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CC - Item 5A - Staff Report Request from San Gabriel Valley Council of Governments for Membership Dues ,,......:4:-...,,, staf �' '' report TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: \leG. TAMEN, CITY MANAGER DATE: JULY 6, 1999 RE: REQUEST FROM THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS FOR 1999-00 MEMBERSHIP DUES Attached for your consideration is a request for 1999-00 membership dues from the San Gabriel Valley Council of Governments. Rosemead's dues are $15,858.00, which reflects no change from last year. It should be noted that there was an dues increase requested last fiscal year. The Council voted to not pay the dues increase. As a result,the City paid $11,617.00 to the Council of Governments for the 1998-99 dues. Attached are last year's Staff Reports and minutes from the Council Meetings where this item was discussed. Since it was previously requested, I have included the latest Financial Report from the Council of Governments. RECOMMENDATION staff If the City Council is in favor of the request it would be appropriate to direct to pay the li attached invoice. . COUNCIL >CE ;DA JUL• 131999 ITEM No. _k- - \ 2 • ni 'fit in San Gabriel Valley Council of Governments ' ' "' 3871 Eas:Colorado Boulevard.,Suite 101,Pasadena,CA 91107-3970 Phone(626)564-9702, Fax(626)564-1116 E-Mail:SGV@sgvcog.org OFFICERS President Algiird G.Leiga Vice President June 22, 1999 Harry Baldwin Treasurer/Auditor Frank Tripepi Lira Blakely City Manager City of Rosemead 8838 East Valley Blvd. MEMBERS Rosemead, CA 91770 Alhambra ArcadiaRE: 1999-2000 SGVCOG Membership & Dues Azusa Dear Mr. Tripepi: Baldwin Park B,a<aury At their June 17, 1999 meeting, San Gabriel Valley Council of Government's (SGVCOG) Claremont Governing Board approved the work program, budget and staffing proposed for FY 1999- 2000 which commences July 1, 1999. Covina Diamond Bar The budget provides for a continuance of the current fees and dues structure, which is as Duane follows: Et Monte • The Transit and Transportation program fee, which is $.12 per capita and may be paid Glendora with Proposition A and C funds. Industry • The Air Quality program fee, which is $.12 per capita and may be paid with AB 2766 Irwindale funds. La Puente • General Fund fees maybe paid with General Fund revenue. La Verne Please note this is a suggested formula. Member agencies are free to determine whatever Monrovia allocation is best suited to their individual circumstances provided the total payment is met. Montebello Attached,please find your City's invoice, which is due and payable July 1, 1999. Monterey rack Thank you for your continued support. SGVCOG has completed yet another very successful year, and looks forward to even greater accomplishments for our Cities as we e1Iter this next Pomona millennium. Should you have any questions,please contact me. Rosemead San camas Sincerely, San Gabriel / / -.7 // San Manno C/ . ��G Sierra Madre Nicholas T. Conway South El Monte Executive Director South Pasadena NTC:kb Walnut west Covina Enclosure: 1999-2000 Invoice Exrcunvt DmECrord SarxnAR• Nicholas T Conway Arroyo.Assodates,Inc. San Gabriel Valley Council of Governments Invoice 1,14,04:1DATE INVOICE NO. 06/24/99 98-99-60 BILL TO REMIT TO City of Rosemead San Gabriel Valley Council of Governments 8838 East Valley Boulevard 3871 East Colorado Blvd.,Ste. 101 Rosemead,CA 91770 Pasadena,California 91107 DUE DATE 07/01/99 DESCRIPTION AMOUNT 1999-2000 FY Dues/Fees Air Quality Program Fees(AB2766) 6,804.00 Transit k Transportation Program Fees(Prop.A&C) 6,804.00 General Fund Fees 2,250.00 The total of all fees noted above is due and payable July 1, 1999 Total $15,858.00 0 ' start eport TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER DATE: JUNE 3, 1998 RE: CONSIDERATION OF DUES INCREASE FOR THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS Council deferred this item at the May 12, 1998 Meeting so that staff could request copies of their budget for the previous three years. Attached are copies of the 1995, 1996 and 1997 financial reports and the staff report from the May12, 1998 Meeting. RECOMMENDATION If the City Council is in favor of the request it would be appropriate to direct staff to make the necessary notifications. • II I COUNCIL AGENDA Jaid 091998 ITEM No. . 