CC - Item 4C - Renewal Of Membership In The San Gabriel Valley Council Of Governments~4-j~
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAY COUNCIL
FROM: BILL CRO , CITY MANAGER
DATE: JULY 9, 2002
RE: RENEWAL OF MEMBERSHIP,fN THE SAN GABRIEL VALLEY
COUNCIL OF GOVERNMENTS
Attached for your consideration is a letter from the San Gabriel Valley Council of Governments
requesting that the City of Rosemead renew its membership. Also attached are copies of the
2002-03 Work Program and their most recent annual report.
RECOMMENDATION
It is recommended that the Rosemead City Council authorize the renewal of its membership in
the San Gabriel Valley Council of Governments.
JUL 0 9 2002
rrEM No. Z; • CC
Isis i.." San Gabriel Valley Council of Governments
3871 East Colorado Blvd.. Suite 101, Pasadena, California 91107-3970 Phone: (626) 564-9702 FAX: (626) 564-1116 E-Mail SGV®sgvcog.org
Or1;1(::RS
June 21, 2002
Pre.sidenr
Lara L. Iilakel_v
Bill Crow
Vice Ppx,iideut
D. Barton Dovle
City Manager
City of Rosemead
7}eomwerMndno,
Roberts. cult
8838 E. Valley Blvd.
Rosemead, CA 91770
N111 ml:RS
RE: 2002-2003 SGVCOG Membership and Dues
Alhambra
Arcadia
Dear Mr. Crow:
Azusa
Baldwin Park
Attached, please find your City's invoice for 2002-2003 San Gabriel Valley Council of
Bradbury
Governments' membership dues. The attached work program outlines the Governing
Claremont
Board's proposed goals and objectives for the upcoming fiscal year and the attendant
ca;,lna
allocation of the organization's resources. The budget provides for a continuance of the
current fees and dues structure
which is as follows:
Dla» rand Bar
,
Duarte
El Motile ✓ Transit and Transportation program fee, which is $.12 per capita and may be paid
Glendora with Proposition A and C funds.
✓ Air Quality program fee, which is $.12 per capita and may be paid with AB 2766
Lulu.vtry
funds.
Irwindale ✓ General Fund fees may be paid with General Fund revenue.
/n C'ahada Flintridge
ca Puerile Please note this is a suggested formula. Member agencies are free to determine whatever
ra Verne allocation is best suited to their individual circumstances provided the total payment is met.
Wouroeia
dlnalebella Thank you for your continued support. SGVCOG has completed yet another very
./.nervy Park successful year, and looks forward to even greater accomplishments for our Valley during
Pa erde,ta the next year. Should you have any questions, please contact me.
Puurnua
R,ne ,ead Sincerely,
San ab Li
San Gabriel U
1;nn:4/nri°o Nicholas T. Conway
Siena Madre Executive Director
South Ei Monte
South Pasadena Enclosure: 2002-2003 Invoice
Walnut 2002-2003 Work Plan
We.r1 Carina
E$f cm 1, ll D'Hwo OW
SHCRP: I Alt
Niuh"Im I'. COIV f1F
Artn11~ .4>vorintes hs_
a'. San Gabriel Valley Council of Governments
3671 East Colorado Btvd., Suite 101, Pasadena, Cardorda 911073970 Phone: (626) 564.9702 FAX: (626) 564-1116 E-Mail SGVCsgvcog.org
BILL TO
City of Rosemead
8838 East Valley Boulevard
Rosemead, CA 91770
PAY TO:
DATE 6/17/2002
INVOICE NO. 1-02-168
DUE DATE 7/1/2002
San Gabriel Valley Council of Governments
3871 East Colorado Blvd., Suite 101
Pasadena, CA 91107-3970
Invoice
I DESCRIPTION AMOUNT I
2002-2003 FY Dues/Fees
Air Quality Program Fees (AB2766)
Transit & Transportation Program Fees (Prop. A&C)
General Fund Fees
Total
6,636.00
6,636.00
2,250.00
$15,522.00
SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS
;
3671 East Colorado Blvd., Suite 101, Pasadena, Califomia 91107-3970 Phone: (626) 564-9702 FAX: (626) 564-1116 E-Mail SGV@sgvcog.org
DATE: June 20, 2002
TO: Governing Board Members
FROM: Nicholas T. Conway
Executive Director
RE: SGVCOG 2002-2003 Work Program
Transmitted herewith is the San Gabriel Valley Council of Governments' (SGVCOG) proposed
work program for the Fiscal Year 2002-2003. This document outlines the accomplishments of
this last year, the proposed objectives for the coming year and the allocation of resources to
achieve those desired outcomes. It is important to note, the proposed work program does not
anticipate an increase in the current dues.
