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HomeMy WebLinkAbout031907 - Regular MeetingTRES HERMANOS CONSERVATION AUTHORITY BOARD OF DIRECTORS MEETING Regular Meeting March 19, 2007 5:30 p.m. CHINO HILLS CITY HALL COUNCIL CHAMBERS 2001 GRAND AVENUE CHINO HILLS, CALIFORNIA MEMBERS: GWENN NORTON -PERRY, CHAIRMAN, Chino Hills BOB ZIRBES, VICE-CHAIRMAN, Diamond Bar CAROL HERRERA, Diamond Bar CURT HAGMAN, Chino Hills STEVE TYE, ALTERNATE, Diamond Bar ED GRAHAM, ALTERNATE, Chino Hills DAVE PEREZ, EX -OFFICIO, City of Industry DOUGLAS N. La BELLE, Executive Director, Chino Hills JIM DESTEFANO, Deputy Executive Director, Diamond Bar DEBORAH FOX, Authority Attorney 1. CALL TO ORDER: 5:30 p.m., Council Chambers, Chino Hills City Hall, 2001 Grand Ave., Chino Hills, CA PLEDGE OF ALLEGIANCE: Chairman Norton -Perry ROLL CALL: ELECTION OF OFFICERS: 2. PUBLIC COMMENTS: "Public Comments" is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Authority on Consent Calendar items or matters of interest to the public that are not already scheduled for consideration on this agenda. Although the Authority values your comments, pursuant to the Brown Act, the Authority generally cannot take any action on items not listed on the posted agenda. There is a five minute maximum time limit when addressing the Authority. 3. CONSENT CALENDAR: 3.1 Minutes of Adjourned Regular Meeting of August 28, 2006 — Approve as submitted. 3.2 Check Register — January 1, 2004 through January 31, 2007 — Receive and File. MARCH 19, 2007 PAGE 2 THCA 3.3 Treasurer's Statements for the months of June 2006 through January 2007- Receive and File. 3.4 Independent Audit Reports for FY Years ending June 30, 2004, 2005 and 2006 — Receive and File. 4. PUBLIC HEARINGS: None. 5. OLD BUSINESS: 5.1 Approval of By -Law Changes. Recommended Action: Approve. 5.2 Discussion of Proposed Request for Proposal (RFP). Recommended Action: Direct Staff as appropriate. 5.3 Discussion of City of Industry Property Update. Recommended Action: Direct Staff as necessary. 6. NEW BUSINESS: 6.1 Discussion of THCA Attorney Resignation — Recommended Action: 7. AUTHORITY MEMBER COMMENTS: 8. ADJOURNMENT: TRES HERMANOS CONSERVATION AUTHORITY STAFF REPORT Date: March 19, 2007 To: Chairman and Members of the Tres Hermanos Conservation Authority From: Executive Director Subject: Election of New Officers Recommendation: That the Authority elect new officers to serve from July 1, 2007 to June 30, 2009. Background/Analysis: The By -Laws of the Authority stipulate that election of officers be held at the Annual Meeting in odd -numbered years. The Annual Meeting is designated by the By -Laws as the regular March meeting of each year. The term to be served by the Chairman and Vice -Chairman shall be for two years. Terms shall run from July 1 st following the election until June 30thtwo years hence. Recommended by: Douglas N. La Belle, Executive Director Agenda No. 3.1 TRES HERMANOS CONSERVATION AUTHORITY BOARD OF DIRECTORS MEETING MINUTES OF ADJOURNED REGULAR MEETING OF AUGUST 28, 2006 1. CALL TO ORDER: Chairman Norton -Perry called the Tres Hermanos Conservation Authority Board of Directors meeting to order at 5:30 p.m, in the Chino Hills City Hall Council Chambers, 2001 Grand Avenue, Chino Hills, CA. ROLL CALL: Gwenn Norton -Perry, Chairman (CH); Bob Zirbes, Vice Chairman (D.B.); Curt Hagman (CH) and Carol Herrera (D.B.). Also present were: James DeStefano, DB City Manager and Helene Smockle, Legal Counsel. PLEDGE OF ALLEGIANCE: Vice Chairman Zirbes led the Pledge of Allegiance. 2, PUBLIC COMMENTS: Marianne Napoles, reporter with the Chino Champion asked about bylaws changes and why D.B. appeared to have a more permanent role. CM/DeStefano explained that the changes approved by the Board were intended to correct errors and solidify the responsibilities to permanently assigned secretary duties to the City of D.B., and treasurer's responsibility to Chino Hills and that the Chairperson would rotate bi-annually. 3. CONSENT CALENDAR: VC/Zirbes moved, M/Herrera seconded, to approve the Consent Calendar. Without objection, the motion was so ordered. 3.1 APPROVED MINUTES OF JULY 31, 2006 —As presented. 4. PUBLIC HEARINGS: None 5. OLD BUSINESS: 5.1 DISCUSSION OF PROPOSED REQUEST FOR PROPOSAL (RFP) CM/DeStefano presented a proposed Request for Proposal prepared by staff in accordance with the Board's direction. CM/DeStefano responded to M/Herrera that the City of Industry is holding firm on its position that for them an RFP would be premature at this time. If the Board wished to proceed, Industry would not object but that their AUGUST 28, 2006 PAGE 2 THCA involvement would not be warranted at this time. Staff included language requesting that respondents submit the proposal with costs broken out for the associated tasks so that the Board would be able to determine which of the items it would move forward with at the present time. During the six to eight week process of obtaining RFP's for consideration staff would continue to work with the property owners. In response to Chair/Norton-Perry, CM/DeStefano suggested the proposal be submitted to the Executive Director (Douglas LaBelle, Chino Hills) with an agreement that within two business days of receipt D.B. would receive a copy, for example. Chair/Norton-Perry pointed out that the document should refer to the Authority as recipient and not a city or cities. She also pointed out additional housekeeping items within the document. M/Herrera said she would not be in favor of a closed bid process and asked that the acreage under consideration be clarified in the document. Chair/Norton-Perry said the first page was missing a map and asked that surrounding uses also be clarified. Due to the number of proposed changes M/Herrera asked to review a revised copy of the RPF prior to it being sent out. General discussion of the document ensued. The Authority agreed to review the revised RFP document at the next meeting. Legal Counsel Smockle reported that reservoirs must be covered or serviced by a filtration plant prior to the water entering a potable system and there are no exemptions. Reservoirs can be used for recreation, irrigation, emergency firefighting and so forth. 6. NEW BUSINESS: None 7. AUTHORITY MEMBER COMMENTS: None Offered. 8. ADJOURNMENT: There being no further business to conduct, Chairman Norton -Perry adjourned the meeting at 6:20 p.m. to September 25, 2006. Tommye Cribbins, Authority Secretary AUGUST 28, 2006 PAGE 3 ATTEST: GWEN NORTON -PERRY, Chairman THCA TRES HERMANOS CONSERVATION AUTHORITY AGENDA NO. 3.2 STAFF REPORT Date: March 19, 2007 To: Chairman and Members of the Tres Hermanos Conservation Authority From: Treasurer Subject: Check Register Recommendation: That the Authority approve the attached check registers for the time period from January 1, 2004 through January 31, 2007. Background/Analysis: The attached check registers are listings of all payments made by the Authority during the time period noted above. Respectfully Submitted by: Judy Lancaster, Treasurer Attachments o N o o F y o m < o N 4 LL Q c m U o O o N N N N O Q W U U U U m Z U > > > > m o U > K tt tt O m > R' W W W W o N W N N N N J J J J J J Q J ¢ ¢ Q ¢ ¢ O < Q < Q < < < Q Q Q J IYL J J J J J O O 0 0 0 0 0 0 E z z V L U d m O O O D O U N M O (D t0 10 L Z, N 7 E w w C m m c m ti E Z omrn roan vo N o" c 0 O O O V O O O O CO 0 0 0 0 0 0 N K N N � z a a a o a a Z J J J J J J J 'yJ o UONU CDU > 0 0 0 0 0 0 N N N N N N W W x U x x x x Sz000000 WLL��LLLL `ry 0 000000 N O 0 0 0 0 0 0 E M M m m m M M Z m m ro w m m w N N N N N N N N N N N N N Q N O 0 0 0 0 0 0 O O O O O M O O a m v�> G L 0 O O 0 0 0 0 0 0 Q f2 O N N N N m � O C O O O C 1 N �0 0 0 Qa N y y O V O O = O O U W J K w ❑ ZO w w w w W W W W W W J J LL J J Q Q O Q Q Q Q d J J J J E z U L U m m ❑ N 0 4 0 0 0 0 0 0 0 U N O N N O N N O N W N U m C N N co m o�rnv N O O g 0 N q N C V W M ONi ONi tip V M E Q O_ N N N 6 75 d O O O � a � Z N � N U Q O � N O N r N N N (D N N C V O O O O O Q m C7 Z a a a a Z J J J J J o O U' U U J N > 0 0 0 0 N N N 0 W U x W w Z x 3 0000 �LL�LL 0 ooaa o 0 0 0 0 E E o ro � ro ro ro z w m M m m w m m M m N N N N N O Q N O N N N N O O O O O O O O O Or � G U C O O O O O O d Q m O O C d O G> N 0 o o O U '- U Q a LN 0 o w w ow U U z S J ° w w a n UJ UJ (7 t7 ' W W W U U U > > � G Q K W W W 0 o Q Q Q } } W W W LL LL J J J r m m E Z