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CC - Item 4A - Renewal Of Membership In The San Gabriel Valley Council Of GovernmentTO: HONORABLE MAYOR AND MEMBERS ROSEMEAD CITY COUNCIL FROM: `RANK G. TRIPEPI, CITY MANAGER DATE: 1 JULY 6, 2000 RE: RENEWAL OF MEMBERSHIP IN THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS Attached for your consideration is a request from the SGVCOG requesting that the City of Rosemead renew it's membership. Also attached is a 2000 -0I Budget and the most recent annual report. RECOMMENDATION It is recommended that the Rosemead City Council authorize the renewal of membership in the San Gabriel Valley Council of Governments. d COUNCIL :�,C'"°�?DA JUL 112000 ITEM No. de, -A San Gabriel Valley Council of Governments 3871 East Colorado Blvd., Suite 101, Pasadena, California 91107 -3970 Phone: (626) 564 -9702 FAX: (626) 564 -1116 E -Mail SGV @sgvcog.org OFFICERS President June 9, 2000 Harry L. Baldwin Vice President Frank Tripepi Lara L. Blakely City of Rosemead Treasurer /Auditor 8838 E. Valley Blvd. D. Barton Doyle Rosemead, CA 91770 MEMBERS RE: 2000 -2001 SGVCOG Membership and Dues Alhambra Arcadia Dear Mr. Tripepi: Azusa Baldwin Park Attached, please find your City's invoice for 2000 -2001 San Gabriel Valley Council of Governments' membership dues. The draft work program proposed for the upcoming Bradbury - year, which was sent to you for review, details proposed budget and staffing. The Claremom budget provides for a continuance of the current fees and dues structure, which is as Covina follows: Diamond Bar Duane ✓ Transit and Transportation program fee, which is $.12 per capita and may be paid El Monte with Proposition A and C funds. Glendora ✓ Air Quality program fee, which is $12 per capita and may be paid with AB 2766 Industry funds. Irwindale ✓ General Fund fees maybe paid with General Fund revenue La Puente In Verne Please note this is a suggested formula. Member agencies are free to determine whatever allocation is best suited to their individual circumstances provided the total payment is Monrovia met. Montebello Monterey Park Thank you for your continued support. SGVCOG has completed yet another very Pasadena successful year, and looks forward to even greater accomplishments for our cities during Pomona the next year. Should you have any questions, please contact me. Rosemead San Dimas Sincerely, San Gabriel San Marino Sierra Madre Nicholas T. Conway South EI Monte Executive Director South Pasadena Walnut Enclosure: 2000 -2001 Invoice West Covina E%ECUTI VE DIREQOR/ SECRETARY Nicholas T. Conway Arroyo Associates, Inc. San Gabriel Valley Council of Governments 3671 East Colorado Blvd., Sude 101, Pasadena, California 91107 -3970 Plane: (626) 564.9702 FAX: (626) 5641116 E -Mail SGV@sgvcog.org DATE 6/13/2000 Invoice INVOICE NO. 99 -00 -46 DUE DATE 1/7/2000 BILL TO REMIT TO City of Rosemead San Gabriel Valley Council of Governments 8838 East Valley Boulevard 3871 East Colorado Blvd., Suite 101 Rosemead, CA 91770 Pasadena, CA 91107 -3970 DESCRIPTION AMOUNT 2000 -2001 FY Dues/Fees Air Quality Program Fees (AB2766) 6,876.00 Transit & Transportation Program Fees (Prop. A &C) 6,876.00 General Fund Fees 2,250.00 Total $16,002.00 SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS " - e m 3871 East Colorado Btvd., Suite 101, Pasadena, California 91107-3970 Phone: (626) 564 -9702 FAX: (626) 564 -1116 E-Mail SGV@sgvcog.org DATE: June 7, 2000 TO: Governing Board FROM: Nicholas T. Conway Executive Director RE: SGVCOG 2000 -01 Proposed Work Program Transmitted herewith is the San Gabriel Valley Council of Governments' ( SGVCOG) proposed work program for the Fiscal Year 2000 -01. This document outlines the accomplishments of this last year, the proposed objectives for the coming year and the allocation of resources to achieve those desired outcomes. It is important to note, the proposed work program does not anticipate an increase in the current dues. The new programs for Solid Waste were funded through reallocation of existing resources. Mission SGVCOG Mission Statement: "To ensure the San Gabriel Valley's fair share' of scarce Federal, State and Local resources by fostering consensus among cities in the San Gabriel Valley regarding policies and programs that address issues relating to land use, air quality, transportation, solid waste and other matters deemed essential to our cities. " 1999 -2000 Achievements During this last year, a number of major objectives were achieved in support of SGVCOG's annual goals. Goal #1 — Enhance the recognition and political influence of the San Gabriel Valley • Negotiated an agreement with Caltrans that permitted the placement of signs on all major freeways (I -10, 110, 210, 605, and 60) indicating motorists traveling in the Los Angeles area were entering San Gabriel Valley. Established contact with various media sources, most notably radio and TV representatives, that provide media coverage and report on local news events and assisting them in gaining an understanding and awareness of the San Gabriel Valley. The San Gabriel Valley is now a designation commonly found in most regional media sources. We continue to build and strengthen our ties with our Valley's elected representatives in Washington DC, Sacramento, and downtown Los Angeles. We have established ongoing and regularly scheduled meetings with each of our five Congressional members and have similar meetings with the staff members for our Assembly and Senate representatives as well. Hosted a dinner in Washington DC for our member cities, congressional representatives and other key members of Congress and the Administration. The event, co- sponsored by Foothill Transit and the Alameda Corridor -East Construction Authority, was attended by more than 80 people. The event, which was held at Union Station, was very helpful to strengthening our partnership with both elected and appointed officials in Washington, demonstrating the depth and breath of our Valley's cities to our various entities of all parties in Washington, and demonstrating the level of commitment and support the SGVCOG has in undertaking its various initiatives. • Successfully completed a State Senate - directed audit of the startup costs associated with the ACE Project. The audit indicated all operating policies and procedures were operating in an efficient and cost - effective manner. Hosted a breakfast meeting for Senator Dianne Feinstein, co- sponsored by the San Gabriel Valley Economic Partnership. Over 200 people attended, making it the largest gathering the Senator had in a series of meetings throughout the State that week. In subsequent correspondence, the Senator expressed her appreciation and support for the San Gabriel Valley. Hosted