viewed at 6:30 p.m. every Monday, Tuesday and Wednesday. For more
information about viewing the Council Meetings on Channel 25, you may contact Access Monterey
Peninsula directly at 831-333-1267.
Agenda items and staff reports are public record and are available for public review on the City's
website (www.ci.marina.ca.us), at the Monterey County Marina Library Branch at 190 Seaside Circle
and at the Office of the City Clerk at 211 Hillcrest Avenue, Marina between the hours of 10:00 a.m.
5:00 p.m., on the Monday preceding the meeting.
Supplemental materials received after the close of the final agenda and through noon on the day of the
scheduled meeting will be available for public review at the City Clerk’s Office during regular office
hours and in a ‘Supplemental Binder’ at the meeting.
Members of the public may receive the City Council, Airport Commission and Redevelopment Agency
Agenda at a cost of $55 per year or by providing a self-addressed, stamped envelope to the City Clerk.
The Agenda is also available at no cost via email by notifying the City Clerk at
[email protected].
ALL MEETINGS ARE OPEN TO THE PUBLIC.
THE CITY OF MARINA DOES NOT
DISCRIMINATE AGAINST PERSONS WITH DISABILITIES. Council Chambers are wheelchair
accessible. meetings are broadcast on cable channel 25 and recordings of meetings can be provided
upon request. to request assistive listening devices, sign language interpreters, readers, large print
agendas or other accommodations, please call (831) 884-1278 or e-mail: [email protected].
requests must be made at least 48 hours in advance of the meeting
Page 6
Upcoming 2014 Meetings of the City Council, Airport
Commission, Marina Abrams B Non-Profit Corporation,
and Successor Agency of the Former Redevelopment Agency
Regular Meetings: 5:30 p.m. Closed Session;
6:30 p.m. Regular Open Sessions
NOTE: Regular Meeting dates may be rescheduled by City Council only.
ADDITIONAL CITY COUNCIL MEETINGS
_________________________________________
C I T Y
H A L L H O L I D A Y S
(City Hall Closed)
Winter Break ------------------------------ Wednesday, December 24, 2014 – Friday, January 2, 2015
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
2014 COMMISSION DATES
Upcoming 2014 Meetings of Design Review Board
3 Wednesday of every month. Meetings are held at the Council Chambers at 6:30 P.M
** = Change in location due to conflict with Council meeting
.
December 17, 2014
rd
Upcoming 2014 Meetings of Economic Development Commission
1st Thursday of every month except March and July. Meetings are held at the Council Chambers at 6:30 P.M.
Upcoming 2014 Meetings of Planning Commission
2nd and 4th Thursday of every month. Meetings are held at the Council Chambers at 6:30 P.M.
December 25, 2014 (Cancelled)
Upcoming 2014 Meetings of Public Works Commission
3rd Thursday of every month. Meetings are held at the Council Chambers at 6:30 P.M.
December 18, 2014
Upcoming 2014 Meetings of Recreation &
Cultural Services Commission
1st Wednesday of every quarter month. Meetings are held at the Council Chambers at 6:30 P.M.
December 9, 2014
Honorable Chair and Board
of the Successor Agency of the
Marina Redevelopment Agency
Item No. 7a
Successor Agency
Board Meeting
of December 16, 2014
CITY COUNCIL OF THE CITY OF MARINA ACTING AS THE
GOVERNING BOARD OF THE SUCCESSOR AGENCY OF MARINA
REDEVELOPMENT AGENCY BOARD CONSIDER ADOPTING
RESOLUTION NO. 2014-, RECEIVING AND FILING THE SUCCESSOR
AGENCY TO THE FORMER MARINA REDEVELOPMENT AGENCY
AUDITED STATEMENT OF NET POSITION AS OF JUNE 30, 2014 AND
THE RELATED STATEMENT OF CHANGES IN NET POSITION FOR
THE YEAR ENDED JUNE 30, 2014
REQUEST:
It is requested that the City Council of the City of Marina acting as the Governing Board of the
Successor Agency of the Marina Redevelopment Agency Board consider:
1.
Adopting Resolution No. 2014- (SA-MRA), receiving and filing the Successor Agency to
the former Marina Redevelopment Agency audited statement of net position as of June
30, 2014 and the related statement of changes in net position for the year ended June 30,
2014.
BACKGROUND:
After each fiscal year, independent auditors examine and test the underlying controls, fiscal
records and financial transactions from which the Successor Agency to the former Marina
Redevelopment Agency financial reports are prepared, and issue their opinion on the financial
statements contained in the reports.
The purpose of the audit is to determine whether, in the auditor's opinion, the financial
statements present fairly in all material respects the Successor Agency to the former Marina
Redevelopment Agency financial position and results of operations for the fiscal year.
The State dissolution of redevelopment agencies caused a significant shift in the financial
position, changed in the legal entity title and changed the accounting treatment and presentation.
These financial statements are issued in accordance with the Marina Redevelopment Agency
Marina Municipal Airport Area 2000 Tax Allocation Bonds, Series A Indenture of Trust dated
July 1, 2000, Section 5.05 Books and Accounts: Financial Statements. “The Agency will cause
to be prepared, within one hundred and eighty (180) days after the close of each Fiscal Year so
long as the Bonds are Outstanding, complete audited financial statements with respect to such
Fiscal Year showing the Tax Revenues, all disbursements of Tax Revenues and the financial
condition of all funds and accounts established in this indenture, as of the end of such Fiscal
Year.”
7a Pg. 1
ANALYSIS:
The independent auditors, Mann, Urrutia, Nelson CPAs, issued a favorable opinion dated
December 8, 2014 for the statement of net position of the Successor Agency to the Marina
Redevelopment Agency of the City of Marina as of June 30, 2014 and the related statement of
changes in net position for the year then ended June 30, 2014. (EXHIBIT A)
The auditors' unqualified opinion on these financial statements are indicative of superior
financial records, an accomplishment made possible through the dedication and commitment to
excellence on the part of Finance Consultant Richard B. Standridge, CPA and Finance
Department staff, Accounting Technicians Monika Collier, Lily Suarez and Janet Villavisencio.
FISCAL IMPACT:
None
CONCLUSION:
This request is submitted for City Council, acting as the Government Board of the Successor
Agency of the Marina Redevelopment Agency consideration and possible action.
Respectfully submitted,
_____________________________
Lauren Lai, CPA
Finance Director
City of Marina
REVIEWED/CONCUR:
_____________________________
Layne P. Long
City Manager
City of Marina
7a Pg. 2
RESOLUTION NO. 2014- (SA-MRA)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA
ACTING AS THE GOVERNING BOARD OF THE SUCCESSOR AGENCY OF THE
MARINA REDEVELOPMENT AGENCY ADOPTING RESOLUTION NO. 2014-,
RECEIVING AND FILING THE SUCCESSOR AGENCY TO THE FORMER MARINA
REDEVELOPMENT AGENCY AUDITED STATEMENT OF NET POSITION AS OF JUNE
30, 2014 AND THE RELATED STATEMENT OF CHANGES IN NET POSITION FOR THE
YEAR THEN ENDED JUNE 30, 2014
WHEREAS, after each fiscal year, independent auditors examine and test the underlying
controls, fiscal records and financial transactions from which the Successor Agency to the former
Marina Redevelopment Agency financial reports are prepared, and issue their opinion on the
financial statements contained in the reports, and;
WHERAS, the purpose of the audit is to determine whether, in the auditor's opinion, the
financial statements present fairly in all material respects the Successor Agency to the former
Marina Redevelopment Agency financial position and results of operations for the fiscal year,
and;
WHEREAS, the State dissolution of redevelopment agencies caused a significant shift in the
financial position, changed in the legal entity title and changed the accounting treatment and
presentation, and;
WHEREAS, these financial statements are issued in accordance with the Marina Redevelopment
Agency Marina Municipal Airport Area 2000 Tax Allocation Bonds, Series A Indenture of Trust
dated July 1, 2000, Section 5.05 Books and Accounts: Financial Statements.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Marina, acting as
the governing board of the Successor Agency of the Marina Redevelopment Agency here by
1. Receive and file the Successor Agency to the former Marina Redevelopment Agency
audited financial statement of net position as of June 30, 2014 and the related statement
of changes in net position for the year ended June 30, 2014 (Exhibit A).
PASSED AND ADOPTED by the City Council of the City of Marina acting as the governing
board of the Successor Agency of the Marina Redevelopment Agency at a regular meeting duly
held on the 16th day of December 2014, by the following vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
_______________________________
Bruce C. Delgado, Chair
ATTEST:
_______________________________
Anita Flanagan, Acting Board Secretary
7a Pg. 3
EXHIBIT A
MANN • URRUT I A · NELSO N
GLENDALE
•
ROSEVILL E
•
CPAs & ASSOC I ATES , LLP
SA C RA MENT O • SOUTH LAK E TA H O E •
KAUA I , H AWA II
INDEPENDENT AUDITOR'S REPORT
To the City Council
Oversight Board of the Successor
Agency to the Marina Redevelopment Agency
Marina, California
We have audited the accompanying financial statements of the Successor Agency to the Marina Redevelopment
Agency of the City of Marina as of and for the year ended June 30, 2014.
Management's Responsibility 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; this includes the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with auditing standards generally accepted in the United States of America. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial
statements 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 entity's internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
The financial statements do not include footnote disclosures to the financial statements. In our opinion, disclosure of
that information is required to conform with accounting principles generally accepted in the United States of America.
In our opinion, except for the omission of the information discussed in the preceding paragraph and the "Other
Matters" paragraph, the financial statements referred to in the first paragraph present fairly, in all material respects,
the financial position of the Successor Agency to the Marina Redevelopment Agency of the City of Marina as of June
30, 2014, and the results of its operations for the year ended June 30, 2014 with accounting principles generally
accepted in the United States of America.
SACRAME NTO OFFICE •
25 15
VENTURE OAKS W AY , SuiTE
1 35 •
SACRAMEN TO ,
CA 95833 •
WWW.,MUNCPAS.COM
o .
F. 916 .929.0541
7a
Pg. 4
9 16.929.0540 •
Other Matters
Required Supplementary Information
Management has omitted management's discussion and analysis that accounting principles generally accepted in the
United States of America require to be presented to supplement the basic financial statements. Such missing
information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial
statements is not affected by this missing information.
Yf/aMJ Orr~ VfJ~&f
Sacramento, California
October 20, 2014
7a Pg. 5
SUCCESSOR AGENCY
to the MARINA REDEVELOPMENT AGENCY
STATEMENT OF NET POSITION
June 30, 2014
ASSETS
Cash and Cash Equivalents
$
Prepaid Expenses
977,379
12,113
Accrued Receivables
309
Long-Term Receivable- Sate of California
510,000
Capital Assets - Land
900,000
Total Assets
$
2,399,801
$
3,563
LIABILITIES
Accounts Payable
Accrued Payables
192
Due to City of Marina Funds
328,713
Bonds Payable:
Due within One Year
20,000
Due in More Than One Year
490,000
Total Liabilities
$
842,468
Unavailable Revenue - Property Taxes Received in Advance
$
529,210
Net Position (Held in Trust for Successor Agency to the
$
1,028,123
DEFERRED INFLOWS
Marina Redevelopment Agency)
-1-
7a Pg. 6
SUCCESSOR AGENCY
STATEMENT OF CHANGES IN NET POSITION
June 30, 2014
ADDITIONS
Property Taxes (including DOF True-Up Adjustment)
$
Investment Earnings
1,272,603
2,172
Property Tax In-Lieu
29,139
Net Assets Received on Dissolution of Redevelopment Agency
39,501
Total Additions
$
1,343,415
$
1,645,963
DEDUCTIONS
ROPS Payments:
Programs Costs
Legal & Professional Fees
43,230
Employee Costs
109,113
Occupancy & Operating Costs
117,005
Total Deductions
$
Change in Net Position
$
NET POSITION - BEGINNING OF YEAR
1,915,311
(571,896)
1,600,019
NET POSITION - END OF YEAR
$
-2-
1,028,123
7a Pg. 7
SUCCESSOR AGENCY
Combining Schedule of Net Position
June 30, 2014
Successor
Agency
Operating
Fund
ASSETS
Prepaid Expenditures
Accrued Receivables
Advances (to)from Other Funds, Net
Long-Term Receivable - State of California
TOTAL ASSETS
LIABILITIES
Accounts Payable
Accrued Payables
Due to City of Marina (Long Term)
Bonds Payable:
Due Within One Year
TOTAL LIABILITIES
$
-
$
$
Successor
Agency
Obligation
Retirement
Fund
Successor
Agency
Housing
Fund
-
$
-
DEFERRED INFLOWS
$
$
$
$
$
-
-
$
$
$
$
$
977,379
12,113
309
510,000
900,000
2,399,801
$
$
-
$
529,210
$
-
$
529,210
-
$
(150,607)
$
1,178,730
$
1,028,123
-
$
-
$
$
48,992
23
229,715
900,000
1,178,730
20,000
490,000
842,468
$
3,563
192
328,713
$
Total
-
-
$
928,387
12,113
286
(229,715)
510,000
1,221,071
Successor
Agency
Housing
Assets
Fund
$
3,563
192
328,713
$
20,000
490,000
842,468
Marina Redeveloment Agency)
-3-
7a Pg. 8
SUCCESSOR AGENCY
Combining Schedule of Changes in Net Position
Year Ended June 30, 2014
53
Successor
54
58
59
Successor
Successor
Agency
Successor
Agency
Agency
Agency
Obligation
Housing
Operating
Fund
Housing
Fund
Retirement
Fund
Assets
Fund
Total
ADDITIONS
Property Taxes (Net of DOF True-Up Adjustment)
$
Investment Earnings
-
$
254
39,501
Interfund Transfers
Total Additions
579,815
$
-
29,139
(287,038)
$
-
$
1,272,603
98
2,172
29,139
-
(287,039)
$
1,272,603
1,819
-
540,060
$
1
-
(540,060)
39,501
287,039
-
$
763,501
$
287,137
$
1,343,415
$
1,062,244
$
8,407
$
1,654,370
DEDUCTIONS
-
ROPS Payments:
Program Costs
$
583,719
$
-
$
-
-
-
41,649
-
41,649
Employee Costs
-
-
102,287
117,005
-
102,287
117,005
Interfund Transfers
Total Deductions
$
$
583,719
(3,904)
$
$
3,904
$
-4-
-
(287,038)
$
$
287,038
$
-
1,323,185
(559,684)
8,407
$
$
278,730
$
354,077
$
(205,607)
-
$
955,000
$
1,233,730
1,915,311
(571,896)
1,600,019
$
1,028,123
7a Pg. 9
8a Pg. 1
8a Pg. 2
8a Pg. 3
8a Pg. 4
Agenda Item: 8b(1)
City Council Meeting of
December 16, 2014
MINUTES
Thursday, November 20, 2014
6:00 P.M.
JOINT SPECIAL MEETING
AND STUDY SESSION
OF THE MARINA CITY COUNCIL
AND THE MAIRNA PLANNING COMMISSION
Council Chambers
Marina, California
1.
CALL TO ORDER
2.
CITY COUNCIL MEMBERS PRESENT:
Nancy Amadeo, Gail Morton, Mayor ProTem/Vice Chair Frank O’Connell, Mayor/Chair Bruce C. Delgado
CITY COUNCIL MEMBERS ABSENT: David W. Brown
PLANNING COMMISSION MEMBERS PRESENT: David Burnett, Margaret Davis,
Eugene Doherty, Greg Furey, Tim Ledesma, Virgil Piper, Ken Turgen
3.
4.
STUDY SESSION:
a. Joint City Council/Planning Commission Study Meeting Discussion Recreational
Trails and Greenway Corridors; and provide further direction.
Staff Presentation:
Purpose: Policy, environmental and infrastructure implications: Creating a greenway corridor
From Fort Ord Dunes State Park to Jerry Smith Corridor abutting Fort Ord National Monument
Outline next steps to amend affected documents
Outline: Presentation Structure - Council direction, Staff action, Greenway concept and location,
Infrastructure and policy implications, Amendment actions, Cost implications
Marina City Council Direction of 1.28.14 - Motion 2 directed staff to: (a) look at feasibility of
adopting into current general and specific plans, and other adopted, planning documents, open space
greenway and recreation corridor(s) connecting the Fort Ord Dunes State Park with our two National
Park Service land grants (commonly known as the Water City Roller Hockey and Marina Equestrian
Center) through to the Jerry Smith Corridor abutting the Fort Ord National Monument; (b) report to
council no later than March 2014 on feasibility and/or required changes/amendments in these adopted
plans, if any, and the process to amend any adopted plans; and to meet with appropriate jurisdictions,
8b(1) Pg. 1
MINUTES for Joint Special Meeting of Thursday, November 20, 2014
Page 2
organizations and agencies, including CSUMB, TAMC, County of Monterey, to advance the planning
of open space greenway and recreation corridor(s) through lands within their collective jurisdictions
between the Pacific Ocean and the Fort Ord National Monument
Staff Action: Staff met with the following jurisdictions, organizations and agencies regarding creating
a new open space greenway: County of Monterey representative Michael Bellinger on June 13, 2014,
regarding trails on former Fort Ord land east of the City of Marina.; CSUMB staff Andre Lewis and
Anya Spear on September 8, 2014, to discuss trail planning on CSUMB land.; CSUMB professors
Fred Watson and Scott Waltz on September 18, 2014, to discuss their concept for a creating a new
greenway corridor.; CSUMB staff, CSUMB professors, and FORA staff on October 2, 2014.
Trail and Greenway Concept: Grassroots initiative; Open proposal provided by CSUMB professors;
Dr Fred Watson & Dr Scott Waltz - More information available online at
http://ccows.csumb.edu/home/proj/long/ord/FORTAG
Affected City Documents: General Plan & EIR (2000); Housing Element & MND (2009); Parks &
Recreation Facilities Master Plan (2009); Pedestrian & Bicycle Master Plan (2010); University
Villages (“the Dunes”) Specific Plan, EIR, Settlement Agreement, Development Agreement, and
Disposition & Development Agreement (2005); Marina Heights Specific Plan, EIR, and Development
Agreement (2003) MMC Memorandum of Agreement (2010); Silver Catalyst Project – California
Sustainable Strategies Pilot Program (SGC grant eligibility); Promontory at CSUMB Marina Specific
Plan, MND, & DDA (2012); National Park Services Programs of Utilization for PBC parcels (Marina
Community Park (Equestrian Center)& Sports Complex (Roller Hockey); Economic Development
Conveyance (EDC) and Public Benefit Conveyance (PBC) parcel deed restrictions & covenants
Affected Infrastructure: 9th Street ROW; 8th Street (closure); Imjin Pkwy (operation); Intergarrison
(operation); 2nd Avenue (underpass)
Infrastructure Implications: 9th Street ROW; Existing utilities in place (limit repurposing of land);
Alternative use of transit ROW; 8th Street (closure); Classified as arterial in General Plan; Traffic
will shift to other streets (e.g., Imjin Pkwy, HWY 68); Imjin Pkwy (operation); Additional traffic will
increase congestion; Intergarrison (operation); Classified as major roadway connector in FORA BRP;
Traffic will shift to other streets (e.g., Imjin Pkwy, HWY 68); 2nd Avenue (underpass); ADA accessible
underpass (maximum grade 8%)
Policy Implications: Update General Plan; Housing: elimination of residential development units;
Commercial: replacement of EDC parcels with open space; Loss of tax revenue and mix of land uses;
Community Land Use: job/housing balance; Loss of jobs near housing due to EDC parcel conversion;
Community Design & Development: road network and classification change to accommodate
greenway; Parks & Recreation: text edits to increase open space; Pedestrian and Bicycle Master Plan;
New alignments and facilities - Prepare new EIR, Evaluate change in land use (e.g., conversion of
residential and commercial areas to open space); Evaluate change in circulation patterns (e.g., traffic
volumes on Imjin Pkwy); Evaluate affected mitigation measures (e.g., previously adopted mitigation
measures may have to be eliminated if no longer feasible b/c of proposal) - Public Facilities Impact
Fees (PFIF) study, Evaluate future development impacts on: existing public (building) facilities;
public safety facilities; transportation (roadways and intersections); parks; Analyze need for new
facilities and improvements required by new development; Set forth relationship between needs and
impacts; Estimate costs of improvements; Finance only facilities identified in PFIF study - Public
Facilities Impact Fees (PFIF), Potential reevaluation of funding amounts and timing for Capital
Improvement Program (CIP) projects - Dunes Specific Plan and EIR, Prepared & funded by
Developer; Adopted by City Council; Multiple EIR sections affected (e.g., traffic/ transportation,
biology, air quality, noise); Impacts DDA/DA; Interferes with vested rights ; Require renegotiations
with property owner(s); Impacts PFIF - Marina Heights Specific Plan and EIR, Prepared & funded by
8b(1) Pg. 2
Page 3
Developer; Adopted by City Council; Multiple EIR sections affected (e.g., traffic/ transportation,
biology, air quality, noise); Impacts DA; Impacts PFIF; Eliminates residential development; Conflicts
with potential school site to north
Amendment Actions: Complete CEQA analysis for greenway concept; Evaluate land use and traffic
impacts; Evaluate previous mitigation measures no longer feasible; Evaluate potential conflicts with
applicable land use plans; Evaluate ability to achieve jobs/housing balance due to loss of EDC
parcels; Evaluate ability of land use/transportation system to minimize traffic congestion ; Evaluate
trail improvements - Revise PFIF and CIP, Based on mitigation measures/projects identified in new
CEQA analysis - Update city planning documents and deeds, General Plan; Pedestrian & Bicycle
Master Plan; Parks & Recreation Master Plan; Conversion of EDC parcels to PBC parcels - Address
affected Specific Plans, The Dunes on Monterey Bay (formerly University Villages); Marina Heights
Cost Implications: Infrastructure, Trail construction (per sf) and maintenance (per sf per annum);
Open space landscaping/irrigation/maintenance (per sf per annum); Undercrossing at 2nd Avenue:
±$600,000; Land purchase to reacquire 8th St ROW from MCP; Loss of tax revenue for converting
EDC parcels to open space – Policy, Unknown cost for conducting environmental analysis and
amending City documents; Unknown changes to PFIF and corresponding CIP projects - Additional
Coordination and Unknown Costs, CSUMB Master Plan revision; FORA BRP revision & Master
Resolution consistency determination; NPS Program of Utilization revision; Negotiations with
property owners with vested rights.
Council Member Morton Presentation:
Motions approved by Marina City Council on January 28, 2014
(1)
DIRECT STAFF to (a) look at feasibility of adopting into current general and specific plans,
and other adopted, planning documents, an alternative route for TAMC’s multi-modal corridor
through the City of Marina, that route being identified in the TAMC MAP as “Segments 1A to 2A to
2B to 3C to 3D, and to specifically exclude segments 1B, 3A, 3B, 4B and 5A to the extent each is within
city limits;” (b) report to council no later than March 2014 on feasibility and /or required
changes/amendments in these adopted plans, if any, and the process to amend any adopted plans;
(c) to immediately report to TAMC in its multi-modal corridor planning and feasibility procedures
that the City of Marina wants consideration given to the route identified herein as a preferred
alternative to the route identified in the 2010 MOU. (2) DIRECT STAFF TO (a) look at feasibility of
adopting into current general and specific plans, and other adopted, planning documents, open space
greenway and recreation corridor(s) connecting the Fort Ord Dunes State Park with our two National
Park Service land grants (commonly known as the Water City Roller Hockey and Marina Equestrian
Center) through to the Jerry Smith Corridor abutting the Fort Ord National Monument; (b) report to
council no later than March 2014 on feasibility and /or required changes/amendments in these
adopted plans, if any, and the process to amend any adopted plans; and (c) to meet with appropriate
jurisdictions, organizations and agencies , including CSUMB, TAMC, County of Monterey, to advance
the planning of open space greenway and recreation corridor(s) through lands within their collective
jurisdictions between the Pacific Ocean and the Fort Ord National Monument.
Economic benefits of trail connections & how Marina achieves it: Fort Ord Dunes State Beach;
Fort Ord National Monument; the Fort Ord National Monument designation offers economic
opportunity for REGION.
Regions with national monuments have prospered: Escalante National Monument, UT (1996)
Growth in 8 years following designation: Regional population 8%; Real personal income 40%; Jobs
38% ; Real per capita income 30% - White Sands National Monument, NM(1933), 438,511 visitors
in 2008; $15.7 million in local economy; 308 jobs supported
8b(1) Pg. 3
Page 4
Third largest personal spending in USA: Outdoor recreation, $646 billion annually
Outdoor Recreation is essential to the American Economy: The impact of outdoor recreation
reached far beyond the outdoor industry, directly fueling major traditional American economic
sectors. Outdoor recreation employs America - $39.7 billion in state & local tax revenue
Can Marina increase its share of this revenue? Yes
Emphasis on Fort Ord National Monument can significantly increase economic prosperity on the
Central Coast.
FIRST STUDY - Analysis by Economic & Planning Systems, Inc.: The 2012 Fort Ord Base Reuse
Plan Reassessment: Market and Economic Analysis repeatedly recommends: Achieve economic
development through emphasis on Fort Ord National Monument, “With a thoughtful
implementation strategy, the Monument can help extend tourism and related spending to nearby
communities.”; “Fort Ord retail sales serving tourists are expected to total approximately $61 million
annually if there is a successful effort to activate the Monument.”
SECOND STUDY - Headwater Economics of Bozeman, Montana: Summarizes economic role of
protected public lands in Monterey County; Discusses the multiple uses and benefits of Fort Ord
Public Lands to its surrounding communities “If Monterey County pursues increased visitation based
on outdoor tourism and recreation, the County has every incentive to protect its quality of life, scenic
public lands, and popular recreation areas to help the region compete for people and businesses in the
future.” - Protected public lands provides an important foundation to: Improve quality of life, Attract
entrepreneurs, Increase property values, Strengthen economy; “High quality of life, including
protected and scenic landscapes, stimulates “amenity migration” which draws entrepreneurs and
attracts a skilled workforce across a range of industries.”; “For many seniors and soon-to-be retirees,
protected public lands and recreation provide important aspects of a high quality of life.” Investment
income and retirement programs already represent more than 1/3 of all personal income in the West—
and will grow as the Baby Boomer generation retires; “…surveys of business owners have consistently
identified quality of life, including environmental amenities such as public land, as a key factor in
determining where entrepreneurs choose to locate.“ - “On average, western non-metro counties have
a per-capita income that is $436 higher for every 10,000 acres of protected public lands within their
boundaries.”; In areas “such as those that surround much of Fort Ord, open space; parks; outdoor
recreation opportunities increase the value of nearby residential and commercial property.”
THIRD STUDY - Analysis by SRI, Inc. – Crafting and Economic Vision for Monterey County, From
the SRI (Stanford Research Institute) Report, the Monterey County Economic Development Committee
concluded: “With proper packaging and marketing, open undeveloped space can attract visitors to
stay longer and come back more often, with related benefits of increased visitor spending on lodging,
food, retail and services in the county. In addition, attraction of recreation enthusiasts can help attract
manufacturing and retail/service businesses catering to the equipment needs of the visitors, such as
bicycles, equestrian equipment and services, diving, boating and backpacking among others.”
ALL three studies stress that concrete plans must be developed and implemented to achieve major
economic benefits from designation of the National Monument.
Same three studies provide instructions for prosperity:
Connect - “Paths for bicycle, pedestrian and equestrian uses without conflict should be constructed
according to a full master plan for the Monument…Linkages to key projects and other regional
attractions will be an important element of future planning efforts.”
8b(1) Pg. 4
Page 5
Market - expand marketing and branding of Marina as the undisputed gateway to Fort Ord National
Monument, Market & brand MARINA with Monument
Attract – Attract visitors to Marina Equestrian Center, Jerry Smith Corridor, Comanche’s Grave,
Fort Ord National Monument, 8th street and Giggling, Fort Ord Dunes State Park, Stilwell Hall
Lookout, Roller Hockey Sports Center; Entrepreneurs “The Monterey peninsula is a world-class
destination for recreation and the gift to the community of the Fort Ord landsis an opportunity to
attract more people to our region, but we need to preserve access and the ability to link the Fort Ord
lands to the places where visitors stay.
Redevelop - Blight remediation to attract new employment-generating uses Preserve scenic/rec lands
that fuel growth and quality of life
Capture - every dollar, place shops and services in marina; not on the monument; create trailside
amenities, a la Cannery Row Draw visitors in with “linear park”
Marina is getting started! Embracing these findings; implementing a vision; Planning accordingly.
First Step, Connect Marina - Paths for bicycle, pedestrian and equestrian uses constructed according
to a full city master plan and connecting Marina’s parks, open spaces, and neighborhoods to National
Monument; Fort Ord Dunes State Park; Monterey Bay Coastal Rec Trail; Our own city parks
“The most important open-space connection” —Base Reuse Plan, 1997
A Vision for Marina
To capitalize on this opportunity, Marina must review master planning documents with fresh eyes to
develop new economic strategies.
8b(1) Pg. 5
Page 6
Immediate Economic Gains - Marina secures a greater portion of the 3.3 million tourists to
Monterey County each year - More tourists in Marina hotels/ motels, Longer stays in Marina, More
diners in Marina restaurants, More purchases in Marina stores, More travelers in Marina gas stations
More events in our open spaces & parks
Marina secures a greater % of the $39.7 billion state and local taxes from outdoor recreation
nationally —to fund our City services and projects.
Longer-Term Gains - Marina is a destination in which to live, work & create industry
Acting with vision and boldness today, City of Marina can and will be the preferred place to recreate,
work, visit, and live on the Monterey Peninsula. Relax • Rejuvenate • Recreate in Marina
Important date for public participation Fort Ord Reuse Authority Trail Symposium January 22, 2015
9:00 am at CSUMB.
Dr. Fred Watson, CSUMB Professor Presentation:
This is our 64th meeting in the last year and half just on the rec. trail and greenway, and met with 30
different stakeholder organizations, 68 individuals on primarily a 1 on 1 capacity or a public venue.
The purpose of that is to try and come up with an idea that’s a win, win for all. That we understand the
details of everybody’s desires and concerns and we seek ways to incorporate those and come up with
an outcome.
Described one of the core elements of the Fort Ord Rec. Trail and Greenway, which is a 13 mile loop
around the City of Marina. Blue line is the Coastal Rec. Trail, which already exists that continues
around to the other side of Reservation Road, across Blanco down to the Salinas River, around the
back of the Airport and in the first phase the north side of Marina and the backside of Marina Station.
The loop is a very important concept in trails, it connects together the things we know really well… the
big parks in the region we know really well but it also connects together an number of assets in our
region that most folks potentially don’t know about. Not far from the Equestrian Center is an old army
bike trail it’s only about an eighth of a mile from Imjin surrounded by some trees right in the middle of
an area that is pretty busy and will get busier when you build out Marina. Identifying these little spots
and realizing how you can string them together if you think ahead and make sure we don’t accidently
put a building on top of them.
The Salinas River, the City of Marina owns the Salinas River Habitat Reserve. It’s the only public
land short of a road crossing, between the ocean and the Salinas River National Wildlife Refuge and
King City. King City built a pedestrian bridge right across the river so they could access both sides of
it in a pedestrian capacity. So, this is a fantastic scenic, touch and feel open space access in the Salinas
River itself within the City of Marina’s possession already. This is such an important part of our
region, culturally that’s kind of ironic but that’s the case and we have the opportunity to correct that or
at least get to the point where we can have this view as a public view that’s encouraged and facilitated
and hopefully get to the point where we can have public access to the river itself.
The motion that started this process of looking into what it would take to realize the greenway and rec.
trail from 8th Street to Jerry Smith, that was January 28th of this year and in the motion it said to be
delivered no later than March 15th and now we’re just getting the results of that now which is now out
of date. The information upon which the report was based were constantly changing and the vision to
accommodate different input and so it actually absolves that in action right here (showed two maps that
illustrates how the vision has changed since what was given to the consultants back in January).
8b(1) Pg. 6
Page 7
When we first put together the greenway vision we looked at that trail of open space link from the
Base Reuse Plan and indicated that this was to be a big open space corridor and we drew a great big
green corridor right across. As we became more aware of all the different things we want to do with
this landscape, not just that trail of open space link it was realized that we can still achieve the
greenway connectivity of the trail through the greenway, the open space pleasant feel of bringing a
trail and what was also designated for that area which is commercial parcels of the General Plan and
Public Facilities. We originally had that framed but we’re now looking for ways as to how we can
achieve both. There is plenty of room for serious commercial development. So that’s the change in
the plan as we meet with stakeholders between January and today.
Similarly out at the Airport, we put a green stripe right across here (referring to slideshow map) when
we first put together the vision but we became much more aware of the airport planning process which
is happening right now as well. The airport planning process is looking at aviation development
reserve here (referring to slideshow map), revenue support on a lot of the remaining land and we think
and have been working very carefully with all the acreage and all of the climates to try and identify a
way where you can still have green corridor through here (referring to slideshow map) that’s down to
about 190 feet there, not 300 and leaves plenty of room for the aviation development and other forms
of revenue support the city is pursuing.
As time goes on we are finding more and more of the concerns and looking back to make fewer and
fewer changes so we can kind of converge on to something stable.
This slide is 3.6-3 of the Base Reuse Plan. The orange dotted lines are all hiker/biker trails. The dark
orange lines are 12 foot wide paved hiker/biker trails and the light orange are 10 foot wide paved
hiker/biker trails so they’re all in the base Reuse Plan. Lots of things on this map have changed and
have been built out differently since the Base Reuse Plan was put together but the concept was there.
It would be impossible to build out this exactly right now because we’ve already built things a little bit
differently. But the concept is there to have these regional trails connecting through this landscape and
we’re just folks who are trying figure out exactly how would that happen now given what’s happened
since the Base Reuse Plan and the opportunities we have before us.
In the first map, the 13 mile loop, it’s crucial to think about how folk can get from where they live and
work in the developed part of Marina now and the soon to be much larger developed part of Marina.
How’s anyone in this landscape going to go quickly get from their house or their place of work onto
the trails? Within 5 minutes they’ll want to be experiencing recreation. We want to look at these short
connections. We’re thinking California needs to have a nice Class One ideally class zero bike line
connect through here. Bike lanes are classed 3, 2 and 1. Class 3 is a route that just has a sing on the
road saying bikers can use this route with nothing physically there for them. Class 2 is a stripe on the
road saying “cars you have to keep out of this bit because the bikers are in this lane. Class 1 is
physical separation, so there might be a curb between the road and the bike. That’s as far as most
urban bikeway planning guidelines go. None of them require any sense of peace of mind separation if
you like. You can have a Class 1 bikeway that is 3 feet from busses going flying through and building
not particularly nice to look at so we’re talking of the idea of a Class Zero being physically separate
with typically 150 feet of open space on either side. That is what we’re calling Class Zero. The idea
comes from difference between this back trail right next to Highway One and the new one on the State
Park. We kind of inherited a bike trail from 20 years ago that’s right next to Highway One and when
you’re on it, it feels stressful. When the State Park built the new one it’s only 150 feet further from the
Highway but it’s a whole different ballgame that 150 feet is what we think the distance it takes to feel
like you’re recreating and not commuting.
There is plenty of opportunity. We’re thinking about an extension of 2 nd Avenue meeting up at Del
Monte, plenty of room to have a bike lane next to that road.
8b(1) Pg. 7
Page 8
We’re thinking about have a bike lane running through what is now the Cypress Knolls development
and possibly at the top of Carmel going through Marina Heights. This is a perfect route to get to the
Jerry Smith Corridor.
We’ve met with the 6 major developers on the former Fort Ord (Marina Community Partners, the
Chadmar Group, the new Del Rey Oaks developers and Monterey Peninsula Engineers) trying to
understand their perspective.
Planning Commissioner’s Comments:
Commissioner Piper – Greenway is primarily for walking, biking and horses, it’s not a road. If I’m
coming from another state why would I go out to the National Park? What is there? Is there any part
of this that provides for picnicking or overnight camping or some reason an out-of-towner would
actually go to the National Monument? Understands why a local would get on these greenways but
does not understand how we’re incorporating tourism.
Commissioner Furey – What are the dollars involved and what’s the payoff? Industries spring up to
support the kinds of activities. To close our eyes and not imagine those things will come I think is just
naïve. Several people here were at the forum that was sponsored through FORA and the University,
the top urban planners in the country where they talked over and over about this sort of thing about not
in my generation, not in most of the generation sitting in this room but the new generation. The people
who go RV’ing like to ride their bikes and do recreational things. Again, cost is going to be something
that’s going to be very important. What’s the template, what’s the plan for the future, where’s is this
city heading and what’s its identity? Whether this is a part of that it’s something that the people who
live here and people involved in the city owe the city and owe the city its future. To think a business
wouldn’t spring up out of these opportunities is really dated thinking.
Commissioner Turgen – Concerned that all the effective policy and documents, the infrastructure, the
preparing of a new EIR, these were to be brought back in March and they are just now getting to
Council. How long do you guys expect this to actually go? To get those documents I know how long
the policy takes to change. We’re looking at years before this is even going to come to any type of
fruition with the other stakeholders that are involved, the other EIR’s that are involved, the
infrastructure just to get this planned. Has this been thought about? The PFIF Study on fees, $15,000
on fees for a single family residence, you’re not going to get one person to build a house. The fees are
astronomical already. No city has a fee of that high on a single family residence. If you look at the
numbers you have a commercial at $8,000 why would a single family residence have to pay $15,000?
Concerned about the time and money that’s going to be spent to take care of the affected policies going
forward.
Mayor opened floor for public comments:


