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UM, THE FINANCE COMMITTEE OF THE MARINE ADVISORY COMMISSION IS CALLED TO ORDER FOR THE THURSDAY, JANUARY 8TH MEETING AT 1 45.
I WOULD LIKE TO, UM, UH, CALL MEETING TO ORDER, AND WE'D LIKE TO START WITH A ROLL CALL, PLEASE.
WELCOME TO THOSE OF YOU IN THE AUDIENCE, MEMBERS OF THE PUBLIC AND OTHER MARIN, UH, ADVISORY COMMISSION PARK MARINE SUPPORT STAFF.
UM, I'LL START THE REGULAR AGENDA, WHICH IS TO A RECOMMENDATION TO APPROVE THE MINUTES FOR THE FINANCE COMMITTEE MEETING OF THURSDAY, OCTOBER 9TH, 2025.
UH, I WILL TAKE, UH, THAT AS A MOTION TO APPROVE THOSE IN SUPPORT.
MOVING ON TO OUR REGULAR AGENDA ITEM NUMBER TWO, WHICH IS A RECOMMENDATION.
OH, DO WE HAVE ANY COMMENTS FROM THE SAME? NONE.
MOVING ON TO AGENDA ITEM NUMBER TWO, RECOMMENDATION TO RECEIVE IN FIVE FILE THE MARINE BUREAU QUARTERLY EXPENDITURE AND REVENUE FINANCIAL REPORTING.
I'D LIKE TO WELCOME PORSCHE AND COULD YOU REMIND THE PUBLIC PORSCHE OF YOUR POSITION AND YOUR TITLE WITH, UM,
TODAY WE ARE GOING OVER THE FISCAL YEAR 26, FIRST QUARTER FINANCIAL UPDATE OF THE MARINA FUND, ALSO KNOWN AS 7,700.
I'LL GIVE A QUICK OVERVIEW OF WHAT'S INCLUDED IN THE PACKET.
THAT'S WHERE WE'RE GOING TO FOCUS ON TODAY.
BUT THE SUBSEQUENT PAGES ARE THE FINANCIAL REPORTS THAT FEED THE NUMBERS INTO THE SUMMARY.
AND AT THE BOTTOM, I'VE LETTERED THEM ALL.
THE SUMMARY IS A B IS ALL REVENUES RECEIVED INTO THE MARINE FUND.
C IS A MARINE BUREAU EXPENSE BREAKDOWN FOR ALL COSTS THAT WERE, UM, THAT WERE, UM, CHARGED TO THE ACTUAL MARINE BUREAU, NOT JUST THE FUND, JUST SPECIFICALLY THE MARINE BUREAU.
THEN NEXT WE HAVE D, WHICH IS AN OVERVIEW OF ALL REVENUE AND EXPENSES RECEIVED INTO THE MARINA FUND AS A WHOLE.
AND FINALLY WE HAVE D, WHICH IS A BREAKDOWN OF DEPARTMENT 70 DEBT SERVICE SLASH FINANCIAL COSTS CHARGED TO THE MARINA FUND.
SO FROM THERE WE'RE GOING TO HEAD BACK TO THE SUMMARY PAGE ON PAGE ONE AND THE COLUMNS.
THE FIRST TWO COLUMNS ARE FISCAL YEAR 23 AND FISCAL YEAR 24 ACTUAL.
AND THE NEXT TWO COLUMNS ARE BOTH FOR FISCAL YEAR 25.
ALSO, THIS INFORMATION IS EXAGGERATED AS OF JANUARY THE FIFTH, 2026.
NOW THERE ARE TWO COLUMNS FOR FISCAL YEAR 25, 1 WITHOUT THE BOND REFINANCING TRANSACTIONS AND ONE WITH THE BOND REFINANCING TRANSACTIONS.
SO YOU CAN SEE THE ACTUAL INPUT, I MEAN THE ACTUAL, UH, COST AND REVENUE.
AND NEXT COLUMN WE HAVE THE FISCAL YEAR, 26 YEAR TO DATE ACTUALS.
AND LAST BUT NOT LEAST, WE HAVE THE FISCAL YEAR 26 ETC, OUR FORECAST FOR THE END OF THIS FISCAL YEAR.
FROM HERE, I AM JUST GOING TO START AT THE TOP ROW AND WORK OUR WAY DOWN.
MOST OF THE COLUMNS, IN MOST OF THE NUMBERS IN BOTH OF THE FISCAL YEAR 25 ACTUALS ARE THE SAME.
