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Home My WebLink About05/16/2016 - Regular MeetingTRES HERMANOS CONSERVATION AUTHORITY BOARD OF DIRECTORS MEETING May 16, 2016 5:30 p.m. DIAMOND BAR CITY HALL GRAND CONFERENCE ROOM, SECOND FLOOR 21810 COPLEY DRIVE DIAMOND BAR, CALIFORNIA AGENDA MEMBERS: CAROL HERRERA, CHAIR, Diamond Bar RAY MARQUEZ - DELEGATE, Chino Hills (Proposed) ART BENNETT, DELEGATE, Chino Hills RUTH M. LOW - ALTERNATE DELEGATE, Diamond Bar (Proposed) JAMES DESTEFANO, EXECUTIVE DIR., Diamond Bar KONRADT BARTLAM, DEPUTY EXECUTIVE DIR., Chino Hills 1. CALL TO ORDER 5:30 p.m. ROLL CALL PLEDGE OF ALLEGIANCE 2. PUBLIC COMMENTS: At this time, members of the public may address the Authority regarding any items within the subject matter jurisdiction of the Authority provided NO action or discussion may be taken on any item not appearing on the agenda, except the Authority may BRIEFLY respond to statements made or questions posed. Comments are limited to five minutes per speaker. 3. CONSENT CALENDAR: 3.1 Approval of Minutes April 20, 2015. Recommended Action: Approve. Requested by: Authority Secretary 3.2 Check Register - Time Period From March 1, 2015 through February 28, 2016. Recommended Action: Approve. Requested by: Authority Treasurer/Auditor May 16, 2016 PAGE 2 THCA 3.3 Treasurer's Statements for the Months of March 2015 through February 2016. Recommended Action: Receive and File. Requested by: Authority Treasurer/Auditor 3.4 Independent Auditor's Report for Fiscal Year Ending June 30, 2015. Recommended Action: Receive and File Requested by: Authority Treasurer/Auditor 3.5 Confirmation of Appointments: (a) Chino Hills Mayor Art Bennett and Vice Mayor Ray Marquez as Delegates to the Tres Hermanos Conservation Authority. (b) Diamond Bar Councilmember Carol Herrera as Delegate; and, Council Member Ruth Low as Alternate Delegate to the Tres Hermanos Conservation Authority. Recommended Action: Ratify Appointments Requested by: Executive Director 4. OLD BUSINESS: None. 5. NEW BUSINESS: 5.1 Authorize the Selection of Citizens Business Bank as the Authority's Banking Services Provider. Recommended Action: Authorize. Requested by: Treasurer/Auditor 6. AUTHORITY MEMBER COMMENTS: 7. ADJOURNMENT: Agenda No. 3.'1 TRES HERMANOS CONSERVATION AUTHORITY BOARD • • MEETING MINUTES • APRIL 20 ,2015 1. CALL TO ORDER: Chairman Art Bennett called the Tres Hermanos Conservation Authority Board of Directors meeting to order at 5:30 p.m. in the Chino Hills City Hall Community Meeting Room, 14000 Civic Center Drive, First Floor, Chino Hills, California. PLEDGE OF ALLEGIANCE: Chair/Bennett led the Pledge of Allegiance. ROLL CALL: Art Bennett, Chairman (CH); Carol Herrera, Vice Chair (DB); Cynthia Moran, Delegate (CH); Nancy A. Lyons, Alternate (DB); Konradt Bartlam, Executive Director (CH); James DeStefano, Deputy Executive Director (DB). Chair/Bennett asked that the minutes reflect the presence of Mary Ann, Chino Hills Champion and Claire Schlotterbeck. 2. PUBLIC COMMENTS: None Offered. 3. CONSENT CALENDAR: Upon motions duly seconded, all Consent Calendar items were approved as presented by unanimous vote. 3.1 APPROVED MINUTES OF April 14, 2014 —As presented. 3.2 APPROVED CHECK REGISTER for the Time Period from March 1, 2014 through February 28, 2015 3.3 RECEIVED AND FILED TREASURER'S STATEMENTS for the months of March 2014 through February 2015. - 3.4 RECEIVED AND FILED INDEPENDENT AUDITOR'S REPORT for Fiscal Year ending June 30, 2014. 3.5 CONFIRMED THE FOLLOWING APPOINTMENTS: A) Chino Hills Mayor Cynthia Moran and Vice Mayor Art Bennett as Delegates to the Tres Hermanos Conservation Authority. B) Diamond Bar Council Member Carol Herrera as Delegate; and, Mayor Pro Tern Nancy A. Lyons as Alternate Delegate to the Tres Hermanos Conservation Authority. APRIL 20, 2015 PAGE 2 THCA 4.1 DISCUSSION OF DISSOLUTION OF CITY OF INDUSTRY REDEVELOPMENT AGENCY. DED/DeStefano said that he does not have knowledge of Industry's undertakings. His understanding is that the City of Industry's Redevelopment Agency was dissolved a couple of years ago and a successor agency was formed. One of the duties of a successor agency is to dispose of a variety of parcels (50-60) within their jurisdiction that Industry acquired over many years as well as Tres Hermanos which is outside their jurisdiction. In 2014 the successor agency processed for disposal of about 15 of the parcels on the other side of their city and that process continues. To date, the successor agency has not closed escrow on those 15 parcels. He has been told that the successor agency is gearing up for another round of parcels for disposal and Tres Hermanos is part of that second group of parcels. This is the only information he has because everything else begins with not knowing the details of what they will do. As an example, Tres Hermanos is between two jurisdictions, it is made up of several parcels within the two county limit lines, are they going to sell it as one chunk of 2400 acres or are they going to sell it as San Bernard ino/Chino Hills acreage and Diamond Bar/LA County acreage? He has no idea and cannot find any minutes or record or discussion about their game plan. What they are in the middle of doing now is that they have sought proposals from land planners, real .estate brokers, and folks in that category to help guide them through the process. He does not know if it is for the other parcels that will be included in this bundle or whether it is just for Tres Hermanos but he knows that it is being done for Tres Hermanos. The purpose as he understands it, is to have these professionals guide them through the process and help them to sell the acreage. They were soliciting proposals over the last month and all proposals are supposedly in. DED/DeStefano said he heard the agency received 15 proposals that they are looking at in an attempt to select or recommend the selection of one of these land management real estate firms. It gets even murkier after that because he does not know what their game plan will be or how they will plan to dispose of the asset and how they will market it — these are decisions they have yet to make. Diamond Bar did not have a Redevelopment Agency