U L U m O o 0 0 0 0 N O O U d N N V N L N N O U 0 0 o r m N m m Em m m v w m m Q vi c 0 U N N m m m F7 E a � a z N � U C N N N N O (O m d N v a r r r m m 0 o co co v 0 0 N N 0 0 0 ON N ry (OSI S 2 N U' z J J J Z J J C Q Q Q J J O O 0 � 000 o U Z Z 0 00 0 a � Z m m w m co co ro m ro m � m m ro w m N N N N N aU O O O O O O O O O O m � _ ° N C O r r r r r a o 0 0 0 0 Gc m N o o N N [D [9 N N N r C � O C } N O O_ U a TRES HERMANOS CONSERVATION AUTHORITY AGENDA NO. 3.3 STAFF REPORT Date: March 19, 2007 To: Chairman and Members of the Tres Hermanos Conservation Authority From: Treasurer Subject: Receive and File — Treasurer's Reports for the Months of June 2006 through January 2007 Recommendation: That the Authority receives and files Treasurer's Reports for the months of June 2006 through January 2007. Background/Analysis: Pursuant to the Tres Hermanos Conservation Authority By -Laws, the Treasurer must verify and report in writing, at least quarterly, the amount of money he holds for the Authority, the amount of receipts since the last report, and the amount paid out since the last report. Attached for your information are the Treasurer's Reports for the months of June 2006 through January 2007. Respectfully Submitted by: Judy Lancaster, Treasurer/Auditor Attachments TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT June 30, 2006 I. Funds Held by Authority: Cash Bank of America - Checking Total Funds Held by Authority It. Cash Flow Transactions: Beginning Cash Balance Cash Fund 06/01/06 Receipts General Fund $ 63,170.56 $ III. Certifications: Market Cost Value $ 63,170.56 $ 63,170.56 63,170.56 63,170.56 Cash Disbursements Ending Cash Balance 06/30/06 $ 63,170.56 In accordance with the California Government Code, the Treasurer certifies that the investments reported in the Treasurer's Report comply with the Authority's Investment Policy and that sufficient liquidity, as well as sufficient anticipated revenues, are available to meet the Authority's budgeted expenditure requirements for the six months ending December 31, 2006. Judy Lancaster Treasurer TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT July 31, 2006 I. Funds Held by Authority: Cash Bank of America - Checking Total Funds Held by Authority II. Cash Flow Transactions: Beginning Cash Balance Fund 07/01/06 General Fund III. Certifications: $ 63,170.56 Cash Receipts Market Cost Value $ 63,170.56 $ 63,170.56 63,170.56 63,170.56 Cash Disbursements Ending Cash Balance 07/31/06 $ 63,170.56 In accordance with the California Government Code, the Treasurer certifies that the investments reported in the Treasurer's Report comply with the Authority's Investment Policy and that sufficient liquidity, as well as sufficient anticipated revenues, are available to meet the Authority's budgeted expenditure requirements for the six months ending January 31, 2007, Judy Lancaster Treasurer TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT August 31, 2006 I. Funds Held by Authority: Cash Bank of America - Checking Total Funds Held by Authority II. Cash Flow Transactions: Beginning Cash Balance Fund 08/01/06 General Fund III. Certifications: $ 63,170.56 Cash Receipts Market Cost Value $ 61,910.90 $ 61,910.90 61,910.90 61,910.90 Cash Disbursements (1,259.66) Ending Cash Balance 08/31/06 $ 61,910.90 In accordance with the California Government Code, the Treasurer certifies that the investments reported in the Treasurer's Report comply with the Authority's Investment Policy and that sufficient liquidity, as well as sufficient anticipated revenues, are available to meet the Authority's budgeted expenditure requirements for the six months ending February 28, 2007. Judy Lancaster Treasurer TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT January 31, 2007 I. Funds Held by Authority: Market Cost Value Cash Bank of America - Checking $ 79,843.65 $ 79,843.65 Total Funds Held by Authority 79,843.65 79,843.65 II. Cash Flow Transactions: Beginning Ending Cash Balance Cash Cash Cash Balance Fund 01/01/07 Receipts Disbursements 01/31/07 General Fund $ 79,843.65 $ $ 79,843.65 III. Certifications: In accordance with the California Government Code, the Treasurer certifies that the investments reported in the Treasurer's Report comply with the Authority's Investment Policy and that sufficient liquidity, as well as sufficient anticipated revenues, are available to meet the Authority's budgeted expenditure requirements for the six months ending July 31, 2007, Judy Lancaster Treasurer TRES HERMANOS CONSERVATION AUTHORITY STAFF REPORT AGENDA NO. 3.4 Date: March 19, 2007 To: Chairman and Members of the Tres Hermanos Conservation Authority From: Executive Director Subject: Receive and File — Independent Auditor's Report for Fiscal Years Ending June 30, 2004, June 30, 2005, and June 30, 2006 Recommendation: That the Authority receive and file the Independent Auditor's Report for the Fiscal Years ending June 30, 2004, June 30, 2005, and June 30, 2006. Background/Analysis: Pursuant to the Tres Hermanos Conservation Authority By -Laws, the Board shall arrange and provide for an audit of the accounts and records of the Authority by an auditor. Attached for your information is the Independent Auditor's Report for the Fiscal Years ending June 30, 2004, June 30, 2005, and June 30, 2006. Recommended by: Douglas N. La Belle, Executive Director Attachments Respectfully Submitted by: Judy Lancaster, Treasurer/Auditor TRES HERMANOS CONSERVATION AUTHORITY FINANCIAL STATEMENTS JUNE 30, 2004 TRES HERMANOS CONSERVATION AUTHORITY JUNE 30, 2004 AUTHORITY OFFICIALS Carol Herrera W.C. `Bill" Kruger Linda C. Lowry Robert Zirbes Gwenn Norton -Perry Douglas N. La Belle Dave Perez James De Stafano Debra Fox Robert Huff Gary Larson Chairman Vice -Chair Executive Director Alternate Director Alternate Director Secretary/Treasurer Ex -Officio Director Alternate Ex -Officio Director General Counsel Member Member TRES HERMANOS CONSERVATION AUTHORITY JUNE 30, 2004 TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT BASIC FINANCIAL STATEMENTS: Page Number Exhibit A - Statement of Net Assets and Governmental Fund Balance Sheet 2 Exhibit B - Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance 3 Exhibit C - Budgetary Comparison Statement C! Notes to Basic Financial Statements 5 e Brandon W. Burrows pDonald & I[S LLLan" L. Parker Michael K. Chu gha rd David E. Hale A PnOeswie lC.,.tbo LLP Donald G. Slater Richard K. Kikuchi Certified Public Accountants Retired Robert C. Lance 1910.1994 Richard C. Soil Fred J. Lunghard, Jr. 19P8-1999 Board of Directors Tres Hermanos Conservation Authority Diamond Bar. CA 91765 INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities and the general fund of the Tres Hermanos Conservation Authority for the year ended June 30, 2004, as listed in the table of contents. These financial statements are the responsibility of the management of the cities of Chino Hills and Diamond Bar, California. 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, and in accordance with Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the Notes to Financial Statements, the Authority has implemented a new financial reporting model, as required by the provisions of GASB Statement No. 34, "Basic Financial Statement - and Management's Discussion and Analysis -for State and Local Governments", as of June 30, 2004. The Authority has not presented a management's discussion and analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not required to be part of, the basic financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and the general fund of the Tres Hermanos Conservation Authority at June 30, 2004, and the changes in its financial position, thereon and the budgetary comparison for the general fund for the year then ended in conformity with the auditing standards generally accepted in the United States of America. March 16, 2005 75 Years 1-11 .z:#,fie, 1929 2004 of Excellence 203 N. Brea Blvd., Suite 203 • Brea, CA 92821-4056 • (714) 672-0022 • Fax (714) 672-0331 + www.lslcpas.com TRES HERMANOS CONSERVATION AUTHORITY Exhibit A STATEMENT OF NET ASSETS AND GOVERNMENTAL FUND BALANCE SHEET FOR THE YEAR ENDED JUNE 30, 2004 Assets: Cash and cash equivalents Total Assets Liabilities: Accounts payable Total Liabilities Fund Balances/Net Assets: Fund Balances: Undesignated: Total Fund Balances Total Liabilities and Fund