CC - Item 4A - Renewal Of Membership In The San Gabriel Valley Council Of GovernmentTO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: `RANK G. TRIPEPI, CITY MANAGER
DATE: 1 JULY 6, 2000
RE: RENEWAL OF MEMBERSHIP IN THE SAN GABRIEL VALLEY
COUNCIL OF GOVERNMENTS
Attached for your consideration is a request from the SGVCOG requesting that the City of
Rosemead renew it's membership. Also attached is a 2000 -0I Budget and the 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.
d
COUNCIL :�,C'"°�?DA
JUL 112000
ITEM No. de, -A
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 9, 2000
Harry L. Baldwin
Vice President
Frank Tripepi
Lara L. Blakely
City of Rosemead
Treasurer /Auditor
8838 E. Valley Blvd.
D. Barton Doyle
Rosemead, CA 91770
MEMBERS RE: 2000 -2001 SGVCOG Membership and Dues
Alhambra
Arcadia Dear Mr. Tripepi:
Azusa
Baldwin Park Attached, please find your City's invoice for 2000 -2001 San Gabriel Valley Council of
Governments' membership dues. The draft work program proposed for the upcoming
Bradbury -
year, which was sent to you for review, details proposed budget and staffing. The
Claremom budget provides for a continuance of the current fees and dues structure, which is as
Covina follows:
Diamond Bar
Duane ✓ Transit and Transportation program fee, which is $.12 per capita and may be paid
El Monte with Proposition A and C funds.
Glendora ✓ Air Quality program fee, which is $12 per capita and may be paid with AB 2766
Industry funds.
Irwindale ✓ General Fund fees maybe paid with General Fund revenue
La Puente
In Verne 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
Monrovia
met.
Montebello
Monterey Park Thank you for your continued support. SGVCOG has completed yet another very
Pasadena successful year, and looks forward to even greater accomplishments for our cities during
Pomona the next year. Should you have any questions, please contact me.
Rosemead
San Dimas Sincerely,
San Gabriel
San Marino
Sierra Madre
Nicholas T. Conway
South EI Monte Executive Director
South Pasadena
Walnut Enclosure: 2000 -2001 Invoice
West Covina
E%ECUTI VE DIREQOR/
SECRETARY
Nicholas T. Conway
Arroyo Associates, Inc.
San Gabriel Valley Council of Governments
3671 East Colorado Blvd., Sude 101, Pasadena, California 91107 -3970 Plane: (626) 564.9702 FAX: (626) 5641116 E -Mail SGV@sgvcog.org
DATE 6/13/2000
Invoice INVOICE NO. 99 -00 -46
DUE DATE 1/7/2000
BILL TO
REMIT TO
City of Rosemead
San Gabriel Valley Council of Governments
8838 East Valley Boulevard
3871 East Colorado Blvd., Suite 101
Rosemead, CA 91770
Pasadena, CA 91107 -3970
DESCRIPTION AMOUNT
2000 -2001 FY Dues/Fees
Air Quality Program Fees (AB2766) 6,876.00
Transit & Transportation Program Fees (Prop. A &C) 6,876.00
General Fund Fees 2,250.00
Total $16,002.00
SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS
" - e m
3871 East Colorado Btvd., Suite 101, Pasadena, California 91107-3970 Phone: (626) 564 -9702 FAX: (626) 564 -1116 E-Mail SGV@sgvcog.org
DATE: June 7, 2000
TO: Governing Board
FROM: Nicholas T. Conway
Executive Director
RE: SGVCOG 2000 -01 Proposed Work Program
Transmitted herewith is the San Gabriel Valley Council of Governments' ( SGVCOG) proposed
work program for the Fiscal Year 2000 -01. 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. The new programs for Solid Waste were funded through reallocation
of existing resources.
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. "
1999 -2000 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
• Negotiated an agreement with Caltrans that permitted the placement of signs on all major
freeways (I -10, 110, 210, 605, and 60) indicating motorists traveling in the Los Angeles
area were entering San Gabriel Valley.
Established 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.
We continue to build and strengthen our 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 and have
similar meetings with the staff members for our Assembly and Senate representatives as
well.
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 and the Alameda Corridor -East Construction Authority, was attended by
more than 80 people. The event, which was held at Union Station, 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.