4 . San Gabriel Valley Council of Governments Financial Statements With Independent Auditor's Report Year Ended June 30, 1997 I'll 3 : DEPENDENT E'DITOR' S REPORT Members of the Governing Board San Gabriel Valley Council of Governments we have audited the accompanying balance sheet of the San Gabriel Valley Council of Governments as of June 30, 1997 , 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. We conducted our audit ^ accordance with generally accepted auditing standards. Thosestandards require that we plan and rform the e audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit also includes assessing the accounting principles used and significant estimates :rade by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the San Gabriel Valley Council of Governments _s of June 30 , 1997 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. - � l 3• may( � September 10, 1097 Edwards, Eichel & Beranek Pasadena, California Certified Public Accountants • San Gabriel Valley Council of Governments Balance Sheet June 30, 1997 Assets Cash in bank $ 46, 824 Deposits with Local Agencies Investment Fund 137, 580 Accrued interest receivable 1, 990 Accounts receivable Alameda Corridor advocacy 30, 000 Southern California Association of Governments 41, 800 Prepaid expenses 15,417 Equipment, net of accumulated depreciation $139 2 , 647 Total Assets $276, 258 mmmm Liabilities and Fund Eauity Liabilities Accounts payable $ 38, 480 Deferred revenues 84 , 113 Total Liabilities 122 ,593 Fund Equity 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 Total contributed capital 64 , 273 Retained earnings 89 . 392 Total fund equity 153 , 665 Total Liabilities and Fund Equity 5276 , 258 The accompanying notes are an integral part of these financial statements. fl 41 San Gabriel Valley Council of Governments Statement of Income Year ended June 30, 1997 Revenues Dues Transportation $134 ,294 Air quality 91, 657 General fund 61, 850 287, 801 Southern California Association of Governments (SCAG) grant 196, 931 Metropolitan Transit Authority (MTA Grant 240, 077 Other 8 , 185 732, 994 Program expenses Administration and technical 37, 308 Transportation 78 , 286 Air Quality 54 , 267 Southern California Association of Governments Grant 208, 406 Metropolitan Transit Authority Grant 244 , 862 623 , 129 Administrative expenses(note 3) 78 , 836 Total expenses 701 . 965 Net income from operations 31, 029 . Interest income 9, 360 Net income for the period 40, 389 Fund equity at the beginning of the period. 113 . 276 Fund equity end of the period 5153 . 665 The accompanying notes are an integral part of these financial statements. 4t' San Gabriel Valley Council of Governments Statement of Cash Flows Year ended June 30, 1997 Cash flows from operating activities Net income from operations $ 31, 029 Adjustments to reconcile net income from operations Depreciation 139 (Increase) in receivables ( 3 , 050) (Increase) in accrued interest (1,404) Increase in accounts payable 7, 088 Increase in deferred revenues 48, 933 (Prepaid) expense (15, 417) Net cash generated by operating activities 67 , 318 Cash flows from investing activities Interest income 9 , 360 Purchase of equipment (2 .786) Cash flows from investing activities 6,574 Net increase in cash and cash equivalents - 73 , 892 Cash and cash equivalents at the beginning of the period: 110 . 512 Cash and cash equivalents at end of the period 5184 . 404 Reconciliation of cash and equivalents, at end of period: Cash in bank $ 46, 824 Deposits with Local Agencies Investment Fund 137 , 580 6184 404 The accompanying notes are an integral part of these financial statements. 17 San Gabriel Valley Council of Governments Notes of Financial Statements June 30, 1997 Note 1 Snsmary of Significant Accounting Policies 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. 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 less to be cash equivalents. Grant Funds The COG is recipient of state grant funds through two local agencies, 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 Accounting for Federal and State grants generally calls for recognition of income from grant funds only as those funds are obligated or paid out. U43 San Gabriel Valley Council of Governments Notes to Financial Statements Note 1 Summary of Significant Accounting Policies (continued) 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. 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 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. Category 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. Q4 ") San Gabriel Valley Council of Governments Notes to Financial Statements Note 2 Cash and Investments (cont. ) At June 30, 1997 the net carrying amount of cash was $46, 624 on deposit with a major bank and fully insured, category 1. (Balance per the bank to conform to Federal Deposit Insurance requirements, $54 , 299. ) _Investments consisted of $137,580 deposited with the Local Agencies Investment Fund, LAIF, an instrumentality of the State of California, and is not categorized. Note 3 Administrative Expenses The following were the administrative expenses incurred for the audit period, unallocated to grant .revenues. Transportation consulting $43 ,334 Electric vehicle research, Air Quality Management District 5, 000 Receptions 10, 514 Outside meetings 5, 280 Legal 6, 932 Audit 5, 625 Monthly meeting expense 986 Depreciation 139 Technology Information proposal 258 Other 769 Total 578 . 