Balances Net Assets: Unrestricted Total Net Assets General Fund Statement of Adjustments Net Assets $ 17,324 $ $ 17,324 $ 17,324 17,324 $ 1,847 1,847 1,847 1,847 15,477 (15,477) 15,477 (15,477) $ 17,324 See Notes to Financial Statements 2 15,477 15,477 $ 15,477 $ 15,477 TRES HERMANOS CONSERVATION AUTHORITY STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2004 Expenditures: General government Legal services Auditing services Other Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Fund Balances/Net Assets: Beginning of Year End of Year General Fund Adjustments $ 2,791 $ 1,800 79 4,670 (4,670 =7iTlilfi.1 Statement of $ 2,791 1,800 79 4,670 (4,670) 20,147 20,147 $ 15,477 $ $ 15,477 See Notes to Financial Statements 3 TRES HERMANOS CONSERVATION AUTHORITY Exhibit C BUDGETARY COMPARISON STATEMENT FOR THE YEAR ENDED JUNE 30, 2004 Charges to Appropriation (Outflow): General government: Legal services Auditing services Other Total Charges to Appropriations Budgetary Fund Balance, June 30 8,000 8,000 2,791 5,209 Variance with 1,000 1,800 (800) 7,700 Final Budget 79 Budget Amounts Actual Positive 4,670 Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 20,147 $ 20,147 $ 20,147 $ Resources (inflows): Payments from members 10,000 10,000 - (10,000) Amounts Available for Appropriation 30,147 30,147 20,147 (10,000) Charges to Appropriation (Outflow): General government: Legal services Auditing services Other Total Charges to Appropriations Budgetary Fund Balance, June 30 8,000 8,000 2,791 5,209 1,000 1,000 1,800 (800) 7,700 7,700 79 7,621 16,700 16,700 4,670 12,030 $ 13,447 $ 13,447 $ 15,477 $ 2,030 See Notes to Financial Statements 4 TRES HERMANOS CONSERVATION AUTHORITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2004 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of the Reporting Entity The Tres Hermanos Conservation Authority (Authority) is ajoint powers agency created by a joint powers agreement between the cities of Chino Hills and Diamond Bar, California, dated January 19, 1999. It was created pursuant to Articles 1 through 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, in accordance with the provisions of the Marks -Roos Local Bond Pooling Act of 1985. The purpose of the Authority is to create a public entityto coordinate the overall development and conservation of a large undeveloped area of real property known as the Tres Hermanos Ranch, by preparing studies, plans, environmental reviews and similar information and by making recommendations to its members to take such actions including, but not limited to, acquisition and eminent domain as are necessary to implement its recommendations. The Authority is a public entity separate and apart from each of the Cities. The funds of the Authority have not been included within the scope of the general purpose financial statements of the Cities because the Authority has its own governing board that has responsibility over the operations of the Authority. Only the funds of the Authority are included herein, therefore, these financial statements do not purport to represent the financial position or results of operation of the cities of Chino Hills and Diamond Bar. GASB Statement No. 34 The Authority implemented the provisions of GASB Statement No. 34, which requires a new financial statement presentation in fiscal year 2003-2004. The details of the new reporting model are stated in the following paragraphs. b. Government -Wide and Fund Financial Statements The government -wide financial statements (Statements of Net Assets and Statement of Activities) report information on all activities of the Authority. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Revenues include contributions of the participating agencies. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Tres Hermanos Conservation Authority Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectable within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government 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, as under accrual accounting. Private -sector standards of accounting and financial reporting issued prior to December 1989, generally are followed in the government -wide financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. d. Assets, Liabilities and Net Assets or Equity Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits that are maintained in a bank account to pay obligations of the Authority. Cash and cash equivalents are reported at fair value on the accompanying statement of net assets and governmental fund balance sheet. Functional Classification Expenditures of the Authority are classified as general government. Note 2: Stewardship, Compliance and Accountability The Executive Director directs the preparation of the Authority operating budget that is approved by the Board at the annual meeting. Note 3: Cash and Cash Equivalents Demand Deposits At June 30, 2004, the carrying amount of the Authority's deposits was $17,324 and the bank balance was $17,324. TRES HERMANOS CONSERVATION AUTHORITY FINANCIAL STATEMENTS JUNE 30, 2005 TRES HERMANOS CONSERVATION AUTHORITY JUNE 30, 2005 AUTHORITY OFFICIALS Gwenn Norton -Perry Chairman Robert Zirbes Vice -Chair Douglas N. La Belle Executive Director James De Stefano Deputy Executive Director Tommye Cribbins Secretary Judy Lancaster Treasurer Steve Tye Alternate Director Ed Graham Alternate Director - Dave Perez Ex -Officio Director Debra Fox General Counsel Carol Herrera Member Curt Hagman Member TRES HERMANOS CONSERVATION AUTHORITY JUNE 30, 2005 TABLE OF CONTENTS Page Number INDEPENDENT AUDITORS' REPORT................................................................................................1 BASIC FINANCIAL STATEMENTS: Statement of Net Assets and Governmental Fund Balance Sheet................................................2 Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance..............................................................................3 Budgetary Comparison Statement.................................................................................................4 Notes to Basic Financial Statements.............................................................................................5 Board of Directors Tres Hermanos Conservation Authority Diamond Bar, CA 91765 INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities and the general fund of the Tres Hermanos Conservation Authority as of and for the year ended June 30, 2005, as listed in the table of contents. These financial statements are the responsibility of the management of the cities of Chino Hills and Diamond Bar, California. 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, and in accordance with Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The Authority has not presented a management's discussion and analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not required to be part of, the basic financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and the general fund of the Tres Hermanos Conservation Authority at June 30, 2005, and the changes in its financial position, thereon and the budgetary comparison for the general fund for the year then ended in conformity with the auditing standards generally accepted in the United States of America. September 21, 2006 i 203 N. Brea Blvd., Suite 203 0 Brea, CA 92821-4056 0 (714) 672-0022 • Fax (714) 672-0331 e www.Islepas.com Brandon W. Burrows Donald L. Parker l Michael K. Chu MULance nghard David E. Hale AProfe=s lC« ora�n Donald G. Slater LLP Richard K. Kikuchi Certified Public Accountants Reared Robert C. Lance 1914-1994 Richard C. Soll Fred J. Lunghard, Jr. 19281999 Board of Directors Tres Hermanos Conservation Authority Diamond Bar, CA 91765 INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities and the general fund of the Tres Hermanos Conservation Authority as of and for the year ended June 30, 2005, as listed in the table of contents. These financial statements are the responsibility of the management of the cities of Chino Hills and Diamond Bar, California. 