HomeMy WebLinkAbout011520 - THCA - Agenda - Regular MeetingTRES HERMANOS CONSERVATION AUTHORITY
BOARD OF DIRECTORS REGULAR MEETING
JANUARY 15, 2020 AGENDA
6:00p.m.
CITY OF INDUSTRY
COUNCIL CHAMBER
15651 E. STAFFORD STREET
CITY OF INDUSTRY, CALIFORNIA
1. CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
Cory Moss, Chair
Steve Tye, Vice-Chair
Nancy Lyons, Board Member
Cathy Marcucci, Board Member
Ray Marquez, Board Member
Peter Rogers, Board Member
Newell Ruggles, Board Member
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. REORGANIZATION OF THE BOARD OF DIRECTORS
RECOMMENDED ACTION: Select a Chair and Vice-Chair.
4. CONSENT CALENDAR:
4.1 Consideration of the Minutes of the November 20, 2019 regular meeting
RECOMMENDED ACTION: Approve as submitted.
Copies of staff reports or other written documentation relating to agenda items are on file in the Office of the City
Clerk at Industry City Hall, and are available for public inspection. If requested, the agenda will be made available
in an alternative format to a person with disability as required by Section 202 of the Americans with Disabilities Act
of 1990. If you have questions regarding an agenda item, please contact the Authority Secretary at {626) 333-2211
during regular business hours.
In an effort to comply with the requirements of Title II of the Americans with Disabilities Act of 1990, the Tres
Hermanos Conservation Authority requires that any person in need of any type of special equipment, assistance or
accommodation(s) in order to communicate at a public meeting, must inform the Authority Secretary a minimum
of 72 hours prior to the scheduled meeting.
1383679.1
January 15, 2020 PAGE2 THCA Agenda
4.2 Consideration to approve the Treasurer's Report for the months of
October 2019 and November 2019
RECOMMENDED ACTION: Receive and file Report.
4.3 Consideration to approve the check register for the months of October
2019 and November 2019
RECOMMENDED ACTION: Receive and file Report.
5. OLD BUSINESS:
There is none.
6. NEW BUSINESS:
6.1 Consideration of Residential Rental Agreement for Dwelling Unit located
at Assessor's Parcel Number (APN) 1000-031-15-0000
RECOMMENDED ACTION: Authorize the execution of
Residential Rental Agreement with Ms. Cherie Wood.
6.2 Annual Financial Statements for the fiscal year ending June 30, 2019
RECOMMENDED ACTION: Receive and file the Annual
Financial Statements for the fiscal year ending June 30, 2019.
7. AUTHORITY DIRECTOR COMMENTS:
8. ADJOURNMENT: The next regular Tres Hermanos Conservation Authority
Meeting will be Wednesday, February 19, 2019 at 6:00p.m.
TRES HER MANOS CONSERVATION AUTHORITY
ITEM NO. 4.1
TRES HERMANOS CONSERVATION AUTHORITY
REGULAR BOARD OF DIRECTORS MEETING MINUTES
CITY OF INDUSTRY, CALIFORNIA
NOVEMBER 20, 2019
PAGE 1
CALL TO ORDER
The Regular Meeting of the Tres Hermanos Conservation Authority, Board of Directors,
was called to order by Chair Cory C. Moss at 6:00 p.m. in the City of Industry Council
Chamber, 15651 East Stafford Street, California.
FLAG SALUTE
The flag salute was led by Chair Moss.
PRESENT: Cory C. Moss, Chair
Carol Herrera, Vice Chair
Cathy Marcucci, Board Member
Ray Marquez, Board Member
Peter Rogers, Board Member
Newell Ruggles, Board Member
Steve Tye, Board Member
STAFF PRESENT: Troy Helling, Executive Director; Tracy Egoscue, General Counsel;
Dan Fox, Deputy Executive Director; and Julie Robles, Authority Secretary.
PUBLIC COMMENTS
There were none.
CONSENT CALENDAR
3.1 CONSIDERATION OF THE MINUTES OF THE SEPTEMBER 18, 2019
REGULAR MEETING
3.2 CONSIDERATION TO APPROVE THE TREASURER'S REPORT FOR THE
MONTH OF AUGUST 2019 AND SEPTEMBER 2019
3.3 CONSIDERATION TO APPROVE THE CHECK REGISTER FOR THE MONTH
OF AUGUST 2019 AND SEPTEMBER 2019
TRES HERMANOS CONSERVATION AUTHORITY
REGULAR BOARD OF DIRECTORS MEETING MINUTES
CITY OF INDUSTRY, CALIFORNIA
NOVEMBER 20, 2019
PAGE2
Board Member Tye asked to pull item 3.3 for discussion.
MOTION BY BOARD MEMBER MARQUEZ, AND SECOND BY BOARD MEMBER
ROGERS TO APPROVE ITEMS 3.1 AND 3.2 OF THE CONSENT CALENDAR.
MOTION CARRIED 7-0, BY THE FOLLOWING VOTE:
AYES:
NOES:
ABSENT
ABSTAIN
BOARD MEMBERS:
BOARD MEMBERS:
BOARD MEMBERS:
BOARD MEMBERS:
MARCUCCI, MARQUEZ, ROGERS,
RUGGLES, TYE, V/C HERRERA,
C/MOSS
NONE
NONE
NONE
Discussion ensued regarding multiple issues within Item 3.3 of the check register. City
Manager said he would come back with answers to these questions.