837 50 • BOARD OF SUPERVISORS COUNTY OF LOS ANGELES 856 KENNETH HAYS HALL 04 ADMINISTRATION 405 ANGELES CALIfERNIA 90012!12131 574.4111 GLORIA MOLINA SUPERVISOR, FIRST DISTRICT November 7, 1997 Mr. Nicholas Conway Executive Director San Gabriel Valley Council of Governments 234 North El Molina Avenue, Suite 202 Pasadena, California 91101-1675 Dear Mr. Conway: Thank you for contacting my office regarding the Youth Employment Policy that the Board of Supervisors adopted in August 1997. I have asked Rodney Cooper to look into the issue of the 1992 project. I expect to review the total amount of money that was expended by cities in 1992 with no youth employment component, and once I have completed my review, my staff will contact you to discuss this matter further. In the meantime, I would appreciate your asking any First District cities that are members of the San Gabriel Valley Council of Governments and concerned about being impacted in future budget years, as a result of the new youth employment policy, to please contact my Parks Deputy, Carrie Sutkin. As of today, we have not heard anything from any of our cities. Sincerely, • IAMOLINA ft Supervisor, First District GM/CS t I 5 L San Gabriel Valley Council of Governments Financial Statements With Independent Auditor's Report Year Ended June 30, 1996 EUN'ARUS, EICHEL & BERANEK CI Kill vy PL'I l ACCUVNI ams 1 INDEPENDENT AUDITOR' S REPORT Members of the Governing Board San Gabriel Valley Council of Governments We have audited the accompanying balance sheet of the San Gabriel Valley Council of Governments as of June 30, 1996, 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 7`�� these financial statements based on our audit. y 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 1 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. In our opinion, the 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 3D, 1996 and the 1 results of its operations and its cash flows for the year then ended in conformitywith generally accepted accounting principles. % etamak- November 25, 1996 Edwards, Eichel & Beranek Pasadena, California Certified Public Accountants 1 TLU L 466:N. Rom.a,a:Bu:IA- axn �- - S:III ;MO 91104-3U59 HIS/35I-3KI0 -1 Pa-. HIF/751.3N0-1 E-M+n 7606123Q comnuserve coin San Gabriel Valley Council of Governments Balance Sheet June 30, 1996 Assets • Cash in bank $85, 090 Deposits with Local Agencies Investment Fund 25, 422 Accrued interest receivable 586 Due from Southern California Association of Governments 68 , 750 Total Assets 5179 . 846 Liabilities and Fund Equity Liabilities Accounts payable $ 31, 392 Unexpended grant revenues 35 . 180 Total Liabilities 66 , 572 Fund Equity 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 Total contributed capital 64, 273 Retained earnings 49 , 003 Total fund equity 113 , 276 Total Liabilities and Fund Equity 5179, 848 • The accompanying notes are an integral part of these financial statements. San Gabriel Valley Council of Governments Statement of Income Year ended June 30, 1996 Revenues Dues Transportation $113, 080 Air quality 89,147 General fund 55, 50D 257, 727 Southern California Council of Governments (SCAG) grant 08 71 Total revenues 36 441 Program expenses Administration and technical 47 , 956 Transportation 105, 941 Air Quality 42 , 589 Southern California Association of Governments Grant 63 . 492 259 , 978 Administrative expenses (note 3) 46 . 392 Total expenses 3066 , 370 Net income from operations 60, 071 Interest income 3 , 741 Net income for the period 63 , 812 Fund equity at the beginning of the period. 49 , 464 Fund equity end of the period 5113 . 276 The accompanying notes are an integral part of these financial statements. 1 San Gabriel Valley Council of Governments Statement of Cash Flows Year ended June 30, 1996 J J Cash flows from operating activities JNet income from operations $ 60, 071 Adjustments to reconcile net income from operations J-I to cash flows from operating activities 23 , 750 (Increase) in receivable due from SCAG (23 , 750) Accrued interest,LAIF (585) J Accounts payable, current year 31, 391 Grant revenues unexpended 35 , 180 J Net cash generated by operating activities 102 , 307 Cash flows from investing activities 3 , 741 J Interest received Net increase in cash and cash equivalents 106, 048 JCash at the beginning of the period. 