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HomeMy WebLinkAbout04b. Minutes - 06-09-10 Regular Mtg - Comm. Dev. Commission Adjourned MINUTES OF THE CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING JUNE 9, 2010 The City Council of the City of Downey held a Regular Meeting at 4:05 p.m., June 9, 2010, in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California, Mayor/Chairperson Anne M. Bayer presiding. PRESENT: Council Members/Commissioners: Anne M. Bayer Mayor/Chairperson Luis H. Marquez Mayor Pro-Tem/Vice-Chairperson Roger C. Brossmer (arrived 4:08 p.m.) David R. Gafin Mario A. Guerra ALSO PRESENT: Gerald M. Caton, City Manager/Executive Director Gilbert Livas, Assistant City Manager Desi Alvarez, Deputy City Manager/Special Projects Mark Sauter, Deputy City Manager/Emergency Services Scott K. Pomrehn, Assistant Deputy City Manager Rick Esteves, Police Chief John Michicoff, Finance Director Thad Phillips, Community Services Director Brian Ragland, Public Works Director Brian Saeki, Community Development Director Jeff Turner, Fire Chief Susan Domen, Deputy City Clerk Other City Staff Flag Salute The was led by John Michicoff, Director of Finance. BUDGET STUDY SESSION 1. PRESENTATION AND DISCUSSION OF FISCAL YEAR 2010-2011 PROPOSED CITY/COMMUNITY DEVELOPMENT COMMISSION BUDGET. City Manager/Executive Director Caton started the presentation by noting that this has been a difficult budget to prepare. The original submittals were $15 million over budget and staff was asked to make reductions. The proposed budget is still $6.5 million over, however with the hiring and purchasing freeze currently in place this will save $2 million leaving a deficit of $4.5 million. He explained that over 70% of the General Fund is allocated to the Police and Fire Departments and that they would be affected by budget cuts this year. He stated that the City is fortunate that it has a regional shopping center and touched by 9 cities with ½ million in population that shop and use services in Downey. The local mini economy is close to what was seen in the Great Depression and he does not feel that a turn around will be seen in the next 2 years. In the last 3 years we have lost over $1 million in revenues therefore purchasing has been held to a bare minimum, a hiring freeze has been enforced with over 8% of positions vacant and rising to 10% by the end of the year while keeping the quality of service at a high level. He said there are asking the Police Department to City Council/CDC Agenda 06/09/10 defer their scheduled salary increase for one year, are releasing all contract employees, which will impact services, reducing the number of allotted Police Officers to 118 from 125 and reviewing more options throughout the summer. Finance Director Michicoff explained that the total proposed budget is $147,486,765 million which is down $1.1 million from last year. 68% is the Operating Budget and 32% is Capital Projects and Equipment. There are 3 types of funding: General Fund 46%, Enterprise Funds 18%, and Special Revenues 36%. He noted that the Southeast Area Animal Control Authority (SEAACA) is being moved from the Police Department to the City Manager’s Office for the purpose of contract monitoring. Council Member/Commissioner Guerra asked if the $330,000 allocated to SEAACA is an in and out number and it was explained that the $330,000 is the annual spending for the services; however the dog license and penalty fees offset approximately 95% of the expenses. Finance Director Michicoff continued noting that the General Fund budget being proposed is $67,909,933 which is broken up as follows: Police 46%, Fire 25%, Community Services 10%, General Government 9%, Public Works 7% and Development Services 3%. The General Fund revenues estimated are $59,934,397 which comes from Property Taxes 34%, Sales Tax 19%, Other Taxes 19%, Service Fees 9%, Interest and Rent 6%, Permits and Fees 5%, Intergovernment 4% and Other 4%. He noted that Sales Tax revenues were highest in 2006/2007 and has steadily declined due to State raiding funds with the triple flip which was supposed to be back filled over time. The State; however, is using calculations that will not return all funds taken. He explained that since 2008/2009 our expenditures have been exceeding revenues, Sales Tax has decreased and Permit Fee revenue has been decreasing. The budget issues include: General Fund revenue decline, General Fund cost containment, State budge deficit, economic recovery and opportunities and challenges. While revenue concerns include: General Fund down 9%, taxes down 10%, fines and forfeitures down 13%, charges for services down 6%, golf course revenues down 7% and