To: Board of Directors
From: Canyon Lakes Geological Hazard Abatement District
Report Title: Canon Lakes GHAD Resolution No. 2025/01 and Resolution No. 2025/02
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Canyon Lakes Geologic Hazard Abatement District (GHAD) Resolution No. 2025/01 approving the GHAD budget for 2025/2026 fiscal year with an update to the GHAD General Manager payment limit under the Consulting Services Agreement.
ADOPT Canyon Lakes GHAD Resolution No. 2025/02 approving the change of GHAD Treasurer from CLT Management, LLC to Laffer Tengler Investments (“LTI”) and approve a contract of services between LTI and Canyon Lakes GHAD.
FISCAL IMPACT:
The GHAD is funded 100% through real property assessments levied on properties within the GHAD.
BACKGROUND:
On June 4, 1985, the Contra Costa County Board of Supervisors adopted Resolution 85/289 approving the formation of the Canyon Lakes Geologic Hazard Abatement District (“GHAD”) and appointed itself to serve as the GHAD Board of Directors (“GHAD Board”). The GHAD includes a GHAD Manager (Sands Construction), GHAD Clerk/Attorney (Fennemore LLP) and a GHAD Treasurer (CLT) all appointed by the GHAD Board of Directors.
1. Annual Budget and Payment Limit for FY 2024/2025 (Resolution 2025/01). The GHAD Board adopts a budget for the GHAD operations each fiscal year. The GHAD Board is being requested to adopt the fiscal year budget for 2025/2026 as prepared by the GHAD Manager which is attached to Resolution No. 2025/01. The proposed fiscal year budget totals $1,228,100.
In addition, the GHAD Board is being requested to update the GHAD Manager payment limit under the existing Consulting Services Agreement as required by that Agreement. The budget attached to Resolution No. 2025/01 identifies that limit at $475,000.
2. Appointment of Change in Name of GHAD Treasurer (Resolution 2025/02). The GHAD Board is also being asked to approve a change in the designation of the GHAD Treasurer from CLT Management, LLC to Laffer Tengler Investments (“LTI”). On June 16, 2020, with Resolution 2020/02, the GHAD Board of Directors appointed CLT Management as GHAD Treasurer. CLT Management has been dissolved. Both CLT Management and LTI were functioning as wholly owned corporations within Butcher Joseph & Co with independent tax ID numbers (TIN). With the dissolution of CLT Management, we ask for approval to transfer the role of GHAD Treasurer from CLT Management to LTI. As was performed under CLT Management, investment management services will continue to be delivered by Laffer Tengler Investments; Laffer Tengler Investments has retained an independent accounting firm to provide accounting and bill payment services for the GHAD as required under the agreement for Professional Services.
Personnel acting in the capacity of LTI will remain the same as under CLT Management. If approved, the GHAD Treasurer will complete actions necessary to change treasurer functions from CLT Management to LTI.
A form contract of services between LTI and Canyon Lakes GHAD is attached to Resolution No. 2025/02. The GHAD Board is being requesting to approve the contract as to form and direct the GHAD General Manager to finalize and execute the contract.
CONSEQUENCE OF NEGATIVE ACTION:
The GHAD will not be able to continue to operate starting July 1, 2025 if the budget is not approved. If the Board does not approve the change in designation of the GHAD Treasurer from CLT Management to LTI, staff requests the Board provide direction on a new Treasurer as the GHAD is required by GHAD Law to have a Treasurer.