4 , 464 _ Cash and cash equivalents at end of the period 5110 , 512 JReconciliation of cash and equivalents, at end of period. J Cash in bank $ 85, 090 Deposits with Local Agencies Investment Fund 25, 422 5125 , 422 J J J J • The accompanying notes are an integral part Jof these financial statements. San Gabriel Valley Council of Governments Notes of Financial Statements J June 30, 1996 IJNote 1 Summary of Significant Accounting Policies The San Gabriel Valley Council of Governments (the COG) was created effective March-'..17,,, 19944by a joint powers agreement among the various member San Gabriel Valley Cities to promote cooperation, exchange of ideas, coordinate regional government programs and to provide recommendations and solutions to problems of common and general concern of 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. It is also considered to be a "Special District" by the Office of the State Controller, -1 Division of Local Government Fiscal Affairs for the purpose of filing an annual report with the State Controller's Office. Basis of Accounting The accounting records of the COG are maintained on the accrual basis of accounting. Cash and Cash Ecuivalents 7 The COG considers money market funds and all equivalent liquid debt instruments purchased with a maturity of 3 months or less to be cash equivalents. Grant Funds The COG entered into a contract with the Southern California 7 Council of Governments (SCAG) to coordinate sub-regional input to the SCAG Regional Comprehensive Plan. The contract calls for 20 per cent financial participation by the COG and 80 percent by SCAG. Accounting for federal and state grants generally calls for recognition of income from grant funds only as those funds are paid or obligated. 7 J - San Gabriel Valley Council of Governments J Notes to Financial Statements JNote 1 Summary of Significant Accounting Policies (continued) JJ proprietary Fund Types Proprietary funds are accounted for using the economic measurement J 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. JNote 2 Cash and Investments J Under provisions of the California Government Code (Code) , the COG is authorized to invest in: . A variety of federal and state treasury obligations J (including local California agencies) . Obligations or other instruments of or issued by a Jfederal agency or government sponsored enterprise . Bankers' acceptances which are eligible for purchase by _ the federal reserve system (subject to certain Jlimitations) . Prime quality commercial paper (subject to certain Jlimitations) . Negotiable certificates of deposit issued by nationally or state chartered banks, savings and loan associates and credit unions 1 Repurchase agreements or reverse repurchase agreements of any securities authorized by the Code Cash and investments at year-end are categorized as 1 follows to give an indication of the level of credit risk assumed. 1 Cateoory 1 Insured and registered or collateralized securities held by the COG or its agent in the COG's name. J Cateoory 2 Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the COG's name. JCateoory 3 Uninsured and unregistered with securities held by the counterparty or by its trust department or J agent but not in the COG' s name. —I San Gabriel Valley Council of Governments Notes to Financial Statements JNote 2 Cash and Investments (cont. ) —t At June 30, 1996 the net carrying amount of cash was 565 , 901 on J deposit with a major bank and fully insured, category 1 . J Investments consisted of $25, 422 deposited with the Local Agencies Investment Fund, LAIF, an instrumentality of the State of California is not categorized. Note 3 Administrative Expenses - The following were the administrative expenses incurred for the audit period, including these allocated to Association of Government grants. 1 Allocated Legal services $ 9, 149 I San Gabriel Valley Consortium 16, 000 Audit 5, 000 Recruitment 13 070 _ Total allocated 45, 219 - Unallocated J Receptions 630 Fees 210 Meetings 303 JMiscellaneous 30 Total 546 , 392 Ti TI J San Gabriel Valley Council of Governments Financial Statements With Independent Auditor's Report one Year Three Months and Eighteen Days Ended June 30, 1995 INDEPENDENT AUDITOR'S REPORT Members of the Governing Board San Gabriel Valley Council of Governments We have audited the accompanying balance sheet of the San Gabriel Valley Council of Governments as of June 30, 1995, and the related statements of operations and cash flows for the year three months and eighteen days 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. 