Patti Bradshaw, Resident – Asked Council if Steve Emerson’s e-mail would be read as it has
interesting information; Can we get the State Park’s to relax their rules related to beach use i.e.
fires, dogs etc..? Did Jack Armstrong sit down to meet with Mr. Watson? Read e-mail from Steve
Emerson which, expressed concerns about opening a variety of EIR’s, DDA’s and agreements with
a multitude of agencies and private parties, including the City’s Master Plan which could lead to
new and unneeded litigation that will cost hundreds of thousands of dollars.
Harald Kelley, Fire Chief – Nice to hear whether or not the fire station get built or not it all
depends on what happens with development but nice to hear the fire station could share space with
the greenway. Notice that talk about the 8th street access to the State Beach Park but there is
another access trail at the end of Dunes Drive, which I believe is the Monterey Regional Park
district and maybe that loop could somehow connect at Dunes Drive.
8b(1) Pg. 8
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Page 9
Cheryl Swix, Resident – Continued to read e-mail from Steve Emerson – “If the purpose is to add
more recreational possibilities for our residents, perhaps we should make the ones we have
functional. We should work at delivering top shelf facilities and adequate staff to deliver on the
promise of City government to the people that live within our community today. Once we can say
we have delivered on that promise, then and only then, should we look at the type of proposal
planned within these documents. Finally, there may well be some aspects of this proposal that
could be worked into future agreements or other long term plans without the expense of time and
monies this plan outlines. If they make sense overtime then they should be pursued. This is the
wrong plan at the wrong time. I would urge the City Council and the Planning Commission to
consider rejecting this proposal and consider a very different path that focuses on the things our
community needs today. Let’s see a plan that outlines how we are going to get our parks, streets
and buildings to the level the citizens of Marina expect, as well as our City departments adequately
staffed and functioning efficiently. That is the proposal we should all ask to see from this City
Council”
Liz Billingsly, Resident – What does this cost the city? Where is the money coming from? Hopes
it is not coming from the newly passed Measures. What specific economic benefit will we have
from it? What direct sustainable revenue will this bring in? Who is leading this change and have
you obtained buy in for all parties and agencies involved or are we to shoulder all of it? We do not
have money for Police or Firefighters or for street repairs or clean up. Here we are getting involved
in this, for what purpose? We have enough bicycle paths that are not being used; they ride on the
side walk. I do not wish to have you all spend money on a pipe dream of one or two people. Our
taxes are not to be used for this, but to have more Police and Firefighters and City personal that we
are dire need of. We already spend $10,000.00 for what, to find out that this is just a dream?
Repair the Streets we have, would have been better spend the $10,000.00 on maintenance.
Wendy Elliot, The Dunes Project Director – Met with Fred and Gail and talked about this concept
and we’re very excited that we actually have trail layouts through the Dunes that seem to jibe with
what is being talked about here. Was a little alarmed when I saw the meeting materials; there were
slides and bullet points about amending the Specific Plans, amending the Dunes EIR, going back
and renegotiating our DDA, our Development Agreement, talking about road closures within the
Dunes community. I stated this before and would like to reiterate that maybe a legal opinion about
exactly what documents might need to be looked at, what the exposure or whatever comes out of
this, what king of exposure that might open the city to vis-à-vis EIR’s and Development
Agreements and DDA’s, Specific Plans etc… might be a good step to take along this path before
you get too much further down it. It’s scary when you have an entitle project and then having new
environmental work that may open the project up to additional review.
Fred Watson, CSUMB Professor – Provided additional information to support the first comment
that was made. We made a strong policy about meeting one on one with everybody as kind of the
first point of contact. We did telephone Jack Armstrong and asked for material to be sent to him
first. I will put together a set of maps to send to him as soon as this session is over. We would like
to very much do whatever we can to avoid opening documents as much as possible. The Dunes
project is the only entitle project that I’m aware of that through which the trail goes.
Darious Rake, Resident – As a resident of Marina I see this type of trail system as being a real
benefit to my quality of life. I do like to do outdoor recreation type activities and the closer to my
house the better I feel it. As a cyclist I regularly travel to other communities to enjoy their trail
systems and I spend money in those communities.
8b(1) Pg. 9
Page 10
Planning Commission Recommendations:
David Burnett - That Council gives direction that a study group or direct the Planning Commission to
conduct public hearings/public meetings on the proposed greenbelt.
That Council gives direction to staff to begin discussions resulting in public forum/public meetings to
be conducted by the Planning Commission to get input on the discussion that we had tonight. I believe
from tonight’s agenda – Discussion of Recreational Trails and Greenway Corridors and from that
perhaps we could formulate a specific item that would then go back to Council to be considered and to
give staff real direction.
Mayor Delgado – So I wrote down that the Planning Commission would like to help facilitate the
vision discussed tonight had hoes that City Council would direct staff to hold Planning Commission
public meetings for input on tonight’s greenway trail and corridor system and then at that point the
Planning Commission would hope to give staff more tangible direction or motions.
Motion
MORTON/O’CONNELL: THAT THE CITY COUNCIL:
(1)
SUPPORT THE CONCEPT SUBSTANTIALLY PRESENTED BY EXHIBIT C
OF A TRAIL AND GREENWAY SYSTEM AND A PROCESS TO PROGRESS
WITH THAT CONCEPT
(2)
INCLUSIVE OF CITY PARKS AND RESIDENTIAL AND THE CONNECTION
TO THOSE
(3)
HOW THIS CAN BE DONE ON LANDS THAT THE CITY CONTROLS
(4)
THAT WE COME BACK WITH SOME DESIGN FEATURES SUCH AS
WIDTHS OF DIFFERENT SEGMENTS
(5)
THAT WE PROPOSE THIS CONCEPT AS MARINA’S CONTRIBUTION TO
THE FOR A URBAN DESIGN GUIDELINE PROCESS
(6)
THAT WE DIRECT STAFF TO WORK WITH FRED WATSON TO GET
MORE REFINED MAPS THAT INCLUDE POTENTIAL TRAILS ACROSS
CYPRESS KNOLLS, EDC PARCELS, MARINA EQUESTRIAN CENTER AND
THE AIRPORT
(7)
THAT WE DIRECT STAFF TO TALK WITH FAA FOR TRAIL
INCORPORATION TO APPROPRIATE PLANNING DOCUMENTS THAT
FAA CONTROLS
(8)
THAT STAFF SEEKS EXPEDITIOUSLY AS APPROPRIATE
ADDRESSING SOLUTIONS TO HABITAT MANAGEMENT TAKE
FOR
5. ADJOURNMENT: 9:12 PM
Anita Sharp, Deputy City Clerk
ATTEST:
Bruce C. Delgado, Mayor
8b(1) Pg. 10
Agenda Item: 8b(2)
December 16, 2014
MINUTES
5:30 P.M. Closed Session
6:30 P.M. Open Session
REGULAR MEETING
CITY COUNCIL, AIRPORT COMMISSION,
MARINA ABRAMS B NON-PROFIT CORPORATION, MARINA JOINT POWERS
FINANCING AUTHORITY AND SUCCESSOR AGENCY OF THE FORMER MARINA
REDEVELOPMENT AGENCY
Council Chambers
Marina, California
1.
CALL TO ORDER
2.
(City Council, Airport
Commissioners, Marina Abrams B Non-Profit Corporation, and Redevelopment Agency
Members)
Nancy Amadeo, David W. Brown, Gail Morton, Mayor Pro-Tem/Vice Chair Frank
O’Connell, Mayor/Chair Bruce C. Delgado
3.
CLOSED SESSION: As permitted by Government Code Section 54956 et seq., the (City
Council, Airport Commissioners, Marina Abrams B Non-Profit Corporation, and
Redevelopment Agency Members) may adjourn to a Closed or Executive Session to
consider specific matters dealing with litigation, certain personnel matters, property
negotiations or to confer with the City’s Meyers-Milias-Brown Act representative.
a. Conference with Legal Counsel Existing Litigation, – (Paragraph (1) of subdivision (d)
of Section 54956.9) – One case
(1) Marina v. Fort Ord Reuse Authority
b. Labor Negotiations
i.
Marina Employee Association
ii.
Marina Management Employees Association
iii. Marina Public Safety Officers Association
iv.
Marina Public Safety Manager’s Association
v.
Marina Professional Firefighters Association
vi.
Department Directors
1. Community Development Director
2. Finance Director
3. Fire Chief
8b(2) Pg. 1
MINUTES for City Council Meeting of Tuesday, December 2, 2014
Page 2
4. Police Chief
5. Recreation and Cultural Services Director
City Negotiators: Layne P. Long, City Manager and Employee Relations Officer
c. Performance Evaluation, Unrepresented Employee – City Manager
6:30 P.M.
RECONVENE OPEN SESSION AND REPORT ON ANY ACTIONS TAKEN IN
CLOSED SESSION
Rob Wellington reported out Closed Session: Council met at 5:30 as indicated on the agenda with
regard to the three matters listed. With regard to agenda item 3a Existing Litigation – Council received
information from its attorneys in the matter, gave general direction, no reportable action was taken.
Agenda item 3b Labor Negotiations – Brief report by the city’s negotiator on a single matter of labor
negotiations and that matter was continued over, no action was taken. Agenda item 3c Performance
Evaluation of the City Manager – Council had discussion with the City Manager, no action was taken.
4.
5.
SPECIAL PRESENTATIONS:
a. City Council consider adopting Resolution No. 2014-120, canvassing the November 4,
2014 General Municipal Election of the City of Marina and Measures E and F.
MORTON/O’CONNELL: TO APPROVE RESOLUTION NO. 2014-120, CANVASSING THE
NOVEMBER 4, 2014 GENERAL MUNICIPAL ELECTION OF THE CITY OF MARINA AND
MEASURES E AND F. 5-0-0-0 Motion Passes
b. Swearing In of City Council Member-Elect Nancy Amadeo
Council Member Elect Nancy Amadeo was sworn in by Deputy City Clerk Sharp
c. Swearing In of City Council Member-Elect David W. Brown
Council Member Elect David W. Brown was sworn in by Deputy City Clerk Sharp
d. Swearing In of Mayor-Elect Bruce C. Delgado by Jane Parker, Monterey County
Supervisor
Mayor Elect Bruce C. Delgado was sworn in by Deputy City Clerk Sharp
--RECESS FOR LIGHT REFRESHMENTS IN THE ROCKY HAN COMMUNITY CENTER--?
7:07 P.M.
RECONVENE OPEN SESSION
8b(2) Pg. 2
6.




Page 3
SPECIAL ANNOUNCEMENTS AND COMMUNICATIONS FROM THE FLOOR: Any
member of the Public or the City Council may make an announcement of special events or meetings
of interest as information to Council and Public. Any member of the public may comment on any
matter within the City Council’s jurisdiction which is not on the agenda. Please state your name for
the record. Action will not be taken on an item that is not on the agenda. If it requires action, it will
be referred to staff and/or placed on a future agenda. City Council members or City staff may
briefly respond to statements made or questions posed as permitted by Government Code Section
54954.2. In order that all interested parties have an opportunity to speak, please limit comments to
a maximum of four (4) minutes. Any member of the public may comment on any matter listed on this
agenda at the time the matter is being considered by the City Council
Gary Krissa, Resident – Commented about the intersection of Del Monte Avenue and Beach Road
and the current dangers of night drivers running the stop sign at 40 mph. What is the long-term
goal for this area? Can we at least get those blinking solar stop signs that are on General Jim
Moore Blvd? It would make it safer.
Terry Siegrist, Recreation Director – Christmas Tree Lighting Celebration this Friday at Vince
DiMaggio Park starting at 6:00PM; Senior will be attending the Dickens Fair in Daily City; on
Sunday, December 14th at 11:00 am. is the Annual Senior Christmas Dinner at the Community
Center; December 10th – December 19th is the Youth Center Holiday Shopping where the youths
can buy Christmas presents for their parents; December 19th from 12:00-5:00pm. is the field trip to
Watsonville for the Santa Train; Youth Basketball Clinic (K-5) in December and January; PAL
Junior High Basketball Program, application are now be accepted for the season starting January
10th through March 7th at CSUMB; December 5th from 6:00-9:00pm. is the field trip to the Hartnell
Planetarium; Saturday, December 6th from 1:00-6:00 pm. is the field trip to San Jose for the
K1Speed Cemter; High School Bon Fire on Saturday from 7:00-10:00pm; Sunday, December 7th
from 2:00-4:00 is All-Skate at Water City and then from 4:00-6:00 pm the Teens will have a BBQ
for National Pearl Harbor Day to honor al our Veterans.
Council Member Amadeo – Access Monterey Peninsula has a new client, MPUSD and showing all
their meetings on ampmedia.org as well as on Cable TV.
Mayor Delgado – Thanked staff for setting up the food tables; Marina Volunteer Firefighters 14th
Annual Toy Drive at Wal-Mart this Saturday and Sunday from 10:00am-5:00pm; Thanks to Santa
for showing up; Marina Schools grade K-12 are all having holiday events, play and winter concerts
from the beginning of this week through December 16th. Special meeting next week, December 9th
7.
CONSENT AGENDA FOR THE SUCCESSOR AGENCY TO THE FORMER MARINA
REDEVELOPMENT AGENGY: Background information has been provided to the Successor
Agency of the former Redevelopment Agency on all matters listed under the Consent Agenda, and
these items are considered to be routine. All items under the Consent Agenda are normally
approved by one motion. Prior to such a motion being made, any member of the public or the City
Council may ask a question or make a comment about an agenda item and staff will provide a
response. If discussion or a lengthy explanation is required, that item will be removed from the
Consent Agenda for Successor Agency to the former Marina Redevelopment Agency and placed at
the end of Other Action Items Successor Agency to the former Marina Redevelopment Agency.
8.
CONSENT AGENDA: Background information has been provided to the City Council, Airport
Commission, Marina Abrams B Non-Profit Corporation, and Redevelopment Agency on all matters
listed under the Consent Agenda, and these items are considered to be routine. All items under the
Consent Agenda are normally approved by one motion. Prior to such a motion being made, any
member of the public or the City Council may ask a question or make a comment about an agenda
item and staff will provide a response. If discussion or a lengthy explanation is required, that item
will be removed from the Consent Agenda and placed at the end of Other Action Items.
8b(2) Pg. 3
Page 4
a. ACCOUNTS PAYABLE:
(1)
Accounts Payable Check Numbers 73143-73229 totaling $247,951.63
Wire transfers totaling: $76,069.68
b. MINUTES:
(1) November 5, 2014, Regular City Council Meeting.
(2)
November 18, 2014, Regular City Council Meeting.
c. CLAIMS AGAINST THE CITY: None
d. AWARD OF BID: None
e. CALL FOR BIDS: None
f. ADOPTION OF RESOLUTIONS:
(1)
City Council consider adopting Resolution No. 2014-121, approving the
acceptance of one (1) Zero F11.4 Electric Motorcycle through a grant awarded
to the City of Marina by the Monterey Bay Unified Air Pollution Control
District and; authorize the City Manager to execute the terms of the agreement
on behalf of the City subject to final review and approval by the City Attorney,
and; approve and accept the grant.
g. APPROVAL OF AGREEMENTS:
(1)
City Council consider adopting Resolution No. 2014-122, approving
Agreement/Memorandum of Understanding between City of Marina and City of
Salinas for City of Marina participation in State of California, Office of Traffic
Safety “Monterey and San Benito County AVOID the Twenty Campaign”
program grant administered by City of Salinas Police Department, and; accept
Office of Traffic Safety grant funds administered by the City of Salinas relative
to reimbursement of costs and expenses incurred by City of Marina Police
Department for participation in said program, and; authorize Finance Director to
make necessary accounting and budgetary entries, and; authorize the City
Manager to execute the agreement on behalf of the City subject to final review
and approval by the City Attorney.
h. ACCEPTANCE OF PUBLIC IMPROVEMENTS: None
i. MAPS: None
j. REPORTS: (RECEIVE AND FILE):
(1)
Monterey-Salinas Transit, November 25, 2014 Newsletter
(2)
Monterey Regional Waste Management District, November 21, 2014 Highlights
k. FUNDING & BUDGET MATTERS: None
l. APPROVE ORDINANCES (WAIVE SECOND READING): None
m. APPROVE APPOINTMENTS: None
AMADEO/MORTON: TO APPROVE THE CONSENT AGENDA. 5-0-0-0 Motion Passes
8b(2) Pg. 4
9.
Page 5
PUBLIC HEARINGS:
a. City Council open public hearing and take testimony from public and adopt Resolution
No. 2014-123, approving a Conditional Airport Use Permit for Marina Motorsports,
Inc. to conduct non-aviation related motor sport activities on the south tarmac at the
Marina Municipal Airport; and authorize City Manager to execute the Conditional
Airport Use Permit on behalf of City, subject to final review and approval by City
Attorney.
THAT WE ADOPT RESOLUTION NO. 2014-123, APPROVING CONDITIONAL AIRPORT
USE PERMIT FOR MARINA MOTOR SPOTS TO CONDUCT NON-AVIATION RELATED
MOTORSPORTS ACTIVITIES ON THE SOUTH TARMAC AT THE MARINA MUNICIPAL
AIRPORT, THAT WE ALSO MAKE A RECOMMENDATION LETTER THAT IS SENT TO
THE FAA OUTLINING THE CONTRIBUTIONS MADE TO OUR ENTERPRISE FUND
FROM THIS ACTIVITY, THE RENTAL COSTS BEING PAID; THAT WE ALSO
EMPHASIZE IN THE LETTER THE EXPOSURE OF THE PUBLIC TO OUR AIRPORT
AND AVIATION ACTIVITIES BY THE CONDUCTING OF THESE ACTIVITIES ON THE
TARMAC AT THAT LOCATION; THAT WE CONTINUE TO IN OUR ADDRESSING THE
RELOCATION OF THESE NON-AVIATION USES IN THE DEVELOPMENT OF OUR
MASTER PLAN; THAT THE ACTIVITY IS NOT AN IMPEDIMENT TO THE
CONTINUING PROCESSES OF AIRPORT AND AVIATION DEVELOPMENT HERE IN
MARINA; AND THAT WE AUTHORIZE THE CITY MANAGER TO EXECUTE THE
CONDITIONAL AIRPORT USE PERMIT ON BEHALF OF THE CITY SUBJECT TO THE
FINAL REVIEW AND APPROVAL OF THE CITY ATTORNEY; AND THAT WE SOLICIT
A LETTER FROM SAM FARR’S OFFICE IN SUPPORT OF THIS MOTION. 5-0-0-0 Motion
Passes
Public Comments:

Richard Ramsdell, San Jose Resident – Been auto crossing at Marina Airport for quite a few years.
Supports motion. Stated if FAA declines this request the City has a binding document from the
Army which gives you legal authority to continue auto crossing on the South Tarmac without the
approval of the FAA. This document is called Restriction and Covenant to Restrict the Use of
Property/Environmental Restriction, commonly known as the “CRUP”. Article 4, Section 4.01
Suitable Activities states “Commercial Recreation Facilities other than the Golf Course.

John Moulton, Marina Motor Sport Treasurer and Event Chairman – Summarized some of the
donations and expenses Marina Motor Sports contributes to the city for 2013-2014. In 2013 we
had 73 events paying to the city $36,500; in 2014 we had 65 events for $39,000; we have a
tentative schedule for 2015 of 69 events which would come to $41,400. We pay independent
contractors to monitor traffic and clean up $66,000. We have donated over the last 2 years to
groups peninsula wide $37,650 and to Marina $23,450. This is our economic impact with what we
do out there.

Bob McCaffrey, Marina Motor Sports President – In your letter you might utilize the funding
you’re receiving or the rent you’re receiving from Marina Motor Sports specifically to offset
maybe some losses in rents that you would have otherwise been receiving if we had a better
economy with more airplanes. Not sure how the hangars are doing out there in terms of income
but it seems to me that there might be some half empty buildings out there. If in order to be
monetarily specific something that the FAA would respond too, possibly favorably, you might
consider that.
8b(2) Pg. 5

Page 6
Mary Posey – Been auto crossing for 40 plus years and an avid motor sports participant. Since
we’ve been auto crossing out at the Marina airport it’s been great. We’ve done a lot to really help
with getting the kids off the street and participating in Illegal Street racing and giving them a place
to play where it’s on a closed course against the clock, done legally. We provide a mentor program
for young drivers and offer them some guidance to help them get better familiar with their car, be
better drivers behind the wheel. We really don’t cause a lot of issues out there. The auto crossing
is probably one of the safest forms of motor sports that we have today. Hopes the use permit goes
through. Thank you for all you’ve done and what you can do for us in the future.
b. City Council open public hearing and take testimony from public and adopt Resolution
No. 2014-124, approving a Conditional Airport Use Permit for Monterey Bay Karters to
conduct non-aviation related motor sport activity on the north tarmac at the Marina
Municipal Airport; and authorize City Manager to execute the Conditional Airport Use
Permit on behalf of City, subject to final review and approval by City Attorney.
THAT WE ADOPT RESOLUTION NO. 2014-124, APPROVING A CONDITIONAL
AIRPORT USE PERMIT FOR MONTEREY BAY KARTERS TO CONDUCT NONAVIATION RELATED MOTORSPORTS ACTIVITIES ON THE NORTH TARMAC AT THE
MARINA MUNICIPAL AIRPORT, AND THAT WE WRITE A RECOMMENDATION
LETTER TO FAA TO ACCOMPANY THE CITY’S PERMIT WHICH OUTLINES THE
CONTRIBUTIONS TO THE ENTERPRISE FUND FROM THE ACTIVITY OF THE
ORGANIZATION, THAT THIS EXPOSES THE PUBLIC TO AIRPORT AND AVIATION
RELATED ACTIVITIES AND THAT WE’RE ADDRESSING THE CONCERNS OF
RELOCATION IN OUR MASTER PLAN; AND THAT THESE OPERATIONS ARE NOT
IMPEDIMENT TO THE CONTINUING PROCESSES OF AIRPORT AND AVIATION
DEVELOPMENT; AND THAT WE SOLICIT A LETTER EITHER SIMULTANEOUSLY IN
THE SAME LETTER FROM SAM FARR’S OFFICE; AND THAT WE AUTHORIZE THE
CITY MANAGER TO EXECUTED THE CONDITIONAL AIRPORT USE PERMIT ON
BEHALF OF THE CITY SUBJECT TO THE FINAL REVIEW AND APPROVAL OF THE
CITY ATTORNEY. 5-0-0-0 Motion Passes
Public Comments:

Alan Freese, Monterey Bay Karters – Brought Council up to speed with regard to the connection
with Sam Farr’s office, which also includes support for Marina Motor Sports activities at the
Marina Airport. Regarding Monterey County Parks, Mike Ferry who was the Chief Park Ranger
resigned and they have yet to replace him in his position. Kathleen Lee has been working with us
with in parks but has gone very stagnant. We were privileged to become, in August part of the
Airport Master Plan. We have some other people who have become involved as far as making this
a full motor sport park. We have some really good people lined up for this project. At some point
in the future we would like to sit down with staff to take it to the next step or see what the city
would need best from us for these events. Alec Arago is quite confident that they (FAA)
understand that things in Monterey County take time and as long as they see that we’re not just
sitting on our hands doing nothing and trying to make real progress. Spoke about what FAA might
grant to the city and possible runway extensions. Reiterated that they are painted with the same
brush with Alec at his office even though the letters are addressed to me it encompasses Marina
Motor Sports and I’m sure it would also encompass South Bay Consortium. They realize the
benefits of all three entities out there, the money it brings to the economy.
8b(2) Pg. 6
Page 7
c. City Council open public hearing and take testimony from public and adopt Resolution
No. 2014-125, approving a Conditional Airport Use Permit for South Bay Regional
Public Safety Training Consortium to conduct non-aviation related public safety cadet
and officer automobile training activities on south tarmac at the Marina Municipal
Airport; and authorize the City Manager to execute the Conditional Airport Use Permit
on behalf of the City, subject to final review and approval by City Attorney.
Public Comments:

Mark Magee, Golden Gate Chapter of the BMW Car Club – Run car control clinics, train 200
students throughout the Bay Area every year and have a teen clinic, focused on drivers between the
ages of 16-21, that is open to the general public subsidized program. We target those young
drivers whose often their own assessment of their ability assesses where they’re at in terms of skill
level. We train then to raise their skill levels to deal with difficult situations. If the FAA is happy
with safety related programs perhaps you could consider broadening this permit beyond that one
entity to other entities that are teaching car control skills.
MORTON/BROWN: TO APPROVE RESOLUTION NO. 2014-125, APPROVING A
CONDITIONAL AIRPORT USE PERMIT FOR SOUTH BAY REGIONAL PUBLIC SAFETY
TRAINING CONSORTIUM TO CONDUCT NON-AVIATION RELATED PUBLIC SAFETY
CADET AND OFFICER AUTOMOBILE TRAINING ACTIVITIES ON SOUTH TARMAC AT
THE MARINA MUNICIPAL AIRPORT; AND AUTHORIZE THE CITY MANAGER TO
EXECUTE THE CONDITIONAL AIRPORT USE PERMIT ON BEHALF OF THE CITY,
SUBJECT TO FINAL REVIEW AND APPROVAL BY CITY ATTORNEY. 5-0-0-0 Motion
Passes
10.
OTHER ACTIONS ITEMS OF THE SUCCESSOR AGENCY TO THE FORMER
MARINA REDEVELOPMENT AGENCY: Action listed for each Agenda item is that
which is requested by staff. The Successor Agency may, at its discretion, take action on any
items. The public is invited to approach the podium to provide up to four (4) minutes of
public comment.
11.
OTHER ACTION ITEMS: Action listed for each Agenda item is that which is requested by
staff. The City Council may, at its discretion, take action on any items. The public is invited
to approach the podium to provide up to four (4) minutes of public comment.
Note: No additional major projects or programs should be undertaken without review of the impacts
on existing priorities (Resolution No. 2006-79 – April 4, 2006).
a.
City Council consider adopting Resolution No. 2014-126, authorizing the City
Manager to purchase Pollution and Legal Liability (PLL) insurance coverage for the
remaining former Fort Ord properties at a coverage lever of $ 1 million dollars; and
authorize the City Finance Director to make necessary accounting and budgetary
entries. Continued from November 18, 2014.
MORTON/O’CONNELL: THAT WE PARTICIPATE FOR THE PURCHASE OF ONE
MILLION ($1,000,000) OF COVERAGE IN THE POLLUTION AND LEGAL LIABILITY
INSURANCE POLICY BEING PROCURED BY FORA EFFECTIVE FOR A TEN (10) YEAR
PERIOD COMMENCING JANUARY 1, 2015. 5-0-0-0 Motion Passes
Public Comments: None received
8b(2) Pg. 7
12.
Page 8
COUNCIL & STAFF INFORMATIONAL REPORTS:
a. Monterey County Mayor’s Association [Mayor Bruce Delgado]
Mayor Delgado – Next Mayor’s Association meeting is this Friday in Monterey.
b. Council and staff opportunity to ask a question for clarification or make a brief report
on his or her own activities as permitted by Government Code Section 54954.2.
City Manager Long – Announced next Tuesday, December 9th will be a special study meeting on the
Dunes Project and will be covering the overview of the different agreements to bring us to speed as to
what is going on.
Mayor Pro-Tem O’Connell – For the Christmas Tree Lighting, does that tree stay lit up every night
during the holiday season? Driven up that street at night and have never seen it lit up after the opening
night. Is there a timer that turns it on and off?
Mayor Delgado - Comments about the sprinklers going full bore on Del Monte, between Reindollar
and Carmel, right after a heavy rain. Can the water be turned off during the rainy times? Is the theater
still moving forward? Asked the Council Members if they wanted to have a retreat in January.
Council Member Brown – Commented that he needed to report to the Water Conservation
Commission on what steps the city is taking to reduce water uses and if we are looking into getting
sensors.
13.
ADJOURNMENT: Meeting adjourned at 8:50 PM
ATTEST:
8b(2) Pg. 8
December 1, 2014
Honorable Mayor and Members
of the Marina City Council
Item No. 8f(1)
City Council Meeting
CITY COUNCIL CONSIDER ADOPTING RESOLUTION NO. 2014-,
AUTHORIZING SUBMISSION OF GRANT APPLICATION FOR 2014
ASSISTANCE TO FIREFIGHTERS GRANT PROGRAM’S STAFFING FOR
ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) FOR FOUR (4) FULL
TIME FIREFIGHTERS; AUTHORIZING THE CITY MANAGER TO EXECUTE
THE GRANT APPLICATION ON BEHALF OF THE CITY SUBJECT TO FINAL
REVIEW AND APPROVAL BY THE CITY ATTORNEY
RECOMMENDATION:
It is requested that the City Council:
1. Consider adopting Resolution No. 2014-, authorizing submission of grant application by
the Marina Fire Department for 2014 Assistance to Firefighters Grant Program’s Staffing
for Adequate Fire and Emergency Response (SAFER) for four (4) full time Firefighters;
2. Authorize the City Manager to execute the grant application on behalf of the City subject
to final review and approval by the City Attorney.
BACKGROUND:
The Federal Emergency Management Agency (FEMA) U.S. Fire Administration Assistance to
Firefighters Grant Program for SAFER provides grants to fire service agencies to provide
financial assistance for firefighters staffing. The total amount allocated for FY 2014 is estimated
to be $300 million dollars.
The goal of the grant program is to assist local fire departments with staffing and deployment
capabilities in order to respond to emergencies, assuring communities have adequate protection
from fire and fire related hazards. In addition assist departments in an effort to meet the
minimum staffing as defined in National Fire Protection Agency (NFPA) 1710 and 1720, as well
as OSHA Respiratory standard 29 CFR 1910.134(g)(4)(ii).
ANALYSIS:
This grant program has three (3) priorities for financial assistance to help fire departments
increase frontline firefighters. The priorities are:
1.
Re-hiring laid off firefighters
2.
Retention of firefighters who face imminent layoff and or filling positions vacated
through attrition but not filled due to economic circumstances.
3.
Hiring new firefighters
Staff is recommending that the City Council consider approving submittal of grant application
for grant funds for four (4) full time firefighters.
While not required for a SAFER grant, it is preferable that the enhanced or restored staffing
levels of all SAFER grantees should improve the safety of firefighters by ensuring all firstarriving apparatus are staffed with a minimum of four qualified personnel to meet OSHA
Respiratory standard 29 CFR 1910.134(g)(4)(ii) who are capable of initiating the suppression
response.
8f(1) Pg. 1
The department will be able to demonstrate that we have achieved more efficient responses and
safer incident scenes; thereby insuring the community has improved protection from fire and
fire-related hazards.
Currently the fire department staffs two shifts with four personnel. One of the shifts is always at
minimum staffing due to the FY 2014/2015 budget reductions where one vacant Firefighter
position was not funded. Due to vacation, sick leave, training etc, daily staffing is maintained at
the minimum level of one three-person engine company more often than not. This staffing
model makes it very hard to meet the OSHA Respiratory standard 29 CFR 1910.134 (two in-two
out rule) until automatic aid or mutual aid is received.
If awarded the SAFER grant, the fire department will be able to maintain a minimum of four
personnel on duty. When fully staffed a shift would have five (5) persons allowing for one twoperson company and one three-person company. However, at all times the fire department will
be able to respond with four personnel meeting OSHA standard 1910.134.
While the fire department engages in automatic aid, we are limited to how these agreements are
implemented due to existing staffing. The additional firefighters would allow the department to
expand and enhance those agreements improving the overall initial response to fire related
emergencies. Mutual Aid requires a minimum of three personnel on an engine. With the
department only staffing one engine most of the time, the department finds itself unable to
reciprocate on many occasions. The added firefighters will improve our ability to participate in
Mutual Aid improving the overall capabilities of the department.
The key grant program conditions are as follows:



