HomeMy WebLinkAbout2021.04.21 - THCA - Agenda - Regular MeetingCopies of staff reports or other written documentation relating to agenda items are on file in the Office of the City Clerk
at Diamond Bar 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 (909) 839-7010 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 .
TRES HERMANOS CONSERVATION AUTHORITY
BOARD OF DIRECTORS REGULAR MEETING
APRIL 21, 2021 AGENDA
6:00 p.m.
CITY OF DIAMOND BAR
21810 COPLEY DR.
DIAMOND BAR, CALIFORNIA
Chair, Ray Marquez
Vice-Chair, Cathy Marcucci
Board Member, Nancy Lyons
Board Member, Cory Moss
Board Member, Peter Rogers
Board Member, Newell Ruggles
Board Member, Steve Tye
Addressing the Authority:
NOTICE OF TELEPHONIC MEETING:
Pursuant to Section 3. of Executive Order N-29-20, issued by Governor Newsom on March
17, 2020, the regular meeting of the Tres Hermanos Conservation Authority shall be held
telephonically.
How to Observe the Meeting:
Members of the public who wish to listen ONLY may join the meeting by calling the
following conference call number: +1 (562) 247-8422 and entering the Access Code: 308-
434-203.
How to Submit Public Comment:
Members of the public may provide public comment by sending written comments to the
Authority Clerk by email at cityclerk@DiamondBarCA.gov by 5:00 p.m. on the day of the
meeting. Please indicate in the Subject Line “FOR PUBLIC COMMENT.” Written
comments will be distributed to the Authority Directors and read into the record at the
meeting.
Alternatively, public comment may be submitted by logging onto the meeting through this
link: https://attendee.gotowebinar.com/register/6872419778404926476. Members of the
public will be called upon one at a time during the Public Comment portion of the agenda,
and will be asked to state their name and agenda item they wish to comment on.
APRIL 21, 2021 PAGE 2 THCA Agenda
1. CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
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 Minutes of the February 17, 2021 Regular Meeting.
Recommended Action:
Approve the February 17, 2021 Regular Tres Hermanos Conservatio n
Authority meeting minutes.
3.2 Warrants & Outgoing Wire Transfers.
Recommended Action:
That the Authority receive and file the warrants and outgoing wire
transfers for the months of January and February 2021.
3.3 Treasurer's Reports for the Months Ended January 31, 2021, and
February 28, 2021.
Recommended Action:
That the Authority receive and file the Treasurer's Reports for the months
ended January 31, 2021, and February 28, 2021.
3.4 Conflict of Interest Code Amendments
Recommended Action:
That the Authority review and approve the proposed amendments to the
Conflict of Interest Code and direct the Filing Officer to submit any
revisions to the Fair Political Practices Commission (FPPC) for adoption.
APRIL 21, 2021 PAGE 3 THCA Agenda
3.5 Statement of Investment Policy for Fiscal Year 2021-22
Recommended Action:
Adopt Resolution No. THCA 2021-02 entitled: A RESOLUTION OF THE
BOARD OF DIRECTORS OF THE TRES HERMANOS CONSERVATION
AUTHORITY ADOPTING THE STATEMENT OF INVESTMENT POLICY
FOR FISCAL YEAR 2021-22.
4. OLD BUSINESS:
There is none.
5. NEW BUSINESS:
5.1 Budget for Fiscal Year 2021-22
Recommended Action:
Adopt Resolution THCA No. 2021-03 entitled: A RESOLUTION OF THE
BOARD OF DIRECTORS OF THE TRES HERMANOS CONSERVATION
AUTHORITY, ADOPTING A BUDGET FOR FISCAL YEAR 2021-22.
6. AUTHORITY DIRECTOR COMMENTS:
7. ADJOURNMENT: The next regular Tres Hermanos Conservation Authority
meeting will be held on Wednesday, May 19, 2021 at 6:00 p.m.
TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 3.1
3.1
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TRES HERMANOS CONSERVATION AUTHORITY
STAFF REPORT
AGENDA NO. 3.1
Date: April 21, 2021
To: Chair and Board of Directors
From: Daniel Fox, Executive Director
Subject: Minutes of the February 17, 2021 Regular Meeting.
Recommendation:
Approve the February 17, 2021 Regular Tres Hermanos Conservation Authority
meeting minutes.
Background/Analysis:
Attached for Board review and approval are the minutes of the February 17, 2021 Tres
Hermanos Conservation Authority meeting.
Respectfully Submitted,
Reviewed By,
Attachments:
1. February 17, 2021 Tres Hermanos Conservation Authority Minutes
3.1
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TRES HERMANOS CONSERVATION AUTHORITY
REGULAR BOARD OF DIRECTORS MEETING MINUTES
DIAMOND BAR, CALIFORNIA
FEBRUARY 17, 2021
PAGE 1
CALL TO ORDER
The Regular Meeting of the Tres Hermanos Conservation Authority was called to order
by Chair Marquez at 6:00 p.m.
Chair Marquez stated that consistent with COVID-19 regulations, all Directors and staff
participated via teleconference and there was no ph ysical location for public attendance
and the Public was invited to join the meeting online or by phone at the numbers printed
on the agenda.
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Vice-Chair Marcucci.
ROLL CALL
PRESENT: Director Nancy Lyons
Director Cory Moss
Director Peter Rogers
Director Newell Ruggles
Director Steve Tye
Vice-Chair Cathy Marcucci
Chair Ray Marquez
ABSENT: None
Staff attending telephonically: Dan Fox, Executive Director; Ben Montgomery, Deputy
Executive Director; Troy Helling, Administrative Director; Christa Buhagiar, Authority
Treasurer; Josh Nelson, Industry Director of Public Works/City Engineer/Assistant City
Manager; Tracy Egoscue, Authority Counsel, and Kristina Santana, Authority Secretary.
PUBLIC COMMENTS
James Gallagher asked when the Authority would be considering the proposal for the
Red Bucket Horse Orphanage.
3.1.a
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TRES HERMANOS CONSERVATION AUTHORITY
REGULAR BOARD OF DIRECTORS MEETING MINUTES
DIAMOND BAR, CALIFORNIA
FEBRUARY 17, 2021
PAGE 2
3. CONSENT CALENDAR
3.1 CONSIDERATION OF THE MINUTES OF THE JANUARY 20, 2021
REGULAR MEETING.
RECOMMENDED ACTION: Approve the January 20,
2021 Regular Tres Hermanos Conservation Authority meeting minutes.
3.2 CONSIDERATION TO APPROVE THE CHECK REGISTER FOR THE
MONTH OF DECEMBER 2020.
RECOMMENDED ACTION: Approve the check register
for the month of December 2020.
3.3 CONSIDERATION TO APPROVE THE TREASURER’S REPORT FOR
THE MONTH OF DECEMBER 2020.
RECOMMENDED ACTION: Receive and file the
Treasurer’s Report for the month of December 2020.
3.4 CONSIDERATION TO APPROVE THE AUDITED FINANCIAL
STATEMENTS FOR FISCAL YEAR 2019-2020.
RECOMMENDED ACTION: Receive and file the
Audited Financial Statements for Fiscal Year 2019/2020.
MOTION BY DIRECTOR MOSS AND SECOND BY DIRECTOR ROGERS TO
APPROVE THE CONSENT CALENDAR. MOTION CARRIED 7-0 BY THE
FOLLOWING VOTE:
AYES: DIRECTORS: LYONS, MOSS, ROGERS, RUGGLES, TYE,
VC/MARCUCCI, CHAIR/MARQUEZ
NOES: DIRECTORS: NONE
ABSENT: DIRECTORS: NONE
ABSTAIN: DIRECTORS: NONE
4. OLD BUSINESS
There was none.
3.1.a
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TRES HERMANOS CONSERVATION AUTHORITY
REGULAR BOARD OF DIRECTORS MEETING MINUTES
DIAMOND BAR, CALIFORNIA
FEBRUARY 17, 2021
PAGE 3
5. NEW BUSINESS
5.1 CONSIDERATION OF MID-YEAR BUDGET REVIEW FOR FISCAL YEAR
2020-2021.
RECOMMENDED ACTION: Adopt Resolution No.
2021-01 approving a FY 2020/2021 Budget Amendment.
Authority Treasurer Christa Buhagiar provided a staff report.
MOTION BY VC/MARCUCCI AND SECOND BY DIRECTOR LYONS TO ADOPT
RESOLUTION NO. THCA 2021-01: A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE TRES HERMANOS CONSERVATION AUTHORITY
ADOPTING A BUDGET AMENDMENT FOR FISCAL YEAR 2020 -2021
INCREASING THE BUDGET BY $26,584 BASED ON THE MID-YEAR BUDGET
REVIEW. MOTION CARRIED 7-0 BY THE FOLLOWING ROLL CALL VOTE:
AYES: DIRECTORS: LYONS, MOSS, ROGERS, RUGGLES, TYE,
VC/MARCUCCI, CHAIR/MARQUEZ
NOES: DIRECTORS: NONE
ABSENT: DIRECTORS: NONE
ABSTAIN: DIRECTORS: NONE
5.2 CONSIDERATION OF ESTABLISHING A FUND BALANCE RESERVE.
RECOMMENDED ACTION: Establish a fund balance
reserve policy of 10% of expenditures.