MOTION BY BOARD MEMBER TYE, AND SECOND BY BOARD MEMBER MARQUEZ
TO APPROVE ITEM 3.3, OF THE CONSENT CALENDAR. MOTION CARRIED 7-0, BY
THE FOLLOWING VOTE:
AYES: BOARD MEMBERS:
NOES:
ABSENT
ABSTAIN
BOARD MEMBERS:
BOARD MEMBERS:
BOARD MEMBERS:
OLD BUSINESS
There is none.
MARCUCCI, MARQUEZ, ROGERS,
RUGGLES, TYE, V/C HERRERA,
C/MOSS
NONE
NONE
NONE
TRES HERMANOS CONSERVATION AUTHORITY
REGULAR BOARD OF DIRECTORS MEETING MINUTES
CITY OF INDUSTRY, CALIFORNIA
NOVEMBER 20, 2019
PAGE3
NEW BUSINESS
5.1 Discussion and direction regarding property tax bills for Los Angeles and San
Bernardino Counties
RECOMMENDED ACTION: Authorize staff on reducing the property
tax bills by working with Los Angeles County and San Bernardino County staff and
if needed authorize staff to pay the property tax bills.
Executive Director, Troy Helling, provided a staff report and explained that in working with
the Los Angeles and San Bernardino Counties, we have confirmed that the Authority is
tax exempt, therefore no payment was due and this issue has been resolved. No action
was needed and no vote was necessary.
6. AUTHORITY DIRECTOR COMMENTS:
Mr. Helling suggested cancelling the December 181h meeting due to the holidays. It was
agreed upon to cancel the December meeting. The next regular Tres Hermanos
Conservation Authority Meeting will be Wednesday, January 15, 2019 at 6:00p.m.
7. ADJOURNMENT
There being no further business, the Tres Hermanos Conservation Authority (THCA)
Regular Board of Directors meeting adjourned at 6:09p.m.
JULIE ROBLES
AUTHORITY SECRETARY
CORY C. MOSS
CHAIR
TRES HER MANOS CONSERVATION AUTHORITY
ITEM NO. 4.2
TRES HERMANOS CONSERVATION AUTHORITY
STAFF REPORT
Date: January 15, 2020
To: Chair and Board of Directors
From: Troy Helling, Executive Director ~
AGENDA NO. 11.2
Subject: Treasurer's Report for the Months of October and November 2019
Recommendation:
That the Authority receive and file the Treasurer's Reports for the months of October and
November 2019 .
Background/Analysis:
Pursuant to the Amended and Restated Tres Hermanos Conservation Authority Joint
Powers Agreement Section 5.3 Accounts, the Treasurer must verify and report in
writing, at least quarterly, the amount of money held for the Authority, the amount of
interest earnings, revenues, and expenditures since the last report.
Attached for your information are the Treasurer's Reports for the months of October and
November 2019.
Respectfully submitted,
$~
Christina Buhagiar
Treasurer
Attachments
Reviewed by,
~
Executive Director
Tres Hermanos Conservation Authority
Treasurer's Report
For the Month Ended October 31, 2019
Description
Cash and Cash Equivalents
Citizens Business Bank -Premium Money Market
Total Investment Portfolio
I Blended Yield of Cash and Investments
Benchmarks:
LA IF
6mo U.S. Treasury
2yr U.S . Treasury
5yr U .S . Treasury
$
$
Cost Value
130,857
130,857
0.05%1
2.19%
1.57%
1.52%
1.51%
Market Value
$ 130,857
$ 130,857
Interest/
Book Maturity %of
Yield Date Portfolio
0 .05% n/a 100.00%
100.00%
1 hereby certify that the investments are in compliance with the investment policy adopted by the the Board of Directors. The
investment portfolio provides sufficient funds to meet the budgeted expenditures over the next six months . This report meets the
requirements of Government Code Section 53646.
Christina Buhagiar
Treasurer
Tres Hermanos Conservation Authority
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Month Ended October 31, 2019
Revenues:
Investment interest
Rental income
Contributions from member agencies
Reimbursements
Total Revenues
Expenditures:
Professional Services
Legal services
Office Supplies & Software
Security services
Weed Abatement
Insurance
Pest control
Utilities
Bank Charges & Fees
Total Expenditures
Excess of revenues over (under) expenditures
Fund Balances:
Beginning of fiscal year
Excess of revenues over (under) expenditures
End of fiscal year
Fund Balances by City:
Chino Hills
Diamond Bar
Industry
Total Fund Balances by City
$
$
October
2019
6
625
631
3,306
2,725
1,900
1,786
9,717
{9,086}
*1 The ending fund balance in the amount of $125,268 includes $5,589.55 in outstanding checks that are not
included in the bank balance of $130,857.
Fiscal Year
To Date
2019/20
$ 23
2,500
57,978
22
60,523
4,892
31,136
829
16,275
29,192
1,500
9,750
6,674
32
00,280
$ (39,757)
$ 165,025
(39,757)
$ 125,268
$ 40,726
39,159
45,382
$ 125,268 *1
Tres Hermanos Conservat ion Authority
Treasurer's Report
For the Month Ended November 30, 2019
Description
Cash and Cash Equivalents
Citizens Business Bank -Premium Money Market
Total Investment Portfolio
!Blended Yield of Cash and Investments
Benchmarks:
LA IF
6mo U.S. Treasury
2yr U.S. Treasury
5yr U.S. Treasury
$
$
Cost Value
121,302
121,302
0.05%1
2.10%
1.63%
1.61%
1.62%
Market Value
$ 121,302
$ 121,302
Interest/
Book Maturity %of
Yield Date Portfolio
0.05% n/a 100 .00%
100.00%
I hereby certify that the investments are in compliance with the investment policy adopted by the the Board of Directors. The
investment portfolio provides sufficient funds to meet the budgeted expenditures over the next six months . This report meets the
requirements of Government Code Section 53646 .