a dinner in Sacramento for our Valley's Senate and Assembly members. Over 50 people attended the dinner, including 4 of our 5 Senators and 5 of our 7 Assemblymembers. Hosted a monthly breakfast and prepared briefing materials for SGV elected officials serving on SCAG's Regional Council and various committees. The purpose of these meetings was to better prepare SGV representatives for subsequent discussions at SCAG's regional policy meetings. Goal #2 — Ensure the San Gabriel Valley receives its fair share of scarce federal, state and local resources to support needed transportation improvement projects. • Secured approximately $250 million dollars in new funds to support the Alameda Corridor -East Project. Funds allocated to support this project came from the California Transportation Commission. • Completed the feasibility analysis to expand the Foothill Transit Zone and attempted to begin implementing that expansion. Due to various statutory requirements associated with the creation of a new bus zone, it was determined we could not expand the Foothill Transit San Gabriel Valley Council of Governments 2 2000 -2001 Budget Zone as originally intended. We are currently working with the newly created San Fernando Valley Transit JPA to create two new zones in our respective Valleys. • Played an integral role in supporting the creation and subsequently organizing the newly created Los Angeles to Pasadena Metro Blue Line Construction Authority. We continue to be actively involved and provide technical support to the SGVCOG's representative on the five - member board. • Secured designation in Governor Davis's Congestion Relief Transportation Plan, which included $150 million for the ACE Project, $40 million for the Blue Line, $35 million for the SR -71 expansion, and $100 million for the I -10 HOV lane expansion. • Completed Phase I of the study of truck traffic flow, which included identification of several high priority locations throughout San Gabriel Valley that will be the subject of more detailed study in Phase 11 of the project. • Participated in SCAG's feasibility study of establishing truck only lanes on SR-60. Goal #3 — Enhance environmental quality for our 1.9 million residents, while safeguarding the political and economic interests of our cities. • Took an active role in opposing the numerical regulations imposed by the Water Resources Board regarding stormwater runoff. • Participated in the development of legislation to create the San Gabriel Mountain and Rivers Conservancy and worked with our State Senate and Assembly members to ensure its passage in the State Legislature. We also were successful in having $15 million set aside in Proposition 12 (State Park Bond) for the newly created Conservancy. • Reactivated the SGVCOG Solid Waste Committee and completed the most thorough survey ever conducted of solid waste operations, policies, and policy /program positions in San Gabriel Valley. We also developed an RFQ and hired a consultant to assist the COG in developing policies and programs for our cities. • Worked with the South Coast Air Quality Management District on development of proposed Fleet Rule 1191, requiring certain fleet operators to replace their light and medium duty vehicles with clean - buming, alternative fuel models. We continue to provide much needed input on Rules 1192 and 1193, which impact transit buses and solid waste vehicles respectively. • Created a new Environmental Committee to oversee and coordinate various activities and initiatives relating to our Valley's air and water quality. San Gabriel Valley Council of Governments 3 2000 -2001 Budget Goal #4 — Shape planning and economic development policies to help ensure that San Gabriel Valley cities can continue to grow in ways that maintain residents' quality of life. • The SGVCOG was the only Subregion in Los Angeles County to accept delegation of responsibility from SCAG for development of Regional Housing Needs Allocations. Member cities worked closely and with remarkably little dissension on this effort. However, based on this experience, we have recommended significant revisions to housing allocation policies and procedures, and have obtained support from State representatives in the development of legislation to help get those revisions implemented. • Following up on the success of the 1998 -99 Livable Communities project, we obtained funding for and have begun work on a third year Livable Communities study, focused on developing and distributing a toolbox of implementable strategies of use not only to the three case study cities, but to all 29 member cities. Goal #5 — Maximize participation of our member cities in the SGVCOG, and facilitate the cooperative work effort that has been the basis of our successes to date. • Twenty-nine (29) of our thirty (30) San Gabriel Valley cities have for the fifth consecutive year renewed their SGVCOG membership. We have also had a quorum at all SGVCOG Board meetings this year. • Created a SGVCOG Public Works Directors/Engineers Committee to facilitate communication and cooperation for our cities on public infrastructure and related activities. • In addition to our elected officials' active participation, this past year saw an increase in the number of standing and ad hoc committees, and with it, an increase in participation from staff members in our respective cities, including City Managers, Planning and Public Works Directors, and environmental quality staff. The increasing participation is reflective of a growing recognition and credibility of the SGVCOG and its ability to serve as a resource to our members in addressing a wide variety of issues. • More than 100 guests attended our third annual dinner for the San Gabriel Valley's elected officials, held as part of the San Gabriel Valley Economic Outlook Conference. The event held at the Industry Hills Sheraton focuses on recognition of outgoing and incoming elected officials in each of our member cities. General Operating Income As shown in Figure 1, the 2000 -01 proposed revenues represents a continued decline from the prior year. The decline is directly attributable to completion of various projects, most notably the Alameda Corridor -East Project and Electric Vehicle Charging Stations programs. It is important to note that the reduction in revenues was offset by a corresponding reduction in our operating expenditures. It is anticipated, as additional categorical projects are undertaken in the future, there will be a increase in income to cover the costs of the new program. Our income comes from two sources: 1) Dues; and 2) Capital/planning monies for our cities made available through San Gabriel Valley Council of Governments 4 2000 -2001 competitive grants and other