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. In our opinion, the 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, 1995 and the results of its operations and its cash flows for the period then ended in conformity with generally accepted accounting principles. September 22, 1995 Edwards, Eichel & Beranek Pasadena, California Certified Public Accountants San Gabriel Valley Council of Governments Balance Sheet June 30, 1995 Assets Cash (note 2) $ 4,464 Due from Southern California Association of Governments (Technical Assistance Grant) 45 , 000 Total Assets 549 ,464 Liabilities and Fund Equity Fund Equity Contributed Capital Restricted for use in transportation studies (San Gabriel Valley Transportation Coalition) $19 ,389 Unrestricted (San Gabriel Valley Association of Cities) 44 , 884 64 , 273 Retained earnings (deficit) (14 , 809) Total Fund Equity S49 ,464 The accompanying notes are an integral part \ of these financial statements. San Gabriel Valley Council of Governments Statement of Operations March 17, 1994 through June 30, 1995 Revenues Dues Transportation Air quality $108,506 General fund 21, 698 Southern California Council 53 400 (SCAG) grant of Governments 183 . 604 Miscellaneous Total revenues 45, 000 50 Program expenses 228 654 Transportation Air Quality 99, 831 Southern California Associa 21,525 of Governments Grant tlon Other 45, 000 21 . 850 188, 206 Administrative exnenses (note 3) 031 Total expenses of Net loss fro 248 237 m operations Interest income (17,583) Net loss for �� 7�4 the period Capital contribution (14, 809) Association ofCities the San Gabriel Valley Capital contributedh rest by the San Gabriel Valley 44 , 884 Coalition restricted to be used for transportation studies 19` Fund equi`y end 64 273 � of the period S 49 , 464 The accompanying notes are an integral part of these financial statements. San Gabriel Valley Council of Governments Statement of Cash Flows March 17, 1994 through June 30, 1995 Cash flows from operating activities Net loss from operations $ (17,583) Adjustment to reconcile deficiency of revenue over expenses to net cash used by operations Receivable due from SCAG (45, 000) Net cash used by operations (62 ,583) Cash flows from investing activities Interest received 2 , 774 Cash flows from capital financing activities Capital contributions received 64 , 273 Cash at end of the period S =4464 The accompanying notes are an integral part of these financial statements. San .Gabriel Valley Council of Governments Notes of Financial Statements June 30, 1995 Note 1 Summary of Significant Accounting Policies 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 of ideas, coordinate regional government programs and to provide recommendations and solutions to problems of common and general concern of 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. It is also considered to be a "Special District" by the Office of the State Controller, Division of Local Government Fiscal Affairs for the purpose of filing an annual report with the State Controller's office. 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 less to be cash equivalents. During the audit period there were no funds deposited in other than checking or savings accounts. _ Grant Funds The COG entered into a contract with the Southern California Council of Governments (SCAG) to coordinate sub-regional input to the SCAG Regional Comprehensive Plan. The contract calls for 20 per cent financial participation by the COG and 80 percent by SCAG. At June 30, 1995 the COG had completed its share of the Phase 11 sub regional planning program and awaited reimbursement by SCAG. Accounting for federal and state grants generally calls for �. recognition of income from grant funds only as those funds are paid or obligated. San Gabriel Valley Council of Governments Notes to Financial Statements Note 1 Summary of Significant Accounting Policies (continued) Proprietary Fund Types Proprietary funds are accounted for using the economic measurement focus; the accounting objectives are 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. 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. ▪ Repurchase agreements or reverse repurchase agreements of any securities authorized by the Code Cash and cash equivalents, unrestricted At June 30, 1995 the net carrying amount of cash was $4 , 464 on deposit with a major bank and fully insured. L • San Gabriel Valley Council of Governments Notes to Financial Statements Note 3 Administrative Expenses The following were the administrative expenses incurred for the audit period: Management services $33 , 250 San Gabriel Valley Consortium 9, 000 Legal services 10,205 Meetings 5, 284 Accounting and miscellaneous 292 Total 558 . 031 L F JM 9 staff_ TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER DALE: MAY 7, 1996 RE: CONSIDERATION OF DUES LNCREASE FOR THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS Attached for your consideration is a memorandum recording a proposed dues increase for the San Gabriel Valley Council of Governments. The current dues of S 11,617 include 55,510 in Proposition A Funds, S 3,657 in AB 2766 Funds and S 2250 in General Funds. The proposed increase would raise the Proposition A d- C and AB 2766 contributions to 56,612 a piece. The General Fund contribution would remain at 52,250. RECOMMENDATION It is recommended that the City Manager be directed to inform the San Gabriel Council of Governments of the Council's decision to support or oppose the request. rto-r1.96 COUNCIL AGENDA MAY 121998 ITEM No. .