Authority Treasurer Christa Buhagiar provided a staff report.
Director Ruggles asked if the Authority made payments for unanticipated items
that might occur in the future and Administrative Director Helling responded that
periodically, sheep and goats are brought in to mitigate the weeds.
Executive Director Fox explained that this item is intended to provide direction for
next fiscal year’s budget cycle. There have been additional expenses regarding
the rental property (repairs and equipment replacement) and as Administrative
Director Helling mentioned, weed abatement has been one of the biggest line
items for ongoing maintenance. To that end, he believes a 10 percent reserve is
conservative.
3.1.a
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TRES HERMANOS CONSERVATION AUTHORITY
REGULAR BOARD OF DIRECTORS MEETING MINUTES
DIAMOND BAR, CALIFORNIA
FEBRUARY 17, 2021
PAGE 4
MOTION BY DIRECTOR TYE AND SECOND BY DIRECTOR MOSS TO
ESTABLISH A FUND BALANCE RESERVE POLICY OF 10 PERCENT OF
EXPENDITURES TO BE PROGRAMMED INTO THE BUDGET ANNUALLY,
STARTING WITH FISCAL YEAR 2021-2022. MOTION CARRIED 7-0 BY THE
FOLLOWING ROLL CALL VOTE:
AYES: DIRECTORS: LYONS, MOSS, ROGERS, RUGGLES, TYE,
VC/MARCUCCI, CHAIR/MARQUEZ
NOES: DIRECTORS: NONE
ABSENT: DIRECTORS: NONE
ABSTAIN: DIRECTORS: NONE
6. AUTHORITY DIRECTOR COMMENTS:
Director Moss said it was nice to see and be with her colleagues again.
Director Rogers hoped that in the next couple of months the Authority would be
able to get together in person in Diamond Bar.
VC/Marcucci commented that it was nice to see everyone.
7. ADJOURNMENT: There being no further business, Chair Ray Marquez
adjourned the Tres Hermanos Conservation Authority at 6:12 p.m. to Wednesday,
March 17, 2021 at 6:00 p.m.
__________________________
RAY MARQUEZ
CHAIR
__________________________
KRISTINA SANTANA
AUTHORITY SECRETARY
3.1.a
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TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 3.2
3.2
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TRES HERMANOS CONSERVATION AUTHORITY
STAFF REPORT
AGENDA NO. 3.2
Date: April 21, 2021
To: Chair and Board of Directors
From: Daniel Fox, Executive Director
Subject: Warrants & Outgoing Wire Transfers.
Recommendation:
That the Authority receive and file the warrants and outgoing wire transfers for the
months of January and February 2021.
Background/Analysis:
Pursuant to the Amended and Restated Tres Hermanos Conservation Authority Joint
Powers Agreement Section 5.2 Disbursements, the warrants and wire transfers of the
Authority should be periodically reviewed by the Board. Attached for your review are the
warrants and outgoing wire transfers for the months of January and February 2021.
Respectfully Submitted,
Reviewed By,
Attachments:
1. Warrants and outgoing wire transfers Jan 2021
2. Warrants and outgoing wire transfers Feb 2021
3.2
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Date Check #Vendor Memo/Description Amount
1/11/21 1196 Egoscue Law Group, Inc Legal - Aug 2020 $ (962.50)
1/11/21 1197 Industry Security Services, Inc.Security - Nov 2020 (2,905.90)
1/11/21 1198 Egoscue Law Group, Inc Legal - Nov & Dec 2020 (1,050.00)
1/11/21 1199 City of Chino Hills Water - 11/10/20 - 12/8/20 (329.16)
1/21/21 1200 Lance, Soll & Lunghard, LLP FY 19-20 Audit fieldwork (1,880.00)
Total (7,127.56)$
Tres Hermanos Conservation Authority JPA
Warrants and Outgoing Wire Transfers
January 2021
3.2.a
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Date Check #Vendor Memo/Description Amount
2/1/21 1201 City of Chino Hills Water - 12/8/20 - 1/13/21 $ (361.38)
2/1/21 1202 City of Industry (LA County)Weed abatement/Pest control-Oct'20 (3,190.91)
2/1/21 1203 Industry Security Services, Inc. Security - Dec 2020 (3,007.84)
2/3/21 1204 Egoscue Law Group, Inc Legal - Jan 2021 (700.00)
2/3/21 ACH Citizens Business Bank Endorsement Stamp Pad (28.95)
2/4/21 1205 CNC Engineering Contractual Services-Dec 2020 (872.50)
*2/18/21 ACH LAIF Wire Transfer - CBB to LAIF (80,000.00)
2/18/21 ACH Citizens Business Bank Wire Transfer Fee (15.00)
Total (88,176.58)$
* Wire transfer made to Authority's investment account with LAIF
Tres Hermanos Conservation Authority JPA
Warrants and Outgoing Wire Transfers
February 2021
3.2.b
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TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 3.3
3.3
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TRES HERMANOS CONSERVATION AUTHORITY
STAFF REPORT
AGENDA NO. 3.3
Date: April 21, 2021
To: Chair and Board of Directors
From: Daniel Fox, Executive Director
Subject: Treasurer's Reports for the Months Ended January 31, 2021, and
February 28, 2021.
Recommendation:
That the Authority receive and file the Treasurer's Reports for the months ended
January 31, 2021, and February 28, 2021.
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 ended January
31, 2021, and February 28, 2021.
Respectfully Submitted,
Reviewed By,
Attachments:
1. Treasurer's Report-January 2021
2. Treasurer's Report -February 2021
3.3
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3.3.a
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Fiscal Year %
Budget Jan To Date of Budget
2020/21 2021 2020/21 Used
Revenues:
Investment interest -$ 164$ 269$ -
Rental income 8,100 675 4,725 58%
Contributions from member agencies 248,488 - 248,488 100%
Reimbursements - 31 188 -
Total Revenues 256,588 870 253,670 99%
Expenditures:
Professional Services 35,220 1,880 3,455 10%
Legal services 20,004 2,012 3,325 17%
Legal services - Extraordinary 66,000 - 1,205 2%
Contractual Services 113,559 - 31,371 28%
Security services 34,800 2,906 14,784 42%
Office Supplies & Software 2,005 - 777 39%
Utilities - 329 2,206 -
Total Expenditures 271,588 7,127 57,123 21%
Excess of revenues over (under) expenditures (15,000)$ (6,257)$ 196,547$
Fund Balances:
Beginning of fiscal year, Revised 41,584$
Excess of revenues over (under) expenditures 196,547
As of January 31, 2021 238,131$ A
Fund Balances by City:
Chino Hills 81,312$
Diamond Bar 62,557
Industry 94,262
Total Fund Balances by City 238,131$
A
Tres Hermanos Conservation Authority
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Month Ended January 31, 2021
Due to the accrual basis of reporting, the ending fund balance in the amount of $238,131 does not include a $31.44
Feb'21 revenue received in Jan'21, but is included in the bank balance of $238,163.
3.3.a
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3.3.b
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Fiscal Year %
Budget Feb To Date of Budget
2020/21 2021 2020/21 Used
Revenues:
Investment interest -$ 2$ 271$ -
Rental income 8,100 675 5,400 67%
Contributions from member agencies 248,488 - 248,488 100%
Reimbursements - 31 220 -
Total Revenues 256,588 708 254,379 99%
Expenditures:
Contractual Services 133,819 4,063 35,434 26%
Legal services 20,004 700 4,025 20%
Legal services - Extraordinary 66,000 1,205 2%
Security services 37,815 3,008 17,792 47%
Professional Services 35,220 3,455 10%
Office Supplies & Software 2,005 44 821 41%
Utilities 3,309 361 2,567 -
Total Expenditures 298,172 8,176 65,299 22%
Excess of revenues over (under) expenditures (41,584)$ (7,468)$ 189,080$
Fund Balances:
Beginning of fiscal year, Revised 41,584$
Excess of revenues over (under) expenditures 189,080
As of February 28, 2021 230,664$
Fund Balances by City:
Chino Hills 78,823$
Diamond Bar 60,068
Industry 91,773
Total Fund Balances by City 230,664$
Tres Hermanos Conservation Authority
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Month Ended February 28, 2021
3.3.b
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TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 3.4
3.4
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TRES HERMANOS CONSERVATION AUTHORITY
STAFF REPORT
AGENDA NO. 3.4
Date: April 21, 2021
To: Chair and Board of Directors
From: Daniel Fox, Executive Director
Subject: Conflict of Interest Code Amendments
Recommendation:
That the Authority review and approve the proposed amendments to the Conflict of
Interest Code and direct the Filing Officer to submit any revisions to the Fair Political
Practices Commission (FPPC) for adoption.
Background/Analysis:
Chapter 7, Article 3 of the Political Reform Act requires every agency to adopt and
promulgate a Conflict of Interest Code and Section 87303 of the Act sets forth the
process for approval of the Conflict of Interest Code by the Cod e Reviewing Body.
