CC - Item 4E - Renewal Of Membership In The San Gabriel Valley Council Of GovernmentsTO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER
DATE: JUNE 20, 2001
RE: RENEWAL OF MEMBERSHIP IN THE SAN GABRIEL VALLEY
COUNCIL OF GOVERNMENTS
Attached for your consideration is a letter from the San Gabriel Valley Council of Governments
requesting that the City of Rosemead renew it's membership. Also attached is are copies of their
spending plan for 2001-02 and their most recent annual report.
RECOMMENDATION
It is recommended that the Rosemead City Council authorize the renewal of membership in the
San Gabriel Valley Council of Governments.
COUNCIL
JUN 2 6 2001
ITEM No.
I
San Gabriel Valley Council of Governments
3871 East Colorado Blvd., Suite 101, Pasadena, California 91107-3970 Phone: (626) 564-9702 FAX: (626) 564-1116 E-Mail SGV§sgvcog.org
OFFICERS
President June 12, 2001
Harry L. Baldwin
Vice President Frank Tripepi
Lara L. Blakely
City Manager
Treasurer/Auditor City of Rosemead
D. Barton Doyle
8838 E. Valley Blvd.
Rosemead, CA 91770
MEMBERS
Alhambra RE: 2001-2002 SGVCOG Membership and Dues
Arcadia
Azusa Dear Mr. T epl:
Baldwin Park
Attached, please find your City's invoice for 2001-2002 San Gabriel Valley Council of
Bradbury Governments' membership dues. The attached work program outlines the Governing
Claremont Board's proposed goals and objectives for the upcoming fiscal year and the attendant
Covina allocation of the organization's resources. The budget provides for a continuance of the
Diamond Bar current fees and dues structure, which is as follows:
Duarte
El Monte ✓ Transit and Transportation program fee, which is $.12 per capita and may be paid
Glendora with Proposition A and C funds.
Industry ✓ Air Quality program fee, which is $.12 per capita and may be paid with AB 2766
Irwindale funds.
La Puente ✓ General Fund fees may be paid with General Fund revenue.
In Verne
Monrovia Please note this is a suggested formula. Member agencies are free to determine whatever
.
allocation is best suited to their individual circumstances provided the total payment is
Montebello met.
Monterey Park
Pasadena Thank you for your continued support. SGVCOG has completed yet another very
Pomona successful year, and looks forward to even greater accomplishments for our Valley
Rosemead during the next year. Should you have any questions, please contact me.
San Dimas
San Gabriel Sincerely,
Son Marino
Sierra Madre
South El Monte Nicholas T. Conway
South Pasadena Executive Director
walnut
west Covina Enclosure: 2001-2002 Invoice
2001-2002 Work Plan
EAECIrfI Ve. DIRECTOR/
SECRETARY
Nicholas T. Conway
Arroyo Associates. Inc.
San Gabriel Valley
Council of Governments
3871 E. Colorado Blvd., Suite 1...
Pasadena, CA 91107
Phone: 626 564-9702
DATE 6/12/2001
INVOICE # 00-01-108
BILL TO
City of Rosemead
8838 East Valley Boulevard
Rosemead, CA 91770
DUE DATE 7/1/2001
MAIL PAYMENT TO:
San Gabriel Valley Council of Governments
3871 East Colorado Blvd., Suite 101
Pasadena, CA 91107-3970
Invoice
I DESCRIPTION AMOUNT I
2000-2001 FY Dues/Fees
Air Quality Program Fees (AB2766)
Transit & Transportation Program Fees (Prop. A&C)
General Fund Fees
6,876.00
6,876.00
2,250.00
Total $16.002.00
07
SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS
3871 East Colorado Blvd., Suite 101, Pasadena, California 91107-3970 Phone: (626) 564-9702 FAX: (626) 564-1116 E-Mail SGV@sgvcog.org
DATE: May 17, 2001
TO: Governing Board
FROM: Nicholas T. Conway
Executive Director
RE: SGVCOG 2001-2002 Proposed Work Program
Transmitted herewith is the San Gabriel Valley Council of Governments' (SGVCOG) proposed
work program for the Fiscal Year 2001-2002. This document outlines the accomplishments of
this last year, the proposed objectives for the coming year and the allocation of resources to
achieve those desired outcomes. It is important to note, the proposed work program does not
anticipate an increase in the current dues.
Mission
SGVCOG Mission Statement: "To ensure the San Gabriel Valley's fair share' of
scarce Federal, State and Local resources by fostering consensus among cities in
the San Gabriel Valley regarding policies and programs that address issues
relating to land use, air quality, transportation, solid waste and other matters
deemed essential to our cities. "
2000-2001 Achievements
During this last year, a number of major objectives were achieved in support of SGVCOG's
annual goals.
Goal #1 - Enhance the recognition and political influence of the San Gabriel Valley
✓ We continue to build and strengthen ties with our Valley's elected representatives in
Washington DC, Sacramento, and downtown Los Angeles. We have established
ongoing and regularly scheduled meetings with each of our five Congressional
members, two of whom, Schiff and Solis, were elected this last November. We
continue to build ongoing communication with our elected representatives in
Sacramento, particularly as they change. This last year saw the Valley elect five new
members (Liu, Chavez, Chu, McLeod and Mountjoy) of our seven-member Delegation
and four new members (Margett, Soto, Scott, and Romeo) of our Valley's five State
Senate Delegation.