water utility revenues down5%. He continued that this is a time of fiscal uncertainty with the lingering State deficit of $19.1 billion, the deferral of Gas Tax revenues until April 2011; economic recovery duration; auto dealership closures; property taxes as housing market stabilizes; Water Fund operations; and equipment replacement. With all of these cuts service levels are affected: labor agreements, modified hiring freeze for non-critical positions, maintain expected service levels, minor reduction to available programs, expand sanitary sewer maintenance, and eliminated contract Building Inspectors. The opportunities and challenges are: economic stimulus funds and other grants of $17.3 million, $45.6 million in Capital Projects (streets, sewer, Redevelopment Agency), Downey Regional Medical Center, Downtown Specific Plan; third year that most requests for new programs denied or deferred, status of water system, attracting new businesses and retaining existing, loss of auto dealerships and the theatre operation. Finance Director Michicoff reported that the Finance Department Budget is $4,002,894 with $2,902,894 coming from the General Fund. There are 23 full time employees and 1 part time staff member with the change of moving a Computer Operator II position from the Library to Finance. The budget is broken down as follows: Accounting and Administration $1,748,994, Risk Management $1,100,000, Information Technology (IT) $685,883, Purchasing $283,017 and Parking Tickets $185,000. The goals and accomplishments for the department are: monitor Other Post Employment Benefits program (OPEB), managed over 80 civil claims and summons, IT now responsible for most software maintenance and costs (Eden, Accela, Laserfische, etc.), consolidate IT resources for improved service, increased audit requirements for Recovery Act grants (4), test and implement new sewer rates, Purchasing Manager vacancy, Budget Analyst vacancy, Independent Cities Risk Management Association treasurer, and a Standard & Poor’s credit rating. City Manager Caton noted that Director Michicoff is undefeated in Small Claims court cases. City Council/CDC Agenda 06/09/10 Council Member/Commissioner Guerra noted we spend $352,000 per year for the collection of Property Taxes and asked if it should be reviewed to make sure that we are getting the best service and best rate and was told that the company is one of the best for this service; however, the $352,000 charged by the County has no rationale and is determined by the County. Deputy City Manager of Emergency Services Sauter stated that the objectives for 2009/2010 are: adopt a team approach for City operations, improve City staff training, improve emergency preparedness of community members, and increase the use of volunteers for emergency preparedness and community activities. The accomplishments for 2009/2010 were: City staff operations, training, community preparedness, volunteer efforts, presentations and community issues. He noted that a member from each department meets monthly to plan and prepare for events, non emergency and emergency; a Great Shake out event; prepared emergency safety articles for the Downey Patriot; held Emergency Preparedness Fairs at various community events; improved relationship with the American Red Cross; started storing supplies at the Water Yard; increased the activities of the Emergency Preparedness Committee- holding an event almost 1x per month along with the CERT group; and reaching out to Neighborhood Watch groups. He concluded that the objectives for 2010/2011 are: to implement a new Mass Notification System, complete City Emergency Operations plan, improve community emergency preparedness, and start Neighborhood Watch block captain training. Council Member/Commissioner Guerra asked how many residents signed up for the water drums and was told that 620 people had filled out cards to date. Police Chief Esteves explained that the proposed budget is $30,787,933 broken down as follows: Field Operations 50%, Detectives 18%, Administration 14%, Other 16% and Code Enforcement 2%. Reductions being taken are: 2 Records Specialists for $112,442, 3 cadets for $90,000, radio infrastructure for $543,651, 5 police cars for $242,500, 1 Police Assistant truck for $34,700, 1 police motorcycle for $30,500, 6 Police Officers for $726,000, 1 Dispatcher/911 Operator for $68,665, prolonging acquisition of the license plate reader for $126,000, 4 detective vehicles for $136,000, and 1 Forensic Specialist for $85,463. He concluded that the overall impact will be fewer Police Officers on the street (decreased police visibility), fewer Police Dispatchers, Forensic Unit reduced 25% (delayed crime