Mission
SGVCOG Mission Statement: "To ensure the San Gabriel Valley's fair share' of scarce
Federal, State and Local resources by fostering consensus among cities in the San Gabriel
Valley regarding policies and programs that address issues relating to land use, air
quality, transportation, solid waste and other matters deemed essential to our cities. "
2001-2002 Achievements
During this last year, a number of major objectives were achieved in support of SGVCOG's
adopted goals.
Goal #1- Increase Political Influence and Recognition
✓ Worked with the Valley's legislative representatives in Sacramento to form the San
Gabriel Valley Legislative Caucus. Subsequent meetings were held with the twelve SGV
Legislative Caucus members (7 Assembly, 5 Senate) to discuss pending legislation and
issues of mutual concern to our member cities.
✓ Established ongoing contact with various media sources, most notably newspaper, 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.
✓ Hosted a dinner in Washington DC for our member cities, congressional representatives
and other key members of Congress and the Administration. The event is now co-
sponsored by Gold Line Construction Authority, Foothill Transit, Alameda Corridor-East
Construction Authority and San Gabriel Valley Council of Governments and was attended
by more than 80 people. The event, which is held in DC for Washington elected and staff
representatives there. It is very helpful to strengthening our partnership with these key
individuals and demonstrating the depth and breath of our Valley's cities to our various
entities of all parties in Washington, and the level of commitment and support the
SGVCOG has in undertaking its various initiatives.
✓ 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.
✓ Secured the participation of La Canada Fhntridge in the SGVCOG, which now
completes the inclusion of all cities within the geographic boundaries of the San
Gabriel Valley.
Goal #2 - Fair Share Transportation Resources
Los Angeles-Claremont Gold Line
✓ Secured funding, $1.4 million in SCAG funds, and undertook the update of the EIR/EIS
for Phase II of the Gold Line. Secured political support and financial assistance
($300,000) from Phase II corridor cities to support SGVCOG efforts in securing federal
funds to do the preliminary engineering work for the light rail line's extension.
✓ Identified potential funding opportunities and negotiated the terms of a contract with
Caltrans to transfer $13.9 million to Gold Line Construction Authority to support future
Phase II construction and planning activities
Alameda Corridor-East
✓ Assisted ACE in securing $5 million in federal funding to support the continued
improvements for the Alameda Corridor-East Project.
Truck Lanes - SR-60
✓ Participated in SCAG's feasibility study of establishing truck only lanes on SR-60.
West San Gabriel Valley Bus Zone
✓ Formed an interim joint powers agency of the West San Gabriel Valley Cities to create a
second transportation zone in the Valley.
✓ Secured SCAG funding to continue the analysis required to evaluate the financial
feasibility of creating a second transportation zone to serve the West San Gabriel Valley.
✓ Provided leadership and input to MTA in reorganizing bus service to address San Gabriel
Valley's objectives for improved bus service in West San Gabriel Valley.
San Gabriel Valley Council of Governments 2 2002-2003 Proposed Budget
Goal #3 - Improve Quality of Life
Environment
✓ Participated in the development of the San Gabriel and Lower Los Angeles Rivers and
Mountains Conservancy Open Space Plan as mandated in the enabling legislation.
✓ In joint effort with the San Gabriel and Lower Los Angeles Rivers and Mountains
Conservancy secured $200,000 grant to develop a Master Plan for the Rio Hondo
Tributary. SGVCOG will administer this master planning project for the conservancy this
next year.
Goal #4 - Expand Housing Opportunities
Housing
✓ Sponsored our first ever housing summit here in the Valley. The conference was attended
by 100 people and included elected and appointed officials for many of our member cities
and State agencies.
General Operating Income
($496499302)
San Gabriel Valley Council of
Governments' income is derived from five
sources: dues from member agencies which
support our general fund; special
programmatic funds from SCAG, State of
California, Phase II Gold Line assessments;
and MTA. As shown in Figure 1, the
revenues will increase once again this next
year. The increase is attributable to the
increase in special program funds as
discussed further below.
E3 Prop. A&C M AB2766 ❑ General Fond
$500,000
$400,000
$300,000
$200,000
$100,000
s-
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
M DUES ®SCAG ❑ MTA ❑ MSRC M STATE
qh I qI I qq 8 O~ ON O~
qR q'~ qb q~ q4' qq CP O~ O~
Figure 1
SGVCOG Operating Income
qh qb q~ q~ Q~ Qti O~
qa qh q~O q~ q~ qq CP O~ Oti
Figure 2
General Operating Income from flues
Dues ($424,302)
As shown in Figure 2, the slight
increase in this revenue category
is due to the addition of La
Canada Flintridge and the
payment of dues associated
therewith. The revenue from
memberships and dues is the
primary source of income to
support the SGVCOG's day-to-
day operations and services. Also,
San Gabriel Valley Council of Governments 3 2002-2003 Proposed Budget
this money is used to support our efforts in writing grants, provide in-kind match and seek other
categorical funds. Membership and dues money should provide sufficient working capital to
ensure stability, but must be leveraged in achieving other specific program desired outcomes, i.e.
bus zones, Gold Line, etc.