There are no annual salary limits
There is no prescribed cost share
Grantees that are hiring firefighters do not have to commit to retaining SAFER-funded
firefighters beyond the period of performance which is two years. However, no
firefighter layoffs are permitted – or either SAFER-funded or non-SAFER firefighters
during the grant’s period of performance.
SAFER funding will pay 100 percent of the salary and benefit costs for newly hired firefighters
(exclusive of overtime). The fire department will request that four (4) firefighter positions be
funded at an estimated amount of $1,150,496. The requested funding will pay for the four (4)
firefighters for two (2) years. There is no obligation to commit to retaining SAFER-funded
firefighters beyond the period of performance which is two years. However, no firefighter
layoffs are permitted – either SAFER-funded or non-SAFER firefighters during the grant’s
period of performance.
There is no grant match that will be required by the City of Marina. The total for this grant
project is estimated to be $1,150,496 over a two year period of performance.
FISCAL IMPACT:
The fire department may retain a grant writer for assistance with the writing of the grant. The
one-time cost would be $1,000. There are sufficient funds in the Fire Department FY 2014-2015
budget to cover this expense for submitting the grant application.
8f(1) Pg. 2
There will be additional costs that are not funded by the grant. These indirect costs are
associated with the hiring of firefighters are related to the pre-employment process such as
testing, physicals, background checks, uniforms and personal protective equipment. These
expenses are estimated at a total of $18,000 that will need to be funded by the City to hire the
newly appointed firefighters.
However, should the City Council approve this request and the grant is awarded, anticipated
notification will occur in late FY 2014-2015 or FY 2015-2016. Should the Fire Department
receive the grant award the Fire Department will return to the City Council for consideration of
approval to receive the grant, request the necessary appropriations, make any necessary
budgetary adjustments and request authorization to begin the recruitment process.
CONCLUSION:
This request is submitted for City Council consideration and possible action.
____________________________
Harald G. Kelley
Fire Chief
City of Marina
REVIEWED/CONCUR:
_____________________________
Layne P. Long
City Manager
City of Marina
8f(1) Pg. 3
RESOLUTION NO. 2014A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA
AUTHORIZING SUBMISSION OF GRANT APPLICATION FOR 2014 ASSISTANCE
TO FIREFIGHTERS GRANT PROGRAM’S STAFFING FOR ADEQUATE FIRE AND
EMERGENCY RESPONSE (SAFER) FOR FOUR (4) FULL TIME FIREFIGHTERS;
AUTHORIZING THE CITY MANAGER TO EXECUTE THE GRANT APPLICATION
ON BEHALF OF THE CITY SUBJECT TO FINAL REVIEW AND APPROVAL BY THE
CITY ATTORNEY
WHEREAS, the Federal Emergency Management Agency and the United States Fire
Administration provides Assistance to Firefighters Grant Program to fire departments on an
annual basis, and;
WHEREAS, the purpose of the Staffing for Adequate Fire and Emergency Response (SAFER)
program is to provide grants to fire service agencies to provide financial assistance for firefighter
staffing, and;
WHEREAS, the goal of the grant program is to assist local fire departments with staffing and
deployment capabilities in order to respond to emergencies, assuring communities have adequate
protection from fire and fire related hazards, and;
WHEREAS, in addition, assist departments in an effort to meet the minimum staffing as defined
in National Fire Protection Agency (NFPA) 1710 and 1720, as well as OSHA Respiratory
standard 29 CFR 1910.134(g)(4)(ii), and;
WHEREAS, the total amount allocated for FY 2014 is estimated at $300 million dollars, and;
WHEREAS, SAFER funding will pay 100 percent of the salary and benefit costs for newly hired
firefighters (exclusive of overtime), and;
WHEREAS, the fire department will request that four (4) firefighter positions be funded at an
estimated amount of $1,150,496, and;
WHEREAS, the requested funding will pay for the four (4) firefighters for two (2) years, and;
WHEREAS, there is no obligation to commit to retaining SAFER-funded firefighters beyond the
period of performance which is two years. However, no firefighter layoffs are permitted – either
SAFER-funded or non-SAFER firefighters during the grant’s period of performance, and;
WHEREAS, if awarded this grant it will insure at all times the fire department will be able to
respond with four personnel meeting OSHA standard 1910.134, and;
WHEREAS, the fire department may retain a grant writer for assistance with the writing of the
grant. The one-time cost would be $1,000. There are sufficient funds in the Fire Department FY
2014-2015 budget to cover this expense for submitting the grant application, and;
WHEREAS, there will be additional costs that are not funded by the grant. These indirect costs
are associated with the hiring of firefighters are related to the pre-employment process such as
testing, physicals, background checks, uniforms and personal protective equipment. This
expense is estimated to be $18,000 that will need to be funded by the City to hire the newly
appointed firefighters, and;
8f(1) Pg. 4
Resolution No. 2014Page Two
WHEREAS, should the City Council approve this request and the grant is awarded, anticipated
notification will occur in late FY 2014-15; however no later than FY 2015-2016. Should the Fire
Department receive the grant award the Fire Department will return to the City Council for
consideration of approval to receive the grant, request the necessary appropriations, make any
necessary budgetary adjustments and request authorization to begin the recruitment process.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Marina does
hereby:
1. Authorize submission of grant application by the Marina Fire Department for 2014
Assistance to Firefighters Grant Program’s Staffing for Adequate Fire and Emergency
Response (SAFER) for four (4) full time Firefighters, and
2. Authorize the City Manager to execute the grant application on behalf of the City subject
to final review and approval by the City Attorney.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Marina duly
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ATTEST:
________________________
_______________________________
Anita Flanagan, Deputy City Clerk
8f(1) Pg. 5
November 1, 2014
Item No.
8f(2)
CITY COUNCILCONSIDER ADOPTING RESOLUTION NO. 2014-,
APPROVING REGULAR CITY COUNCIL MEETING SCHEDULE FOR
2015 CALENDAR YEAR.
REQUEST:
It is requested that the City Council consider:
1.
Adopting Resolution No. 2014-, approving regular City Council meeting schedule for
2015 Calendar Year.
BACKGROUND:
The City Council meets regularly on the first and third Tuesdays of each month.
In the 2015 calendar year, there are holidays observed by the City that would affect review of
agenda packet information.
Historically, City Council meetings scheduled for the Tuesday after a holiday have been
rescheduled to the Wednesday following the holiday. This change in the regular schedule allows
City Council members and the public an opportunity to ask questions of staff sufficiently in
advance of attendance at a regular City Council meeting.
In 2015, the holidays and special events that may affect agenda packet review include: New
Years Day-Thursday January 1st; Martin Luther King Jr, Birthday-January 19th; Presidents DayFebruary 16th and August 4th National Night Out
ANALYSIS:
For the fair and efficient consideration of matters, to insure that the public is fully informed of
the matters coming before the City Council, has an opportunity to witness the deliberations of the
members of the City Council and further to encourage public involvement, the 2015 City
Council meeting calendar is established and takes into consideration dates that may affect review
of items to be discussed at the regularly scheduled City Council meeting.
Due to the substantive demands related to review the City Council agenda packet by elected
officials and to allow for an opportunity for the City Council and public to ask questions
sufficiently in advance of attendance at a regular City Council meeting, the 2015 Calendar is
proposed which includes rescheduling three (3) meeting dates (“EXHIBIT A”).
1. Regular meeting of January 6, 2015 Cancelled;
2. Regular meeting of January 20, to Wednesday, January 21, 2015;
3. Regular meeting of February 17 to Wednesday, February 18, 2015;
4. Regular meeting of Tuesday, August 4, to Wednesday, August 5, 2015
Rescheduling these meeting dates will allow the time necessary for questions and clarifications
from the City Council and any interested parties.
8f(2) Pg. 1
As a matter of governance, the City holds City Council meetings and establishing the 2015
calendar in advance provides the City Council, staff and public advanced notice in regard to
when the regular business of the City will be discussed.
FISCAL IMPACT:
None
CONCLUSION:
_____________________________
Layne P. Long
City Manager
City of Marina
8f(2) Pg. 2
APPROVING REGULAR MEETING SCHEDULE FOR 2015 CALENDAR YEAR
WHEREAS, City Hall is closed on New Year’s Day, Thursday, January 1, Martin Luther King
Jr. Day, January 19; Presidents Day, Monday February 16; and
WHEREAS the Annual National Night Out Event is held on the first Tuesday of August, ;
WHEREAS, Due to the substantive demands related to review of the City Council agenda packet
by elected officials and to allow for an opportunity to ask questions of staff sufficiently in
advance of attendance at a regular City Council meeting, the 2015 Calendar is proposed which
includes rescheduling the regular meetings of:
1. Regular meeting of January 6, 2015 = Cancelled
2. Regular meeting of January 20, to Wednesday January 21, 2015;
3. Regular meeting of February 17, to Wednesday, February 18, 2015;
4. Regular meeting of August 4, to Wednesday, August 5, 2015
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Marina hereby
approve the Regular Meeting schedule for 2015 Calendar Year (“Exhibit A”).
PASSED AND ADOPTED by the City Council of the City of Marina at a regular meeting duly
held on the 16Th day of December 2014, by the following vote:
ATTEST:
_____________________________
________________________________
8f(2) Pg. 3
EXHIBIT A
City of Marina
211 HILLCREST AVENUE
MARINA, CA 93933
PH. 831. 884.1278; FAX 831.384.9148
www.ci.marina.ca.us
MARINA CITY COUNCIL
REGULAR MEETING SCHEDULE 2015
Tuesday, January 6, 2015 (Cancelled)
** Wednesday, January 21, 2015
Tuesday, July 7, 2015
Tuesday, July 21, 2015
Tuesday, February 3, 2015
**Wednesday, February 18, 2015
*** Wednesday, August 5, 2015
Tuesday, August 18, 2015
Tuesday, March 3, 2015
Tuesday, March 17, 2015
Tuesday, September 1, 2015
Tuesday, September 15, 2015
Tuesday, April 7, 2015
Tuesday, April 21, 2015
Tuesday, October 6, 2015
Tuesday, October 20, 2015
Tuesday, May 5, 2015
Tuesday, May 19, 2015
Tuesday, November 3, 2015
Tuesday, November 17, 2015
Tuesday, June 2, 2015
Tuesday, June 16, 2015
** Regular Meeting rescheduled due to Monday Holiday
*** Regular Meeting rescheduled due to National Night Out
8f(2) Pg. 4
December 2, 2014
Item No. 8g(1)
CITY COUNCIL TO CONSIDER ADOPTING RESOLUTION NO. 2014-,
AUTHORIZING THE CITY’S RETIRED FIRE CHIEF, TO WORK ON A
TEMPORARY BASIS DURING THE RECRUITMENT AND
ORIENTATION OF THE FIRE CHIEF POSITION, AUTHORIZE THE
CITY MANAGER TO EXECUTE THE PERSONNEL ACTION FORM
ON BEHALF OF THE CITY
RECOMMENDATION:
It is recommended that the City Council:
1. City Council consider adopting Resolution No. 2014-, authorizing the City’s Retired
Fire Chief to work on a temporary basis, and;
2. Authorize the City Manager to execute the Personnel Action Form on behalf of the
City.
BACKGROUND:
The current Fire Chief will retire on December 27, 2014. The City has retained a third party to
assist with the open recruitment process. However, with the holidays most likely will not have a
prospective candidate starting until after the first of the year. The loss of the current incumbent
could cause a lapse in Fire Chief duties and does not allow any orientation of the new Fire Chief.
In addition, the Fire Department duty chief coverage would be left to one chief officer creating a
significant hardship.
Government Code section 7522.56 provides that a retiree is eligible for post-retirement
employment 180 days following his or her retirement date. This requirement applies to retiree
employment that begins after January 1, 2013. There are four exceptions to the 180 day wait
period including, (a) firefighter or public safety officer (which status is determined in accordance
with the definition set forth in CCR3 579.25) hired to perform a function or functions regularly
performed by a public safety officer or firefighter, (b) Public agency or school employer
provides a resolution certifying the nature of the employment and that the appointment is
necessary to fill a critically needed position before 180 days has passed; (c) State agency
employer certifies the nature of the employment and that the appointment is necessary to fill a
critically needed state employment position before 180 days has passed and submits the
information to California Department of Human Resources (CalHR) to obtain approval; CalHR
then provides the approval and documentation to CalPERS , and (d) the retiree participates in a
qualifying California State Universities (CSU) Faculty Early Retirement Program (FERP).
However, if a retiree receives a Golden Handshake or any other retirement-related incentive, the
180 day wait period applies without exception.
Government Code Section 21221(h) allows the governing body of a public agency to appoint a
retiree to work a vacant position during the recruitment to permanently fill the vacancy or during
an emergency to prevent stoppage of public business.
8g(1) Pg. 1
Pursuant to Government Code section 7522.56 the City must provide CalPERS a certification
resolution when hiring a retiree before 180 days has passed since the incumbents retirement date.
In addition the employment agreement or Personnel Action Form must be reviewed by the
governing body (“EXHIBIT A”).
ANALYSIS:
Due to the critical nature of the duties and responsibilities associated with the position of Fire
Chief and the requirement to ensure that such are continued to be applied until a new, full-time
replacement may be recruited, it is necessary and most efficient for the current incumbent,
Harald Kelley to continue his duties on a temporary basis until recruitment and/or orientation is
completed.
CalPERS limits the employment to 960 hours per fiscal year. The duration of the contract
position will be for (3) three months with a termination date of March 31, 2015. Should the
recruitment process and transition take less the contract will be ended prior to March 31, 2015.
Staff is recommending City Council’s approval of the proposed request to authorize the current
Fire Chief to work on a temporary basis as Interim Fire Chief.
FISCAL IMPACT:
Should the City Council approve this request, there is adequate funding in the FY 2014-2015
Budget and is contained in the General Fund, Fire Department budget, Permanent Salaries
Account No. 11.145.60110; this is a non-benefited position so there will be no necessary
budgetary changes.
CONCLUSION:
______________________________
Catrina Scharf
Human Resource Analyst
City of Marina
REVIEWED/CONCUR:
_________________________
Layne P. Long
City Manager
City of Marina
8g(1) Pg. 2
AUTHORIZING THE CITY’S RETIRED FIRE CHIEF TO WORK ON A
TEMPORARY BASIS DURING THE RECRUITMENT AND ORIENTATION OF
THE FIRE CHIEF POSITION, AUTHORIZE THE CITY MANAGER TO EXECUTE
THE PERSONNEL ACTION FORM ON BEHALF OF THE CITY
WHEREAS, section 7522.56 requires that post-retirement employment commence no earlier
than 180 days after the retirement date, which is June 27, 2015, and;
WHEREAS, there are four exceptions to the 180 day wait period including, (a) firefighter or
public safety officer (which status is determined in accordance with the definition set forth in
CCR3 579.25) hired to perform a function or functions regularly performed by a public safety
officer or firefighter, (b) Public agency or school employer provides a resolution certifying the
nature of the employment and that the appointment is necessary to fill a critically needed
position before 180 days has passed; (c) State agency employer certifies the nature of the
employment and that the appointment is necessary to fill a critically needed state employment
position before 180 days has passed and submits the information to California Department of
Human Resources (CalHR) to obtain approval; CalHR then provides the approval and
documentation to CalPERS , and (d) the retiree participates in a qualifying California State
Universities (CSU) Faculty Early Retirement Program (FERP). However, if a retiree receives a
Golden Handshake or any other retirement-related incentive, the 180 day wait period applies
without exception, and;
WHEREAS, in compliance with Government Code section 7522.56 the City must provide
CalPERS this certification resolution when hiring a retiree before 180 days has passed since the
incumbents retirement date, and;
WHEREAS, the current incumbent, Harald Kelley, will retire on December 27, 2014, and;
WHEREAS, due to the critical nature of the duties and responsibilities associated with the
position of Fire Chief and the requirement to ensure that such are continued to be applied until a
new, full-time replacement may be recruited, it is necessary and most efficient for the current
incumbent, Harald Kelley to continue his duties on a temporary basis until recruitment and/or
orientation is completed, and;
WHEREAS, section 7522.56 provides that this exception of the 180 day wait period shall not
apply if the retiree accepts any retirement-related incentive; and,
WHEREAS, the City of Marina and Harald Kelley certify that Harald Kelley has not and will not
receive a Golden Handshake or any other retirement-related incentive; and
WHEREAS, the City hereby appoints Harald Kelley as an interim appointment retired annuitant
to the vacant position of Fire Chief for the City of Marina under Government Code section
21221(h) effective December 29, 2014
WHEREAS, an appointment under Government Code section 2122(h) requires an active,
publicly posted recruitment for a permanent replacement; and
WHEREAS, the current status of this recruitment is open and in process. The City has retained a
third party to assist with the open recruitment process, however will not have a prospective
candidate starting until after the first of the year, and;
8g(1) Pg. 3
WHEREAS, this section 2122(h) appointment shall only be made once and therefore will end no
later than March 31, 2015.
WHEREAS, the entire Personnel Action Form between Harald Kelley and the City of Marina
has been reviewed by this body and is attached herein (“EXHIBIT A”), and;
WHEREAS, no matters, issues, terms or conditions related to this employment and appointment
have been or will be placed on a consent calendar, and;
WHEREAS, the employment shall be limited to 960 hours per fiscal year; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the
maximum monthly base salary paid to other employees performing comparable duties, divided
by 173.333 to equal the hourly rate; and
WHEREAS, the maximum yearly base salary for this position is ($186,152) and the hourly
equivalent is ($89.49), and the minimum yearly base salary for this position is ($109,046) and
the hourly equivalent is ($52.43); and
WHEREAS, the hourly rate paid to Harald Kelley will be $75.62, and;
WHEREAS, Harald Kelley, will not receive any benefit incentive, compensation in lieu of
benefit or other form of compensation in addition to his hourly pay rate.
WHEREAS, sufficient funding is included in the FY 2014-15 budget and contained within the
General Fund, Fire Department budget, and Salary accounts.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Marina does
hereby:
1.
Certify the nature of the appointment of Harald Kelley as described herein and
detailed in the attached appointment document, and that this appointment is necessary
to fill the critically needed position of Fire Chief for the City of Marina by December
29, 2014 because of the critical duties and responsibilities associated with this
position.
2. Authorize the City Manager to execute the Personnel Action Form on behalf of the
City.
held on December 16, 2014, by the following vote:
AYES, COUNCIL MEMBERS:
NOES, COUNCIL MEMBERS:
ABSENT, COUNCIL MEMBERS:
ATTEST:
_____________________________
_______________________
8g(1) Pg. 4
EXHIBIT A
8g(1) Pg. 5
December 3, 2014
Item No:
8h(1)
APPROVING REQUEST BY MARINA COMMUNITY PARTNERS LLC,
TO RELEASE PORTION OF PERFORMANCE BOND FOR PUBLIC
IMPROVEMENTS IN THE DUNES PHASE 1C AREA IN AMOUNT OF
$998,261.08, ACCEPTING A SUBSTITUTE PERFORMANCE BOND
SECURITY OF $100,000 FOR REMAINING STREET LIGHTS AND
ELECTRICAL FACILITIES, AND AUTHORIZING CITY MANAGER TO
EXECUTE RELEASE AGREEMENT ON BEHALF OF CITY SUBJECT
TO FINAL REVIEW AND APPROVAL BY THE CITY ATTORNEY
REQUEST:
It is requested that the City Council consider adopting Resolution No. 2014-:
1. Approve request by Marina Community Partners LLC, to release portion of performance
bond for public improvements in the Dunes Phase 1C area in the amount of $998,261.
2. Accept a substitute performance bond security of $100,000 for remaining street lights
and electrical facilities, and;
3. Authorize the City Manager to execute the release agreement on behalf of the City
subject to final review and approval by the City Attorney.
BACKGROUND:
At the regular meeting of August 5, 2008, the City Council adopted Resolution No. 2008-173,
approving Public Improvement Agreement between City of Marina (City) and Marina Community
Partners LLC (MCP), of Marina, California, to construct public improvements in the Dunes Phase
1C area. MCP, as required by the Public Improvement Agreement, filed with the City Clerk a
performance bond in the amount of $1,098,261.08 to guarantee completion of public improvements
for a portion of Phase 1C as described in the Agreement (“EXHIBIT A”).
California Government Code Section 66499.7 provides for partial release of a performance bond
when 80% or more of required improvements has been constructed. MCP has provided a list of work
completed for the improvements for this agreement in the amount of $998,261.08 which is 91% of
the amount of the performance bond for the portion of Phase 1C improvements as described in the
Agreement.
The estimated cost to complete the work on the remainder improvements is $100,000 for remaining
street lights and electrical facilities. MCP has requested reduction of the performance bond to that
amount.
This reduction in performance security does not affect the security posted for payment of wages,
subcontractors, project materials and equipment. The Labor & Materials Bond will remain in force in
the amount of $1,098,261.08 until such time as any claims of lien are to be recorded and following
acceptance of the work by the City.
8h(1) Pg. 1
ANALYSIS:
MCP has submitted information showing improvements completed to date to be in the approximate
amount of $998,261.08. Remaining work to be completed is shown to amount to $100,000 and
requested the performance bond be reduced to that amount.
The Acting City Engineer has confirmed that a substantial portion of the public improvements have
been completed in conformance with the approved Improvement Plans and are ready for acceptance
by the City upon completion of all the subdivision improvements.
MCP shall provide substitute security in the amount of $100,000 in place of the original
$1,098,261.08 in performance security. MCP has provided an updated Title Report that shows that
the bonds to be released are unencumbered by mechanics lien claims.
This request is submitted for City Council consideration to approve the request to reduce the
performance security from $1,098,261.08 to $100,000 at the request of MCP.
FISCAL IMPACT:
There is no fiscal impact as City inspections have shown approximately $998,261.08 in
improvements has been completed per approved plans and any failure to complete the public
improvements are covered by the substitute security in the amount of $100,000.
CONCLUSION:
____________________________
Edrie Delos Santos
Associate Engineer, Engineering Division
Community Development Department
City of Marina
____________________________
Nourdin Khayata, P.E.
Acting City Engineer
City of Marina
REVIEWED/CONCUR:
_____________________________
Christine di Iorio, AICP
Community Development Director
City of Marina
_____________________________
Layne Long
City Manager
City of Marina
8h(1) Pg. 2
APPROVING REQUEST BY MARINA COMMUNITY PARTNERS LLC,
TO RELEASE PORTION OF PERFORMANCE BOND FOR PUBLIC
IMPROVEMENTS IN THE DUNES PHASE 1C AREA IN AMOUNT OF
$998,261.08, ACCEPT A SUBSTITUTE PERFORMANCE BOND
SECURITY OF $100,000 FOR REMAINING STREET LIGHTS AND
ELECTRICAL FACILITIES, AND AUTHORIZING CITY MANAGER TO
EXECUTE RELEASE AGREEMENT ON BEHALF OF CITY SUBJECT TO
FINAL REVIEW AND APPROVAL BY THE CITY ATTORNEY
WHEREAS, at the regular meeting of August 5, 2008, the City Council adopted Resolution No.
2008-173, approving Public Improvement Agreement between City of Marina (City) and Marina
Community Partners LLC (MCP), of Marina, California, to construct public improvements in the
Dunes Phase 1C area. MCP, as required by the Public Improvement Agreement, filed with the City
Clerk a performance bond in the amount of $1,098,261.08 to guarantee completion of public
improvements for a portion of Phase 1C as described in the Agreement (“EXHIBIT A”), and;
WHEREAS, California Government Code Section 66499.7 provides for partial release of a
performance bond when 80% or more of required improvements has been constructed. MCP has
provided a list of work completed for the improvements for this agreement in the amount of
$998,261.08 which is 91% of the amount of the performance bond for the portion of Phase 1C
improvements as described in the Agreement, and;
WHEREAS, the estimated cost to complete the work on the remainder improvements is $100,000 for
remaining street lights and electrical facilities. MCP has requested reduction of the performance
bond to that amount, and;
WHEREAS, this reduction in performance security does not affect the security posted for payment of
wages, subcontractors, project materials and equipment. The Labor & Materials Bond will remain in
force in the amount of $1,098,261.08 until such time as any claims of lien are to be recorded and
following acceptance of the work by the City, and;
WHEREAS, MCP has submitted information showing improvements completed to date to be in the
approximate amount of $998,261.08. Remaining work to be completed is shown to amount to
$100,000 and requested the performance bond be reduced to that amount, and;
WHEREAS, the Acting City Engineer has confirmed that a substantial portion of the public
improvements have been completed in conformance with the approved Improvement Plans and are
ready for acceptance by the City upon completion of all the subdivision improvements, and;
WHEREAS, MCP shall provide substitute security in the amount of $100,000 in place of the original
$1,098,261.08 in performance security. MCP has provided an updated Title Report that shows that
the bonds to be released are unencumbered by mechanics lien claims, and;
WHEREAS, this request is submitted for City Council consideration to approve the request to reduce
the performance security from $1,098,261.08 to $100,000 at the request of MCP, and;
8h(1) Pg. 3
WHEREAS, there is no fiscal impact as City inspections have shown approximately $998,261.08 in
improvements has been completed per approved plans and any failure to complete the public
improvements are covered by the substitute security in the amount of $100,000, and;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Marina does
hereby:
1. Approve request by Marina Community Partners LLC, to release portion of performance
bond for public improvements in the Dunes Phase 1C area in the amount of $998,261.08,
and;
2. Accept a substitute performance bond security of $100,000 for remaining street lights
and electrical facilities
3. Authorize the City Manager to execute the release agreement on behalf of the City
subject to final review and approval by the City Attorney.
held on the 16th day of December, 2014, by the following vote:
ABSTAIN, COUNCIL MEMBERS:
ATTEST:
____________________________
_____________________________
8h(1) Pg. 4
EXHIBIT A
8h(1) Pg. 5
8h(1) Pg. 6
8h(1) Pg. 7
8h(1) Pg. 8
8h(1) Pg. 9
8h(1) Pg. 10
8h(1) Pg. 11
8h(1) Pg. 12
8h(1) Pg. 13
8h(1) Pg. 14
8h(1) Pg. 15
8h(1) Pg. 16
8h(1) Pg. 17
8h(1) Pg. 18
8h(1) Pg. 19
8h(1) Pg. 20
8h(1) Pg. 21
8h(1) Pg. 22
8h(1) Pg. 23
Item No. 8j(1)
December 1, 2014
CITY COUNCIL TO CONSIDER RECEIVING BRIEF INFORMATIONAL
REPORTS FOR PRIORITY PROJECTS AND PROGRAMS
REQUEST:
It is requested that the City Council consider receiving brief informational report for priority projects
and programs
BACKGROUND:
It is important for the City to be kept abreast of the latest information regarding top priority projects and
programs. Previously these items were discussed at the end of the City Council meeting agendas, which
often resulted in a delay or cancelling of this reporting due to the length of the previous agenda items.
Alternatively, this report is being provided under consent agenda as a means to ensure the reporting of
this important information, and still allow comments and/or questions from the Council or public should
this report be pulled from the consent agenda.
ANALYSIS:
LDS Church:
o Southern portion of Cypress Knolls parcel (3rd & Hayes)
o 19,999 sq/ ft facility
o Design and Use Permit approved by PC August 28, 2014
o City Council approved Disposition and Development Agreement on November 18, 2014.
o FORA Consistency Administrative Committee December 3, 2014; Board of Directors December
12, 2014
Cypress Knolls (Patton Park Housing):
City staff completed a major clean up of property to take care of safety issues.
Marina Heights Project: This developer is currently seeking a vertical builder for the 299 Phase 1 lots
for which all infrastructure improvements are complete and are ready for vertical construction.
Marina Station Project: Owners of Armstrong Ranch continue to respond to inquiries.
Marina Business Center: City Council approved termination of agreement with University of
California effective November 1, 2014. Current tenant leases will be transferred to University of
California.
Airport:
 Airport Master Plan: The second advisory committee meeting was held May 1, 2014; inventory
of airport physical facilities, air traffic activity, socioeconomic data, and financial information
underway; review of regional and airport area socioeconomic forecasts underway; preparation of
general aviation demand forecasts underway; and preparation of airfield facility requirements
underway. A public information open house was held on August 12, 2014.
8j(1) Page 1

Airport Business Park/MBEST Center Specific Plan Project: Project description is complete. An
administrative draft of the Specific Plan was prepared and is under review by the City and UC
staff. Next steps include coordination with FAA and environmental review of project.
- Approximately 150 acre site (75 acres City of Marina, 19 acres business aviation reserve, 56
acres business park.
- Approximately 75 acres University of California
The Dunes Development:



VA Clinic:
o Veterans Affairs Marina Health Care Clinic $30M project
o Foundation/steel superstructure underway
o MCWD and PG&E working on utility easements
o 3-story; approximately 150,000 sq. ft. facility located on 14.31 acres
o Anticipated project completion date – Fall 2015
The Promontory (AMCAL)
o AMCAL Promontory (Imjin Rd. & 8th St) –Adjacent to CSUMB.
o Demolition of Building 4900 and other buildings
o Construction of three, four-story purpose- buildings that would house 175 one-, two-,
three- and four-bedroom dormitory units, for a total of 583 bedrooms. All buildings
closed in and project is on schedule for completion in summer 2015.
o 4,600 sq. ft community center
o Computer lab/business center, clubhouse and fitness area
o Located on ±8 acre parcel
o Anticipated completion – Summer 2015

University Villages Housing Project: Completed. The project is a 108 affordable unit housing
apartment complex for very low income individuals.
o
University Village Apartments (2nd & 9th St.)
o
$12M project.
o
108 unit apartment complex and community center – waiting list
o
Very low-income households
Cinemark:

o Escrow closed August 22, 2014
o $5.8M project
o Ground breaking – October 20, 2014
o Estimated construction start date – 1st quarter 2015
o Estimated opening Summer 2015
o Building permit not submitted to city
o Anticipated up to 28,000 s.f. retail to be developed adjacent to the theater.
Dunes Residential Housing:
Shea Homes is currently mapping 156 Residential lots. Shea Homes submitted Master Building
Plans for review on April 10, 2014 (Small Loy Alley Model and Duets Model). The Small Lot
Alley (plans 1, 2, and 3) were approved on May 29, 2014. The Duets (plans 1, 2, 3 and 4) were
approved on June 25, 2014. Shea Homes submitted 46 site plans for review on June 30, 2014 and
is pending approval(s). Shea has submitted plans to construct six 6 model homes: 3 plans in 1
product type; 4 plans in 2nd product type.
Visit thedunesonmontereybay.com for more information
Springhill Suites (Marriott) Hotel Project:

Location - 10TH & 2ND Ave.; on a 2.62 acre project site (APN’s 031-251-046 & 031-251-047)
8j(1) Page 2









Design Review Board approved project on October 15, 2014; Planning Commission for
Conditional Use Permit for Type 48 Alcoholic Beverage Control License for hotel bar October
23, 2014.
CDD received a site plan & grading plan
Open anticipated Spring 2016
Project– 4 story hotel, 106 rooms
1,750 sq. ft. meeting room
Hotel 67,328 sq. ft.
Site and architectural design review approved by Planning Commission on (date); Conditional
Use Permit for alcoholic beverage sales approved by Planning Commission
Site and Architectural Design Review to FORA Administrative Committee and Board of
Directors
FORA Consistency for Conditional Use Permit Administrative Committee December 3, 2014;
Information Report to Board of Directors December 12, 2014
Multi-Modal Corridor: On June 3, 2014 TAMC gave presentation; Council supported Option # 2 (8Th
Street/2ND Avenue/Imjin Parkway) as preferred route. On November 20, 2014 a joint study meeting with
the City Council and Planning Commission was held to continue the discussion regarding recreational
trails and greenway corridors that started at last year’s City Council strategic visioning retreat.
Final motion from City Council (8 elements):
1. Support concept substantially presented by Exhibit C of a trail and greenway system and a
process to progress with that concept
2. Inclusive of city parks and residential and the connection to those
3. How this can be done on lands that the city controls
4. That we come back with some design features such as widths of different segments
5. That we propose this concept as Marina’s contribution for a Urban Design Guideline process
6. Fort Ord Recreational Trail Concept that we direct staff to work with Fred Watson to get more
refined maps that include potential trails across Cypress Knolls, EDC parcels, Marina Equestrian
Center and Airport
7. That we direct staff to talk with FAA for trail incorporation to appropriate planning documents
that FAA controls
8. That staff seeks expeditiously as appropriate for addressing solutions to habitat management
Rockrose Gardens (Interim/Lexington Ct.): The project is a two 2-story residential building and a 1story community building. Construction is completed on the 21 unit affordable housing project for
adults with disabilites.
A ribbon cutting ceremony is scheduled for December 5, 2014 at the site.
Downtown Revitalization
Junsay Oaks Apartments - The 47-unit senior apartments was fully entitled in April 2012. CHISPA
has raised over $1.7MM in funds.
Hampton Inn & Suites – 3-story, 90 room facility, on a 2-acre parcel, located at SW corner Beach Rd./
Reservation Road. Design and Conditional Use Permit approved by the Planning Comission. The
project is 90 room/approximately 60,570 sq. ft. Waiting for developer to submit building permit
application.
Marina Beach Townhomes - (3033 – 3039 Marina Dr) – current SF residential structure and duplex
• Replace with 17 new units plus legalization of 2 units
• Environmental review in process
8j(1) Page 3
Capital Improvement Projects

Reservation Road - Del Monte to Seacrest
$252,350.00 CIP
Completed
Roadway Maintenance Project

Reservation Road - Beach to Del Monte
$2,549,600.00 CIP
Completed
Traffic Circles, Roadway and Pedestrian Improvements

Reservation Rd - Seacrest to De Forest
Ready to bid Roadway Maintenance Project (Overlay)
$280,000.00 CIP

Del Monte and Beach Intersection
Design
Intersection Improvement (traffic signal)
$1,950,000.00 CIP
Microenterprise Business Technical Assistance Program

Accepting Applications

Eligible Marina residents, entrepreneurs/existing Marina businesses

Free workshops, training and counseling

Business plans to help you grow

Marketing strategies to help you sell

Financial projections to help sustain success

More information call City of Marina, Marilyn Lidyoff at 884-1211.
KIDD Radio Towers in Locke Paddon Park: Buckley Communications is beginning the process to
apply for a Coastal Development Permit to tear down and rebuilt the existing towers located in Locke
Paddon Park.
CalAm Slant Test Well Project:

Sept. 3, 2014, Reso 2014-103 City Council denied CDP #2012-05 for slant test
well project located at CEMEX’s Lapis Road Property.
 California Coastal Commission approved permission to drill a test well on CEMEX site.
Waste and Recycling Franchise Agreement:
The City Council approved the Green Waste Recovery Contract on August 19, 2014.This contract will
commence in April 2015
CONCLUSION:
____________________________
Layne Long
City Manager
City of Marina
8j(1) Page 4
Agenda Item: 8j(2)
December 16, 2014
Agenda Item: 8j(3)
December 16, 2014
TRANSPORTATION AGENCY FOR MONTEREY COUNTY
www.tamcmonterey.org
HIGHLIGHTS
December 3, 2014
DEPARTING BOARD MEMBERS HONORED FOR YEARS OF SERVICE
The Board of Directors for the Transportation Agency for Monterey County honored two of its
departing board members for their years of exemplary service.
Departing Monterey City Councilmember, Frank Sollecito was recognized for being a tireless
advocate for regional transportation needs during his eight years of service. He’s been a board
member, as well as, a Board Chari, and has been the Vice-Chair of the Rail Policy Committee for
four years. As Vice-Chair he was instrumental in helping to set policy to bring two rail services to
Monterey County to help enhance mobility opportunities and lead to economic vitality for the
region. In that same vein, Councilmember Sollecito has been a dedicated supporter of finding a
solution to address concerns about safety and congestion on Highway 156.
Also recognized for 15 years of service, was Supervisor Lou Calcagno. During his tenure he served
as Board Chairperson in 2002 and 2010. As a Board member, Supervisor Calcagno was
instrumental in building a coalition of support and funding for establishing Monterey-Salinas
Transit service between the South County cities and Salinas, now known as Line 23; served as the
champion for the US 101 Prunedale Improvement Project, persuading local and state decisionmakers to support a more modest, safety-focused project when the cost of the Prunedale Bypass
became prohibitive, always assuring that community interests were respected throughout the design
and construction of the project; represented the Transportation Agency before the California
Transportation Commission and the State Department of Transportation, tirelessly advocating for
funding for major highway safety improvements, including the State Route 1 at Salinas Road
interchange, improvements to the interchange at US 101 and Airport Boulevard, and the US 101
interchange at San Juan Road.
With gratitude for their service, the Board of Directors bid a fond farewell to Frank Sollecito and
Lou Calcagno!
PUBLIC HEARING FOR UNMET TRANSIT NEEDS
The TAMC Board of Directors held a hearing to solicit public input to identify unmet transit needs
in Monterey County. Anyone who knew of a need located where they live, work, go to school or
even shop, was given the opportunity to express that need to the Board.
The hearing was just one of several held annually to identify unmet transit needs in the county.
Anyone who still wishes to express an unmet need can submit a comment in writing. The deadline
to submit a comment is Saturday, January 31, 2015. Comments can be mailed to TAMC, ATTN.
Virginia Murillo, 55-B Plaza Circle, Salinas, CA. 93901. Comments can also be emailed to:
www.tamcmonterey.org/programs/elderly/UnmetTran.html.
For more information, in English or Spanish, about unmet transit needs, contact Virginia Murillo
at (831) 775-4415 or email her at [email protected].
THE COAST DAYLIGHT TRAIN PROJECT
A presentation on the proposed Coast Daylight Train Project was presented to the Board of
Directors by TAMC staff. The project is a proposed passenger rail service that would ultimately
operate one daily round trip between San Francisco and Los Angeles along the coast. After the
presentation, the Board opened a public hearing on the Coast Corridor Draft Program
Environmental Impact Statement/Environmental Impact Report.
The next public hearing on this project will be at 6 p.m. on December 9, 2014, during the King City
Regular City Council Meeting, located in the City Council Chambers, City Hall, 212 South
Vanderhurst Avenue, King City.
Written comments can be mailed to TAMC, ATTN. Christina Watson, 55-B Plaza Circle, Salinas,
93901. Email comments can be sent to:[email protected]. The deadline to submit a comment is
January 7, 2015.
HAPPY HOLIDAYS FROM TAMC
As we near the end of the year 2014, the Transportation Agency for Monterey County wishes you a
Merry Christmas and Happy New Year! May you have a safe and joyous holiday season!
December 9, 2014
Item No. 8j(4)
RECEIVING AND FILING CITY OF MARINA AUDITED ANNUAL
FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2014
REQUEST:
1.
Consider adopting Resolution No. 2014- receiving and filing City of Marina audited
Annual Financial Reports for the fiscal year ended June 30, 2014.
BACKGROUND:
After each fiscal year, independent auditors examine and test the underlying controls, fiscal
records and financial transactions from which the City’s Annual Financial Reports are prepared,
and issue their opinion on the basic financial statements contained in the reports.
The purpose of the audit is to determine whether, in the auditor's opinion, the financial
statements present fairly in all material respects the City’s financial position and results of
operations for the fiscal year; whether the City is in compliance with significant laws, regulations
contracts and grants; and to evaluate the City's system of internal controls.
ANALYSIS:
The auditors, Mann, Urrutia, Nelson CPAs, issued unqualified (“clean”) opinion as of and for the
year ended June 30, 2014, on the City of Marina financial statements dated December 8, 2014.
(EXHIBIT A). The audit report states “In our opinion, the financial statements referred above
present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund
information of the City, as of June 30, 2014, and the respective changes in financial position and
cash flows, where applicable, thereof, and the respective budgetary comparison statements for
the general fund and the other major funds for the year then ended in conformity with accounting
principles generally accepted in the United States of America.”
In accordance with GASB Statement No. 34, the financial reports include: Management's
Discussion and Analysis (MD&A); Basic Financial Statements (including Notes to Financial
Statements); Required Supplementary Information; and Supplementary Information.
The auditors' unqualified opinions on the City's 2013-14 financial statements are indicative of
superior financial records, an accomplishment made possible through exceptional expertise,
dedication and commitment to excellence on the part of Finance Consultant Richard B.
Standridge, CPA and Finance Department staff, Accounting Technicians Monika Collier, Lily
Suarez and Janet Villavisencio.
FISCAL IMPACT:
None
8j(4) Pg. 1
CONCLUSION:
_____________________________
Lauren Lai, CPA
Finance Director
City of Marina
REVIEWED/CONCUR:
_____________________________
Layne P. Long
City Manager
City of Marina
8j(4) Pg. 2
RECEIVING AND FILING THE CITY OF MARINA AUDITED ANNUAL FINANCIAL
REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2014
WHEREAS, after each fiscal year independent auditors examine and test the underlying controls,
fiscal records and financial transactions from which the City’s Annual Financial Reports are
prepared, and issue their opinion on the basic financial statements contained in the reports, and;
WHEREAS, the purpose of the audit is to determine whether, in the auditor's opinion, the
financial statements present fairly in all material respects the City’s financial position and results
of operations for the fiscal year; whether the City is in compliance with significant laws,
regulations contracts and grants; and to evaluate the City's system of internal controls, and;
WHEREAS, the auditors, Mann, Urrutia, Nelson CPAs, issued unqualified (“clean”) opinion as
of and for the year ended June 30, 2014, on the City of Marina's financial statements dated
December 8, 2014, and;
WHEREAS, the audit report states “In our opinion, the financial statements referred above
present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund
information of the City, as of June 30, 2014, and the respective changes in financial position and
cash flows, where applicable, thereof, and the respective budgetary comparison statements for
the general fund and the other major funds for the year then ended in conformity with accounting
principles generally accepted in the United States of America,” and;
WHEREAS, in accordance with GASB Statement No. 34, the financial reports include:
Management's Discussion and Analysis (MD&A); Basic Financial Statements (including Notes
to Financial Statements); Required Supplementary Information; and Supplementary Information,
and;
NOW, THEREFORE IT BE RESOLVED, that the City Council of the City of Marina:
1. Receive and file the City of Marina audited Annual Financial Reports (EXHIBIT A) for
the fiscal year ended June 30, 2014.
ATTEST:
8j(4) Pg. 3
EXHIBIT A
City of Marina, California
Basic Financial Statements
fiscal Year Ended June 30, 2014
8j(4) Pg. 4
CITY OF MARINA
Year Ended
June 30, 2014
8j(4) Pg. 5
TABLE OF CONTENTS
INTRODUCTORY SECTION
Organizational Chart ..........................................................................................................
1
List of Elected and Appointed Officials ...............................................................................
2
FINANCIAL SECTION
Independent Auditors' Report ...........................................................................................
3-4
Management's Discussion and Analysis ............................................................................
5-12
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Position .............................................................................................
13
Statement of Activities ..................................................................................................
14
Fund Financial Statements:
Balance Sheet - Governmental Funds ............................................................................
15
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position ...................................................................................
16
Statement of Revenues, Expenditures and Changes
in Fund Balances - Governmental Funds .....................................................................
17
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities .....................
18
Statement of Net Position - Proprietary Funds ................................................................
19
Statement of Revenues, Expenses and Changes
in Net Position - Proprietary Funds ...............................................................................
20
Statement of Cash Flows - Proprietary Funds .................................................................
21-22
Statement of Fiduciary Net Position ................................................................................
23
Statement of Changes in Fiduciary Net Position .............................................................
24
Statement of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual - General and Other Major Funds .................................
25-26
Notes to Financial Statements ........................................................................................
27-54
OTHER SUPPLEMENTARY INFORMATION
8j(4) Pg. 6
General Fund Combining Balance Sheet ........................................................................
56
General Fund Combining Schedule of Revenues, Expenditures and
Changes in Net Position ...............................................................................................
57
Non-major Governmental Funds Combining Balance Sheet ...........................................
58-59
Non-major Governmental Funds Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances...........................................................................................
60-61
Fiduciary Funds Combining Schedule of Net Position.....................................................
62
Fiduciary Funds Combining Schedule of Changes in Net Position .................................
63
8j(4) Pg. 7
INTRODUCTORY SECTION
8j(4) Pg. 8
8j(4) Pg. 9
Recreation
& Cultural
Services
Department
Police
Department
Fire
Department
Community
Development
Department
City Manager
City Clerk
Human Resources/
Risk Management
Division
Economic Development
Division
Administration
Department
City Attorney
Mayor & City Council
Airport Commission
Successor Agency
Abrams B Non-Profit Corporation
Citizens of Marina
City of Marina – Organization Chart
Finance
Department
CITY OF MARINA, California
June 30, 2014
Elected Officials
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
Bruce C. Delgado
Frank O'Connell
Nancy Amadeo
David W. Brown
Gail Morton
Appointed Officials
City Manager
Acting City Clerk
Finance Director
Police Chief
Fire Chief
Community Development Director
Recreation & Cultural Services Director
Layne Long
Anita Shepherd-Sharp
Lauren Lai, CPA
Edmundo Rodriguez
Harald Kelley
Christine diIorio
Terry Siegrist
Prepared By: Lauren Lai, CPA
2
8j(4) Pg. 10
FINANCIAL SECTION
8j(4) Pg. 11
8j(4) Pg. 12
8j(4) Pg. 13
8j(4) Pg. 14
•
•
•
The fund financial statements focus on individual parts of the government, reporting the City’s operations in more detail
than the government-wide statements.
The governmental funds statements present general government services financed in the short term and balances
available for future spending.
Proprietary fund statements present financial information about Airport and Abrams B Housing activities, which the City
operates and accounts for similar to a commercial business.
Figure B. Major Features of the City's Government-wide and Fund Financial Statements
Type of Statements
Scope
Required financial
statements
Accounting basis
and measurement
focus
Type of
asset/liability
information
Type of
inflow/outflow
information
Government-wide
Entire City
(except fiduciary funds)
including component unit
Governmental Funds
Activities of the City
that are not proprietary or
fiduciary
Fund Statements
Proprietary Fund
Fiduciary Funds
Activities the City
Instances in which the
City acts as fiduciary
operates similar to private
fid someone
i
i else's resources
businesses: Municipal Airport for
lf i
Statement of net position
Balance sheet
Statement of net position
Statement of activities
Statement of revenues,
expenditures & changes
in fund balances
Statement of revenues,
expenses and changes in
fund net position
Statement of cash flows
Accrual accounting and
economic resources focus
Modified accrual
accounting and current
financial resources focus
Only assets expected to
be used up and liabilities
that come due during the
year or soon thereafter;
no capital assets included
All assets and liabilities,
both financial and capital,
and short-term and longterm
Revenues for which cash
is received during or soon
after the end of the year;
expenditures when goods
or services have been
received and payment is
due during the year or
soon thereafter
All revenues and expenses
during year, regardless of
when cash is received or
paid
both short-term and longterm; the Agency's funds do
not currently contain
capital assets, although
they can
All revenues and
expenses during year,
regardless of when cash
is received or paid
both financial and capital,
short-term and long-term
All revenues and
expenses during year,
regardless of when cash
is received or paid
Statement of fiduciary
net position
Statement of changes
in fiduciary net position
The financial statements also include notes that further explain and provide more detail about some of the information in the
financial statements. The financial statements are followed by a section of required supplementary information that further
explains and supports the financial statement information. Figure A demonstrates how required parts of this annual report are
arranged and shows how they relate to one another. Figure B summarizes the major features of the City’s financial statements,
including the portion of the City government they cover and the types of information they contain. The remainder of this
overview section of management’s discussion and analysis explains the structure and contents of each of the statements.
Government-wide Statements report information about the City as a whole using accounting methods similar to those used by
private-sector companies. The statement of net position includes all of the government’s assets and liabilities. All of the current
year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.
The government-wide statements report the City’s net position and how it has changed. Net position, the difference between the
City’s assets and liabilities (with respect to individual funds, this is commonly called ‘Fund Balance’), helps to measure the City’s
financial health or position. Increases or decreases in the City’s net position might, but does not necessarily, indicate whether its
financial health is improving or deteriorating. To properly evaluate the City’s overall health, one must also consider many
nonfinancial factors such as the City Council’s policies, goals and objectives; management’s implementation plans; staffing
levels; naturally-occurring changes in the City’s revenue base and non-discretionary cost structure; and the local, state and
national economies. This means that, on their own, neither net position nor the general fund and other fund balances
necessarily indicate the health of the City. Rather, these amounts reflect the City's commitment to maintain essential
government services and programs at acceptable levels and to meet new needs as they arise. The general fund balance of
more than $8.8 million equals about half of a full year's recurring revenues.
6
8j(4) Pg. 15
The government-wide financial statements of the City include Governmental activities. Most basic City services are included
here, such as legislative, general government, public safety, public works, economic & community development, recreation and
cultural services, capital and infrastructure improvements and long-term debt service. Taxes, licenses and permits, charges for
services, fines and penalties, operating and capital grants, rents and investment earnings, and revenues from other
governments finance these activities. For additional information on the City’s component units, see Note 1 in the City of
Marina's Notes to Financial Statements.
Fund Financial Statements provide detailed information about the City’s most significant (Major) funds, not the City as a
whole. Funds are fiscal accounting entities that track specific revenues and expenditures. Management creates funds to
segregate and manage resources to carry on specific activities or demonstrate that restricted resources are properly utilized.
Some funds are mandated by law (Streets Fund); some by bond covenants (Debt Service); some by special agreement
(Assessment District Maintenance Funds); and some to better manage discrete activities (Impact Fee Fund). The City employs
the following types of funds:
• Governmental - Most services are accounted for in governmental funds, focusing on (1) how cash and other assets that
are readily convertible to cash flow in and out and (2) year-end balances available for spending. Governmental fund
statements provide a detailed short-term view that shows the resources that can be spent in the near future on City
programs. Because this information does not include the long-term focus of government-wide statements, management
provides information to explain relationships among them.
• Proprietary - Airport operations and Abrams B Housing, for which the City measures results of operations similar to a
commercial activity, are reported in the Marina Municipal Airport and Abrams B Housing enterprise funds. Proprietary
funds, like government-wide statements, provide long and short-term financial information.
SUMMARY FINANCIAL ANALYSIS OF THE CITY AS A WHOLE
Total net position of $95,091,826 at June 30, 2014 is detailed in Table 1. For management purposes, this information is
presented differently than in the financial statements: internal balances are not eliminated, and deferred revenues have not been
recharacterized as 'Deferred Inflows,' as such recharacterization would require restatement of FY 2012/13 information which
would render it inconsistent with previous years' presentations. Total net position is, of course, the same in both presentations.
Table 1
Net Position
(in thousands, rounded)
Governmental
Business-type
Activities
Activities
2013
2014
2013
2014
Assets
Current Assets
Prepaid Expenses
Internal Balances
Other Receivables
Fuel Inventory
Total Current Assets
Noncurrent Assets
Long-term Notes & Loans
Land, Bldgs & Equipment
(Accumulated Depreciation)
Total Noncurrent Assets
Total Assets
Total
2014
2013
18,588.4
12.0
15,414.0
2,551.7
36,566.1
17,103.6
6.0
13,802.1
2,738.1
33,649.8
5,147.9
533.0
100.7
86.6
62.6
5,930.8
5,344.5
1,086.9
169.1
28.3
64.6
6,693.4
23,736.3
545.0
15,514.7
2,638.3
62.6
42,496.9
22,448.1
1,092.9
13,971.2
2,766.4
64.6
40,343.2
508.3
60,050.9
-19,166.2
41,393.0
77,959.1
458.8
57,184.7
-17,694.9
39,948.6
73,598.4
85.0
69,750.5
-12,733.0
57,102.5
63,033.3
85.0
69,736.6
-11,686.4
58,135.2
64,828.6
593.3
129,801.4
-31,899.2
98,495.5
140,992.4
543.8
126,921.3
-29,381.3
98,083.8
138,427.0
Liabilities
Current Liabilities
Accounts Payable
Accrued Liabilities
Unearned Revenue
Deposits & Other Liabilities
Internal Balances
Total Current Liabilities
Long-term Liabilities
Notes Payable
Unavailable Revenue
Leases Payable
Bonds
Compensated Absences
Total Long-term Liabilities
Total Liabilities
1,755.9
1,713.8
104.3
313.9
2,048.4
5,936.3
1,407.4
1489.0
91.8
354.6
169.1
3,511.9
72.5
337.2
35.7
27.0
13,466.3
13,938.7
87.0
332.5
4.8
17.0
13,802.1
14,243.4
1,828.4
2,051.0
140.0
340.9
15,514.7
19,875.0
1,494.4
1,821.5
96.6
371.6
13,971.2
17,755.3
2,013.1
164.5
22,575.0
1,273.0
26,025.6
31,961.9
1,938.7
234.4
23,720.0
1,297.5
27,190.6
30,702.5
13,938.7
14,243.4
2,013.1
164.5
22,575.0
1,273.0
26,025.6
45,900.6
1,938.7
234.4
23,720.0
1,297.5
27,190.6
44,945.9
Net Position
45,997.2
42,895.9
49,094.6
50,585.2
95,091.8
93,481.1
Net Investment in Capital Assets
Restricted
Unrestricted
Total Net Position
20,295.1
7,082.6
18,619.5
45,997.2
18,664.8
6,790.5
17,440.6
42,895.9
43,551.3
5,543.3
49,094.6
45,577.7
5,007.5
50,585.2
63,846.4
7,082.6
24,162.8
95,091.8
64,242.5
6,790.5
22,448.1
93,481.1
7
8j(4) Pg. 16
Government Accounting Standards Board (GASB) Statement No. 54 establishes categories of ending fund balance in
Governmental Funds. 'Restricted' fund balances are balances of funds whose resources can only be used for purposes
'...stipulated by constitution, external resource providers, or through enabling legislation'; for example, bond indentures and Gas
Tax Laws. GASB claims the new categories enhance the usefulness of net position measurements by disclosing the extent to
which a government must observe constraints imposed on the use of resources reported in governmental funds and the extent
to which resources are available for discretionary purposes. Since most governmental funds contain resources that are limited in
some fashion to a specific use, a significant portion of year-end fund balance is classified as 'Restricted' even though those
resources are available for exactly the purpose for which they were obtained, rendering the GASB's classification scheme more
obfuscating than illuminating.
Changes in net position. (Table 2)
•
REVENUES Governmental Funds revenues, excluding intra/interfund transfers, for 2013/14 increased by about $4.4
million from the previous year, to $24 million from $19.6 million. The largest increases occurred in: one-time property
sales, $1.1 million; development impact fees, $2 million; property taxes $0.4 million. Transient Occupancy, motor
vehicle (Gas) and sales taxes each increased by about $0.2 million from the previous year, while other on-going
revenues increased across-the-board largely due to an expanding economy. Total City-wide governmental fund
revenues of $24 million included $5.1 million in property taxes and property taxes in-lieu of motor vehicle taxes; $8.0
million charges for services (costs passed along directly to the users who benefitted directly from services such as
rents, fees, licenses, permits, special assessments and cost reimbursements); $1.2 million grants and donations; $0.9
million gas taxes: $4.6 million sales taxes; $2.2 million transient occupancy; $0.7 million franchise taxes; and $1.3
million in miscellaneous revenues. Enterprise operating revenues remained fairly stable from the prior year.
•
COSTS Governmental Fund costs, excluding inter/intra-fund transfers, for 2013-14 were $23.5 million, up $1.9 million
from $21.6 million for FY 2012/13. Public improvements - infrastructure and other long-term projects, accounted for
$1.2 million of this increase, and the remaining $0.7 million was due to normal fluctuations in operating activities. Of
the total $23.5 million, Public Safety (police, fire, animal control) accounted for $10.2 million, or 43.5%; Public Works
$2.7 million or 11.4%; Public Improvements $3.2 million or 13.5%; debt service (excludes accrued bond interest) $2.3
million or 9.5%; Economic & Community Development $1.8 million or 7.6.%; Recreation $1.1 million or 4.5%. General
Government (administration & Planning) expenditures amounted to about $2.2 million or 10.0% of the total. Enterprise
costs remained essentially the same as the previous year.
Table 2
Governmental
Business-type
Activities
Activities
2014
2013
2014
2013
Total
2014
2013
Revenues
Program Revenues:
Charges for Services
Program Income
General Revenues:
Taxes
Other Revenues
Transfers In
6,625.0
2,608.5
4,115.9
1,920.7
4,163.8
-
3,889.3
-
10,788.8
2,608.5
8,005.2
1,920.7
13,403.8
1,352.8
2,974.4
12,370.0
845.0
3,454.9
5.9
4.8
6.9
121.6
13,403.8
1,358.7
2,979.2
12,370.0
851.9
3,576.5
Total Revenues
26,964.5
22,706.5
4,174.5
4,017.8
31,139.0
26,724.3
Expenditures
General Government
Public Safety
Planning
Economic Development
Recreation
Public Works
Public Improvements
Debt Service
Enterprise Operations
Transfers Out
Total Expenditures
2,333.3
10,209.2
734.2
1,066.6
1.080.2
2,686.1
3,153.5
2,256.0
2,433.4
25,952.5
2,609.5
9,690.3
432.3
1,048.7
898.4
2,590.1
2,076.4
2,238.0
3,014.8
24,598.5
4,491.0
545.8
5,036.8
4,179.2
561.7
4,740.9
2,333.3
10,209.2
734.2
1,066.6
1,080.2
2,686.1
3,153.5
2,256.0
4,491.0
2,979.2
30,989.3
2,609.5
9,690.3
432.3
1,048.7
898.4
2,590.1
2,076.4
2,238.0
4,179.2
3,576.5
29,339.4
Revenues Over
(-)under Expenditures
Net Position Beginning
Prior Period Adjustment
Capital Asset Contributions
Net Capital Assets incr(decr)
Debt (increase)decrease
Net Position Ending
1,012.0
42,895.9
1,394.8
694.5
45,997.2
-1,892.0
44,844.5
-686.7
630.1
42,895.9
-862.3
50,585.2
-628.3
49,094.6
-723.1
51,308.3
149.7
93,481.1
-628.3
1,394.8
694.5
95,091.8
-2,615.1
96,152.8
-686.7
630.1
93,481.1
8
50,585.2
8j(4) Pg. 17
GENERAL FUND BUDGET HIGHLIGHTS
The General Fund budget was revised during the year in response to program changes, in accordance with procedures
established by the City Council when it adopted the original budget, as set forth in Table 3. Actual General Fund revenues were
slightly greater than the final budget by $0.6 million, a negligible variance. Although slight functional variances existed, general
fund expenditures varied immaterially from the amended budget.
Table 3
General Fund Budget Changes & Actual-Budget Comparison
Council
Approved
Amendments
Budget
as
Amended
11,484.4
490.3
185.2
50.0
2,994.3
1,854.2
175.7
-2.0
-2.7
871.3
-643.7
11,660.1
488.3
182.5
50.0
3,865.6
1,210.5
11,619.6
445.5
195.7
23.6
4,644.1
1,101.0
-40.5
-42.8
13.2
-26.4
778.5
-109.5
17,058.4
398.6
17,457.0
18,029.5
572.5
2,540.0
10,462.5
953.4
862.1
1,814.5
16,632.5
66.5
148.7
188.0
45.2
266.0
714.4
2,606.5
10,611.2
1,141.4
907.3
2,080.5
17,346.9
2,393.6
10,698.8
1,004.4
912.7
2,022.2
17,031.7
212.9
-87.6
137.0
-5.4
58.3
315.2
425.9
-315.8
110.1
997.8
887.7
595.4
-114.8
480.6
520.0
39.4
1,021.3
-430.6
590.7
1,517.8
927.1
Budget
as
Adopted
Favorable
(-)Unfavorable
Variance
Actual
Revenues
Taxes
Licenses & Permits
Fines & Penalties
Investment Earnings
Chrgs for Svcs/Program Rev
Other Revenues
Total Revenues
Expenditures
General Government
Public Safety
Economic/Community Develop
Recreation
Public Works
Total Expenditures
Revenues Over(Under)
Expenditures
Net Interfund Transfers In(Out)
Revenues Over(Under)
Expenditures, Transfers &
Other Financing Sources
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2014, the City has almost $130 million capital assets including land, equipment, vehicles, buildings,
improvements, infrastructure, rental housing and airport facilities. (See Table 4). The City’s 2014/15 budget provides for various
public improvements. Additional capital expenditures might be approved by the City Council during the 2014/15 fiscal year.
Many costs will be provided by federal, state and other grants. Additional information about the City’s capital assets is presented
in the notes to financial statements.
Table 4
Capital Assets
Governmental
Business-type
Activities
Activity
2013
2014
2013
2014
Land
Buildings and Improvements
Vehicles & Equipment
Infrastructure
Totals at Historical Cost
Accumulated Depreciation
Net Capital Assets
1,751.0
35,105.9
6,241.3
16,952.7
1,751.0
35,105.9
6,238.5
14,089.3
36,900.0
32,666.7
183.8
-
Total
2014
2013
36,900.0
32,652.8
183.8
-
38,651.0
67,772.6
6,425.1
16,952.7
38,651.0
67,758.7
6,422.3
14,089.3
60,050.9
57,184.7
69,750.5
69,736.6
129,801.4
126,921.3
-19,166.2
40,884.7
-17,694.9
39,489.8
-12,733.0
57,017.5
11,686.4
58,050.2
-31,899.2
97,902.2
-29,381.3
97,540.0
Long Term Debt
At year-end the City had slightly more than $24 million in bonds, capital leases and compensated absences (vested benefits
payable to employees) outstanding, as shown in Table 5. No new long-term debt was incurred during 2013/14, and $1,239,349
9
8j(4) Pg. 18
was paid against pre-existing long-term debt. Compensated absences decreased by $24,471 as a result of employees earning
slightly less compensable time off than they used.
Table 5
Long-term Debt
Governmental
Business-type
Activities
Activities
2013
2014
2013
2014
Bonds Payable
Leases Payable
Total Long-Term Debt
22,575.0
164.5
1,273.1
24,012.6
23,720.0
234.4
1,297.5
25,251.9
-
-
Total
2014
2013
22,575.0
1645
1,273.1
24,012.6
23,720.0
234.4
1,297.5
25,251.9
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
On November 2, 2010, Marina voters approved two tax measures, temporarily raising the transient occupancy tax rate from 10%
to 12% and also temporarily increasing the sales tax rate by 1%, for the purpose of preserving funds for general city services
such as police, fire, street repair, parks maintenance and recreation and community programs. On November 4, 2014, by a 73%
to 27% margin, Marina voters approved Measure E, eliminating the termination date of the temporary transient occupancy tax
rate increase, and permanently setting the rate at 12%. Also on November 4, 2014, by a margin of 77% to 23%, voters approved
Measure F which extended the temporary 1% sales tax for an additional ten years, scheduling the additional 1% tax to expire on
March 31, 2026.
Various economic and fiscal indicators were considered, and numerous assumptions necessarily made, when adopting the
2014/15 general fund budget. Amounts available for appropriation for general fund purposes in the 2014/15 budget include an
estimated 2013/14 fund balance carry-forward of $7.9 million, and projected 2014/15 revenues of $17.0 million. Budgeted
expenditures for 2014/15 total $17.4 million. If 2014/15 revenues and expenditures are realized as budgeted, the fund balance
available for City’s General Fund purposes will decline by about $0.4 million, to $8.4 million at June 30, 2015 (actual beginning
fund balance of $8.8 million larger than budget estimate of $7.9 million). If, during the remainder of fiscal 2014/15 it becomes
sufficiently clear that budgeted revenues and/or expenditures should be adjusted, the City Council will adopt additional budget
amendments. While the City and Agency have made great progress with the dissolution of the Marina Redevelopment Agency,
as chronicled below, there remains uncertainties regarding future tax increment financing and Agency obligations.
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of
all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Marina that
previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree
to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter
into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets
can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any
unfinished projects that were subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated
annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of
the prior redevelopment agency have been paid in full and all assets have been liquidated.
The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between
redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such
transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller
is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill.
Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the
City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s
position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is
reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would
resolve this issue unfavorably to the City.
In a letter dated October 9, 2013, the California Department of Finance (DOF) ordered the City of Marina Successor Agency
(Agency) to remit to the County Auditor-Controller $1,286,116, determined by the Department to be unencumbered funds in
accordance with Health and Safety code Section 34170.6(f). The City disputed, and continues to dispute the Department’s
determination of the amount of unencumbered funds and currently has pending a lawsuit against the Department on this matter.
On November 22, 2013, to avoid threatened legal action, the Agency remitted $583,719 to the Monterey County AuditorController in partial payment of the amount demanded by DOF. In letters dated October 30, 2013 and November 22, 2013, the
10
8j(4) Pg. 19
Agency reiterated its non-waiver of constitutional, statutory, legal, and equitable rights and expressly reserved any and all rights,
privileges, and defenses available under law and equity. The lawsuit filed by the Agency against DOF remains pending.
As a result of the litigation, the Court decided the Agency may retain $586,326, which was derived from land sale proceeds and
previously transferred to the General Fund. Additionally, the DOF issued a revised letter dated May 22, 2014 in which DOF
ordered the Agency to remit to the County Auditor-Controller $633,263 (comprised of $583,719 prior payment to County Auditor
Controller, $51,160 disallowable transfer, -$1,616 reconciliation of beginning balances). On November 6, 2014, the Agency
remitted the final payment of $49,544.
In conclusion, the DOF issued a letter dated November 12, 2014 stating the DOF has completed the Finding of Completion for
the City of Marina Successor Agency. Pursuant to Health and Safety Code (HSC) section 34179.7, the DOF has verified that
the Agency has made full payment of the amounts determined under HSC section 34179.6, subdivisions (d) or (e) and HSC
section 34183.5.
Furthermore, within the DOF Finding of Completion, the Agency may now do the following:
•
Place loan agreements between the former redevelopment agency and sponsoring entity on the ROPS, as an
enforceable obligation, provided the oversight board makes a finding that the loan was for legitimate redevelopment
purposes per HSC section 34191.4 (b) (1). Loan repayments will be governed by criteria in HSC section 34191.4 (a)
(2).
•
Utilize proceeds derived from bonds issued prior to January 1, 2011 in a manner consistent with the original bond
covenants per HSC section 34191.4(c).
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is intended to provide citizens, taxpayers, customers, creditors, stakeholders and other interested parties
with an overview of the City’s finances, and to demonstrate the City’s accountability for the money it receives and the resources
it manages. Questions about this report and requests for additional financial information should be addressed to the City of
Marina, Finance Department, 211 Hillcrest Avenue, Marina, California, 93933.
11
8j(4) Pg. 20
BASIC FINANCIAL STATEMENTS
8j(4) Pg. 21
CITY OF MARINA
Statement of Net Position
June 30, 2014
Governmental
ASSETS
Business-type
Activities
Cash and Investments
$
Cash (Restricted)
Prepaid Expenses
Accrued Receivables
$
1,664,734
$
21,166,928
2,569,357
12,000
532,966
544,966
2,551,693
86,611
2,638,304
-
62,599
62,599
13,365,590
Notes & Loans Receivable
Totals
3,483,146
904,623
Inventory
Internal Balances (net)
Activities
17,683,782
(13,365,590)
-
508,340
85,000
593,340
1,750,963
36,900,000
38,650,963
39,133,691
20,117,573
59,251,264
Capital Assets:
Land
Other Capial Assets, Net of Depreciation
Total Capital Assets
TOTAL ASSETS
40,884,654
57,017,573
$
75,910,682
$
$
1,755,881
$
97,902,227
49,567,039
$
125,477,721
72,523
$
1,828,404
LIABILITIES
Accounts Payable
Other Accrued Payables
411,304
337,230
748,534
Accrued Interest Payable
238,581
-
238,581
Other Post Employment Benefits
1,063,880
-
1,063,880
Deposits And Other Liabilities
313,883
26,951
340,834
Unearned Revenue
104,274
35,705
139,979
L
Long-Term
T
Li biliti
Liabilities:
D
Due Witi
Witin O
One Y
Year
TOTAL LIABILITIES
$
1,106,849
1 106 849
-
1
1,106,849
106 849
22,905,730
-
22,905,730
27,900,382
$
472,409
$
28,372,791
418,846
$
-
$
418,846
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue-State of CA SB-90 Claims
$
Unavailable Revenue-CDBG Business & Home Loans
Unavailable Revenue-Interfund Loans
TOTAL DEFERRED INFLOWS
264,627
-
264,627
1,329,631
-
1,329,631
$
2,013,104
$
-
$
2,013,104
$
20,295,121
$
43,551,275
$
63,846,396
NET POSITION
Restricted For:
Debt Service
Public Improvements
903,656
-
903,656
5,229,054
-
5,229,054
Recreation and Grant-Funded Programs
668,703
-
668,703
Public Works
281,134
-
281,134
18,619,528
5,543,355
24,162,883
Unrestricted
TOTAL NET POSITION
$
45,997,196
$
49,094,630
$
95,091,826
The notes to financial statements are an integral part of this statement
-13-
8j(4) Pg. 22
CITY OF MARINA
Statement of Activities
Program Revenues
Charges
Operating Grants
Capital Grants
Expenses/
for Services &
and
and
Expenditures
Program Revenue
Contributions
Contributions
Operating
Functions/Programs
Governmental Activities:
2,916,551
$
2,857,217
Public Safety
10,600,203
$
848,336
466,587
-
Public Works
2,757,413
$
905,055
-
-
General Government
$
$
6,526
$
-
Economic & Community Development
1,791,747
$
3,390,067
-
-
Recreation & Cultural Activities
1,232,087
$
179,949
28,780
-
Public Improvements
Debt Service (Interest & Admin Costs)
Total Governmental Activities
$
765,115
$
60,905
-
658,007
1,030,828
$
1,063,287
-
-
21,093,944
$
9,304,816
$
501,893
$
658,007
Business-type Activities:
Marina Municipal Airport
2,011,068
1,197,768
-
-
Abrams B NonProfit Corporation
2,479,941
2,965,994
-
-
Total Business-type Activities
Totals
4,163,762
4,491,009
$
25,584,953
$
13,468,578
$
501,893
$
General Revenues:
Sales Tax
Property Tax
Transient Occupancy Tax
Franchise Tax
Transfers from Proprietary Funds (net)
Investment Earnings
Other General Revenues
Total General Revenues
Special Item- Sale of Real Property
Net Position - Beginning of Year
Prior Period Adjustment
Net Position - End of Year
-14-
8j(4) Pg. 23
658,007
Net (Expense) Revenue and
Changes in Net Position
Governmental
Business-type
Activities
Activities
$
(52,808)
$
-
Total
$
(52,808)
(9,285,280)
-
(9,285,280)
(1,852,358)
-
(1,852,358)
1,598,320
-
1,598,320
(1,023,358)
-
(1,023,358)
(46,203)
-
(46,203)
32,459
-
32,459
$ (10,629,228)
$
-
$
(10,629,228)
-
(813,300)
(813,300)
-
486,053
486,053
$ (10,629,228)
(327,247)
$
4 588 760
4,588,760
(327,247)
(327,247)
$
-
(10,956,475)
4 588 760
4,588,760
4,595,756
-
4,595,756
2,154,023
-
2,154,023
-
726,548
726,548
541,031
(541,031)
0
23,541
5,941
29,482
32,055
-
32,055
$
12,661,714
$
(535,090)
$
12,126,624
$
2,032,486
$
(862,337)
$
1,170,149
1,068,800
-
1,068,800
42,895,910
50,585,226
93,481,136
$
45,997,196
(628,259)
$
49,094,630
(628,259)
$
95,091,826
-14-
8j(4) Pg. 24
CITY OF MARINA
Balance Sheet
Governmental Funds
June 30, 2014
Major Funds
ASSETS
General
$
Cash (Restricted)
Impact Fee
7,251,381
$
4,308,485
57
-
12,000
-
Accrued Receivables
2,057,338
1,619
Due from Fiduciary Funds
243,713
-
Due from Other Funds (Short-term Cash Flow Loans)
226,648
-
75,000
-
Advances to Other Funds
Notes Receivable
-
TOTAL ASSETS
-
$
9,866,137
$
4,310,104
$
1,165,294
$
-
LIABILITIES
Accounts Payable
Other Accrued Payables
411,305
-
-
-
Deposits and Other Liabilities
313,884
-
Unearned Revenue
102,434
-
Due to Other Funds (Short Term Cash Flow Loans)
Advances From Other funds (Long Term)
50,000
TOTAL LIABILITIES
-
$
2,042,917
$
-
$
418,846
$
-
Unavailable Revenue - State of CA SB-90 Claims
Unavailable Revenue - CDBG Business & Home Loans
-
-
Unavailable Revenue - Interfund Loans
-
-
TOTAL DEFERRED INFLOWS
$
418,846
$
545,361
$
-
FUND BALANCES (DEFICITS)
Nonspendable
$
-
Restricted
180,782
4,310,104
Committed
200,000
-
-
-
Assigned
Unassigned
6,478,231
-
TOTAL FUND BALANCE
$
7,404,374
$
4,310,104
TOTAL LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE
$
9,866,137
$
4,310,104
-15-
8j(4) Pg. 25
Abrams B Bonds
City Capital
Debt Service
$