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, and in accordance with Government Auditing Standards, issued bythe Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The Authority has not presented a management's discussion and analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not required to be part of, the basic financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and the general fund of the Tres Hermanos Conservation Authority at June 30, 2005, and the changes in its financial position, thereon and the budgetary comparison for the general fund for the year then ended in conformity with the auditing standards generally accepted in the United States of America. September 21, 2006 i 203 N. Brea Blvd., Suite 203 0 Brea, CA 92821-4056 0 (714) 672-0022 • Fax (714) 672-0331 e www.Islepas.com TRES HERMANOS CONSERVATION AUTHORITY STATEMENT OF NET ASSETS AND GOVERNMENTAL FUND BALANCE SHEET JUNE 30, 2005 General Statement of Fund Adjustments Net Assets Assets: Cash and cash equivalents $ 63,631 $ $ 63,631 Total Assets $ 63,631 63,631 Fund Balances/Net Assets: Fund Balances: Undesignated: 63,631 (63,631) Total Fund Balances $ 63,631 (63,631) Net Assets: Unrestricted 63,631 63,631 Total Net Assets $ 63,631 $ 63,631 See Notes to Financial Statements 2 TRES HERMANOS CONSERVATION AUTHORITY STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2005 General Statement of Fund Adjustments Activities Revenues Contributions $ 50,000 $ $ 50,000 Total Revenues 50,000 50,000 Expenditures: General government: Legal services $ 792 $ $ 792 Auditing services 992 992 Other 62 62 Total Expenditures 1,846 1,846 Excess (Deficiency) of Revenues Over (Under) Expenditures 48,154 48,154 Fund BalancesfNet Assets: Beginning of Year 15,477 15,477 End of Year $ 63,631 $ $ 63,631 See Notes to Financial Statements 3 TRES HERMANOS CONSERVATION AUTHORITY BUDGETARY COMPARISON STATEMENT YEAR ENDED JUNE 30, 2005 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 15,477 $ 15,477 $ 15,477 $ Resources (Inflows): Payments from members 10,000 10,000 50,000 (60,000) Amounts Available for Appropriation 25,477 25,477 65,477 (60,000) Charges to Appropriation (Outflow) General government: Legal services 4,000 4,000 792 3,208 Auditing services 500 500 992 (492) Contract Services 15,000 15,000 - 15,000 Other 2,750 2,750 62 2,688 Total Charges to Appropriations 22,250 22,250 1,846 20,404 Budgetary Fund Balance, June 30 $ 3,227 $ 3,227 $ 63,631 $ 60,404 See Notes to Financial Statements 4 TRES HERMANOS CONSERVATION AUTHORITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of the Reporting Entity The Tres Hermanos Conservation Authority (Authority) is a joint powers agency created by a joint powers agreement between the cities of Chino Hills and Diamond Bar, California, dated January 19, 1999. It was created pursuant to Articles 1 through 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, in accordance with the provisions of the Marks -Roos Local Bond Pooling Act of 1985. The purpose of the Authority is to create a public entity to coordinate the overall development and conservation of a large undeveloped area of real property known as the Tres Hermanos Ranch, by preparing studies, plans, environmental reviews and similar information and by making recommendations to its members to take such actions including, but not limited to, acquisition and eminent domain as are necessary to implement its recommendations. The Authority is a public entity separate and apart from each of the Cities. The funds of the Authority have not been included within the scope of the general purpose financial statements of the Cities because the Authority has its own governing board that has responsibility over the operations of the Authority. Only the funds of the Authority are included herein, therefore, these financial statements do not purport to represent the financial position or results of operation of the cities of Chino Hills and Diamond Bar. b. Government -Wide and Fund Financial Statements The government -wide financial statements (Statements of Net Assets and Statement of Activities) report information on all activities of the Authority. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Revenues include contributions of the participating agencies. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as theyare both measurable and available. Revenues are considered to be available when they are collectable within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government 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, as under accrual accounting. 5 Tres Hermanos Conservation Authority Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) Private -sector standards of accounting and financial reporting issued prior to December 1989, generally are followed in the government -wide financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. d. Assets, Liabilities and Net Assets or Equity Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits that are maintained in a bank account to pay obligations of the Authority. Cash and cash equivalents are reported at fair value on the accompanying statement of net assets and governmental fund balance sheet. Functional Classification Expenditures of the Authority are classified as general government. Note 2: Stewardship, Compliance and Accountability The Executive Director directs the preparation of the Authority operating budget that is approved by the Board at the annual meeting. Note 3: Cash and Cash Equivalents Demand Deposits At June 30, 2005, the carrying amount of the Authoritys deposits was $63,631 and the bank balance was $63,631. TRES HERMANOS CONSERVATION AUTHORITY FINANCIAL STATEMENTS JUNE 30, 2006 TRES HERMANOS CONSERVATION AUTHORITY JUNE 30, 2006 AUTHORITY OFFICIALS Gwenn Norton -Perry Chairman Robert Zirbes Vice -Chair Douglas N. La Belle Executive Director James De Stefano Deputy Executive Director Tommye Cribbins Secretary Judy Lancaster Treasurer Steve Tye Alternate Director Ed Graham Alternate Director Dave Perez Ex -Officio Director Debra Fox General Counsel Carol Herrera Member Curt Hagman Member TRES HERMANOS CONSERVATION AUTHORITY JUNE 30, 2006 TABLE OF CONTENTS Page Number INDEPENDENT AUDITORS' REPORT................................................................................................1 BASIC FINANCIAL STATEMENTS: Statement of Net Assets and Governmental Fund Balance Sheet................................................2 Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance..............................................................................3 Budgetary Comparison Statement.................................................................................................4 Notes to Basic Financial Statements.............................................................................................5 Board of Directors Tres Hermanos Conservation Authority Diamond Bar. CA 91765 INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities and the general fund of the Tres Hermanos Conservation Authority as of and for the year ended June 30, 2006, as listed in the table of contents. These financial statements are the responsibility of the management of the cities of Chino Hills and Diamond Bar, California. 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, and in accordance with Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The Authority has not presented a management's discussion and analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not required to be part of, the basic financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and the general fund of the Tres Hermanos Conservation Authority at June 30, 2006, and the changes in its financial position, thereon and the budgetary comparison forthe general fund for the year then ended in conformity with the auditing standards generally accepted in the United States of America. September 21, 2006 203 N. Brea Blvd., Suite 203 s Brea, CA 92821-4056 • (714) 672-0022 o Fax (714) 672-0331 o www.lslmas.com Brandon W. Burrows Donald L. Parker g l $c NEchael K. ELLance David E E. n g I Ia iU Donald G. Slater LLP Richard K. Kikuchi Certified Public Accountants Retired Robert C. Lance 1914-1994 Richard C. Sou Fred J. Lunghard, Jr. 1928-1999 Board of Directors Tres Hermanos Conservation Authority Diamond Bar. CA 91765 INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities and the general fund of the Tres Hermanos Conservation Authority as of and for the year ended June 30, 2006, as listed in the table of contents. These financial statements are the responsibility of the management of the cities of Chino Hills and Diamond Bar, California. 