categorical funds from other s7,000,000 public agencies including MTA, $6,000,000 MSRC and SCAG. S5,000,000 $4.000.000 Dues $3,000,000 Revenues from memberships and $2'000'000 dues are the primary sources of $1,000,000 income to support the SGVCOG's $- ®DUES ❑SCAG ®MTA MMRRC day -to -day operations and 94-95 95 -96 96 -97 97 -98 98 -99 99-00 00-01 services. These funds are also Figure 1 used to support our efforts in SGVCOG Operating Income writing grants and seeking other categorical funds. They also provide the needed matching resources required for the various categorical projects. Membership and dues money should provide sufficient working capital to ensure stability, but must be leveraged in achieving desired outcomes. As shown in Figure 2, the SGVCOG's general operating income from dues has increased seventy -five percent (75 %) during the last six years. Given the fact that 29 of our 30 cities are now paying dues, the SGVCOG's general operating income has, for the most part, achieved its maximum yield under the current fee structure. The Board's current policy $500,001 $400,010 $300.000 $201.000 $101.000 s- Figure 3 Membership and Dues Revenue ® Prop. A &C NAB2766 NGeneral Fund provides for a capitation of dues at $30,000 annually. Our three largest cities (Pasadena, El Monte and Pomona) benefit from that capitation policy, which results in $17,500 less in potential income. Conversely, our two member cities with the smallest population are charged the average fees paid by the 27 other cities, which offsets the loss in income due to the cap. It is important to note that monies derived from our dues are, by statute, restricted to supporting specific eligible activities, as discussed below and illustrated in Figure 3. San Gabriel Valley Council of Governments 5 2000 -2001 Budget FY95 -96 FY9G97 FYW -98 FYW99 FY99-00 FYUMP Figure 2 General Operating Income from Dues Proposition A & C — Each member city currently pays .100 per capita from the receipt of their City's Proposition A & C funds to support our regional transportation activities. As shown in Figure 3, this revenue source provides 44% of our general operating income. AB2766 — Each member city currently pays .120 from AB2766 monies to support SGVCOG programs relating to air quality and transportation. As shown in Figure 3, monies from this revenue source represents 42% of general operating income. General Fund — Each member City pays a minimum contribution of $1,500, which increases based on per ten thousand in population up to a maximum of $3,000, to support the general administrative activities of the SGVCOG. Reliance on General Funds has decreased proportionally in the budget. As shown in Figure 3, the SGVCOG's operating monies derived from this revenue source now account for 14% of the SGVCOG's overall operating income. Exhibit I on the following page provides a comparison of dues paid by cities for the current fiscal year and the proposed. Categorical Funds In addition to income from dues and membership, which supports our core programs, the SGVCOG anticipates receiving income from the Southern California Association of Governments (SCAG). This money is earmarked to support specific projects and activities that have been funded as a result of an application or request submitted by the SGVCOG. �YKIeI Each subregion executes an Overall Work Program adopted by SCAG. All of the revenue received from SCAG is intended to cover direct costs incurred in providing specific mandated products. Asa condition of receiving these funds, SGVCOG is required to provide a25% match in cash or in -kind services. The SGVCOG's adopted policy for providing matching funds is to use in -kind services spent in working on the various projects provided by staff from our member cities. For example, the hourly rate established for SGVCOG's Planning Director members is $75 hour. The time spent by Planning Directors and other City staff on various committee assignments related to a project is then multiplied by the hourly rate and submitted as documentation for our matching requirement. These hours and costs are supplemented where needed by staff from Arroyo Associates, which is the COG'S staffing resources. The growth in our categorical funds and their matching requirement has a significant impact on the organization. As shown in Figure 4 below, SGVCOG has budgeted $957,500 to support SCAG OWP funds and required in -kind match for FY 2000 -01. San Gabriel Valley Council of Governments 6 2000 -2001 Budget Transit Restructuring During the last year, each of the eight cities in the new proposed transportation zone contributed funds to cover the additional costs incurred in creating that second zone. These funds were supplemented by monies appropriated by SCAG and MTA. The funds collected to date ($175,000) have been allocated as follows: Parsons Brinkerhoff ($30,000) to complete the financial analysis regarding the transit zone; and Capital Representation ($24,000) and Richard Katz ($60,000) to provide technical assistance to the COG in dealing with policymakers and union representatives in Sacramento regarding transit zone creation. Fund Balance At the time the SGVCOG was created, two predecessor organizations, San Gabriel Valley Association of Cities and San Gabriel 200,000 Valley Transportation Coalition, contributed $44,884 and $19,389 150,000 respectively as startup capital contributions. During its fast year of 100,000 operation, the SGVCOG ran a deficit thereby reducing its initial fund 50,000 balance. Since that time, as shown in Figure 5, the SGVCOG has made significant strides in achieving financial stability. Our fund balance is anticipated to be approximately $180,000 as of June 30, 2000. These 1995 1996 1997 1998 1999 2000 Figure 5 FimdBalance funds are invested in LAW in accordance with SGVCOG's investment policy used to meet cash flow needs to the organization throughout the year. The interest income derived from these funds can be used by the Board to support various activities and issues that may be raised by our San Gabriel Valley Council of Governments 7 2000 -2001 Budget Figure 4 2000 -01 SCAG OWP Budget members during the course of the year. The interest income during the last two years was limited due to the COG's financial support of the ACE project. Now that the project has been created and funded, the interest income will increase this next year. General Operating Expenditures As shown in Figure 6, the SGVCOG has five existing contracts to support its ongoing operations programs and services. These ongoing contracts are paid from the funds collected from member dues. Funds received from our dues are allocated to support activities in one of five functional areas, as shown in Figure 