General
Prop. A&C Fund
45% 10%
h
AB2766
45%
Figure 3
Membership and Dues Revenue
Proposition A & C - Each member city currently
pays .12¢ 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 45 percent 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 45 percent 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 percent of the SGVCOG's overall operating income.
Exhibit 1 on the following page provides a comparison of dues paid by cities for the current fiscal
year and the proposed.
Categorical (Program Specific) Funds
In addition to income from dues and membership, which supports our core programs, SGVCOG
anticipates receiving income from the Southern California Association of Governments (SCAG),
State of California, special assessments of our Gold Line, Phase II member agencies and MTA.
All of these funds are earmarked to support specific projects and activities that have been funded
as a result of an application or request submitted by the SGVCOG.
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS ($1,181,500)
Each subregion executes an Overall Work Program adopted by SCAG. All of the revenue
received from SCAG is intended to cover direct costs incurred in providing specific mandated
products. As a condition of receiving these funds, SGVCOG is required to provide a 25 percent
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
San Gabriel Valley Council of Governments 4 2002-2003 Proposed Budget
Exhibit I
.
City -
2002
Census
-"Prop AB:C
$.12/Capita.
AB 2766
$.12/Capita
,
General Fund
2002-2003
Dues
ALHAMBRA
88,000
$ 10,560
$ 10,560
_
$ 2,700
$ 23,820
ARCADIA
54,900
$ 6,588
$ 6,588
$ 2,250
$ 15,426
AZUSA
46,100
$ 5,532
$ 5,532
$ .2,100
$ 13,164
BALDWIN PARK
78,400
$ 9,408
$ 9,408
$ 2,550
$ 21,366
BRADBURY
890
$ 107
$ 107
$ 1,500
$ 1,714
CLAREMONT
35,550
$ 4,266
$ 4,266
$ 1,950
$ 10,482
COVINA
48,100
$ 5,772
$ 5,772
I
I $ 2,100
$ 13,644
DIAMOND BAR
58,100
$ 6,972
$ 6,972
I
$ 2,250
$ 16,194
DUARTE
22,100
$ 2,652
$ 2,652
$ 1,800
$ 7,104
EL MONTE
119,500
$ 14,340
$ 14,340
I
$ 3,000
$ 30,000
GLENDORA
50,800
$ 6,096
$ 6,096
$ 2,100
$ 14,292
INDUSTRY
790
$ 95
$ 95
$ 1,500
$ 14,794
IRWINDALE
1,480
$ 178
$ 178
$ 1,500
$ 14,794
LA CANADA FLINTRIDGE
20,950
$ 2,514
$ 2,514
( $ 1,800
$ 6,828
LA PUENTE
42,150
$ 5,058
$ 5,058
I $ 2,100
$ 12,216
LA VERNE
32,500
$ 3,900
$ 3,900
$ 1,950
$ 9,750
MONROVIA
37,950
$ 4,554
$ 4,554
$ 1,950
$ 11,058
MONTEBELLO
63,800
$ 7,656
$ 7,656
$ 2,400
$ 17,712
MONTEREY PARK
62,600
$ 7,512
$ 7,512
$ 2,400
$ 17,424
PASADENA
138,800
$ 16,656
I
$ 16,656
$ 3,000
$ 30,000
POMONA
153,900
$ 18,468
$ 18,468
$ 3,000
$ 30,000
ROSEMEAD
55,300
$ 6,636
$ 6,636
$ 2,250
$ 15,522
SAN DIMAS
35,950
$ 4,314
$ 4,314
$ 1,950
$ 10,578
SAN GABRIEL
40,950
$ 4,914
$ 4,914
$ 1,950
$ 11,778
SAN MARINO
13,300
$ 1,596
$ 1,596
$ 1,650
$ 4,842
SIERRA MADRE
10,850
$ 1,302
$ 1,302
$ 1,650
$ 4,254
SOUTH EL MONTE
21,700
$ 2,604
$ 2,604
$ 1,950
$ 7,158
SOUTH PASADENA
24,950
$ 2,994
$ 2,994
$ 1,800
$ 7,788
WALNUT
30,900
$ 3,708
$ 3,708
$ 1,950
$ 9,366
WEST COVINA
109,100
$ 13,092
I
$ 13,092 (
$ 3,000
$ 29,184
TOTALS _
1,500,360
$ _ 432,251.60
Wimated
San Gabriel Valley Council of Governments 5 2002-2003 Proposed Budget
needed by staff from Arroyo Associates, which is the SGVCOG'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, SGVCOG has budgeted $1,000,000 to support SCAG OWP funds and
required in-kind match for FY 2002-2003.