Every agency shall amend its Conflict of Interest Code, subject to the provisions of
Section 87303, when change is necessitated by changed circumstances, including the
creation of new positions. The FPPC is the Code Reviewing Body for multi-county
agencies.
The Executive Director and Filing Officer conducted a review of the current Conflict of
Interest Code which was adopted in 2002 and determined that an amendment is
necessary based on the following factors:
• Is the current Conflict of Interest Code more than five years old? The current
code although adopted in 2002 has been reviewed on a Biennial basis and until
now, no changes were necessary.
• Have there been any substantial changes to the agency's organizational
structure since the current Conflict of Interest Code was approved by the FPPC?
Yes, as reflected in the Amended and Restated Joint Powers Authority
agreement and recently adopted Bylaws.
• Have any positions been eliminated or renamed since the current Conflict of
Interest Code was approved by the FPPC? Yes, staff is proposing the elimination
of the secretary position as it is solely ministerial, manual, or clerical.
• Have any new positions been added since the current Conflict of Interest Code
was approved by the FPPC? Yes, new positions are being added.
The attached Code Revision packet has been forwarded to the FPPC for review and
final approval, however, staff is recommending that the Authority review and approve
3.4
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the recommended revisions to the Conflict of Interest Code and direct the Filing Officer
to submit additional changes (if any) to the FPPC for inclusion in the adopted code.
Once the FPPC concludes their review, all affected positions will be notified and
provided a 45-day comment period after which the FPPC will make its final approval.
Respectfully Submitted,
Reviewed By,
Attachments:
1. 2020 Biennial Notice
2. Conflict of Interest Code Revision Packet
3.4
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3.4.a
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CONFLICT OF INTEREST CODE FOR THE
TRES HERMANOS CONSERVATION AUTHORITY
The Political Reform Act, Government Code Section 81000, et seq., requires state
and local government agencies to adopt and promulgate Conflict of Interest Codes. The
Fair Political Practices Commission has adopted a regulation, 2 Cal. Code of Reg. Section
18730, which contains the terms of a standard conflict of interest code. It can be
incorporated by reference and may be amended by the Fair Political Practices Commission
after public notice and hearings to conform to the amendments in the Political Reform Act.
Therefore, the terms of 2 Cal. Code of Regs. Section 18730 and any amendments to it
duly adopted by the Fair Political Practices Commission are hereby incorporated by
reference and, along with the attached Appendix in which members and employees are
designated and disclosure categories are set forth, constitute the Conflict of Interest Code
of the Tres Hermanos Conservation Authority.
Designated employees shall file statements of economic interests with the Authority
who will make the statements available for public inspection and reproduction (Gov. Code
Section 81008). Upon receipt of the statements of all designated positions, the Authority
shall make and retain a copy and forward the original to the Fair Political Practices
Commission.
Revised 06/25/02
3.4.b
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EXHIBIT"A"
DESIGNATED TRES HERMANOS CONSERVATION AUTHORITY
EMPLOYEES AND DISCLOSURE CATEGORIES
The following positions entail the making or participation in the making of decisions,
which may foreseeably have a material effect on financial interests:
Designated Position Disclosure Category
Alternate Board Director ........................................ 1
Board Director ................................................ 1
Executive Director ............................................. 1
Secretary ................................................... 2
Treasurer and Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
General Counsel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Consultant* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
·consultant
Consultants shall be included in the list of designated employees and shall disclose
pursuant to the broadest disclosure category in the code subject to the following limitation:
The Executive Director may determine in writing that a particular consultant, although a
"designated position," is hired to.perform a range of duties that is limited in scope and thus
is not required to comply fully with the disclosure requirements described in this section.
Such determination shall include a description of the consultant's duties and, based upon
that description, a statement of the extent of disclosure requirements. The Executive
Director's determination is a public record and shall be retained for public inspection in the
same manner and location as this Conflict of Interest Code.
Revised 06125102
3.4.b
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EXHIBIT "B"
CATEGORIES OF REPORTABLE ECONOMIC INTERESTS
Designated Persons in Category "1" Must Report:
All investments, interests in real property, income and any business entity in which
the person is a director, officer, partner, trustee, employee, or holds any position of
management. These financial interests are reportable only if located within and subject to
the jurisdiction of the Authority, or if the business entity is doing business or planning to do
business in an area subject to the jurisdiction of the Authority, or has done business within
an area subject to the jurisd iction of the Authority at any time during the two years prior to
the filing of the statement.
Designated Persons in Category "2" Must Report:
(a) Investments in any business entity which within the last two years has
contracted or in the future foreseeably may contract with the Authority.
(b) Income from any source which within the last two years has contracted or in
the future foreseeably may contract with the Authority.
(c) His or her status as a director, officer, partner, trustee, employee, or holder
of a position of management in any business entity which within the last two
years has contracted or in the future foreseeably may contract with the
Authority.
Revised 06125102
3.4.b
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This is the last page of the conflict of interest code for the Tres Hermanos Conservation
Authority.
CERTIFICATION OF FPPC AP PROV AL
Pursuant to Government Code Section 87303, the conflict of interest code for the Tres
Hermanos Conservation Authority was approved on October 17, 2002. The code will be
effective on November 15, 2002.
Md L----
Mark Krausse
Executive Director
Fair Political Practices Commission
3.4.b
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CONFLICT OF INTEREST CODE FOR THE
TRES HERMANOS CONSERVATION AUTHORITY
The Political Reform Act, Government code Section 81000, et seq., requires state
and local government agencies to adopt a promulgate Conflict of Interest Codes. The
Fair Political Practices Commission has adopted a regulation, 2 Cal. Code of Reg. Section
18730, which contains the terms of a standard Conflict of Interest Code. It can be
incorporated by reference and may be amended by the Fair Political Practices
Commission after public notice and hearings to conform to the amendments in the
Political Reform Act. Therefore, the terms of 2 Cal. Code of Regs. Section 18730 and
any amendment to it duly adopted by the Fair Political Practices Commission are hereby
incorporated by reference and, along with the attached Appendix in which members and
employees are designated and disclosure categories are set forth, constitute the Conflict
of Interest Code of the Tres Hermanos Conservation Authority.
Designated employees shall file statements of economic interests with the
Authority who will make the statements available for public inspection and reproduction
(Gov. Code Section 81008). Upon receipt of the statements of all designated positions,
the Authority shall make and retain a copy and forward the original to the Fair Political
Practices Commission.
3.4.b
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EXHIBIT "A"
DESIGNATED TRES HERMANOS CONSERVATION AUTHORITY
EMPLOYEES AND DISCLOSURE CATEGORIES
The following positions entail the making or participation in the making of
decisions, which may foreseeably have a material effect on financial interests:
Designated Position Disclosure Category
Administrative Director 1
Alternate Board Director 1
Board Director 1
Deputy Executive Director 1
Executive Director 1
Secretary 2
Treasurer and Auditor 21
General Counsel 1
Consultant* 1
*NEW POSITIONS AND CONSULTANTS:
New positions and consultants, pursuant to FPPC Reg. § 18734, must be included in the
list of designated employees upon determination of the Executive Director that the new
position or consultant effectively is acting as a designated employee. Such new positions
and consultants must disclose pursuant to the broadest disclosure in the Code unless,
the Executive Director determines that the broadest disclosure is not necessary and sets
disclosure that is more tailored to positions with a limited range of duties. The Executive
Director's determination must be in writing and must show that a particular new position
or consultant hired for a ‘designated position’ is performing a range of duties sufficient in
scope that the consultant or new employee effectively is acting as a designated
employee, and therefore must fully comply with the disclosure requirements described in
this Section. This determination shall include a description of the position's duties and
based upon that description, a statement of the extent of disclosure requirements.
Broadest disclosure shall be defined as Disclosure Categories 1. The Executive
Commented [CB1]: This is a new position for this Office.
The City Manager that is not serving as either the Executive
Director or Deputy Executive Director serves in this position
and provides assistance to the forementioned positions as
necessary and may serve as Executive Director in the
absence of both Executive and Deputy Executive Directors.
Commented [CB2]: This position is now required to file
statements of economic interests. This position is
authorized to perform all functions of the Executive Director
in the absence of the Executive Director.
Commented [CB3]: This position is solely ministerial,
manual, or clerical and does not have decision-making
authority.
Commented [CB4]: The Treasurer is assigned to the
broadest disclosure category, Category 1. This position will
frequently make or participate in making decision that may
have a material effect on all of the entities in all of the
required disclosure categories.
3.4.b
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Director's determination is a public record and must be retained for public inspection by
the Filing Officer in the same manner and location as this Conflict-of-Interest Code.
*Consultant
Consultants shall be included in the list of designated employees and shall disclose
pursuant to the broadest disclosure category in the code subject to the following limitation:
The Executive Director may determine in writing that a particular consultant, although a
"designated position,' is hired to perform a range of duties that is limited in scope and thus
is not required to comply fully with the disclosure requirements described in this section.
Such determination shall include a description of the consultant's duties and based upon
that description, a statement of the extent of disclosure requirements. The Executive
Director's determination is a public record and shall be retained for public inspection in
the same manner and location as this Conflict of interest Code.