✓ Hosted a dinner in Washington DC for our member cities, congressional
representatives and other key members of Congress and the Administration. The
event, co-sponsored by Foothill Transit, Blue Line Construction Authority and the
Alameda Corridor-East Construction Authority, was attended by more than 80 people.
The event, which was attended by Secretary of Transportation, Norman Mineta, was
very helpful to strengthening our partnership with both elected and appointed officials
in Washington, demonstrating the depth and breath of our Valley's cities to our
various entities of all parties in Washington, and demonstrating the level of
commitment and support the SGVCOG has in undertaking its various initiatives.
✓ Hosted a dinner in Sacramento for our Valley's Senate and Assemblymembers in
conjunction with the League's annual legislative meeting.
✓ Hosted a monthly breakfast and prepared briefing materials for SGV elected officials
serving on SCAG's Regional Council and various committees. The purpose of these
meetings is to better prepare SGV representatives for subsequent discussions at
SCAG's regional policy meetings.
✓ Twenty-nine (29) of our thirty (30) San Gabriel Valley cities have for the sixth
consecutive year renewed their SGVCOG membership. We have also had a quorum at
all but one of the SGVCOG Board meetings this year.
✓ Maintained contact with various media sources, most notably radio and TV
representatives, that provide media coverage and report on local news events and
assisting them in gaining an understanding and awareness of the San Gabriel Valley.
The San Gabriel Valley is now a designation commonly found in most regional media
sources.
✓ The San Gabriel Valley Newspaper featured a special insert publication on the San
Gabriel Rivers and the COG's efforts to establish the Mountains and Rivers
Conservancy.
Goal #2 - Ensure the San Gabriel Valley receives its fair share of scarce federal, state and
local resources to support needed transportation improvement projects.
✓ Completed the creation of an Interim Joint Powers Agency for the creation of a second
bus transportation zone in the West San Gabriel Valley. The UPA will include nine
cities and Los Angeles County.
✓ Currently in the process of completing the steps required to create a new zone in the
West San Gabriel Valley. We anticipate the Zone Application will be submitted for
MTA Board consideration in Fall 2001
✓ Secured funding to support the update of the EIS/EIR for Phase U of the Pasadena
Blue Line.
San Gabriel Valley Council of Governments 2 2001-20021 roposed Budget
✓ Organized a project steering committee to oversee the Blue Line Phase II project.
Each of the nine cities along the Phase II corridor currently participate in this
important project.
✓ We participated in SCAG's Route 60 Truck Lane feasibility study and successfully
reversed the committee's and staff's recommendation to include San Juan Creek as a
possible route configuration. The feasibility study will continue to the next phase, but
the scope will be limited to the existing SR 60 corridor.
✓ Continue to provide staff support and technical assistance to COG representatives that
serve on SCAG's various committees related to key issues involving transportation
priorities, including 710, ACE, Transit Restructuring, Route 60 Truck Line, and Blue
Line.
✓ Assisted the ACE Construction Authority in continuing its efforts to secure the
remaining $500 million needed to complete the adopted ACE Project.
✓ Assisted the ACE Authority in completing a coordinated plan with San Bernardino,
Riverside, and Orange Counties, and Gateway COG, as required in AB2928, prior to
receiving State funds needed to begin implementation of ACE projects.
Goal #3 - Enhance environmental quality for our 2 million residents, while safeguarding the
political and economic interests of our cities.
✓ Took an active role in opposing the numerical regulations imposed by the Water
Resources Board regarding storm water runoff.
✓ Reactivated the SGVCOG Solid Waste Committee and completed the most thorough
survey ever conducted of solid waste operations, policies, and policy/program
positions in San Gabriel Valley. We also developed an RFQ and hired a consultant to
assist the COG in developing policies and programs for our cities.
✓ Members of the Solid Waste Committee, and its consultant, successfully applied to
participate in each of three (3) California Integrated Waste Management Board
working groups. Those groups were created by SB 2202 and are developing
recommendations that will be forwarded to the State Legislature for action.
✓ Solid Waste Committee coordinated presentation of half-day workshop on the State
Disposal Reporting System and is planning a second workshop on rate negotiations
with waste haulers.
✓ Worked with the South Coast Air Quality Management District on development of
proposed Fleet Rules 1191-1196 requiring certain fleet operators to replace their
vehicles with clean-burning, alternative fuel models.
✓ Created a new Environmental Committee to oversee and coordinate various activities
and initiatives relating to our Valley's air and water quality.
San Gabriel Valley Council of Governments 3 2001-20021'roposed Budget
✓ Hosted an Environmental Summit focusing on San Gabriel Valley environment issues.
Over 100 people attended the event held at the Industry Hills Sheraton. Elected and
appointed leaders, members of the environmental and business community attended
the event.
Goal #4 - Shape planning and economic development policies to help ensure that San
Gabriel Valley cities can continue to grow in ways that maintain residents'
quality of life.
✓ The SGVCOG was the only Subregion in Los Angeles County to accept delegation of
responsibility from SCAG for development of Regional Housing Needs Allocations.
Member cities worked closely and with remarkably little dissension on this effort.
However, based on this experience, we have recommended significant revisions to
housing allocation policies and procedures, and have obtained support from State
representatives in the development of legislation to help get those revisions
implemented.
✓ Following up on the success of the 1998-99 Livable Communities project, we obtained
funding for and have begun work on a third year Livable Communities study, focused
on developing and distributing a toolbox of implementable strategies of use not only to
the three case study cities, but to all 29 member cities.