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, and in accordance with Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The Authority has not presented a management's discussion and analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not required to be part of, the basic financial statements. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and the general fund of the Tres Hermanos Conservation Authority at June 30, 2006, and the changes in its financial position, thereon and the budgetary comparison forthe general fund for the year then ended in conformity with the auditing standards generally accepted in the United States of America. September 21, 2006 203 N. Brea Blvd., Suite 203 s Brea, CA 92821-4056 • (714) 672-0022 o Fax (714) 672-0331 o www.lslmas.com TRES HERMANOS CONSERVATION AUTHORITY STATEMENT OF NET ASSETS AND GOVERNMENTAL FUND BALANCE SHEET JUNE 30, 2006 Assets: Cash and cash equivalents Total Assets Fund Balances/Net Assets: Fund Balances: Undesignated: Total Fund Balances Net Assets: Unrestricted Total Net Assets General Statement of Fund Adjustments Net Assets .0 63,171 (63,171) $ 63,171 (63,171) See Notes to Financial Statements 2 $ 63,171 63,171 63,171 63,171 $ 63,171 $ 63,171 TRES HERMANOS CONSERVATION AUTHORITY STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2006 Expenditures: General government: Legal services Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Fund Balances/Net Assets: Beginning of Year End of Year General Statement of Fund Adjustments Activities $ 460 $ 460 (460) $ 460 460 (460) 63,631 63,631 $ 63,171 $ $ 63,171 See Notes to Financial Statements 3 TRES HERMANOS CONSERVATION AUTHORITY BUDGETARY COMPARISON STATEMENT YEAR ENDED JUNE 30, 2006 Budgetary Fund Balance, July 1 Resources (Inflows): Payments from members Budget Amounts Original Final $ 63,631 $ 63,631 $ 10,000 10,000 Variance with Final Budget Actual Positive Amounts (Negative) 63,631 $ (10,000) Amounts Available for Appropriation 73,631 73,631 63,631 (10,000) Charges to Appropriation (Outflow): General government: Legal services 4,000 4,000 460 3,540 Auditing services 500 500 - 500 Other 17,750 17,750 17,750 Total Charges to Appropriations Budgetary Fund Balance, June 30 22,250 22,250 460 21,790 $ 51,381 $ 51,381 $ 63,171 $ 11,790 See Notes to Financial Statements 4 TRES HERMANOS CONSERVATION AUTHORITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2006 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of the Reporting Entity The Tres Hermanos Conservation Authority (Authority) is a joint powers agencycreated by a joint powers agreement between the cities of Chino Hills and Diamond Bar, California, dated January 19, 1999. It was created pursuant to Articles 1 through 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, in accordance with the provisions of the Marks -Roos Local Bond Pooling Act of 1985. The purpose of the Authority is to create a public entity to coordinate the overall development and conservation of a large undeveloped area of real property known as the Tres Hermanos Ranch, by preparing studies, plans, environmental reviews and similar information and by making recommendations to its members to take such actions including, but not limited to, acquisition and eminent domain as are necessary to implement its recommendations. The Authority is a public entity separate and apart from each of the Cities. The funds of the Authority have not been included within the scope of the general purpose financial statements of the Cities because the Authority has its own governing board that has responsibility over the operations of the Authority. Only the funds of the Authority are included herein, therefore, these financial statements do not purport to represent the financial position or results of operation of the cities of Chino Hills and Diamond Bar. b. Government -Wide and Fund Financial Statements The government -wide financial statements (Statements of Net Assets and Statement of Activities) report information on all activities of the Authority. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Revenues include contributions of the participating agencies. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectable within the current period or soon enough thereafterto pay liabilities of the current period. For this purpose, the government 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, as under accrual accounting. Tres Hermanos Conservation Authority Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) Private -sector standards of accounting and financial reporting issued prior to December 1989, generally are followed in the government -wide financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. d. Assets, Liabilities and Net Assets or Equity Cash and Cash Equivalents Cash and cash equivalents consist of demand deposits that are maintained in a bank account to pay obligations of the Authority. Cash and cash equivalents are reported at fair value on the accompanying statement of net assets and governmental fund balance sheet. Functional Classification Expenditures of the Authority are classified as general government. Note 2: Stewardship, Compliance and Accountability The Executive Director directs the preparation of the Authority operating budget that is approved by the Board at the annual meeting. Note 3: Cash and Cash Equivalents Demand Deposits At June 30, 2006, the carrying amount of the Authority's deposits was $63,171 and the bank balance was $63,171. TRES HERMANOS CONSERVATION AUTHORITY ��e t? -I STAFF REPORT Date: March 19, 2007 To: Chairman and Members of the Tres Hermanos Conservation Authority From: Executive Director Subject: Adoption of Proposed By -Laws Amendments Recommendation: That the Authority adopts the proposed amendments to the By -Laws. Background/Analysis: At the July 31, 2006 meeting, the Authority adopted a set of amendments to the By -Laws. Included in the amendments that were approved was wording that stated that the City Manager of Diamond Bar would be the permanent Executive Director and the City Man- ager of Chino Hills would be the permanent Deputy Executive Director. This was not the Board's intention. The proposed change would make the City Manager from the same city as the Board Chairman would be the Executive Director. The City Manager from the same city as the Vice Chairman would be the Deputy Executive Director. Staff is re- questing that this item be considered and the proposed changes be adopted. Recommended by: Douglas N. La Belle, Executive Director Attachment Respectfully Submitted by: James DeStefano, Deputy Executive Director APPOINTED OFFICERS. The Board shall appoint the following officers: 1. Executive Director. The City Manager from the same city as the Chairman shall serve as the Execu- tive Director and shall exercise the duties described in Article 5. 2, Deputy Executive Director. The City Manager from the same city as the Vice -Chairman shall serve as the Deputy Executive Director and, in the absence of the Executive Director, shall exercise the duties described in Article 5. 3. Secretary. The City Clerk of the City of Diamond Bar, or her designee, shall serve as Secretary. The Secretary shall take and hold minutes of the meeting, attest to contracts and other documents, record documents as necessary, keep and maintain records, and perform such other and further administrative, documentation, and re- lated functions. 4. Treasurer/Auditor. The Finance Director of the City of Chino Hills or her designee, shall serve as Treasurer. The person serving as Treasurer shall also perform the functions of auditor as required by Government Code Section 6505.6. 