Treasurer
Tres Hermanos Conservation Authority
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Month Ended November 30, 2019
Revenues:
Investment interest
Rental income
Contributions from member agencies
Reimbursements
Total Revenues
Expenditures:
Professional Services
Legal services
Office Supplies & Software
Security services
Weed Abatement
Insurance
Pest control
Utilities
Taxes & Licenses
Bank Charges & Fees
Total Expenditures
Excess of revenues over (under) expenditures
Fund Balances:
Beginning of fiscal year
Excess of revenues over (under) expenditures
End of fiscal year
Fund Balances by City:
Chino Hills
Diamond Bar
Industry
Total Fund Balances by City
November
2019
$ 5
625
$
630
1,829
1 '138
2,856
657
310
6,790
(6,160)
1. The ending fund balance in the amount of $119,109 includes $2,193.65 in outstanding checks that are not
included in the bank balance of $121,302.
Fiscal Year
To Date
2019/20
$ 28
3,125
57,978
22
61 '153
6,721
32,274
829
19,131
29,192
1,500
9,750
7,330
310
32
107,069
$ (45,916)
$ 165,025
(45,916)
$ 119,109
$ 38,673
37,106
43,330
$ 119,109 1
TRES HER MANOS CONSERVATION AUTHORITY
ITEM NO. 4.3
TRES HERMANOS CONSERVATION AUTHORITY
STAFF REPORT
D a te : January 15, 2020
To : Chair and Board of Directors
Fro m : Troy Helling, Executive Director (t/-
S ubj e ct: Check Register
Recommendation:
AGENDA NO. 4.3
That the Authority receive and file the check registers for the months of October and
November 2019 .
B ackground/ Anal ys is:
Pursuant to the Amended and Restated Tres Hermanos Conservation Authority Joint
Powers Agreement Section 5.2 Disbursements, the check register of the Authority should
be periodically reviewed by the Board. Attached for your review are the check registers
for the months of October and November 2019.
Respectfully submitted, Reviewed by,
~
Christina Buhagiar
Treasurer T ~ ExecUNe irector
Attachments
Tres Hermanos Conservation Authority JPA
Transaction List by Vendor
October 2019
Date Check# Vendor Memo/Description Amount
10/3/19 ACH Southern California Edison Electricity usage -September 2019 -
Commercial $ (104.77)
10/3/19 ACH Southern California Edison Electricity usage-September 2019-
Domestic (58.99)
10/17/19 1087 Frontier Phone-October 2019 (54.88)
10/17/19 1088 City of Industry-Trash Trash Services -September 2019
Weed Abatement -Roll offs (1 '134.52)
10/17/19 1089 Industry Security Services, Inc. Security-September 2019
Vehicle Fuel usage-08/21/19-09/19/19 (2,724.43)
10/17/19 ACH SoCaiGas Gas usage-September 2019 (49.53)
10/31/19 1090 Janus Pest Management, Inc Squirrel Treatment -09/04/19 & 09/18/19 (1 ,900.00)
10/31/19 1091 Woodruff, Spradlin & Smart Voided -due to error
10/31/19 1092 Woodruff, Spradlin & Smart Legal Services -September 2019 (3,306.20)
10/31/19 1093 City of Chino Hills -Water Water usage -09/11/19 -1 0/15/19 (383.35)
Total $ (9,716.67)
Date Check#
11/8/19 ACH
11/8/19 ACH
11/8/19 ACH
11/19/19 1094
11/19/19 1095
11/22/19 1096
11/22/19 1097
11/22/19 1098
11/22/19 1099
Tres Hermanos Conservation Authority JPA
Transaction List by Vendor
November 2019
Vendor Memo/Description
SoCaiGas Gas usage-October 2019
Southern California Edison Electricity usage -October 2019 -Domestic
Southern California Edison Electricity usage-October 2019 -Commercial
Egoscue Law Group, Inc. Legal Services-October 2019
Lance, Soli & Lunghard, LLP FY 2018-19 Audit
Frontier Phone-November 2019
Industry Security Services, Inc. Security -October 2019
Vehicle Fuel usage -09/20/19 - 1 0/18/19
City of Industry-Trash Trash Services -October 2019
Weed Abatement -Roll offs
CA Dep ofT ax & Fee Admin Water Rights FY 2019-20
$
Total $
Amount
(61.98)
(12.10)
(59.01)
(1,137.50)
(1 ,829.00)
(54.88)
(2,855.72)
(468.76)
(309.77)
(6,788.72)
TRES HER MANOS CONSERVATION AUTHORITY
ITEM NO. 6.1
TRES HERMANOS CONSERVATION AUTHORITY AGENDA NO. 6.1
STAFF REPORT
Date:
To :
From:
Subject:
Recommendation:
January 15, 2020
Chair and Board of Directors
Troy Helling, Executive Director 4
Consideration of Residential Rental Agreement for Dwelling Unit
Located at Assessor's Parcel Number (APN) 1000-031-15-0000
It is recommended that the Authority authorize the execution of Residential Rental
Agreement with Ms. Cherie Wood.