THE ONLY EXCEPTIONS ARE THE OTHER REVENUE AND OTHER EXPENSES, UH, SECTIONS.
SO FOR, UH, SLIP REVENUE FOR ALL THREE MARINAS, UH, WE RECEIVED $20 MILLION, $208,301.
AND THEN FOR RENTALS AND CONCESSIONS, 2 MILLION 211, 480
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$1.OTHER REVENUE, 2 MILLION 594, 600 $9, UH, FOR A GRAND TOTAL OF, WELL, YOU KNOW WHAT, I'LL TAKE IT RIGHT HERE.
SO IF WE WERE TO, IF THIS WAS ANY OTHER YEAR, WE DIDN'T DO ANY BOND REFINANCING, THIS IS WHAT OUR NUMBER WOULD BE, IT WOULD BE THE 2.5 MM-HMM
BUT WITH THE BOND REFINANCING, WE TOOK IN ADDITIONAL REVENUES, WHICH TOOK US TO THE $96 MILLION, 96.7.
SO THE TOTAL GROSS OF REVENUE WITHOUT THE BOND REFINANCING IS THE $33,014,091.
WITH THE BOND REFINANCING IS THE $127,188,827.
NOW WE'LL MOVE ON TO THE EXPENSES SIDE.
THAT'S PRETTY MUCH THE SAME THING.
UH, WITH THE TWO COLUMNS, THE EXPENSES ARE PRETTY MUCH THE SAME EXCEPT IN THE OTHER EXPENSES.
AND AS YOU CAN SEE, FOR MAINTENANCE IT WAS 5.67 MILLION.
FOR PARKS AND RECS OPERATION, IT WAS 7.9 MILLION.
UH, MARINE SAFETY SLASH LIFEGUARD, 3.2 MILLION, UH, MARINE PATROL POLICE 3.4.
AND OTHER EXPENSES IS WHERE THE NUMBERS SWITCH UP AGAIN, UH, WITHOUT BOND REFINANCING IS 3.2 MILLION.
WITH THE EXPENSES ADDED IN, IT'S FOR BOND REFINANCING, IT IS 95.5 MILLION.
AND THEN WE HAVE AT THE VERY BOTTOM, OUR CAPITAL IMPROVEMENT PROJECTS, WHICH WE BACKED OUT.
IT'S IN THAT, UM, I FIRST PUT IT IN THE 3.2 MILLION NUMBER AND THEN BACKED IT OUT.
SO IT COULD BE C UH, TOTAL EXPENSES WITHOUT THE REFINANCING IS THE $22,434,455.
WITH THE REFINANCING, IT IS $114,695,719.
THAT LEADS US TO NET REVENUES OF WITHOUT FUND FINANCING IS REFINANCING IS THE $10,579,936.
WITH THE REFINANCING IT'S $12,493,108.
THEN THE LAST SECTION IS THE DEBT SERVICE.
WE PAID THE DEBT SERVICE AND WITH, IF WE WOULD'VE JUST SAID AT THE REGULAR WAY, AS WE DO A YEAR AFTER YEAR, OUR DEBT SERVICE COVERAGE WILL BE 1.41 WITH THE NET REVENUE AFTER DEBT SERVICE PAYMENT BEING THE $3,076,974.
WITH THE BOND REFINANCING TRANSACTIONS AFTER PAYING THE DEBT SERVICE, OUR DEBT SERVICE COVERAGE RATE IS 1.67 WITH THE NET REVENUE OF $4,990,146.
THEN WE MOVE ON TO THE FISCAL YEAR, 26 YEAR TO DATE ACTUAL SLASH ETS.
WE ARE CURRENTLY ON TRACK TO MEETING OUR DEBT SERVICE, UH, OBLIGATION BY THE END OF THE YEAR, BUT IT'S ONLY BEEN THE FIRST QUARTER.
BUT RIGHT NOW WE'RE LOOKING AT A 1.28 WITH THE NET REVENUE AFTER DEBT SERVICE PAYMENT.
ARE THERE ANY QUESTIONS? WE'RE DOING OKAY.
I MEAN, IT'S BETTER THAN I THOUGHT IT.
AND, UH, THIS GOES TO A GENERAL QUESTION OF TIDELANDS FUNDS AND HOW IT AFFECTS CONSTRUC MARINE AND THE NOTION OF LEN BEING USED TO FINANCE THE NEW AMPHITHEATER.