scene responses serving officers detectives and citizens), radio infrastructure will not meet federal mandates (radio equipment must be compliant by 2013, many existing radios are not narrow band capable), and higher mileage on existing vehicles (increased repair costs, more down time for existing vehicles). Council Member/Commissioner Guerra questioned if the overtime is being caused by the 12 hour workday schedule and was told no, that there was a special Robbery Suppression Team that concluded in March that caused the increased overtime. He then asked how the funding for the Neighborhood Preservation program is handled since it was transferred to the Housing Division and was told that half of the funding comes from Community Development Block Grant Funds and the Neighborhood Watch Program Fund. Council Member/Commissioner Brossmer noted that the number of cases closed for Code Enforcement is down and questioned if that was a good sign and was told yes because the numbers reflect the distressed, foreclosed properties being handled by the banks and they have been taking a more proactive approach on illegal sign issues. nd City Manager Caton noted they should be very proud that the department is the 2 in the State to have Code Enforcement under their jurisdiction. Council Member/Commissioner Gafin asked where the funding and cost for the drug sniffing City Council/CDC Agenda 06/09/10 dog is located and was told that the $15,000 will come out of Asset Forfeiture funds. recessedreconvened The meeting at 5:28 p.m. and at 5:37 p.m. with all Council Members/Commissioners present. Fire Chief Turner explained that the department’s priorities are: life saving, property conservation, protecting the environment, reducing injuries and suffering. These things are accomplished through quick response, well trained personnel, well equipped personnel, physically capable/healthy personnel, good communications, fire prevention enforcement, community education and awareness and coordinated efforts of other City departments. There are 3 vacant firefighter positions. He continued explaining that the proposed budget is $17,080,449, a 1.8% drop from 2010 and 3% from the 2008 and 2009 budgets. 91%of the total budget is personnel cost and 92% of budget costs go directly to emergency response. They are expecting $3,166,396 in revenues. He concluded that the 2011 primary goals are: increase professional development and leadership training for all personnel, conduct firefighter recruitment to establish certified list, implement tiered dispatching, continue to pursue grants and other opportunities to improve safety and service delivery, select a new Fire Chief and facilitate smooth transition and the long term goals are to continue to pursue alternative funding to replace or refurbish all Fire Department facilities to meet current/future needs and industry standards. Council Member/Commissioner Guerra noted there is a cutback in the overtime for Fire Suppression and asked why overtime is still at $300,000. It was explained that it is in line with previous year and is due to minimum manning requirements for safety reasons and that workers compensation claims should go down this year. Council Member/Commissioner Brossmer asked if it would be more cost efficient to fill positions instead of minimum manning. It was explained that more employees would also be susceptible to being sick and incur training expenses. City Manager Caton stated that it could be reviewed. Council Member/Commissioner Guerra asked if the personnel at the movie studios is an automatic pay back and was told yes. He noted that it would be easier to understand the budget if revenues and expenditures were listed together. He then asked what would be the effects from a safety point if minimum manning didn’t occur and was told that if the City went down to 3 Fire Stations it wouldn’t be as safe for the citizens and they would need to be moved to different locations. Council Member/Commissioner Brossmer asked what if there were EMT’s at all stations and only trucks at 2 what the effect would be and was told that it would increase danger to the citizens. Public Works Director Ragland noted that there budget is divided into 4 divisions: Engineering $36,827,424, Utilities $14,722,053, Maintenance Services $6,618.317, and Administration $574,044. The Capital Projects Program funding is $35,413,514, which comes from taxes, grants and fees. He noted the accomplishments and objectives are as follows: Administration – revised and managed the Construction and Demolition Ordinance, established the Regional Smart Gardening Information Center and Composting Demonstration site, produced the 2010 Used