Background/Discussion:
Within Tres Hermanos Ranch : there is one single-family residence, which has been
occupied by Ms. Cherie Wood for approximately 19 years. Her observation,
watchfulness, and regular drives through the property are beneficial for maintaining the
2,500 acre ranch. Further, her substantial knowledge of the history, natural setting, and
operations is an asset for the Tres Hermanos Conservation Authority (hereinafter
''THCA") and ensures that the tenant has an understanding and acceptance of the unique
rural environment that they will occupy.
Ms. Cherie Wood is interested in remaining on the premises under THCA's new
ownership and a new rental agreement (Attachment 1) has been prepared for Board
consideration. The following summarizes some of the major rental agreement
provisions:
• Term: month-to-month
• Rent amount: $675 per month or $8,100 annually (this amount was determined
by increasing her current rent payment of $625 by the maximum allowed under
State law).
• Future rent increases: pursuant to Assembly Bill 1482, the rent amount may
increase on an annual basis by 5 percent (5%) plus the percentage change in
the cost of living or 10 percent (1 0%), whichever is lower.
• Utilities: Tenant is responsible for payment of all utility services (e.g. electricity,
gas, water, garbage/waste collection services and telephone services).
• Stock: Tenant may keep a maximum of ten (1 0) stock animals (e.g. cows and
horses) at any one time .
• Insurance: Tenant is responsible for maintaining a policy of insurance providing
protection against all risk to personal harm and property damage and include
liability insurance.
Fiscal Impact:
Revenue will be generated from rental income in the amount of $675 per month or $8,100
annually and the cost of utilities being transferred from THCA to the tenant would result
in an estimated annual cost savings of $2,000.
Exhibit:
A. Tres Hermanos Conservation Authority Residential Rental Agreement
TH:bh
EXHIBIT A
Residential Rental Agreement
[Attached]
TRES HERMANOS CONSERVATION AUTHORITY
RESIDENTIAL RENTAL AGREEMENT
This Residential Rental Agreement ("Agreement") is entered into as of
______ , by and between the Tres Hermanos Conservation Authority, a joint
powers agency ("Landlord"), and Cherie Wood, an individual ("Tenant"). Landlord hereby
rents to Tenant the dwelling unit located at Assessor's Parcel Number (APN) 1000-031-
15-0000 (the "Premises"). Landlord and Tenant are hereinafter referred to collectively as
the "Parties".
Section 1. Term. The term of this Agreement is month-to-month.
Section 1.1. Termination by Tenant. Tenant may terminate this
Agreement by giving written notice to Landlord at least 30-days prior to the
intended termination date.
Section 1.2. Termination by Landlord. Landlord may terminate this
Agreement for "just cause" by giving written notice as provided by law. Before
Landlord issues a notice to terminate a tenancy for just cause that is a curable
lease violation Landlord will first give notice of the violation to Tenant with an
opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the
Code of Civil Procedure. If the violation is not cured within the time period set forth
in the notice, a three-day notice to quit without an opportunity to cure may
thereafter be served to terminate the tenancy.
Section 2. Premises Possession. Tenant has been in possession of the
Premises since 2001 in conjunction with the acquisition, by Mr. Russ Wood, of a permit
agreement covering use of certain real property known as "Tres Hermanos Ranch."
Section 2.1. Non-Exclusive Access. This Agreement rents to Tenant the
dwelling unit located at APN 1000-031-15-0000. In addition, Tenant shall have
non-excusive access to the entire 2,500-acre Tres Hermanos Ranch. Such non-
exclusive access to the Tres Hermanos Ranch by Tenant is at the sole discretion
of the Landlord. Landlord hereby reserves the right to access, limit access, and/or
lease any or all of the real property of the Tres Hermanos Ranch during the term
of this Agreement excluding the Premises (i.e., dwelling unit located at APN 1000-
031-15-0000) of this Agreement.
Section 3. Rent. The gross per-month rental rate for the Premises is $675.00.
Tenant agrees to pay to Landlord as rent for the use and occupancy of the Premises the
sum of $675.00 per month. This rental amount includes applicable possessory interest
tax. The rent is payable to Landlord in advance on or before the first day of each month,
at the address specified in this Agreement for the service of notices on Landlord or at any
other place designated by Landlord in a written notice served on Tenant. Any check
rejected for payment by the bank shall be subject to a $25 fee for the first check and $35
for subsequent rejected checks. Any payment of rent after the third day of each month
shall be subject to a late fee of 5% of the rent amount.
Section 3.1. Tenant Protection Act of 2019 Notice. California law limits
the amount your rent can be increased. See Section 1947.12 of the Civil Code for
more information. California law also provides that after all of the tenants have
continuously and lawfully occupied the property for 12 months or more or at least
one of the tenants has continuously and lawfully occupied the property for 24
months or more, a landlord must provide a statement of cause in any notice to
terminate a tenancy. See Section 1946.2 of the Civil Code for more information.
Section 3.2. Rent Increase. At the sole and absolute discretion of the Tres
Hermanos Conservancy Authority Board of Directors, the rent amount may
increase on an annual basis by 5 percent (5%) plus the percentage change in the
cost of living or 10 percent (10%), whichever is lower. The Board may impose
rental increases by an amount not to exceed 5 percent (5%) plus the percentage
change in the cost of living, or 10 percent (1 0%), whichever is lower, of the lowest
gross rental rate charged for the Premises at any time during the 12 months prior
to the effective date of the increase. The gross rental rate for the Premises shall
not be increased in more than two increments over that 12-month period. In
determining the lowest gross rental amount pursuant to this section, any rent
discounts, incentives, concessions, or credits offered by the owner of such unit of
residential real property and accepted by the tenant shall be excluded. Tenant shall
receive notice of any rent increase as required under State law.