to dissolve and no property to dispose of and he is not familiar with the process they may be undertaking. Chair/Bennett said that is the same position Chino Hills is in. DED/DeStefano further stated that since consideration of these 15 other parcels have apparently taken more than a year from the time the agency engaged in the disposal process he has to believe that Tres Hermanos is APRIL 20, 2015 PAGE 3 THCA more than a year away from any final decision-making on who will acquire it and what happens next. Chair/Bennett asked if the Successor Agency was comprised of City of Industry officials or, are their other individuals involved? DED/DeStefano responded that although he sees familiar names he does not know. He does not know if all of them are part of the City of Industry other than there are some familiar names on the agency. ED/Bartlam said that the Successor Agency address is the same as the Redevelopment Agency address. DED/DeStefano said that typically the Successor Agency is comprised of the very same people who were part of the Redevelopment Agency. There is the Oversight Board and the State of California so there is a myriad of decision-making that is involved in the oversight of this whole process. Chair/Bennett asked if it was true that what Chino Hills was told is that the Redevelopment Agency cannot legally transfer this property it could revert to the State of California. DED/DeStefano said he knew nothing about that particular matter. He can only assume that the property is indeed still owned by the now Successor Agency because they are the entity that is disposing of the property. This conversation would not be happening if the City of Industry was declared to be the owner of it. ED/Bartlam said he had the same idea about the process and had the sense that the Successor Agency was trying to find a firm to help them market the properties. He believes that they are going through an appropriate process and that it will take quite some time when all is said and done. Chair/Bennett asked DED/DeStefano if he recalled the breakdown and whether it was a total of 2400 acres the City of Industry owned and what the breakdown was between the two cities of Chino Hills and Diamond Bar. DED/DeStefano responded that it is about 1700 in Chino Hills and about 700 in Diamond Bar. Chair/Bennett asked if there was any portion of ownership that extended into Brea. APRIL 20, 2015 PAGE 4 THCA DED/DeStefano said No, as he remembers the City of Industry has holdings in Diamond Bar's sphere of influence that leads into Orange County and Brea's influence but the City of Industry owns that and not the Successor Agency. As he recalls, they bought the Firestone Boy Scout Camp. The City of Industry owns that property which is separate from the Successor Agency. Chair/Bennett asked if the City of Industry, because they have holdings in Brea can acquire Tres Hermanos. DED/DeStefano stated that speaking from a practical standpoint and not a legal standpoint is sure, they could but they have to find resources for it and they have completely different rules and obligations under which the City must operate in terms of its future capabilities, use and disposal, terms which are completely different and far more restrictive on the city side than on the former redevelopment side. If they have the interest and they have the money, sure. Chair/Bennett said that Chino Hill's wish list includes the extension of Tonner Canyon behind The Country past the reservoir. and across Grand Avenue and up to Chino Hills Parkway. Then come up with a great idea to develop that property, whether it be mixed-use, a college campus, a golf course, a "San Antonio" type river walk, etc. For Chino Hills it is something that is very important when it comes to ways out of the City getting to Orange County and Los Angeles County because there have been constant closures of the canyon, mostly because of accidents where power poles have been taken out. The alternative is to go to Grand Avenue, Diamond Bar Boulevard and out which directly impacts Diamond Bar. If Tonner Canyon went through Chino Hills we could extend Eucalyptus which would provide a third way out of the City. It is a very important long term goal for Chino Hills. VC/Herrera said she would believe that once the properties are sold that Chino Hills would have a lot of leverage with the developer that bought the property to accomplish that long term goal. Chair/Bennett said that is why he asked whether Industry still owns the Boy Scout property because that is the key piece that will connect the south end of Tres Hermanos around to the SR57. DED/DeStefano said there are a variety of jurisdictional issues, policy issues, biological issues, land use issues, transportation issues and a lot of those things will have to dovetail pretty solidly together for any of it to work. Many years ago Diamond Bar talked about a bypass road through that area but there are consequences to that not the least of which are environmental and land uses that come with a road. And there has to be development in order to pay for the road because nobody will pay for a APRIL 20, 2015 PAGE 5 THCA road otherwise. More importantly, Diamond Bar will have to look at it extraordinarily carefully because while Diamond Bar may complain about traffic, traffic is the lifeblood of the City's economic development land use palate of the commercial core. So the diversion of traffic behind Diamond Bar will kill the Diamond Bar business community so the positives and negatives have to be looked at very, very carefully. Whether or not there is a local road network from the Chino Hills side is a decision Chino Hills should make but in terms of an actual connection to the 57 freeway other jurisdictions have to weigh in and as he said, Diamond Bar would look at that very, very carefully because of the impacts from a variety of different standpoints economically and environmentally. Chair/Bennett said when he mentioned the golf course what Chino Hills was led to believe, in conjunction with the widening of Grand Avenue at the SR60 that at a truck lane confluence there would be a bypass and from what he was told, possibly a relocation of the Diamond Bar