IS THAT GONNA BE COMING PART OF, WILL THAT BECOME PART OF OUR CAPITAL IMPROVEMENT PROJECT? SO, SO, UH, COUNCIL, JUST THE OTHER NIGHT, THEY, THEY APPROVED, UH, ADDITIONAL FUNDING YES.
UH, BUT THEY'RE NOT TAKING ANY, ANY FUNDS AWAY FROM ANY OTHER PLACE.
WHAT THEY'RE DOING IS THEY'RE USING FUNDS AVAILABLE IN THE TIDELANDS WITH THE CAVEAT THAT THOSE FUNDS WILL BE PAID BACK, PAID BACK WITH THE, THE REVENUE FROM THE, THE, UH, THE AMPHITHEATER, WHICH IS GONNA BE OPENING UP IN AUGUST.
SO, UH, THE RETURN ON INVESTMENT THAT
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THE CITY SEES FROM THAT FACILITY, UH, WILL THE, THE EXPECTATION IS MORE THAN COVER ANY COSTS THAT ARE BEING CONTRIBUTED FROM THE THAILAND FUND TO IT.ARE WE GOING TO SEE THAT KIND OF AN ACCOUNTING HERE? I MEAN, I, I GUESS THE QUESTION IS, DOES IT BECOME PART OF THE, UM, THAILANDS FUNDS THAT WE ARE LOOKING AT WITH RESPECT TO, UM, PARKS, REC AND MARINE AND THE MARINE BUREAU? NO, UH, YOU LOOK, UH, AT PORSCHE'S, UH, SUMMARY, YOU HAVE THE OTHER LINE, UM, THAT INCORPORAT INCORPORATES, UH, UH, ECONOMIC DEVELOPMENT.
UH, UH, WHICH LINE ARE YOU REFERRING? UH, IF YOU GO INTO EXPENSES AND OTHER REVENUE, OR IF YOU GO UNDER GROSS REVENUES, YOU HAVE OTHER REVENUE AND THEN YOU HAVE TOTAL GROSS REVENUE, YOU HAVE OTHER, UM, THOSE ARE OTHER DEPARTMENTS.
SO ECONOMIC DEVELOPMENT, UH, SPECIAL EVENTS, STUFF LIKE THAT.
BUT I DO NOT BELIEVE THAT AMPHITHEATER FUNDING OR AMPHITHEATER REVENUE WILL BE PARKED IN, IN OUR AVAILABLE PURVIEW.
WITH, WITH TIDELANDS, THE MADAM CHAIR WITH TIDELANDS, UH, AND THEN TAKING THE DOLLARS OUT OF TIDELANDS TO CORRECT THIS WILL WE BE ASSURED ALL OUR DOLLARS FOR THE MARINE DEPARTMENT.
SO IN OTHER WORDS, IT DOESN'T AFFECT US 'CAUSE TIDELANDS AFFECTS MANY OTHER GROUPS.
I WANT TO ASSURE THAT THE MARINE DEPARTMENT, IT DOESN'T AFFECT US IN ANY WAY, SHAPE, OR FORM.
SO WE ARE PART OF THE TIDE LETS FUND.
WE ARE A SUB FUND OF THE TIDE FUND.
BUT PART OF THE TIDE, LETS FUND IN GENERAL.
SO, UH, PRIOR TO THE BOND REFINANCING, UH, RE NET REVENUE AFTER ALL EXPENSES OF THE MARINA WOULD STAY IN THE MARINA.
HOWEVER, WITH THE NEW BOND REFINANCING, THAT CAVEAT, THAT COVENANT OF THE BOND REQUIREMENTS WAS REMOVED.
SO, UH, FUNDS CAN BE USED ELSEWHERE, BUT MY UNDERSTANDING IS THAT HAS TO BE AT THE EXPRESS DIRECTION OF THE CITY MANAGER AND THE CITY COUNCIL.
SO, UH, IT CAN'T JUST BE UTILIZED WITHOUT PROPER.
THE CAVEAT I USE IS, UH, MANY YEARS AGO, GOVERNOR SCHWARZENEGGER TOOK OUT $2.6 BILLION OUT OF THE TRANSPORTATION FUND TO BE REFUNDED, NEVER GOT ANY FUNDING.
AND THAT'S WHAT WORRIES ME WITH THIS MADAM CHAIR IS DOLLARS THAT ARE TAKEN OUT OF TITLE FUND AND SAYS, HEY, YEAH, BUT WE'RE GONNA PAY HIM BACK BECAUSE WE'RE GONNA BE MAKING MONEY ON THAT.
