BUDGET & FINANCE COMMITTEE REGULAR MEETING AGENDA SEPTEMBER 06, :00 AM

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1 BUDGET & FINANCE COMMITTEE REGULAR MEETING AGENDA SEPTEMBER 06, :00 AM MONTEREY COUNTY GOVERNMENT CENTER, SAFFRON ROOM, 1441 SCHILLING PLACE, SALINAS.Committee Members: Directors Brennan, Gunter, Lipe, McHatten, Secondo 1. Call to Order 2. Roll Call 3. General Public Comment Members of the public may comment on matters within the jurisdiction of the agency that are not on the agenda. Public comments generally are limited to two (2) minutes per speaker; the Chair may further limit the time for public comments depending on the agenda schedule. Comments on agenda items should be held until the items are reached. To be respectful of all speakers and avoid disruption of the meeting, please refrain from applauding or jeering speakers. 4. Scheduled Items 4.a Election of Committee Chair and Vice Chair for b Approve July 5, 2018 Budget and Finance Committee Meeting Minutes _B F_Unofficial_Minutes (2).docx 4.c Consider recommending Board approval of the June 2018 Financial Claims Reports. 4.c - Staff Report - Jun 2018 Financial Report.docx June 2018 Statement of Revenues and Expenses.pdf June 2018 Balance Sheet.pdf June 2018 Payment and Disbursement Report.pdf 4.d Consider recommending Board approval of the July 2018 Financial Claims Report. 4.b - Staff Report - Jul 2018 Financial Report.docx 1

2 July 2018 Statement of Revenues and Expenses.pdf July 2018 Balance Sheet.pdf July 2018 Payment and Disbursement Report.pdf 4.e Consider recommending Board approval of carry over appropriations totaling $1,595,550 to the fiscal year budget. 4.e - Staff Report - Carryover Appropriations[15384].docx 5. Future Agenda Items 6. Adjournment.Meeting Accommodation/Posting MEETING ACCOMMODATION Disability-related modification or accommodation, including auxiliary aids or services, may be requested by any person with a disability who requires modification or accommodation in order to participate in the meeting. Requests should be referred to the Clerk to the Board at camela@svbgsa.org or at as soon as possible but by no later than 5 p.m. two business days prior to the meeting. Hearing impaired or TTY/TDD text telephone users may contact the Agency by dialing 711 for the California Relay Service (CRS) or by telephoning any other service providers CRS telephone number. AGENDA POSTING The meeting agenda was posted on August 31, 2018 in the City Hall Rotunda, 200 Lincoln Avenue, Salinas, CA and Monterey County Government Center, 1441 Schilling Place, Salinas, CA. 2

3 Budget & Finance Committee Unofficial Minutes Primary Directors Alejo, Brennan, Lipe, McHatten and Secondo Meeting Minutes July 5, 2018, at 10:00 a.m. Monterey County Government Center, 1441 Schilling Place, Salinas Roll Call: Present: Chair McHatten, Brennan, Secondo, Hinkle (alternate-lipe). Absent: Alejo 1. The June 12, 2018 minutes were approved by the Directors. Ayes: Chair McHatten, Brennan, Secondo, Hinkle (alternate-lipe). Absent: Alejo 2. Directors reviewed the May 2018 Financial Reports. The Directors were informed all is good in the financial area. Ayes: Chair McHatten, Brennan, Secondo, Hinkle (alternate-lipe). Absent: Alejo 3. Chair McHatten requested a highlight of the important issues of the Financial Policy. Mr. Moreno responded to Chair McHatten s questions regarding how the Agency is going to establish reserves and where they are coming from. Directors approved the Financial Policy. Ayes: Chair McHatten, Brennan, Secondo, Hinkle (alternate-lipe). Absent: Alejo 4. General Manager s Report: Mr. Petersen informed the Directors we are moving forward with briefings. The meetings with Salinas Valley Water Ag Association went well with good positive feedback. The outreach meetings are in process. The SVBGSA website is being rebuilt. Newsletter templates will be added for us to share more communication. Director Brennan asked about the Peak Agenda Management. Mr. Petersen explained it s through Granicus and it s for our internal use to move documents. 5. Committee Members' Reports: Director Secondo advised the Northern Delta raised their fees to fund the GSA. Will provide letter to Mr. Petersen for review. 6. Future Agenda items: Directors requested an items to discuss fees. 7. Meeting adjourned at 10:40 a.m. 3