Golf Course to be able to develop that commercially along the freeway. He said he did not know if any of that was even being considered but obviously Chino Hills wants to participate and help Diamond Bar with support of those kinds of things as much as possible. DED/DeStefano said that freeway improvement project will take about 10- 15 years. The first phase near the old Honda property will begin about a year from now but the golf course is planned to remain although there are substantial improvements that are a part of the overall freeway property and there are about 30 or 40 acres that will be chewed up by the new freeway alignment and new on/off ramps at Grand Avenue so many of the holes on the golf course will have to be reconstructed and realigned. This is a County of LA course and Diamond Bar has talked in years past about turning that site into something other than a golf course but it is not currently a discussion item. Chair/Bennett said it is sad that Diamond Bar is at a disadvantage because of the way in which it was developed. Shopping centers are on extreme ends of the city with not much in between. Chino Hills has been very fortunate. It complains about getting beat to the punch by Chino with the Spectrum Shopping Center on the other side of the freeway. However, Chino Hills is still in really good shape as far as having developable lands for pretty big shopping centers. DED/DeStefano said that Chino Hills has the advantage of planning its future whereas Diamond Bar's was planned for it when it incorporated and other than some infill properties nothing has really changed in Diamond Bar in 26 years where Chino Hills was truly able to plan and implement its guiding principles and goals and capture the opportunities along the freeway corridors. APRIL 20, 2015 PAGE 6 THCA Chair/Bennett said that Diamond Bar is split by two freeways and is chewed up by major arterial freeways and to improve those areas does little for Diamond Bar. ED/Bartlarn said that Chino Hills became aware that the Successor Agency was seeking proposals because they were told by someone who received the request and came to visit with him about the Chino Hills side. D/Moran said that it would seem to her that asa common courtesy that even if the Successor Agency cannot divulge a lot of information the City of Industry could collaborate with Chino Hills and Diamond Bar. Mary Ann asked who DED/DeStefano speaks with at the City of Industry. DED/DeStefano said that it is often difficult for a variety of reasons so he talks to several different people and pieces together what he believes to be reliable information. So it could be a department head, a secretary, someone involved in the real estate industry, etc. because he cannot always get a response to inquiries. Mary Ann asked DED/DeStefano when he last spoke with the City of Industry's City Manager. DED/DeStefano said mid-October when they both attended a Contract Cities Sheriff's Department related seminar and happened to sit together. Chair/Bennett said it sounded to him that the reason for very little information forthcoming was because they do not quite have their own act together as to how they are going to proceed. DED/DeStefano said he could not say one way or the other because he does not know. Mary Ann asked how many affordable units Diamond Bar could have in Tres Hermanos. DED/DeStefano said he does not remember the number and this is where he wishes she would not print a number because it will not be a good number but he thinks it is about 400. Mary Ann said that Chino Hills is doing its best to remove some of the units and Diamond Bar does not have any place to put them — is that correct? VC/Herrera reiterated that Diamond Bar has very little land left. APRIL 20, 2015 PAGE 7 THCA DED/DeStefano said that what will likely occur is that there will be a complete reassessment once a purchaser is in place and developers really start to talk about land uses for the Tres Hermanos portion in Diamond Bar. There will not be 400 dwelling units built immediately adjacent to the high school. The City will figure something else at that point in history. Chair/Bennett said that the beauty of it is that with DED/DeStefano having worked as the Community Development Director for years before going to Diamond Bar he has one of the best overall understandings about how sensitive that property (Tres Hermanos) is. And of course, ED/Bartlam is not only up to speed in Chino Hills but of course was really involved with Brea so who knows — at some point in history we will be able to extend the palm branch or whatever and get something going there. Claire Schlotterbeck said she received a call about a year ago from someone in Texas who may be interested in developing Tres Hermanos. DED/DeStefano talked about the emergency training in Tres Hermanos. At this point there was general discussion on other topics including resurfacing of Grand Avenue and questions about whether the stadium would be built. Mary Ann asked VC/Herrera if the Diamond Bar City Council had discussed what it would like to see on a wish list for Tres Hermanos. VC/Herrera said No, there has been no discussion about a specific plan. She felt the City Council was interested in economic development and the City would like additional revenue to help pay for programs the City provides its residents. Mary Ann asked if the City had heard from residents how they feel about what should happen with Tres Hermanos. VC/Herrera said there is probably a variety. Some would like a river walk and would think that would be pretty cool. Others no matter where they live claim that as their view and want it left alone. Mary Ann asked if other expressly say they would like to see economic development. AD/Lyons said that Council Members are always being asked to add economic development to Diamond Bar. She is often asked when Diamond Bar will get restaurants of its own. APRIL 20, 2015 PAGE 8 THCA VC/Herrera said that Diamond Bar was very sorry it lost Coco's and did not know what would replace it. Chair/Bennett said Chino Hills is suffering loss as well with the loss of Best Buy, Off-Broadway Shoe Store and Stein Mart is thinking about leaving. Hobby Lobby