Projects
-
$
Non-major
Total
Governmental
Governmental
Funds
4,259,034
$
Funds
1,864,883
$
17,683,783
109,955
-
794,610
904,622
-
-
-
12,000
-
40,613
452,125
2,551,695
-
-
-
243,713
-
-
-
226,648
12,136,667
1,329,631
-
13,541,298
-
-
264,627
264,627
$
12,246,622
$
5,629,278
$
3,376,245
$
35,428,386
$
-
$
372,329
$
218,259
$
1,755,882
-
-
-
411,305
-
-
277,355
277,355
-
-
-
313,884
-
-
1,840
104,274
-
75,000
$
-
$
447,329
$
-
$
$
$
-
125,000
497,454
$
2,987,700
-
-
$
418,846
-
-
264,627
264,627
12,136,667
1,329,631
-
13,466,298
12,136,667
$
-
$
$
1,329,631
$
-
$
264,627
$
-
$
14,149,771
545,361
109,955
-
2,481,706
7,082,547
-
3,852,318
134,711
4,187,029
-
-
-
-
-
-
(2,253)
6,475,978
$
109,955
$
3,852,318
$
2,614,164
$
18,290,915
$
12,246,622
$
5,629,278
$
3,376,245
$
35,428,386
-15-
8j(4) Pg. 26
CITY OF MARINA
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2014
Fund Balance - Total Governmental Funds
$
18,290,915
Amounts reported for governmental activities in the
statement of net assets are different because:
Long-term Accounts Receivable are treated as Deferred Inflows
in Governmental Funds, but as revenue in the Statement of Net Position
12,136,666
Capital assets used in governmental activities
are not financial resources and therefore are
not reported in the funds:
General Capital Assets
$
Less: Accumulated Depreciation
60,050,866
(19,166,212)
40,884,654
Long-term liabilities, accrued unmatured bond interest & OPEB Unfunded
Annual Required Contribution are not due and payable in the current period,
and therefore are not reported in the funds:
(1,273,047)
(1 273 047)
Bonds Payable
(22,575,000)
Accrued Bond Interest Payable
(238,581)
OPEB Unfunded Annual Required Contribution
(1,063,880)
Capital Leases
(164,531)
Net Position of Governmental Activities
(25,315,039)
$
45,997,196
-16-
8j(4) Pg. 27
CITY OF MARINA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
Major Funds
General
Impact Fee
REVENUES
Taxes
$
12,065,087
$
-
Fines and Penalties
195,743
Licenses & Permits
444,470
-
Investment Earnings
23,597
7,257
4,295,004
2,635,206
32,054
-
Charges for Services, Grants & Other Program Revenues
Total Revenues
-
$
17,055,955
$
2,642,463
$
2,333,193
$
-
EXPENDITURES
General Government
Public Safety
10,209,287
Public Works
1,983,541
-
1,324,932
-
Recreation & Cultural Services
-
891,308
-
-
2,006
Debt Service - Principal Retirement
485,000
-
Debt Service - Interest and Other Debt Service Costs
131,754
-
Public Improvements
T t l Expenditures
Total
E
dit
$
17
17,359,015
359 015
$
2
2,006
006
(303,060)
$
2,640,457
655,679
$
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
$
OTHER FINANCING SOURCES (USES)
Interfund Transfers In
$
Interfund Transfers (Out)
(108,270)
Total Other Financing Sources(Uses)
$
Special Item - Sale of Real Property
547,409
102,310
(1,988,219)
$
(1,885,909)
1,068,800
-
EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER(UNDER)
EXPENDITURES, OTHER USES & SPECIAL ITEM
$
FUND BALANCES - BEGINNING OF YEAR
1,313,149
$
6,091,225
FUND BALANCES - END OF YEAR
$
7,404,374
754,548
3,555,556
$
4,310,104
-17-
8j(4) Pg. 28
Major Funds
Abrams B Bonds
City Capital
Debt Service
$
Projects
-
$
-
-
-
$
Non-major
Governmental
Total
Governmental
Funds
Funds
1,338,759
$
13,403,846
-
195,743
-
-
-
444,470
31
-
7,402
38,287
822,823
388,545
588,973
8,730,551
-
58,460
17,818
108,332
$
822,854
$
447,005
$
1,952,952
$
22,921,229
$
-
$
-
$
-
$
2,333,193
-
-
-
10,209,287
-
-
702,555
2,686,096
-
-
475,858
1,800,790
-
-
188,964
1,080,272
-
2,930,191
221,299
3,153,496
335,000
69,878
325,000
1,214,878
484,351
5,698
419,279
1,041,082
$
819 351
819,351
$
3
3,005,767
005 767
$
$
3,503
$
(2,558,762)
$
-
$
2,078,219
$
$
$
-
(158,126)
$
-
$
3,503
$
109,955
(638,669)
$
92,352
$
(132,914)
$
(40,562)
$
3,852,318
(420,565)
$
2,614,164
-17-
(597,865)
2,928,560
541,031
1,068,800
$
3,034,729
$
23
23,519,094
519 094
(2,387,529)
-
4,490,987
$
$
(380,003)
-
106,452
$
1,920,093
2
2,332,955
332 955
1,011,966
17,278,949
$
18,290,915
8j(4) Pg. 29
CITY OF MARINA
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Net Change in Fund Balances - Total Governmental Funds
$
1,011,966
(revenues and other financing sources in excess of expenditures and other financing uses)
Amounts reported for governmental activities in the
Statement of Activities is Different Because:
Capital outlay is an expenditure in the government funds
financial statements, but the costs of those assets is
allocated over their estimated useful lives as depreciation
expense in the Statement of Activities.
Capital Asset Acquisitions Net of Dispositions
$
Depreciation Expense
2,952,249
(1,557,402)
1,394,847
Principal portion of Notes Receivable payments are recorded as revenues
in governmental funds, but the payment reduces an asset in the
Statement of Net Position: Note Principal Payments Received
(335,831)
Repayment of long-term debt principal is an expenditure
in the government funds financial statement, but the
repayment reduces long-term liabilities in the statement
of net position. Compensated absences reduce net position but are not
included in governmental funds liabilities. Accrued unpaid bond interest &
OPEB Unfunded Annual Required Contribution reduces net position but are not
recorded as governmental funds expenditures
Repayment of General Long-term Debt Principal, Net of New Debt
OPEB Unfunded Annual Required Contribution
$
1,214,878
(219,300)
Decrease in Compensated Absences Liability
24,471
Decrease in Accrued, Unpaid Bond Interest
10,255
Change in Net Position of Governmental Activities
1,030,304
$
3,101,286
-18-
8j(4) Pg. 30
CITY OF MARINA
Statement of Net Position
Proprietary Funds
June 30, 2014
Airport
Abrams B
Operating
Housing
Fund
Fund
Total
ASSETS
$
908,645
$
2,574,501
$
3,483,146
Cash (Restricted)
-
1,664,734
1,664,734
Prepaid Expenses
-
532,966
532,966
Accrued Receivables
79,772
6,839
86,611
Due from Other Funds (Cash Flow Loans)
50,708
-
50,708
Inventory
62,599
-
62,599
135,000
-
135,000
Capital Assets, net
Total Assets
45,595,428
11,422,145
57,017,573
$
46,832,152
$
16,201,185
$
63,033,337
$
71,428
$
1,095
$
72,523
LIABILITIES
Accounts Payable
Accrued Payables
6,538
330,692
337,230
Unearned Revenue
35,705
-
35,705
Deposits & Other Liabilities
26,951
-
26,951
Advances from Other Funds
Total Liabilities
-
13,466,298
13,466,298
$
140,622
$
13,798,085
$
13,938,707
$
45,595,428
$
(2,044,153)
$
43,551,275
NET POSITION
Unrestricted
Total Net Position
1,096,102
$
46,691,530
4,447,253
$
2,403,100
5,543,355
$
49,094,630
-19-
8j(4) Pg. 31
CITY OF MARINA
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
Airport
Abrams B
Operating
Housing
Fund
Fund
Total
OPERATING REVENUES
Rental Income
$
Aviation Fuel Sales
793,972
$
359,836
Other Income
$
-
30,000
Total Operating Revenues
2,919,524
3,713,496
359,836
46,470
76,470
$
1,183,808
$
2,965,994
$
4,149,802
$
271,134
$
-
$
271,134
OPERATING EXPENSES
Salaries and Benefits
Services and Supplies
234,432
562,200
796,632
-
483,297
483,297
Cost of Sales - Aviation Fuel
304,367
-
304,367
Repairs and Maintenance
367,101
1,048,179
1,415,280
56,106
72,862
128,968
-
44,739
44,739
Interest Expense
Utilities
Taxes
Depreciation and Amortization
777,927
Total Operating Expenses
$
OPERATING INCOME (LOSS)
$
2,011,067
(827,259)
268,665
1,046,592
$
2,479,942
$
$
486,052
$
$
3,498
$
4,491,009
(341,207)
NONOPERATING REVENUES (EXPENSES)
Investment Earnings
$
Contributed Capital
Interfund Transfers Out
2,443
13,960
-
13,960
4,800
-
4,800
(128,638)
Total Nonoperating Revenues (Expenses)
NET INCOME (LOSS)
(417,193)
(545,831)
$
(107,435)
$
(413,695)
$
(521,130)
$
(934,694)
$
72,357
$
(862,337)
47,626,224
Prior-Period Adjustment
2,959,002
-
NET POSITION - BEGINNING OF YEAR RESTATED
$
46,691,530
50,585,226
(628,259)
47,626,224
5,941
(628,259)
2,330,743
$
2,403,100
49,956,967
$
49,094,630
-20-
8j(4) Pg. 32
CITY OF MARINA
Statement of Cash Flows
Proprietary Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Airport
Abrams B
Operating
Housing
Fund
Receipts from Customers
$
1,169,519
Payments to Suppliers
(974,594)
Payments to Employees
(269,275)
Net Cash Provided (Used) by Operating Activities
Fund
$
Total
2,965,763
$
(2,285,529)
4,135,282
(3,260,123)
-
(269,275)
$
(74,350)
$
680,234
$
605,884
$
(50,708)
$
-
$
(50,708)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Loans to Other Funds
Transfers (To) From Other Funds (net)
(123,838)
Net Cash Provided (Used) by Noncapital Financing Activities
(417,193)
(541,031)
$
(174,546)
$
(417,193)
$
(591,739)
$
119,135
$
(335,831)
$
(216,696)
$
119,135
$
(335,831)
$
(216,696)
$
2,443
$
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Principal Payments on Advances (to)from other Funds
Net Cash Provided (Used) by Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment Earnings
Net Increase (Decrease) in Cash
$
Cash - Beginning of Year
(127,318)
$
1,035,963
Cash - End of Year
$
908,645
3,498
$
(69,292)
$
4,308,527
$
4,239,235
5,941
(196,610)
5,344,490
$
5,147,880
(continued)
-21-
8j(4) Pg. 33
CITY OF MARINA
Statement of Cash Flows (Continued)
Proprietary Funds
Airport
Abrams B
Operating
Housing
Fund
Fund
Total
Reconciliation of Operating Income (Loss) to Net Cash Provided
(Used) by Operating Activities:
Operating Income (Loss)
$ (827,259)
$
486,052
$ (341,207)
Adjustments to Reconcile Operating Income to Net Cash Provided (Used) by
Operating Activities:
Depreciation Expense
777,927
268,665
1,046,592
Change in Assets and Liabilities:
Prepaid Expenses
-
Accounts Receivable
(55,227)
Inventory
2,016
Accounts & Accrued Payables
(12,745)
Unearned Revenue & Deposits
40,938
Net Cash Provided (Used) by Operating Activities
$
(74,350)
(74,358)
(74,358)
(3,084)
(58,311)
-
2,016
106
(12,639)
2,853
$
680,234
43,791
$
605,884
(concluded)
-22-
8j(4) Pg. 34
CITY OF MARINA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2014
Successor
Agency to
Redevelopment
Agency
ASSETS
$
Prepaid Expenses
977,379
12,113
Accrued Receivables
309
510,000
900,000
Total Assets
$
2,399,801
$
3,563
LIABILITIES
Accounts Payable
Accrued Payables
192
Due to City of Marina Funds
328,713
Bonds Payable:
Due within One Year
20,000
490,000
Total Liabilities
$
842,468
$
529,210
$
1,028,123
NET POSITION (Held in Trust for Successor Agency to the
Marina Redevelopment Agency)
-23-
8j(4) Pg. 35
CITY OF MARINA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Successor
Agency to
Redevelopment
Agency
ADDITIONS
Property Taxes (Including DOF True-Up Adjustment)
$
Investment Earnings
1,272,603
2,172
29,139
39,501
Total Additions
$
1,343,415
$
1,654,370
DEDUCTIONS
ROPS Payments:
Programs Costs
41,649
Employee Costs
102,287
117,005
Total Deductions
$
$
1,915,311
(571,896)
1,600,019
$
1,028,123
-24-
8j(4) Pg. 36
CITY OF MARINA
Budget and Actual - General and Other Major Funds
General Fund
Variance
REVENUES
Taxes
Licenses and Permits
Fines and Forfeitures
Investment Earnings
Charges for Services & Other Program Revenue
Other General Revenue
Total Revenues
EXPENDITURES
General Government
Public Safety
Public Works
Public Improvements
Debt Service - Principal
Debt Service - Interest & Other
Total Expenditures
EXCESS OF REVENUES
$
Original
Budget
11,484,400
490,300
185,200
50,150
3,873,972
662,675
$
Final
Budget
11,660,100
488,300
182,500
50,150
4,745,440
18,975
$
Actual
12,065,087
445,545
195,743
23,597
4,293,929
32,054
Positive
(Negative)
$
404,987
(42,755)
13,243
(26,553)
(451,511)
13,079
$
16,746,697
$
17,145,465
$
17,055,955
$
(89,510)
$
2,479,629
9,973,000
1,775,808
1,731,423
913,985
485,000
131,754
17,490,599
$
$
2,333,193
10,209,287
1,983,541
1,324,932
891,308
485,000
131,754
17,359,015
$
$
2,546,130
10,121,592
2,041,808
1,992,899
885,934
485,000
131,754
18,205,117
$
212,937
(87,695)
58,267
667,967
(5,374)
846,102
$
$
$
(743,902)
$
(1,059,652)
$
(303,060)
$
756,592
$
682,168
(83,266)
598,902
1,191,500
$
662,168
(154,216)
507,952
1,191,500
$
655,679
(108,270)
547,409
1,068,800
$
(6,489)
45,946
39,457
(122,700)
Inter(intra)fund Transfers In
Inter(intra)fund Transfers Out
EXCESS OF REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES, OTHER USES
AND SPECIAL ITEM
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
$
$
1,046,500
5,459,009
6,505,509
$
$
$
639,800
5,459,009
6,098,809
$
$
$
1,313,149
6,091,225
7,404,374
$
$
$
-25-
8j(4) Pg. 37
673,349
632,216
1,305,565
Abrams B Bonds Debt Service Fund
Variance
Original
Budget
Final
Budget
Positive
(Negative)
Actual
$
826,165
-
$
826,165
-
$
31
822,823
-
$
31
(3,342)
-
$
826,165
$
826,165
$
822,854
$
(3,311)
$
335,000
496,165
831,165
$
335,000
496,165
831,165
$
$
$
335,000
484,351
819,351
$
11,814
11,814
$
3,503
$
8,503
$
-
$
-
$
$
$
$
$
$
(5,000)
-
(5,000)
98,648
93,648
$
$
$
$
$
$
(5,000)
-
(5,000)
98,648
93,648
$
$
$
3,503
106,452
109,955
$
$
8,503
7,804
16,307
$
(continued)
-25-
8j(4) Pg. 38
CITY OF MARINA
Budget and Actual - General and Other Major Funds
City Capital Projects Fund
Variance
REVENUES
Taxes
Fines and Penalties
Investment Earnings
Charges for Services & Program Revenues
Other General Revenue
Total Revenues
EXPENDITURES
General Government
Public Safety
Public Works
Public Improvements
Debt Service - Principal
Debt Service - Interest & Other
Total Expenditures
EXCESS OF REVENUES
Original
Budget
Final
Budget
Positive
(Negative)
Actual
$
222,673
558,610
$
399,983
762,710
$
388,545
58,460
$
(11,438)
(704,250)
$
781,283
$
1,162,693
$
447,005
$
(715,688)
$
-
$
$
$
$
2,930,191
69,878
5,698
3,005,767
$
2,607,648
58
14,366
2,622,072
$
2,578,367
69,936
20,064
2,668,367
$
5,537,839
69,936
20,064
5,627,839
$
(1,887,084)
$
(4,465,146)
$
(2,558,762)
$
1,906,384
$
1,531,219
(9,464)
1,521,755
-
$
2,078,219
(158,126)
1,920,093
-
$
2,078,219
(158,126)
1,920,093
-
$
-
(365,329)
(365,329)
$
(2,545,053)
(2,545,053)
$
(638,669)
4,490,987
3,852,318
$
Interfund Transfers Out
EXCESS OF REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES, OTHER USES
AND SPECIAL ITEM
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
$
$
$
$
$
$
$
$
$
1,906,384
4,490,987
6,397,371
-26-
8j(4) Pg. 39
Impact Fee Fund
Variance
Original
Budget
Final
Budget
Positive
(Negative)
Actual
$
4,627,916
-
$
4,627,916
-
$
7,257
2,635,206
-
$
$
4,627,916
$
4,627,916
$
2,642,463
$ (1,985,453)
$
$
$
-
$
$
-
$
2,006
2,006
$
4,627,916
$
4,627,916
$
2,640,457
$
(1,441,219)
(1,441,219)
-
$
102,310
(1,914,219)
(1,811,909)
-
$
$
$
$
3,186,697
6,136,492
9,323,189
$
$
$
2,816,007
6,136,492
8,952,499
102,310
(1,988,219)
$ (1,885,909)
-
$
$
754,548
3,555,556
4,310,104
$
$
7,257
(1,992,710)
-
(2,006)
(2,006)
$ (1,987,459)
$
$
(74,000)
(74,000)
-
$ (2,061,459)
(2,580,936)
$ (4,642,395)
(concluded
-26-
8j(4) Pg. 40
CITY OF MARINA
Notes to Financial Statements
1 - The Reporting Entity
The City of Marina was incorporated in 1975 under the laws of the State of California,
and operates under a Council - Manager form of government. The City provides a
full range of municipal services including police, fire, public works, recreation &
culture, community development and general administration.
These financial statements present the financial status of the City and its component
units. The component units discussed in the following paragraph are included in the
City’s reporting entity because the City is financially accountable for their operations
and because the City and both component units share the same governing body.
The Abrams B Non-Profit Corporation was formed to account for operation of a 192unit multi-family housing development, known as Abrams B Apartments, under a 50year ground lease from the City of Marina, which owns the property. The ground
lease is reported as a capital asset (a leasehold interest) on the balance sheet of the
Abrams B Housing Fund. Although a legally separate entity, the Corporation is
reported on a blended basis as part of the primary government.
On December 29, 2011, the California Supreme Court upheld Assembly Bill IX 26
(“the Bill”) that provides for the dissolution of all redevelopment agencies in the State
of California. This action impacted the reporting entity of the City of Marina that
previously had reported a redevelopment agency within the reporting entity of the
City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or
another unit of local government will agree to serve as the “successor agency” to
hold the assets until they are distributed to other units of state and local government.
After enactment of the law, which occurred on June 28, 2011, redevelopment
agencies in the State of California cannot enter into new projects, obligations or
commitments. Subject to the control of a newly established oversight board,
remaining assets can only be used to pay enforceable obligations in existence at the
date of dissolution (including the completion of any unfinished projects that were
subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the
amount that is necessary to pay the estimated annual installment payments on
enforceable obligations of the former redevelopment agency until all enforceable
obligations of the prior redevelopment agency have been paid in full and all assets
have been liquidated.
The Bill directs the State Controller of the State of California to review the propriety of
any transfers of assets between redevelopment agencies and other public bodies
27
8j(4) Pg. 41
CITY OF MARINA
that occurred after January 1, 2011. If the public body that received such transfers is
not contractually committed to a third party for the expenditure or encumbrance of
those assets, the State Controller is required to order the available assets to be
transferred to the public body designated as the successor agency by the Bill.
Management believes, in consultation with legal counsel, that the obligations of the
former redevelopment agency due to the City are valid enforceable obligations
payable by the successor agency trust under the requirements of the Bill. The City’s
position on this issue is not a position of settled law and there is considerable legal
uncertainty regarding this issue. It is reasonably possible that a legal determination
may be made at a later date by an appropriate judicial authority that would resolve
this issue unfavorably to the City.
In a letter dated October 9, 2013, the California Department of Finance (DOF)
ordered the City of Marina Successor Agency (Agency) to remit to the County
Auditor-Controller $1,286,116, determined by the Department to be unencumbered
funds in accordance with Health and Safety code Section 34170.6(f). The City
disputed, and continues to dispute the Department’s determination of the amount of
unencumbered funds and currently has pending a lawsuit against the Department on
this matter.
On November 22, 2013, to avoid threatened legal action, the Agency remitted
$583,719 to the Monterey County Auditor-Controller in partial payment of the amount
demanded by DOF. In letters dated October 30, 2013 and November 22, 2013, the
Agency reiterated its non-waiver of constitutional, statutory, legal, and equitable
rights and expressly reserved any and all rights, privileges, and defenses available
under law and equity. The lawsuit filed by the Agency against DOF remains pending.
As a result of the litigation, the court decided the Agency may retain $586,326, which
was derived from land sale proceeds and previously transferred to the general fund.
Additionally, the DOF issued a revised letter dated May 22, 2014, in which DOF
ordered the Agency to remit to the County Auditor-Controller $633,263 (composed of
$583,719 prior payment to the County Auditor-Controller, $51,160 disallowable
transfer less $1,616 reconciliation of beginning balances. On November 6, 2014, the
Agency remitted the final payment of $49,544.
In conclusion, the DOF issued a letter dated November 12, 2014, stating the DOF
has completed the Finding of Completion for the Marina Successor Agency. Pursuant
to Health and Safety Code (HSC) section 34179.7, the DOF has verified that the
Agency has made full payment of the amounts determined under HSC section
34179.6, subdivisions (d) or (e) and HSC section 34183.5
Furthermore, within the DOF Finding of Completion, the Agency may now do the
following:
28
8j(4) Pg. 42
CITY OF MARINA
•
•
Place loan agreements between the former redevelopment agency and
sponsoring entity on the ROPS, as an enforceable obligation, provided the
oversight board makes a finding that the loan was for legitimate redevelopment
purposes per HSC section 34191.4(b)(1). Loan repayments will be governed by
criteria in HSC section 34191.4(a)(2).
Utilize proceeds derived from bonds issued prior to January 1, 2011, in a manner
consistent with the original bond covenants per HSC section 34191.4(c).
Implementation of Government Accounting Standards Board Statements
Effective July 1, 2013, the City implemented the following accounting and financial
reporting standards:
Government Accounting Standards Board Statement No. 65
In March 2012, GASB issued Statement No. 65, Items Previously Reported as
Assets and Liabilities. This Statement erroneously alleges that accounting and
financial reporting are improved by imposing standards that reclassify, as deferred
outflows of resources or deferred inflows of resources, certain items that were
previously reported as assets and liabilities and recognizes, as outflows of resources
or inflows of resources, certain items that were previously reported as assets and
liabilities. This Statement also provides other financial reporting guidance related to
the impact on the financial statement elements of deferred outflows of resources and
deferred inflows of resources, such as changes in the determination of the major fund
calculations and limiting the use of the term deferred in financial statement
presentations. Application of this statement is effective for, and has been
implemented in, the City's financial statements for the fiscal year ending June 30,
2014. Implementation of this statement resulted in a prior-period adjustment that
unnecessarily and misleadingly reduced net assets in the Abrams-B Housing
Proprietary Fund in the amount of $628,259. For additional information, see Note 2 Significant Accounting Policies, Fund Balance.
In March 2012, GASB issued Statement No. 66, Technical Corrections—2012—an
amendment of GASB Statements No. 10 and No. 62. The GASB asserts that this
Statement improves accounting and financial reporting for a governmental financial
reporting entity by resolving conflicting guidance that resulted from the issuance of
two pronouncements, Statements No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions, and No. 62, Codification of Accounting and
Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and
AICPA Pronouncements. Application of this statement is effective for, and has been
implemented in, the City's financial statements for the year ending June 30, 2014.
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In June 2012, GASB issued Statement No. 67, Financial Reporting for Pension
Plans—an amendment of GASB Statement No. 25. The GASB asserts that this
Statement improves financial reporting by state and local governmental pension
plans. This Statement replaces the requirements of Statements No. 25, Financial
Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined
Contribution Plans, and No. 50, Pension Disclosures, as they relate to pension plans
that are administered through trusts or equivalent arrangements (hereafter jointly
referred to as trusts) that meet certain criteria. The City's pension plan is
administered under contract with the California Public Employees Retirement System
(CalPERS) pursuant to Sate law. CalPERS has provided suggested financial
disclosures to contracting agencies. The City has included the disclosures suggested
by CalPERS, and believes it is in compliance with the requirements of this statement
for the City's fiscal year ending June 30, 2014.
Future Government Accounting Standards Board Statements
These statements are not effective until July 1, 2015 or later. The City has not
determined the effects on the financial statements.
In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting
for Pensions—an amendment of GASB Statement No. 27. The GASB asserts that
this Statement will improve accounting and financial reporting by state and local
governments for pensions by requiring recognition of the entire net pension liability
and a more comprehensive measure of pension expense. This Statement establishes
standards for measuring and recognizing liabilities, deferred outflows of resources,
and deferred inflows of resources, and expense/expenditures. For defined benefit
pensions, this Statement identifies the methods and assumptions that should be
used to project benefit payments, discount projected benefit payments to their
actuarial present value, and attribute that present value to periods of employee
service. The City has not determined what impact, if any, this pronouncement will
have on the financial statements. Application of this statement is effective for the
City's fiscal year ending June 30, 2015.
In January 2013, GASB issued Statement No. 69, Government Combinations and
Disposals of Government Operations. This Statement establishes accounting and
financial reporting standards related to government combinations and disposals of
government operations. The City has not determined what impact, if any, this
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pronouncement will have on the financial statements. Application of this statement is
effective for the City's fiscal year ending June 30, 2015.
In April 2013, GASB issued Statement No. 70, Accounting and Financial Reporting
for Nonexchange Financial Guarantees. This Statement requires a government that
extends a nonexchange financial guarantee to recognize a liability when qualitative
factors and historical data, if any, indicate that it is more likely than not that the
government will be required to make a payment on the guarantee. The City has not
determined what impact, if any, this pronouncement will have on the financial
statements. Application of this statement is effective for the City's fiscal year ending
June 30, 2015.
2 - Significant Accounting Policies
The accounting policies of the City conform to accounting principles generally
accepted in the United States of America as applied to governmental agencies. The
Governmental Accounting Standards Board (GASB) is the recognized standardsetting body for establishing governmental accounting and financial reporting
principles. Following is a summary of significant accounting policies.
Basis of Presentation
Government-wide and Fund Financial Statements
Government-wide Statements include the Statement of Net Position and the
Statement of Activities, which report information on all activities of the primary
government and its component unit. The effect of interfund activity has been
eliminated from these statements. The Statement of Net Position presents all assets,
including capital assets, as well as short and long-term liabilities. Governmental
activities, which normally are supported by taxes and intergovernmental revenues,
are reported separately from business-type activities, which rely on fees and charges
for services.
The statement of activities ostensibly demonstrates the extent to which direct
expenses of a given function are offset by program revenues. Direct expenses are
those identifiable with a specific function. Program revenues include: 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services,
or privileges provided by a given function; and 2) grants and contributions restricted
to meeting operational or capital requirements of a particular function as well as
interest earned on those revenues. Revenues that are not classified as program
revenues, including taxes, are general revenue.
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Fund Financial Statements provide information separately for governmental funds
and proprietary funds. Major individual governmental funds and proprietary funds are
reported separately with non-major governmental funds combined in a single column.
Fund Accounting
The City’s accounts are organized by funds, each of which is considered a separate
accounting entity with a self-balancing set of accounts that comprise its assets,
liabilities, fund equity, revenues, and expenditures or expenses, as appropriate.
Governmental Funds
The General Fund is the City's operating fund and accounts for all financial resources
except those accounted for in a separate fund due to third-party or management
restrictions.
Special Revenue Funds account for the proceeds of revenue sources that are
restricted to specific purposes other than major capital projects and debt service.
Capital Projects Funds account for revenues and expenditures for the acquisition or
construction of major capital facilities.
Debt Service Funds account for the accumulation of resources for, and the payment
of, general long-term debt principal, interest, and related costs.
Proprietary Funds
Enterprise Funds account for activities that are financed and operated similar to
private business, where the intent is that the costs, including depreciation, of
providing goods or services to the general public on a continuing basis be recovered
primarily through user charges. The City accounts for the operation of its airport, and
the Abrams B Apartments, on this basis.
Major Funds: Generally Accepted Accounting Principles require that fund financial
statements disclose each major fund separately, and that all non-major funds be
aggregated. The General Fund is always a major fund. Other major funds are those
whose assets, liabilities, revenues and/or expenditures exceed ten percent (10%) of
the City's governmental funds total for that category, and also exceed five percent
(5%) of city-wide totals including enterprise funds for that category. The following four
funds are classified as major funds: General Fund which accounts for all on-going
general governmental activities not reported in other funds; Abrams-B Bonds Debt
Service Fund, which accounts for resources restricted to retirement of Abrams-B
Bonds principal and interest, and payment of those debt obligations; the Impact Fee
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CITY OF MARINA
Fund, which accounts for fees collected pursuant to state law for mitigation of the
effects of development on City facilities, services and infrastructure; and the City
Capital Projects Fund, which accounts for resources committed to acquisition and/or
construction of general capital assets and infrastructure.
Measurement Focus and Basis of Accounting
Measurement focus refers to what transactions are reported in a fund. Basis of
accounting refers to when revenues and expenditures, and the related assets and
liabilities, are recognized in the accounts and reported in the financial statements.
Basis of accounting relates to the timing of measurement made, regardless of the
measurement focus applied. Government-wide financial statements are reported
using the economic resources measurement focus and the accrual basis of
accounting, as are the proprietary fund financial statements. Revenues are recorded
when earned and expenditures are recorded when a liability is incurred regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue
as soon as all eligibility requirements have been met.
Governmental Fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized when they become both measurable and available.
Revenues are considered to be available if they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period. For this
purpose, the City considers revenues to be available if they are collected within 60
days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred if payable within the aforementioned 60-day availability
period, except for debt service payments, and expenditures related to claims,
judgments and compensated absences, which are recorded when payment is due.
Major revenue sources susceptible to accrual include substantially all property taxes,
taxpayer-assessed taxes, such as sales and use, business license, transient
occupancy, franchise fees and gas taxes, interest, special assessments levied, state
and federal grants and charges for current services. All other revenue items are
considered to be measurable and available only when cash is received by the
government. Expenditures are recorded when the related fund liability is incurred.
Use of Estimates
Financial statement preparation in conformity with accounting principles generally
accepted in the United States of America occasionally requires the use of 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 expenditures during the reporting period.
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Actual results could differ from those estimates.
Cash and Deposits
See Note 4.
Property Taxes
Article XIII of the California Constitution (Proposition 13) limits ad valorem taxes on
real property to one percent of value plus taxes necessary to pay indebtedness
approved by voters prior to July 1, 1978. The Article also established the 1975/76
assessed valuation as the base and limits annual increases to the cost of living, not
to exceed two percent, for each year thereafter. Property may also be reassessed to
full market value after a sale, transfer of ownership, or completion of new
construction. The State is prohibited under the Article from imposing new ad
valorem, sales, or transaction taxes on real property. Local government may impose
special taxes, except on real property, with the approval of two-thirds of the qualified
electors.
All property taxes are collected and allocated by the County of Monterey to the
various taxing entities. Property taxes are determined annually as of January 1 and
attach as an enforceable lien on real property as of July 1. Taxes are due November
1 and February 1, and are delinquent if not paid by December 10 and April 10,
respectively.
Receivables and Payables
Property, sales and use taxes related to the current fiscal year are accrued as
revenue and accounts receivable if considered available (received within 60 days of
year end.) Federal and State grants are considered receivable and accrued as
revenue when reimbursable costs are incurred.
Long-term loans receivable are recorded to avoid understatement, but offset by
deferred revenue because the resources are not available for appropriation.
Balances representing lending/borrowing transactions between funds at the end of
the fiscal year are reported as due to/due from (short-term) or advances from/to other
funds (long-term). Determination as to whether interfund receivables/payables are
short or long term, particularly when formal loan documents do not exist, depends on
the facts and circumstances of each transaction and to some extent is necessarily a
matter of subjective judgment on the part of Financial Management. Irrespective of
the short-or-long-term classification, the total receivable/payable will be correctly
stated.
Allowance for Doubtful Accounts
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CITY OF MARINA
The City recognizes bad debts, on the rare occasion when a bad debt arises, using
the direct write-off method due to the uncertainty of recording an allowance in
advance, and the public impact of presenting such information on an estimated basis.
While accounting principles generally accepted in the United States of America
require that the allowance method be used to reflect bad debts, the effect of using
the direct write-off method does not differ materially from the results that would be
obtained if the allowance method were followed, and Management considers the
direct write-off method to be superior.
Inventories and Prepaid Items
The aviation fuel inventory held by the Airport proprietary fund is stated at cost using
the First-In-First-Out (FIFO) valuation method. Materials and supplies used by
governmental funds are recorded as expenditures at the time they are purchased or
obtained. Occasionally, payments to vendors relate to costs applicable to future
accounting periods and are recorded as prepaid items; such items are generally not
material in amount overall.
Capital Assets
Capital assets are reported in the applicable governmental or business-type activities
column in the government-wide financial statements. Capital assets are stated at
historical cost, or at estimated replacement cost where original cost was not
available. Contributed capital assets are valued at estimated fair market value on the
date contributed, if ascertainable. The City possesses certain capital assets that were
acquired by capital lease, and are recorded as capital assets at cost. The City
capitalizes assets whose acquisition or construction cost equals or exceeds:
Equipment
Buildings and Improvements
Infrastructure
$ 5,000
50,000
100,000
Depreciation is recorded using the straight-line method over the estimated useful
lives of the assets, which range from four to forty years.
Compensated absences represent the vested portion of accumulated vacation, sick
leave and compensatory time off. The liability for accumulated leave includes all
salary-related payments that are directly and incrementally connected with leave
payments to employees. In governmental fund types, the cost of vacation and sick
leave benefits is recognized when payments are made to employees.
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CITY OF MARINA
Upon termination, employees are paid 100% of accrued vacation leave and
compensatory time off. Personal Time Off (PTO) and sick leave is paid in accordance
with the applicable employee Memorandum of Understanding (MOU) or individual
employment contract. A long-term liability of $1,273,047 for accrued benefits was
recorded at June 30, 2014.
Unearned Revenue
Unearned revenues arise when cash is received before the City earns it; for instance,
when rents, leases, business licenses or other fees are paid in advance, typically
during June and are not earned until July. Total unearned revenue in the
Governmental Funds Balance Sheet of $104,274 at June 30, 2014, comprises
advance business license payments received during Fiscal 2013/14 not due until FY
2014/15 $62,674 and rents $41,600 received during June not due until July.
Enterprise funds total unearned revenues of $35,705 consist of airport building,
hangar and other rents received in advance of their due dates in July.
Long -Term Obligations
In the government-wide financial statements and proprietary fund financial statement,
long-term debt and other long-term obligations are reported as liabilities in the
applicable statement of net position. Except for interfund obligations, long-term debt
is not reported in governmental funds.
Encumbrances
Encumbrance accounting is used during the year for budgetary control.
Encumbrances lapse at year end.
Fund Balance
The difference between the assets plus deferred outflows of resources, and liabilities
plus deferred inflows of resources of a governmental fund is referred to as fund
balance or, in the government-wide statements, as net position. (See Note 10
disclosures). Occasionally, a fund's liabilities plus deferred inflows of resources
exceed its assets plus deferred outflows of resources, resulting in a deficit fund
balance. Following are the deficit fund balances at June 30, 2014, and short
explanations:
Marina Woods Landscape Maintenance District: - $1,395 - Landscape and
maintenance costs occur mostly during spring and summer, while assessment
revenues are not received until December with the property tax distributions, at which
time the deficit should be eliminated.
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CITY OF MARINA
Cypress Cove II Landscape Maintenance District: - $857 - Landscape and
maintenance costs occur mostly during spring and summer, while assessment
revenues are not received until December with the property tax distributions, at which
time the deficit should be eliminated.
Prior-Period Adjustment: In 2007, the Abrams-B Nonprofit Corporation borrowed
$14,360,000 to acquire a long-term leasehold interest in the Abrams-B housing
development from the City of Marina. In conjunction with the loan, the corporation
incurred prepaid loan costs of $802,033 which were properly recorded at the time as
a deferred charge (asset), to be amortized over the 30-year life of the loan as
required by Generally Accepted Accounting Principles prior to GASB Statement No.
65. At June 30, 2013, the unamortized loan cost balance was $628,259. GASB
Statement No. 65 changed the accounting treatment for prepaid debt issuance costs,
requiring that: prospectively, such costs be expensed when incurred; and
retroactively, that all previously deferred debt issuance costs be written off against
fund equity during fiscal 2013/14. This requirement by the GASB resulted in an
apparent, but not actual, $628,259 reduction in net position of Abrams B Nonprofit
Corporation, making comparisons to previous years' less meaningful.
Internal Activity Eliminations
Generally Accepted Accounting Principles require that with certain exceptions, the
effects of interfund activity be eliminated from the government-wide financial
statements by means of consolidation. At June 30, 2014 the City had recorded
numerous interfund receivables/payables/transfers between various funds. (See Note
9) For financial reporting purposes, the City discloses all interfund activity in the fund
financial statements, but as required by GASB Statement No. 34, eliminates activity
between individual Governmental Funds and between individual Enterprise Funds,
then eliminates interfund activity between governmental and proprietary funds by
disclosing the offsetting amounts as 'Internal Balances' with a resulting zero balance
in the statement of net position and statement of activities. While complying with
GASB rules, this inconsistency renders the Statement of Net Position and