4 Salinas ValleyBasin Groundwater Sustainability Agency BUDGET AND FINANCE COMMITTEE STAFF REPORT MEETING DATE: September 6, 2018 AGENDA ITEM: 4.c SUBJECT: Receive June 2018 Financial Reports RECOMMENDATION: It is recommended that the Budget and Finance Committee review the June 2018 financial reports and recommend approval to the Board of Directors. BACKGROUND: Section 10.2 of the Joint Exercise of Powers Agreement forming the Salinas Valley Basin Groundwater Sustainability Agency ( Agency ) states The Agency shall maintain strict accountability of all funds and report all receipts and disbursements of the agency on no less than a quarterly basis. Reports are being presented monthly. DISCUSSION: Attached are the following financial statements for the Agency through June 30, These financial statements represent the standing of the Agency for the fiscal year ended June 30, Statement of Revenue & Expense - Budget vs. Actual June expenses were $188,008, the highest thus far. Year-to-date revenues exceed expenses by $461,509. Balance Sheet shows $600,242 in cash at year-end. Payment & Disbursement Report shows detail of deposits and disbursements for the month of June with a net decrease of $260,730. Year-end Results The Agency ended the fiscal year with revenues exceeding expenses by $461,509. This was due primarily for two reasons the Agency s organizational structure and the late start on the GSP and Financing Plan. The Agency saved a substantial sum by using RGS to provide management services, using County Counsel to provide legal services and by renting minimal office space from the County at the new Government Center. GSP services began in March and the financing plan services began in April. The Balance Sheet shows $602,688 in cash less liabilities of $141,176 with Equity of $461,512. The financial statements are being audited with the final report expected in October. 4

5 FISCAL IMPACT: None. ATTACHMENT(S): Financial Statements as stated above PREPARED BY: Roberto Moreno, RGS Senior Advisor 5

6 Salinas Valley Basin Groundwater Sustainability Agency Statement of Revenues & Expenses Budget vs. Actual July 2017 through June 2018 Ordinary Income/Expense Income Jun 18 Jul '17 - Jun 18 Budget $ Over (Under) Budget % of Budget Used Member Contributions 0 1,145,000 1,145, % Prop 1 DWR Grant 1,500,000-1,500,000 Total Income 0 1,145,000 2,645,000-1,500,000 43% Expense Administrative Services 29, , ,500 10, % Groundwater Sustainability Plan 134, ,654 1,924,006-1,635,352 15% Legal Services 2,367 21,845 60,000-38,155 36% Grant Management Services (RGS 4,211 4,211 4, % Agency Financing Plan 10,875 22,855 97,000-74,145 24% Financing Plan Other Services 12,000-12, Facilitation Services 16,000-16, Grant Writing / Lobbying 27,720 62,000-34,280 45% Communications Consultant (RGS 1,200 4,875 20,000-15,125 24% Conferences / Training 430 1,648 12,500-10,852 13% Dues and Subscriptions ,000-2,600 13% Insurance Premium 2,219 2, % Legal Notices & Ads ,000-2,409 20% Office Supplies ,500-1,926 23% Postage and Delivery , % Printing and Reproduction 156 3,358 6,000-2,642 56% Office Rent 250 2,050 10,000-7,950 21% Technology 396 3,170 3, % Website Upgrade 5,000-5, Agenda Management Software ,600-2,989 17% Travel Expense 572 2,102 10,000-7,898 21% Bank Service Charges % Recruitments 9,551 10, % Meals and Meeting Expenses ,500-2,147 14% Mileage Reimbursement 250 1,414 1, % Board Stipends 1,510 20,115 22,500-2,385 89% Contingency 28,025-28,025 Total Expense 188, ,701 2,573,231-1,888,530 27% Net Ordinary Income -188, ,299 71, , % Other Income/Expense Other Income Interest Income 21 1, , % Total Other Income 21 1, , % Net Other Income 21 1, , % Net Income -187, ,509 71, , % 6 Page 1 of 1

7 Salinas Valley Basin Groundwater Sustainability Agency 1:55 PM Balance Sheet 08/29/2018 As of June 30, 2018 Accrual Basis ASSETS Current Assets Checking/Savings Jun 30, Rabobank Checking -105, Rabobank Money Market 205, CalTrust Medium Term Funds 501,034 Total Checking/Savings 600,242 Other Current Assets Prepaid Expense 2,446 Total Other Current Assets 2,446 Total Current Assets 602,688 TOTAL ASSETS 602,688 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable 141,176 Total Accounts Payable 141,176 Total Current Liabilities 141,176 Total Liabilities 141,176 Equity Net Income 461,512 Total Equity 461,512 TOTAL LIABILITIES & EQUITY 602,688 7 Page 1 of 1

