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HomeMy WebLinkAbout04a. Minutes - 06-07-11 Joint Adjourned Meetings MINUTES OF THE CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOWNEY JOINT ADJOURNED REGULAR MEETING JUNE 7, 2011 The City Council/Community Development Commission of the City of Downey held a Joint Adjourned Regular Meeting at 4:07 p.m., June 7, 2011, in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California, Mayor/Chairperson Luis H. Marquez presiding. PRESENT: Council Members: Luis H. Marquez Mayor/Chairperson Roger C. Brossmer Mayor Pro Tem/Vice-Chairperson David R. Gafin Mario A. Guerra Fernando Vasquez ALSO PRESENT: Gerald M. Caton, City Manager/Executive Director Gilbert Livas, Assistant City Manager Yvette M. Abich Garcia, City Attorney/Agency Counsel Shannon DeLong, Assistant to the City Manager Rick Esteves, Police Chief John Michicoff, Finance Director Thad Phillips, Community Services Director John Oskoui, Public Works Director Brian Saeki, Community Development Director Lonnie Croom, Fire Chief Shirley Conte, Chief Deputy City Clerk Other City Staff BUDGET STUDY SESSION 1. PRESENTATION AND DISCUSSION OF FISCAL YEAR 2011-2012 PROPOSED CITY/COMMUNITY DEVELOPMENT COMMISSION BUDGET. Flag Salute The was led by Finance Director John Michicoff. City Attorney/Agency Counsel Abich Garcia announced a Closed Session item was added to the Agenda to be discussed after the Budget Study Session. She explained the City Council may add an item if it finds, by a four fifths vote, that the item came to the attention of the City after the meeting Agenda was posted. She advised the item came to the attention of the City yesterday at 5:30 p.m. with an immediate need to take action and noted the City’s attorneys need direction regarding the litigation prior to the Council’s next regularly scheduled meeting. It was moved by Mayor Pro Tem/Vice-Chairman Brossmer, seconded by Council Member/ Closed Session Commissioner Gafin and unanimously carried to add item: 2. Government Code Section 54956.9(a) – Conference with legal counsel - pending litigation: City of Downey, et al. vs. Water Replenishment District of Southern California, et al.,Los Angeles Superior Court Case No. BS128136. -1- City Council/CDC (Joint Adj) Minutes 06/07/11 City Manager/Executive Director Caton mentioned outstanding issues at the State level that could still impact the budget being presented tonight. He advised the Downey Police Officers’ and Police Management Associations agreed to forego raises, which will save the City over a million dollars this year. He explained that the budget is tight and the City will run a deficit but will still have $28 million in reserves. He noted the budget is the most important finance and policy document and explained that Finance Director Michicoff will present a PowerPoint program displaying the major issues of the budget and each Department Head will then follow with a presentation on their department’s budget, emphasizing what they are doing as opposed to actual dollar amounts. The budget suggests permanently eliminating 7 percent of the work force, freezing an additional 2 percent, and continuing with the current hiring freeze. It does not propose cuts in any programs currently offered. He mentioned possible issues may have to be brought back, such as redevelopment at the State level, and explained the City is in the process of changing its retirement system to create a new two-tier system. He noted Downey is still experiencing development, which is a good sign, and asked that questions be held to the end of each presentation. Finance Director Michicoff presented a PowerPoint program of the proposed 2011-2012 budget, stating the budget’s three purposes are: to establish public policy, to set controls on expenditures and the usage of revenue and to serve as a financial planning tool. He noted the budget is $143.6 million, a decrease of $3.8 million from last year, with an Operating budget of $98.4 million. He reviewed the three budget categories: the General Fund, $66.5 million, a decrease of $1.3 from last year, the Enterprise Funds, $26 million, and the Special Revenue Funds of $53.5 million. He advised Police and Fire utilize 70 percent of the general fund budget and mentioned modifications, such as the transfer of the Emergency Preparedness Program to the Fire Department, the transfer of the Neighborhood Watch Program to the Police Department, the expansion of the fire communication center to include the City of Vernon next year, the Public Works Department’s proposal to reorganize to recapture operational efficiencies and the beginning of the first full year of the new Downey Civic Theatre management contract. He reviewed projected revenues of $62.1 million, a $2.2 million increase from last year and noted the biggest revenue source is taxes: sales tax, property tax, and other tax, advising the City projects sales tax will go up, property tax will decline; and other taxes will increase. He reviewed revenue fluctuations for the coming year, noting licenses and permits going down, interest and rents going down, utility users tax going up, property transfer tax going down, community development block grants going down, water utility operating revenues going up and golf course revenues going down and said from 2004 to 2008-2009 the City was taking in more money than was going out and put these extra funds into other funds and also into reserves. He stated unemployment is decreasing which could relate to a sales tax increase and reviewed opportunities and challenges in the upcoming year. He noted a deficit of approximately $1.7 million if staff can hold to the $1.9 million in cost cutting measures proposed, noting the City has already obtained $1 million in cuts by the deferral of increases by the Police Officers’ and Police Management Associations. He said the budget does not project any decrease in services or programs but the economy is still fragile and the duration is unknown. He said the pulse in Sacramento is to reform agencies and not to eliminate agencies and pointed out it was deemed unconstitutional to remove redevelopment agencies. He stated the City’s projected reserves as of June 30, 2012 should be $28.7 million, noting the budget anticipates receiving $17 million in grants from the Federal, State and local areas and said the City has $45 million in capital grants from streets to highways to housing to the golf course and to traffic signals. He also said a major opportunity as well as a challenge depends on the water fund’s stability and the proposed rate increase, stating the City will have to see in the long run how this impacts the cost system. He noted the State’s $10.8 billion dollar deficit may affect the City one way or another and said staff is committed to continuing its search for grant funding. He listed accomplishments, such as the Taste of Downey event, the fact the City has been very active in its business attraction and retention to bring in quality projects, such as the Champion Fiat dealership, Porto’s Café, Fresh N Easy, BJ’s Brewing and Buffalo Wild Wings, stating many -2- City Council/CDC (Joint Adj) Minutes 06/07/11 cities are in a stagnant position and Downey has been aggressive in attracting these entities. Also, The View Housing project is going forth, the Police Department has implemented a high tech crime unit which can monitor cyber crimes and implemented the automatic license plate recognition system. The automation at the Library of the WiFi system, the management contract for the Downey Civic Theatre, the first dog park, two new Fire Department pumper trucks and the enhancements to Imperial Highway and Lakewood Boulevard. Finance Department Finance Director Michicoff reported that the Finance Department Budget is $4,013,286 which covers 5 areas: Risk Management, Purchasing, Information Systems, Parking Tickets and Accounting and Administration. He noted goals and accomplishments, such as claims, lawsuits, software maintenance for Eden system, Excel and Laser Fiche, employee benefit program, implemented WiFi, the increased audit requirements and accounting policies, and the budget is compiled in this department. Mayor Pro Tem/Vice-Chairperson Brossmer left the meeting at 4:53 p.m. He responded to questions from Council Member/Commissioner Guerra regarding the decline in revenue and checks and balances that the Council should be doing, stating the decrease is from the interest earning capability. The available cash has gone down and investible money has gone down. As cash flow decreased and interest rates decreased the combination has driven down interest income. For the checks and balances Mr. Michicoff explained that part of the budget process involves review of the past year with the budget subcommittee to evaluate where the City stands. On a monthly basis, data is disseminated to each Department Head. The City also relies upon the audit management letter from the auditors which states if they had any disagreements with staff and pointed out there were no disagreements. Council Member/Commissioner Guerra asked if the bank accounts are checked to not allow unknown accounts and the response was that every dollar that runs through the City hits the books and creates an audit trail. Mayor/Chairperson Marquez mentioned the cuts in every department and referred to vendor negotiations and the bidding process, asking if staff is doing everything they can when looking at existing contracts