✓ The Committee oversaw and assisted in the development of a revised socioeconomic
forecast for the SGVCOG Subregion. Supported by Committee and City staff, the
project contractor, GRC Associates, gathered data from local jurisdictions on
population, households and employment levels. The report, issued in August 2000,
showed the population for the SGVCOG Subregion increasing from 1.76 million in
1997 to a projected 2.1 million in 2025 - an increase of 19%. Households are forecast
to increase by 26% over the same period, and employment by 31%. The Subregion is
forecast to add 212,000 jobs from 1997 to 2025.
✓ The committee oversaw and assisted in the development of a regional general plan
update. The project contractor, Cotton/Bridges/Associates, developed an updated
digital general plan map showing land use patterns for the entire San Gabriel Valley.
The summary map and report indicate lower-than-expected densities in much of the
Valley.
General Operating Income
As shown in Figure 1, the 2001-2002 estimated revenues represents a continued decline from the
prior year. The decline is directly attributable to completion of various projects. It is important to
note that the reduction in revenues was offset by a corresponding reduction in our operating
expenditures. It is anticipated, as additional categorical projects are undertaken in the future,
there will be a increase in income to cover the costs of the new program. Our income comes from
two sources: 1) Dues; and 2) Capital/planning monies for our cities made available through
San Gabriel Valley Council of Governments 4 2001-2002Proposed Budget
competitive grants and other
categorical funds from other public
agencies including MTA and
$7,000,000
SCAG.
$6,000,000
$5,000,000
Dues
$4,000,000
Revenues from memberships and
$3,000,000
dues are the primary sources of
$2A00,000
income to support the SGVCOG's
$1,000,000
day-to-day operations and services.
■ DUES ❑ SCAG ■ MCA p MSRC
These funds are also used to support
our efforts in writing grants and 94-95 95-96 96-97 97-98 98-99 99-00 00-01 00-02
seeking other categorical funds. Figure 1
They also provide the needed 9GVCOGOperating Income
matching resources required for the
various categorical projects. Membership and dues money should provide sufficient working
capital to ensure stability, but must be leveraged in achieving desired outcomes.
El Prop. A&C NAB2766 ❑General Fund
$500,000
$400,000
$300.000
$200,000
$100,000
s-
5
Figure 2
General Operating Income from Dues
population, Irwindale and Industry, are
charged the average fees paid by the 27 other
cities, which offsets the loss in income due to
the cap. It is important to note that monies
derived from our dues are, by statute,
restricted to supporting specific eligible
activities, as discussed below and illustrated
in Figure 3.
Proposition A & C - Each member city
currently pays .12¢ per capita from the
receipt of their City's Proposition A & C
As shown in Figure 2, the SGVCOG's
general operating income from dues has
remained relatively constant for the last
three years. Given the fact that 29 of our
30 cities are now paying dues, the
SGVCOG's general operating income has,
for the most part, achieved its maximum
yield under the current fee structure. The
Board's current policy provides for a
capitation of dues at $30,000 annually.
Our three largest cities (Pasadena, E1
Monte and Pomona) benefit from that
capitation policy, which results in $14,900
less in potential income. Conversely, our
two member cities with the smallest
General
Prop. A&C Fund
44% 15%
AB2766
41%
Figure 3
Membership and Dues Revenue
San Gabriel Valley Council of Governments 5 2001-2002Proposed Budget
funds to support our regional transportation activities. As shown in Figure 3, this revenue source
provides 44% of our general operating income.
AB2766 - Each member city currently pays .120 from AB2766 monies to support SGVCOG
programs relating to air quality and transportation. As shown in Figure 3, monies from this
revenue source represents 41% of general operating income.
General Fund - Each member City pays a minimum contribution of $1,500, which increases
based on per ten thousand in population up to a maximum of $3,000, to support the general
administrative activities of the SGVCOG. Reliance on General Funds has decreased
proportionally in the budget. As shown in Figure 3, the SGVCOG's operating monies derived
from this revenue source now account for 14% of the SGVCOG's overall operating income.
Exhibit 1 on the following page provides a comparison of dues paid by cities for the current fiscal
year and the proposed.
Categorical Funds
In addition to income from dues and membership, which supports our core programs, the
SGVCOG anticipates receiving income from the Southern California Association of Governments
(SCAG). This money is earmarked to support specific projects and activities that have been
funded as a result of an application or request submitted by the SGVCOG.
SCAG OWP
Each subregion executes an Overall Work Program adopted by SCAG. All of the revenue
received from SCAG is intended to cover direct costs incurred in providing specific mandated
products. As a condition of receiving these funds, SGVCOG is required to provide a 20% match
in cash or in-kind services. The SGVCOG's adopted policy for providing matching funds is to
use in-kind services spent in working on the various projects provided by staff from our member
cities. For example, the hourly rate established for SGVCOG's Planning Director members is
$75 hour. The time spent by Planning Directors and other City staff on various committee
assignments related to a project is then multiplied by the hourly rate and submitted as
documentation for our matching requirement. These hours and costs are supplemented where
needed by staff from Arroyo Associates, which is the COG's staffing resources. The growth in
our categorical funds and their matching requirement has a significant impact on the organization.