5. General Counsel. The member of the California State Bar appointed by the Board shall serve as the legal advisor to the Authority. TRES HERMANOS CONSERVATION AUTHORITY STAFF REPORT AGENDA NO. 5.2 Date: March 15, 2007 To: Chairman and Members of the Tres Hermanos Conservation Authority From: Executive Director Subject: Request for Proposals for Consulting Services Recommendation: That the Authority discuss and direct Staff as appropriate regarding the format of the attached Request for Proposals (RFP) and authorize the Executive Director to distribute the RFP to prospective proposers. Recommended by: Douglas N. La Belle, Executive Director Attachment Respectfully Submitted by: James DeStefano, Deputy Executive Director Tres Hermanos Conservation Authority REQUEST FOR PROPOSALS for Tres Hermanos Ranch Land Use Concept Planning Services PROPOSALS DUE: 4:00 PM, Thursday, NOVEMBER 30, 2006 Tres Hermanos Conservation Authority REQUEST FOR PROPOSALS for Tres Hermanos Ranch Land Use Concept Planning Services Project Name: Tres Hermanos Ranch Land use Concept Planning Services Proposal Due Date: Thursday, November 30, 2006 Time: 4:00 P.M. Proposals must be submitted to: TRES HERMANOS CONSERVATION AUTHORITY Douglas N. La Belle, Executive Director 2001 Grand Avenue Chino Hills, CA 91709 INTRODUCTION The Tres Hermanos Conservation Authority (Authority) is a joint powers agency created in 1999 by a joint powers agreement between the Cities of Chino Hills and Diamond Bar. The purpose of the Authority is to coordinate the overall conservation and development of a large 2,400 acre undeveloped area of real prop- erty located within both cities known as the Tres Hermanos Ranch by preparing plans, studies, and envi- ronmental review and by recommending appropriate actions to its member Cities. The Authority is interested in the preparation of a master plan to guide development within the 2,400 acre in a sensitive manner that is beneficial to both cities and the land owner. The property of the property is the Industry Urban Redevelopment Agency. The City of Industry serves as an Ex -Official member of the Au- thority. The Authority is seeking multi -disciplinary firms to assist with formulating a land use concept plan for the entire site that will include an analysis of market opportunities, economic impacts, environmental con- straints, land use potential, and circulation and traffic issues associated with future development. Tres Hermanos is unique in that it is a large undeveloped property with rolling hills and grasslands and a central valley area that is surrounded by fully developed residential and institutional areas within the cities of Chino Hills and Diamond Bar. The Tres Hermanos Ranch site encompasses approximately 2,400 -acres with approximately 700 acres of the site lying within the northeastern portion of City of Diamond Bar in Los Angeles County and approximately 1,400 acres located within the western edge of the City of Chino Hills in San Bernardino County. The entire property is owned by the City of Industry Urban Development Agency. Reaional and Local Context The site is located generally southeast of the junction of the SR -60 and SR -57 Freeways in the eastern- most part of the City of Diamond Bar and Los Angeles County and the westernmost part of the City of Chino Hills and San Bernardino County, The SR -71 Freeway is located approximately 4 miles to the west of the site. Currently, local access to the site is limited to Chino Hills Parkway along the northeastern boundary of the site and Grand Avenue which bisects the site. Although the site itself is primarily undeveloped, it is surrounded by residential uses in the City of Diamond Bar along the western border of the property and residential uses and a community park located within the City of Chino Hills along the eastern border. The southern section of the Tres Hermanos Ranch property borders the Firestone Boy Scout Reservation, also owned by the City of Industry. Diamond Ranch High School is located adjacent to the northern portion of the site. Environmental Setting Rolling hillsides of open grasslands dominate the property, which has historically been used for cattle gaz- ing continuing to this day. In areas that have not been touched by cattle grazing, there can be found groves of Oaks and Sycamores and native vegetation that Include coastal sage scrub and cactuses. The hillsides drain south into Tonner Canyon wash that traverses most of the center portion of the site, particularly that area south of Grand Avenue. There are several areas where water can be seen within in the canyon area. Just south of Grand Avenue, there is a small lake, known as Lake Arnold, and marshy areas where water levels rise and fall according to the seasonal rains. A single unoccupied residential dwelling unit is located south of Grand Avenue within the City of Chino Hills. Regulatory Setting The City of Chino Hills General Plan designates the approximately 1,700 acre portion of the property within the city as Agricultural/Ranch which permits a density of 0-0.2 dwelling units per acre and is intended for agriculture and related uses such as equestrian estates, cattle grazing, and other types of agriculture. The property is zoned R -A (Agricultural Ranch) and allows for agriculture and related uses. Measure U, a growth control measure approved by the Chino Hills voters, limits the number of residential units that can be built on a property to the number allowed by the General Plan. Presently, the number of residential units permissible upon the Tres Hermanos site is limited to approximately 320 dwelling units. Any increase in the number of residential units for the site must by approved by the voters. The General Plan for the City of Diamond Bar designates the approximately 700 acre property within its jurisdiction as PA-1/Specific Plan (Planning Area No. 1 with Specific Plan requirement). The property is intended for future development with educational, residential, commercial and institutional uses that are part of master planned community. The property is zoned AG (Agricultural) and is classified for agricultural and related uses with a residential density of one dwelling unit allowed per five gross acres. PROJECT DESCRIPTION The Authority is seeking proposals to provide a conceptual land use study and plans for the entire 2,400 acre Tres Hermanos Ranch property site. The goal of the study is to provide an overall guide to direct how the property may best be utilized in the future. The land use study is intended to include comprehensive plans for the best use of the site benefiting the City of Chino Hills and the City Diamond Bar as well as the property owner. The land use concept plans should incorporate protection of the natural and environmental assets, as is appropriate. The conceptual land use study should take a multi -disciplinary approach to planning for the site and include an environmental opportunities and constraints analysis, an economic/ market analysis, housing needs analysis, commercial needs analysis, transportation and circulation requirements, and conceptual plans indicating potential land uses. The study shall cover entire 2,400 -acre site and involve three separate land use scenarios for the property. The final document should include both conceptual land use maps and text descriptions of the proposed land use concept plans. REQUIREMENTS, SCOPE OF WORK AND PRODUCTS All proposals must include a detailed scope of work, time table, and the necessary tasks to complete the work. Proposals must be outlined in a clear and logical format and the conceptual land use study should include, at a minimum, the following sections: A. Site Description: Review of the current physical nature of the site; B. Land Use Study: A minimum of three conceptual land use plan scenarios. The conceptual land use plan could include some or all of the following uses: residential; commercial; recreational; and institutional. C. Economic Analysis: An economic analysis incorporating a market study should be provided as a foundation for the proposed land use scenarios; D. Housing Need Analysis: An analysis of housing needs of the cities of Chino Hills, Diamond Bar and Industry as relates to the site; E. Environmental description: A general review of the environmental opportunities and con- straints. F. Maps and diagrams along with text descriptions of the proposed land uses. Final product to be provided in an 11" x 17" format. SCOPE OF SERVICES A. Major tasks to be completed: 1. Project management The completion of the scope of services may require the formation of a project team under the direction of a single project manager. 2. Preparation of all necessary maps, concept drawings, color renderings, diagrams, etc. for the project. 3. Presentations to the Authority (and member cities, as required) 4. Research records to obtain all previous studies on the site. B. Meetings with the Authority, its member Cities and property owner. 1. Members of the consultant team should be available to meet with the Authority as needed to discuss the project status. 