Oil Recycling and Water Pollution Prevention calendar, increased community volunteerism by 350%, complete the final release from the State’s Solid Waste Diversion Compliance order, and initiate Stormwater Pollution Prevention programs in ASPIRE and the Downey Unified School District classrooms; Engineering- completed pavement rehabilitation on 4 arterial/collector and 22 residential street segments, began construction on the Imperial Highway Traffic Throughput and Safety project-Phase 2, replaced 29,000 square feet of sidewalk, 11,000 linear feet of curb and City Council/CDC Agenda 06/09/10 gutter and constructed 15,000 square feet of new sidewalk, 100 new disabled ramps, issued over 6,000 permits, completed 2,200 plan checks, served 3,100 requests over the counter, implemented 2009 Publication Vending Machine (News Rack) Ordinance, complete Imperial Highway Traffic th Throughput and Safety Enhancements project-Phase 2, complete Lakewood Boulevard between 5 Street and Florence Avenue, complete pavement rehabilitation on Paramount Boulevard Phase 3A project and Downey Avenue, complete pavement rehabilitation on 23 residential street segments, complete the Paramount Boulevard and Florence Avenue Fiberoptic Traffic Signal Communication projects; Maintenance Services – removed 674,800 square feet of graffiti, removed overgrown shrubs on Angell Street along I-105 sound wall to eliminate public nuisance and reduce maintenance, renovated athletic turf at Discovery Sports Complex by “Drill and Fill” method, Florence Avenue from Pangborn Avenue to Newville Street-replaced dying oleander screen planting with drought tolerant native shrubs and trees, Rio San Gabriel Park-replaced overgrown screen plantings on north and west perimeter with drought tolerant native plants, increase renovation efforts on heavily distressed sports turf in City parks, remove diseased oleander screen plantings and replace with drought tolerant native plants; Utilities – completed and certified Sanitary Sewer Management Plan, completed Sewer Master Plan, refurbished 5 groundwater wells, lead Total Maximum Daily Load (TMDL) response and implementation for the Los Cerritos Channel, Rio Hondo, Los Angeles and San Gabriel Rivers, approved approximately 200 projects with a combined infiltration volume of nearly a quarter million gallons for a normal year, complete Water System Master Plan, video inspect 40,000 feet of sewer pipe and perform 7 to 10 sewer main repairs/replacements, complete design of a new well and sewer lift station project and complete Urban Water Management plan. He noted that upcoming challenges and impacts are: Engineering-2 unfilled Engineer positions, potential loss/deferment of Gas Tax revenue, minimize deterioration of infrastructure; Maintenance Services – 2 unfilled workers in Street section and an unfilled worker in the parks maintenance section. Council Member/Commissioner Guerra noted there is $26 million in capital improvement projects for fixing streets, etc. and where the $2.8 million for Firestone Boulevard comes from and it was explained the City was given funding to take care of Firestone Boulevard when we took it over and this is the remaining funding. He also stated that along Lakewood Boulevard there are more than 35 uplights burned out in the medians. Community Services Director Phillips noted that their reductions would be: the fishing event $2,238, egg hunts $1,534, middle school dances $2,058, skate competition $527, Downey Unified School District lunch program staff $1,470, Winter Wonderland $5,843, Family Fun Night $1,852, and financial aid to the Downey Symphony and the Downey Rose Float Association by $2,000, ushers for Downey Civic Light Opera $2,000, closing the Library on Sundays, cutting the library materials by $50,000 and closing the Library 1 hour earlier Monday thru Thursday. Mayor/Chairperson Bayer asked for clarification of why there was still funding for the Rio Hondo Temporary Home when it shut down last year and it was explained that they had not closed as they received a reprieve by the State. Community Development Director Saeki stated that proposed reductions are: Planning $168,681, Building and Safety $293,962, and Housing $570,000. There will be an increase in Economic Development of $1,220,857 for a total budget increase of $188,214 with a saving to the General Fund of $462,708. He listed accomplishments for the past year as: Tierra Luna Specific Plan Environmental Impact Report circulated, Tesla project attraction, negotiation and processing, Porto’s Owner Participation agreement, the opening of Johnnie’s Broiler project, the opening of the Fresh & Easy store, Dine in Downey program, Kohl’s at