• Gc • San Gabriel Valley Council of Governments Proposed Dues Increase _ 1o97Dues P.ropositton Ai C 0732766 General proposed" City ""4 _Pop tat oo Employment liten'ed:.. ~ „M 2„ ...yrta. „S7JC�y to a�Fund 199,93 __es Alhambra 90,395 5 77,913.00 5 ^ 10,740.00 5 10,740.07 '. 5 2700.00 5•� 24,]60.00 Aradia 53,126 11,19103 6,31200 : 6,317.00 2250.00 14,874.00 Azusa 43,097 >'9,69050 5,358.00 535803 ? 2,7009012,516.00 Baldwin Park 75,144 75,19800 5,928.00 8,928.07 } 2,55D.00 - 20,406.00 Bradbun• 909 7,653.03. 708.00 706.00 'i 1,500.00 - 1,776.00 Claremont 34,744 7,798.00 4,128.00 ' 4,125.00 . 1,950.00 :10,206.03 Covina 46.915 9,99650 _......_5374.00 5,57500 2107 00.�..�- 13246.03 Dimond Bar 57,267 11,859.03 6,604.00 6.604.00 250.00 15,556.00 Duarte 22.5? 5,56530' 2,656.03 . 2,656.03 7,800.00 7,116.00 El Monte 116,37 20,097.03. 15,81103 13,67200 3,030.03 '.30,624.03 Gleed oz 52.419 11,073.00 6,22607 6,7603 225000 14,706.03 Industry 697 1,617.33 82.80 6250 1,503.03 1,665.60 Irwindale 1,172 1,69720 139.20 139.20 1303.00 - 1,77540 La Puente 41206 9,036.03 4,69600 4,696 03 2,103 00 11,892.00 La Verne 53,729 7,543-0.7 3,94603 3,948.00 1,950.03 9,846.00 Monrmia 39,794 - 8,648.07 4,726.00 4,7'6 Oa 1950.00 11,40600 Montcrelio 63,428 12,926.03 7,536.03 7,536.07 2250.00 17,32103 Monterey Park 65,246 13,38200 7,752.00 7,752.00 2403.03 17,904.00 Pasadena 140,189 20,037.03 16,668.03 16,668.00 3,00003 3633600' Pomona 142,614 20,007.97 76,968.00 . 16,968.03 3,030.00 36,936.00' Rosam_d 55,651 11,617.07 6,612.97 6,61203 2,250.00 15,474.00. 7``�7.. San Dienzs 36,106 6,02750 4,290.00 4,293.03 1950.00 10,330.03 San Gabriel 40,451 6,90650 4, '606.00 4,80003 2,103.07 11,712.00 San Marino 13,656 3,95350 1,626.03 : 1,626.00 1,650.00 4,90200 Sierra Madre 11.4135,577.07 1356.00 1,356.03 1,650.03 4,362.03 So 0 Et Monte "1170 535130 7 634 03 2.634 03 1,6 0.09. 6,916.00 Soude Pasadena 2;,40,2 6,07550 3,018.00 3,018.93 1,800.03 7,836.00 11'a1::_: 37,373 - 7,390.03 3,540.03 3340.00 1950.00 9,630.00 Wes:Covina 104.404 . 20100.03 72.408.03 12.435.00 3.0)0.00 ' 27,616.03 1.464.747 = 5 291.74450 5 173,95603 5 173,956.03 S 61103.00 5 410,07600 1997 Prop.Ade C rates:8.70 ••1997 A62766 rates:5.07 A� � a 111 111 as r 1 111 1 1 f 1 111 menn To: Don Wagner, - City of Rosemead From: Nicholas T. Conway Nicholas T. Conway, Arroyo Associates, Inc. Fax Number: 626 564-1116 Date: Tue, Jul 6, 1999 • 12:05 PM Pages, including cover: 10 626-564-9702626 564-8700 Note: Please see following per our phone conversation Arroyo Associates, Inc. 626564-8700 ::6299 1141 AM 1 San Gabriel Valley Council of Governments ,. ' Financial Statements With Independent Auditor's Report Year Ended June 30, 1998 1 t ` ti 1 1 i 3 Arroyo Associates, Inc. 626 564-8700 7;6/99 11.41 Aid 2/9 Eu0vnuu9. ER HI* Ci BIM!A' FK liilnl.J/ un A„,II' A. v EI V INDEPENDENT AUDITOR'S REPORT N Members of the Governing Board San Gabriel Valley Council of Governments We have audited the accompanying balance sheet of the San Gabriel Valley Council of Governments as of June 30, 1998, 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. 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 basic for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the San Gabriel Valley Council of Governments as of aune 30, 1998 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. F1' f;el,L� ` Qira� October 19, 1998 Edwards, Eichel S Beranek Pasadena, California Certified Public Accountants 1 III I 1 I� o I 1 AI 7(.1ei. .nm Arrcvo ASsocetes, Inc. 62G 564-8700 7/C/99 11.41 AM 3 9 1 SII San Gabriel Valley Council of Governments Balance Sheet June 30, 1998 1 Assets Cash and cash equivalents, note 2 $ 36,106 Accrued interestreceivable 994 1 Accounts receivable Southern California Association of Governments (SCAG) 117, 198 Metropolitan Transit Authority (MTA) 144,278 Other 21,841 283,317 1 Equipment, net of accumulated depreciation $1308 8 .473 Total Assets $328,840 1 Liabilities and Fund Equity Liabilities 1 Accounts payable $126,593 Fund Equity Capital contribution by the San Gabriel 1 Valley Coalition, to be used for transportation studies. 19, 389 Capital contribution by the San Gabriel Valley 1 Association of Cities. 44,884 Total contributed capital 64,273 1 Retained earnings 137,974 Total fund equity 202,247 Total Liabilities and Fund Equity 5328,840 1 1 1 The accompanying notes are an integral part of these financial statamantc. 