7. Arroyo Associates, Inc. (AAI) AAI is responsible for the day -to -day management of SGVCOG. The firm provides staff support to the Governing Board and all committees including: Transportation, Planning Directors Technical Advisory, Public Works/Engineering Technical Advisory, Transit Restructuring and Trucking Committee, Solid Waste, Environmental Quality, Legislative, San Gabriel River and Mountains Conservancy, and Regional Housing Needs Assessment. At the time, AAI began this service, in addition to the Governing Board, there were two SGVCOG committees: City Manager Technical Advisory and Planning Directors. San Gabriel Valley Council of Governments 8 2000-2001 Budget SGVCOG Contracts Contract Allocations by Functional Areas In addition, AAI prepares and distributes meeting minutes and Board actions, conduct analysis, prepare all grant applications and staff reports; prepare, copy and distribute all correspondence and mailings, oversee and manage all contracts and projects and provide office space, utilities and all ancillary services necessary to run the Figure 8 Arroyo Budget Burke, Williams & Sorensen (BWS) day to day operations of the COG. As shown in Figure 8, that amount, which is remaining unchanged for the third year, currently provides approximately 2.00 FTE staffing level. BWS provides legal assistance to the Board in policy deliberations. A retainer agreement was executed for $3,750 per quarter or $15,000 annually for the COG's legal services. Last year provides for the legal services that were higher than budget due to the legal issues surrounding the formation of the conservancy and evaluating the alternatives to forming a new transit zone in our Valley. I do not anticipate the COG will need additional legal services this year to warrant an increase in the budget. Edwards, Eichel and Beranek (EEB) EEB is a certified public accounting firm and conducts an annual audit to ensure compliance with adopted rules and regulations. A fee of $7,000 is paid for that audit. MTA In 1997, the Governing board authorized execution of a contract with MTA to pay 50% of the staff costs involved in providing assistance to John Fasana, San Gabriel Valley MTA Board representative. The contract amount is $4,166.67 per month or $50,000 annually and is intended to be matched by an equal amount from MTA for this staff position. Hilton Farnkopf and Hobson (HF &H) HF &H was recently hired to provide analytical and advocacy support to the SGVCOG Solid Waste Committee. The firm has been instrumental in analysis of the Valley -wide survey of waste operations, and in development of a strategic work plan for the Committee. HF &H will continue to monitor legislation, represent the SGVCOG to relevant agencies, recommend policy positions and program options, and report to the Committee and Governing Board as needed. We have recommended an F'Y2000 -01 contract not to exceed $30,000. This is a new program and the budget is based on a preliminary estimate of the Committee's Work Plan for FY 2000 -2001. San Gabriel Valley Council of Governments 9 2000 -2001 Budget Should the consultant hours be higher than the estimate, we will need to identify new funding sources from our member cities to support this service. Media (Web Site, Newsletter) A major objective of the COG is to enhance the visibility and accessibility of information regarding the San Gabriel Valley and its communities. We rely on two principal mediums: newsletter and web site. The SGVCOG will continue to publish and distribute The Gabrielino Carillon three times a year in an effort to improve our communication with our organization stakeholders, which are growing each year. The editor of the newsletter is a DBE /WBE located here in San Gabriel Valley. www.SGVCOG.org, the COG's web site has proven to be a very effective communication tool in reaching stakeholders. It is continually updated with meeting information and upcoming projects. The firm that manages our web site, Digital Media, is SBE/DBE, also located here in the San Gabriel Valley as well. 2000 -2001 Goals and Objectives There are a number of objectives to be achieved by our respective committees during the coming year and each of them is important in their own right and are listed below. However, there are several objectives that due to their overarching importance need to be achieved in the next year. Listed in order of priority: Business Community Partnership — The San Gabriel Valley has approximately 60,000 businesses, who account for some 750,000 jobs. We are home to major national and international companies. Moreover, our Valley's economy is undergoing major changes with the advent of high -tech and bio -tech businesses locaiing along the 210 corridor. We are also home to many small businesses. As an organization whose mission is to unify and move forward the public sector agenda, we have achieved considerable success. However, we cannot achieve our full potential without an increased role and visibility of the business community. We are becoming stymied on a number our initiatives because of the absence of a business partner. This issue has been discussed on numerous occasions with a commitment made to help build the partnership. To date, San Gabriel Valley has been unable to build that business alliance. This last year saw the consolidation of the San Gabriel Valley Economic Partnership and the San Gabriel Valley Economic Council. This was a much needed step in the right direction. However, the highest priority must now be given to identifying and organizing key representatives of the large businesses here in the Valley who can work in partnership with the COG to secure discussed outcomes. SGVCOG has endeavored, and successfully so, to take our initiatives to regional, state and national forums. We cannot maintain that level of success on any of these endeavors unless we have an equally vocal and visible business community sitting with us at the table asking for SGV "fair share" of resources. Transportation — We have achieved many of the transportation objects that were set forth five years ago. We now need to identify and set forth our next five -year transportation goals. We have several key transportation issues that need to be addressed during the next year. We San Gabriel Valley Council of Governments 10 2000 -2001 Budget need to make sure the ACE Project continues to remain on schedule and secure the needed remaining funds. Planning for Phase II of the Pasadena Blue Line needs to commence immediately so we are able to keep building on the success of the Authority's accomplishments and ensure the completion this major transportation project out to Claremont. Completion of the 710 has been stated a priority of the SGVCOG