• Successfully completed a State Senate - directed audit of the startup costs associated with
the ACE Project. The audit indicated all operating policies and procedures were operating
in an efficient and cost - effective manner.
Hosted a breakfast meeting for Senator Dianne Feinstein, co- sponsored by the San Gabriel
Valley Economic Partnership. Over 200 people attended, making it the largest gathering
the Senator had in a series of meetings throughout the State that week. In subsequent
correspondence, the Senator expressed her appreciation and support for the San Gabriel
Valley.
Hosted a dinner in Sacramento for our Valley's Senate and Assembly members. Over 50
people attended the dinner, including 4 of our 5 Senators and 5 of our 7
Assemblymembers.
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 was to better prepare SGV representatives for subsequent discussions at SCAG's
regional policy meetings.
Goal #2 — Ensure the San Gabriel Valley receives its fair share of scarce federal, state and
local resources to support needed transportation improvement projects.
• Secured approximately $250 million dollars in new funds to support the Alameda
Corridor -East Project. Funds allocated to support this project came from the California
Transportation Commission.
• Completed the feasibility analysis to expand the Foothill Transit Zone and attempted to
begin implementing that expansion. Due to various statutory requirements associated with
the creation of a new bus zone, it was determined we could not expand the Foothill Transit
San Gabriel Valley Council of Governments 2 2000 -2001 Budget
Zone as originally intended. We are currently working with the newly created San
Fernando Valley Transit JPA to create two new zones in our respective Valleys.
• Played an integral role in supporting the creation and subsequently organizing the newly
created Los Angeles to Pasadena Metro Blue Line Construction Authority. We continue
to be actively involved and provide technical support to the SGVCOG's representative on
the five - member board.
• Secured designation in Governor Davis's Congestion Relief Transportation Plan, which
included $150 million for the ACE Project, $40 million for the Blue Line, $35 million for
the SR -71 expansion, and $100 million for the I -10 HOV lane expansion.
• Completed Phase I of the study of truck traffic flow, which included identification of
several high priority locations throughout San Gabriel Valley that will be the subject of
more detailed study in Phase 11 of the project.
• Participated in SCAG's feasibility study of establishing truck only lanes on SR-60.
Goal #3 — Enhance environmental quality for our 1.9 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 stormwater runoff.
• Participated in the development of legislation to create the San Gabriel Mountain and
Rivers Conservancy and worked with our State Senate and Assembly members to ensure
its passage in the State Legislature. We also were successful in having $15 million set
aside in Proposition 12 (State Park Bond) for the newly created Conservancy.
• 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.
• Worked with the South Coast Air Quality Management District on development of
proposed Fleet Rule 1191, requiring certain fleet operators to replace their light and
medium duty vehicles with clean - buming, alternative fuel models. We continue to
provide much needed input on Rules 1192 and 1193, which impact transit buses and solid
waste vehicles respectively.
• 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 2000 -2001 Budget
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.
Goal #5 — Maximize participation of our member cities in the SGVCOG, and facilitate the
cooperative work effort that has been the basis of our successes to date.
• Twenty-nine (29) of our thirty (30) San Gabriel Valley cities have for the fifth consecutive
year renewed their SGVCOG membership. We have also had a quorum at all SGVCOG
Board meetings this year.
• Created a SGVCOG Public Works Directors/Engineers Committee to facilitate
communication and cooperation for our cities on public infrastructure and related
activities.
• In addition to our elected officials' active participation, this past year saw an increase in
the number of standing and ad hoc committees, and with it, an increase in participation
from staff members in our respective cities, including City Managers, Planning and Public
Works Directors, and environmental quality staff. The increasing participation is
reflective of a growing recognition and credibility of the SGVCOG and its ability to serve
as a resource to our members in addressing a wide variety of issues.
• More than 100 guests attended our third annual dinner for the San Gabriel Valley's elected
officials, held as part of the San Gabriel Valley Economic Outlook Conference. The event
held at the Industry Hills Sheraton focuses on recognition of outgoing and incoming
elected officials in each of our member cities.
General Operating Income
As shown in Figure 1, the 2000 -01 proposed revenues represents a continued decline from the
prior year. The decline is directly attributable to completion of various projects, most notably the
Alameda Corridor -East Project and Electric Vehicle Charging Stations programs. 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 2000 -2001
competitive grants and other
categorical funds from other s7,000,000
public agencies including MTA, $6,000,000
MSRC and SCAG.