8 Salinas Valley Basin Groundwater Sustainability Agency Payment & Disbursement Report June 2018 Type Date Num Name Memo Amount General Journal 06/05/ Robobank Account Analysis fee for May Bill Pmt -Check 06/08/ Adam Secondo Board Stipend- April Jt. Special Mtg. May- Board & Budget meeting Bill Pmt -Check 06/08/ Hydrometrics March and April work done on Salinas Basin GSP -79, Bill Pmt -Check 06/08/ Janet Brennan Board Stipend- April Jt meeting & mileage, May- BFC, Board & Jt Special meeting plus Milea Bill Pmt -Check 06/08/ Joe Gunter Board Stipend- April Jt. Special meeting, May- Board, Exec Committee & Jt. Special meeting Bill Pmt -Check 06/08/ Michael McHatten Board Stipend- April Jt. Special mtg & mileage. May- Board, Exec & Jt. Special mtg & mileag Bill Pmt -Check 06/08/ Ronald J. Stefani Board Stipend- April and May mtgs Bill Pmt -Check 06/08/ Regional Government Servies -36, General Journal 06/13/ Bank Acct Analysis Fee for May Bill Pmt -Check 06/21/2018 Regional Government Servies QuickBooks generated zero amount transaction for bill payment stub 0.00 Bill Pmt -Check 06/25/ County of Monterey Rent Bill Pmt -Check 06/25/ Granicus Peak Agenda Management Software- from 05/22/18 to 02/14/19-3, Bill Pmt -Check 06/25/ Monterey County Weekly Ad for public outreach meeting for Basin Boundary Modification in King City Bill Pmt -Check 06/25/ U.S. Bank - CalCard Paso Robles bountry notices, mail posting, conference & summit travel, G-suite, verizon, food -2, Deposit 06/29/2018 Interest Bill Pmt -Check 06/30/ Adam Secondo June 2018 Board Stipend-Board and special budget meeting Bill Pmt -Check 06/30/ County of Monterey July SVBGSA Rent Schilling Place, South Building, 1st Floor, Salinas, CA Bill Pmt -Check 06/30/ Hansford Economic -22, Bill Pmt -Check 06/30/ Hydrometrics Work done in May 2018 on Salinas Basin GSP -72, Bill Pmt -Check 06/30/ Joe Gunter June 2018 Board Stipend- 1 Board meeting Bill Pmt -Check 06/30/ Luis A. Alejo April - June 2018 Board Stipend-Board, BFC, Jt special mtg, special Bd. mtg, Bill Pmt -Check 06/30/ Michael McHatten June 2018 Board Stipend-Board, special budget and exec committee meeting plus mileage Bill Pmt -Check 06/30/ Office of the County Counsel of MoLegal service rendered in May , Bill Pmt -Check 06/30/ Regional Government Servies -35, Bill Pmt -Check 06/30/ Ronald J. Stefani June 2018 Board Stipend-Board and Exec Committee meeting plus mileage , Page 1 of 1

9 Salinas ValleyBasin Groundwater Sustainability Agency BUDGET AND FINANCE COMMITTEE STAFF REPORT MEETING DATE: September 6, 2018 AGENDA ITEM: 4.d SUBJECT: Receive July 2018 Financial Reports RECOMMENDATION: It is recommended that the Budget and Finance Committee review the July 2018 financial reports and recommend approval to the Board of Directors. BACKGROUND: Section 10.2 of the Joint Exercise of Powers Agreement forming the Salinas Valley Basin Groundwater Sustainability Agency ( Agency ) states The Agency shall maintain strict accountability of all funds and report all receipts and disbursements of the agency on no less than a quarterly basis. Reports are being presented monthly. DISCUSSION: Attached are the following financial statements for the Agency through July 31, 2018: Statement of Revenue & Expense - Budget vs. Actual July revenues exceeded expenses by $1,100,170 because all the member contributions were billed in July. July expenses were only $45,629 since we have not received invoices for July services on the GSP for Fee study. Balance Sheet shows $1,704,725 in cash and $40,000 in accounts receivable. Almost all members paid their contributions in July. Payment & Disbursement Report shows detail of deposits and disbursements for the month of July with a net increase of $1,103,720 in cash. Since July is the first month of the fiscal year it typically shows the highest revenue and lowest expenditures for the year. FISCAL IMPACT: None. ATTACHMENT(S): Financial Statements as stated above PREPARED BY: Roberto Moreno, RGS Senior Advisor 9