THERE'S NO GUARANTEE WE'RE GONNA MAKE MONEY ON IT.
WELL, AND THAT, THAT'S WHAT WORRIES ME IS THOSE DOLLARS GOING AWAY AND THEN WE'RE ALL GOING TO BE, OR EXCUSE ME, YOU'RE GOING TO BE, UH, NOT JUST A LEANER BUDGET, BUT IT ALL COMES BACK TO EFFECT.
WELL, HOW DO WE MAKE THAT MONEY BACK? IT ALSO GOES TO INCREASES, WHICH AGAIN, WE REPRESENT THE, THE CITIZENSHIP AND THE BOAT OWNERS, THINGS OF THAT NATURE.
I'M JUST PUTTING IT ON RECORD THAT THAT'S ONE OF MY WORRIES, UH, GOING FORWARD.
SO, SO THE AMPHITHEATER, IF, IF WE COULD DIRECT IT TO THAT, THE AMPHITHEATER, THE AMPHITHEATER IS IN THE TIDES.
SO IT IS A COST OF THE S MONEY.
MONEY CANNOT BE TAKEN OUT OF THE TIDELANDS AND USED ELSEWHERE IN THE CITY.
IT'S, IT'S STATE LAW THAT ANY REVENUE GENERATED IN THE TIDES MUST STAY IN THE TITLES.
NOW, WHAT IT CAN BE USED FOR IN THE DIAMONDS IS UP TO, UH, THE CITY COUNCIL, THE, UH, THE MAYOR, THE CITY MANAGER, AND YOU KNOW, UH, INPUT FROM THE COMMUNITY.
UM, BUT THE CITY AND AT THE DIRECTION OF THE MAYOR, THE CITY MANAGER AND THE CITY COUNCIL IS TRYING TO FIND AND NEEDS TO FIND NEW AVENUES OF REVENUE GENERATION THAT'S NOT SOLELY CONSISTENT ON OIL.
AND ONE OF THOSE THINGS IS ENTERTAINMENT AND, AND MUSIC AND SPORTS, UH, THAT THE CITY'S REALLY LEANING INTO.
ARE WE TAKING A A RISK? ABSOLUTELY.
BUT THERE'S RISK IN ANY SORT OF NEW ENDEAVOR.
BUT IF YOU LOOK AT THE MARKET FOR MUSIC IN THE ORANGE COUNTY, LA COUNTY BETWEEN, LET'S CALL IT IRVINE TO TWO VENTURA, THE AMPHITHEATER IS WELL POSITIONED TO BE A VERY, VERY, VERY COMPETITIVE AND VERY SUCCESSFUL COMPLEX.
UM, IT'S NOT AS BIG AS LIKE SAY SOFI OR INTUIT, UM, THOSE PLACES, BUT IT'S NOT ONE OF THESE SMALL LITTLE LIKE HOUSE OF BLUES OR ANYTHING LIKE THAT.
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THE MARKET BETWEEN 10 AND 15,000 SEATS THAT IT'S NOT WELL REPRESENTED IN THE LA AREA MARKET.SO THE CITY IS LOOKING TO, TO MAXIMIZE ON THAT, IS BRINGING IN HIGH QUALITY ENTERTAINMENT AT A LOCATION THAT IS IN THAT MIDPOINT OF, OF BETWEEN SMALL AND WATCH.
UM, THANK YOU FOR THE EXPLANATION.
UM, I, I DO, I, AND I AM AWARE OF THE FACT THAT IT'S BASICALLY A LOAN FROM THE TITLES FUND IN ORDER TO GET THE STARTUP OF THE EMPATHY OF CONSTRUCTION AND ALL THE OTHER REQUIREMENTS TO OPEN ITS STORES.
AND THEN THE REVENUE FROM THE OPERATION OF THE AMPHITHEATER WILL GO BACK TO THE
UM, I, I'LL ALSO MAKE ANOTHER OBSERVATION IS THAT THERE ARE NO GENERAL FUNDS BEING USED FOR THIS PROJECT.
THE CITY DOESN'T HAVE ANY GENERAL FUNDS.
SO IT'S THE USE OF CAPITAL IN A WAY THAT IS, UM, YEAH, IT'S A
BUT MY WHOLE OBJECTIVE IN UNDERSTANDING THAT WAS WHETHER OR NOT WE WILL BE SEEING THOSE NUMBERS OR WILL ANY OF THAT BE REFLECTED IN THE, THE FINANCIAL STUFF AND APPARENTLY NOT.