Section 4. Utilities. Tenant is responsible for arranging all utility services and
agrees to pay all charges for all utilities, including but not limited to electricity, gas, water,
garbage/waste collection services and telephone services, used in or on the Premises
during the term of this Agreement.
Section 5. Occupancy of the Premises. Only the persons referred to in this
Agreement as "Tenant" may occupy the Premises. Tenant must report within ten (10)
working days any change to the composition of the household. Tenant may allow a guest
or visitor for a period not exceeding fourteen (14) consecutive days or a total of thirty (30)
cumulative calendar days during any twelve (12) month period.
Section 6. Use of the Premises. Tenant agrees that the Premises are to be
used exclusively for residential purposes. Tenant may not do or permit anything to be
done in or about the Premises that will in any way obstruct or interfere with the rights of
occupants of neighboring buildings or injure or annoy them or use or allow the Premises
to be used for any improper, unlawful or objectionable purpose. Further, Tenant may not
do or permit anything to be done in or about the Premises or bring or keep anything in
the Premises that will in any way increase the existing rate of or affect any fire or other
insurance on the premises or any part of it or any of its contents. Tenant may not put the
Premises to any use that violates local zoning ordinances or any other law. Tenant shall
not commit or permit waste or nuisance in or about the Premises.
Section 7. Condition of Premises. Tenant acknowledges that Tenant has
inspected the Premises and agrees that they are in satisfactory condition and good
working order. Tenant must remedy, at Tenant's cost and expense, any deterioration of
or injuries to the Premises occasioned by Tenant's lack of ordinary care. Tenant shall be
responsible for maintaining the premises in a clean and sanitary condition.
Section 8. Maintenance. Tenant shall properly use, operate and safeguard
Premises, including if applicable, any landscaping, furniture, furnishings and appliances,
and all mechanical, electrical, gas and plumbing fixtures, and keep them and the
Premises clean, sanitary and well ventilated. Tenant shall be responsible for checking
and maintaining all smoke detectors and any additional phone lines beyond the one line
and jack that Landlord shall provide and maintain. Tenant shall immediately notify
Landlord, in writing, of any problem, malfunction or damage. Tenant shall be charged for
all repairs or replacements caused by Tenant, pets, guests or licensees of Tenant,
excluding ordinary wear and tear. Tenant shall be charged for all damage to Premises as
a result of failure to report a problem in a timely manner.
Section 9. Pets. Tenant must obtain approval from Landlord for the keeping and
maintenance of pets, subject to the following: (a) Tenant shall not permit any noise from
pets audible from the property line for more than fifteen (15) continuous minutes; (b)
Tenant shall not permit noises from pets when such noise is not followed by a minimum
of thirty (30) minutes of silence; and (c) Tenant shall keep yards free from animal waste.
Unless otherwise provided in California Civil Code §54.2, or other applicable law, no
animal or pet shall be kept on or about the Premises without Landlord's prior written
consent, except the following:
NAME
Tootsie
Section 9.1. Stock. At any one time, Tenant may keep a maximum of ten
(1 0) stock animals within the Premises.
Section 10. Alterations and Repairs. The Parties agree that the following
provisions govern all alterations and repairs of the premises by Tenant:
(a) Tenant may make no alterations to the Premises without the prior
written consent of Landlord. Any alteration made to the premises by Tenant after that
consent has been given, and any fixtures installed as a part of that work, will at Landlord's
option become the Landlord's property on the expiration or earlier termination of this
Agreement, provided, however, that Landlord has the right to require Tenant to remove
any fixtures at Tenant's cost on termination of this Agreement.
(b) Tenant shall notify Landlord in writing of any defective conditions on
the Premises that require repairs. If Landlord fails to repair or arrange for the repair of
the condition within a reasonable time (not exceeding 30 days), Tenant may make the
repairs or arrange for them to be made and deduct the cost of the repairs, provided Tenant
does not deduct more than the equivalent of one month's rent.
Section 11. Insurance. Tenant, at Tenant's own expense, shall procure and
continue in force at all times during the term of this lease a policy of insurance providing
protection against all risk to personal harm and property damage, and include liability
insurance. Tenant must provide Landlord with written proof of insurance coverage
annually.
Section 12. Entry by Landlord. Landlord may enter the premises only under the
following circumstances:
(a) In case of emergency.
(b) To make necessary or agreed repairs, decorations, alterations, or
improvements; supply necessary or agreed services;
(c) To exhibit the Premises to prospective or actual purchasers,
mortgagees, tenants, workers; or to provide entry to contractors or workers who
are to perform work on the Premises; or to conduct an initial inspection before the
end of the tenancy;
(d) If Tenant abandons or surrenders the Premises;
(e) Pursuant to court order;
(f) To inspect the physical condition of the Premises;
(g) To determine compliance with this Agreement;
(h) To exhibit the Premises to prospective or actual purchasers,
mortgagees, tenants, workers, or contractors or to make an
inspection pursuant to subdivision (f) of Section 1950.5 of the Civil
Code; and
(i) To inspect the Premises no more than two times per year.