to make sure there is not a lower bid to be found of whether the contract could be renegotiated for a lower rate. Mr. Michicoff responded that every bid handled is evaluated. We also contact other cities for what they have done and sometimes piggyback with them to get a cheaper rate. We also buy certain things through the State co-op and are constantly in a state of evaluation asking for cuts. Police Department Police Chief Esteves explained the divisions covered by the Police Department budget: Administrative, Field Operations, Detectives and under the umbrella of the Administrative Division is Code Enforcement. He noted the number of employees and the duties of each division. Accomplishments noted were: the completion of audits of the dispatch center, hours of professional training, 98 percent compliance by Code Enforcement before prosecution, new narcotics detection dog, Duke, new high tech crime unit, expansion of the police chaplain program, implemented a license plate recognition system (LPR), new driver training program, and established an employee of the quarter program. He advised the Sergeant of the Administration Division will assume direct supervision of Code Enforcement and said the Police Department also assumed the Neighborhood Watch Program and is developing a peer support program for all Police Department employees. He said they coordinated with local businesses to combat crime activities and identify areas in the City with higher than usual crime and are reducing the numbers. He noted the Federal Government is requiring all police departments in the United States to narrow band their frequencies as of Jan. 1, -3- City Council/CDC (Joint Adj) Minutes 06/07/11 2013 and said they are trying to find grants for this unfunded liability of $500,000 and are also trying to delay the compliance date. He responded to Council questions regarding overtime, stating it is so cyclical for overtime in the police world and said the department is very stringent on overtime and there are lines of authority before approval. He noted it has been reduced 20 percent. He noted investigations were up this year by $100,000 from one major case. He said the budget looks at the worst case scenario. Council Member/Commissioner Guerra asked if cameras can be reviewed for the parks, possibly from asset forfeiture funds and Chief Esteves responded they looked at this as a goal but wanted to put the license plate readers in the field and had about $300,000 geared to more readers when the government narrow banding issue came up. Mayor/Chairperson Marquez asked that equipment and contracts be reviewed for the best prices, stating it is important to find savings everywhere. recessedreconvened The meeting at 5:27 p.m. and at 5:38 p.m. with Mayor/Chairperson Marquez and Council Members/Commissioners Gafin, Guerra and Vasquez present; and Mayor Pro Tem/Vice-Chairperson Brossmer absent. Fire Department Fire Chief Crooms reviewed the Fire Department’s 5 divisions: Administration, Fire Suppression, Emergency Medical Services Division/Basic Life Support Transportation, Joint Powers Communications Center and Fire Prevention Bureau. He reviewed the functions of each and its tasks and responsibilities. Accomplishments noted were: great successes with grants and improved emergency policies and procedures to operate more efficiently. He said a big objective of the department is training, as staff will be changing in the next three to five years and they will lose 50 percent of the captains, fire chiefs and battalion chiefs to retirement in three years and 75 percent by 5 years. He noted objectives, such as programs to reduce injuries, pursuing efficiency measures with Area E partner agencies, locating cost savings opportunities, coordinating reassignment of the Emergency Services Manager position starting July 1, and getting a new staff person for the position in January 2012. He said they will implement a new data collection program which will speed up operations and a new dispatching system, tiered dispatching, should enable them to free up units, by determining what type of unit is needed and will decrease paramedic calls. They will also adopt the 2010 Fire Code with local amendments. Council Member/Commissioner Vasquez referred to Page 113 and asked if the positions noted for emergency preparedness are intended to replace Emergency Preparedness Manager Sauter’s current position. Chief Croom said the $80,000 noted is for Mr. Sauter until January 1, 2012 and the other $46,000 is for the remainder of the budget period for a new employee for one- half year. Council Member/Commissioner Guerra referred to overtime and Chief Croom said the $1.6 million noted is for minimum manning for fire suppression personnel. The