3.4.b
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EXHIBIT "B"
CATEGORIES OF REPORTABLE ECONOMIC INTERESTS
Designated Persons in Category "1" Must Report:
All investments, interests in real property, income, and any business entity in which the
person is a director, officer, partner, trustee, employee, or holds any position of
management. These financial interests are reportable only if located within and subject
to the jurisdiction of the Authority, or if the business entity is doing business or planning
to do business in an area subject to the jurisdiction of the Authority or has done business
within an area subject to the jurisdiction of the Authority at any time during the two years
prior to the filing of the statement.
All investments, interests in real property, income, and any business entity in which
that person is a director, officer, partner, trustee, employee, or holds any position of
management. These financial interests are reportable only if located within and subject
to the jurisdiction of the Authority or has done business within an area subject to the
jurisdiction of the Authority at any time during the two years prior to the filing of the
statement.
Designated Persons in Category "2" Must Report:
(a) Investments in any business entity which within the last two years has
contracted or in the future foreseeably may contract with the Authority.
(b) Income from any source which within the last two years has contracted or
in the future foreseeably may contract with the Authority.
(c) His or her status as a director, officer, partner, trustee, employee, or holder
of a position of management in any business entity which within the last two
years has contracted or in the future foreseeably may contract with the
Authority.
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TRES HERMANOS CONSERVATION AUTHORITY
ORGANIZATIONAL CHART
BOARD OF
DIRECTORS
EXECUTIVE
DIRECTOR
TREASURER SECRETARY
DEPUTY
EXECUTIVE
DIRECTOR
ADMINISTRATIVE
DIRECTOR
GENERAL
COUNSEL
ALTERNATE
DIRECTORS
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BOARD MEMBERS
All powers of the Authority set forth are reserved to it and may be exercised by the Board, unless
otherwise limited by law.
A. To jointly exercise the common powers of the Members;
B. To make and enter into contracts, including but not limited to, contracting with other public
agencies for services, equipment, and related items;
C. To acquire, hold or dispose of all or any portion of the Ranch and other property by any lawful
means, including, without limitation, by gift, purchase, lease, or sale;
D. To determine and authorize all uses of the Ranch consistent with and subject to the Deed
Restriction and the general plan and zoning laws of the city in which the Ranch is located;
E. To incur debts, liabilities, or obligations, subject to the limitations specified in this Agreement
and, to the extent permitted by law, borrow funds on a temporary basis to meet operational
expenses until expected revenue is available for that purpose;
F. To the extent permitted by law, to enter into lease agreements, lease-purchase agreements,
licenses, or other financial arrangements extending beyond the current budgetary cycle,
necessary or convenient to the operation of the Authority so long as such agreement or financial
arrangements contain substantially the following provisions:
G. To invest any money in the treasury pursuant to Section 6505.5 of the Joint Powers Act that is
not required for the immediate needs. of the Authority, as the Board determines is advisable, in
the same manner and upon the same conditions as local agencies, pursuant to Government
Code section 53601;
H. To receive gifts, contributions, grants, and donations of property, funds, services, and other
forms of assistance from any person, firm, entity, corporation, or public agency;
I. To sue and be sued in its own name;
J. To adopt rules, regulations, policies, by-laws, and procedures consistent with the terms of this
Agreement for governing the operation of the Authority; and
K. To exercise any other power in the manner and according to the methods provided by
applicable laws, rules or regulations or this Agreement, subject only to the restrictions on the
manner of exercising such powers that may be applicable to the Members.
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TREASURER
The treasurer of the Authority shall hold the office of treasurer and auditor ("Treasurer"), in accordance
with Government Code section 6505.6, and shall perform the duties as authorized in Section 6505 et
seq. of the Government Code. The Treasurer shall cause an independent audit to be made by a certified
public accountant in compliance with Section 6505 of the Government Code. The certified public
accountant shall be annually appointed by the Board. The Treasurer shall keep all revenues of the
Authority in a separate account from any Member accounts, and, if available, an interest-bearing
account, and otherwise perform the duties and responsibilities of that office as specified in Sections
6505 et seq. of Government Code. Any surplus funds not immediately needed may be invested in
accordance with the investment policy annually adopted by the Board, as required by Government Code
section 53646, and consistent with Government Code sections 16429.1, 53601, 53635, and 53684, as
they may be amended. Any funds held by the joint powers authority pursuant to the 1999 Agreement
shall, upon the Effective Date, be transmitted to the Treasurer for the Authority and placed in the
Authority's account. Those funds shall be used to satisfy the obligations of Diamond Bar and Chino Hills
to fund Maintenance Costs (as defined in Section 4.1.A below). Diamond Bar and Chino Hills shall each
be credited with 50% of the transmitted funds, currently in the amount of $90,499.
LEGAL COUNSEL
The Board shall appoint an independent general counsel within six months of the Effective Date, which
independent legal counsel shall not provide or be providing any other legal services to any Member
without the express written approval by the Board.
EXECUTIVE DIRECTOR
The executive director of the Authority ("Executive Director") shall perform any duties necessary and
appropriate for the day-to-day management and operation of the Authority and award and execute
contracts in amounts set forth in this Agreement and as otherwise authorized by the Board. ·
DEPUTY EXECUTIVE DIRECTOR
The deputy executive director of the Authority ("Deputy Executive Director") is authorized to and shall
perform those functions of the Executive Director when the Executive Director is not available. The
Deputy Executive Director shall inform the Executive Director of all actions taken during the period of
the Executive Director's unavailability as soon as reasonably practicable.
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ADMINISTRATIVE DIRECTOR
An Administrative Director position is hereby created to provide for the administrative continuity and
efficiency of the Authority.
The City Manager that is not serving as either the Executive Director or Deputy Executive Director as
provided for in JPA Section 3.12 shall serve as the Administrative Director. The Administrative Director
shall provide assistance to the Executive and Deputy Executive Directors as necessary in the day-to-day
management and operation of the Authority and may serve as the Executive Director in the absence of
both the Executive and Deputy Executive Directors.
SECRETARY
The secretary of the Authority ("Secretary") shall provide notice of, prepare and post agendas for, and
keep minutes of, each regular, adjourned, and special meeting of the Board and other records, as
necessary, of the Board. The Secretary shall send a copy of the minutes to each Director and otherwise
perform the duties necessary to ensure compliance with provisions of law including, without limitations,
any applicable "open meeting law" such as the Ralph M Brown Act.
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TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 3.5
3.5
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TRES HERMANOS CONSERVATION AUTHORITY
STAFF REPORT
AGENDA NO. 3.5
Date: April 21, 2021
To: Chair and Board of Directors
From: Daniel Fox, Executive Director
Subject: Statement of Investment Policy for Fiscal Year 2021-22
Recommendation:
Adopt Resolution No. 2021-02 entitled: A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE TRES HERMANOS CONSERVATION AUTHORITY ADOPTING
THE STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2021 -22.
Background/Analysis:
Pursuant to the Amended and Restated Tres Hermanos Conservation Authority Joint
Powers Agreement Section 3.8 Treasurer, an investment policy will need to be annually
adopted by the Board of Directors, as required by the State of Califo rnia Government
Code section 53646, and consistent with Government Code sections 16429.1, 53601,
53635, and 53684, as they may be amended.
The following addition has been made to the Investment Policy (See Exhibit A) for
Fiscal Year 2021-22 and are illustrated in the attached redline version:
• Updated Section XI B. PROHIBITED INVESTMENTS AND TRANSACTIONS to
add language to align the Investment Policy with SB-998 that was enacted on
January 1, 2021, to ensure local agencies could secure their funds in safe
investments if negative yields started to occur in the United States. Only in
exigent circumstances and after all options have been exhausted, would the
Authority place funds into a negatively yielding investment.
Respectfully Submitted,
Reviewed By,
Attachments:
1. Resolution THCA No. 2021-02 - Investment Policy
3.5
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2. Exhibit A - Tres Hermanos Investment Policy - FY 21-22
3. Redlined Version - Exhibit A - Tres Hermanos Investment Policy - FY 21-22
3.5
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Page 1 of 2
RESOLUTION THCA NO. 2021-02
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TRES HERMANOS CONSERVATION AUTHORITY
ADOPTING THE STATEMENT OF INVESTMENT POLICY
FOR FISCAL YEAR 2021-22
WHEREAS, pursuant to the Amended and Restated Tres Hermanos Conservation
Authority Joint Powers Agreement Section 3.8, and as required by the State of California
Government Code Section 53646, an investment policy shall be adopted annually by the
Board of Directors.
NOW, THEREFORE, BE IT RESOLVED:
Section 1. Investments of the Authority’s funds for Fiscal Year 2021-22 shall be
made in accordance with the Authority’s Statement of Investment Policy attached to this
Resolution as Exhibit “A”.
Section 2. The policy adopted by this Resolution is in addition to and
supplements any other legal requirements.
Section 3. The Statement of Investment Policy adopted by this Resolution
supersedes all investment policies previously adopted by the Board of Directors.