Landlord will give Tenant at least 24 hours' notice of Landlord's intent to enter the
Premises unless (1) an emergency exists, (2) Tenant has abandoned or surrendered the
Premises, (3) it is impracticable to do so; or (4) if the purpose of entry is a move-out
inspection regarding possible security deposit deductions, then Landlord will give Tenant
at least 48 hours' notice. Further Landlord will enter only during normal business hours
unless (1) an emergency exists, (2) Tenant has abandoned or surrendered the premises,
or (3) Tenant consents, at the time of an entry that is not during normal business hours,
to the entry.
Section 13. Locks and Keys. Tenant may not change or add any lock to the
Premises without obtaining Landlord's prior written consent and without providing
Landlord with a key to the changed or added lock.
Section 14. Assignment and Subletting. Tenant may not assign this Agreement
or sublet all or any portion of the Premises. Any assignment or subletting will be void and
may, at Landlord's option, terminate this Agreement.
Section 15. Surrender of Premises. Upon the termination of this Agreement,
Tenant must quit and surrender the Premises in as good a condition as they were at the
commencement of this Agreement, reasonable use and wear thereof and damages by
the elements excepted.
Section 16. Default by Tenant. Any breach by Tenant of a condition, covenant,
or provision of this Agreement will constitute a material breach. For any curable violation
of this Agreement by Tenant, Landlord may give notice of the violation to Tenant with an
opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the Code of
Civil Procedure. If the violation is not cured within the time period set forth in the notice,
a three-day notice to quit without an opportunity to cure may thereafter be served to
terminate the tenancy.
Section 17. Notices. Except as otherwise expressly provided by law, any and all
notices or other communications required or permitted by this Agreement or by law to be
served on or given to either party to this Agreement by the other party must be in writing
and will be deemed to be served when personally delivered to the party to whom the
notice is directed or, in lieu of personal service, when deposited in the United States mail,
first-class postage prepaid, addressed to Tenant at the Premises or to Landlord at 15625
East Stafford Street, Suite 100, City of Industry, California 91744. The Parties may
change their address for purposes of this section by giving written notice of the change
to the other party in the manner provided in this section.
Section 18. Megan's Law Disclosure. Notice: Pursuant to Section 290.46 of the
Penal Code, information about specified registered sex offenders is made available to the
public via an Internet Web site maintained by the Department of Justice at
www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will
include either the address at which the offender resides or the community of residence
and ZIP Code in which he or she resides.
Section 19. Proposition 65 and Lead Based Paint Hazards Notice. The
Premises may contain at least one of the following chemical(s) known to the State of
California to cause cancer or reproductive toxicity and for which warnings are now
required. These chemicals include but are not limited to: carbon monoxide and gasoline
components. More information on specified exposures is available at
http://www.oehha.ca.gov/prop65.html. Further, the Premises have been tested for Lead-
Based Paint and a Lead-Based Paint Disclosure Form is included as an addendum to this
Agreement.
Section 20. Waiver. The waiver by Landlord of any breach by Tenant of any of
the provisions of this Agreement will not constitute a continuing waiver or a waiver of any
subsequent breach by Tenant either of the same or of another provision of this
Agreement. Landlord's acceptance of rent following a breach by Tenant of any provision
of this Agreement, with or without Landlord's knowledge of the breach, will not be deemed
to be a waiver of Landlord's right to enforce any provision of this Agreement.
Section 21. Attorney Fees. If any legal action or proceeding arising out of or
relating to this Agreement is brought by either party, the prevailing party will be entitled to
receive from the other party, in addition to any other relief that may be granted, the
reasonable attorney fees, costs, and expenses incurred in the action or proceeding by
the prevailing party, in an amount not to exceed One Thousand Dollars ($1 ,000.00).
Section 22. Binding on Heirs and Successors. This Agreement is binding on
and will inure to the benefit of the heirs, executors, administrators, successors, and
assigns of Landlord and Tenant; provided, however, that nothing in this section may be
construed as a consent by Landlord to any assignment of this Agreement or any interest
in it by Ten ant.
Section 23. Time of Essence. Time is expressly declared to be of the essence
in this Agreement.
Section 24. Integrated Agreement. This instrument is the full, complete, sole,
final, and exclusive agreement of the Parties concerning the matters covered by this
Agreement and the rights granted and duties undertaken as between the Parties. There
is no other agreement between the Parties respecting the subject matter of this
Agreement or the rights, duties, promises, and undertakings of the Parties. Any
statement, representation, promise, or undertaking made prior to or contemporaneously
with the execution of this Agreement is void and of no effect, or will be held to have
merged or been superseded by the terms and conditions of this Agreement. Any
statement, promise, or representation made to or by any party, or made to or by an
employee, attorney, agent or representative of any party, respecting the matters set forth
in this Agreement will not be valid or binding as to these Parties unless it is specifically
contained in this Agreement. Any oral representation, modification, or change concerning
this Agreement, or the terms or conditions of this Agreement, will be of no force and effect.
Modifications to this Agreement must be in writing and signed by the parties to this
Agreement.
Section 25. Enforceability. If any term or provision of this Agreement or the
application thereof to any person or circumstance shall, to any extent, be invalid or
unenforceable, then such term or provision shall be amended to, and solely to, the extent
necessary to cure such invalidity or unenforceability, and in its amended form shall be
enforceable. In such event, the remainder of this Agreement, or the application of such
term or provision to persons or circumstances other than those as to which it is held invalid
or unenforceable, shall not be affected thereby, and each term and provision of this
Agreement shall be valid and be enforced to the fullest extent permitted by law.
Section 26. Governing Law. This Agreement shall be governed and construed
in accordance with the laws of the State of California without regard to principles of
conflicts of laws. Venue for any cause of action shall be Los Angeles County, California.