is being built next to Babies r us and Toys r us. Mary Ann stated that it was her understanding that the Authority had paid a lot of money for a marketing plan and Lewis came in and said they would love to come into Tres Hermanos. DED/DeStefano said there was no money spent on a plan and there was no plan. There was discussion about entering into a process to select land planners and environmental consultants to master plan the area but the Request for Proposal never went out. ED/Bartlam said he believed that the Authority was trying to get Industry to pay for the master plan. VC/Herrera said only if they are a voting member of Tres Hermanos will they do that. Chair/Bennett said he was not sure the Authority wanted to extend that privilege to them. VC/Herrera said she was curious about this meeting because City of Industry is technically an Ex -Officio member of this authority. She asked if the City of Industry was sent an announcement of tonight's meeting. Mary Ann asked if there would be follow up or if the Authority would wait until next year to have further discussions regarding Tres Hermanos. Chair/Bennett said that the Authority meets on an annual basis and he would suspect that if it comes to a point where there is someone hired to broker the property and look for a potential buyer/developer and potential land uses the Authority will get very involved and probably schedule meetings as necessary. VC/Herrera said she imagined that once the property is sold to a developer something will happen if it is parceled off or if it is sold as one 2400 acre parcel because whoever buys the property will be very eager to come to the cities to talk about land use. Chair/Bennett said he suspected that what will happen and will there be a contingency on any proposed sale contingent upon getting the appropriate entitlements which would give the cities a look at what the developer has in mind and once they get the feedback from the cities they may decide to APRIL 20, 2015 PAGE 9 114125101 -Al walk away from the deal. It is a big chunk of land, it is a very scenic piece of property and there are a lot of issues if it is going to be developed. Chino Hills has a lot of people who want to leave it alone — no development. But since Chino Hills doesn't own the property it cannot keep a property owner from development if they have pr6per zoning, etc. As to Ms. Schlotterbeck comment regarding who might buy the property Chair/Bennett responded that he thinks anyone who buys the property will propose some sort of development which is a process where they will come to the Community Development Division and Planning Commission to express their wishes. Ms. Schlotterbeck asked if the Assessor Agency could influence that and Chair/Bennett said the cities will have a say as to what will happen. It will not be an easy process but at least it seems to be moving forward and will be out of the hands of the City of Industry which may make it a little more reasonable for cities to discuss what should be done with the property. VC/Herrera said that the cities always have final control as to what is done with the property. Chair/Bennett agreed. 5. NEW BUSINESS: 5.1 a) SELECTION OF CHAIR AND VICE CHAIR FOR TERMS COMMENCING JULY 1, 2015 AND ENDING JUNE 30, 2017. AD/Lyons nominated Carol Herrera to serve as Chair of the Tres Hermanos Conservation Authority. With no further nominations offered and by unanimous vote, Carol Herrera was selected to serve as Chair of the Tres Hermanos Conservation Authority for the term commencing July 1, 2015 and ending June 30, 2017. b) ROTATION OF EXECUTIVE DIRECTOR (DIAMOND BAR) FOR THE TERM COMMENCING JULY 1, 2015 AND ENDING JUNE 30, 2017. D/Bennett nominated Cynthia Moran to serve as Vice Chair of the Tres Hermanos Conservation Authority. With no further nominations offered and by unanimous vote, Cynthia Moran was unanimously elected to serve as Vice Chair of the Tres Hermanos Conservation Authority for the term commencing July 1, 2015 and ending June 30, 2017. APRIL 20, 2015 PAGE 10 THCA c) RATIFY DIAMOND BAR CITY MANAGER AS EXECUTIVE DIRECTOR OF THE TRES HERMANOS CONSERVATION AUTHORITY FOR THE TERM COMMENCING JULY 1, 2015 AND ENDING JUNE 30, 2017. By unanimous vote, Jim DeStefano, Diamond Bar City Manager, was ratified as Executive Director of * the Tres Hermanos Conservation Authority for the term commencing July 1, 2015 and ending June 30, 2017. re M12 8. ADJOURNMENT: . There being no further business to conduct, Chairman Bennett adjourned the meeting at 6:19 p.m. JAMES DeSTEFANO, Authority Secretary ATTEST: ART BENNETT, Chairman TRES HERMANOS CONSERVATION AUTHORITY Agenda No. 3.2 STAFF REPORT Date: May 16, 2016 To: Chairman and Members of the Tres Hermanos Conservation Authority From: James DeStefano, Executive Director Subject: Check Register Recommendation: That the Authority approve the attached check register for the time period from March 1, 2015, through February 29, 2016. - Backs round/Anal osis: In order to maintain good accounting practices, the check register of the Authority should be periodically reviewed and approved by the Authority. During the period from March 1, 2015, through February 29, 2016, only three checks were written. These checks were written in order to pay the auditors for the year end field work and annual audit. Recommended by: Konradt Bartlam, Deputy Executive Director Attachment Respectfully submitted by: ri b ry Nb 1 ob N AN P W HEHw Na 0 u u a � L1 (Cµr�l� fL i p¢H UIw-1 pp QQH �IWUW /U/S�N ��WWO logo pW Ui �oo K oWQiiMo b H \\ 1MH � Ori N W \ W�� iU��oao i o i�O�ml�b TWOP WO. ��NCN f/j a rUTrN i Hri orYr m•�U NN UNW mU Q �WO IUFINNr1 N �FJw�Nrvry S \O Ori U• No Y� w � EWM tttY+++F�• O� " � a a� u m� �i �aaa v � i m•n� m C� �aaa H U� i000 N N � WNVI a All o am .i t�ON�gy0.51mmm .