Growth Visioning $87,500 $87,500
Trucking Study-SR-60 $0 $200,000 $200,000
Jobs/Housing Balance $44,000 $0 $44,000
Gold Line Phase II $400,000 $400,000 $800,000
TOTAL $531,500 $650,000 $1,181,500
Figure 4
2002-03 SCAG OWP Budget
STATE OF CALIFORNIA WATER RESOURCES AGENCY - RIO HONDO
WATERSHED MANAGEMENT 2002 MASTER PLAN ($200,000)
Efforts are currently being made to establish a Master Plan for Rio Hondo Watershed, which will
enable cities along that tributary to be competitive for future watershed management funding
grants. The Plan will include: Convening 10-15 key stakeholders to form a Steering Committee;
leverage the expertise of participants and volunteers to gather existing data, identify data gaps,
and facilitate meetings and public outreach; hire a consultant to fill data gaps, identify specific
improvements, and set a framework for future implementation; and create a Plan that will be used
as a collaborative stepping stone to create a watershed constituency; and to provide a framework
from which to secure additional grant funding and overall improvements to the quality of life in
the San Gabriel Valley. This project will be contracted out to a consultant. The SGVCOG is
responsible for managing the consultant and making sure the desired product is received on time
and within budget. The Plan is currently in review by the State Water resources Control Board.
The projected start date for execution of the Master Plan contract is September 1, 2002.
PHASE II GOLD LINE ($300,000)
Each of the eleven cities along the Phase 11 points of the light rail line have contributed their
proportionate share of funds required to support the SGVCOG's efforts to secure federal funding
for the next phase of the light rail line to Claremont. All of the funding raised through this
assessment is used to pay for advocacy services provided by firms in Washington DC and
Sacramento for this project.
San Gabriel Valley Council of Governments 6 2002-2003 Proposed Budget
RTP Update $0 $50,000 $50,000
MTA EAST SAN GABRIEL VALLEY BIKEWAY PROJECT ($1,900,000)
This capital improvement project involves extending the bikeway from the west to east
in the northern area of the West San Gabriel Valley. The project is SGVCOG's first step
in working with our cities in implementing the County's Bikeway Master Plan for San
Gabriel Valley which was adopted in 1995.
INTEREST INCOME ($10,000)
At the time the SGVCOG was created, two predecessor organizations, San Gabriel Valley
Association of Cities and San Gabriel Valley Transportation Coalition, contributed $44,884 and
$19,389 respectively as startup capital contributions. During its first year. of operation, the
SGVCOG ran a deficit thereby reducing its initial fund balance. Since that time, as shown in
Figure 5, the SGVCOG has made significant strides in achieving financial stability. Our fund
balance is anticipated to be approximately $180,000 as of June 30, 2002. These funds are
invested in LAIF in accordance with SGVCOG's investment policy used to meet cash flow needs
to the organization throughout the year. The principal and interest income derived from these
funds can be used by the Board to support various activities and issues that may be raised by our
members during the course of the year.
General Fund Operating Expenditures
As shown in Figure 6, the
SGVCOG has four management
contracts to support its ongoing
operations, programs and
services. These management
services contracts are paid from
the funds collected from
member dues and are allocated
to support activities in one of
five functional areas, as shown
in Figure 7 below.
Arroyo Associates, Inc.
$ 310,000
$ 310,000
L$ 322,000
MTA
50,000
50,000
05,000
Burke Willar s & Sorsensen
15,000
15,000
15,000 i
Edwards, Fchel & Beranek
7,225
7,225
7,500
Board Stipens
-
-
13,500 I
Miscellanous (Media, Newsletter, Web, etc.)