10 Salinas Valley Basin Groundwater Sustainability Agency Statement of Revenues & Expenses Budget vs. Actual July 2018 Ordinary Income/Expense Income Jul '18 Budget $ Over Budget % of Budget Member Contributions 1,145,000 1,145, % Prop 1 DWR Grant Total Income 1,145,000 1,145, % Expense Administrative Services 16, , ,267 4% Groundwater Sustainability Plan 140, , Legal Services 6,141 60,000-53,859 10% Consulting Hydrologist (RGS) 54,000-54, Deputy Clerk of the Board (RGS) 10,800-10, Grant Management Services (RGS) 18,986 40,000-21,014 47% Agency Financing Plan 43,000-43, Facilitation Services 30,000-30, Grant Writing / Lobbying 20,000-20, Outside Specialty Legal Svcs 40,000-40, Communications Consultant (RGS) 20,000-20, Conferences / Training 670 7,100-6,430 9% Dues and Subscriptions 3,000-3,000 0% External Audit 5,000-5, Insurance Premium 3,000-3, Legal Notices & Ads ,000-9,896 1% Office Supplies 4,500-4, Postage and Delivery 3,000-3, Printing and Reproduction ,300-9,960 3% Office Rent 250 3,000-2,750 8% Technology ,000-12,415 5% Agenda Management Software 306 3,600-3,294 9% Travel Expense ,000-19,683 2% Bank Service Charges % Recruitments 2,000-2, Meals and Meeting Expenses 56 2,500-2,444 2% Mileage Reimbursement 194 1, % Board Stipends 1,610 26,400-24,790 6% Contingency 57,000-57,000 Total Expense 45,629 1,068,000-1,022,371 4% Net Ordinary Income 1,099,371 77,000 1,022,371 1,428% Other Income/Expense Other Income Interest Income % Total Other Income % Net Other Income % Net Income 1,100,170 77,200 1,022,970 1,425% 10 Page 1 of 1

11 Salinas Valley Basin Groundwater Sustainability Agency Balance Sheet As of July 31, 2018 ASSETS Current Assets Checking/Savings Jul 31, Rabobank Checking 12, Rabobank Money Market 290, CalTrust Medium Term Funds 1,401,797 Total Checking/Savings 1,704,725 Accounts Receivable Accounts Receivable 40,000 Total Accounts Receivable 40,000 Other Current Assets Prepaid Expense 2,140 Total Other Current Assets 2,140 Total Current Assets 1,746,865 TOTAL ASSETS 1,746,865 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable 185,183 Total Accounts Payable 185,183 Total Current Liabilities 185,183 Total Liabilities 185,183 Equity Retained Earnings 461,512 Net Income 1,100,170 Total Equity 1,561,682 TOTAL LIABILITIES & EQUITY 1,746, Page 1 of 1

12 Salinas Valley Basin Groundwater Sustainability Agency Payment & Disbursement Report 08/29/2018 July 2018 Accrual Basis 3:33 PM Type Date Num Name Memo Amount Deposit 07/09/2018 Deposit 20, Deposit 07/10/2018 Deposit 65, General Journal 07/13/ Checking account analysis fee for 06/ Deposit 07/23/2018 Deposit 1,000, Deposit 07/24/2018 Deposit 20, Bill Pmt -Check 07/25/ Rashell Choo Work done on SVBGSA Newsletter and blast, SVB Meeting template Bill Pmt -Check 07/25/ Regional Government Servies Reimbursable Expenses for G. Peterson. Mileage for conference travel Bill Pmt -Check 07/25/ U.S. Bank - CalCard Mis charges for SVBGSA-Board packages, recording fees,google-g-suite, Veriz Deposit 07/29/2018 Interest ,103, Page 1 of 1

13 5Salinas ValleyBasin Groundwater Sustainability Agency BUDGET AND FINANCE COMMITTEE STAFF REPORT MEETING DATE: September 6, 2018 AGENDA ITEM: 4e SUBJECT: Approve Carryover Appropriations from FY RECOMMENDATION: It is recommended that the Budget and Finance Committee recommend that the Board approve $1,595,550 in carryover appropriations from fiscal year to fiscal year BACKGROUND: The Agency entered into agreements throughout the year, some of which are not complete as of June 30, Since the funding for these agreements was included in FY , it is necessary to carryover the appropriations for those agreements to the new fiscal year so that they can be paid in the new fiscal year. DISCUSSION: As of June 30, 2018, the Agency had the following outstanding contractual obligations which were budgeted in FY Vendor Services Carryover Amount Errol L. Montgomery and GSP Development $1,513,155 Associates, Inc. (assigned by HydroMetrics) Hansford Economic Consulting Fee Study 74,145 Freshtracks Website redesign 8,250 Since these appropriations were not spent, staff proposes to carryover $1,595,550 from FY to cover the outstanding amounts. The Carryover amount of $1,595,550 will paid from the $1,500,000 DWR GSP Grant and $95,550 from the fund balance at June 30, 2018, cash on hand. No claims have been made on the grant since it is still going through the approval process at DWR before the Agency can claim funds. Under the terms of the grant, the Agency can claim expenses going back to March FISCAL IMPACT: Estimated revenues will increase by $1,500,000. Appropriations will increase by $1,595,550. The difference of $95,550 will be funded from the fund balance of $461,500 at June 30, PREPARED BY: Roberto Moreno, RGS Senior Advisor 13