2. Members of the project time shall be available to attend meetings with the Authority its member cities and the property owner. C. Deliverables: The successful proposer shall provide the Authority with hard copies as well as digital formats of all documents. The document format shall be ap- proved by the Authority and shall utilize the latest software versions avail- able, which includes, but is not limited to, AutoCAD, Microsoft Word, and Adobe Portable Document Format (PDF). 1. Three (3) reproducible master copies of the Draft and Final project report. 2. One (1) reproducible master copy of the Draft and Final reports on a CD (writeable) format. 3. Twenty (20) printed copies each of the Draft and Final report. SELECTION CRITERIA The Authority will evaluate the information submitted. The evaluation will consider the following criteria when reviewing each proposal: Approach to the work including task breakdown and staffing, forty-five percent (45%). Experience and technical competence of the team/ firm and key personnel assigned on similar pro- jects of equal complexity, thirty percent (40%). 3. Reports of references, and the willingness to agree to all terms of the Professional Services Agreement, twenty-five percent (15%). The Authority reserves the right to accept or reject any or all proposals or to waive any defects or irregulari- ties in the proposals or selection process. AUTHORITY SUPPORT The Authority will make available, without cost, copies of any reference plans, previous studies, and maps that are available from the member Cities and land owner. Materials to be furnished by the Authority: The Authority will provide pertinent materials at no charge to the selected Consultant. The materials may include, but are not limited to: 1. City of Chino Hills and City of Diamond Bar General Plans 2. City of Chino Hills and City of Diamond Bar Development Codes 3. City of Chino Hills and City of Diamond Bar Zoning Maps 4. Tres Hermanos Concept Plan — September 1992 PROPOSAL CONTENTS Specific Proposal Requirements: QUALIFICATIONS AND EXPERIENCE Include a general profile of the Consultant firm as follows: a. Firm name, business address, and telephone number. b. Type of organization (e.g. individual, partnership, corporation, joint venture, other). c. The names of the principals of the firm along with their professional qualifications. d. Size of firm. e. Year firm established. I. Insurance (General Liability, Automobile Liability, Worker's Compensation, Professional Liability). Provide resumes of key personnel to be assigned to the project as follows: a. Identification of key personnel and their tasks for the project, along with their professional qualifications, experience, and license numbers, if applicable. b. Provide Authority of residence for all key personnel. 3. Describe the firm's related experience during the last two years. For example: a. Include projects where professional consultant services related to landscape plan check were performed. b. Include examples of other projects that are similar in scope to this one. c. Include the name of the project and a contact person for each example. Provide a list of all proposed subconsultants as follows: a. Business name and location. b. Professional qualifications and similar project experience. c. Description of work to be assigned. Each firm is invited to include additional information, if the firm believes that the informa- tion will be useful and applicable to this proposal. General Conditions and Requirements: 1. Consultant shall include a program for providing on-going project management and coordination. This will ensure that the Authority is kept apprised on a regular basis of the status of the assigned projects and any issues to be resolved. It shall further identify what actions will be taken to complete the as- signed projects in a timely fashion and within the established budget. 2. Consultant shall not suspend performance of this contract during the negotiations of any change in scope of work except as directed by Authority. Consultant shall perform all changes in accordance with the terms and conditions of this contract. 3. Where Consultant is required to prepare and submit studies, reports, plans, etc., to Authority as re- quired by this Statement of Work, these shall be submitted in draft as scheduled, and the opportunity provided for Authority to direct revisions, prior to final submission. 4. Consultant shall carry out the instructions as received from the Authority's Project Manager and shall cooperate with the Authority and other agencies involved in the Project. 5. The Consultant shall maintain a set of project files that are indexed and shall hand over all project files to the Authority upon request. 6. The Consultant shall throughout the life of the contract retain within Consultant's firm, or through quali- fied sub -consultants, a staff qualified to perform each of the tasks listed in this article. 7. A statement that this RFP shall be incorporated in its entirety as a part of the Consultant's quote 8. A Statement of Qualifications applicable to this project including the names, qualifications, and proposed duties of the Consultant's staff to be assigned to this project; a listing of recent similar projects completed including the names, titles, addresses, and telephone numbers of the appropriate persons which the Authority can contact. 9.. A statement that all charges for services will be a "Not -To -Exceed" fee, as submitted with and made part of said Consultant's quote. 10. A copy of the Consultant's hourly rate schedule and a written statement that said hourly rate schedule is part of the Consultant's quote for use in invoicing for progress payments and for extra work incurred that is not part of this RFP. 11. A written statement by the Consultant that all federal laws and regulations shall be adhered to notwithstanding any state or local laws and regulations. In case of conflict between federal, state, or local laws or regulations, the strictest shall be adhered to. 12. A written statement by the Consultant shall allow all authorized federal, state, county, and the Authority official's access to place of work, books, documents, papers, fiscal, payroll materials, and other relevant contract records pertinent to this project. All relevant records shall be retained for at least three years. 13. A written statement that the Consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. 14. A written statement that the Consultant shall comply with the California Labor Code. Pursuant to said regulations entitled: Federal Labor Standards provisions; Federal Prevailing Wage Decision; and State of California Prevailing Wage Rates, respectively. 15. A written statement that the Consultant shall comply with the Copeland Anti -kickback Act (18 USC 874 C) and the implementation regulation (29 CFR 3) issued pursuant thereto, and any amendments thereof. 16. A description of Consultant's approach to the work and a complete analysis of staff hours required of each individual to be assigned to the project. The estimated hours shall identify each task to be done and the assigned individual's level of effort. Administrative Elements: The Consultant shall assign a responsible representative and an alternate to perform the assigned tasks. Both staff members shall be identified in the proposal. The Consultant's representative will be responsible for all duties from contract negotiations through project completion. If the primary representative is unable to continue with the project, then the alternate representative will become the primary representative. The Authority must ap- prove in advance any other changes in responsible representative. The Authority will have the right to reject other proposed changes in personnel and may consider any other changes in responsible personnel a breach of contract. The Consultant shall provide a "Fee Schedule" outlining all applicable hourly rates and costs for services. The proposal shall provide a breakdown of fees associated with each project task for every alternative. Consultant shall also submit a 'Not -to -Exceed" total fee for the project in a separate sealed envelope, which shall include all work necessary to complete the project design. After evaluating the proposals based