since its inception. However, it does not appear we are any closer to having resolution of this transportation issue. Although a regional issue, the problems rests squarely in the San Gabriel Valley and the San Gabriel Valley must take a leadership position in trying to resolve this issue. Leadership Development — The San Gabriel Valley is fortunate to have many fine elected officials who seek leadership opportunities in a variety of organizations (League of California Cities, Independent Cities Association, Contract Cities Association, SCAG, AQMD, etc.). Many of our elected leaders are seasoned veterans who provide leadership on important issues not only in their cities, but in San Gabriel Valley, the entire region and State. Due to the advent of term limits and just the stress and strains of serving in public office, we are beginning to witness turnover of our elected leaders. We need to develop the next generation of elected leaders here in the San Gabriel Valley. There are a number of initiatives that provide funding to organizations such as the SGVCOG to put together an ongoing development program for both current and further office holders. I recommend the SGV establish a leadership development program for our cities here in San Gabriel Valley. This could possibly be done with SGV Economic Partnership and include business leaders in that program. Environment — Water quality has always been an issue here in SGV and will be increasingly more visible now that federal funds have been allocated to begin addressing this issue. The development of brownfield sites that are scattered throughout the Valley will become another issue that will receive increased awareness in the coming year. These issues along with air quality will dominate the discussion of the environment in the Valley during the next twelve months. Governance — SGVCOG is a joint powers agency comprised of the 30 cities in San Gabriel Valley. In addition to our cities, we have more than three dozen special districts that provide a wide variety of services to our cities. The SGVCOG has developed to the point that it should begin to seek formal recognition and ongoing dialogue with those special districts that serve our constituents as well. In addition to these major areas of focus, the following specific objectives have been identified for the coming year. Goal #1 — Enhance the recognition and political influence of the San Gabriel Valley Monitor legislation important to SGVCOG objectives and, as appropriate, take a leadership role in working with legislators. Continue strengthening our relationship with SGV representatives in Sacramento and Washington, D.C. San Gabriel Valley Council of Governments 11 2000 -2001 Budget • Host events for Senators Barbara Boxer and Dianne Feinstein. • Host our annual dinner in Washington, D.C. for federal representatives and San Gabriel Valley officials. • Host monthly briefing sessions and provide technical support and assistance to SGV elected officials serving on SCAG Regional Council and Committees. Goal #2 — Ensure the San Gabriel Valley receives its fair share of scarce federal, state and local resources to implement needed transportation improvement projects. • Ensure that SCAG's RTP update and MTA's Long Range Plan update include SGVCOG adopted high priority transportation projects. • Complete Phase II of the trucking study and develop financing plan to ensure implementation of the study's recommendations. • Support the Alameda Corridor -East Construction Authority's efforts to implement the ACE Project and work with local, state and federal officials to obtain needed funding. • Support the SGVCOG Blue Line Authority's efforts to implement Phase I by 2003 and work with local, state and federal officials to obtain needed funding. • Coordinate and support EIR update of Pasadena Phase II Metro Blue Line extension to Claremont. • Coordinate and support nine western SGV cities' transit zone application and approval by MTA. Coordinate Zone efforts with San Fernando Valley cities and legislators. • Ensure adoption of the Governor's Congestion Management Plan. Goal #3 — Enhance environmental quality for our 1.9 million residents, while safeguarding the political and economic interests of our cities. • Work with the South Coast Air Quality Management District regarding development of fleet Hiles affecting heavy duty vehicles, transit buses, school buses and waste hauling vehicles, to ensure that member cities' interests are protected as the goal of cleaner air is pursued. • Work through the SGVCOG Solid Waste Committee on behalf of member cities regarding state waste diversion mandates and other programs, and to identify and implement options for improving waste hauling services to residents. • Ensure completion of a business plan for the San Gabriel River and Mountains Conservancy, as required by law. • Participate in and provide leadership for federally funded efforts to clean up San Gabriel Valley drinking water. San Gabriel Valley Council of Governments 12 2000 -2001 Budget Goal #4 — Shape planning and economic development policies to help ensure that San Gabriel Valley cities can continue to grow in ways that maintain residents' quality of life. • Promote and assist in membership and leadership development for the San Gabriel Valley Economic Partnership. • Implement update to Cluster Analysis of San Gabriel Valley industries. Complete the 10 year Employment Analysis for the San Gabriel Valley. • Work with cities, SCAG, the BIA, the California Department of Housing and Community Development, and state legislators to develop and implement significant changes to existing law governing preparation and administration of housing programs. • Complete third Livable Communities study, including a Valley -wide workshop to share findings and distribute tools for implementing livable communities principles. Goal #5 -- Maximize participation of our member cities in the SGVCOG, and facilitate the cooperative work effort that has been the basis of our successes to date. • Host annual dinner to recognize the contributions of San Gabriel Valley Mayors, Council members and staff. • Reach out to increase participation of Temple City, County unincorporated communities, and special districts in San Gabriel Valley COG and its initiatives. San Gabriel Valley Council of Governments 13 2000 -2001 Budget Jul -05 -00 15:29 San Gabriel Valley Council of Governments Primary Government Financial Statements With Independent Auditor's Report Year Ended June 30, 1999 P.O1 n �tiO Jul -05 -00 15:30 SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS Independent Auditor's Report Financial Statements Balance Sheet Statement of Income and Fund Equity Statement of Cash Flows Notes to Financial Statements Pace 1 2 3 4 P_02 t 2 Jul -05 -00 15:30 \kl». Pik . "Ili.