Section 27. Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same instrument.
Section 28. Authority. Each person executing this Agreement hereby represents
and warrants (i) their authority to do so, and (ii) that such authority has been duly and
validly conferred.
LANDLORD
By ________________________ __
Cory Moss,
Chairperson
Tres Hermanos Conservation Authority
TENANT
By ________________________ __
Cherie Wood
Disclosure of Information on Lead~Based Paint and/or Lead-Based Paint Hazards
Lead Warning Statement
Housing built before 7978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose
health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant
women. Before renting pre-1978 housing, lessors must disclose the presence of known lead-based paint and/or
lead-based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet on lead
poisoning prevention.
lessor's Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) X Known lead-based paint and/or lead-based paint hazards are present in tl1e housing
(explain).
Interior: Entry wooden beams on ceiling; some of the tiled surfaces in the bathroom baseboards (most likely in the glazing or the matrix of the tile self)
Exterior: window wells on aluminum windows; window well and sash on casement window at bedroom 2 closet; wooden walls; rafters; vents on s uth side
(ii) __ Lessor has no knowledge of lead-based paint and/or lead-based paint hazards in the
housing.
(b) Records and reports available to the lessor (check (i) or (ii) below):
(i) X Lessor has provided the lessee with all available records and reports pertaining to
lead-based paint and/or lead-based paint hazards in the housing (list documents
below).
(1) Lead-Based Paint Inspection Report of Single Family Residence APN 1000-021-14 & 1000-031-15,
November 2, 2019
(ii) __ Lessor has no reports or records pertaining to lead-based paint and/or lead-based
paint hazards in the housing.
lessee's Acknowledgment (initial)
(c) Lessee has received copies of all information listed above.
(d) Lessee 11as received the pamphlet Prated Your Family from Lead in Your Home.
Agent's Acknowledgment (initial)
(e) Agent has informed the lessor of the lessor's obligations under 42 U.S.C. 4852(d) and
is aware of his/her responsibility to ensure compliance.
Certification of Accuracy
Tile following parties have reviewed the information above and certify, to the best of their knowledge, that
tile information they have provided is true and accurate.
Lessor Date Lessor Date
Lessee Date Lessee Date
Agent Date Agent Date
TRES HER MANOS CONSER VAT/ON AUTHORITY
ITEM NO. 6.2
TRES HERMANOS CONSERVATION AUTHORITY
STAFF REPORT
D a te : January 15, 2020
To: Chair and Board of Directors
From: Troy Helling, Executive Director -Jif
Subject: Annual Financial Statements
Recommendation:
AGENDA NO . ....6.-2
That the Authority receive and file the Annual Financial Statements for the fiscal year
ending June 30, 2019.
Ba c kground/Anal y sis:
Pursuant to the Amended and Restated Tres Hermanos Conservation Authority Joint
Powers Agreement Section 3.8 Treasurer, the Treasurer shall cause an independent
audit to be made by a certified public accountant in compliance with Section 6505 of the
Government Code.
Attached for your information is the Annual Financial Statements for the fiscal year ending
June 30, 2019 .
Respectfully submitted,
Christina Buhagiar
Treasurer
Attachments
Reviewed by,
Ls~ .... •••• ••
CPAs /\ND /\DVISORS
TRES HERMANOS
CONSERVATION AUTHORITY
JUNE 30, 2019 FINANCIAL STATEMENTS
Focused
on YOU
TRES HERMANOS
CONSERVATION AUTHORITY
FINANCIAL STATEMENTS
JUNE 30, 2019
TRES HERMANOS CONSERVATION AUTHORITY
JUNE 30, 2019
TABLE OF CONTENTS
Page
Number
AUTHORITY OFFICIALS ......................................................................................................................... i
INDEPENDENT AUDITORS' REPORT ................................................................................................... 1
BASIC FINANCIAL STATEMENTS:
Statement of Net Position and Governmental Fund Balance Sheet ................................................. 3
Statement of Activities and Governmental Fund Revenues,
Expenditures and Changes in Fund Balance .................................................................................... 4
Notes to Financial Statements ........................................................................................................... 5
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule ...................................................................................................... 8
Notes to Required Supplementary Information ................................................................................. 9
TRES HERMANOS CONSERVATION AUTHORITY
JUNE 30, 2019
AUTHORITY OFFICIALS
Cory Moss Chairman
Carol Herrera Vice Chairman
Catherine Marcucci Board Member
Ray Marquez Board Member
Peter Rogers Board Member
Newell Ruggles Board Member
Steve Tye Board Member
Ls~ .... •••• ••
CPAs AND ADV I SORS
To the Board of Directors
INDEPENDENT AUDITORS' REPORT
Tres Hermanos Conservation Authority
Diamond Bar, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the general
fund information of the Tres Hermanos Conservation Authority (the Authority) as of and for the year ended
June 30, 2019 , 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 fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design , implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express 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.
203 N Brea Blvd. Suite 203 I Brea, CA 92821 I Phone 714 672 0022
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To the Board of Directors
Tres Hermanos Conservation Authority
Diamond Bar, California
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 information of the
Tres Hermanos Conservation Authority as of June 30, 2019, 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.
Other Matters
Required Supplementary Information
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.
Accounting principles generally accepted in the United States of America require that the budgetary
comparison schedule of the Tres Hermanos Conservation Authority 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 financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 29, 2019 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.