S5,000,000
$4.000.000
Dues $3,000,000
Revenues from memberships and $2'000'000
dues are the primary sources of $1,000,000
income to support the SGVCOG's $-
®DUES ❑SCAG ®MTA MMRRC
day -to -day operations and 94-95 95 -96 96 -97 97 -98 98 -99 99-00 00-01
services. These funds are also Figure 1
used to support our efforts in SGVCOG Operating Income
writing grants and seeking other
categorical funds. They also provide the needed 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.
As shown in Figure 2,
the SGVCOG's general
operating income from
dues has increased
seventy -five percent
(75 %) during the last six
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
$500,001
$400,010
$300.000
$201.000
$101.000
s-
Figure 3
Membership and Dues Revenue
® Prop. A &C NAB2766 NGeneral Fund
provides for a capitation of dues at $30,000
annually. Our three largest cities (Pasadena,
El Monte and Pomona) benefit from that
capitation policy, which results in $17,500 less
in potential income. Conversely, our two
member cities with the smallest population 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.
San Gabriel Valley Council of Governments 5 2000 -2001 Budget
FY95 -96 FY9G97 FYW -98 FYW99 FY99-00 FYUMP
Figure 2
General Operating Income from Dues
Proposition A & C — Each member city currently pays .100 per capita from the receipt of their
City's Proposition A & C 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 42% 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 I 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.
�YKIeI
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. Asa condition of receiving these funds, SGVCOG is required to provide a25% 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.
As shown in Figure 4 below, SGVCOG has budgeted $957,500 to support SCAG OWP funds
and required in -kind match for FY 2000 -01.
San Gabriel Valley Council of Governments 6 2000 -2001 Budget
Transit Restructuring
During the last year, each of the eight cities in the new proposed transportation zone contributed
funds to cover the additional costs incurred in creating that second zone. These funds were
supplemented by monies appropriated by SCAG and MTA. The funds collected to date
($175,000) have been allocated as follows: Parsons Brinkerhoff ($30,000) to complete the
financial analysis regarding the transit zone; and Capital Representation ($24,000) and Richard
Katz ($60,000) to provide technical assistance to the COG in dealing with policymakers and
union representatives in Sacramento regarding transit zone creation.
Fund Balance
At the time the SGVCOG was created, two predecessor organizations, San Gabriel Valley
Association of Cities and San Gabriel 200,000
Valley Transportation Coalition,
contributed $44,884 and $19,389 150,000
respectively as startup capital
contributions. During its fast year of 100,000
operation, the SGVCOG ran a deficit
thereby reducing its initial fund 50,000
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
$180,000 as of June 30, 2000. These
1995 1996 1997 1998 1999 2000
Figure 5
FimdBalance
funds are invested in LAW in accordance with SGVCOG's investment policy used to meet cash
flow needs to the organization throughout the year. The interest income derived from these funds
can be used by the Board to support various activities and issues that may be raised by our
San Gabriel Valley Council of Governments 7 2000 -2001 Budget
Figure 4
2000 -01 SCAG OWP Budget
members during the course of the year. The interest income during the last two years was limited
due to the COG's financial support of the ACE project. Now that the project has been created and
funded, the interest income will increase this next year.
General Operating Expenditures
As shown in Figure 6, the
SGVCOG has five 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.
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
Technical Advisory, Public Works/Engineering Technical Advisory, Transit Restructuring and
Trucking Committee, Solid Waste, Environmental Quality, Legislative, San Gabriel River and
Mountains Conservancy, and Regional Housing Needs Assessment. 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.
San Gabriel Valley Council of Governments 8 2000-2001 Budget
SGVCOG Contracts
Contract Allocations by Functional Areas
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
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 third 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.
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 $7,000 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 recently hired 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 F'Y2000 -01 contract not to exceed $30,000. This is a new program and the
budget is based on a preliminary estimate of the Committee's Work Plan for FY 2000 -2001.
San Gabriel Valley Council of Governments 9 2000 -2001 Budget
Should the consultant hours be higher than the estimate, we will need to identify new funding
sources from our member cities to support this service.
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:
Business Community Partnership — The San Gabriel Valley has approximately 60,000
businesses, who account for some 750,000 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 locaiing 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.