Stonewood Mall opening, BJ’s Restaurant at Stonewood Mall opening, the Verizon project readied for approval, Economic Development program implemented, i.e. marketing materials, opportunity sites, and website update. He noted the City Council/CDC Agenda 06/09/10 upcoming goals are: to implement a reorganization of the department, complete the Downtown Specific Plan and EIR, complete the Downey Gateway project, secure financing for the Verizon Housing project, establish a Business Improvement District in downtown, implement the 2010 California Green Building Code, expand Economic Development programs i.e. marketing and business appreciation/retention, secure high quality retailers at key opportunity sites, facilitate reuse and redevelopment of the Avenue Theater, secure HUD Section 108 Loan for Apollo park and shuttle mock up, and complete the Zoning Code cleanup/update. Council Member/Commissioner Brossmer stated that he is a big fan of the Senior Paint Fix- up program but questioned the efficiency of 6 full time workers only completing 30 homes at the cost of $500,000. It was explained that the Federal rules regulating the program drives up costs as does the lead abatement. He asked that it be reviewed to see if there is any room for improvement. Council Member/Commissioner Guerra clarified that the funds for the Dodge dealership loan is Redevelopment funds and not General funds. Council Member/Commissioner Brossmer asked for clarification on what the golf course nets annually and it was explained that annually $500,000 of the proceeds go towards running the Barbara J. Riley Community Center and that it will lose approximately $160,000 this year due to $121,000 in capital equipment and $55,000 in repair to the greens. He then asked what the actual loss is on the theater to which Community Services Director Phillips responded that in fiscal year st 2008/2009 the actual was a loss of $406,626 and this year through May 1 is $155,121 due to a position being eliminated and noting that this amount also includes staff time for community events. Finance Director Michicoff also clarified that the loss over the past 3 years is over $1 million and City Manager Caton explained that the division manager position had been eliminated as well. Council Member/Commissioner Guerra questioned why the charges for the City Council Chambers video streaming service comes out of the City Council budget and not from the Public Information budget. It was explained that Public Information has no funding specifically, however the line item could be moved to another account even though there would be no impact to the final budget. He then asked for an explanation for the Redevelopment Debt Service listed on page 447. It was explained that the City would not be able to draw upon property taxes collected by the County for redevelopment projects, unless the Redevelopment Agency carries a debt. City Manager/Executive Director Caton noted that he is bringing up the idea of the City taking over the Oasis program for Harold Tseklenis as he had to leave. Larry Lewis, representative from Downey Symphony, noted his disappointment with the cut, but is appreciative of the support received over the years. Council Member/Commissioner Guerra requested that the Council Travel Budget item be combined back into 1 whole item, instead of broken out per Council Member and City Manager Caton explained that they split it up in last year’s budget due to Council request but it can be changed back. Mayor/Chairperson Bayer stated that the Council should lead by example, since the rest of the City is being asked to make cuts in their budgets, the Council should be doing so as well and questioned what the $4,000 for Sister Cities was and if it could be cut. Council Member/Commissioner Guerra responded that the Council had spent $11,000 less than was budgeted this year so far. It was moved by Council Member/Commissioner Guerra, seconded by Mayor Pro Tem/Vice- combine the Chairperson Marquez and carried, noting the dissent of Mayor/Chairperson Bayer, to City Council/CDC Agenda 06/09/10 City Council travel allowances into one line item instead of split out amongst the Council Members individually. Council Member/Commissioner Gafin stated that it doesn’t matter how the money is delegated, the information of who spent it is still available to anyone wishing to do the research. NON-AGENDA PUBLIC COMMENT: No one came forward to speak. ADJOURNMENT: To 6:30 p.m., June 22, 2010. The meeting adjourned at 7:08 p.m. to 6:30 p.m., June 22, 2010. ___________________________________ ____________________________ SUSAN M. DOMEN, Deputy City Clerk ANNE M. BAYER, Mayor City Council/CDC Agenda 06/09/10