Brea, California
October 29, 2019
2
TRES HERMANOS CONSERVATION AUTHORITY
STATEMENT OF NET POSITION AND GOVERNMENTAL FUND BALANCE SHEET
JUNE 30, 2019
Assets:
Cash and cash equivalents
Capital assets
Total Assets
Liabilities, Fund Balance/Net Position:
Liabilities:
Accounts payable
Total Liabilities
Fund Balance:
Unassigned
Total Fund Balance
Total Liabilities and Fund Balance
Net Position:
Unrestricted
Total Net Position
See Notes to Financial Statements
General
Fund
$ 165,024
$ 165,024
$ 21,305
21,305
143,719
143,719
$ 165,024
3
Statement of
Adjustments Net Position
$ $ 165,024
41,650,000 41,650,000
41,650,000 41,815,024
21,305
21,305
(143,719)
(143,719)
41,793,719 41,793,719
$ 41,793,719 $ 41,793,719
TRES HERMANOS CONSERVATION AUTHORITY
STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 2019
Revenues:
Member contributions
Rental income
Investment income
Reimbursements
Total Revenues
Expenditures/Expenses:
General government:
Professional services
Legal services
Legal services -extraordinary
Contractual services
Security services
Office supplies and software
Utilities
Total Expenditures/Expenses
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Capital contribution
Total Other Financing Sources (Uses)
Changes in net position
Fund Balances/Net Position:
Beginning of Year
$
General
Fund
209,591
2,849
132
756
213,328
18,067
5,729
71,105
15,954
47,432
152
3,557
161,996
51,332
51,332
92,387
End of Year $ 143,719
See Notes to Financial Statements 4
Adjustments
$
41,650,000
41,650,000
41,650,000
$ 41,650,000
Statement of
Activities
$ 209,591
2,849
132
756
213,328
18,067
5,729
71,105
15,954
47,432
152
3,557
161,996
51,332
41,650,000
41,650,000
41,701,332
92,387
$ 41,793,719
TRES HERMANOS CONSERVATION AUTHORITY
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Note 1:
I. SIGNIFICANT ACCOUNTING POLICIES
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.
On February 6, 2019, the Authority amended and restated its agreement with the
City of Industry pursuant to a Settlement Agreement. The City of Industry purchased the
Tres Hermanos Ranch from the Successor Agency to Industry's Urban Development
Agency. The City of Chino Hills and Diamond Bar contributed 10% of the purchase of the
land. With the new agreement, each City will pay an equal one-third share of the cost for
reasonable annual and recurring maintenance of the Ranch to be specified in the annual
budget approved by the Authority. The Board consists of seven voting Directors: three from
Industry, two from Chino Hills and two from Diamond Bar. Directors must be at all times
holding office on a Member's City Council. Attendance by a majority of the Directors at a
meeting, which majority must include at least one Director from each Member, shall
constitute a quorum for the purpose of transacting business relating to the Authority.
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, Diamond Bar, or City of Industry.
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.
5
TRES HERMANOS CONSERVATION AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 1: Organization and Summary of Significant Accounting Policies (Continued)
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.
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.
6
TRES HERMANOS CONSERVATION AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2019
Note 2:
Note 3:
Note 4:
Note 5:
Cash and Cash Equivalents
Demand Deposits
At June 30, 2019, the carrying amount of the Authority's deposits was $165,024 and the
bank balance was $165,024.
Capital Assets
The City of Industry purchased the Ranch from the Successor Agency to Industry's Urban-
Development Agency in the amount of $41 ,650, 000. As part of the Settlement Agreement, Chino
Hills and Diamond Bar contributed to the purchase 10% of the purchase price.
Maintenance Cost Member Share
Contributions include an equal one-third payment from each member for the reasonable annual
and recurring maintenance of the Ranch, for insurance, legal costs, and administration costs of
the Authority and a reasonable reserve as established by the Board. Each member shall
contribute a Maintenance Cost Member Share in the amount of $100,000 each year.
In fiscal year 2018-2019, the City of Industry contributed $100,000 and the cities of Chino Hills
and Diamond Bar each contributed $54,796 as stated in the joint powers agreement. The
agreement states that any funds held by the joint powers authority pursuant to the 1999
Agreement shall be transmitted to the Treasurer for the Authority. Those funds shall be used to
satisfy the obligations of Diamond Bar and Chino Hills in the fiscal year 2018-2019. Each City
was credited with 50% of the remaining balance of $90,409.
Related Party Transactions
At June 30, 2019, the Authority paid the City of Industry $621 for trash services and $934 to the
City of Chino Hills for water services.
7
TRES HERMANOS CONSERVATION AUTHORITY
BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 $ 92,387 $ 92,387 $ 92,387 $
Resources (Inflows):
Member contributions 209,591 209,591
Rental income 2,850 2,849 (1)
Interest income 150 36 132 96
Reimbursements 601 756 155
Amounts Available for Appropriations 92,537 305,465 305,715 250
Charges to Appropriations (Outflow):
General government:
Professional services 2,100 19,527 18,067 1,460
Legal services 6,900 5,729 1 '171
Legal services -extraordinary 80,400 71 '105 9,295
Contractual services 26,136 15,954 10,182
Security services 46,700 47,432 (732)
Office supplies and software 282 152 130
Utilities 3,727 3,557 170
Total Charges to Appropriations 2,100 183,672 161,996 21,676
Budgetary Fund Balance, June 30 $ 90,437 $ 121,793 $ 143,719 $ 21,926
8
TRES HERMANOS CONSERVATION AUTHORITY
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2019
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.
9