Government Funds Balance Sheet hard to compare, requiring a complex reconciling
schedule to enable readers to understand the financial statements.
3 - Stewardship, Compliance and Accountability
Budgetary Information
The City follows these procedures annually in establishing the budgetary data
reflected in the financial statements:
1. The City Manager submits to the City Council a proposed budget for the fiscal
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8j(4) Pg. 51
CITY OF MARINA
2.
3.
4.
5.
year commencing the ensuing July 1, which includes proposed expenditures and
the means of financing them, including anticipated revenues and fund balance
carry-forwards.
The City Council reviews the proposed budget at special scheduled sessions
which are open to the public. The Council also conducts a public hearing on the
proposed budget to obtain comments from interested persons.
Prior to July 1, the budget is adopted by Council resolution.
From the effective date of the budget, which is adopted and controlled at the
department level, the amounts stated therein as proposed expenditures become
appropriations to the various City departments. The City Council may amend the
budget by resolution during the fiscal year. The City Manager may authorize
transfers of revenues and appropriations within and between departments of the
General Fund, and within and between projects/departments of any fund.
The Finance Director records budget adjustments and realignments as necessary
for carryover balances, encumbrances and continuing contracts to eliminate
unfavorable budget variances.
4 - Cash and Deposits
Cash and investments reported in the financial statements at June 30, 2014 consist
of:
Deposits With Financial Institutions
$ 4,150,600
Local Agency Investment Fund (LAIF)
15,616,157
Cash Held By Bond Trustees & Fiscal Agents *
3,963,628
Imprest Cash
5,900
Total Cash and Deposits
$ 23,736,285
* See disclosures below under 'Cash with Bond Trustees and Fiscal Agents'
The City follows the practice of pooling cash of all funds except cash held by rental
agents and cash required to be held by outside agents under the provisions of bond
indentures or grants. Interest earned on pooled cash is allocated to the various funds
based on average balances. Earnings on cash held by fiscal agents are credited to
the related fund.
Cash Defined
Cash includes money held by the City and on deposit with financial institutions that
can be withdrawn without notice. Cash equivalents are short-term, highly liquid
investments that are readily convertible to known amounts of cash and so near their
maturity that they present insignificant risk of changes in value due to fluctuations in
interest rates.
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CITY OF MARINA
Cash Deposits
The California Government Code requires financial institutions to secure deposits
made by state or local governmental agencies by pledging securities in an undivided
collateral pool held by a depository regulated under state law, unless waived by the
government agency. (GC §§53652 & 53653) The market value of the pledged
securities in the collateral pool must equal at least 110% of the total amount
deposited by the public agencies. California law also allows financial institutions to
secure City deposits by pledging first trust deed mortgage notes having a value of
150% of the secured public deposits. All deposits held in the City's name by financial
institutions comply with state law. In addition, as operating manager of the Abrams B
Non-Profit Corporation's rental activity, Alliance Properties Management Company
holds approximately $2,188,881 cash on behalf of the Corporation in the City's name.
Cash with Bond Trustees and Fiscal Agents
At June 30, 2014, Cash with Bond Trustees comprised the following:
Wells Fargo Government Money Market Fund
$
Blackrock Institutional Money Market Funds
Total Cash with Bond Trustees
$
Cash with Rental Agent: Bank of America Demand Deposit
Total cash with Bond Trustees and Fiscal Agent
$
57
1,774,690
1,774,747
2,188,881
3,963,628
Cash held by trustees on behalf of bond holders are governed by provisions of the
indentures rather than the general provisions of the California Government Code or
the City’s investment policy. Generally, the indentures allow a wide range of
investments including investments in money market mutual funds rated AAAm,
AAAm-G, or Aaa by Standard & Poors and/or Moody's. During fiscal year 2013-14,
all investments held by trustees complied with indenture requirements. Cash held by
fiscal agent in demand deposit accounts complied in all respects with security and
collateralization requirements of the California Government Code:
Investments Authorized by the City's Investment Policy
The City's Investment Policy and Management Plan restricts individual deposits to
financial institutions maintaining offices within the City of Marina. Further, unless
collateralized as provided in Government Code Sections 53651 & 53652, the
maximum amount of Certificates of Deposit that can be placed with any single
institution is $100,000. At June 30, 2014, all City deposits were placed with
Rabobank in Marina, and the City had no certificates of deposit.
With respect to investments, the policy adopts the State of California's provisions
relating to local agencies set forth in Government Code: §16429.1 authorizing a local
agency to deposit cash with the State of California Local Agency Investment Fund
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8j(4) Pg. 53
CITY OF MARINA
(LAIF); §53635 authorizing a local agency to pool deposits with other local agencies
and establishing permitted investments for the pool; and §53601 permitting local
governments to invest independently and establishing permitted investments.
While the City's investment policy identifies safety of principal as the foremost
objective of the investment program and states that the 'City shall seek to preserve
principal by mitigating...credit risk and market risk... .' it contains no specific
provisions intended to limit exposure to interest rate risk or concentration of credit risk
aside from those contained in the aforementioned Government Code sections.
Interest rate risk is the risk that changes in market interest rates will adversely affect
the value of an investment. Generally, the longer the maturity of an investment the
greater the sensitivity of its value to changes in market interest rates. Credit risk is
the risk that an issuer of an investment will not fulfill its obligation to the holder of the
investment. Concentration of credit risk recognizes that additional risk attaches to a
disproportionately large proportion of an investment portfolio placed with a single
institution. The City's investment policy limits investments with a single institution
(exclusive of government agencies such as LAIF) to no more than 25% of the
portfolio. During 2013-14, no investments were placed with any one issuer that
exceeded 25% of the total portfolio.
The City's investment policy assigns authority and responsibility to manage the City's
investment portfolio to the Finance Director. Pursuant to such authority, during fiscal
year 2013-14 the only investments were placed with the California LAIF, which is
regulated by the California Government Code under the oversight of the Treasurer of
the State of California. City deposits in this pool are reported in the accompanying
financial statements at cost which approximates fair value. Deposits may be
withdrawn without interest or principal penalties on short notice and are more similar
to cash than an investment. City deposits with the LAIF at June 30, 2014, totaled
$15,616,157, and Successor Agency deposits with the LAIF totaled $560,413.
5 - Notes Receivable
Notes receivable of $188,127 in the CDBG Fund include small business loans made
for the implementation of a business assistance program and first-time homebuyer
assistance loans that bear annual interest rates ranging from 5% to 6%, with various
repayment plans.
CDBG Housing Fund notes receivable of $76,500 consist of loans made for lowincome housing purchase and rehabilitation. Loans are collateralized by deeds of
trust on the purchased or improved properties, bear annual interest rates ranging
from 3% to 7%, and require no repayment until transfer of property title, or the loan
reaches maturity.
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6 - Capital Assets
Governmental (General) Capital Assets changed during FY 13-14 as follows:
on-depreciable)
s & Improvements
ent
cture
Depreciable Assets
Balance
July 1, 2013
$ 1,750,963
35,105,940
6,238,493
14,089,293
55,433,726
ccumulated Depreciation
s & Improvements
(11,198,843)
ent
(4,784,048)
cture
(1,711,991)
ccumulated Depr'n (17,694,882)
reciable Assets
Assets, Net
Additions
$
-
Deletions
$
-
88,880
2,863,369
2,952,249
(86,072)
(86,072)
(796,574)
(379,447)
(381,381)
(1,557,402)
37,738,844
1,394,847
$ 39,489,807
$ 1,394,847
86,072
86,072
$
Balance
June 30, 2014
$ 1,750,963
35,105,940
6,241,301
16,952,662
58,299,903
(11,995,417)
(5,077,423)
(2,093,372)
(19,166,212)
-
39,133,691
-
$ 40,884,654
Depreciation expense was charged to governmental functions as follows:
General Government
$ 452,423
Public safety
358,878
Public Works
61,414
5,985
201,707
Public Improvements
476,995
Total depreciation expense
$ 1,557,402
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Business Activity-Type Assets changed as follows:
Land (non-depreciable)
Buildings
Improvements
Equipment
Cost of Depreciable Assets
Balance
July 1, 2013
$ 36,900,000
Additions
$
8,579,544
24,073,213
183,816
32,836,573
-
Deletions
$
-
13,960
13,960
-
Balance
June 30, 2014
$ 36,900,000
8,579,544
24,087,173
183,816
32,850,533
Less: Accumulated Depreciation
Buildings
(3,658,877)
Improvements
(7,856,624)
Equipment
(170,867)
Total Accumulated Depr'n
(11,686,368)
(241,301)
(800,675)
(4,616)
(1,046,592)
-
(3,900,178)
(8,657,299)
(175,483)
(12,732,960)
Net Depreciable Assets
21,150,205
(1,032,632)
-
20,117,573
$ 58,050,205
$(1,032,632)
-
$ 57,017,573
Capital Assets, Net
-
$
7 - Long-Term Debt
Following are the long-term debt issues outstanding at June 30, 2014, including a
description of each issue:
General Obligation Bonds
1998 General Obligation Refunding Bonds – Authorized and issued June 1998, due
in annual installments of $15,000 to $65,000 plus accrued interest through August
2019, for the purpose of refunding the 1989 General Obligation Bonds Series A.
Interest is payable semi-annually in February and August at 4.4% to 5.6% per
annum.
Balance Due
$335,000
2005 General Obligation Bonds – Authorized and issued May 2005, due in annual
installments of $5,000 to $695,000 plus accrued interest through August 2035, for the
purpose of constructing a new library. Interest is payable semi-annually in February
and August at 3% to 5.25% per annum.
Balance Due
$7,925,000
2007 General Obligation Bonds – Authorized and issued April 2007 as part of a
larger offering facilitated by the California Statewide Communities Development
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CITY OF MARINA
Authority, due in annual installments of $15,000 to $625,000 plus accrued interest
through June 2019, for the purpose of refinancing an unfunded CalPERS pension
liability. Interest is payable semi-annually in June and December at 5.21% to 5.3%
per annum.
Balance Due
$ 1,995,000
Limited Obligation Improvement Bonds
1999 Refunded Marina Greens Assessment District Bonds - Authorized and issued
August 2000, due in annual installments of $35,000 to $80,000 plus accrued interest
through September 2015, for the purpose of refunding the 1994 Marina Greens
Business Park Improvement Assessment District Limited Obligation Improvement
Bonds used for the purpose of financing the construction of improvements and the
acquisition of certain rights of way. Interest is payable semi-annually in March and
September at 4.3% to 6% per annum. (see subsequent events, Note 17)
Balance Due
$ 155,000
Limited Obligation Improvement Bonds
2001 Refunded Marina Landing Assessment District Bonds - Authorized and issued
July 2001, due in annual installments of $108,000 to $190,000. This issue was totally
liquidated during fiscal 2013/14, and has no remaining interest or principal due at
June 30, 2014 (see Subsequent Events).
Balance Due
$
000
Revenue Bonds
2006 Multifamily Housing Revenue Bonds - Authorized and issued November 2006,
due in annual installments of $110,000 to $160,000 through May 2016, then a lumpsum redemption of $10,275,000 on November 15, 2036, principal and interest, for the
purpose of financing the acquisition of the Abrams B Apartments. Interest is payable
semi-annually in May and November at 3.45% to 3.95% per annum.
Balance Due
$ 12,165,000
General Long-Term Debt changed as follows:
Revenue Bonds
Limited Obligation Bonds
Sub-Total Bonded Debt
Capital Lease Obligation
Total
Balance
July 1, 2013
$10,805,000
12,500,000
415,000
$23,720,000
234,410
1,297,518
$25,251,928
Increases
-
Decreases
$ 550,000
335,000
260,000
$1,145,000
69,878
24,471
$1,239,349
Balance
June 30, 2014
$10,255,000
12,165,000
155,000
$22,575,000
164,532
1,273,047
$24,012,579
Due Within
1 Year
$
615,000
345,000
75,000
$ 1,035,000
71,849
$ 1,106,849
43
8j(4) Pg. 57
CITY OF MARINA
Annual principal and interest requirements on general long-term bonded debt
outstanding at June 30, 2014, are as follows:
Year
Ending
June 30,
2015
2016
2017
2018
2019
2020-2024
2025-2029
2030-2034
2035-2037
General
Obligation
Bonds
Revenue
Bonds
Limited
Obligation
Bonds
Total
Interest
Principal
1,116,155
1,158,735
1,207,579
701,655
740,754
3,027,444
3,303,435
3,556,956
1,427,056
789,708
787,715
458,395
458,395
458,395
2,291,975
2,291,975
2,291,975
12,880,987
82,050
82,400
-
1,987,913
2,028,850
1,665,974
1,160,050
1,199,149
5,319,419
5,595,410
5,848,931
14,308,043
952,913
903,850
890,974
850,050
834,149
3,969,419
3,615,410
3,033,931
1,488,043
1,035,000
1,125,000
775,000
310,000
365,000
1,350,000
1,980,000
2,815,000
12,820,000
Subtotal
Less Interest
$16,239,769
(5,984,769)
$22,709,520
(10,544,520)
$164,450
(9,450)
$39,113,739
(16,538,739)
$16,538,739
-16,538,739
$22,575,000
-
Principal
$10,255,000
$12,165,000
$155,000
$22,575,000
$
-
$22,575,000
8 - Capital Leases
A schedule of future minimum lease payments pursuant to a capital lease for NGEN
emergency communications equipment, together with the present value of the
minimum lease payments at June 30, 2014 follows:
Year Ending
June 30
Long-Term Debt
2015
$ 75,576
2016
75,577
2017
18,894
$ 170,047
Less Interest
-5,515
Principal Portion of Future Lease Payments
$ 164,532
44
8j(4) Pg. 58
CITY OF MARINA
9 - Interfund Transactions
Interfund Loans
Interfund loans are temporary resource transfers between funds for cash-flow and
other purposes that will be repaid within a reasonable time pursuant to loan
agreements, promissory notes and City Council resolutions. Interfund loans at June
30, 2014 were as follows:
Due To
Due From
Amount
General Fund (1)
$
75,000
General Fund (1)
Fiduciary Funds
243,713
General Fund (1)
Special revenue Funds
226,648
Abrams B Bond Fund (2)
Abrams B Housing Fund
12,136,667
City Capital Projects Fund (3) Abrams B Housing Fund
_
1,329,631
Sub-total Governmental Funds
$ 14,011,659
Airport Fund (4)
General Fund
$
50,000
Airport Fund (4)
Other Governmental Funds
50,708
Fiduciary funds
85,000
Sub-total Airport
$
185,708
Total
$ 14,197,367
(1) Loans due to the General Fund include a $75,000 non-amortizing loan to the City
Capital Projects Fund to finance rehabilitation of a percolation pond in anticipation of
sale, which will be repaid as resources permit; two formal, interest-bearing amortizing
loans to the Successor Agency to the Marina Redevelopment Agency Fiduciary Fund
totaling $145,655, which the City expects to be repaid as part of the Agency's
enforceable debt obligations; a $48,514 non-interest bearing, non-amortizing loan to
the Successor Agency to the Redevelopment Agency Fiduciary Fund which the City
expects to be repaid as part of the Agency's enforceable debt obligations; and a
second short-term $49,544 loan to the the Successor Agency to the Redevelopment
Agency Fiduciary Fund which the City expects to be repaid as part of the Agency's
enforceable debt obligations. Loans to non-major special revenue funds include
short-term cash flow loans to the Marina Woods Landscape Maintenance District and
the CDBG Projects Fund of $805 and $225,843, respectively. These loans will be
repaid as cash flows permit.
(2) The Abrams B Housing Fund borrowed $14,360,000 from the City on a formal
interest-bearing, amortizing promissory note for the purpose of acquiring the Abrams
B Housing Project from the Fort Ord reuse Authority. Payments are made in
essentially equal annual amounts, and the note will be fully amortized during fiscal
year 2035-36.
(3) The Abrams B Housing Fund owes the City $1,329,631 for the purchase of a
leasehold interest in the Abrams B Housing Project
(4) The Airport Operating Fund made a $50,708 short-term cash flow loan to the
Airport Capital Projects fund which will be repaid during fiscal year 2014-15 as grant
revenues are received, and $50,000 to the City's Strategic Development Fund (for
reporting purposes, merged with the general fund), which will be repaid as resources
45
8j(4) Pg. 59
CITY OF MARINA
permit. The Airport Fund also loaned $85,000 to the Successor Agency to the Marina
Redevelopment Agency which the City expects to be repaid as part of the Agency's
enforceable debt obligations.
Interfund Transfers
Inter/intrafund transfers are permanent transfers of resources between/within funds
with no repayment requirement. The following transfers occurred during FY 2013-14
as disclosed on the Statement of Revenues, Expenditures and Changes in Fund
Balances, Interfund Transfers In; All Governmental Funds:
Transfer To
Transfer From
Amount
General Fund
$
155,848
Airport Fund
82,638
Abrams B Housing Fund
417,193
Subtotal General Fund
$
655,679
General Fund
Subtotal City Capital Projects Fund
$
90,000
1,988,219
2,078,219
$
102,310
Other Governmental Funds City Capital Projects Fund
Airport Fund
Subtotal Other Governmental Funds
$
$
46,352
46,000
92,352
$
2,928,560
Impact fee Fund
Total
$
Interfund transfers that occur on a regular basis include routine annual transfers from
the Abrams B NonProfit Corporation to the General Fund for rent; transfers from the
Impact Fee Fund to the Capital Projects Funds to partially finance capital projects;
and transfers from other funds to the General Fund for cost allocation.
10 - Classifications of Fund Balances
As previously stated, fund financial statements designate the difference between
assets plus deferred outflows of resources, and liabilities plus deferred inflows of
resources, of a governmental fund as 'fund balance.' In March 2009, the Government
Accounting Standards Board (GASB) issued Statement No. 54 establishing new fund
balance classifications for governmental funds. The new classifications comprise a
fund balance hierarchy based primarily on the extent to which a government must
observe constraints imposed upon the use of resources reported in governmental
funds. The new fund balance reporting standards include nonspendable, restricted,
committed, assigned, and unassigned classifications based on the relative strength of
46
8j(4) Pg. 60
CITY OF MARINA
the constraints that control how specific resources can be spent, and the fund(s) in
which those resources are reported.
'Nonspendable' fund balance are amounts that cannot be spent because they
are not in spendable form, such as inventories or prepaid expenses, or because they
are legally or contractually required to be maintained intact. This also includes the
long-term portion of notes and loans receivable that are not offset by deferred
revenue, but does not include imprest cash.
'Restricted' fund balance are amounts constrained by external parties that can
be spent only for purposes '...stipulated by constitution, external resource providers,
or through enabling legislation' such as gas tax cash in the Streets Fund, and cash in
Debt Service Funds to repay bonded indebtedness as required by related bond
indentures.
'Committed' fund balance are amounts that are neither unspendable nor
restricted, that are constrained for specific purposes by formal action of the City's
highest level of decision-making authority, such as: Council-adopted budget or other
resolutions; motions; or minute orders recorded in the official minutes for the meeting
at which such limitation is imposed. 'Committed' resources require equal or higher
action by the Council to remove or change the constraints placed on those resources.
'Assigned' fund balance are amounts intended for specific purposes but are
not nonspendable and do not meet the criteria of 'Restricted' or 'Committed.' In all
funds except the general fund, 'assigned' fund balance represents the positive
amount that is not nonspendable, restricted or committed. 'Assigned' resources can
be imposed by the City Council itself, or by the City Manager and/or the Finance
Director if authorized by Council action. For example, the Council may delegate
authority for making certain budget modifications or setting aside resources for
anticipated projects and programs.
'Unassigned' fund balance are general fund resources not contained in other
classifications or, in non-general funds a deficit balance resulting from overspending
for purposes for which amounts were restricted, committed or assigned.
When an expenditure occurs for which both restricted and unrestricted
resources are available, the City generally considers the expenditure to have been
made from restricted resources. Likewise, when an expenditure occurs for which
either committed, assigned or unassigned resources are available, the City generally
considers the expenditure to have been made from committed resources.
GASB asserts that the new classifications enhance the usefulness of fund
balance measurements by disclosing the extent to which a government must observe
constraints imposed on the use of resources reported in governmental funds, and the
extent to which resources are available for discretionary purposes. Pursuant to GASB
54 the $7404,374 General Fund fund balance, and the $18,290,915 total
governmental fund balances at June 30, 2014 were classified as follows:
47
8j(4) Pg. 61
CITY OF MARINA
General
Fund
Nonspendable
$ 545,361
Restricted
180,782
Committed
200,000
Assigned
Unassigned
6,478,231
Total
$7,404,374
Detailed explanations for each category follows:
All
Funds
$ 545,361
7,082,547
4,187,029
6,475,978
$18,290,915
Non-
Fund
General Fund
Total
$ 6,478,231
"
545,361
"
200,000
"
Total General Fund
Spendable
$
-
Restricted
$
Committed
-
$
Unassigned
-
545,361
-
-
-
200,000
180,782
-
180,782
-
$ 7,404,374
$545,361
180,782
$ 200,000
Special Revenue Funds
$
Nature of Constraint
$6,478,231 Unconstrained General Fund balance
- Non-current portion of loans & advances to other
funds
- Cash set aside for OPEB Costs by Council action
- Bond trust & CSA 74 cash limited by indenture/law
$6,478,231
- Restricted to specific uses by law or grants
5,054,918
-
5,054,918
-
134,711
-
-
134,711
- Committed to public access by Council action
Landscape Districts
24,298
-
24,298
-
- Restricted by law to specific geographic areas
Landscape Districts
PEG
(2,253) Negative balance reportable as unassigned
(2,253)
-
-
-
Parks Capital Projects
2,197
-
2,197
-
- Restricted to parks use by Quimby Fee law
Airport Capital Project
44,034
-
44,034
-
- Restricted to airport improvements by grant
- Committed to specific projects by Council action
City Capital Projects
3,852,318
-
-
3,852,318
Library Construction
872,719
-
872,719
-
- Restricted to library use by bond indenture
Debt Service Funds
903,599
-
903,599
-
- Restricted to debt service by bond indentures
$ 18,290,915
$545,361
$ 7,082,547
$ 4,187,029
total fund balances
$6,475,978
11 - Defined Benefit Pension Plan
Plan Description
The City of Marina contributes to the California Public Employees Retirement System
(CalPERS), a cost-sharing multiple employer public employee defined benefit
pension plan. PERS provides retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. CalPERS acts
as a common investment and administrative agent for participating public entities
within the State of California. Benefit provisions and all other requirements are
established by state statute and city ordinance. Copies of CalPERS annual financial
report may be obtained from their Executive Office, 400 P Street, Sacramento,
California 95814.
Funding Status and Progress
Prior to passage of the California Public Employees Pension Reform Act (PEPRA),
Miscellaneous participants and public safety participants were required to contribute
48
8j(4) Pg. 62
CITY OF MARINA
7% and 9%, respectively, of their annual covered salary, while the City made the
contributions required of city employees on their behalf and for their account. The
City's required contributions were determined actuarially as a percentage of covered
payroll for Miscellaneous and Safety members respectively, as follows for prior years:
2007/08 12.173% & 33.038%; 2008/09 9.044% & 19.27%; for 2009/10 8.902% &
18.813%; for 2010/11 8.6% & 18.0%; for 2011/12 10.059% & 24.112%; for 2012/13
10.238% & 24.706%.
The PEPRA implemented new benefit formulas and final compensation periods as
well as new employee and employer contribution requirements for 'new employees'
hired on or after January 1, 2013. For the 2013/14 fiscal year, contribution rates for
for classic (existing) Miscellaneous and Safety members were 10.781% & 26.149%
respectively; for new Miscellaneous and Safety members contribution rates were
6.25% and 11.5% respectively, for both the employee and the employer. For
2014/15, contribution rates for classic (existing) Miscellaneous and Safety members
are projected to be 11.522% & 27.849% respectively while 6.25% & 11.5%
employee/employer contribution rates will remain in effect until June 30, 2015. For
the 2015/16 fiscal year, Miscellaneous and Safety contribution rates for classic
(existing) members are projected to be 12.4% and 29.9% for classic (existing
members). Employee/employer contribution rates for new members will be revised in
late 2014 for the 7/1/15 - 6/30/16 fiscal year.
Please refer to the Pension Reform section of the CalPERS website for more
information on pension reform, including information regarding when an employee
will be considered a new member under PEPRA.
Annual Pension Cost
The City’s annual pension cost of $2,028,136 for PERS was equal to the City’s
required and actual contributions. The required contribution was determined as part
of the June 30, 2011, actuarial valuation using the entry age normal actuarial cost
method. The actuarial assumptions included: (a) a 7.5% investment rate of return
(compounded annually, net of administrative expenses), (b) projected annual salary
growth that varies by category, entry age and duration of service, from 3.30% to
14.20% depending on age, service and type of employment, (c) an inflation rate of
2.75%, and (d) a payroll growth rate of 3.00%.
Three-Year Trend Information for PERS
Fiscal Year
6/30/12
6/30/13
6/30/14
Annual Pension Cost
(APC)
$2,006,856
2,013,612
2,028,136
Percentage of APC
Contributed
100%
100%
100%
Net Pension
Obligation
$ 0
0
0
49
8j(4) Pg. 63
CITY OF MARINA
Plan Actuarial Value and Funding Progress
Effective for the 2005/06 fiscal year, PERS plans with fewer than 100 active
members as of June 30, 2003 are required to participate in a risk pool. With the
implementation of risk-pooling, PERS no longer provides stand-alone valuation
reports.
12 - Post-Retirement Health Care Benefits
Plan Description: The City of Marina participates in the California Public Employees
Retirement System (CalPERS), a cost-sharing multiple employer public employee
defined benefit pension plan. CalPERS provides postemployment medical insurance
benefits to retirees and their spouses who meet plan eligibility requirements in
accordance with various labor agreements. Employees are eligible for postretirement
medical benefits upon reaching age 50 with a minimum of five years of service.
Retirees can enroll in any of the available CalPERS medical plans, and City-provided
benefits continue for the life of the retiree and surviving spouse. The City contributes
the minimum amount provided under Government Code Section 22825 of the Public
Employees Medical and Hospital Care Act ($101 per month for 2009, $105 per month
in 2010, $108 per month in 2011, $112 per month in 2012, $115 per month in 2013,
$119 per month in 2014, and is projected to be $122 in 2015. Thereafter, monthly
contributions will increase to reflect changes in the medical care component of the
Consumer Price Index) Retirees must pay any premium amounts in excess of the
City contribution. For each bargaining unit, the minimum amount the City contributes
is pro-rated over the 20-year period starting from that unit's CalPERS coverage.
City's Funding Policy: The contribution requirements of plan members and the City
are established and may be amended by the City Council. The contribution required
to be made is based on a pay-as-you-go basis (i.e., as medical insurance premiums
become due.) For fiscal year 2013-14, the City contributed $22,831 to the plan
(100% of total current premiums). The City has not established a trust for the purpose
of holding assets accumulated for plan benefits.
Annual OPEB Cost and Net OPEB Obligation: The City's annual other
postemployment benefit (OPEB) cost (expense) is calculated based on the annual
required contribution of the employer (ARC), an amount actuarially determined in
accordance with the parameters of GASB Statement No. 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is projected to cover normal costs
each year and amortize any unfunded actuarial liabilities (or funding excess) over a
period not to exceed thirty years. The following table shows the components of the
City's annual OPEB cost for the 2013/14 fiscal year, the amount actually contributed
to the plan, and changes in the City's net OPEB obligation for these benefits:
50
8j(4) Pg. 64
CITY OF MARINA
Annual required contribution (ARC)
Interest on Net OPEB Obligation
Adjustment to the ARC
Annual OPEB Cost
Less: Contributions made (pay-as-you-go cost)
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
$
241,161
37,800
-39,083
$ 239,878
-20,578
$ 219,300
844,580
$1,063,880
Funded Status and Funding Progress: At June 30, 2014, the funded status of the
plan was as follows:
Actuarial accrued liability (AAL)
$ 2,260,356
Actuarial value of plan assets**
0
Unfunded actuarial accrued liability (UAAL)
$ 2,260,356
** GASB 45 requires that cash be placed in trust to be considered 'plan assets.' While the City has
segregated $200,000 in a separate fund, the fund does not qualify as a trust, so the segregated cash
is not treated as a 'plan asset.'
Funded ratio (actuarial value of plan assets/AAL)
Covered payroll (active plan members)
UAAL as a percentage of covered payroll
0%
$ 8,696,119
26.0%
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for the fiscal year ended June 30, 2013, and the
preceding years were as follows: (2009/10 was the first GASB-45 year)
cumulative
Fiscal
% of
Net
Year
Annual
Annual OPEB
OPEB
Ended OPEB Cost Cost Contributed Obligation
6/30/10 $205,257
4.75%
$ 195,497
6/30/11 $224,416
5.22%
$ 408,184
6/30/12 $244,877
5.77%
$ 638,925
6/30/13 $221,072
6.97%
$ 844,580
6/30/14 $239,878
8.58%
$1,063,880
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality, and the
healthcare cost trend. Amounts determined regarding the funded status of the plan
and the annual required contributions of the employer are subject to continual
revision as actual results are compared with past expectations and new estimates
are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to the financial statements, present
multi-year trend information about whether the actuarial value of plan assets is
51
8j(4) Pg. 65
CITY OF MARINA
increasing or decreasing over time relative to the actuarial liabilities for the benefits.
Actuarial Methods and Assumptions: Projections of benefits for financial reporting
purposes are based on the substantive plan (the plan as understood by the employer
and the plan members) and include the types of benefits provided at the time of each
valuation and the historical pattern of sharing of benefit costs between employer and
plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial assets, consistent with the long-term perspective
of the calculations.
The actuarial cost method used for determining the benefit obligations is the Entry
Age Normal Cost Method. The actuarial assumptions included a 4.5 percent
investment rate of return, which is the assumed rate of the expected long-term
investment returns on plan assets calculated based on the funded level of the plan at
the valuation date, and an annual healthcare cost trend rate of 4.5% including all
inflation factors. The UAAL is being amortized as a level percentage of projected
payroll over 30 years.
Actuarial
Valuation
Date
6/30/10
6/30/11
6/30/12
6/30/13
6/30/14
SCHEDULE OF FUNDING PROGRESS
Actuarial
Accrued
UAAL as a
Actuarial Liability Unfunded
% of
Value of
(AAL)AAL
Funded Covered Covered
Assets Entry Age
(UAAL)
Ratio
Payroll
Payroll
(a)
(b)
(b-a)
(a/b)
(c)
(b-a)/c)
$0
$1,617,429 $1,617,429
0% $8,724,150 18.5%
0
1,816,336 1,816,336
0%
7,737,432 23.5%
0
2,029,646 2,029,646
0%
8,190,417 24.8%
0
2,059,801 2,059,801
0%
8,790,527 23.4%
0
2,260,356 2,260,356
0%
8,696,119 26.0%
As the City’s OPEB benefits are administered by City personnel, no separate
financial statements are issued.
13 - Deferred Compensation Plan
The City offers its employees two deferred compensation plans created in
accordance with California Code Section 53212 and Internal Revenue Code Section
457 under which employees can defer a portion of their salary until future years. The
deferred compensation plan money is a deduction from the employees’ salary and is
invested with independent retirement trustees. The trustees hold the amounts
deferred and any related income on behalf of employees; therefore, the City does not
report any deferred compensation in its financial statements.
52
8j(4) Pg. 66
CITY OF MARINA
14 - Commitments and Contingencies
Contingent Liabilities
The City receives funding from a number of federal, state and local grant programs,
principally the Community Development Block Grants. These programs are subject
to financial and compliance review by grantors. Accordingly, the City’s compliance
with applicable grant requirements will be determined at some future date.
Expenditures, if any, which may be disallowed by the granting agencies cannot be
determined at this time. The City does not expect the undeterminable amounts of
disallowed expenditures, if any, to materially affect the financial statements. Receipt
of these federal, state and local grant revenues is not assured in the future.
Litigation
Various claims and lawsuits are pending against the City. Although the outcome of
these claims and lawsuits is not presently determinable, in the opinion of the City’s
counsel the resolution of these matters will not have a material adverse effect on the
financial condition of the City.
15 - Risk Management
The City is exposed to various risks of losses related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural
disasters. The City purchases liability, property, errors and omissions, and workers’
compensation insurance from the Monterey Bay Area Self Insurance Authority
(MBASIA), a risk-sharing program. Under this program, coverage is provided for up
to a maximum of $20,000,000 for each general liability claim less the City’s
deductible of $10,000. Statutory coverage is provided for workers’ compensation
claims.
The City is assessed a contribution to cover claims, operating costs and claim
settlement expenses based upon an actuarially determined rate for each coverage
layer pool. Additional cash contributions may be assessed on the basis of adverse
loss experience. If the events of the year result in a negative risk position, the
members’ annual assessment may be increased in subsequent years. The City is
unable to reasonably estimate the probability of MBASIA ending the year in a
negative risk position. Refunds to members may be made if funds are determined to
be surplus as a result of an actuarial study.
The City currently reports liability risk management activities in the General Fund.
Claims expenditures and liabilities are reported when it is probable that a loss has
53
8j(4) Pg. 67
CITY OF MARINA
occurred and the amount of that loss can be reasonably estimated. Workers
compensation insurance costs are allocated to various departments proportionate to
their total payroll. For the year ended June 30, 2014, the City paid a total of
$1,138,399 to MBASIA for insurance coverage; $178,381 and $960,018 for liability
and workers compensation insurance, respectively and did not receive a rebate from
the program.
16 - Rental Income
The City receives rents from several properties including Abrams B Apartments and
Preston Park. Abrams B Apartments are owned by the City through its component
unit, the Abrams B Non-Profit Corporation. During the 13-14 fiscal year, Abrams B
generated $2,919,524 in rental income. The City also receives rents from Preston
Park. During the 13-14 fiscal year, the City received $1,737,006 in rents from Preston
Park.
17 - Subsequent Events
At June 30, 2014, the unpaid principal balance of the Marina Greens Assessment
District Limited Obligation Improvement Bonds was $155,000, due in September,
2014 and September, 2015 in the amounts of $75,000 and $80,000 respectively. The
bond indenture required that when reserve fund cash was sufficient to retire all
remaining bonds, the bonds be called and redeemed. Accordingly, in September,
2014, reserve fund cash was transferred to the trustee Union Bank, and all remaining
outstanding bonds were redeemed.
On November 4, 2014, Marina voters overwhelmingly passed two tax measures
intended to enhance the City's general purpose revenues: Measure E eliminated the
termination date of the previously temporary increase in the City's transient
occupancy tax ('hotel tax') from 10% to 12%, approved by voters on November 2,
2010, making the increase permanent; and Measure F which extended the temporary
1% transactions and use tax ('sales tax') for ten years, now due to expire March 31,
2026.
54
8j(4) Pg. 68
OTHER SUPPLEMENTARY INFORMATION
8j(4) Pg. 69
CITY OF MARINA
General Fund
Combining Balance Sheet
June 30, 2014
GASB-45
OPEB
Obligation
Fund
General
Fund
ASSETS
Cash and Investments - Unrestricted
Cash - Restricted
Accrued Receivables
Interfund Receivables & Payables - Short-term Cash Flow Loans
Loans & Notes Receivable
TOTAL ASSETS
LIABILITIES
Accounts Payable
Accrued Payables
Deposits and Other liabilities
Unearned Revenue
Advances from Other Funds
TOTAL LIABILITIES
Unavailable Revenue - State of CA SB-90 Claims
Nonspendable
Restricted
Committed
Assigned
Unassigned
TOTAL FUND BALANCE (DEFICIT)
$
7,051,381
57
12,000
2,002,369
1,872,689
243,713
75,000
$ 11,257,209
$
$
$
$
1,157,053
411,305
302,084
100,179
1,970,621
$
$
$
Marina
Technology
Cluster
Fund
200,000
200,000
$
-
418,846
$
545,361
180,782
8,141,599
8,867,742
$
$ 11,257,209
$
$
$
$
(13,571)
(13,571)
$
5,739
11,800
2,255
19,794
-
$
-
$
$
200,000
200,000
$
200,000
Development
Activity
Fund
$
Total
54,969
(1,632,470)
$ (1,577,501)
$
$
$
$
7,251,381
57
12,000
2,057,338
226,648
243,713
75,000
9,866,137
$
2,502
50,000
52,502
$
1,165,294
411,305
313,884
102,434
50,000
2,042,917
$
-
$
418,846
$
$
(33,365)
(33,365)
$
(1,630,003)
$ (1,630,003)
$
545,361
180,782
200,000
6,478,231
7,404,374
$
(13,571)
$ (1,577,501)
$
9,866,137
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCE (DEFICIT)
-56-
8j(4) Pg. 70
CITY OF MARINA
General Fund
Combining Schedule of Revenues, Expenditures & Changes in Net Position
GASB-45
Marina
General
OPEB
Obligation
Technology
Cluster
Development
Activity
Fund
Fund
Fund
Fund
Total
REVENUES
Taxes
$ 12,065,087
Fines and Penalties
Investment Earnings
Charges for Services, Grants & Other Program Revenues
Total Revenues
$
195,743
444,470
-
$
-
-
$
-
-
$ 12,065,087
-
195,743
444,470
23,594
-
3
-
23,597
4,199,664
32,054
-
88,114
-
7,226
-
4,295,004
32,054
$ 17,055,955
$ 16,960,612
$
-
$
88,117
$
7,226
$
$
-
$
-
$
-
EXPENDITURES
General Government
Public Safety
Public Works
2,333,193
10,209,287
1,983,541
997,544
891,308
Debt Service - Interest and Other Debt Service Costs
Total Expenditures
OVER(UNDER) EXPENDITURES
OTHER FINANCING SOURCES(USES)
Interfund Transfers (Out)
215,683
1,324,932
891,308
485,000
-
-
-
485,000
$
-
$
111,705
$
215,683
131,754
$ 17,359,015
$
(71,015)
$
-
$
(23,588)
$
(208,457)
$
(303,060)
$
614,841
$
-
$
$
$
-
$
(5,000)
(5,000)
$
$
$
40,838
(8,470)
32,368
$
(94,800)
520,041
655,679
(108,270)
547,409
1,068,800
$
111,705
2,333,193
10,209,287
1,983,541
131,754
$ 17,031,627
EXCESS (DEFICIENCY) OF REVENUES & OTHER SOURCES
OVER(UNDER) EXPENDITURES, OTHER USES & SPECIAL ITEM
-
$
1,517,826
-
$
7,349,916
$
8,867,742
-
-
$
200,000
$
200,000
$
(28,588)
$
-
$
(176,089)
(4,777)
(1,453,914)
(33,365)
$ (1,630,003)
1,068,800
# $
1,313,149
6,091,225
$
7,404,374
-57-
8j(4) Pg. 71
CITY OF MARINA
Non-major Governmental Funds
June 30, 2014
CDBG
Housing
CDBG
ASSETS
Cash (Restricted)
Accrued Receivables
Notes Receivable
TOTAL ASSETS
$
$
171,262
165,985
188,127
525,374
$
$
Streets
3,465
2
76,500
79,967
National
Parks
Recreation
Services
$ 242,792
83,474
$ 326,266
$
$
$
$
394,144
213
394,357
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
LIABILITIES
Accounts Payable
Due to Other Funds (Short Term)
Unearned Revenue
TOTAL LIABILITIES