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
San Gabriel Valley Council of Governments 10 2000 -2001 Budget
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.
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 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 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.
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 constituents as well.
In addition to these major areas of focus, the following specific objectives have been identified
for the coming year.
Goal #1 — Enhance the recognition and political influence of the San Gabriel Valley
Monitor legislation important to SGVCOG objectives and, as appropriate, take a
leadership role in working with legislators.
Continue strengthening our relationship with SGV representatives in Sacramento and
Washington, D.C.
San Gabriel Valley Council of Governments 11 2000 -2001 Budget
• Host events for Senators Barbara Boxer and Dianne Feinstein.
• Host our annual dinner in Washington, D.C. for federal representatives and San Gabriel
Valley officials.
• Host monthly briefing sessions and provide technical support and assistance to SGV
elected officials serving on SCAG Regional Council and Committees.
Goal #2 — Ensure the San Gabriel Valley receives its fair share of scarce federal, state and
local resources to implement needed transportation improvement projects.
• Ensure that SCAG's RTP update and MTA's Long Range Plan update include SGVCOG
adopted high priority transportation projects.
• Complete Phase II of the trucking study and develop financing plan to ensure
implementation of the study's recommendations.
• Support the Alameda Corridor -East Construction Authority's efforts to implement the
ACE Project and work with local, state and federal officials to obtain needed funding.
• Support the SGVCOG Blue Line Authority's efforts to implement Phase I by 2003 and
work with local, state and federal officials to obtain needed funding.
• Coordinate and support EIR update of Pasadena Phase II Metro Blue Line extension to
Claremont.
• Coordinate and support nine western SGV cities' transit zone application and approval by
MTA. Coordinate Zone efforts with San Fernando Valley cities and legislators.
• Ensure adoption of the Governor's Congestion Management Plan.
Goal #3 — Enhance environmental quality for our 1.9 million residents, while safeguarding
the political and economic interests of our cities.
• Work with the South Coast Air Quality Management District regarding development of
fleet Hiles affecting heavy duty vehicles, transit buses, school buses and waste hauling
vehicles, to ensure that member cities' interests are protected as the goal of cleaner air is
pursued.
• Work through the SGVCOG Solid Waste Committee on behalf of member cities regarding
state waste diversion mandates and other programs, and to identify and implement options
for improving waste hauling services to residents.
• Ensure completion of a business plan for the San Gabriel River and Mountains
Conservancy, as required by law.
• Participate in and provide leadership for federally funded efforts to clean up San Gabriel
Valley drinking water.
San Gabriel Valley Council of Governments 12 2000 -2001 Budget
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.
• Promote and assist in membership and leadership development for the San Gabriel Valley
Economic Partnership.
• Implement update to Cluster Analysis of San Gabriel Valley industries. Complete the 10
year Employment Analysis for the San Gabriel Valley.
• Work with cities, SCAG, the BIA, the California Department of Housing and Community
Development, and state legislators to develop and implement significant changes to
existing law governing preparation and administration of housing programs.
• Complete third Livable Communities study, including a Valley -wide workshop to share
findings and distribute tools for implementing livable communities principles.
Goal #5 -- Maximize participation of our member cities in the SGVCOG, and facilitate the
cooperative work effort that has been the basis of our successes to date.
• Host annual dinner to recognize the contributions of San Gabriel Valley Mayors, Council
members and staff.
• Reach out to increase participation of Temple City, County unincorporated communities,
and special districts in San Gabriel Valley COG and its initiatives.
San Gabriel Valley Council of Governments 13 2000 -2001 Budget
Jul -05 -00 15:29
San Gabriel Valley Council of Governments
Primary Government
Financial Statements
With Independent Auditor's Report
Year Ended June 30, 1999
P.O1
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SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS
Independent Auditor's Report
Financial Statements
Balance Sheet
Statement of Income and
Fund Equity
Statement of Cash Flows
Notes to Financial Statements
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INDEPENDENT AUDITOR'S REPORT
Members of the Governing Board
San Gabriel Valley Council of Governments
We have audited the accompanying primary government balance sheet of the San
Gabriel Valley Council of Governments as of June 30, 1999, and the related
statements of income and cash flows for the year then ended. These financial
statements are the responsibility of the entity's administration. Our
responsibility is to express an opinion on these financial statements based on
our audit.