[. & j31,[: INDEPENDENT AUDITOR'S REPORT Members of the Governing Board San Gabriel Valley Council of Governments We have audited the accompanying primary government balance sheet of the San Gabriel Valley Council of Governments as of June 30, 1999, and the related statements of income and cash flows for the year then ended. These financial statements are the responsibility of the entity's administration. Our responsibility is to express an opinion on these financial statements based on our audit. P. 03 We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. we believe that our audit provides a reasonable basis for our opinion. A primary government is a legal entity or body politic and contains all funds, departments and activities that are not legally separate. Such legally separate entities are referred to as component unite. In our opinion, the primary government financial statements referred to above present fairly, in all material respects, the financial position of the San Gabriel Valley Council of Governments as of June 30, 1999 and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. However, these primary government financial statements, because they do not include the financial data of the component unit of the San Gabriel Valley Council of Governments, namely the Alameda Corridor East Construction Authority, do not purport to and do not, present fairly the financial position of the San Gabriel Valley Council of Governments as of June 30, 1999, and the results of its operations for the year then ended. September 30, 1999 Pasadena, California Edwards, Eichel 6 Beranek Certified Public Accountants Jul -05 -00 15:30 Sun aabriOl- Valley Council of Governments Balance sheet June 30, 1999 Assets Cash and cash equivalents, Note 2 S 322,949 Accrued interest receivable 2,144 Accounts receivable Metropolitan Transit Authority (MTA) 146,155 Southern California Association of Governments (SCAG) 117,957 Air Quality Management District (AQMD) 118,540 ' Matching contributions due from member cities 97,048 479,700 Advances to, Alameda Corridor East Construction Authority (ACE) Note 5 174,504 Equipment, net of accumulated depreciation $1308 11,882 Total Assets 5 991.179 Liabilities Accounts payable S 738.063 Fund Equity Contributed capital Capital contribution by the San Gabriel Valley Coalition, to be used for transportation studies. 19,389 Capital contribution by the San Gabriel Valley Association of Cities. 44,884 64,273 Retained earnings 188,843 Total fund equity 253.116 Total Liabilities and Fund Equity 5 991,179 The accompanying notes are an integral part of these financial statements 1 MMKOM 029 Jul -05 -00 15:31 Ban Gabriel Valley Council of Governments Statement of Income and Fund Equity Year ended June 30, 1999 Revenues Dues Transportation Air quality General fund Grants and matches from. - ot; - ier.governments Southern California Association of Governments (SCAG) grants Metropolitan Transit Authority (MTA) grants and matches Air Quality Management District (AQMD) and matching funds, member cities other revenues Total revenues Program expenses Air quality Administrative and technical Transportation Air Quality Management District grant Southern California Association of Governments grants Metropolitan Transit Authority grant Other Administrative expenses(note 3) ' Total expenses Net income from operations Non - operating income Interest income Net income for the period Fund equity at the beginning of the period. Fund equity end of the period 143,000 39,000 212,800 261,628 211,884 632,146 19,458 The accompanying notes are an integral part of these financial statements 2 $179,274 177,536 61.250 418,060 203,577 728,889 256,989 9,350 1,616,895 1,519,916 56,798 1,576,714 40,151 10,718 50,869 202,247 5 253,116 P.05 Jul -05 -00 15:31 San Gabriel Valley Council of Governments Statement of Cash Flows Year ended June 30, 1999 Cash flows from operating activities Net income from operations S 40,151 Adjustments to reconcile net income from operations Depreciation 3,093 (Increase) in receivables (196,383) (Increase) in accrued interest (1,150) Increase in accounts payable 611,470 Advances to the Alameda Corridor East (ACE) Construction Authority 1174,5041 Net cash provided by operating activities 282,677 Cash flown from investing activities Interest income 10,718 Cash flows from capital activities Purchase of equipment (6,552) Net increase in cash and cash equivalents 286,843 Cash and cash equivalents at the beginning of the period 36,106 Cash and cash equivalents at end of the period S 322,949 The accompanying notes are an integral part of these financial statements 3 :; 31 Jul -05 -00 15:31 San Gabriel Valley Council of Governments Notes of Financial Statements June 30, 1999 Note 1 Summary of Significant Policies Organization and activities P.07 The San Gabriel Valley Council of Governments (the COG) was created effective March 17, 1994 by a joint powers agreement among the various member San Gabriel Valley Cities to promote cooperation, exchange ideas, coordinate regional government programs and to pruvide recommendations and solutions to problems of common and general concern to member govei:nments. It is the immediate successor to the San Gabriel Valley Association of Cities, an unincorporated association. Its members organized the COG because they recognized a need for a more permanent and formalized structure. The COG is supported by contributions from its member cities and also receives grant funds to conduct regional studies on Transportation, Air Quality, Environment Matters, as a sub grantee of other governmental entities. The COG is a non - profit California Public Agency; thus it is tax exempt. The Reporting Entity These primary government unit financial statements do not include the capital project fund of the component unit, Alameda Corridor East Construction Authority. Basis of Accounting The accounting records of the COG are maintained on the accrual basis of accounting. Cach and Cash Eouivalents The COG considers money market funds and all equivalent liquid debt instruments purchased with a maturity of 3 months or lees to be cash equivalents. Grant Funds and Accounts Receivable The COG is the recipient of state grant funds through regional agencies, the Air Quality Management District, AQMD, the Metropolitan Transit Authority, MTA, and the Southern California Association of Governments (SCAG). The MTA grant for local transportation requires 20 per cent participation by the COG. The SCAG grant requires only support for expenditures reimbursed. Accounting for Federal and State grants generally calls for recognition of income from grant funds