Phase II - Blue Line - The COG Governing Board has established two priorities with respect to
the allocation of SCAG OWP transportation planning funds: 1) Completion of Los Angeles to
Pasadena Metro Blue Line Phase II EIR/EIS, and 2) Completion of a second Transit Zone in West
San Gabriel Valley. Both projects were started this current year and will be completed by June
30, 2002.
SR60 Truck Lane - In addition, we will continue to participate in SCAG's SR-60 Truck Lane
Study and completing the update of the RTP.
San Gabriel Valley Council of Governments 6 2001-20021'roposed Budget
San Gabriel Valley Council of Governments Exhibit 1
2001-2002 Dues Page 1 of 1
CITY
2000
Census
2001-2002
Dues
2000-2001
Dues
Alhambra
85,804
23,292.96
25,122.00
Arcadia
53,054
14,982.96
15,210.00
Azusa
44,712
12,830.88
13,200.00
Baldwin Park
75,837
20,750.88
21,054.00
Bradbury
855
1,705.20
1,732.80
Claremont
33,998
10,109.52
10,578.00
Covina
46,837
13,340.88
13,620.00
Diamond Bar
56,287
15,758.88
16,434.00
Duarte
21,486
6,956.64
7,320.00
El Monte
115,965
30,000.00
30,000.00
Glendora
49,415
13,959.60
15,162.00
Industry
777
14,794.00
14,794.00
,
Irwindale
1,446
14,794.00
14,794.00
La Puente
41,063
11,955.12
12,228.00
La Verne
31,638
9,543.12
10,302.00
Monrovia
36,929
10,812.96
11,952.00
Montebello
62,150
17,316.00
18,000.00
Monterey Park
60,051
16,812.24
18,576.00
Pasadena
133,936
30,000.00
30,000.00
Pomona
149,473
30,000.00
30,000.00
Rosemead
53,505
15,091.20
16,002.00
San Dimas
34,980
10,345.20
10,914.00
San Gabriel
39,804
11,502.96
12,084.00
San Marino
12,945
4,756.80
5,010.00
Sierra Madre
10,578
4,188.72
4,458.00
South El Monte
21,144
7,024.56
7,248.00
South Pasadena
24,292
7,630.08
8,040.00
Walnut
30,004
9,150.96
9,918.00
West Covina
105,080
28,219.20
28.824.00
TOTAL
1,434,045
417,625.52
432,576.80
State of California Inter-Regional Housing Grant - We anticipate receiving grant funding to
develop alternative housing allocations for our cities and communities here in the San Gabriel
Valley. However, those funds are not reflected in this current plan.
Blue Line - Phase II Advocacy - The eleven cities along the Phase 11 route will be contributing
additional funds ($300,000) to support the COG'S efforts to secure funding for this project in DC
and Sacramento. This is identical to the approach used in the formative stages of ACE.
Fund Balance
250,000
200,000
150,000
100,000
50,000
At the time the SGVCOG was created,
two predecessor organizations, San
Gabriel Valley Association of Cities and
San Gabriel Valley Transportation
Coalition, contributed $44,884 and
$19,389 respectively as startup capital
contributions. During its first year of
1995 1996 1997 1998 1999 2000 2001 operation, the SGVCOG ran a deficit
Figure 5 thereby reducing its initial fund balance.
Fund Balance Since that time, as shown in Figure 5, the
SGVCOG has made significant strides in
achieving financial stability. Our fund balance is anticipated to be approximately $200,000 as of
June 30, 2001. These funds are invested in LAIF in accordance with SGVCOG's investment
policy used to meet cash flow needs to the organization throughout the year. Interest income is
estimated to be $15,000 in FY 2002.
General Operating
Expenditures
As shown in Figure 6, the
SGVCOG has four existing
contracts to support its ongoing
operations programs and
services. These ongoing
contracts are paid from the
funds collected from member
dues. Funds received from our
dues are allocated to support
activities in one of five
functional areas, as shown in
Figure 7.
rroyo Associates, Inc.
2002
Proposed I
Budget
$ 300,000
2~001
Acutal
Expenses
$ 300,000
2001
Approved
Budget
$ 300,000
MTA(50% of Permanent Costs -
B. Cardwell)
50,000
50,000
50,000
Burke Willams & Sorsensen
15,000
15,000
15,000
Edwards, Eichel & Beranek
7,500
7,500
7,500
Hilton Farnkopf and Hobson
-
45,000
45,000
Media (Web Site, Newsletter, Etc
10,000
10,000
10,000
$ 382,500
$ 427,500
$ 427,500
Figure 6
SGVCOG Contracts
San Gabriel valley Council of Governments 7 2001-2002Proposed Budget
Transit and Transportation Programs
1.5 1.5
2.0
®
$ 162,000
$ 160,313 $ 191,250
Environmental Programs
1.5
1.5
1.25
$ 162,000
$ 160,313
$ 119,532
Planning
0.5
0.5
0.25
$ 54,000
$ 53,438
$ 23,906
Solid Waste Program
0.25
0.25
0.25
$ 27,000
$ 26,718
$ 23,906
Administration
0.25
0.25
0.25
$ 27,000
$ 26,718
$ 23,906
Total
4
4
4
$ 432,000
$ 427,500
$ 382,500
Figure 7
Contract Allocations to Functional Areas
Arroyo Associates, Inc. (AAI)
AAI is responsible for the day-to-day management of SGVCOG. The firm provides staff support
to the Governing Board and all committees including: Transportation, Planning Directors, Public
Works/Engineering, Transit Restructuring, Trucking Committee, Solid Waste, Environmental
Quality, Legislative, San Gabriel River and Mountains Conservancy, Regional Housing Needs
Assessment and Blue Line Authority. At the time, AAI began this service, in addition to the
Governing Board, there were two SGVCOG committees: City Manager Technical Advisory and
Planning Directors.