� NyU iNNN rt '•L o`i. yHF;W qz� �NNO W 4 a00�xx W U�N�ii �5U 'F �HHH f( p p�U 0ZO TRES HERMANOS CONSERVATION AUTHORITY STAFF REPORT Agenda No. 3.3 Date: May 16, 2016 To: Chairman and Members of the Tres Hermanos Conservation Authority From: James DeStefano, Executive Director Subject: Receive and File — Treasurer's Reports for the Months of March 2015 through February 2016 Recommendation: That the Authority receive and file Treasurer's Reports for the months of March 2015 through February 2016, Backs rou nd/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 held 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 March 2015 through February 2016. Recommended by: Konradt BEM—lam, Deputy Executive Director Attachment Respectfully submitted by: qAA �W 4"44� Jud Lai aster, Treasurer/Auditor TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT March 31, 2015 1. Funds Held by Authority: Cash Bank of America - Checking Total Funds Held by Authority II. Cash Flow Transactions: Cost $ 96,576.24 96,576.24 Beginning Cash Balance Cash Cash Fund 0$/01/15 Receipts Disbursements General Fund $ 98,182,82 $ 0.00 (1,606.58) III. Certifications: Market Value $ 96,576.24 96,576.24 Ending Cash Balance 03/31/15 $ 86,576.24 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 September 30, 2015, r._ �...�, i ...rt ' r Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances March 31, 2015 Year Year to date to date 14/15 13114 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 1,561 1,570 Professional services 1,591 166 Miscellaneous expenditures Total Expenditures 3,152 1,725 Excess of revenues over (under) expenditures Fund Balances: Beginning of fiscal year 99,728 101,453 Excess of revenues over (under) expenditures (3,152) (1,726) End of fiscal year 96,676 99,728 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT April 30, 2015 I. Funds Held by Authority: Cash Bank of America - Checking Total Funds Heid by Authority II, Cash Flow Transactions: Market Cost Value $ 96,562,02 $ 96,562.02 96,662.02 96,562.02 Beginning Ending Cash Balance Cash Cash Cash Balance Fund 04/01/15 Receipts Disbursements 04/30/16 General Fund $ 96,676.24 $ 0.00 (14.22) $ 96,562.02 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 October 31, 2015. •IrCelr% ilr � t �, a fdV -r= Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes In Fund Balances April 30, 2015 Year Year to date to date 14115 13114 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 1,575 1,570 Professional services 1,591 155 Miscellaneous expenditures Total Expenditures 3,166 1,725 Excess of revenues over (under) expenditures (3,166) (1,725) Fund Balances: Beginning of fiscal year 99,728 101,453 Excess of revenues over (under) expenditures (3,166) (1,725) End of fiscal year 96,582 99,728 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT May 31, 2015 i. Fun cis Held by Authority: Cash Bank of America - Checking Total Funds Held by Authority it. cash Flow Transactions: Beginning Cash Balance Fund 05/01/15 General Fund $ 96,602.02 til certifications: Cash Receipts $ 0.00 Market Cost Value $ 96,542,36 $ 96,642.36 96,642.36 Cash Disbursements (19,66) 96,542.36 Ending Cash Balance 05/31/15 $ 96,542.36 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 November 30, 2015. Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances May 31, 2015 Year Year to date to date 14116 13114 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 1,595 1,570 Professional services 1,591 155 Miscellaneous expenditures Total Expenditures 3,186 1,725 Excess of revenues over (under) expenditures (3,186} (1,726) Fund Balances: Beginning of fiscal year 99,728 101,453 Excess of revenues over (under) expenditures (3,186) (1,725) End of fiscal year 96,542 99,728 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT June 30, 2015 I. Funds Held by Authority: Cash Bank of America - Checking Total Funds Held by Authority II, Cash Flow Transactions: Beginning Cash Balance Cash Fund 06/01/15 Receipts General Fund $ 96,5A2,36 $ 0.00 111. Certifications: Market Cost Value $ 96,523.23 $ 96,523.23 96,523.23 96,523.23 Cash Disbursements (19.13) Ending Cash Balance 06/30/15 $ 96,523.23 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 Polley 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, 2015. 71re as� u re r Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances June 30, 2015 Year Year to date to date 14115 13114 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 1,614 1,570 Professional services 1,591 155 Miscellaneous expenditures Total Expenditures 3,205 1,726 Excess of revenues over (under) expenditures (3,205) (1,725) Fund Balances: Beginning of fiscal year 99,728 101,453 Excess of revenues over (under) expenditures (3,206) (1,725) End of fiscal year 96,623 99,728 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT July 31, 2015 I. Funds Heid by Authority: Cash Bank of America - Checking Total Funds Held by Authority IL Cash Flow Transactions: Beginning Cash Balance Cash Fund 07/01/15 Receipts General Fund $ 96,523.23 $ 0.00 Ill. Certifications: Market Cost Value $ 96,503.57 $ 96,503.57 96,503.57 96,503.57 Cash Disbursements Ending Cash Balance 07/31/15 (19.66) $ 96,503.57 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, 2016. Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances July 31, 2015 Year to date 16116 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 20 Professional services Miscellaneous expenditures Total Expenditures 20 Excess of revenues over (under) expenditures (20) Fund Balances: Beginning of fiscal year 96,623 Excess of revenues over (under) expenditures (20) End of fiscal year 96,504 Year to date 14116 1,614 1,691 3,205 (3,205) 99,728 (3,205) 96,623 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT August 31, 2015 i. Funds Held by Authority: Cash Bank of America • Checking Total Funds Held by Authority II. Cash Flow Transactions: Beginning Cash Balance Cash Fund 08/01/15 Receipts General Fund $ 96,603.57 $ 0.00 III, Certifications: Market Cost Value $ 96,484.43 $ 96,484.43 96,484.43 96,484.43 Cash Disbursements (19.14) Ending Cash Balance 08131(16 $ 98,484.43 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 29, 2016. Judy R. LancTTster Treasurer Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances August 31, 2015 Year Year to date to date 15/16 14115 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 39 1,614 Professional services 1,591 Miscellaneous expenditures Total Expenditures Excess of revenues over (under) expenditures 39 3,206 Fund Balances: Beginning of fiscal year 96,523 99,728 Excess of revenues over (under) expenditures End of fiscal year (39) (3,205) 96,484 96,523 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT September 30, 2015 1, Funds Held by Authority: Cash Bank of America - Checking Market Cost Value 96,465.39 $ 96,465.39 Total Funds Held by Authority 96,465.39 96,465.39 Ii. Cash Flow Transactions: Beginning Ending Cash Balance Cash Cash Cash Balance Fund 09/01/15 Receipts Disbursements 09/30/16 General Fund $ 96,484.43 $ 0.00 (19.04) $ 96,465.39 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 March 31, 22018. 