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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, 1999 and the results of its
operations and its cash flows 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, 1999, and the results of its
operations for the year then ended.
September 30, 1999
Pasadena, California
Edwards, Eichel 6 Beranek
Certified Public Accountants
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Sun aabriOl- Valley Council of Governments
Balance sheet
June 30, 1999
Assets
Cash and cash equivalents, Note 2
S 322,949
Accrued interest receivable
2,144
Accounts receivable
Metropolitan Transit Authority
(MTA)
146,155
Southern California Association
of Governments
(SCAG)
117,957
Air Quality Management District
(AQMD)
118,540
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Matching contributions due from
member cities
97,048
479,700
Advances to, Alameda Corridor East Construction
Authority (ACE) Note 5
174,504
Equipment, net of accumulated depreciation $1308 11,882
Total Assets 5 991.179
Liabilities
Accounts payable S 738.063
Fund Equity
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 64,273
Retained earnings 188,843
Total fund equity 253.116
Total Liabilities and Fund Equity 5 991,179
The accompanying notes are an integral part
of these financial statements
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Ban Gabriel Valley Council of Governments
Statement of Income and Fund Equity
Year ended June 30, 1999
Revenues
Dues
Transportation
Air quality
General fund
Grants and matches from. - ot; - ier.governments
Southern California Association of Governments
(SCAG) grants
Metropolitan Transit Authority (MTA) grants
and matches
Air Quality Management District (AQMD)
and matching funds, member cities
other revenues
Total revenues
Program expenses
Air quality
Administrative and technical
Transportation
Air Quality Management
District grant
Southern California Association
of Governments grants
Metropolitan Transit Authority
grant
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
143,000
39,000
212,800
261,628
211,884
632,146
19,458
The accompanying notes are an integral part
of these financial statements
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$179,274
177,536
61.250
418,060
203,577
728,889
256,989
9,350
1,616,895
1,519,916
56,798
1,576,714
40,151
10,718
50,869
202,247
5 253,116
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San Gabriel Valley Council of Governments
Statement of Cash Flows
Year ended June 30, 1999
Cash flows from operating activities
Net income from operations S 40,151
Adjustments to reconcile net income from operations
Depreciation 3,093
(Increase) in receivables (196,383)
(Increase) in accrued interest (1,150)
Increase in accounts payable 611,470
Advances to the Alameda Corridor East (ACE)
Construction Authority 1174,5041
Net cash provided by operating
activities 282,677
Cash flown from investing activities
Interest income 10,718
Cash flows from capital activities
Purchase of equipment (6,552)
Net increase in cash and cash equivalents 286,843
Cash and cash
equivalents
at the beginning
of the period
36,106
Cash and cash
equivalents
at end of the period
S 322,949
The accompanying notes are an integral part
of these financial statements
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San Gabriel Valley Council of Governments
Notes of Financial Statements
June 30, 1999
Note 1 Summary of Significant Policies
Organization and activities
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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
pruvide recommendations and solutions to problems of common and
general concern to member govei:nments. 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.
Cach and Cash Eouivalents
The COG considers money market funds and all equivalent liquid debt
instruments purchased with a maturity of 3 months or lees 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.
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San Gabriel Valley Council of Governments
Notes to Financial Statements
Note 1 Summary of Significant Policies (cont.)
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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 Tunes
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.
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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.
Use of Estimates
The presentation of financial statements in conformity with
generally accepted accounting principles 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 limitations)
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
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San Gabriel Valley Council of Governatnote
Notes to Financial Statements
Note 2 Cash and Investments (cant.)
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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.
Catecory 1 Insured and registered or collateralized securities
held by the COG or its agent in the COG's name.
Category 2 Uninsured and unregistered, with securities held by
the counterparty's trust department or agent in the COG's
name.
category 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, 1998 the net carrying amount of cash was $153,382 on
deposit with a bank, category 1. (Balance per the bank to conform to
Federal Deposit Insurance requirements, $194,746, exceeded the FDIC
coverage by $94,746).
Investments consisted of $169,567 deposited with the Local Agencies
Investment Fund, LAIF, an instrumentality of the State of
California, and is not categorized.
GASB 31 requiring market value reporting of short term investments
became effective for years ending June 30, 1998. The COG at June 30,
1999 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.