Unavailable Revenue - CDBG Business and Home Loans
$
Nonspendable
Restricted
Committed
Assigned
Unassigned
TOTAL FUND BALANCES (DEFICITS)
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
$
15,000
225,843
240,843
$
$
$
$
-
$
188,127
$
76,500
$
$
$
3,467
3,467
$
$
96,404
96,404
$
525,374
$
79,967
69,430
69,430
-
$
4,410
1,840
6,250
$
-
256,836
$ 256,836
$
$
388,107
388,107
$ 326,266
$
394,357
-58.-
8j(4) Pg. 72
PEG
$
$
$
$
$
$
Monterey
Cypress
Seabreeze
Bay Estates
Cove II
Ass'm't
Ass'm't
Ass'm't
District
District
District
Marina
Woods
Ass'm't
District
134,711
24,087
158,798
24,087
24,087
-
$
-
$
$
$
$
$
134,711
134,711
$
$
$
158,798
$
590
805
1,395
-
(1,395)
(1,395)
-
$
$
$
1,317
1
1,318
$
$
$
$
643
643
$
$
2,076
2
2,078
$
$
16,218
6
16,224
LockePaddon
$
$
$
$
93
93
-
$
-
$
-
$
$
$
(858)
(858)
$
$
675
675
$
1,318
$
$
1,985
1,985
$
$
2,078
$
17,082
17,082
CFD 2007-2
16,224
$
$
24,383
14
24,397
2,759
2,759
-
$
21,638
21,638
$
24,397
(continued)
-58-
8j(4) Pg. 73
CITY OF MARINA
June 30, 2014
Capital Projects
Park
Facilities
Airport
ASSETS
Cash (Restricted)
Accrued Receivables
Notes Receivable
TOTAL ASSETS
$
$
177,671
177,671
$
82,930
50,707
133,637
$
$
Debt Service Funds
Library
Construction
2,196
1
2,197
$
-
$
$
Library
Bonds
City General
Obligation
Bonds
872,319
400
872,719
$
222,007
30
$ 222,037
$
-
$
$
$
Marina
Landing
Bonds
318,821
133
318,954
$
$
$
$
$
Marina
Greens
Bonds
Totals
43,423
20
43,443
$
210,359
86
$ 210,445
$
-
$
$
$
1,864,883
794,610
452,125
264,627
3,376,245
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable
Due to Other Funds (S/T)
Unearned Revenue
TOTAL LIABILITIES
$
Unavailable Revenue - CDBG Loans
$
$
-
$
$
-
Nonspendable
$
$
Restricted
44,034
2,197
Committed
Assigned
Unassigned
TOTAL FUND BALANCEs (DEFICITS) $
44,034
$
2,197
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
$ 177,671
$
2,197
$
$
-
$
$
600
600
$
635
635
$
-
$
-
872,719
$ 872,719
$
221,437
$ 221,437
$
$
$ 222,037
872,719
$
$
318,319
318,319
$
318,954
-
-
$
$
-
$
218,259
277,355
1,840
497,454
$
264,627
2,481,706
134,711
(2,253)
2,614,164
$
210,445
$ 210,445
$
$
43,443
43,443
$
43,443
$ 210,445
$
$
3,376,245
(concluded)
-59-
8j(4) Pg. 74
CITY OF MARINA
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
National
Parks
Recreation
CDBG
CDBG
Housing
Streets
Services
REVENUES
Taxes
$
Investment Earnings
-
$
-
2,442
82
Grants, Service Charges & Other Program Revenues
-
Other Revenue
-
Total Revenues
$
2,442
$
-
$
$
851,682
$
-
128
1,049
-
-
106,123
-
17,818
-
82
$
869,628
$
107,172
-
$
629,443
$
-
EXPENDITURES
Public Works
$
390,327
-
-
-
-
-
-
188,964
Public Improvements
-
-
-
-
-
-
-
-
Debt Service - Interest & Fees
-
-
-
Total Expenditures
-
$
390,327
$
-
$
629,443
$
188,964
$
(387,885)
$
82
$
240,185
$
(81,792)
-
$
-
$
$
Interfund Transfers(Out)
(
)
-
$
(5,000)
( ,
)
Total Other Financing Sources (Uses)
-
$
(5,000)
$
$
(392,885)
$
((7,000)
,
)
-
$
82
$
(7,000)
46,352
((105,964)
,
)
$
(59,612)
$
(141,404)
$
388,107
EXCESS OF REVENUES
AND OTHER SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES
489,289
$
96,404
3,384
$
3,466
233,185
23,651
$
256,836
529,511
-60-
8j(4) Pg. 75
Marina
PEG
$
$
$
-
$
Monterey
Cypress
CFD
Woods
Seabreeze
Bay Estates
Cove II
2007-2
Ass'mt
Ass'm't
Ass'm't
Ass'm't
Locke-
District
District
District
District
Paddon
-
$
-
$
-
$
-
$
-
-
1
6
7
27
69
85,531
3,440
4,471
12,511
19,396
-
-
-
-
-
-
-
85,531
$
3,441
$ 4,477
$ 12,518
$ 19,423
$
69
-
$
$
14,869
5,677
$ 6,638
$ 13,158
$ 32,771
85,531
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
85,531
$
5,677
$ 6,638
$ 13,158
$ 32,771
$
14,869
$
-
$
(2,236)
$ (2,161)
$
$ (13,348)
$
(14,800)
-
$
$
$
$
$
$
$
$
-
-
((326))
((1,740)
,
)
((2,871)
,
)
((2,751)
,
)
-
-
$
(326)
$ (1,740)
$ (2,871)
$
(2,751)
$
-
$
(2,562)
$ (3,901)
$ (3,511)
$ (16,099)
$
(14,800)
$
21,638
134,711
$
-
(640)
134,711
1,167
$
(1,395)
$
4,576
5,496
675
$ 1,985
15,241
$
(858)
-
36,438
(continued)
-60-
8j(4) Pg. 76
CITY OF MARINA
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances
Capital Projects Funds
Airport
Debt Service Funds
City General
Marina
Marina
Park
Library
Library
Obligation
Landing
Greens
Facilities
Construction
Bonds
Bonds
Bonds
Bonds
Totals
REVENUES
Taxes
$
Investment Earnings
Grants ,Service Chrgs & Other Program Revenues
-
$ 417,627
84
-
$
3
2,358
83
572
146
345
7,402
269,462
-
-
-
-
-
88,039
588,973
-
-
$
69,450
$
-
$
-
$
1,338,759
-
-
$
269,546
$
3
$
2,358
$ 417,710
$
70,022
$
146
$
88,384
$
1,952,952
$
-
$
-
$
-
$
$
-
$
-
$
-
$
702,555
Other Revenue
-
$
-
-
-
17,818
EXPENDITURES
Public Works
-
-
-
-
-
-
-
-
475,858
-
-
-
-
-
-
-
188,964
221,299
-
-
-
-
-
-
221,299
-
-
-
20,000
45,000
190,000
70,000
325,000
Public Improvements
-
379,135
$
221,299
$
-
$
-
$ 399,135
$
65,655
$
48,247
$
3
$
2,358
$
18,575
$
4,367
$
46,000
$
-
$
-
$
-
$
Debt Service - Interest & Fees
-
20,655
6,454
$
196,454
13,035
419,279
$
83,035
$
$ (196,308)
$
5,349
$
$
$
-
$
2,332,955
(380,003)
-
Interfund Transfers(Out)
(
)
Total Other Financing Sources (Uses)
$
-
46,000
$
94,247
$
-
-
$
3
$
((2,535)
,
)
-
$
2,358
$
((1,157)
,
)
(2,535)
$
16,040
$
(1,157)
((2,389)
,
)
$
((1,181)
,
)
(2,389)
$
$ (198,697)
$
92,352
((132,914)
,
)
(1,181)
$
4,168
$
(40,562)
EXCESS OF REVENUES
AND OTHER SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES
$
(50,213)
$
44,034
2,194
$
2,197
$
3,210
870,361
205,397
315,109
872,719
$ 221,437
$ 318,319
$
242,140
206,277
43,443
$ 210,445
(420,565)
3,034,729
$
2,614,164
(concluded)
-61-
8j(4) Pg. 77
CITY OF MARINA
Fiduciary Funds
Combining Schedule of Net Position
June 30, 2014
Successor
Agency
Operating
Fund
ASSETS
Accrued Receivables
Advances (to)from Other Funds, Net
TOTAL ASSETS
LIABILITIES
Accounts Payable
Accrued Payables
Due to City of Marina (Long Term)
Bonds Payable:
Due Within One Year
TOTAL LIABILITIES
$
-
$
$
Successor
Agency
Obligation
Retirement
Fund
Successor
Agency
Housing
Fund
-
$
-
$
$
$
$
$
-
$
-
$
$
-
-
$
-
$
$
Successor
Agency
Housing
Assets
Fund
928,387
12,113
286
(229,715)
510,000
1,221,071
$
3,563
192
328,713
$
$
20,000
490,000
842,468
-
$
-
$
$
Total
48,992
23
229,715
900,000
1,178,730
$
-
$
$
977,379
12,113
309
510,000
900,000
2,399,801
3,563
192
328,713
$
-
$
20,000
490,000
842,468
529,210
$
-
$
529,210
(150,607)
$
1,178,730
$
1,028,123
-62-
8j(4) Pg. 78
CITY OF MARINA
Fiduciary Funds
Combining Schedule of Changes in Fiduciary Net Position
Successor
Successor
Successor
Agency
Successor
Agency
Agency
Obligation
Agency
Housing
Operating
Housing
Retirement
Assets
Fund
Fund
Fund
Fund
Total
ADDITIONS
Property Taxes (Net of DOF True-Up Adjustment)
$
-
$
-
$
1,272,603
$
-
$
1,272,603
Investment Earnings
254
1
1,819
98
2,172
-
-
29,139
-
29,139
-
39,501
39,501
Interfund Transfers
Total Revenues
-
540,060
-
(287,039)
$
579,815
$
$
583,719
$
(287,038)
(540,060)
287,039
-
$
763,501
$
287,137
$
1,343,415
$
1,062,244
$
8,407
$
1,654,370
DEDUCTIONS
ROPS Payments:
Program Costs
-
-
-
41,649
-
41,649
Employee Costs
-
-
102,287
117,005
-
102,287
117,005
Total Expenditures
$
$
$
583,719
(3,904)
3,904
-
$
$
$
(287,038)
287,038
-
$
1,323,185
$
8,407
$
1,915,311
$
(559,684)
354,077
$
278,730
955,000
$
(571,896)
1,600,019
$
(205,607)
$
1,233,730
$
1,028,123
-63-
8j(4) Pg. 79
December 3, 2014
Agenda Item: 8m(1)
APPROVING MAYOR’S 2015 RECOMMENDATION FOR MAYOR
PRO TEM AND CITY COUNCIL MEMBER ASSINGMENTS TO
VARIOUS COMMITTEES /COMMISSIONS /BOARDS
REQUEST:
1.
Consider adopting Resolution No. 2014-, approving Mayor’s 2015 recommendation
for Mayor Pro Tem and City Council member assignments to various
Committees/Commissions/Boards.
BACKGROUND:
Annually, the Mayor considers appointing a Mayor Pro Tem and makes recommendations for
City Council Member assignments to various commissions, boards and committees in special
districts and organizations, joint powers authorities and other agencies.
ANALYSIS:
Mayor Delgado has considered these appointments and is making recommendations for City
Council member assignments to the various commissions, boards and committees in special
districts and organizations, joint powers authorities and other agencies (“EXHIBIT A”).
FISCAL IMPACT:
None
CONCLUSION:
____________________________
Layne P. Long
City Manager
City of Marina
8m(1) Pg. 1
APPROVING MAYOR’S 2015 RECOMMENDATION FOR MAYOR PRO TEM
AND CITY COUNCIL MEMBER 2015 ASSIGNMENTS TO
COMMITTEE/COMMISSION/BOARD ASSIGNMENTS
WHEREAS, annually, the Mayor considers City Council Member assignments to various
commissions, boards and committees in special districts and organizations, joint powers
authorities and other agencies, and;
WHEREAS, Mayor Delgado has considered these appointments and is making recommendations
for City Council member assignments to the various commissions, boards and committees in
special districts and organizations, joint powers authorities and other agencies (“Exhibit A”).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Marina hereby
approve Mayor’s recommendations for Mayor Pro Tem and City Council member assignments
to various commissions, committees and boards.
held on the 16TH day of December 2016, by the following vote:
ATTEST:
_______________________________
_____________________________
8m(1) Pg. 2
DRAFT - CITY COUNCIL COMMISSION, COMMITTEE AND BOARD ASSIGNMENTS
For Period of January 1, 2015 – December 31, 2015
AGENCY
1)
STIPEND
City of Marina Mayor Pro Tem
EXHIBIT A
MEMBERS
Frank O’Connell
SPECIAL DISTRICTS
1)
Fort Ord Reuse Authority (FORA)
2nd Friday, 4 p.m., FORA Conference Room
Michael Houlemard, Executive Officer
920 2nd Street, Ste A
Marina, CA 93933
Ph: 883-3672; Fax: 883-3675
E-Mail: [email protected]
No compensation
Member: Gail Morton
Member: Frank O’Connell
Alternate: David W. Brown
Alternate: Nancy Amadeo
2)
Monterey Regional Waste Management District
(MRWMD)
3rd Friday, 9:30 a.m., 14201 Del Monte Blvd, Marina
William Merry, General Manager
PO Box 609
Marina CA 93933
Ph: 384-5313; Fax: 384-3567
WebSite: www.mrwmd.org
$50/Mtg
Member: Bruce Delgado
4-year term through 2016
3)
Northern Salinas Valley Mosquito Abatement District
$60/Mtg
(NSVMAD)
2nd Tuesday, 12 noon,
Board of Trustees
342 Airport Blvd
Salinas, CA 93905
Ph: 422-6438 (Salinas Office) 373-2483 (Marina Residents); Fax: 422-3337
Page 1 of 5
Member: Nancy Amadeo
4-year term through 2016
8m(1) Pg. 3
4)
Monterey-Salinas Transit (MST)
2nd Monday, 10 a.m.,
One Ryan Ranch Rd, Monterey
Carl Sedoryk, General Manager
Monterey CA 93940
Ph: 393-8192; Fax: 899-3954
Web Site: www.mst.org
$100/Mtg
Member: Frank O’Connell
Alternate: David Brown
JOINT POWERS AUTHORITIES
1)
Community Human Services Project (CHS)
3rd Thursday, 11 a.m.
Sand City, City Hall, One Sylvan Park
Robin McCrae, Executive Director
PO Box 3076
Monterey CA 93942-3076
Ph: 658-3811; Fax: 658-3815
Web Site: www.chservices.org
No compensation
Alternate: Gail Morton
2)
Association of Monterey Bay Area Governments
(AMBAG)
2nd Wednesday, 7 p.m., Various Locations
Maura Twomey, Executive Director
PO Box 838
Marina CA 93933
Ph: 883-3750; Fax: 883-9155
$50Mtg
Member: David W. Brown
Alternate: Bruce C. Delgado
Page 2 of 5
8m(1) Pg. 4
SPECIALLY CONSTRUCTED ORGANIZATIONS
1)
Monterey County Mayors Select Committee
And Mayors’ Association
1st Friday, 12 noon, Various Locations
Office of the Mayor
Monterey City Hall
Monterey CA 93940
Ph: 646-3760; Fax: 646-3702
No compensation
Member: Bruce C. Delgado
2)
Transportation Agency of Monterey County (TAMC)
4th Wednesday, 9 a.m. (December: 1st Wednesday)
Salinas Community Center, 940 N Main St
Debbie Hale, Executive Director
55-B Plaza Cr
Salinas CA 93901-2902
Ph: 775-0903; Fax: 775-0897
No compensation
Alternate: Frank O’Connell
3)
Transportation Agency of Monterey County (TAMC)
Bicycle & Pedestrian Facilities Advisory Committee
55-B Plaza Cir., Salinas, CA 93901-2902
Ph: 647-7777
1st Wednesday 6:00 – 8:00 PM
4)
Monterey County Convention & Visitors Bureau
3rd Wednesday, 4:00 p.m., various locations
Wave Street
Monterey, CA 93940
Ph: 657-6400
Fax: 648-5373
Bernard Green
Dominick Askew
2-year term
No compensation
Page 3 of 5
Member: Jackie Behrick
2-year term
8m(1) Pg. 5
PARTICIPATION WITH OTHER AGENCIES
1)
Joint City/Marina Coast Water District
No compensation
Coordination Committee
1st Wednesday, 5 p.m., Marina City Hall Conference Room
Jim Heitzman, General Manager
11 Reservation Road
Marina CA 93933
Ph: 384-6131; Fax: 384-2479
Member: Gail Morton
Member: David Brown
Alternate: Bruce Delgado
2)
Marina Coast Water District (MCWD)
No compensation
Conservation Commission
1st Monday, 5:30 p.m., Marina Coast Water Dist, 11 Reservation Rd
11 Reservation Rd
Marina CA 93933
Ph: 384-6131; Fax: 384-2479
Member: David Brown
3)
Marina Coast Water District
No compensation
Ord Community Ad Hoc Annexation Committee (OCAC)
11 Reservation Rd
Marina CA 93933
Ph: 384-6131; Fax: 384-2479
Alternate: David Brown
4)
Access Monterey Peninsula (AMP)
3rd Thursday, 5:30 p.m., 2200 Garden Rd, Monterey
Paul Congo, Executive Director
2200 Garden Rd
Monterey, CA 93940
Ph: 333-1267; Fax: 333-0386
E-Mail:[email protected]
No compensation
Page 4 of 5
8m(1) Pg. 6
5)
Monterey Peninsula Unified School District
Governance Council
Bi-Monthly Monday, 7:00 p.m., Various locations
Ms. Leslie Codianne, Superintendent
PO Box 1031
Monterey, CA 93942-1031
Ph: 645-1203; Fax: 649-4175
No compensation
LIAISON TO CITY COMMISSIONS & COMMITTEES
1)
Economic Development Commission (EDC)
1ST Thursday, 6:30 p.m., Council Chambers
No compensation
Alternate: Frank O’Connell
David Brown
2)
Planning Commission (PC)
2nd & 4th Thursday, 6:30 p.m., Council Chambers
Frank O’Connell
4)
Public Works Commission
3rd Thursday, 6:30 p.m., Council Chambers
Nancy Amadeo
5)
Recreation & Community Services Commission
1st Wednesday, 6:15 p.m., Council Chambers
Gail Morton
APPROVED at a Regular Meeting of the City Council duly held on December 16, 2014
___________________________
ATTEST:
__________________________
Page 5 of 5
8m(1) Pg. 7
December 11, 2014
Honorable President and Members
of the Marina Joint Powers Financing Authority
Item No.
11(a)
Joint Powers Financing Authority
Meeting of December 16, 2014
RECOMMENDATION TO CONSIDER ADOPTING RESOLUTION NO.
2014-, (JPA) ELECTING OFFICERS AND DIRECTING THE FILING OF
NOTICES WITH SECRETARY OF STATE AND THE COUNTY CLERK
RECOMMENDATION:
It is recommended that the Joint Powers Financing Authority Board:
1.
Consider adopting Resolution No. 2014-, (JPA), electing officers and directing the
filing of notices with Secretary of State and the County Clerk.
BACKGROUND:
On July 10, 1990, the City Council and the Redevelopment Agency created a Joint Powers
Financing Authority Agreement authorized under the Marks-Roos Local Bond Pooling Act of
1985.
This action was previously done in 2005 wherein the then mayor and mayor pro-tem were
elected as president and vice president, respectively.
ANALYSIS:
Pursuant to Article VI of the JPA Agreement, the Governing Board shall hold at least one regular
meeting each year. The Governing Board shall fix by resolution the date upon which, and the
hour and place at which, each regular meeting is to be held.
Pursuant to Article VII of the JPA Agreement, the Governing Board of the Authority shall elect a
President and Vice President from among its members at its first meeting. Thereafter, in the last
meeting in each succeeding fiscal year, the Governing Board shall elect a president and vice
president from among its members. Each Officer shall assume the duties of his or her office
upon election. If either the president or vice president cease to be a Representative the resulting
vacancy shall be filled at the next regular meeting of the Governing Board held after the vacancy
occurs. In the absence or inability of the president to act, the vice president acts as president.
The president shall preside at and conduct all meetings of the Governing Board. The Governing
Board shall appoint an executive director, a secretary and treasurer/auditor of the Authority who
may, but need not be, a Representative of the Governing Board. The treasurer/auditor shall be so
qualified to hold such positions pursuant to Sections 6505.5 and 6505.6 of the California
Government Code. The Governing Board may appoint such other officers as it considers
necessary.
Section 53051 of the Government Code of the State of California requires the filing of a public
agency roster with the Secretary of State and the County Clerk of each county in which the
public agency maintains an office within ten (10) days after the change in said roster of the
public agency.
FISCAL IMPACT:
None
11a
Pg. 1
CONCLUSION:
This request is submitted for the Joint Powers Financing Authority and City Council
consideration and possible action.
___________________________
Anita Sharp
Deputy City Clerk/Secretary
City of Marina
REVIEWED/CONCUR:
_____________________________
Layne P. Long
City Manager
City of Marina
Executive Director
Successor Agency to the Former
11a
Pg. 2
RESOLUTION NO. JPA 2014A RESOLUTION OF THE GOVERNING BOARD OF THE MARINA
JOINT POWERS FINANCING AUTHORITY OF THE CITY OF MARINA
TO ELECT OFFICERS, AND DIRECTING THE FILING OF NOTICES WITH
SECRETARY OF STATE AND THE COUNTY CLERK
WHEREAS, the City of Marina and the Marina Redevelopment Agency have heretofore
approved the formation of the Marina Joint Powers Financing Authority (the “Authority”)
through the execution of a joint exercise of powers agreement, dates as of July 1, 1990 (the “JPA
Agreement”), by separate resolutions of each entity on July 10, 1990, and;
WHEREAS, pursuant to Article VII of the JPA Agreement, the governing board of the Authority
(the “Governing Board”) has elected, from among its members, a President and a Vice President,
and;
WHEREAS, pursuant to Article VII of the JPA Agreement, the Governing Board has appointed
an Executive Director, a Secretary and a Treasurer/Auditor, and;
WHEREAS, Section 53051 of the Government Code of the State of California requires the filing
of a public agency roster with the Secretary of State and the County Clerk of each county in
which the public agency maintains an office within ten (10 days after the change in said roster of
the public agency, and;
WHEREAS, the Governing Board desires to declare the results of the election and appointments
referred to above, direct compliance with the JPA Agreement and the State of California law,
and take certain other administrative actions in connection therewith.
NOW, THEREFORE, BE IT RESOLVED, that the Governing Board of the Marina Joint Powers
Financing Authority does hereby find, order and determine:
1.
That the names of the officers duly elected by the Governing Board are set forth next
to their respective offices as follows:
Name
Bruce C. Delgado
Frank O’Connell
2.
Office
President
Vice President
That the names of the officers duly appointed by the Governing Board are set forth
next to their respective offices or their successors in office as follows:
Name
Layne P. Long
Anita Shepherd-Sharp
Lauren Lai
Office
Executive Director
Secretary
Treasurer/Auditor
11a
Pg. 3
Resolution No. JPA 2014Page Two
3.
That the Executive Director prepare a public agency roster pursuant to the
government Code Section 53051, which public agency roster shall be filed with the
Secretary of State of the State of California and with the County Clerk of the County
of Monterey no later than January 10, 2015. Such a public agency roster shall include
the following information:
a. The full legal name of the Authority.
b. The official mailing address of the Governing Board of the Authority.
c. The name and residence or business address of each member of the Governing
Body of the Authority.
d. The name, title, and residence or business address of the President and Secretary
of the Governing Body of the Authority.
4.
The Executive Director is hereby authorized to file an amended public agency roster
with the Secretary of State of the State of California and with the County Clerk of the
County of Monterey within ten (10) days after any changes in the facts required to be
stated pursuant to Government Code Section 53051.
PASSED AND DOPTED by the members of the Marina Joint Powers Financing Authority at a
regular meeting duly held on the 16th day of December, 2014 by the following vote:
AYES, MEMBERS:
NOES, MEMBERS:
ABSENT, MEMBERS:
ABSTAIN, MEMBERS:
ATTEST:
_________________________
, President
________________________
Anita Sharp, Secretary
11a
Pg. 4
December 4, 2014
Honorable Chair and Members
of the Abrams B Non-Profit Corporation
Item No.
11b
Abrams B NPC Meeting
CITY COUNCIL AND BOARD OF ABRAMS B NON-PROFIT CONSIDER
ADOPTING RESOLUTION NO. 2014- AND RESOLUTION NO. 2014(NPC), APPROVING AMENDMENT NO. 8 TO MANAGEMENT
AGREEMENT BETWEEN CITY OF MARINA, CITY OF MARINA
ABRAMS B NON-PROFIT CORPORATION, AND ALLIANCE
COMMUNITIES INC., FOR ABRAMS B HOUSING AREA, SUBJECT TO
APPROVAL
BY
THE
FEDERAL
NATIONAL
MORTGAGE
ASSOCIATION,
AUTHORIZING
CITY
MANAGER/EXECUTIVE
DIRECTOR TO EXECUTE AMENDMENT NO. 8 TO MANAGEMENT
AGREEMENT ON BEHALF OF THE CITY AND THE NON-PROFIT
CORPORATION SUBJECT TO FINAL REVIEW AND APPROVAL BY
THE CITY ATTORNEY/NON-PROFIT CORPORATION LEGAL
COUNSEL
REQUEST:
It is requested that the City Council and Board of Abrams B Non-Profit Corporation consider:
1. Adopting Resolution No. 2014- approving Amendment No. 8 to Management
Agreement between the City of Marina, the City of Marina Abrams B Non-Profit
Corporation (“Non-Profit Corporation”) , and Alliance Communities Inc., for Abrams
B Housing Area, subject to final approval by the Federal National Mortgage
Association, and;
2. Authorizing City Manager to execute Amendment No. 8 to Management Agreement
on behalf of the City subject to final review and approval by the City Attorney;
3. Adopting Resolution No. 2014- (NPC), approving Amendment No. 8 to Management
Agreement between the City of Marina, the Non-Profit Corporation, and Alliance
Communities, Inc., subject to final approval by the Federal National Mortgage
Association, and;
4. Authorizing the Executive Director to execute Amendment No. 8 to Management
Agreements on behalf of the Non-Profit Corporation subject to final review and
approval by the Non-Profit Corporation Legal Counsel.
BACKGROUND:
The City is the owner of the Abrams B housing area and the Abrams B Non-Profit Corporation is
the lessee of the property. In 2006, in connection with financing arrangement for Abrams B
housing, the Non-Profit Corporation was required by the Federal National Mortgage Association
(“Fannie Mae”), acting as the credit enhancer for the financing arrangement, to enter into a
conditional assignment of the Management Agreement whereby in the event of a default in the
financing arrangement the Management Agreement would be assigned to Fannie Mae. Any
termination and all subsequent amendments to the Management Agreement are subject to the
11b Pg. 1
prior written approval of Fannie Mae. Fannie Mae approved the Management Agreement with
Alliance Communities, Inc., and all amendments to date to the Management Agreement.
At a regular meeting of October 16, 2007, the City Council adopted Resolution No. 2007-249
and the Non-Profit Corporation Board adopted Resolution No. 2007-01 (NPC) approving the
Management Agreement with Alliance Residential LLC (which became Alliance Communities
Inc. in May 2009) for management of the Abrams housing area. The term of the Agreement was
for three (3) years, from January 1, 2008 to December 31, 2011.
On December 27, 2007, Amendment No. 1 to the Management Agreement for Abrams Park was
executed by the City Manager on behalf of the City and the Executive Officer on behalf of the
Abrams B Non-Profit Corporation. The Amendment modified the term of the Agreement to two
(2) years, to December 31, 2010, with an option for extension of an additional one-year term
from January 1, 2011 to December 31, 2011, and added an early termination clause.
At a regular meeting of July 7, 2010, the City Council adopted Resolution No. 2010-108 and the
Abrams B Non-Profit Corporation Board adopted Resolution No. 2010-1 (NPC) which approved
Amendment No. 2 to the Management Agreement. Requested by the Finance Director,
Amendment No. 2 amended the audit requirements to permit a two (2) year audit instead of an
annual audit, resulting in cost savings.
At a special meeting on December 14, 2010, the City Council adopted Resolution No. 2010-199
and the Abrams B Non-Profit Corporation Board adopted Resolution No. 2010-05 (NPC) which
approved Amendment No. 3 to the Management Agreement. Amendment No. 3 exercised the
option provided in Amendment No. 1 and extended the term of the Agreement from December
31, 2010 to December 31, 2011.
At a regular meeting of February 15, 2011, the City Council adopted Resolution No. 2011-27
approved Amendment No. 4 to the Management Agreement. Amendment No. 4 deleted the
Incentive Fee clause, amended the Capital Improvements Management Fee, revised record
keeping and monthly reporting requirements, defined affordable rents, revised the requirements
for bank accounts and their signatories, updated the priority preferences for resident selection,
and amended the Grievance Procedure.
At a regular meeting of December 4, 2011, the City Council adopted Resolution No. 2011- 206
approved Amendment No. 5 to the Management Agreement. Amendment No. 5 extended the
term of the Agreement from December 31, 2011 to December 31, 2012.
At a regular meeting of December 4, 2012, the City Council adopted Resolution No. 2012-184
and the Abrams B Non-Profit Corporation Boar adopted Resolution No. 2012-15 (NPC) which
approved Amendment No.6 to the Management Agreement. Amendment No. 6 extended the
At a regular meeting of December 17, 2013, the City Council adopted Resolution No. 2013-191
approved Amendment No. 7 to the Management Agreement. Amendment No. 7 extended the
11b Pg. 2
The current Management Agreement terminates on December 31, 2014. As proposed,
Amendment No. 8 would extend the term of the Management Agreement to December 31, 2015
(“EXHIBIT A”).
Item 10 in the Scope of Services of the Abrams Park Management Agreement states that
Alliance is required to make periodic reports to the City “through regular contact and formal
meetings as to the current status of all operations so that the Agent City may make proper and
timely decisions on all strategic matters.”
ANALYSIS:
The proposed Amendment No. 8 would extend the term from December 31, 2014 to December
31, 2015. If the term is not extended beyond December 31, 2014, there will be no legal entity
empowered to collect rents and administer the property on and after January 1, 2015. No other
change to the Management Agreement, as amended, would be made by Amendment No. 8.
While Item 10 of the Scope of Services of the Abrams Park Management Agreement states that
the City may review Alliance’s performance at any time, the City Council may direct staff to
conduct a performance review within a specific timeframe.
FISCAL IMPACT:
Should the City Council and Abrams B Non-Profit Corporation Board approve the request,
Amendment No. 8 does not change the compensation to Alliance under the Management
Agreement and rental revenue would continue to be collected on and after January 1, 2015 until
December 31, 2015.
CONCLUSION:
This request is submitted for City Council and Non-Profit Corporation Board consideration and
possible action.
_________________________________
Layne P. Long
City Manager
City of Marina
11b Pg. 3
RESOLUTION NO. 2014A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARINA APPROVING
AMENDMENT NO. 8 TO MANAGEMENT AGREEMENT BETWEEN THE CITY OF
MARINA, CITY OF MARINA ABRAMS B NON-PROFIT CORPORATION AND
ALLIANCE COMMUNITIES INC., FOR ABRAMS B HOUSING AREA, SUBJECT TO
FINAL APPROVAL BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION,
AUTHORIZING CITY MANAGER TO EXECUTE AMENDMENT NO. 8 TO
MANAGEMENT AGREEMENT ON BEHALF OF THE CITY SUBJECT TO FINAL
REVIEW AND APPROVAL BY THE CITY ATTORNEY
WHEREAS, at a regular meeting of October 16, 2007, the City Council adopted Resolution No.
2007-249 and the Abrams B Non-Profit Corporation Board adopted Resolution No. 2007-01
(NPC) approving the Management Agreement with Alliance Residential LLC (which became
Alliance Communities Inc. in May 2009) for management of the Abrams B housing area, and the
term of the Agreement was for three (3) years, from January 1, 2008 to December 31, 2011, and;
WHEREAS, on December 27, 2007, Amendment No. 1 to the Management Agreement for
Abrams Park was executed by the City Manager on behalf of the City and the Executive Officer
on behalf of the Abrams B Non-Profit Corporation and the Amendment modified the term of the
Agreement to two (2) years to December 31, 2010, with an option for extension of an additional
one-year term from January 1, 2011 to December 31, 2011, and added an early termination
clause, and;
WHEREAS, at a regular meeting of July 7, 2010, the City Council adopted Resolution No. 2010199 and the Abrams B Non-Profit Corporation Board adopted Resolution No. 2010-1 (NPC)
which approved Amendment No. 2 to the Management Agreement for Abrams B, which was
requested by the Finance Director to amend the audit requirements to permit a two (2) year audit
instead of an annual audit, resulting in cost savings, and;
WHEREAS, at a special meeting on December 14, 2010, the City Council adopted Resolution
No. 2010-199 and the Abrams B Non-Profit Corporation Board adopted Resolution No. 2010-05
(NPC) which approved Amendment No. 3 to the Management Agreement, which exercised the
option provided by Amendment No. 1 and extended the term of the Agreement from January 1,
2011 to December 31, 2011, and;
WHEREAS, at a regular meeting of February 15, 2011, the City Council adopted Resolution No.
(NPC) which approved Amendment No. 4 to the Management Agreement, which deleted the
amended the Grievance Procedure, and;
WHEREAS, at a regular meeting of December 6, 2011, the City Council adopted Resolution No.
(NPC) which approved Amendment No. 5 to the Management Agreement, which extended the
term of the Management Agreement from January 1, 2012 to December 31, 2012, and;
2012-184 and the Abrams B Non-Profit Corporation Boar adopted Resolution No. 2012-15
(NPC) which approved Amendment No.6 to the Management Agreement. Amendment No. 6
extended the term of the Agreement from December 31, 2012 to December 31, 2013.
11b Pg. 4
WHEREAS, at a regular meeting of December 17, 2013, the City Council adopted Resolution
(NPC) which approved Amendment No. 7 to the Management Agreement. Amendment No. 7
WHEREAS, pursuant to the Assignment Agreement, the Management Agreement may not be
terminated or amended without the prior written consent of the Federal National Mortgage
Association (“Fannie Mae”), and;
WHEREAS, Item 10 in the Scope of Services of the Abrams Park Management Agreement
states that Alliance is required to make periodic reports to the City “through regular contact and
formal meetings as to the current status of all operations so that the Agent City may make proper
and timely decisions on all strategic matters,” and while Item 10 of the Scope of Services of the
Abrams Park Management Agreement states that the City may review Alliance’s performance at
any time, the City Council may direct staff to conduct a performance review within a specific
timeframe, and;
WHEREAS, Amendment No. 8 does not change the compensation to Alliance under the
Management Agreement and rental revenue would continue to be collected on and after January
1, 2015 until December 31, 2015.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Marina does
hereby:
1. Approve Amendment No. 8 to the Management Agreement between the City of
Marina, the City of Marina Abrams B Non-Profit Corporation and Alliance
Communities Inc. for Abrams B Housing Area (Exhibit A) extending the term of the
Management Agreement to December 31, 2014, subject to final approval by the
Federal National Mortgage Association, and;
2. Authorize the City Manager to execute Amendment No. 8 to the Management
Agreement for Abrams B on behalf of the City, subject to final review and approval
by Fannie Mae and the City Attorney.
PASSED AND ADOPTED by the City Council at a regular meeting duly held on the 16th day of
December, 2014, by the following vote:
ATTEST:
Anita Flanagan, Deputy Clerk
11b Pg. 5
RESOLUTION NO. 2014- (NPC)
A RESOLUTION OF THE ABRAMS B NON-PROFIT CORPORATION APPROVING
AMENDMENT NO. 8 TO MANAGEMENT AGREEMENT BETWEEN CITY OF
MARINA, CITY OF MARINA ABRAMS B NON-PROFIT CORPORATION AND
ALLIANCE COMMUNITIES INC., FOR ABRAMS B HOUSING AREA, SUBJECT TO
FINAL APPROVAL BY THE FDERAL NATIONAL MORTGAGE ASSOCIATION,
AUTHORIZING EXECUTIVE DIRECTOR TO EXECUTE AMENDMENT NO. 6 TO
MANAGEMENT AGREEMENT ON BEHALF OF THE NON-PROFIT CORPORATION
SUBJECT TO FINAL REVIEW AND APPROVAL BY THE CITY ATTORNEY
ACTING AS CORPORATION LEGAL COUNSEL
WHEREAS, the Abrams B Non-Profit Corporation (“Non-Profit Corporation”) is the lessee of the
Abrams B housing area, and;
WHEREAS, at the time of the Abrams B financing in 2006, the Non-Profit Corporation and Mid
Peninsula Housing Coalition, the Abrams B Property management company at that time, were
required to execute an Assignment of Management Agreement with the Federal National
Mortgage Association [hereinafter referred to as ‘Fannie Mae’] (“Assignment Agreement”), the
credit enhancer whereby the Corporation consented to the assignment of the Management
Agreement to Fannie Mae in the event of a default on the loan, and;
WHEREAS, at a regular meeting of October 16, 2007, the City Council adopted Resolution No.
(NPC) approving the Management Agreement with Alliance Residential LLC (which became
Alliance Communities Inc. in May 2009) for management of the Abrams B housing area, and the
term of the Agreement was for three (3) years, from January 1, 2008 to December 31, 2011, and;
WHEREAS, on December 27, 2007, Amendment No. 1 to the Management Agreement for
Abrams Park was executed by the City Manager on behalf of the City and the Executive Officer
on behalf of the Abrams B Non-Profit Corporation and the Amendment modified the term of the
Agreement to two (2) years to December 31, 2010, with an option for extension of an additional
one-year term, and added an early termination clause, and;
WHEREAS, at a regular meeting of July 7, 2010, the City Council adopted Resolution No. 2010199 and the Abrams B Non-Profit Corporation Board adopted Resolution No. 2010-1 (NPC)
which approved Amendment No. 2 to the Management Agreement for Abrams B, which was
requested by the Finance Director to amend the audit requirements to permit a two (2) year audit
instead of an annual audit, resulting in cost savings, and;
WHEREAS, at a special meeting on December 14, 2010, the City Council adopted Resolution
(NPC) which approved Amendment No. 3 to the Management Agreement, which exercised the
option provided by Amendment No. 1 and extended the term of the Agreement from January 1,
2011 to December 31, 2011, and;
WHEREAS, at a regular meeting of February 15, 2011, the City Council adopted Resolution No.
(NPC) which approved Amendment No. 4 to the Management Agreement, which deleted the
amended the Grievance Procedure, and;
11b Pg. 6
Resolution No. 2014- (NPC)
Page Two
2011- 206 and the Abrams B Non-Profit Corporation Board adopted Resolution No. 2011-10(
NPC) which approved Amendment No. 5 to the Management Agreement, which extended the
term of the Management Agreement to December 31, 2012, and;
2012-184 and the Abrams B Non-Profit Corporation Boar adopted Resolution No. 2012-15
(NPC) which approved Amendment No.6 to the Management Agreement. Amendment No. 6
WHEREAS, at a regular meeting of December 17, 2013, the City Council adopted Resolution
(NPC) which approved Amendment No. 7 to the Management Agreement. Amendment No. 7
WHEREAS, the current Management Agreement terminates on December 31, 2014, and;
WHEREAS, pursuant to the Assignment Agreement, the Management Agreement may not be
terminated or amended without the prior written consent of the Federal National Mortgage
Association, and;
WHEREAS, Item 10 in the Scope of Services of the Abrams Park Management Agreement
states that Alliance is required to make periodic reports to the City “through regular contact and
formal meetings as to the current status of all operations so that the Agent City may make proper
and timely decisions on all strategic matters,” and while Item 10 of the Scope of Services of the
Abrams Park Management Agreement states that the City may review Alliance’s performance at
any time, the City Council may direct staff to conduct a performance review within a specific
timeframe, and;
WHEREAS, Amendment No. 8 does not change the compensation to Alliance under the
Management Agreement and rental revenue would continue to be collected on and after January
1, 2015 until December 31, 2015.
NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the City of Marina
Abrams B Non-Profit Corporation does hereby:
1.
Approve Amendment No. 8 to the Management Agreement with Alliance
Communities Inc. for Abrams B Housing Area (Exhibit A) extending the term of
the management Agreement to December 31, 2015, subject to final approval by
the Federal National Mortgage Association, and;
2.
Authorize the Executive Director to execute Amendment No. 8 to the
Management Agreement for Abrams B and the Assignment of Management
Agreement on behalf of the Corporation subject to final review and approval by
the Non-Profit Corporation’s Legal Counsel.
11b Pg. 7
Resolution No. 2014- (NPC)
Page Three
PASSED AND ADOPTED by the Board of Directors of the City of Marina Abrams B NonProfit Corporation at a regular meeting duly held on the 16th day of December, 2014, by the
following vote:
AYES, BOARD MEMBERS:
NOES, BOARD MEMBERS:
ABSENT, BOARD MEMBERS:
ABSTAIN, BOARD MEMBERS:
Bruce C. Delgado, Chair
ATTEST:
Anita Flanagan, Deputy Board Secretary
11b Pg. 8
EXHIBIT A
AMENDMENT NO. 8 TO MANAGEMENT AGREEMENT
FOR ABRAMS B HOUSING AREA
This Amendment No. 8 ("Amendment No. 8") to the Management Agreement
by and between the City of Marina, a California charter city, hereinafter referred to as "City,"
and the City of Marina Abrams B Non-Profit Corporation, a California nonprofit public
benefit corporation. City and City of Marina Abrams B Non-Profit Corporation are herein
collectively referred to as "Owners," and Alliance Communities Inc., a Delaware
corporation, hereinafter referred to as "Operator" is made and entered into as of the
day of
December, 2014. Only the numbered paragraph of said Agreement which is being amended or
deleted is set forth in this Amendment.
Recitals
A. On October 16, 2007, the Owners entered into an Agreement ("Agreement") with
Operator for services related to management of the property commonly known as Abrams B
Housing Area consisting of one hundred ninety four (194) units ("Units") located in
Marina, CA 93933 (the "Property").
B. On December 24, 2007, Owners and Operator entered into Amendment No. 1 to the
Management Agreement modifying the term of the Agreement to two (2) years, to
December 31, 2010, with an option for extension of an additional one-year term, and added
an early termination clause.
C. On July 7, 2010, the Owners and Operator entered into Amendment No. 2 to the
Management Agreement amending the audit requirements to permit a two (2) year audit
instead of an annual audit.
D. On December 14, 2010, the Owners and Operator entered into Amendment No. 3 to
the Management Agreement exercising the option provided by Amendment No. 1 and
extending the term of the Agreement to December 31, 2011.
E. On February 15, 2011, the Owners and Operator entered into Amendment No. 4 to
the Management Agreement deleting the Incentive Fee clause, amended the Capital
Improvements Management Fee, revising record keeping and monthly reporting
requirements, defining affordable rents, revising the requirements for bank accounts and
signatories, updating the priority preferences for resident selection, and amended the
Grievance Procedure.
F. On December 4, 2011, Owners and Operator entered into Amendment No. 5 to the
Management Agreement extending the term of the Management Agreement to
December 31, 2012.
G. On December 1 7 , 2012, Owners and Operator entered into Amendment No. 6 to the
December 31, 2013.
H. On December 1 7 , 2013, Owners and Operator entered into Amendment No. 7 to the
December 31, 2014.
11b Pg. 9
Terms and
Conditions
In consideration of the mutual promised contained herein, Owners and Operator agree
that the terms and conditions set forth herein are incorporated into the Agreement.
1. Section 2.1. Term is amended to read in its entirety as follows:
"The term of this Agreement shall commence on January 1, 2008, and shall continue to and
including December 31, 2015 unless terminated earlier as provided herein or extended in
writing by mutual agreement thereto."
All other provisions of the Agreement shall remain in full force and effect.
This Amendment may be signed in counterparts, each of which shall constitute an original.
[Signature page follows]
11b Pg. 10
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and
year first above written.
CITY OF MARINA AND
CITY OF MARINA ABRAMS B NON-PROFIT CORPORATION “OWNERS”
By: _______________________________
Layne P. Long, City Manager, Executive Officer
Date: ________________, 2014
Attest: (Pursuant to Resolution No. 2014- and Resolution No. 2014- (NPC)
By:
Anita Sharp, Deputy City Clerk/Board Secretary
Approved as to Form
_____________________
City Attorney/Legal Counsel
Approved:
Federal National Mortgage Association
By: Citibank, N.A., as Servicer
BY: ___________________________
Name: _________________________
“OPERATOR”:
ALLIANCE COMMUNITIES INC.
By:
__________________________________________
Name: Brad Cribbins
Title: Chief Operating Officer
Date: __________, 2014
11b Pg. 11

December 16, 2014

Transcription

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