4."Z V J . L caster ea rer Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances September 30, 2015 Year Year to date to date 15!16 14116 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 58 1,614 Professional services 1,591 Miscellaneous expenditures Total Expenditures 58 3,205 Excess of revenues over (under) expenditures (58) (3,205} Fund Balances: Beginning of fiscal year 96,523 99,728 Excess of revenues over (under) expenditures (58) (3,205) End of fiscal year 96,465 98,523 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT October 31, 2015 I. Funds Held by Authority: Cash Bank of America - Checking Total Funds Held by Authority II. Cash Flow Transactions: General Fund Ill. Certifications: Beginning Cash Balance 10/01/15 $ 96,465.39 Cash Receipts $ 0.00 Market Cost Value $ 96,445.82 96,445.82 Cash .Disbursements (19.57) $ 96,445.82 96,445.82 finding Cash Balance 10/31!15 $ 96,445.82 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 March 31, 2016. ,6 rrti..'. �l Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances October 31, 2015 Year Year to date to date 15116 14115 Revenues: Contributions from member agencies Total Revenues. Expenditures: Legal services Financial services 77 1,614 Professional services 1,591 Miscellaneous expenditures Total Expenditures 77 3,205 Excess of. revenues over (under) expenditures (77) (3,2051 Fund Balances: Beginning of fiscal year 96;523 99,728 Excess of revenues over (under) expenditures (77) (3,205) End of fiscal year 96;446 96,623 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT November 30, 2015 I. Funds Held by Authority: Cash Bank of America - Checking Total Funds Held by Authority II. Cash Flow Transactions: Beginning Cash Balance Fund 11/01/15 General Fund • $ 98,445.82 III. Certifications: Cash Receipts $ 0.00 Cost $ 94,951.77 84,851.77 Cash Disbursements (1,494.05) Market Value $ 94,951.77 94,951.77 Ending Cash Balance 11/30/15 $ 94,951.77 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 May 31, 2016. / f g Will �� J r Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances November 30, 2018 Year Year to date to date 16116 14115 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 96 1,614 Professional services 1,475 1,591 Miscellaneous expenditures Total Expenditures 1,571 3,205 Excess of revenues over (under) expenditures Fund Balances: Beginning of fiscal year 96,523 99,728 Excess of revenues over (under) expenditures (1,571) (3,205) End of fiscal year 94,952 96,523 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT December 31, 2015 1. Funds Heid by Authority: Cash Bank of America - Checking Total Funds Held by Authority II. Cash Flow Transactions: Beginning Cash Balance Cash Fund 12/01/15 Receipts General Fund $ 94,951.77 $ 0.00 III, Certifications: Market Cost Value $ 94,931.89 $ 94,931.89 Cash Disbursements (18.88) 94,931.89 94,831.89 Ending Cash Balance 12/31/15 $ 94,931.89 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 June 30, 2018. .� i� IPgo Tres Hermanos Conservation Authority statement of Revenues, Expenditures and Changes in Fund Balances December 31, 2016 Year Year to date to date 16116 14116 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 116 1,614 Professional services 1,476 1,591 Miscellaneous expenditures Total Expenditures 1,591 3,205 Excess of revenues over (under) expenditures (1,691) (3,205) Fund Balances: Beginning of fiscal year 96,623 99,728 Excess of revenues over (under) expenditures (1,691) (3,205) End of fiscal year 94,932 96,623 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT January 31, 2016 I. Funds Held by Authority: Cash Bank of America - Checking Total Funds Held by Authority it. Cash Flow Transactions: Market Cost Value $ 94,892.70 $ 94, 882.70 94,892.70 94,892.70 Beginning Ending Cash Balance Cash Cash Cash Balance Fund 01101/16 Receipts Disbursements 01/31/16 General Fund $ 94,931.69 $ 0.00 (39.19) $ 94,892.70 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, 2016. ijr �i9d* Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances January 31, 2016 Year to date 15116 Revenues: Contributions from member agencies Total Revenues Expenditures: Legal services Financial services 156 Professional services 1,475 Miscellaneous expenditures Total Expenditures 1,631 Excess of revenues over (under) expenditures (1,631) Fund Balances: Beginning of fiscal year 96,523 Excess of revenues over (under) expenditures (1,631) End of fiscal year 94,893 Year to date 14115 1,614 1,591 3,205 (3,205) 99,728 (3,205) 96,523 TRES HERMANOS CONSERVATION AUTHORITY TREASURER'S REPORT February 29, 2016 1. Funds Held by Authority: Cash Bank of America - Checking Market Cost Value $ 94,689.46 $ 94,689.46 Total Funds Held by Authority 94,689.46 94,889.48 ll. Cash Flow Transactions: Beginning Ending Cash Balance Cash Cash Cash Balance Fund 02/01/16 Receipts Disbursements 02/29/16 General Fund $ 94,892.70 $ 0.00(203.24) $ 94,689.46 111. 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 August 31, 2016. WL 1.a��%iY� &,, caster Treasurer Tres Hermanos Conservation Authority Statement of Revenues, Expenditures and Changes in Fund Balances . February 29, 2016 Revenues: Contributions from member agencies Total Revenues Year to date 16116 Year to date 14118 Expenditures: Legal services Financial services 195 Professional services 1,639 Miscellaneous expenditures Total Expenditures 1,834 Excess of revenues over (under) expenditures (1,834) Fund Balances: Beginning of fiscal year 96,523 Excess of revenues over (under) expenditures (1,834) End of fiscal year 94,689 1,614 1,591 3,205 (3,205) 99,728 (3,205) 96,523 TRES HERMANOS CONSERVATION AUTHORITY STAFF REPORT Agenda No. 3.4 Date: May 16, 2016 To: Chairman and Members of the Tres Hermanos Conservation Authority From: James DeStefano, Executive Director Subject: Receive and File — Independent Auditor's Report for Fiscal Year Ending June 30, 2015 Recommendation: That the Authority receive and file the Independent Auditor's Report for the Fiscal Year ending June 30, 2015. 