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San Gabriel Valley Council of GoternMOnts
Notes to Financial Statements
Note 3
Administrative Expenses
The following were the administrative expenses incurred for the
audit period, unallocated to grant revenues.
office supplies and expense
S 4,308
Graphics
2,251
Newsletter
4,425
Conferences
4,403
Legal
22,546
Audit
6,700
Insurance
2,499
Depreciation
3,093
Internet services
1,241
Education
3,750
Dues & subscriptions
622
other
960
Total 556"798
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Note 5
Year 2000
Tha year 2000 issue is the result of shortcomings in many electronic
data processing systems. and other electronic equipment that may
adversely affect a government's operations. The COG basically uses
"off -the shelf" software in its computer processing and uses the
latest updates available. Accordingly, assuming its vendors update
their software to be year 2000 compliant the COG will not encounter
year 2000 problems in its information processing. However, its
sources of funding are individual cities and regional agencies whose
funds are obtained from the state of California. These outside
agencies failure to be year 2000 compliant could impact the COG'•
ability to operate.
Because of the unprecedented nature of the Year 2000 issue its
effects and the success of related remediation efforts will not be
fully determinable until the year 2000 and thereafter. Management
cannot assure the COG Is or will be Year 2000 ready, that the COG's
remediation efforts will be successful in whole or in part, or that
parties with whom the COG does business will be year 2000 ready.
Alameda Corridor East Construction Authority (ACE)(COmponent unit)
Because of the sire 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 , consultants and contractors,
enter into contracts and agreements and to issue debt instruments as
needed.
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San Gabriel Valley Council of Governments
Notes to Financial Statements
Note 5 (cont.)
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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 requires 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.
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Councilman Bruesch asked if the monthly administrative fee comes out of ititerest earned
from the account
Don Wagner, Assistant City Manager, responded that it does not, that the administrative
fee is a flat fee rather than a percentage of the assets over the years.
Mr. Nunez questioned if the employees contribute anything to this plan?
Mr. Wagner responded that the City pays the contributions, but this is not a pot plan
such as PERS. The employee has.to work for the City a minimum of 10 to 20 years and retire
from the City.
Councilman Taylor pointed out that Rosemead has a history of not having a large
turnover in employees.
Mayor Clark clarified that the reason employees stay is not necessarily just for the
benefits, but that we have a quiet City and everyone seems to get along.
Councilman Brulesch stated that the PIERS retirement system has a 3% COLA increase
yearly, and that the Consumer Price Index goes up approximately by 4 %. Mr. Bruesch
calculated that every year our retired employees are losing 1% of their buying power and alter 10
years that would be 12% loss, and at 20 years it would be a 25% loss. Therefore, the 60% salary
at retirement would leave the employee with only 35% of their buying power. Mr. Bruesch
staled that he is concerned with retired employees being able to maintain their standard of living
and feels that with PARS, this will allow that.
Mayor Pro Tent Imperial called for the question
Vote resulted:
Yes: Bruesch, Clark, Vasquez, Imperial
No: Taylor
Absent: None
Abstain: None
The Mayor declared said motion duly carried and so ordered.
Coucilman Taylor slated that his comments were not against any employees, but feels
that this is an excessive amount
Mayor pro Tent Imperial staled that for 5 years employees only received a COLA
increase and that the employees were loyal enough to stay, and now they will be offered a benefit
that will mean more in the long run than salaries.
Mayor Clark pointed out also that during the recession of 1992 and 1993, raises were not
given.
The following item was taken out of order in deference to those is the audience.
TV. CONSENT CALENDAR
0 0 -A IMNEWAL, OF MEA'IBERSI:II.P IN THE SAN GABRI.EL VALLEY
COUNCIL OF GOVERNMENTS
MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCTLMAN BRUESCH
that the Council authorize the renewal of membership in the San Gabriel Valley Council of
Governments. Vote resulted:
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Yes: Bruesch, Taylor, Clark, Vasquez, Imperial
No: None
Absent: None
Abstain: None
1'he Mayor declared said motion duly carried and so ordered.
r 1). RESOLUTION NO. 2000 -41 — ESTABLISHING A MONTHLY AUTO
J EXPENSE ALLOWANCE FOR COUNCILMEMBERS
Councilman Taylor asked why the Council cannot turn in a mileage form and be
reimbursed from that.