'CAUSE IT MAY BE DRAWN FROM OTHER LEN FUNDS SUPPORTING OTHER ASPECTS OF THE CITY'S BUSINESS AND NOT
I I DON'T BELIEVE IT'LL BE PARKED IN OUR AVAILABLE, UM, UM, FINANCIAL MANAGEMENT ACCESS.
BUT IF IT IS, WE'LL DEFINITELY BRING IT TO YOU.
AND IF EVEN IF IT'S NOT, WE CAN, WE CAN ASK TO HAVE A PRESENTATION FROM THAT'S HIT 7,700 THEN.
AND I, ANOTHER QUESTION I HAVE WITH RESPECT TO THE AMPHITHEATER AS WE WERE MOVING AHEAD AND ONCE IT'S OPENED AND ESTABLISHED, IS WILL THERE BE AN EFFECT ON PARKS, REC AND MARINE MARINE BUREAU, UM, MAINTENANCE OF THE FACILITY OR, OR WILL IT COME OUT OF ANOTHER POT WITHIN THE LINS FUND THAT THE CITY CONTROL? JUST CURIOUS ABOUT THESE THINGS AND HOW, WHETHER OR NOT WE'LL BE SEEING ANY OF THAT.
IT'LL HAVE A, IT'LL HAVE A BIT OF EFFECT ON US FROM, FROM A LANDSCAPE, UH, OKAY.
UH, UH, HARRY BRIDGES PARK, UH, RIGHT ADJACENT TO IT.
UM, UH, UH, SOUTH SHORE LAUNCH RAMP PARKING AREA.
UM, BUT WE ALREADY HAVE, UH, STRUCTURALIZED BUDGET THAT WE'VE BEEN PROVIDED TO PAY FOR THE WORK THAT'S ALREADY, WE ALREADY TOOK ON THERE.
SO IF THERE IS, WE EXPECT IMPACT, BUT WE'RE NOT SURE WHAT IT'LL BE YET.
BUT IF THERE IS A MAJOR FINANCIAL IMPACT ON US, A BUDGETARY IMPACT, WE'LL ASK FOR, UH, BUDGET ENHANCEMENTS, UH, TO, TO MEET THAT MEETING.
MADAM CHAIR TWO, ALSO, THE GROUP THAT THEY'RE USING, I BELIEVE IS A IG UM, THAT, THAT RELATIONSHIP BETWEEN THE CITY AND THE GROUP THAT'S GOING TO BE HOSTING, UM, ALL THE CONCERTS AND THE FACILITIES THERE, I'M SURE THEY WILL HAVE SOMETHING IN THAT CONTRACT THAT ALSO HAS THEM, UH, KEEPING IT, UH, UPDATED AND CLEAN, I WOULD HOPE.
ARE THERE ANY QUESTIONS, UH, FOR POOR SHERIFF WITH RESPECT TO THE FINANCIAL REPORTS THAT WE'VE REVIEWED RIGHT NOW? NO, MA'AM.
UM, COMMISSIONER MCCRAY? NO, MA'AM.
UM, ARE THERE ANY MEMBERS OF THE PUBLIC WHO MIGHT HAVE A QUESTION, A COMMENT REGARDING THIS PRESENTATION? SEEING NONE, UM, I WOULD MOVE THAT WE APPROVE THE RECOMMENDATION TO, UH, RECEIPT AND FILED MARINE BUREAU FOR HER LOAN REVENUE AND EXPENDITURE FINANCIAL REPORT.
UM, THOSE, UH, THOSE
THANK YOU PIA, FOR COMING TODAY AND WE APPRECIATE YOUR TIME.
UM, THE NEXT ITEM ON OUR AGENDA IS PUBLIC COMMENT, AN OPPORTUNITY TO ADDRESS THE MARINE ADVISORY COMMISSION AND, UH, ON NON AGENDA ITEMS. AND EVERYONE IS LIMITED TO THREE MINUTES.
UH, I SEE NO MEMBER OF THE PUBLIC WITH ANY COMMENTS.
UH, WOULD THERE BE ANY ANNOUNCEMENTS FROM, UH, THE COMMISSIONERS TODAY BEFORE WE ADJOURN THE MEETING? I HAVE NOT.
SO WITH THAT, I WOULD THEN ADJOURN THE FINANCE COMMITTEE OF THE MARINE
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ADVISORY COMMISSION AT ROUGHLY 2:05 AM.