only as those funds are obligated or paid out. 4 J3 Jul -05 -00 15:31 San Gabriel Valley Council of Governments Notes to Financial Statements Note 1 Summary of Significant Policies (cont.) �* Z All receivables relate to expense reimbursements from governmental agencies and are expected to be fully collectible. Accordingly, an allowance for doubtful accounts Is not provided. Proprietary Fund Tunes Proprietary funds are accounted for using the economic measurement focus; the accounting objective Is determination of net income. All assets and liabilities of a proprietary fund activity are included on its balance sheet. Proprietary fund capital is segregated into contributed capital and retained earnings. K ... _ _•�.. �u =� office Equipment is carried at historic cost. Depreciation Is provided using the straight -line method over the individual asset's estimated useful life, usually five years for computers, copiers and other electronic equipment, ten years for cabinets, desks and furniture. Use of Estimates The presentation of financial statements in conformity with generally accepted accounting principles requires the use of estimates in many areas. Estimates used in these financial statements relate primarily to fixing estimated useful lives to depreciable assets. Based upon the preceding information, estimates may not have a material effect on these financial statements. Note 2 Cash and Investments Under provisions of the California Government Code (Code), the COG is authorized to invest in: A variety of federal and state treasury obligations (including local California agencies) Obligations or other instruments of or issued by a federal agency or government sponsored enterprise Bankers' acceptances which are eligible for purchase by the federal reserve system (subject to certain limitations) Prime quality commercial. paper (subject to certain limitations) Negotiable certificates of deposit issued by nationally or state chartered banks, savings and loan associates and credit unions 5 J 3 3 Jul -05 -00 15:32 San Gabriel Valley Council of Governatnote Notes to Financial Statements Note 2 Cash and Investments (cant.) �sZ-7 Repurchase agreements or reverse repurchase agreements of any securities authorized by the Code. Cash and investments at year -end are categorized as follows to give an indication of the level of credit risk assumed. Catecory 1 Insured and registered or collateralized securities held by the COG or its agent in the COG's name. Category 2 Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the COG's name. category 3 Uninsured and unregistered with securities held by the counterparty or by its trust department or agent but not in the COG's name. At June 30, 1998 the net carrying amount of cash was $153,382 on deposit with a bank, category 1. (Balance per the bank to conform to Federal Deposit Insurance requirements, $194,746, exceeded the FDIC coverage by $94,746). Investments consisted of $169,567 deposited with the Local Agencies Investment Fund, LAIF, an instrumentality of the State of California, and is not categorized. GASB 31 requiring market value reporting of short term investments became effective for years ending June 30, 1998. The COG at June 30, 1999 was invested only in. the Local Agencies Investment Fund (L.A.I.F.) a fund administered by the treasurer of the State of California. Market value so closely approximates cost that the difference is minor. Accordingly, management has elected to continue to carry investments at cost. 6 ')3<; Jul -05 -00 15:32 P.10 San Gabriel Valley Council of GoternMOnts Notes to Financial Statements Note 3 Administrative Expenses The following were the administrative expenses incurred for the audit period, unallocated to grant revenues. office supplies and expense S 4,308 Graphics 2,251 Newsletter 4,425 Conferences 4,403 Legal 22,546 Audit 6,700 Insurance 2,499 Depreciation 3,093 Internet services 1,241 Education 3,750 Dues & subscriptions 622 other 960 Total 556"798 Note 4 Note 5 Year 2000 Tha year 2000 issue is the result of shortcomings in many electronic data processing systems. and other electronic equipment that may adversely affect a government's operations. The COG basically uses "off -the shelf" software in its computer processing and uses the latest updates available. Accordingly, assuming its vendors update their software to be year 2000 compliant the COG will not encounter year 2000 problems in its information processing. However, its sources of funding are individual cities and regional agencies whose funds are obtained from the state of California. These outside agencies failure to be year 2000 compliant could impact the COG'• ability to operate. Because of the unprecedented nature of the Year 2000 issue its effects and the success of related remediation efforts will not be fully determinable until the year 2000 and thereafter. Management cannot assure the COG Is or will be Year 2000 ready, that the COG's remediation efforts will be successful in whole or in part, or that parties with whom the COG does business will be year 2000 ready. Alameda Corridor East Construction Authority (ACE)(COmponent unit) Because of the sire and scope of activities involving the Alameda Corridor East Project, a separate joint powers authority was set up for this purpose, which while affiliated, will act separately from the COG. The JPA became operative in October 1998 and is empowered to conduct business, hire the , consultants and contractors, enter into contracts and agreements and to issue debt instruments as needed. 7 3, Jul•. -05 -00 15132 4 ' San Gabriel Valley Council of Governments Notes to Financial Statements Note 5 (cont.) P.11 The ACE Authority was in its nascent stage until after June 30, 1999, the COG paying its expenses. In August of 1999 the COG borrowed $2,000,000 from the City of Industry with a pledge of the proceeds of the grants and loans of the grants outstanding. The note is to mature no earlier than 18 months after issuance, no later than 36 months. Prepayment requires five days notice and interest is not to exceed the LAIF interest rate. Loan proceeds are deposited into a segregated account and may only be disbursed as directed by the chief executive._,of -the ACE.Authority or the treasurer of the COG. 8 Councilman Bruesch asked if the monthly administrative fee comes out of ititerest earned from the account Don Wagner, Assistant City Manager, responded that it does not, that the administrative fee is a flat fee rather than a percentage of the assets over the years. Mr. Nunez questioned if the employees contribute anything to this plan? Mr. Wagner responded that the City pays the contributions, but this is not a pot plan such as PERS. The employee has.to work for the