Section 4. Investment authority for Fiscal Year 2021-22 shall be delegated to
the Authority’s Treasurer for a one-year period until the delegation is revoked or expires.
The Treasurer shall assume full responsibility for financial transactions and must make a
monthly report of any investment transactions to the Board of Directors as required by
Government Code section 53607. The Board of Directors may renew the delegation of
authority to the Authority’s Treasurer each fiscal year.
PASSED, APPROVED, AND ADOPTED this 21st day of April 2021.
Ray Marquez
Chair
Tres Hermanos Conservation Authority
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Page 2 of 2
ATTEST:
I, Kristina Santana, Secretary of the Tres Hermanos Conservation Authority, do
hereby certify that the foregoing Resolution was duly and regularly passed, approved
and adopted by the Board of Directors of the Tres Hermanos Conservation Authority, at
its regular meeting held on the 21st day of April 2021, by the following Roll Call vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
Kristina Santana
Secretary
Tres Hermanos Conservation Authority
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Exhibit A
TRES HERMANOS CONSERVATION AUTHORITY
Statement of Investment Policy
Fiscal Year 2021-22
I. POLICY
It is the policy of the Tres Hermanos Conservation Authority ("Authority") to meet the short
and long-term cash flow demands of the Authority in a manner which will provide for the
safety of principal and sufficient liquidity while providing an investment return. The
purpose of this Statement of Investment Policy ("Investment Policy") is to outline a
process of the investment of Authority funds in a prudent manner in order to meet
Authority objectives.
II. SCOPE
This Investment Policy applies to all investment activities and financial assets of the
Authority held by the Authority and its agents and trustees.
III. DELEGATION OF AUTHORITY
Pursuant to the Authority’s By-Laws the Treasurer shall perform the duties as authorized
in Section 6506 et seq. of the Government Code.
Where the Board of Directors delegates the responsibility for investing the Authority’s
funds to the Treasurer, if the Treasurer is absent or otherwise unavailable to make
investments, the Treasurer delegates those responsibilities to the Finance Manager.
Investments made by the Finance Manager will be restricted to the State of California
Local Agency Investment Fund ("LAIF"). The Treasurer may delegate to subordinates
the execution of daily investment transactions. These investment transactions shall be
approved by the Treasurer.
IV. PRUDENCE
All investments purchased shall have daily liquidity or a final stated maturity date upon
which the full principal value of the security will be received. Although the investment will
mature at full principal value, it is recognized that the market will vary throughout the life
of the security. In a diversified portfolio, it must be further recognized that occasional
measured losses are inevitable in a diversified portfolio due to economic, bond market,
or individual security credit analysis. These occasional losses must be evaluated and
considered within the context of the overall investment return.
The "Prudent Investor" standard shall be applied in the context of managing the funds.
The Treasurer and other investment employees, acting within the intent and scope of the
Investment Policy and other written procedures and exercising due diligence, shall be
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relieved of personal responsibility for an individual security's credit risk or market price
changes, provided deviations from expectations are reported in a timely manner and
appropriate action is taken to control adverse developments.
V. OBJECTIVE
The objective of the investment portfolio is to meet the short and long-term cash flow
demands of the Authority. To achieve this objective, the portfolio will be structured to
provide safety of principal and liquidity while then providing a return on investments.
The following criteria, in priority order, shall govern all investment decisions.
A. Safety of Principal
Investments of the Authority shall be undertaken in a manner that seeks to
ensure that capital losses are minimized, whether from institution default or
erosion of the market value of securities. The Authority shall seek to
preserve principal by mitigating the two types of risk in order of importance:
1) credit risk, and 2) market or interest rate risk.
1. Credit Risk. Credit risk, defined as the risk of loss due to failure of
an issuer of a security, shall be mitigated by purchasing Treasuries
or high-grade securities. All investments beyond Treasury securities
will be diversified so that the failure of any one issuer would not
unduly harm the Authority's cash flow. Credit risk shall also be
mitigated by pre-qualifying financial institutions, broker/dealers,
intermediaries and advisors with which the Authority does business.
2. Market or Interest Rate Risk. Interest rate risk is the risk that the
market value of securities in the portfolio will fall due to changes in
general interest rates. Interest rate risk may be mitigated by
structuring the funds so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to
sell securities on the open market prior to maturity, and by investing
operating funds primarily in shorter-term securities. The cash flow is
updated on a daily basis and will be considered prior to the
investment of securities, which will reduce the necessity to sell
investments for liquidity purposes. Long-term securities shall not be
purchased for the sole purpose of short-term speculation. Securities
shall not be sold prior to maturity with the following exceptions: 1) a
declining credit security would be sold early to minimize loss of
principal, 2) a security swap would improve the quality, yield, or
target duration in the portfolio, or 3) liquidity needs of the portfolio
require that the security be sold. Purchases of investments will be
restricted to securities with a final stated maturity not to exceed five
(5) years.
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B. Liquidity
The funds shall remain sufficiently liquid to meet all operating requirements
that may be reasonably anticipated.
C. Return on Investments
The funds shall be designed to attain a return on investments through
budgetary and economic cycles, taking into account the investment risk
constraints and liquidity needs. Return on investment is of least importance
compared to the safety and liquidity objectives described above. The core
of investments are limited to relatively low risk securities in anticipation of
earning a fair return relative to the risk being assumed.
VI. ETHICS AND CONFLICTS OF INTEREST
The Treasurer and other employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the investment
program or which could impair their ability to make impartial investment decisions. The
Treasurer and investment employees shall disclose any material interests in financial
institutions with which they conduct business. They shall further disclose any personal
financial/investment positions that could be related to the performance of the investment
portfolio and shall refrain from undertaking personal investment transactions with the
same individual with whom business is conducted on behalf of their entity. The Treasurer
and investment employees are required to file annual disclosure statements as required
by the Fair Political Practices Commission (FPPC). During the course of the year, if there
is an event subject to disclosure that could impair the ability of the Treasurer or investment
employees to make impartial decisions, the Board of Directors will be notified in writing
within 10 days of the event.
VII. SAFEKEEPING OF SECURITIES
Investments in LAIF are undeliverable and are not subject to delivery or third-party
safekeeping. The Treasurer shall not be responsible for securities delivered to and
receipted by a financial institution until they are withdrawn from the financial institution by
the Treasurer.
On a monthly basis, the custodial asset statement shall be reconciled with the month end
portfolio holdings. On an annual basis, the external auditor confirms investment holdings.
VIII. REPORTING
Pursuant to Section 53607 and Section 53646 of the Government Code, the Treasurer
shall render a report to the Board of Directors containing detailed information on all
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investments and moneys of the Authority. The report will be submitted on a monthly basis
and be provided to the Board of Directors within 30 days following the end of the month.
The report will contain the following information on the funds that are subject to this
Investment Policy: 1) the type of investment, name of the insurer, date of maturity, cost
in each investment, 2) the market value and source of the valuation, 3) a description of
the compliance with the statement of Investment Policy, and 4) a statement denoting the
Authority's ability to meet its pool's expenditure requirements for the next six months, and
5) transactions for the period.
IX. INTERNAL CONTROLS
The Treasurer shall develop a system of internal investment controls and a segregation
of responsibilities of investment functions in order to assure an adequate system of
internal control over the investment function. The objectives of an internal control
structure are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition, and that
transactions are executed in accordance with management’s authorization and recorded
properly to permit the preparation of general purpose financial statements in accordance
with generally accepted accounting principles. Because of inherent limitations in any
internal control structure, errors or irregularities may nevertheless occur and not be
detected.
X. AUTHORIZED INVESTMENTS
The Authority’s investments are governed by California Government Code, Sections
53600 et seq. Within the investments permitted by the Code, the Authority seeks to further
restrict eligible investments to the guidelines listed below. In the event a discrepancy is
found between this policy and the Code, the more restrictive parameters will take
precedence. Percentage holding limits and credit limits listed in this section apply at the
time the security is purchased.
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided
that:
The Authority may invest up to the maximum amount permitted by LAIF.
LAIF’s investments in instruments prohibited by or not specified in the Authority’s
policy do not exclude the investment in LAIF itself from the Authority’s list of
allowable investments, provided LAIF’s reports allow the Treasurer to adequately
judge the risk inherent in LAIF’s portfolio.
XI. PROHIBITED INVESTMENTS AND TRANSACTIONS
A. The Authority shall not invest any funds in inverse floaters, range notes, or
mortgage derived, interest-only strips.
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B. The Authority shall not invest any funds in any security that could result in
zero interest accrual if held to maturity. However, the Authority may hold
prohibited instruments until their maturity dates. The limitation in this
subdivision shall not apply to Authority investments in shares of beneficial
interest issued by diversified management companies registered under the
Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, and following) that
are authorized for investment pursuant to Section X, above. Under a
provision sunsetting on January 1, 2026, securities backed by the U.S.
Government that could result in a zero- or negative-interest accrual if held
to maturity are permitted.
C. No credit union may act as a selected depository institution under Section
53601.8 or Section 53635.8 for certificates of deposit.
D. The Authority shall not purchase or sell securities on margin.
E. Reverse Repurchase Agreements shall not be directly used by the
Authority.