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 Year ending June 30, 2015, Recommended by: Konradt Bartlam, Deputy Executive Director Attachment Respectfully submitted by: TRES HERMANOS CONSERVATION AUTHORITY FINANCIAL STATEMENTS JUNE 30, 2015 TRES HERMANOS CONSERVATION AUTHORITY JUNE 30, 2015 TABLE OF CONTENTS Page Number AUTHORITY OFFICIALS..........................................................................................................I.............. 1 INDEPENDENTAUDITORS' REPORT................................................................................................... 2 BASIC FINANCIAL STATEMENTS: Statement of Net Position and Governmental Fund Balance Sheet .................................................. 4 Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance ............................ ......................................................... Notes to Basic Financial Statements................................................................................................. 6 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Schedule...................................................................................................... 8 Notes to Required Supplementary Information.................................................................................. 9 TRES HERMANOS CONSERVATION AUTHORITY JUNE 30, 2015 AUTHORITY OFFICIALS Art Bennett Chairman Carol Herrera Vice Chairman Konradt Bartlam Executive Director James DeStefano Deputy Executive Director Tommye Cribbens Secretary Judy R. Lancaster Treasurer/Auditor Nancy A. Lyons Delegate (Alternate) Cynthia Moran Delegate Vacant General Counsel f 0 G 0 • Davf 1 E. Hale, CPA, CFP • Deborah A. Harper, CPA rs, ® 0) LS • Donald G. Slater, CPA • Gary A. Cates, CPA 41 r'r • Richard K Ouch], CPA • Michael 0. Mangold, CPA • Susan R Matz, CPA • David S. Myers, CPA CERTIFIED PUBLIC ACCOUNTANTS • Bryan S. Gruber CPA INDEPENDENT AUDITORS' REPORT To the Board of Directors Tres Hermanos Conservation Authority Diamond Bar, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, and the general fund of the Tres Hermanos Conservation Authority, (the Authority) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fait 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 6e error. Auditor's Responsibility Our responsibility is to express opinions 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 the standards applicable to financial audits contained in 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 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 opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and the general fund of the Tres Hermanos Conservation Authority, as of June 30, 2015, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Lance, Sall & Lunghard, LLP 203 North Brea Boulevard • Suite 203 - Brea, CA 92821 • TEL 714.672.0022 • Fax 714.672.0331 www.lslopas.com Orange Counly Temecula Valley Silicon Valley LSE 000 DOG 0 CERTRTEO PUULIC ACCOUIRAUTS To the Board of Directors Tres Hermanos Conservation Authority Diamond Bar, California Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Budgetary Comparison Schedule Information for the General Fund as listed in the table of contents be presented to supplement the basic financial statements. Such 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 the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the Budgetary Comparison Schedule Information for the General Fund in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with' management's response to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted the 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 8, 2015, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance. -�4, �-44d, Brea, California December 8, 2015 TRES HERMANOS CONSERVATION AUTHORITY STATEMENT OF NET POSITION AND GOVERNMENTAL FUND BALANCE SHEET JUNE 30, 2016 Assets: Cash and cash equivalents Total Assets Fund Balances/Net Position: Fund Balances: Unassigned: Total Fund Balances Net Position: Unrestricted Total Net Position See Notes to Financial Statements 4 General Statement of Fund Adjustments Net Position $ 96,523 $ - $ 96,523 $ 96,523 - 96,623 $ 96,523 (96,523) $ 96,623 (96,623) 96,523 96,523 $ 96,523 $ 96,623 TRES HERMANOS CONSERVATION AUTHORITY STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2015 Expenditures]Expenses: General government: Auditing services Financial services Total Expenditures/Expenses Fund Balances/Net Position: Beginning of Year End of Year See Notes to Financial Statements 5 General Statement of Fund— Adjustments Activities — $ 3,023 $ - $ 3,023 3,206 3,205 99,728 99,728 $ 96,623 $ $ 96,623 TRES HERMANOS CONSERVATION AUTHORITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2015 1. 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 basic 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 or Diamond Bar. b. Government -Wide and Fund Financial Statements The government -wide financial statements (Statements of Net Position 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 is 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. Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted — net position and unrestricted — net position in the government -wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted — net position to have been depleted before unrestricted — net position is applied. 0 TRES HERMANOS CONSERVATION AUTHORITY NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2015 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. Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. d. Assets, Liabilities and Net Position 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 position and governmental fund balance sheet. Functional Classification Expenditures of the Authority are classified as general government. e. Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position and governmental fund balance sheet will sometimes report a separate section for deferred outflows of resources, This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority has no items that qualify for reporting in this category. In addition to liabilities, the statement of net position and governmental fund balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Authority has no items that qualify for reporting in this category. Note 2: Cash and Cash Equivalents Demand Deposits At June 30, 2015, the carrying amount of the Authority's deposits was $96,523 and the bank balance was $96,523. TRES HERMANOS CONSERVATION AUTHORITY BUDGETARY COMPARISON SCHEDULE YEAR ENDED JUNE 30, 2015 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 99,728 $ 99,728 $ 99,728 $ - Amounts Available for Appropriations 99,728 99,728 99,728 - Charges to Appropriations (Outflow): General government: Legal services 10,000 10,000 - 10,000 Auditing services 3,000 3,000 3,023 (23) Financial services 56,000 56,000 182 55,818 Total Charges to Appropriations 69,000 69,000 3,205 65,795 Budgetary Fund Balance, June 30 $ 30,728 $ 30,728 $ 96,523 $ 65,795 TRE8HERMANO8CONSERVATION AUTHORITY NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2016 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, Date: May 11, 2016 To: Chairman and Members of the Tres Hermanos Conservation Authority c From: James DeStefano, Executive Di 9F --e Subject: Confirmation of Appointments Recommendation: Ratify appointments. Background/Analysis: On an annual basis both Mayor's of the cities of Chino Hills and Diamond Bar appoint members to the Tres Hermanos Conservation Authority. Once notified of the appointment or re -appointment of the delegates, the Tres Hermanos Conservation Authority Board ratifies the appointments. 14000 City Center Drive Chino Hills, CA 91709 December 10, 2015 (909) 364-2600 James DeStefano, City Manager City of Diamond Bar 21810. Copley Drive Diamond Bar, California 91765-4178 Dear Mr. DeStefano: RE: TRES HERMANOS CONSERVATION AUTHORITY At their regular meeting held December 8, 2015, the City Council of the City of Chino Hills re -appointed Mayor Art Bennett and appointed Vice Mayor Ray Marquez as delegates to the Tres Hermanos Conservation Authority. Please direct meeting agendas to our City Council email address citycouncil(@,chinghills.org or to our mailing address below. This will ensure meetings are calendared accordingly for our representatives. Should you have any questions, please feel free to call me at (909) 364-2620. Very truly yours, CITY OF CHINO HILLS cc Tommye Cribbin's, -City Clerk C4eaw'd- Art Bennett ® Ed M. Graham ® Ray Marquez - Cynthia Moran ® Peter J. Rogers Nancy A. Lyons Mayor Jimmy Lin Mayor Pro Tern Carol Herrera Council Member Ruth M. Low Council Member Steve Tye Council Member December 16, 2015 7 T- 21810 Copley Drive - Diamond Bar, CA 91765-4178 (909) 839-7000 e Fax (909) 861-3117 www.DiamondBarCA.gov James DeStefano, Executive Director Tres Hermanos Conservation Authority c/o City of Diamond Bar 21810 Copley Drive Diamond Bar, California 91765 Dear Mr. DeStefano: 1, Tommye Cribbins, City Clerk of the City of Diamond Bar, hereby certify that, at a Regular Meeting of the Diamond Bar City Council held on December 15, 2015, Council Member Carol Herrera was designated to serve as the Delegate and Council Member Ruth M. Low was designated to serve as Alternate to the Tres Hermanos Conservation Authority. Tommy Anne Cribbins, City Clerk City of Diamond Bar TRES HERMANOS CONSERVATION AUTHORITY Agenda No. 5.1 STAFF REPORT Date: May 16, 2016 To: Chairman and Members of the Tres Hermanos Conservation Authority From: James DeStefano, Executive Director Subject: AUTHORIZE THE SELECTION OF CITIZENS BUSINESS BANK AS THE AUTHORITY'S BANKING SERVICES PROVIDER Recommendation: That the Authority authorize Citizens Business Bank to provide banking services for the Authority, and assign the authorized signers on the Authority's bank account as follows: Carol Herrera, Chairperson James DeStefano, Executive Director Konradt Bartlam, Deputy Executive Director Judy R. Lancaster, Treasurer Background/Analysis: Since formation of the Authority, banking services have been provided by Bank of America. It is recommended that banking services be transitioned from Bank of America to Citizens Business Bank (CBB) for the reasons shown below: • Bank of America charges high account maintenance fees ($20/month) for a business checking account. • Bank of America charges exorbitant additional fees for ancillary services such as emailing a copy of the bank statement ($20 per email). • No local contact or account representative is available for assistance or questions regarding account - must contact call center. • Obtaining information from the Bank of America call center is difficult as they will only give information to an authorized signer. • Online access is not available unless the individual is a signer on the account. • There is a long lag time to receive the bank statement (usually received via US mail around the 14th of the month for the prior month). The balance in the Authority's Bank of America business checking account as of April 30, 2016, was $96,058.06. The monthly fee to maintain the non-interest bearing account averages $20.00 per month. The Authority has minimal activity, typically issuing only one check per year for the payment of annual audit services. DATE: MAY 16, 2016 PAGE 2 SUBJECT: AUTHORIZE THE SELECTION OF CITIZENS BUSINESS BANK AS THE AUTHORITY'S BANKING SERVICES PROVIDER The potential savings is expected to be a minimum of $240.00 per year, with the likelihood of being significantly greater ($100 or more) when considering the extra fees Bank of America charges for ancillary services as shown above. Additionally, by changing financial institutions, this will enable the Authority's assigned officers to better manage the Authority's resources through "view only" online access as well as the convenience of having local account representatives available to assist and service the account as needed. Recommended by: C = Konradt Bartlam, Deputy Executive Director Respectfully submitted by: -0 04 J y. La caster, Treasurer/Auditor