In addition, AAI prepares and distributes meeting minutes and Board actions, conduct analysis,
prepare all grant applications and staff reports; prepare, copy and distribute all correspondence
and mailings, oversee and manage all contracts and projects and provide office space, utilities and
all ancillary services
necessary to run the
Management Fee $ 300,000
Reproduction, Telephone, Postage, Faxes, Etc. $ 40,000
SCAG In-Kind Match Requirement (20%) $ 95,000
Balance Available $ 188,000
Staffing Available 165,000/15 = 2,200 = 2.0 FTE
Figure 8
Arroyo Budget
Burke, Williams & Sorensen (BWS)
day to day operations
of the COG. As
shown in Figure 8,
that amount, which is
remaining unchanged
for the fourth year,
currently provides
approximately 2.00
FTE staffing level.
BWS provides legal assistance to the Board in policy deliberations. A retainer agreement was
executed for $3,750 per quarter or $15,000 annually for the COG's legal services. Last year
provides for the legal services that were higher than budget due to the legal issues surrounding the
formation of the conservancy and evaluating the alternatives to forming a new transit zone in our
Valley. I do not anticipate the COG will need additional legal services this year to warrant an
increase in the budget.
San Gabriel Valley Council of Governments 8 2001-2002Proposed Budget
Edwards, Eichel and Beranek (EEB)
EEB is a certified public accounting firm and conducts an annual audit to ensure compliance with
adopted rules and regulations. A fee of $7,500 is paid for that audit.
MTA
In 1997, the Governing Board authorized execution of a contract with MTA to pay 50% of the
staff costs involved in providing assistance to John Fasana, San Gabriel Valley MTA Board
representative. The contract amount is $4,166.67 per month or $50,000 annually and is intended
to be matched by an equal amount from MTA for this staff position.
Hilton Farnkopf and Hobson (HF&H)
HF&H was hired the last year to provide analytical and advocacy support to the SGVCOG Solid
Waste Committee. The firm has been instrumental in analysis of the Valley-wide survey of waste
operations, and in development of a strategic work plan for the Committee. HF&H will continue
to monitor legislation, represent the SGVCOG to relevant agencies, recommend policy positions
and program options, and report to the Committee and Governing Board as needed. We have
recommended an FY2000-01 contract not to exceed $30,000. This was a temporary program and
the budget was based on a preliminary estimate of the Committee's Work Plan for FY 2000-2001.
While judged to be a successful endeavor, it was the Solid Waste Committee's recommendation
not to continue the contract this next year.
Media (Web Site, Newsletter)
A major objective of the COG is to enhance the visibility and accessibility of information
regarding the San Gabriel Valley and its communities. We rely on two principal mediums:
newsletter and web site. The SGVCOG will continue to publish and distribute The Gabrielino
Carillon three times a year in an effort to improve our communication with our organization
stakeholders, which are growing each year. The editor of the newsletter is a DBE/WBE located
here in San Gabriel Valley. www.SGVCOG.org, the COG's web site has proven to be a very
effective communication tool in reaching stakeholders. It is continually updated with meeting
information and upcoming projects. The firm that manages our web site, Digital Media, is
SBE/DBE, also located here in the San Gabriel Valley as well.
2000-2001 Goals and Objectives
There are a number of objectives to be achieved by our respective committees during the coming
year and each of them is important in their own right and are listed below. However, there are
several objectives that, due to their overarching importance, need to be achieved in the next year.
Listed in order of priority:
Leadership Development - The San Gabriel Valley is fortunate to have many fine elected officials
who seek leadership opportunities in a variety of organizations (League of California Cities,
Independent Cities Association, Contract Cities Association, SCAG, AQMD, etc.). Many of our
elected leaders are seasoned veterans who provide leadership on important issues not only in their
cities, but also in San Gabriel Valley, the entire region and State. Due to the advent of term limits and
just the stress and strains of serving in public office, we are beginning to witness turnover of our
San Gabriel Valley Council of Governments 9 2001-20021'roposed Budget
elected leaders. We need to develop the next generation of elected leaders here in the San Gabriel
Valley. There are a number of initiatives that provide funding to organizations such as the SGVCOG
to put together an ongoing development program for both current and further office holders. I
recommend the SGV establish a leadership development program for our cities here in San Gabriel
Valley. This could possibly be done with SGV Economic Partnership and include business leaders in
that program.
Transportation - We have achieved many of the transportation objects that were set forth five years
ago. We now need to identify and set forth our next five-year transportation goals. We have several
key transportation issues that need to be addressed during the next year. We need to make sure the
ACE Project continues to remain on schedule and secure the needed remaining funds. Planning for
Phase II of the Pasadena Blue Line needs to commence immediately so we are able to keep building
on the success of the Authority's accomplishments and ensure the completion this major transportation
project out to Claremont. Completion of the 710 has been stated a priority of the SGVCOG since its
inception. However, it does not appear we are any closer to having resolution of this transportation
issue. Although a regional issue, the problems rests squarely in the San Gabriel Valley and the San
Gabriel Valley must take a leadership position in trying to resolve this issue.