1 Arroyo A$<oclates. Inc, 626 564-8700 7,6r95 11 I4- 4`J 4 9 I I 1 San Gabriel Valley Council of Governments Statement of Income and Fund Equity 1 Year ended June 30, 1998 I Revenues Dues Transportation $138,243 Air quality 91,851 I General fund 61, 650 Advocacy 68 ,663 360,407 I Southern California Association of Governments (SLAG) grant 399,500 Metropolitan Transit Authority (MTA) grant 330,912 I Other 57,055 1, 147,874 Program expenses 1 Administrative and technical 44,092 Transportation 142,191 Air Quality 62,633 1 Southern California Association of Governments grant 421,728 Metropolitan Transit Authority grant 373,638 ' other 17, 586 1,061,868 Administrative expenaes(note 3) 48,657 ITotal expenses 1, 110,525 INet income from operations 37,349 Interest income 11,233 1 Net income for the period 48 ,582 Fund equity at the beginning of the period. 153,665 IFund equity end of the period $202,247 1 IThe accompanying notes are an integral part of these financial statements. 1 1 Arroyo Associates, Inc. 626 564-8700 7/6/99 11'.41 AM S9 1 San Gabriel Valley Council of Governments Statement of Cash Flows Year ended June 30, 1998 1 Cash flows from operating activities Net income from operations $ 37,349 Adjustments to reconcile net income from operations Depreciation 1, 169 (Increase) in receivables (211,517) ' Decrease in accrued interest 996 Increase in accounts payable 88,113 Recognition of deferred revenues as income (84,113) ' Write off of prepaid expense 15,417 Net cash (used by) operating activities (152,586) 1 Cash flows from investing activities Interest income 11,233 Cash flows from capital activities Purchase of equipment (6,945) ' Net decrease in cash and cash equivalents (148,298) Cash and cash equivalents at the beginning of the period: 184,404 Cash and cash equivalents at end of the period S J6. 106 1 1 The accompanying notes are an integral part of these financial statements. Arroyo Associates, Inc 626 564-8700 7/6/99 11:41 AM 6i9 1 San Gabriel Valley Council of Governments Notes of Financial Statements June 30, 1998 ' Note 1 Summary of Significant Accounting Policies 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 t 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. basis o£ 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 less to be cash equivalents. Grant Funds an . A gun s E ceivabta The COG is the recipient of state grant funds through two regional agencies, 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 SLAG grant requires only support for expenditures reimbursed. Accounting for Federal and State grants generally calls for recognition of inoome from grant funds only as those funds are obligated or paid out. Except for an insurance claim of 56,552, collected eubeequent to year end, all receivables relate to expenditure reimbursements from 1 Arroyo associates, lac. 626 564-6700 -/6/99 11 Al .AM 7 San Gabriel Valley council of Governments Notre to rinenciel statements Note 1 Summary fo significant Accounting Policies (cont. ) governmental agencies and are expected to be fully collectible. Accordingly, an allowance for doubtful a000unts 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 Equipment 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) 1 I t Arroyo n=_soc:atcs, Inc. 62656466700 7/6/99 1141 AM I ' San Gabriel Valley Council of Governments Notes to Financial Statements ' Note 2 Cash and Investments (cont.) Negotiable certificates of deposit issued by nationally I or state chartered banks, savings and loan associates and credit unions ' 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. Category 1 Insured and registered or collateralized I securities held by the COG or its agent in the COG'S name. ' Category a Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the COG'S name. I 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 $12,563 on deposit with a bank and fully insured, category 1. (Balance per the Ibank to conform to Federal Deposit Insurance requirements, also $12,563.) Investments consisted of $ 23,543 deposited with the Local Agencies I Investment Fund, LAIF, an instrumentality of the State of California, and is not categorized. ' GASH 31 requiring market value reporting of short term investments became effective for years ending June 30, 1998. The COG at June 30, 1998 and also at June 30, 1997 was invested only in the Local Agencies Investment Fund (L.A.I.I. ) , a fund administered by the I treasurer of the State of California. Market values at both dates so closely approximated cost that the differences were minor. Accordingly, management has elected to continue to carry ' investments at cost. I Arroyo Associates_, Inc 626 564-8700 -/6/99 1 +'4: AM 5.9 San Gabriel Valley Council of Governments 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 $ 6, 303 Graphics 1,738 Name plates 952 Monthly meetings 6,968 Conferences 1,279 Legal 16,687 Audit 5,375 Insurance 3,035 Depreciation 1,169 Internet services 1, 562 Education 1,250 Dues L subscriptions 1,400 other 939 Total 548. 