10,000
9,500
10,000
$ 392,225
$ 391,725
$ 418,0001
Figure 6
SGVCOG General Ekpendtures
Transit and Transportation Programs
M
1.5
E
2.0
$ 191,250
=
$ 212,028
HousingfEnvironmental Programs
1.5
1.50
$ 119,532
$ 126,463
Planning
0.5
$ 23,906
$ 26,503
Solid Waste Program
0.25
E
$ 23,906
$ 26,503
Administration
0.25
O.2
$ 23,906
$ 26,503
Total
4
$ 382,500
$ 418,000
Figure 7
Management Services Allocations to Functional Areas
San Gabriel Valley Council of Governments 7 2002-2003 Proposed Budget
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
Trucking Committee, Solid Waste, Environment, Legislative, San Gabriel River and Mountains
Conservancy, and Regional Housing Needs Assessment. In addition, staff represents SGVCOG
at AQMD, MSRC, and SCAG meeting. At the time, AAI began this service in 1996, in addition
to the Governing Board, there were two SGVCOG committees: City Manager Technical
Advisory and Planning Directors.
In addition, AAI prepares and distributes meeting minutes and Board actions, conducts analysis,
prepares all grant applications and staff reports; prepares, copies and distributes all
correspondence and mailings, oversees and manages all contracts and projects and provides office
space, utilities and all ancillary services necessary to run the day to day operations of the
SGVCOG. Last year, the SGVCOG's contract with Arroyo Associates, Inc. was rebid and
renewed for a five year period. The contract provides for an annual adjustment in fees based on
changes in CPI index for the past fiscal year.
Burke, Williams & Sorensen (BWS)
BWS provides legal assistance to the Board in policy deliberations. A retainer agreement has
been executed for $3,750 per quarter or $15,000 annually for the SGVCOG's legal services.
Edwards, Eichel and Beranek (EEB)
EEB is a certified public accounting firm that conducts our annual audit to ensure compliance
with adopted rules and regulations. A fee of $7,500 is paid for that audit.
Metropolitan Transportation Authority (MTA)
In 1997, the Governing Board authorized execution of a contract with MTA to pay 50 percent 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.
Board Stipends
The SGVCOG was formed in 1995 and will be celebrating its seventh year of operation in
November 2002. The organization has achieved considerable success during this period of time
and has grown both in terms of scope and importance. Our continued success depends upon the
time and efforts spent by our many Board members attending meetings and representing the
Valley at a wide variety of events and meetings. We have never compensated our Board
members for attendance at Board meetings and it is becoming increasingly difficult to ensure a
quorum at our regularly scheduled Board meetings. The payment of a $50 per month stipend
would be a minimal payment to the Board members for their time and participation in this
voluntary and added duty to their local elected office. These funds, $13,500, have been budgeted
in the proposed 2002 budget.
San Gabriel Valley Council of Governments 8 2002-2003 Proposed Budget
2002-2003 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:
Transportation
Alameda Corridor-East (ACE) Project- The ACE Construction Authority continues to
make significant progress securing needed funding and implementing the various construction
projects. To date, the COG working with ACE has secured approximately $400 million in
funding commitments from Federal, State and MTA Agencies. The jump start safety
improvement projects for 42 crossings is under construction. Thirty grade crossings will have
safety improvements completed by December. The remaining crossings should be completed
by the end of the fiscal year. It is expected that five grade separation projects will begin
construction during the fiscal year. The challenge will be to secure Phase 11 funding ($500
million) given the financial constraints at both Federal and State levels. In addition, other
surrounding counties are developing similar projects and will be competing for the same
construction funds. Consequently, we are facing significant challenges to maintain the
adopted eight-year project schedule. The highest priority must be given to securing the
remaining $500 million in funds during the next three years to ensure a timely completion of
this critical project.
Gold Line, Phase II - Phase I of the Gold Line is on schedule to commence service with the
next 14 months. As construction begins to wind down as various segments are completed, it
is essential that the SGVCOG turn its focus on Phase 11, completion of the line to Claremont,
as stipulated in the enabling legislation. This will require the successful attainment of Federal
funding to support the Agency's continued planning activities as well as a modification to its
governance structure to ensure appropriate representation and policy direction as the Agency
broadens its focus to include East San Gabriel Valley.
West San Gabriel Valley Bus Zone - It appears MTA will be adopting its new bus service
delivery system model, which will meet the majority of objectives established by the
SGVCOG four years ago as part of our bus system restructuring efforts. It is essential that the
SGVCOG take a leadership position in working with MTA and participating cities in ensuring
this MTA policy becomes an operating program reality.
Truck Lanes, SR-60 - SCAG is recommending that the next step, a major investment study,
be undertaken to refine the capital investment required to construct and maintain truck only
lanes on the 60 freeway. Possible alignment alternatives will be examined as well. The
SGVCOG must participate and monitor closely the SCAG study effort and assess its impact
of the Valley.
110 Pasadena Freeway (Arroyo Parkway) - This segment of the 110 Freeway was opened
in 1955. Since that time it has become a major transportation corridor in the metropolitan area
San Gabriel Valley Council of Governments 9 2002-2003 Proposed Budget
and a key transportation link serving the San Gabriel Valley. A major assessment of the
freeway in today's transportation environment needs to be undertaken. Improvements should
be identified and prioritized along with recommended improvements for other freeways in the
Southern California area.