Housing - Seventy percent of the Valley's existing housing inventory is singe family detached units.
We anticipate receiving State funds to assist our cities in determining housing needs and developing
allocation methodology and development strategies that will facilitate the growth of housing consistent
with our communities' needs and desires.
Business Community Partnership - The San Gabriel Valley has approximately 65,000 businesses,
who account for some 750,000 jobs. During the last decade, SGV lead the County in the growth of
new private sector jobs. We are home to major national and international companies. Moreover, our
Valley's economy is undergoing major changes with the advent of high-tech and bio-tech businesses
locating along the 210 corridor. We are also home to many small businesses. As an organization
whose mission is to unify and move forward the public sector agenda, we have achieved considerable
success. However, we cannot achieve our full potential without an increased role and visibility of the
business community. We are becoming stymied on a number our initiatives because of the absence of
a business partner. This issue has been discussed on numerous occasions with a commitment made to
help build the partnership. To date, San Gabriel Valley has been unable to build that business alliance.
This last year saw the consolidation of the San Gabriel Valley Economic Partnership and the San
Gabriel Valley Economic Council. This was a much needed step in the right direction. However, the
highest priority must now be given to identifying and organizing key representatives of the large
businesses here in the Valley who can work in partnership with the COG to secure discussed
outcomes. SGVCOG has endeavored, and successfully so, to take our initiatives to regional, state and
national forums. We cannot maintain that level of success on any of these endeavors unless we have
an equally vocal and visible business community sitting with us at the table asking for SGV "fair
share" of resources.
Environment - Water quality has always been an issue here in SGV and will be increasingly more
visible now that federal funds have been allocated to begin addressing this issue. The development of
brownfield sites that are scattered throughout the Valley will become another issue that will receive
increased awareness in the coming year. These issues along with air quality will dominate the
discussion of the environment in the Valley during the next twelve months.
Governance - SGVCOG is a joint powers agency comprised of the 30 cities in San Gabriel Valley. In
addition to our cities, we have more than three dozen special districts that provide a wide variety of
services to our cities. The SGVCOG has developed to the point that it should begin to seek formal
recognition and ongoing dialogue with those special districts that serve our Valley's constituents as
well.
San Gabriel Valley Council of Governments 10 2001-20021'roposed Budget
Jun-21-01 09:09
San Gabriel Valley Council of Governments
Primary Government
Financial Statements
With Independent Auditor's Report
Year Ended June 30, 2000
P. 02
Jun-21-01 09:10
SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS
TABLE OF CONTENTS
Pave
Independent Auditor's Report
Financial Statements
Balance Sheet
Statement of Income and
Fund Equity
Statement of Cash Flows
1
2
3
P.03
Notes to Financial Statements 4
Jun-21-01 09:10
Ern~:,t:us. Eicnei. e lieltn~I'K
INDEPENDENT AUDITOR'S REPORT
Hembers of the Governing Board
San Gabriel Valley Council of Governments
P.04
We have audited the accompanying primary government balance sheet of the San
Gabriel Valley Council of Governments as of June 30, 2000, and the related
statements of income and cash flows for the year then ended. These financial
statements are the responsibility of the entity's management. Our responsibility.
Is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
A primary government is a legal entity or body politic and contains all funds,
departments and activities that are not legally-separate. Such legally separate
entities are referred to as component unite.
In our opinion, the primary government financial statements referred to above
present fairly, in all material respects, the financial position of the San
Gabriel Valley Council of Governments as of June 30, 2000 and the results of its
operations and its cash flown for the year then ended in conformity with
generally accepted accounting principles.
However, these primary government financial statements, because they do not
include the financial data of the component unit of the San Gabriel Valley
Council of Governments, namely the Alameda Corridor East Construction Authority,
do not purport to and do not, present fairly the financial position of the San
Gabriel Valley Council of Governments as of June 30, 2000, and the results of its
operations for the year then ended.
November 15, 2000
Pasadena, California
k GSL..a,[ ► L,4,,-
Edwards, ~tEichel & Beranek
Certified Public Accountants
rIIX,
ii26 / i I..;S00
p:~\Iw 7nnnJ_: at•~ioinpu.rn conu
Jun-21-01 09:10
Ban Gabriel Valley Council of Governments
Balance Sheet
June 30, 2000
Beets
Cash and cash equivalents, Note 2
Accrued interest receivable
Accounts receivable
Pasadena Blue Line
Southern California Association of Governments
(SCAG)
Foothill Transit
Arroyo Associates
Advances to, Alameda Corridor East Construction
Authority (ACE) Note 5
Prepaid items
Administration
Pasadena Blue Line
Equipment, net of accumulated depreciation $1308
Total Assets
Liabilities and Fund EQUity
Liabilities
Accounts payable
Loan payable to the City of Industry
Deferred Income
Total Liabilities
Fund Equity
5 177,640
3,307
25,000
101,106
93,968
3.083 223,157
2,105,529
25,000
25,000 50,000
8,790
j2,568,4 33
Contributed capital
capital contribution by the San Gabriel
Valley Coalition, to be used for
transportation studies. 19,389
Capital contribution by the San Gabriel
Valley Association of Cities. 44,884
Retained earnings
Total fund equity
Total Liabilities and Fund Equity
The accompanying notes are an integral part
of these financial statements
5 246,557
2,000,000
25,000
2,271,557
64,273
232.593
296,866
$2,568,423
P. OS
1
Jun-21-01 09:10
Ban Gabriel Valley Council of Governments
Statement of Income and Fund Equity
Year ended June 30, 2000
Revenues
Dues
General fund
Grants and matches from other governments..
