HomeMy WebLinkAbout081920 - THCA - Agenda - Regular MeetingTRES HERMANOS CONSERVATION AUTHORITY
BOARD OF DIRECTORS REGULAR MEETING
AUGUST 19, 2020 AGENDA
6:00 p.m.
CITY OF INDUSTRY
COUNCIL CHAMBER
15651 E. STAFFORD STREET
CITY OF INDUSTRY, CALIFORNIA
Addressing the Authority.
NOTICE OF TELEPHONIC MEETING:
Chair, Steve Tye
Vice -Chair, Ray Marquez
Board Member, Nancy Lyons
Board Member, Cathy Marcucci
Board Member, Cory Moss
Board Member, Peter Rogers
Board Member, Newell Ruggles
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. Members of the public
shall be able to attend the meeting telephonically and offer public comment
by joining the meeting by calling the following conference call number:
1-657-204-3264 and entering the Access Code: 488 091 621#. Please be
advised that pursuant to the Executive Order, and to ensure the health and
safety of the public, Council Chambers will not be open for the meeting,
and all public participation must occur by telephone at the number set forth
above. Pursuant to the Executive Order, and in compliance with the
Americans with Disabilities Act, if you need special assistance to
participate in the THCA meeting (including assisted listening devices),
please contact the City Clerk's Office at (626) 333-2211 by 5:00 p.m. on
Friday, August 14, 2020, to ensure that reasonable arrangements can be
made to provide accessibility to the meeting.
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
August 19, 2020 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 Consideration to approve the Treasurer's Report for the month of June
2020
RECOMMENDED ACTION: Receive and file Report.
3.2 Consideration to approve the check register for the month of June 2020
RECOMMENDED ACTION: Receive and file Report.
4. OLD BUSINESS:
There is none.
5. NEW BUSINESS:
5.1 Adopt the Statement of Investment Policy for the 2020-21 Fiscal Year
RECOMMENDED ACTION: Adopt Resolution No. THCA
2020-02.
5.2 Arnold Reservoir Dam Repairs and Remediation Update
RECOMMENDED ACTION: Receive and File.
5.3 Consideration of Property Maintenance and Security for Dwelling Unit
located at Assessor's Parcel Number (APN) 1000-031-15-0000
RECOMMENDED ACTION: Review and Provide Direction.
August 19, 2020 PAGE 3 THCA Agenda
6. AUTHORITY DIRECTOR COMMENTS:
7. ADJOURNMENT: The next regular Tres Hermanos Conservation Authority
Meeting will be Wednesday, September 16, 2020 at 6:00 p.m.
TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 3.1
TRES HERMANOS CONSERVATION AUTHORITY AGENDA NO. 3
STAFF REPORT
Date: August 19, 2020
To: Chair and Board of Directors
From: Troy Helling, Executive Director
Subject: Treasurer's Report for the Month of June 2020
Recommendation:
That the Authority receive and file the Treasurer's Report for the month of June 2020.
Backaround/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 is the Treasurer's Report for the month of June 2020.
Respectfully submitted,
Christina Buhagiar
Treasurer
Attachments
Reviewed by,
Tr elling
E use- hector
Tres Hermanos Conservation Authority
Treasurer's Report
For the Month Ended June 30, 2020
Interest/
Book Maturity % of
Description Cost Value Market Value Yield Date Portfolio
Cash and Cash Equivalents
Citizens Business Bank - Premium Money Market $ 173,032 $ 173,032 0.05% n/a 100.00%
Total Investment Portfolio $ 173,032 $ 173,032 100.00%
Blended Yield of Cash and Investments
Benchmarks:
LAIF 1.22%
6mo U.S. Treasury 0.18%
2yr U.S. Treasury 0.16%
5yr U.S. Treasury 0.29%
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.
Christina Buhagiar
Treasurer
Tres Hermanos Conservation Authority
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Month Ended June 30, 2020
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
Repairs & Maintenance
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
Revised
Fiscal Year
%
Budget
June
To Date
of Budget
2019/20
2020
2019/20
Used
$ -
$ 3
$ 54
-
7,700
696
7,721
100%
117,846
93,830
211,676 A
180%
-
(15)
607
-
125,546
94,514
220,058
175%
10,971
200
6,132
56%
68,677
700
51,773
75%
2,091
766
1,742
83%
34,587
6,322
39,736
115%
42,781
-
42,119
98%
17,502
1,575
18,770
107%
28,001
1,900
23,300
83%
47,000
-
20,538
44%
10,242
595
8,624
84%
7,413
-
5,583
75%
-
-
134
N/A
269,265
12,058
218,451
81 %
$ (143,719)
$ 82,456
$ 1,607
$ 165,025
1,607
$ 166,632 B
$ 24,798
19,651
122,183
$ 166,632
A Includes a prepayment of $93,830 for FY 20-21
B The ending fund balance in the amount of $166,632 includes $6,400.52 in outstanding checks that are not
included in the bank balance of $173,031.83.
TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 3.2
TRES HERMANOS CONSERVATION AUTHORITY AGENDA NO. o�
STAFF REPORT
Date: August 19, 2020
To: Chair and Board of Directors
From: Troy Helling, Executive Director
Subject: Check Register
Recommendation:
That the Authority receive and file the check register for the month of June 2020.
Background/Analysis:
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 is the check register for
the month of June 2020.
Respectfully submitted,
Christina Buhagiar
Treasurer
Attachments
Reviewed by,
Cxecutive
li�Q'F
ctor
Tres Hermanos Conservation Authority JPA
Transaction List by Vendor
June 2020
Date
Check #
Vendor
Memo/Description
Amount
6/3/20
1147
Industry Security Services, Inc.
Security - Apr 2020
$ (3,109.80)
6/3/20
1148
Amazon
Envelopes
(10.76)
6/3/20
1149
City of Chino Hills
Water - 04/13/20 - 05/13/20
(188.65)
6/3/20
1150
Lance, Soil & Lunghard, LLP
FY 2018-19 YE Audit issue
(200.00)
6/24/20
1151
Industry Security Services, Inc.
Security - May 2020
(3,211.76)
6/24/20
1152
City of Industry
Trash - May 2020
(158.76)
6/24/20
1153
Janus Pest Management, Inc
Squirrel/Pest Control - Apr 2020
(1,900.00)
6/24/20
1154
City of Chino Hills
Water - 05/13/20 - 06/10/20
(248.05)
6/24/20
1155
Egoscue Law Group, Inc.
Legal - May 2020
(700.00)
6/24/20
ACH
Quickbooks
Quickbooks FY 2020/21
(755.00)
6/24/20
1156
Alliant Insurance Services, Inc.
Crime Insurance FY 2020/21
(1,575.00)
Total $ (12,057.78)
TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 5.1
TRES HERMANOS CONSERVATION AUTHORITY AGENDA NO. J %
STAFF REPORT
Date: August 19, 2020
To: Chair and Board of Directors
From: Troy Helling, Executive Director
Subject: Adopt the Statement of Investment Policy
Recommendation:
That the Board of Directors adopt Resolution THCA No. 2020- 02 adopting the Statement
of Investment Policy for the 2020-21 Fiscal Year.
Background/Discussion:
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 California Government
Code section 53646, and consistent with Government Code sections 16429.1, 53601,
53635, and 53684, as they may be amended.
Additions and revisions have been made to the Authority's Investment Policy (See Exhibit
A) for the 2020-21 fiscal year as a result of recommendations the City of Chino Hills
received from the California Municipal Treasurers Association and are illustrated in the
attached redline version.
Respectfully submitted,
Christina Buhagiar
Treasurer
Reviewed by,
elling
Ex utiv ' ector
Attachments: Resolution - Adopting the Statement of Investment Policy for FY 2020-21
Exhibit A — THCA Statement of Investment Policy, FY 2020-21
Redline Version - THCA Statement of Investment Policy, FY 2020-21
RESOLUTION THCA NO. 2020- 02
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE TRES HERMANOS CONSERVATION AUTHORITY
ADOPTING THE STATEMENT OF INVESTMENT
POLICY FOR THE 2020-21 FISCAL YEAR
WHEREAS, the Tres Hermanos Conservation Authority (Authority) requests to
adopt the Statement of Investment Policy for the 2020-21 fiscal year; and
WHEREAS, the Statement of Investment Policy provides the Board of Directors
shall annually review the Statement of Investment Policy.
NOW, THEREFORE, BE IT RESOLVED,
Section 1. Investments of the Authority's funds for the 2020-21 fiscal year 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. The Treasurer must make a monthly report of any investment
transactions to the Board of Directors as required by Government Code section 53607.
PASSED, APPROVED, AND ADOPTED this 19th day of August 2020.
Troy Helling
Executive Director
Tres Hermanos Conservation Authority
Resolution THCA No. 2020- 02
ATTEST:
I, Julie Gutierrez -Robles, 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 19th day of August 2020, by the following
Roll Call vote:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
Julie Gutierrez -Robles
Secretary
Tres Hermanos Conservation Authority
Exhibit A
TRES HERMANOS CONSERVATION AUTHORITY
Statement of Investment Policy
Fiscal Year 2020-21
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
-1-
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.