657 Note 4 Year 2000 The COG basically uses "off-the shelf" software in its computer processing. Accordingly, assuming it will continue to update its software it will not encounter year 2000 problems in its ISI , information processing. However, its sources of funding are individual cities and regional agencies whose funds are obtained from the state of California. The ability of this and other agencies to continue to operate in year 2000 will depend upon those outside organizations and their abilities to anticipate and adjust to year 2000 challenges. Note 5 Alameda Corridor East Joint Powers Authority 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 empwered to conduct business, hire the necessary consultants and contractors, enter into contracts and agreements and to issue debt instruments as needed. San Gabriel Valley Council of Governments Proposed Dues Increase 1997Dues P.coposifwn A&C A32766 ' General Proposed City Population Employment Received 5.77JCapita •.'..!..72/(72747.7...2- ,,,b12/Captta,,, ,..Fund' 199&99 Dues Alhambra . 90,395 5 17,915.0 5 10,740.00 : 5 10,740.W 5 2,730.00 5 24,180.0 Arcadia - 53,12611,1920 6,3120 6,312.0 2,250.0 14,874.00 Azusa 45,097 .... 9,69030. ... 5,358.0 .... . ..5,3560 2,100.00 12,816.00 Baldwin Park . 75,744 13,198.0 8,926.0 : 8,928.0 2,550.0 20,406.00 Bradbury 909 1,653.00 108.30 108.00 1,50.0 1,716.00 Claremont 34,744 7,798.0 4,128.0 4,128.03 1,930.0 10,206.00 Covina 46,915 9,99630 5,574.00 5,574.00 2,100.00 15248.00 Diamond Bar 57,267 11,889.00 6,804.0 6,804.00 2250.0 15,558.00 Duarte 22372 : 5,56530 2,656.00 2,658.00 1,80.0 : 7,116.00 . El Monte 116.251 . 20,00.0 13,81200 13,812.00 3,000.00 30,624.00 Glendora 52419 11,073.0 6,2260 6,22800 2,250.30 14,706.00 Industry 697 1,61730 82.80 62.80 1,500.00 1,665.60 ' Irwindale 1,172 1,697.20 139.20 139.20 1,500.00 1,77840 La Puente 41,208 9,036.0 4,696.0 4,896.00 2,100.00 11,892.00 La Verne 33,229 7,543.0 3,948.0 3,948.00 1,950.00 9,846 00 Monrovia 39,794 6,648.0 . 4,728.0 4,728.00 1,950.00 11,906.00 Montebello 65428 12,926.00 7,536.03 7,536.0 2250.00 17,322.00 Monterey Park 65,246 13,3820 7,752.0 7,752.00 2,400.00 17,904.00 Pasadena 140,289 20,00.0 16,6680 16,6650 3,00.0 36,336.00 Pomona 142,614 20,030.0 16,966.00 : 16,966.00 3,000.0 :36,936.0' Rosemead 55,651 11,617.00 6,612.00 6,612.00 2.250.0 15,474.00 San Dimas 36,108 802730 4,290.00 4,290.00 1,950.0 10,530.00 San Gabriel 40,451 8,90830 4,806.0 4,806.0 2,10.0 11,712.00 San Marano 13,686 3,95330 1,626.00 1,626.00 1,650.00 . 9,902.00 Sierra Madre 11,413 3,571.00 1,356 00 1,35600 - 1,650.00 4,362.00 South El Monte .. .. .... ..22,170 . .5,38150 2,634.00 2,634.00 1,650.00 6,918.0 . South Pasadena 25,402 6,07550 3,0180 3,01600 1,80.00 7,836.0 Walnut 32,320 7,390.00 3,840.03 3,840.03 1,950.00 9,630.00 West Covina 104.434 20.030.0 12,408.00 12,4080 3,000.00 27,616.00 1.464.147 S 291,74450 S 173,958.00 5 173 958.00 5 62,10.0 . 5 410,016.00 • 1997 Prop.A&C rates 5.10 "1997 A62766 rates:5.07 j;.• -1 a o,l staf epor TO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM. FRANK G. TRIPEPI, CITY MAjvrAGER DATE: MAY 7, 1998 RE: CONSIDERATION OF D UES VALLEY COUNCIL OF GO VER INCREASE FOR THE SAN G.ABRIEL Ntt`gNTS Attached for your consideration is a memorandum regarding a proposed dues increase for the San Gabriel Valley Council of Governments. The current dues of$ 11,617 include $5,510 in Proposition A Funds, $3,857 in AB 2766 Funds and $2250 in General Funds. The increase would raise the Proposition A & C and AB 2766 contributions to $6,612 a piece. The General Fund contribution would re proposed main at $2,250. RECONNENDATION It is recommended that the City Manager be directed to inform the San Governments of the Council's decision to support or oppose the request. ccgtoLrn>9E COUNCIL AGENDA MAY 121998 4_— ITEM No. ) V . �C • II / R wu� 9�1 stat leport TO: HONORABLE MAYOR AND MEMBERS I ...���ROSEMEAD CITY COUNCIL FROM: FRANK G. TRIPEPI, CITY MANAGER DATE: MAY 20, 1998 RE: STATUS REPORT- DUES REQUEST FROM SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS The City Council deferred action on this item at the last regular meeting and Councilmember Taylor requested additional information from the San Gabriel Valley Council of Governments (COG). Yesterday, staff received a copy of the COG's proposed budget for the corning fiscal year. However, the COG has not yet forwarded the organization's budgets for the past three (3)years. Earlier today. COG Executive Director,Nick Conway, said that he would have copies of the requested budgets by early next week. The COG's request for an increase in membership dues will be back on the next City Council agenda. cm:mo cgdur:rg COUNCIL AGENDA 9 ° l3.j MAI is I I . K.