Southern California Association of Governments
(SCAG) grants
other revenues
Total revenues
Program expenses
Air quality
Administrative and technical
Transportation
Southern California Association
of Governments grants
Other
Administrative expenses(note 3)
Total expenses
Net income from operations
Non-operating income
Interest income
Net income for the period
Fund equity at the beginning of the period
Fund equity end of the period
121,000
33,000
131,000
198,742
989
The accompanying notes are an integral part
of these financial statements
$ 431,024
209,733
15,569
656,326
484,731
146,142
630,873
25,453
18,297
43,750
253,116
S 296,866
P.06
2
Jun-21-01 09:11
San Gabriel Valley Council of Governments
Statement of Cash Flows
Year ended June 30, 2000
Cash flows from operating-activities
P. 07
Net income from operations $ 25,453
Adjustments to reconcile net income from operations
Depreciation 3,093
Decrease in receivables 256,543
(Increase) in prepaid expenses (50,000)
(Increase) in accrued interest (1,163)
(Decrease) in accounts payable (491,506)
Increase in deferred income 25,000
Increase in advances to the Alameda Corridor East (ACE)
Construction Authority 11.931,0251
Net cash (used by) operating
activities (2,163,606)
Cash flows from investing activities
Interest income 18,297
Cash flows from non-capital financing activities
City of Industry loan 2.000.000
Net decrease In cash and cash equivalents (145,309)
cash and cash equivalents at the beginning
of the period 322,949
Cash and cash equivalents at end of the period L111"640
The accompanying notes are an integral part
of these financial statements
3
Jun-21-01 09:11
San Gabriel Valley council of Governments
Notes of Financial Statements
June 30, 2000
Note 1 Summary of Significant Policies
Oroanizatlon and activities
P.08
The San Gabriel Valley Council of Governments (the COG) was created
effective March 17, 1994 by a joint powers agreement among the
various member San Gabriel Valley cities to promote cooperation,
exchange ideas,. coordinate regional government programs and to
provide recommendations and solutions to problems of common and
general concern to member governments. It is the immediate successor
to the San Gabriel Valley Association of Cities, an unincorporated
association. Its members organized the COG because they recognized
a need for a more permanent and formalized structure.
The COG is supported by contributions from its member cities and
also receives grant funds to conduct regional studies on
Transportation, Air Quality, Environment Matters, as a sub grantee
of other governmental entities. The COG is a non-profit California
Public Agency? thus it is tax exempt.
The Reporting Entity
These primary government unit financial statements do not include
the capital project fund of the component unit, Alameda Corridor
East Construction Authority.
Basis of Accounting
The accounting records of the COG are maintained on the accrual
basis of accounting.
Cash and Cash Equivalents
The COG considers money market funds and all equivalent liquid debt
instruments purchased with a maturity of 3 months or leas to be cash
equivalents.
Grant Funds and Accounts Receivable
The COG is the recipient of state grant funds through regional
agencies, the Air Quality Management District (AQMD), the
Metropolitan Transit Authority (MTA), and the Southern California
Association of Governments (SCAG). The MTA grant for local
transportation requires 20 per cent participation by the COG. The
SCAG grant requires only support for expenditures reimbursed.
Accounting for Federal and State grants generally calls for
recognition of income from grant funds only as those funds are
obligated or paid out.
4
Jun-21-01 09:11
San Gabriel Valley Council.- of Governments
Notes to Financial Statements
Note 1 Summary of Significant Policies (cont.)
P.09
All receivables relate to expense reimbursements from governmental
agencies and are expected to be fully collectible. Accordingly, an
allowance for doubtful accounts is not provided.
Proprietary Fund Types
Proprietary funds are accounted for using the economic measurement
focus; the accounting objective is determination of net income. All
assets and liabilities of a proprietary fund activity are included
on its balance sheet. Proprietary fund capital is segregated into
contributed capital and retained earnings.
Office Ecru pment
Office Equipment is carried at historic cost. Depreciation is
provided using the straight-line method over the individual asset's
estimated useful life, usually five years for computers, copiers and
other electronic equipment, ten years for cabinets, desks and
furniture.
!Zee of Estimates
The presentation of financial statements in conformity with
generally accepted accounting principles (GAAP) requires the use of
estimates in many areas. Estimates used in these financial
statements relate primarily to fixing estimated useful lives to
depreciable assets. Based upon the preceding information, estimates
may not have a material effect on these financial statements.
Note 2 Cash and Investments
Under provisions of the California Government Code (Code), the COG
is authorized to invest in:
A variety of federal and state treasury obligations (including
local California agencies)
Obligations or other instruments of 'or issued by a federal
agency or government sponsored enterprise
Bankers' acceptances which are eligible for purchase by the
federal reserve system (subject to certain limitation.)
Prime quality commercial paper (subject to certain
limitations)
Negotiable certificates of deposit issued by nationally or
state chartered banks, savings and loan associates and credit
unions
5
Jun-21-01 09:12
San Gabriel Valley council of Govervment■
Notes to Financial Statements
Note 2 Cash and Investments (cont.)
P_10
Repurchase agreements or reverse repurchase agreements of any
securities authorized by the code.
Cash and investments at year-end are categorized as follows to give
an indication of'the level of credit risk assumed.
