TO:
Honorable Mayor and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Clay J. Curtin, Senior Management Analyst
SUBJECT:Title
Audited Financial Statements and Management Report of the South Bay Regional Public Communications Authority for the Year Ended June 30, 2012.
RECEIVE AND FILE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council receive and file the attached audited financial statements and management report of the South Bay Regional Public Communications Authority for the year ended June 30, 2012.
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FISCAL IMPLICATIONS:
There is no fiscal impact associated with this action.
BACKGROUND:
The South Bay Regional Public Communications Authority is the regional 911 emergency communications and dispatch center for the City of Manhattan Beach, including the Police and Fire Departments. It is a joint exercise of powers authority created under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California. It was formed by the cities of Manhattan Beach, Gardena, and Hawthorne by execution of a Joint Powers Agreement on November 4, 1975.
The South Bay Regional Public Communications Authority (also referred to as the "RCC" for Regional Communications Center) is currently owned by the Cities of Gardena, Hawthorne, and Manhattan Beach while also providing communications services under contract to the cities of El Segundo and Hermosa Beach. The RCC processes approximately 250,000 police and fire incidents annually in the South Bay region.
Under the Amended and Restated Joint Powers Agreement effective April 2001, the South Bay Regional Public Communications Authority is required to make its audit report available within twelve months following the end of its fiscal year.
DISCUSSION:
Charles Fedak and Company, the South Bay Regional Public Communications Authority's independent auditing firm, completed the audit of the Authority's fiscal activities for the year ended June 30, 2012, and issued the Authority's financial statements for the period.
The auditors have rendered an unqualified opinion on the Authority's financial statements for the year ended June 30, 2012. In their opinion, the financial statements present fairly, in all material respects, the financial position of the Authority as of that date, and the respective changes in financial position and cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America and the State of California.
The Authority ended the fiscal year with net assets of $9.7 million, a decrease of $604,723 from the prior year. Approximately $1.6 million of the net assets is unrestricted and $8.1 million is invested in capital assets. Of the unrestricted net assets, $776,266 is designated as an operating reserve. In addition, $250,000 has been set aside as a reserve for funding the other post-employment benefits liability; $50,000 has been appropriated in the current year's budget to fund the Gardena and Hawthorne Public Works frequency upgrades due to an urgent need to complete the upgrades. The remaining balance for future appropriations is $369,976.
CONCLUSION:
Staff recommends that the City Council receive and file the attached audited Financial Statements and Management Report of the South Bay Regional Public Communications Authority for the Year Ended June 30, 2012.
Attachments:
1. SBRPCA Annual Financial Report
2. SBRPCA Management Report