F. The purchase of foreign currency denominated securities is prohibited.
XII. REVIEW OF INVESTMENT PORTFOLIO
The Treasurer shall periodically, but no less than quarterly, review the portfolio to
identify investments that do not comply with this investment policy and establish
protocols for reporting major and critical incidences of noncompliance to the Authority.
XIII. PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a market-average rate of return
throughout budgetary and economic cycles, taking into account the Authority’s risk
constraints, the cash flow characteristics of the portfolio, and state and local laws,
ordinances or resolutions that restrict investments.
The Treasurer shall monitor and evaluate the portfolio’s performance relative to the
chosen market benchmark(s), which will be included in the Treasurer’s monthly report.
The Treasurer shall select an appropriate, readily available index to use as a market
benchmark.
XIV. POLICY REVIEW
In accordance with amended Section 53646 of the Government Code, the Treasurer will
annually render a Statement of Investment Policy for review by the Board of Directors to
ensure its consistency with the overall objectives of preservation of principal, liquidity, and
return, and its relevance to current law, financial and economic trends, and to meet the
needs of the Authority.
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TRES HERMANOS CONSERVATION AUTHORITY
OFFICE OF THE TREASURER
BANK/SAVINGS AND LOAN QUESTIONNAIRE AND CERTIFICATION
1 Name of Firm: _____________________________________________
2 Address: __________________________________________________
3 Telephone No. ( ) _____________ ( ) ___________________
(Local) (Nat. Headquarters)
4 Primary Representative: Manager:
Name: _____________________ Name: ________________________
Title: ____________________ Title: ______________________
Tel. No. ( ) ____________ Tel. No. ( ) ______________
5 What are the Total Assets of the Bank/Savings and Loan?
___________________________________________________________
6 What is the current Net Worth Ratio of your institution?
___________________________________________________________
7 What was the Net Worth Ratio for the Previous Year?
___________________________________________________________
8 What is your required Capital Ratios?
A. Tangible Capital Ratio _______________________________
B. Core Capital Ratio ___________________________________
C. Risk-Based Capital Ratio _____________________________
9 What are your Ratings (i.e., S&P, Moody's, Thompson, Fitch)?
___________________________________________________________
10 What is the date of your Fiscal Year-End? _________________
A. Has there been a year during the past three years in which the
Bank/Savings and Loan did not make a profit?
____________________________________________________________
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11 Have you read the California Government Code Section 53630 through 53684
pertaining to the State's requirements governing the deposit of monies by Local
Agencies? [ ] YES [ ] NO
12 Amounts above the FDIC insurance coverage must be collateralized as specified
in the Government Code. Where is the collateral for Deposits held?
___________________________________________________________
Has there ever been a failure to fully collateralize? If Yes, please attach
explanation.
13 What is the education level of the Primary Contact(s)?
___________________________________________________________
14 How many years of related experience does the Primary Contact(s) have?
___________________________________________________________
15 What transaction documents and reports would we receive?
___________________________________________________________
16 What information would you provide to our Treasurer?
___________________________________________________________
17 Describe the precautions taken by your Bank/Savings and Loan to protect the
interest of the public when dealing with government agencies as depositors or
investors.
___________________________________________________________
18 Please provide your Contract of Deposit of Moneys pre-signed and sealed by your
institution, as well as, any signature cards that you may require.
19 Please provide your Wiring Instructions: ___________________________
___________________________________________________________
20 Please provide your Bank/Savings and Loan most recent certified financial
statement. In addition, an audited financial statement must be provided within 120
days of your fiscal year-end.
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- CERTIFICATION -
I hereby certify that I have personally read the Authority’s Investment Policy and the
California Government Codes pertaining to the investments and deposits of the Authority,
and have implemented reasonable procedures and a system of controls designed to
preclude imprudent investment activities arising out of transactions conducted between
our firm and the Authority. I understand however, that our firm is not obligated to
monitor the percentage limits on the investments as described in the policy. All
sales personnel will be routinely informed of the Authority’s investment objectives,
horizon, outlook, strategies and risk constraints whenever we are so advised. We pledge
to exercise due diligence in informing the Authority’s Treasurer of all foreseeable risks
associated with financial transactions conducted with our firm. I attest to the accuracy of
our responses to your questionnaire.
NOTE: Completion of Questionnaire is only part of the Authority’s
Certification process and DOES NOT guarantee that the applicant will
be approved to do business with the Authority.
SIGNED: ______________________________ DATE: __________________
COUNTERSIGNED: _______________________ DATE: __________________
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Glossary of Investment Terms
AGENCIES. Shorthand market terminology for any obligation issued by a government-
sponsored entity (GSE), or a federally related institution. Most obligations of GSEs
are not guaranteed by the full faith and credit of the US government.
BROKER. A broker brings buyers and sellers together for a transaction for which the broker
receives a commission. A broker does not sell securities from his own position.
COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or
repurchase agreement. Also, securities pledged by a financial institution to secure
deposits of public monies.
CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a
certificate. Large denomination CDs may be marketable.
CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a
timely manner due to changes in the condition of the issuer.
DEALER. A dealer acts as a principal in security transactions, selling securities from and
buying securities for his own position.
DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid
excessive exposure to any one source of risk.
DURATION. The weighted average time to maturity of a bond where the weights are the
present values of the future cash flows. Duration measures the price sensitivity of
a bond to changes in interest rates. (See modified duration).
LIQUIDITY. The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government
entities and certain non-profit organizations in California that is managed by the
State Treasurer’s Office.
MARGIN. The difference between the market value of a security and the loan a broker
makes using that security as collateral.
MARKET RISK. The risk that the value of securities will fluctuate with changes in overall
market conditions or interest rates.
MARKET VALUE. The price at which a security can be traded.
MATURITY. The price at which a security can be traded.
MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and
principal cash flows from a specified pool of mortgages. Principal and interest
payments made on the mortgages are passed through to the holder of the security.
MODIFIED DURATION. The percent change in price for a 100 basis point change in yields.
Modified duration is the best single measure of a portfolio’s or security’s exposure
to market risk.
PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to
fiduciaries. In California, the rule is stated as “Investments shall be managed with
the care, skill, prudence and diligence, under the circumstances then prevailing,
that a prudent person, acting in a like capacity and familiar with such matters, would
use in the conduct of an enterprise of like character and with like aims to accomplish
similar purposes.”
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REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous
agreement to sell the securities back at a higher price. From the seller’s point of
view, the same transaction is a reverse repurchase agreement.
SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the
customer’s name.
TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal
rate of return, which equates the beginning value of the portfolio with the ending
value; it includes interest earnings, realized and unrealized gains, and losses in the
portfolio.
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Exhibit A
TRES HERMANOS CONSERVATION AUTHORITY
Statement of Investment Policy
Fiscal Year 2020-212021-22
I. POLICY
It is the policy of the Tres Hermanos Conservation Authority ("Authority") to meet the short
and long-term cash flow demands of the Authority in a manner which will provide for the
safety of principal and sufficient liquidity while providing an investment return. The
purpose of this Statement of Investment Policy ("Investment Policy") is to outline a
process of the investment of Authority funds in a prudent manner in order to meet
Authority objectives.
II. SCOPE
This Investment Policy applies to all investment activities and financial assets of the
Authority held by the Authority and its agents and trustees.
III. DELEGATION OF AUTHORITY
Pursuant to the Authority’s By-Laws the Treasurer shall perform the duties as authorized
in Section 6506 et seq. of the Government Code.
Where the Board of Directors delegates the responsibility for investing the Authority’s
funds to the Treasurer, if the Treasurer is absent or otherwise unavailable to make
investments, the Treasurer delegates those responsibilities to the Finance Manager.
Investments made by the Finance Manager will be restricted to the State of California
Local Agency Investment Fund ("LAIF"). The Treasurer may delegate to subordinates
the execution of daily investment transactions. These investment transactions shall be
approved by the Treasurer.
IV. PRUDENCE
All investments purchased shall have daily liquidity or a final stated maturity date upon
which the full principal value of the security will be received. Although the investment will
mature at full principal value, it is recognized that the market will vary throughout the life
of the security. In a diversified portfolio, it must be further recognized that occasional
measured losses are inevitable in a diversified portfolio due to economic, bond market,
or individual security credit analysis. These occasional losses must be evaluated and
considered within the context of the overall investment return.
The "Prudent Investor" standard shall be applied in the context of managing the funds.
The Treasurer and other investment employees, acting within the intent and scope of the
Investment Policy and other written procedures and exercising due diligence, shall be
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relieved of personal responsibility for an individual security's credit risk or market price
changes, provided deviations from expectations are reported in a timely manner and
appropriate action is taken to control adverse developments.
V. OBJECTIVE
The objective of the investment portfolio is to meet the short and long-term cash flow
demands of the Authority. To achieve this objective, the portfolio will be structured to
provide safety of principal and liquidity while then providing a return on investments.
The following criteria, in priority order, shall govern all investment decisions.