Environment
Rio Hondo Watershed Master Plan - Efforts are currently being made to establish a Master
Plan for the Rio Hondo Watershed, which will enable the area to be competitive for future
watershed management funding grants: The Plan will include: convening 10-15 key
stakeholders to form a Steering Committee; leverage the expertise of participants and
volunteers to gather existing data, identify data gaps, and facilitate meetings and public
outreach; hire a consultant to fill data gaps, identify specific improvements, and set a
framework for future implementation; and create a Plan that will be used as a collaborative
stepping stone to create a watershed constituency and to provide a framework from which to
secure additional grant funding and overall improvements to the quality of life in the San
Gabriel Valley. The Plan is currently in review by the State Water resources Control Board.
The projected start date for execution of the Master Plan contract is September 1, 2002.
Open Space District - A meeting was held last year to explore possible interest in the Valley
to create an open space district in our foothills. There was strong support indicated at that
meeting for the SGVCOG and the conservancy to prepare a series of options for cities to
consider. For a number of reasons, there was no follow-up to that initial meeting. With the
recent management changes at the conservancy, the open space district concept is once again
being explored. As the Conservancy moves forward in adopting its own Open Space Plan for
its boundaries, now is the appropriate time to join together in exploring in detail the feasibility
of developing and implementing an Open Space District here in San Gabriel Valley.
Housin
Housing - Our recent housing summit identified significant interest and opportunity for our
cities to work collaboratively on addressing the housing production issues in the Valley. Two
key opportunities: Gold Line Phase H and City of Industry Housing set aside funds can
provide the impetus and needed capital to make considerable progress on this issue during the
next year. Ninety-nine percent of the Gold Line, Phase II project lies within the boundaries of
eleven different redevelopment agencies and goes through downtown central business districts
of seven of our member cities.
Political Influence
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 locating along the 210 corridor. We are also
home to many small businesses. As an organization whose mission is to unify and move
forward the public sector agenda, we have achieved considerable success. However, we
cannot achieve our full potential without an increased role and visibility of the business
community. We are being stymied on a number our initiatives because of the absence of a
San Gabriel Valley Council of Governments 10 2002-2003 Proposed Budget
strong and united representation of the Valley's business community. This issue has been
discussed on numerous occasions with a commitment made to help build that partnership. To
date, San Gabriel Valley has been unable to build its business alliance. A 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 SGVCOG 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.
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 the stress and strains of serving in public office, we are beginning to
witness turnover of our elected leaders. The SGVCOG Governing Board had 30 percent
turnover in its membership this last year. 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.
Governance - SGVCOG is a joint powers agency comprised of the 31 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.
San Gabriel Valley Council of Governments 11 - 2002-2003 Proposed Budget
San Gabriel Valley Council of Governments
Primary Government
Financial Statements
With Independent Auditor's Report
Year Ended June 30, 2001
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SAN GABRIEL VALLEY COUNCIL OF
TABLE OF CONTENTS
Independent Auditor's Report
Financial Statements
Balance Sheet
Statement of Income and
Fund Equity
Statement of Cash Flows
Notes to Financial Statements
Pace
1
2
3
4
L
J
EDWARDS. Elcn_I- & BERANEK
AT(OCNiANIS
r
INDEPENDENT AUDITOR'S REPORT
J
Members of the Governing Hoard
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, 2001, and the related
statements of income and cash flows for the year then ended. These financial
statements are the responsibility of the entity's management. Our responsibility
is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
A primary government is a legal entity or body politic and contains all funds,
departments and activities that are not legally separate. Such legally separate
i entities are referred to as component units.
1 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, 2001 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
jl Council of Governments, namely the Alameda Corridor East Construction Authority,
I
do not purport to and do not, present fairly the financial position of the San
Gabriel Valley Council of Governments as of June 30, 2001, and the results of its
'I operations for the year then ended.
Qa~-
November 16, 2001 Edwards, Eichel & Beranek
Pasadena, California Certified Public Accountants
6~0 Sudaa,x Aki w; Viu..\ Aci-,u:e
St. it I: a202
626,'1?I-1800
f-n.~626! 3i-3804
\VI...iisrm: CCbCpas.cUm
San Gabriel Valley Council of Governments
Balance Sheet
June 30, 2001
J
Assets
Cash and cash equivalents, Note 2
l Accrued interest receivable
J Accounts receivable
i
Pasadena Blue Line
25,000
Southern California Association of Governments
27,720
(SCAG)
' Metropolitan Transit Authority (MIA)
31,403
Other
1.275
1 Advances to the Alameda Corridor East Construction
Authority (ACE) Note 5
1 Prepaid expenses
000
25
Administration
,
1"779
Insurance
Equipment, net of accumulated depreciation $10,587
Total Assets
I_ Liabilities and Fund Equity
Liabilities
Accounts payable
Loan payable to the City of Industry
.