Cateaorv 1 Insured and registered or collateralized securities
held by the COG or its agent in the COG's name.
Cateaorv 2 Uninsured and unregistered, with securities held by
the counterparty's trust department or agent in the COG's
name.
Cateaorv 3 Uninsured and unregistered with securities held by
the counterparty or by its trust department or agent but not
in the COG's name.
At June 30, 2000 the net carrying amount of cash was $4,917 on
deposit with a bank, category 1.
Investments consisted of $172,724 deposited with the Local Agencies
Investment Fund, LAIF, an instrumentality of the State of
California, and is not categorized.
GASS 31 requiring market value reporting of'short term investments
became effective for years ending June 30, 1998. The COG at June 30,
2000 was invested only in the Local Agencies Investment Fund
(L.A.I.F.) a fund administered by the treasurer of the State of
California. Market value so closely approximates cost that the
difference is minor. Accordingly, management has elected to continue
to carry investments at cost.
6
Jun-21-01 09:1,2
P.11
San Gabriel Valley Council of Governments
Notes to Financial Statements
Note 3
Note 4
Administrative Expenses
The following were the administrative expenses incurred for the
audit period, unallocated to grant revenues.
Office supplies and expense
Newsletter
Transit
Entertainment
Solid waste
Legal
Audit
Meetings
Insurance
Depreciation
Internet services
Contributions
Dues 6 subscriptions
other
Total
$ 5,124
7,110
49,743
16,604
24,782
17,526
7,225
7,036
1,499
3,093
2,060
2,000
625
1.715
$146,142
Alameda Corridor East Construction Authority (ACE)(Component unit)
Because of the size and scope of activities involving the Alameda
Corridor East Project, a separate joint powers authority was set up
for this purpose, which while affiliated, will act separately from
the COG. The JPA became operative in October 1998 and is empowered
to conduct business, hire the necessary consultants and contractors,
enter into contracts and agreements and to issue debt instruments as
needed.
The ACE Authority was in its nascent stage until after June 30,
1999, the COG paying its expenses. In August of 1999 the COG
borrowed $2,000,000 from the City of Industry with a pledge of the
proceeds of the grants and loans of the grants outstanding. The note
is to mature no earlier than 18 months after issuance, no later than
36 months. Prepayment require" five days notice and interest is not
to exceed the LAIF interest rate. Loan proceeds are deposited into
a segregated account and may only be disbursed as directed by the
chief executive of the ACE Authority or the treasurer of the COG.
At its October meeting the Governing Board voted to amend the Joint
Powers Agreement of the ACE Authority to facilitate obtaining
outside financing and also to extend the City of Industry loan. The
resolution is awaiting approval by the City Councils of the member
cities and also approval of the extension request by the City of
Industry. The "Industry" loan originally was to mature no earlier
than February 2001, no later than August 2002. Interest is paid by
the ACE Authority and was up to date as of June 30, 2000.
7
Yes:
Bruesch, Imperial, Clark, Vasquez
No:
Taylor
Absent:
None
Abstain:
None
The Mayor
declared said motion duty carried and so ordered.
Councilman Taylor stated that he voted no as he did at the Budget Study session because
there is not a Redevelopment Agency budget to cross correlate many of the items.
W. CONSENT CALENDAR
CC-A AUTHORIZATION TO ATTEND LEAGUE OF CALIFORNIA CITIES
ANNUAL CONFERENCE, SEPTEMBER 12-15,2001, SACRAMENTO
CC-B AUTHORIZATION TO ATTEND NATIONAL LEAGUE OF CITIES
"YOUR CITY'S FAMILIES CONFERENCE"- SEPTEMBER 19-22,2001,
MINNEAPOLIS, MINNESOTA
CC-C AUTHORIZATION TO ATTEND 6f° ANNUAL CALIFORNIA JOINT
POWERS INSURANCE AUTHORITY CONFERENCE, OCTOBER 10-12,
2001, SAN FRANCISCO
CC-D SELECTION OF CONSULTANT FOR COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) AND HOME PROGRAM SERVICES
~C-E RENEWAL OF MEMBERSHIP IN THE SAN GABRIEL VALLEY
COUNCIL OF GOVERNMENTS
CC-F 2000-01 BUDGET AUTHORIZATION TO TRANSFER $379,410 FROM
UNAPPROPRIATED RESERVES TO ORGANIZATIONS 4150, 4180, 4310,
4330, 4340, 4630, 4640, 4650, 4660 AND 4840
CC-G ANNUAL ADOPTION OF CITY'S INVESTMENT POLICY
MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN VASQUEZ
that the Council adopt the aforementioned items on the Consent Calendar. Vote resulted:
Yes:
Bruesch, Taylor, Imperial, Clark, Vasquez
No:
None
Absent:
None
Abstain:
None
The Mayor declared said motion duly carried and so ordered.
V. MATTERS FOR DISCUSSION AND ACTION
A. REQUEST TO EXTEND 5-YEAR AGREEMENT WITH AT&T FOR
CELLULAR ANTENNAE AT ROSEM EAD PARK
MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN VASQUEZ
that the Council approve the Fourth Addendum, which was first placed in 1989. Vote resulted:
Yes:
Bruesch, Taylor, Imperial, Clark, Vasquez
No:
None
Absent:
None
Abstain:
None
The Mayor declared said motion duly carried and so ordered.
CCAGCNDA:6-26-01
Page 0