A. Safety of Principal
Investments of the Authority shall be undertaken in a manner that seeks to
ensure that capital losses are minimized, whether from institution default or
erosion of the market value of securities. The Authority shall seek to
preserve principal by mitigating the two types of risk in order of importance:
1) credit risk, and 2) market or interest rate risk.
1. Credit Risk. Credit risk, defined as the risk of loss due to failure of
an issuer of a security, shall be mitigated by purchasing Treasuries
or high-grade securities. All investments beyond Treasury securities
will be diversified so that the failure of any one issuer would not
unduly harm the Authority's cash flow. Credit risk shall also be
mitigated by pre-qualifying financial institutions, broker/dealers,
intermediaries and advisors with which the Authority does business.
2. Market or Interest Rate Risk. Interest rate risk is the risk that the
market value of securities in the portfolio will fall due to changes in
general interest rates. Interest rate risk may be mitigated by
structuring the funds so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to
sell securities on the open market prior to maturity, and by investing
operating funds primarily in shorter-term securities. The cash flow is
updated on a daily basis and will be considered prior to the
investment of securities, which will reduce the necessity to sell
investments for liquidity purposes. Long-term securities shall not be
purchased for the sole purpose of short-term speculation. Securities
shall not be sold prior to maturity with the following exceptions: 1) a
declining credit security would be sold early to minimize loss of
principal, 2) a security swap would improve the quality, yield, or
target duration in the portfolio, or 3) liquidity needs of the portfolio
require that the security be sold. Purchases of investments will be
restricted to securities with a final stated maturity not to exceed five
(5) years.
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B. Liquidity
The funds shall remain sufficiently liquid to meet all operating requirements
that may be reasonably anticipated.
C. Return on Investments
The funds shall be designed to attain a return on investments through
budgetary and economic cycles, taking into account the investment risk
constraints and liquidity needs. Return on investment is of least importance
compared to the safety and liquidity objectives described above. The core
of investments are limited to relatively low risk securities in anticipation of
earning a fair return relative to the risk being assumed.
VI. ETHICS AND CONFLICTS OF INTEREST
The Treasurer and other employees involved in the investment process shall refrain from
personal business activity that could conflict with proper execution of the investment
program or which could impair their ability to make impartial investment decisions. The
Treasurer and investment employees shall disclose any material interests in financial
institutions with which they conduct business. They shall further disclose any personal
financial/investment positions that could be related to the performance of the investment
portfolio and shall refrain from undertaking personal investment transactions with the
same individual with whom business is conducted on behalf of their entity. The Treasurer
and investment employees are required to file annual disclosure statements as required
by the Fair Political Practices Commission (FPPC). During the course of the year, if there
is an event subject to disclosure that could impair the ability of the Treasurer or investment
employees to make impartial decisions, the Board of Directors will be notified in writing
within 10 days of the event.
VII. SAFEKEEPING OF SECURITIES
Investments in LAIF are undeliverable and are not subject to delivery or third-party
safekeeping. The Treasurer shall not be responsible for securities delivered to and
receipted by a financial institution until they are withdrawn from the financial institution by
the Treasurer.
On a monthly basis, the custodial asset statement shall be reconciled with the month end
portfolio holdings. On an annual basis, the external auditor confirms investment holdings.
VIII. REPORTING
Pursuant to Section 53607 and Section 53646 of the Government Code, the Treasurer
shall render a report to the Board of Directors containing detailed information on all
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investments and moneys of the Authority. The report will be submitted on a monthly basis
and be provided to the Board of Directors within 30 days following the end of the month.
The report will contain the following information on the funds that are subject to this
Investment Policy: 1) the type of investment, name of the insurer, date of maturity, cost
in each investment, 2) the market value and source of the valuation, 3) a description of
the compliance with the statement of Investment Policy, and 4) a statement denoting the
Authority's ability to meet its pool's expenditure requirements for the next six months, and
5) transactions for the period.
IX. INTERNAL CONTROLS
The Treasurer shall develop a system of internal investment controls and a segregation
of responsibilities of investment functions in order to assure an adequate system of
internal control over the investment function. The objectives of an internal control
structure are to provide management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or disposition, and that
transactions are executed in accordance with management’s authorization and recorded
properly to permit the preparation of general purpose financial statements in accordance
with generally accepted accounting principles. Because of inherent limitations in any
internal control structure, errors or irregularities may nevertheless occur and not be
detected.
X. AUTHORIZED INVESTMENTS
The Authority’s investments are governed by California Government Code, Sections
53600 et seq. Within the investments permitted by the Code, the Authority seeks to further
restrict eligible investments to the guidelines listed below. In the event a discrepancy is
found between this policy and the Code, the more restrictive parameters will take
precedence. Percentage holding limits and credit limits listed in this section apply at the
time the security is purchased.
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided
that:
The Authority may invest up to the maximum amount permitted by LAIF.
LAIF’s investments in instruments prohibited by or not specified in the Authority’s
policy do not exclude the investment in LAIF itself from the Authority’s list of
allowable investments, provided LAIF’s reports allow the Treasurer to adequately
judge the risk inherent in LAIF’s portfolio.
XI. PROHIBITED INVESTMENTS AND TRANSACTIONS
A. The Authority shall not invest any funds in inverse floaters, range notes, or
mortgage derived, interest-only strips.
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B. The Authority shall not invest any funds in any security that could result in
zero interest accrual if held to maturity. However, the Authority may hold
prohibited instruments until their maturity dates. The limitation in this
subdivision shall not apply to Authority investments in shares of beneficial
interest issued by diversified management companies registered under the
Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, and following) that
are authorized for investment pursuant to Section X, above. Under a
provision sunsetting on January 1, 2026, securities backed by the U.S.
Government that could result in a zero- or negative-interest accrual if held
to maturity are permitted.
C. No credit union may act as a selected depository institution under Section
53601.8 or Section 53635.8 for certificates of deposit.
D. The Authority shall not purchase or sell securities on margin.
E. Reverse Repurchase Agreements shall not be directly used by the
Authority.
F. The purchase of foreign currency denominated securities is prohibited.
XII. REVIEW OF INVESTMENT PORTFOLIO
The Treasurer shall periodically, but no less than quarterly, review the portfolio to
identify investments that do not comply with this investment policy and establish
protocols for reporting major and critical incidences of noncompliance to the Authority.
XIII. PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a market-average rate of return
throughout budgetary and economic cycles, taking into account the Authority’s risk
constraints, the cash flow characteristics of the portfolio, and state and local laws,
ordinances or resolutions that restrict investments.
The Treasurer shall monitor and evaluate the portfolio’s performance relative to the
chosen market benchmark(s), which will be included in the Treasurer’s monthly report.
The Treasurer shall select an appropriate, readily available index to use as a market
benchmark.
XIV. POLICY REVIEW
In accordance with amended Section 53646 of the Government Code, the Treasurer will
annually render a Statement of Investment Policy for review by the Board of Directors to
ensure its consistency with the overall objectives of preservation of principal, liquidity, and
return, and its relevance to current law, financial and economic trends, and to meet the
needs of the Authority.
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TRES HERMANOS CONSERVATION AUTHORITY
OFFICE OF THE TREASURER
BANK/SAVINGS AND LOAN QUESTIONNAIRE AND CERTIFICATION
1 Name of Firm: _____________________________________________
2 Address: __________________________________________________
3 Telephone No. ( ) _____________ ( ) ___________________
(Local) (Nat. Headquarters)
4 Primary Representative: Manager:
Name: _____________________ Name: ________________________
Title: ____________________ Title: ______________________
Tel. No. ( ) ____________ Tel. No. ( ) ______________
5 What are the Total Assets of the Bank/Savings and Loan?
___________________________________________________________
6 What is the current Net Worth Ratio of your institution?
___________________________________________________________
7 What was the Net Worth Ratio for the Previous Year?
___________________________________________________________
8 What is your required Capital Ratios?
A. Tangible Capital Ratio _______________________________
B. Core Capital Ratio ___________________________________
C. Risk-Based Capital Ratio _____________________________
9 What are your Ratings (i.e., S&P, Moody's, Thompson, Fitch)?
___________________________________________________________
10 What is the date of your Fiscal Year-End? _________________
A. Has there been a year during the past three years in which the
Bank/Savings and Loan did not make a profit?
____________________________________________________________
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11 Have you read the California Government Code Section 53630 through 53684
pertaining to the State's requirements governing the deposit of monies by Local
Agencies? [ ] YES [ ] NO
12 Amounts above the FDIC insurance coverage must be collateralized as specified
in the Government Code. Where is the collateral for Deposits held?
___________________________________________________________
Has there ever been a failure to fully collateralize? If Yes, please attach
explanation.
13 What is the education level of the Primary Contact(s)?
___________________________________________________________
14 How many years of related experience does the Primary Contact(s) have?
___________________________________________________________
15 What transaction documents and reports would we receive?
___________________________________________________________
16 What information would you provide to our Treasurer?
___________________________________________________________
17 Describe the precautions taken by your Bank/Savings and Loan to protect the
interest of the public when dealing with government agencies as depositors or
investors.
___________________________________________________________
18 Please provide your Contract of Deposit of Moneys pre-signed and sealed by your
institution, as well as, any signature cards that you may require.