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.
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.
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.( ) ( )
0
5
(Local) (Nat. Headquarters)
Primary Representative: Manager:
Name: Name:
Title: Title:
Tel. No.( ) Tel. No. ( )
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?
we
What is your required Capital Ratios?
A. Tangible Capital Ratio
B. Core Capital Ratio
C. Risk -Based Capital Ratio
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?
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:
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."
M
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.
51111
Exhibit A
TRES HERMANOS CONSERVATION AUTHORITY
Statement of Investment Policy
Fiscal Year 2019-202020-21
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 -at
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.
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.
Al. 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 fe-r-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.
13
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 X4VX, above.
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
henrhmark_
XII: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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3
0
5
TRES HERMANOS CONSERVATION AUTHORITY
OFFICE OF THE TREASURER
BANK/SAVINGS AND LOAN QUESTIONNAIRE AND CERTIFICATION
Name of Firm:
Address:
Telephone No
(Local) (Nat. Headquarters)
Primary Representative: Manager:
Name: Name:
Title: Title:
Tel. No. ( ) Tel. No. ( )
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?
F-P
E
What is your required Capital Ratios?
A. Tangible Capital Ratio
B. Core Capital Ratio
C. Risk -Based Capital Ratio
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?
so
Lfflffl!_ 1 1 \MLAMI
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:
1
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. Examples are.
CCU GB. The Federal CMrm rQrPedi4 Rank System nrnVideS merit and liquidity in the
rR-rHLB—Trhre-Ca��� '_Me Loan RGFedit and linriidity in the oust
TmurLet GI-ll R issues riicnnrint notes anti bond
and liquidity in the housing market. FHLMC;, a!60 Galled to n
FNMA, issues
a n
issues diSGEWnt notes, bands and mertgage pass
threugh senrrrities
u n
alld nredat of the I S Government
PEFCC The Droyate Expert Funding i'nrnnra iinenTassists exporters Qbligatinnc of
PEF(;Q are not guaranteed by the full faith and Gredit of the US gGvernment.
T,-: The —Tennessee Valley AuthGFity provides fl9ed rnntrnl and power and
River �i�s. TVAnrrrrently issues dicnnrrnt notes and: hends.
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.
IN
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.
PRIMARY —prood-rep. A (4) that is a tradiRg GEAIRterpaFty with the Federal
the U.S. C GE)Vernmon} coriiri}ioc m-rLo}
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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1! a YLAIM _ I IT, I Elm
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.
TRF-As-mv R11 1 r, 411 seGWFffitieG issued with initial matwFities of one year OF less are
as diSGOunted instruments, and aFe Galled Treasury bills. The Treasury GlArrently
management" hills as needed to smooth GHt nosh flows
Treasury notes, and nov interest semi_onnually.
called TreastAFy bonds. Like T-FeasuFy notes, they pay interest semi annua4y-.
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 HERMA NOS CONSERVATION AUTHORITY
ITEM NO. 5.2
TRES HERMANOS CONSERVATION AUTHORITY AGENDA NO. s` a
STAFF REPORT
Date: August 19, 2020
To: Chair and Board of Directors
From: Troy Helling, Executive Director
Subject: Arnold Reservoir Dam Repairs and Remediation Update
Recommendation:
That the Authority receive and file an update to the Arnold Reservoir Dam Repairs and
Remediation required pursuant to the Joint Powers Agreement for the Tres Hermanos
Conservation Authority.
Background/Analysis:
The Arnold Reservoir Dam, officially the Chino Ranch #1 Dam (Dam No. 2025), located
within Tres Hermanos, is annually inspected by the State of California Department of
Water Resources. The inspection reports conclude that the dam and reservoir are safe
for continued use. The reports also conclude with recommended actions that includes
long term erosion protections, such as rip -rap, and filling rodent burrows with compacted
crushed rock or compacted backfill to deter any further infestations.