MOTION 13Y COUNCILMAN BRULSCH, SECOND BY MAYOR PRO TLM
IMPERIAL that the Council adopt Resolution No. 2000 -41. Before vote could result, more
discussion ensued.
Robert Kress, City Attorney, explained that this is not a mandatory program, but is meant
to address the day -to -day personal automobile use in the course of City business, for attending
such meetings as the monthly regional organizations.
Mayor Clark explained that the Councilmembers that do a lot of driving, the monthly
reimbursement is an easier procedure than logging and turning in mileage sheets every time a
business trip is taken. Ms. Clark continued that she usually attends one or more meetings daily
and this would simplify that process for Councilmembers and staff. Ms. Clark added that if a
Councilmember does not want to accept the allowance, they do not have to.
Councilman Bruesch slated that he maintains a trip mileage log for income tax purposes
and last year those expenses added up to about $1,000. Mr. Bruesch agreed that the monthly
allowance is much more direct method and eliminates a lot of extra record keeping.
Juan Nunez, 2702 Del Mar, Rosemead, slated that the mileage voucher system provides
proof of mileage rather than a monthly allowance would. Mr. Nunez then asked what the
Council salary is.
Mayor Pro Tern Imperial stated that he does not request mileage reimbursement except
when he drives and parks his vehicle at the airport. Mr. Imperial agreed that if a
Councilmember does not want this allowance they can give it back or give it to charity.
Councilman Taylor stated that he has no objections to Councilmembers being
reimbursed; however, the mileage Corm is the most accurate way tracking this. Mr. Taylor stated
that many of the Councilmember spend many hours on City business and that it is outrageous to
think that any of the Councilmembers are in this job for the money.
Vote resulted at this time
Yes:
Bruesch, Clark, Vasquez, Imperial
No:
Taylor
Absent:
None
Abstain:
None
The Mayor declared said motion duly carried and so ordered.
Councilman 'Taylor stated for the record that reimbursement of mileage should be for
actual miles driven.
IV. CONSENT CALENDAR
CC -11 SHOPPING CAITI' RETRIEVAL PILOT PROGRAM
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Councilman Taylor asked what the City is paying in retrieval fees and that markets
already have a service that provides this.
Don Wagner, Assistant City Manager, responded that the carts picked up are "orphan'
carts, or carts with no identification on them.
Bill Crowe, Administrative Services Coordinator, explained that every cart will be picked
up and returned to the shopping center or store where they belong. Mr. Crowe continued that the
carts that do not have proper identification will be picked up and stored. The City will be
charged approximately $70 -$100 a month for about 60 -70 "orphan" carts picked up. Mr. Crowe
stated that those carts will be recycled and the City will receive credits toward the City's .
recycling program.
MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN VASQUEZ
that the Council direct the City Manager to lake the necessary steps to continue the shopping call
retrieval program pilot and authorize the expenditure of funds on a month -to -month basis for
services. Before vote could result, more conversation ensued.
Juan Nunez, 2702 Del Mar, Rosemead, asked if there is a State code section that pertains
to cart removal from the premises.
Councilman Bruesch stated that there is. Mr. Bruesch explained that prior to this
program, shopping carts with no identification (i.d.'s filed off, etc.) were not picked up as
ownership could not be proven, they remained on the streets. Mr. Bruesch continued that with
this program, the carts can be picked up and recycled, the City is charged a nominal fee and
receives recycling credits.
At tNs lime vole resulted
Yes:
Bruesch, Taylor, Clark, Vasquez, Imperial
No:
None
Absent:
None
Abstain:
None
The Mayor declared said motion duly carried and so ordered.
V. MATTERS FOR DISCUSSION AND ACTION - None
VI. STATUS REPORTS -None
VI.I. MATTERS FROM OFFICIALS
Mayor Clark thanked everyone who worked on the 4 i1i of July Parade.
VIII. O.RAI, COMNIUNICA7'IONS FItOM TII E AUDIENCE - None
IX. ADJOURNMENT
There being no further action to be taken at this time, the meeting was adjourned at 9:12 p.m.
in memory of Joe A. Gonsalves, the City's long -time lobbyist. The next regular meeting will be
held on Tuesday, July 25, 2000, at 8:00 p.m.
Respectfully submitted: APPROVED:
City Clerk
MAYOR
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