upon the criteria set forth, it is anticipated that the Authority will develop a short list of firms to be interviewed. Upon completion of the evaluation and interviews, the Authority may select one or more firms to perform the work. The Authority will not consider late Proposals; reserves the right to accept or reject any or all proposals or to waive any defects or irregularities in the proposals or selection proc- ess; to modify the scope of work subsequent to receipt of future proposals; reserves the right to waive any and all requirements set forth in the RFP; and reserves the right to not award a contract to any party. Professional Services Agreement: The Authority has provided a copy of the Agreement for Professional Services. Please review this agreement and provide the Authority with a written statement of your firm's willingness to accept the terms of the agreement. Please specifically identify each and every term of the agreement which your firm is unwilling to accept and the reason therefore. Prevailing Wages: The Proposer agrees to abide by the requirements under Section 1773 of the Labor Code of the State of California for general prevailing wages, where it is applicable. Insurance: I. Insurance Requirements. Proposer shall provide and maintain insurance acceptable to the Authority Attorney in full force and effect throughout the term of this Agreement, against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Proposer, its agents, representatives, or employees. Insurance is to be placed with a current A.M. Best's rating of no less than A: VII. Proposer shall provide the following scope and limits of insurance: a. Minimum Scope of Insurance. Coverage shall be at least as broad as (1) Insurance Services Office form Commercial General Liability coverage (Occurrence Form CG 0001). (2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, including code 1 "any auto" and endorsement CA 0025, or equivalent forms subject to the written approval by the Authority. (3) Workers' Compensation insurance as required by the Labor Code of the State of California and Employer's Liability Insurance and covering all persons providing service on behalf of the Proposer and all risks to such persons under this Agreement. (4) Errors and Omissions liability insurance appropriate to the Proposer's profession b. Minimum Limits of Insurance. Consultant shall maintain limits of insurance no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property dam- age. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the activities related to this Agreement or the general aggregate limit shall be twice the required occurrence limit. (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. (3) Worker's Compensation and Employer's Liability: Worker's Compensation as required by the Labor Code of the State of California and Employer's Liability limits of $1,000,000 per accident. (4) Errors and Omissions Liability: $1,000,000 per occurrence. 2. Other Provisions. Insurance policies required by this Agreement shall contain the following provisions a. All Policies: Each insurance policy required by this paragraph shall be endorsed and state the coverage shall not be suspended, voided, canceled by the insurer or either party to this Agreement, reduced in coverage or in limits except after 30 days' prior written notice by Certified mail, return receipt requested, has been given to the Authority. b. General Liability and Automobile Liability Coverages (1) Authority, its officers, officials, employees and volunteers are to be covered as additional insured as respects: liability arising out of activities Proposer performs, products and completed operations of Proposers, premises owned, leased or hired or borrowed by Proposer. The coverage shall contain no special limitations on the scope of protection afforded to Authority, its officers, officials, employees or volunteers. (2) Proposer's insurance coverage shall be primary insurance as respects to Authority, its officers, officials, employees or volunteers and shall apply in excess of, and not contribute with, Proposer's insurance. (3) Proposer's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (4) Any failure to comply with the reporting or other provisions of the policies including the breaches of warranties shall not affect coverage provided to the Authority, its officers, officials, employees or volunteers. C, Worker's Compensation and Employer's Liability Coverage. Unless the Authority otherwise agrees in writing, the insurer shall agree to waive all rights of subrogation against the Authority, its officers, officials, employees and agents for losses arising from work performed by Consultant for Authority. 3. Other Requirements. Consultant agrees to deposit with Authority, at or before the effective date of this Agreement, certificates of insurance necessary to satisfy Authority that the insurance provisions of this Agreement have been complied with. The Authority Attorney may require the Proposer furnish the Authority with copies of original endorsements effecting coverage required by this Section. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. Authority reserves the right to inspect complete, certified copies of all required copies of all required insurance policies, at any time. a. Proposer shall furnish certificates and endorsements from each subcontractor identical to those Proposer provides. b. Any deductibles or self-insured retention must be declared to and approved by Authority. At the option of the Authority, either the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the Authority, its officers, officials, employees and volunteers; or the Proposer shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. C. The procuring of such required policy or policies of insurance shall not be construed to limit Proposer's liability hereunder to fulfill the indemnification provisions and requirements of this Agreement. Subcontracting: The Proposer may utilize the services of specialty Subconsultants on those parts of the Work that, under normal contracting practices, are performed by specialty Subconsultants. Unless a specific Subconsultant is listed by Proposer, Proposer is representing to Authority that Proposer has all appropriate licenses, certifications, and registrations to perform the work hereunder. After submission of his/her proposal, the Proposer shall not award Work to any unlisted Subconsultant(s) without prior written approval of the Authority. The Proposer shall be fully responsible to the Authority for the performance of his/her Subconsultants, and of persons either directly or indirectly employed by them. Nothing contained herein shall create any contractual relation between any Subconsultant and the Authority. Proposal Availability and Submittal Information: Copies of the Request for Proposals may be obtained at the Community Development Department of the City of Chino Hills, 2001 Grand Ave, Chino Hills, California 91709 or the Community Development Department of the City of Diamond Bar, 21825 Copley Drive, Diamond Bar, California 91789. Proposals will be received by the Tres Hermanos Conservation Authority, at the office of the Execu- tive Director, 2001 Grand Avenue, Chino Hills, California 91709, until 4:00 p.m., on Thursday, No- vember 30, 2006. Each Proposal must be submitted in a sealed envelope, addressed to the Authority at the above - referenced address. Each sealed envelope containing the Proposal must be plainly marked on the outside as "Proposal for Tres Hermanos Land Use Concept Planning Services" with the Proposer's name and address. If forwarded by mail, the sealed envelope containing the Proposal must be enclosed in an- other envelope addressed to the Tres Hermanos Conservation Authority, attn: Executive Director, 2001 Grand Avenue, Chino Hills, California 91709. Submittal of ten (10) copies of the proposal is required. Should you have any questions regarding this Request for Proposals, please contact Douglas N. La Belle, Authority Executive Director and City Manager for the City of Chino Hills, at (909) 364-2610 or via e-mail at dlabellenoahinohills.org or James DeStefano, City Manager for the City of Diamond Bar, at (909) 839-7010 or via e-mail at fames.destefano(a)ci.diamond-bar.ca.us. AGENDA ITEM NO. 5.3 ORAL PRESENTATION AGENDA NO. 6.1 NO DOCUMENTATION AVAILABLE