The Tres Hermanos Joint Powers Agreement ("Agreement") states that the City of
Industry ("Industry") provide a one-time remediation for the Arnold Reservoir Dam,
which is in need of erosion control measures, and that Industry would pay all costs
associated with analyzing and engineering the remediation work. The plans and
specifications will be submitted to each member Agency's City Engineer for review, at
a cost to each Agency, not the Authority. Section 4.2 (B) of the Agreement reads:
"Section 4.2 A Notwithstanding the above, Industry has identified that the
Arnold Reservoir dam is in need of a one-time repair and requires remediation, to
wit, the construction and/or installation of erosion control measures on the wet
side of the earthen dam (the "Remediation Work"). At the time this Agreement
was approved by the Members, Industry was still in the process of analyzing and
engineering the Remediation Work. Industry agrees to complete this process and
prepare plans and specifications for the Remediation Work, perform the
Remediation Work and pay all costs associated with the Remediation Work. The
plans and specifications shall be submitted to each Member's city engineer for
their reasonable review and comment, at a cost to the respective Member, not the
Authority. Any such comments shall be in writing and provided to Industry within
seven (7) business days of receipt of the plans and specifications. The Members'
city engineers shall work in good faith to resolve all comments, if any. As
consideration for Industry's performance of and payment for the Remediation
Work, the Authority agrees, at no cost to Industry, to cooperate and take all
reasonable steps to assist Industry in securing the necessary permit, if any, to
perform the Remediation Work and to issue an encroachment permit to Industry
to perform the Remediation Work. The encroachment permit for the Remediation
Work shall contain such conditions as are standard and customary for third
parties performing work on the Members' public property, including, but not
limited to, insurance and indemnity requirements, and shall be approved as to
form by Authority's General Counsel. Notwithstanding the foregoing, Industry
may satisfy the insurance and indemnity requirements of the encroachment
permit by including the Authority, its appointed officials, officers, agents, and
attorneys as additional insureds and indemnified parties in the contract awarding
the Remediation Work; provided such provisions are reasonably satisfactory to,
and approved in writing by, the Authority's General Counsel. After completion of
the one-time Remediation Work, Industry shall not be responsible for any future
repair, maintenance or other work to the Arnold Reservoir dam."
Industry proposes to proceed with a test area to investigate if the dam repair can occur
without draining the lake as a first option. Industry will complete the plans and
specifications of a final design and move forward with authorization to bid approval and
contract award for the work. The test area will not have full plans and specifications
compared to a full remediation project so the costs will predominantly be for labor and
equipment. As stated in Section 4.2 (B) of the Agreement, the test area scope and plan
will be reviewed by the respective City Engineers of each agency.
Both City Engineers of Diamond Bar and Chino Hills have reviewed the test area
approach and have given approval to move forward. It should be noted that the erosion
of the dam face is due to lapping water at the dam and is unlike erosion of running water
as in a river. This pilot project will entail placing rip rap for about 100 feet along the face
of the dam starting at the soft bottom and up to the highest water level. The rip rap
elevations will be checked after a few days to evaluate any settlement which will provide
a measure of the efficacy of this methodology for the dam repair. If unsuccessful, the
second option will be employed, which is yet to be determined. In addition, the slope of
the dam above the highest water level will be grouted to prevent incursion by burrowing
rodents.
Fiscal Impact:
There is no fiscal impact to the Authority.
TRES HERMANOS CONSERVATION AUTHORITY
ITEM NO. 5.3
TRES HERMANOS CONSERVATION AUTHORITY AGENDA NO. J
STAFF REPORT
Date: August 19, 2020
To: Chair and Board of Directors
From: Troy Helling, Executive Director IF1
Subject: Property Maintenance and Security for Dwelling Unit Located at Assessor's
Parcel Number (APN) 1000-031-15-0000
Recommendation:
It is recommended that the Board of Directors of the Authority review and provide direction
to staff regarding ongoing property maintenance and security services for the dwelling
unit located on Authority property and currently occupied by Ms. Cherie Wood.
Background/Analysis:
Located on the property at Assessor's Parcel Number (APN) 1000-031-15-0000 is the
single-family residence currently occupied by Ms. Cherie Wood. Recently, Ms. Wood
expressed concern for her safety and for an increase in rodents inside the house. In
addition to rodent control and new security cameras, there is additional maintenance
that is recommended to be performed including interior house painting, interior window
shade replacement, structural inspection of old outbuildings, replacement of the
dishwasher and the trimming of approximately 6 trees. The estimated cost is laid out in
Table 1 below. For these proposed costs, staff intends to follow the purchasing policy
of the City of Chino Hills as staff continues to develop a policy for the Authority.
Table 1 - Summary of Proposed Maintenance Costs
Rodent control ($2,200 first month + $64/month [$768 annually])
$2,968
Interior house painting (-1,850 sq. feet of wall @-$3/sq. foot)
$6,000
Replace window interior shades (-13 windows materials + labor)
$1,500
Structural Engineer Inspection of old outbuildings (barns)
$3,240
Trim trees (pruning approx. 6 trees @ $250 each)
$1,500
Replace Dishwasher
$750
Install CCTV security cameras on tenant house ($400 camera kit + $1500
installation)
$1,900
Install two Vosker V200 4G/LTE Cellular/solar powered Security Cameras
$2 180
($1,000 for cameras + $15/month cell plan [$180 annually])
Total:
$20,038