rest is for staff meetings, mandated training, and mandated paramedic training. Council Member/Commissioner Guerra asked what the criteria is for purchasing new fire trucks and the response was that Industry standard used to be 20 years but is now based on mileage and how much money is put into the apparatus for repairs and the standard is usually 12-15 years now. He responded to the reason for sending a big truck along with a paramedic truck advising the manpower is needed as the dispatcher does not know if the person is in full arrest, just can’t breath or is just feeling sick from the caller’s information, and to provide the best service more than two people are needed. Council Member/Commissioner Guerra asked that this be reviewed in six months. Mayor/Chairperson Marquez asked the Fire Department to make sure the City is saving on purchased items by getting the best prices and is not automatically renewing existing contracts. He -4- City Council/CDC (Joint Adj) Minutes 06/07/11 also asked that the Chief to look at ways to adjust overtime to be most efficient without impacting residents. Chief Croom said the majority of the department’s money is used on equipment and they decide on the best manufacturer and then start looking at vendors. They go through bid process and will buy certain amounts of products. He said they try to develop relationships with vendors and feel comfortable they are getting a good price for the City Conversation ensued regarding the salary for the position of Emergency Services Manager and Finance Director Michicoff advised the salary is $105,000 and with benefits is $150,000 per year. Staff was asked to look at the proposed salary and Mayor/Chairperson Marquez asked if the $80,000 budgeted now could be changed or eliminated. City Manager/Executive Director Caton advised it is a contract position and Council can direct staff to change it now and it will be brought back during the budget hearing at the end of the month for a vote. instruct staff to eliminate the $80,000 position from It was moved by Mayor Marquez to the budget now. The motion died for lack of a second. City Manager Caton suggested letting staff take a further look at the position and felt the City could recruit a good candidate for less than the proposed $105,000. Public Works Department Public Works Director Oskoui presented a PowerPoint program noting the budget focuses on decreasing the encroachment by the department into the General Fund by reducing staff costs and introducing functional efficiencies of the structure of the department. He said they reviewed what they produce, the costs to produce and compared this to the market. They looked at the consolidation of responsibilities to save positions and the need to balance the organization. He noted there are currently 76 employees in the department which is a reduction of 12 percent. Mayor Pro Tem/Vice-Chairperson Brossmer returned to the meeting at 6:26 p.m. Mr. Oskoui pointed out positions not filled and those filled with lower level positions that had not been filled for quite a few years. They felt more focus was needed in areas of delivery of service to citizens and this was accomplished by separating the functions under the Engineering umbrella and creating two subdivisions He reviewed the functions of each subdivision now known as the Operations part of Engineering and reviewed the budgets for each division, including number of personnel, personnel costs and the cost for supplies and services, noting the overall department has 76 employees at a cost of $7.3 million, supplies and services including professional services contracts is $16.8 million, capital outlay is $310,000, total value for capital projects is $34 million for an overall budget of $58.5 for next fiscal year. Council Member/Commissioner Guerra left the dais at 6:27 p.m. and returned at 6:32. Mr. Oskoui mentioned the various funding sources that feed the capital program and noted the City will complete the Lakewood Boulevard project next year and will start on the Firestone Boulevard project from Old River School Road east to just west of Lakewood Boulevard and the Lakewood Boulevard/Columbia Way traffic signal. He mentioned accomplishments and focuses for 2012 in each division. Council Member/Commissioner Gafin left the dais at 6:37 p.m. and returned at 6:42 p.m. Mayor Pro Tem/Vice-Chairperson Brossmer left the dais at 6:44 p.m. and returned at 6:49 p.m. Council Member/Commissioner Vasquez noted parks are being heavily used and asked for Mr. Oskoui’s opinion on possible fees to offset costs. Mr. Oskoui stated he is a proponent of fees. -5- City Council/CDC (Joint Adj) Minutes 06/07/11 He noted one of the goals this year is to have a strategic goal meeting and