~
Deferred Income
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Total Liabilities
~
Fund Equity
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Contributed capital
Capital contribution by the San Gabriel
Valley Coalition, to be used for
transportation studies.
19,389
Capital contribution by the San Gabriel
E Valley Association of cities.
44.884
j Retained earnings
Total fund equity
Total Liabilities and Fund Equity
The accompanying notes are an integral
part
of these financial statements
$ 130,639
2,522
85,398
2,105,529
26,779
5,696
5,356,563
$ 77,365
2,000,000
25,000
2,102,365
64,273
189.925
254,198
$22,356,563
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San Gabriel Valley Council of Governments
Statement of Income and Fund Equity
Year ended June 30, 2001
Revenues
Dues
General fund $ 432,565
Grants and matches from other governments
Southern California Association of Governments
(SCAG) grants 167,727
Metropolitan Transit Authority (MTA) grants 31,953
Other revenues 35,250
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Total revenues
Program expenses
Air quality
Administrative and technical
Transportation
Southern California Association
of Governments grants
Metropolitan Transit Authority grants
Other projects, not reimbursed by grant
revenue
Administrative expenses Note 3
Total expenses
Net income (lose) from operations
Non-operating income
Interest income
Net income for the period
132,000
36,000
182,200
155,423
45,499
71,849
Fund equity at the beginning of the period
Restatement of prior period operations, Note 5
Fund equity beginning of the period, as restated
Fund equity end of period
The accompanying notes are an integral part
of these financial statements
622,971
65,594
688,565
(21,070)
2
667,495
22,402
1,332
296,866
(44,000)
252,866
S 254,198
San Gabriel Valley Council of Governments
Statement of Cash Flows
Year ended June 30, 2001
Cash flows from operating activities
Net income (loss) from operations $ (21,070)
Adjustments to reconcile net income from operations
Depreciation 3,093
Decrease in receivables 137,759
Decrease in prepaid expenses 23,221
Decrease in accrued interest 785
(Decrease) in accounts payable (169,191)
Cash paid for expense items pertaining to the previous year (44,000)
Net cash (used by) operating
activities (69,403)
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Cash flows from investing activities
Interest income 22,402
Net decrease in cash and cash equivalents (47,001)
Cash and cash equivalents at the beginning
of the period 177,640
Cash and cash equivalents at the end of the period S 130,639
The accompanying notes are an integral part
of these financial statements
3
San Gabriel Valley Council of Governments
Notes of Financial Statements
June 30, 2001
Note 1 Summary of Significant Policies
organization and activities
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, Environmental 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
funds of its component unit, the Alameda Corridor East Construction
Authority.
Basis of Accounting
The accounting records of the COG are maintained on the accrual
basis of accounting.
Cash and Cash Equivalents
The COG considers money market funds and all equivalent liquid debt
instruments purchased with a maturity of three 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 SCAG grants require support
for expenditures reimbursed.
I~ Accounting for Federal and State grants generally calls for
recognition of income from grant funds only as those funds are
obligated or paid out. There may be grant-reimbursable expenses
charged to other categories or timing differences in recognition of
expense items.
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San Gabriel valley Council of Governments
Notes to Financial Statements
Note 1 Summary of Significant Policies (cont.)
All receivables relate to expense reimbursements from governmental
agencies and are expected to be fully collectible. Accordingly, an
allowance for doubtful accounts is not provided.
Proprietary Fund Types
Proprietary funds are accounted for using the economic measurement
focus; the accounting objective is determination of net income. All
assets and liabilities of a proprietary fund activity are included
on its balance sheet. Proprietary fund capital is segregated into
contributed capital and retained earnings.
Office Ecuipment
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 (GAAP) requires the use of
estimates in many areas. Estimates used in these financial
statements relate primarily to fixing estimated useful lives to
depreciable assets. Based upon the preceding information, estimates
may not have a material effect on these financial statements.
Reclassifications
Certain income and expense items have been reclassified to better
reflect operations. The principal reclassifications have been to
reflect certain expenses incurred as program expenses irrespective
of whether reimbursed by grantor agencies. For the most part COG
program studies have been funded by local and state grants.
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)
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Obligations or other instruments of or issued by a federal
agency or government sponsored enterprise
Bankers' acceptances which are eligible for purchase by the
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San Gabriel Valley Council of Governments
Notes to Financial Statements
Note 2
Cash and Investments (cont.)