19 Please provide your Wiring Instructions: ___________________________
___________________________________________________________
20 Please provide your Bank/Savings and Loan most recent certified financial
statement. In addition, an audited financial statement must be provided within 120
days of your fiscal year-end.
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- CERTIFICATION -
I hereby certify that I have personally read the Authority’s Investment Policy and the
California Government Codes pertaining to the investments and deposits of the Authority,
and have implemented reasonable procedures and a system of controls designed to
preclude imprudent investment activities arising out of transactions conducted between
our firm and the Authority. I understand however, that our firm is not obligated to
monitor the percentage limits on the investments as described in the policy. All
sales personnel will be routinely informed of the Authority’s investment objectives,
horizon, outlook, strategies and risk constraints whenever we are so advised. We pledge
to exercise due diligence in informing the Authority’s Treasurer of all foreseeable risks
associated with financial transactions conducted with our firm. I attest to the accuracy of
our responses to your questionnaire.
NOTE: Completion of Questionnaire is only part of the Authority’s
Certification process and DOES NOT guarantee that the applicant will
be approved to do business with the Authority.
SIGNED: ______________________________ DATE: __________________
COUNTERSIGNED: _______________________ DATE: __________________
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Glossary of Investment Terms
AGENCIES. Shorthand market terminology for any obligation issued by a government-
sponsored entity (GSE), or a federally related institution. Most obligations of GSEs
are not guaranteed by the full faith and credit of the US government.
BROKER. A broker brings buyers and sellers together for a transaction for which the broker
receives a commission. A broker does not sell securities from his own position.
COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or
repurchase agreement. Also, securities pledged by a financial institution to secure
deposits of public monies.
CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a
certificate. Large denomination CDs may be marketable.
CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a
timely manner due to changes in the condition of the issuer.
DEALER. A dealer acts as a principal in security transactions, selling securities from and
buying securities for his own position.
DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid
excessive exposure to any one source of risk.
DURATION. The weighted average time to maturity of a bond where the weights are the
present values of the future cash flows. Duration measures the price sensitivity of
a bond to changes in interest rates. (See modified duration).
LIQUIDITY. The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government
entities and certain non-profit organizations in California that is managed by the
State Treasurer’s Office.
MARGIN. The difference between the market value of a security and the loan a broker
makes using that security as collateral.
MARKET RISK. The risk that the value of securities will fluctuate with changes in overall
market conditions or interest rates.
MARKET VALUE. The price at which a security can be traded.
MATURITY. The price at which a security can be traded.
MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and
principal cash flows from a specified pool of mortgages. Principal and interest
payments made on the mortgages are passed through to the holder of the security.
MODIFIED DURATION. The percent change in price for a 100 basis point change in yields.
Modified duration is the best single measure of a portfolio’s or security’s exposure
to market risk.
PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to
fiduciaries. In California, the rule is stated as “Investments shall be managed with
the care, skill, prudence and diligence, under the circumstances then prevailing,
that a prudent person, acting in a like capacity and familiar with such matters, would
use in the conduct of an enterprise of like character and with like aims to accomplish
similar purposes.”
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REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous
agreement to sell the securities back at a higher price. From the seller’s point of
view, the same transaction is a reverse repurchase agreement.
SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the
customer’s name.
TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal
rate of return, which equates the beginning value of the portfolio with the ending
value; it includes interest earnings, realized and unrealized gains, and losses in the
portfolio.
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TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 5.1
5.1
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TRES HERMANOS CONSERVATION AUTHORITY
STAFF REPORT
AGENDA NO. 5.1
Date: April 21, 2021
To: Chair and Board of Directors
From: Daniel Fox, Executive Director
Subject: Budget for Fiscal Year 2021-22
Recommendation:
Adopt Resolution THCA No. 2021-03 entitled: A RESOLUTION OF THE BOARD OF
DIRECTORS OF THE TRES HERMANOS CONSERVATION AUTHORITY, ADOPTING
A BUDGET FOR FISCAL YEAR 2021-22.
Background/Analysis:
Per the Amended and Restated Tres Hermanos Conservation Authority Joint Powers
Agreement Section 5.1 Annual Budget, the Board shall adopt an annual budget. The
proposed budget for Fiscal Year (FY) 2021 -22 is $294,049. The proposed budget
requires an additional contribution of $79,155 from the City of Chino Hills, an additional
contribution of $93,015 from the City of Diamond Bar, and an additional contribution of
$69,585 from the City of Industry. The remainder of the budget is funded utilizing
$66,000 that is unspent from the 2020-21 budget and $15,700 in anticipated revenue.
A 10% reserve policy was established by the board at the February 17, 2021, meeting.
The proposed budget includes an ending fund balance of $29,406, which is in
compliance with the Authority's fund balance reserve policy. Attached to the staff report
is a consolidated proposed budget for the fiscal year. The budget will be reviewed
regularly, and any adjustments will be brought back to the Board for approval.
Respectfully Submitted,
Reviewed By,
Attachments:
1. Resolution THCA No. 2021-03 - FY 2021/22 Budget
2. FY 2021/22 Budget Worksheet
5.1
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RESOLUTION THCA NO. 2021-03
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
TRES HERMANOS CONSERVATION AUTHORITY,
ADOPTING A BUDGET FOR FISCAL YEAR 2021-22
WHEREAS, the Executive Director has presented to the Board a proposed budget
for Fiscal Year 2021-22; and
WHEREAS, the Board of the Authority has conducted a public meeting on April 21st,
2021, to consider the Fiscal Year 2021-22 budget; and
WHEREAS, the Board of the Authority has concluded its review and intends to
approve and adopt the Fiscal Year 2021-22 budget.
NOW, THEREFORE, THE BOARD OF TRES HERMANOS CONSERVATION
AUTHORITY DOES RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1. The Tres Hermanos Conservation Authority Fiscal Year 2021-22
Operating Budget of $294,049, as prepared and submitted by the Executive Director and
as modified by the Board, is hereby approved, adopted and appropriated.
Section 2. At the end of Fiscal Year 2020-21, certain purchase orders exist as
outstanding encumbrances representing contractual obligations of previously budgeted
funds. In addition, certain amounts have been included in the Fiscal Year 2020-21 budget
that related to one-time allocations for specific projects and services, but remain unspent.
Outstanding encumbrances and unspent one-time allocations may be carried forward to
Fiscal Year 2021-22 upon review by the Treasurer and approval of the Executive Director.
Section 3. The Executive Director is authorized to appropriate from reserves for
each expenditure line item not exceeding $15,000 per transaction. The total of
appropriations by the Executive Director from reserves may not exceed $15,000 in a fiscal
year until ratified by the Board. Any appropriations from reserves for each expenditure line
item exceeding $15,000 per transaction must be approved by the Board.
Section 4. The Executive Director is authorized to transfer appropriations between
accounts without limitation.
Section 5. That the Secretary is instructed to forward a copy of the Resolution and
the Fiscal Year 2021-22 Budget to the Auditor/Controller of the County of San Bernardino,
in accordance with Section 53901 of the Government Code.
Section 6. The Secretary shall certify as to the adoption of this Resolution.
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PASSED, APPROVED, and ADOPTED this 21st day of April 2021.
Ray Marquez
Chair
Tres Hermanos Conservation Authority
ATTEST:
I, Kristina Santana, Secretary of the Tres Hermanos Conservation Authority, do
hereby certify that the foregoing Resolution was duly and regularly passed, approved and
adopted by the Board of Directors of the Tres Hermanos Conservation Authority, at its
regular meeting held on the 21st day of April 2021, by the following Roll Call vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
Kristina Santana
Secretary
Tres Hermanos Conservation Authority
5.1.a
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Proposed
Budget for
FY 21-22 Chino Hills Diamond Bar Industry
ESTIMATED BEGINNING FUND BALANCE 66,000$ 23,430$ 9,570$ 33,000$
REVENUES
Membership Contribution 241,755$ 79,155$ 93,015$ 69,585$
Rental Income 11,700 3,900 3,900 3,900
Other Revenues 4,000 1,333 1,333 1,334
TOTAL REVENUES 257,455$ 84,388$ 98,248$ 74,819$
EXPENDITURES
Contractual Services 171,000$ 57,000$ 57,000$ 57,000$
Permits & Fees 11,864 3,955 3,955 3,954
Banking/Credit Card Fees 180 60 60 60
Audit Services 2,855 952 952 951
Legal Services 6,900 2,300 2,300 2,300
Security Services 43,090 14,363 14,363 14,364
Professional Services 30,000 10,000 10,000 10,000
Liability and Insurance 18,760 6,253 6,253 6,254
Office Supplies & Software 5,400 1,800 1,800 1,800
Utilities 4,000 1,333 1,333 1,334
TOTAL EXPENDITURES 294,049$ 98,016$ 98,016$ 98,017$
PROJECTED ENDING FUND BALANCE 29,406$ 9,802$ 9,802$ 9,802$
TRES HERMANOS CONSERVATION AUTHORITY
PROPOSED BUDGET
FISCAL YEAR 2021-22
Proposed Budget for FY 21-22
5.1.b
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