City a minimum of 10 to 20 years and retire from the City. Councilman Taylor pointed out that Rosemead has a history of not having a large turnover in employees. Mayor Clark clarified that the reason employees stay is not necessarily just for the benefits, but that we have a quiet City and everyone seems to get along. Councilman Brulesch stated that the PIERS retirement system has a 3% COLA increase yearly, and that the Consumer Price Index goes up approximately by 4 %. Mr. Bruesch calculated that every year our retired employees are losing 1% of their buying power and alter 10 years that would be 12% loss, and at 20 years it would be a 25% loss. Therefore, the 60% salary at retirement would leave the employee with only 35% of their buying power. Mr. Bruesch staled that he is concerned with retired employees being able to maintain their standard of living and feels that with PARS, this will allow that. Mayor Pro Tent Imperial called for the question Vote resulted: Yes: Bruesch, Clark, Vasquez, Imperial No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. Coucilman Taylor slated that his comments were not against any employees, but feels that this is an excessive amount Mayor pro Tent Imperial staled that for 5 years employees only received a COLA increase and that the employees were loyal enough to stay, and now they will be offered a benefit that will mean more in the long run than salaries. Mayor Clark pointed out also that during the recession of 1992 and 1993, raises were not given. The following item was taken out of order in deference to those is the audience. TV. CONSENT CALENDAR 0 0 -A IMNEWAL, OF MEA'IBERSI:II.P IN THE SAN GABRI.EL VALLEY COUNCIL OF GOVERNMENTS MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCTLMAN BRUESCH that the Council authorize the renewal of membership in the San Gabriel Valley Council of Governments. Vote resulted: MUN:7 -1 I -0a Page H4 "y Yes: Bruesch, Taylor, Clark, Vasquez, Imperial No: None Absent: None Abstain: None 1'he Mayor declared said motion duly carried and so ordered. r 1). RESOLUTION NO. 2000 -41 — ESTABLISHING A MONTHLY AUTO J EXPENSE ALLOWANCE FOR COUNCILMEMBERS Councilman Taylor asked why the Council cannot turn in a mileage form and be reimbursed from that. MOTION 13Y COUNCILMAN BRULSCH, SECOND BY MAYOR PRO TLM IMPERIAL that the Council adopt Resolution No. 2000 -41. Before vote could result, more discussion ensued. Robert Kress, City Attorney, explained that this is not a mandatory program, but is meant to address the day -to -day personal automobile use in the course of City business, for attending such meetings as the monthly regional organizations. Mayor Clark explained that the Councilmembers that do a lot of driving, the monthly reimbursement is an easier procedure than logging and turning in mileage sheets every time a business trip is taken. Ms. Clark continued that she usually attends one or more meetings daily and this would simplify that process for Councilmembers and staff. Ms. Clark added that if a Councilmember does not want to accept the allowance, they do not have to. Councilman Bruesch slated that he maintains a trip mileage log for income tax purposes and last year those expenses added up to about $1,000. Mr. Bruesch agreed that the monthly allowance is much more direct method and eliminates a lot of extra record keeping. Juan Nunez, 2702 Del Mar, Rosemead, slated that the mileage voucher system provides proof of mileage rather than a monthly allowance would. Mr. Nunez then asked what the Council salary is. Mayor Pro Tern Imperial stated that he does not request mileage reimbursement except when he drives and parks his vehicle at the airport. Mr. Imperial agreed that if a Councilmember does not want this allowance they can give it back or give it to charity. Councilman Taylor stated that he has no objections to Councilmembers being reimbursed; however, the mileage Corm is the most accurate way tracking this. Mr. Taylor stated that many of the Councilmember spend many hours on City business and that it is outrageous to think that any of the Councilmembers are in this job for the money. Vote resulted at this time Yes: Bruesch, Clark, Vasquez, Imperial No: Taylor Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. Councilman 'Taylor stated for the record that reimbursement of mileage should be for actual miles driven. IV. CONSENT CALENDAR CC -11 SHOPPING CAITI' RETRIEVAL PILOT PROGRAM CCNIIN - 7 -1 I -00 Pnge 115 Councilman Taylor asked what the City is paying in retrieval fees and that markets already have a service that provides this. Don Wagner, Assistant City Manager, responded that the carts picked up are "orphan' carts, or carts with no identification on them. Bill Crowe, Administrative Services Coordinator, explained that every cart will be picked up and returned to the shopping center or store where they belong. Mr. Crowe continued that the carts that do not have proper identification will be picked up and stored. The City will be charged approximately $70 -$100 a month for about 60 -70 "orphan" carts picked up. Mr. Crowe stated that those carts will be recycled and the City will receive credits toward the City's . recycling program. MOTION BY COUNCILMAN TAYLOR, SECOND BY COUNCILMAN VASQUEZ that the Council direct the City Manager to lake the necessary steps to continue the shopping call retrieval program pilot and authorize the expenditure of funds on a month -to -month basis for services. Before vote could result, more conversation ensued. Juan Nunez, 2702 Del Mar, Rosemead, asked if there is a State code section that pertains to cart removal from the premises. Councilman Bruesch stated that there is. Mr. Bruesch explained that prior to this program, shopping carts with no identification (i.d.'s filed off, etc.) were not picked up as ownership could not be proven, they remained on the streets. Mr. Bruesch continued that with this program, the carts can be picked up and recycled, the City is charged a nominal fee and receives recycling credits. At tNs lime vole resulted Yes: Bruesch, Taylor, Clark, Vasquez, Imperial No: None Absent: None Abstain: None The Mayor declared said motion duly carried and so ordered. V. MATTERS FOR DISCUSSION AND ACTION - None VI. STATUS REPORTS -None VI.I. MATTERS FROM OFFICIALS Mayor Clark thanked everyone who worked on the 4 i1i of July Parade. VIII. O.RAI, COMNIUNICA7'IONS FItOM TII E AUDIENCE - None IX. ADJOURNMENT There being no further action to be taken at this time, the meeting was adjourned at 9:12 p.m. in memory of Joe A. Gonsalves, the City's long -time lobbyist. The next regular meeting will be held on Tuesday, July 25, 2000, at 8:00 p.m. Respectfully submitted: APPROVED: City Clerk MAYOR CCAiIN:7 -11 -00 Pnge H6