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 associations 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.
At June 30, 2001 the net carrying amount of cash was $19,729, bank's
balance $28,962, Category 1.
Investments consisted of $110,911 deposited with the Local Agencies
Investment Fund, LAIF, an instrumentality of the State of
California, and is not categorized.
GASS 31 requiring market value reporting of short term investments
became effective for years ending June 30, 1998. The COG at June 30,
2001 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 coat. At June 30, 2001 fair market value of
the LAIF investment, net of accrued interest, was 111,132.
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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.
office supplies and expense
$ 4,247
Newsletter
2,663
Travel and Entertainment
11,184
Legal
21,316
Audit
9,850
Meetings
8,432
Depreciation
3,093
Dues & subscriptions
679
Other
4,130
Total 6S 5,594
Note 4 Alameda Corridor East Construction Authority (ACE)(Component Unit)
Because of the size and scope of activities involving the Alameda
Corridor East Project, a separate joint powers authority was set up
for this purpose, which while affiliated, acts separately from the
COG. The JPA became operative in October 1998 and is empowered to
conduct business, hire the necessary consultants and contractors,
enter into contracts and agreements and to issue debt instruments as
needed.
The ACE Authority was in its nascent stage until after June 30,
1999, the COG paying its expenses. In August of 1999 the COG
borrowed $2,000,000 from the City of Industry with a pledge of the
proceeds of the grants and loans of the grants outstanding. The note
was to mature no earlier than 18 months after issuance, no later
than 36 months. In February of 2001 the City of Industry agreed to
subordinate its indebtedness to Grant Anticipation notes to be
issued. The City will continue to be paid interest at a rate not to
exceed the LAIF rate but no principal payments may be made until the
notes are paid off. At June 30, 2001 the balance of outstanding
grant anticipation notes was $30,000,000. The nature of the notes
and the San Gabriel valley Council of Government's obligation will
be discussed in the following paragraph.
The COG entered into an agreement to borrow up to $100,000,000 by
the issuance of grant anticipation notes guaranteed by a letter of
credit and collateralized by the pledge of grant revenues. At June
30, 2001 and at report date $30,000,000 had been issued. All of the
proceeds of the issue has been received by the ACE Authority and its
attendant interest, costs and fees have been paid for by the ACE
Authority. Management has elected not to report the transaction on
its balance sheet due primarily to its size, and the fact that the
transaction amounts to an accommodation similar to a municipality
issuing bonds for a hospital located within its boundaries or of
mortgage revenue bonds to be paid by homeowners in an Affordable
Housing project.
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San Gabriel Valley Council of Governaents
Notes to Financial Statements
Note 5 Prior Period Adjustment
Certain expenses were paid for in the current year that were
obligated in the year ended June 30, 2000 and not accrued at that
time, resulting in a restatement of prior year's operations of
$44,000 and a reduction of retained earnings at July 1, 2000 of a
like amount.
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W. CONSENT CALENDAR
CC-A APPROVAL OF UNDERTAKING AGREEMENT FOR PARCEL MAP 26446 -
7637-7641 GRAVES AVENUE
CC-B EXTENSION OF AGREEMENT WITH MARIPOSA LANDSCAPES
-C RENEWAL OF MEMBERSHIP IN THE SAN GABRIEL VALLEY COUNCIL OF
GOVERNMENTS
CC-D AUTHORIZATION TO REJECT CLAIMS AGAINST THE CITY FROM
MICHAEL AND LINDA DUNLAP
CC-E ANNUAL REPORT OF THE ROSEMEAD REDEVELOPMENT AGENCY FOR
FISCAL YEAR 2000-01
CC-r AUTHORIZATION TO ATTEND ANNUAL LEAGUE OF CALIFORNIA CITIES
. CONFERENCE, OCTOBER 2-5,2002, LONG BEACH
MOTION BY COUNCILMAN IMPERIAL, SECOND BY COUNCILMAN TAYLOR that the
Council approve the aforementioned items on the Consent Calendar. Vote resulted:
Yes: Imperial, Taylor, Clark, Vasquez
No: None
Absent: Bruesch.
Abstain: None
'the Mayor declared said motion duly carried and so ordered.
V. MATTERS FOR DISCUSSION AND ACTION - None
VI. STATUS REPORTS - None
VII. MATTERS FROM OFFICIALS'
A. RESOLUTION NO. 2002-30 - RELATIVE TO THE EXTRADITION OF
CRIMINALS
The following Resolution was presented to the Council for adoption:
RESOLUTION NO. 2002-30
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CCMIN:7-09-02
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