referred to one of the assessment districts that is not self-sufficient and encroaches into the general fund. He noted the City is short of park land and the playing fields are used all the time and need a period of at least 2 months of retirement each year for maintenance. Mayor/Chairperson Marquez mentioned the Public Works Department relies heavily on contracting out and has many existing contracts and wanted to make sure they are spending efficiently and going out of their way to find savings. Mr. Oskoui said the way service is delivered at the counter will translate into savings for the developer which comes back to the City in some way. He said they brought several requests for contracts to multiple consultants in order to create competition between the consultants and to get the lowest bid. Mayor/Chairperson Marquez inquired about existing contracts such as landscaping and Mr. Oskoui responded they are in the process of putting together new specifications for this contract to obtain better service and it will be based on performance where the vendor will not get paid for the portion of the work, if they are not meeting the requirements. He noted the two landscaping contracts go out to bid in six months and the street sweeping and solid waste contracts will be reviewed when they come up for renewal. recessedreconvened The meeting at 6:52 p.m. and at 7:06 p.m. with all Council Members/Commissioners present. Community Services Department Community Services Director Phillips advised the Community Services Department will maintain the same programs and services as the previous year. He mentioned accomplishments, such as the new Civic Theatre management group, Kids Day improvements, Kids Day Hall of Fame, Pumpkin Patch, the Library being open 6 days a week, new Library WiFi, Student Government Day event, Oasis program, dog party in the park, and the community services guide. He provided statistics, noting over 4,000 games are played on the playing fields, not including practices; 131,000 people visit the Barbara J. Riley Senior Center each year; concerts in the park, books checked out from the Library, number of rounds of golf, number of events held at the Rio Hondo Event Center, number of riders on the DowneyLINK, usage of Dial-A-Ride, and number of visitors to the parks. He said they eliminated staff positions and have over 300 part-time employees who have done an outstanding job and have contributed to the cost savings. Mayor/Chairperson Marquez asked what the department is doing to reduce funds and Mr. Phillips mentioned the Major League contract went from 23 to 26 percent of the revenue, he said they order through the Finance Department, they cancelled the data basis offered in the Library and have submitted a tournament fee and a fee of $21 per hour for use of fields for the travel leagues. Council Member/Commissioner Guerra noted the field at the Discovery Sports Complex is dirt and was advised a part-time person was hired to control the usage of the field. Public Works Director Oskoui advised the field will be retired on June 26 to revitalize it and noted there is a problem with the irrigation. Mr. Guerra noted we spent a lot of money to fix the field last year and asked if this will be an annual project. Mayor/Chairperson Marquez noted a synthetic field was discussed during the Council priorities goal setting meetings and Mayor Pro Tem/Vice-Chairperson Brossmer felt there was no sense putting more money into this field to fix it in its current situation. Columbia Memorial Space Learning Center Executive Director Pomrehn presented a PowerPoint program, mentioning the great success of the recent robotics competition and said the Center is moving in the right direction. He noted the Learning Center honors the crews of the Columbia and Challenger space shuttles and the City’s aerospace history with the goal of educating future astronauts and scientists. He referred to staffing numbers and noted a change in one position, the Center Supervisor will be reclassified to Special Programs Coordinator. He noted $80,000 was added to this year’s budget for exhibit maintenance -6- City Council/CDC (Joint Adj) Minutes 06/07/11 and repair and said goals include a marketing plan, changes in hours of operation, such as being open on Sundays and expanding programming. He mentioned the number of Challenger missions, field trips, hosted events and total visitors (22,000) and noted a $12,000 profit from the gift store. He said the National Aeronautics and Space Association (NASA) has invested over $5,000,000 and with these funds they have installed the media wall, purchased computer work stations throughout the Center, purchased a third Challenger learning center scenario and acquired the robotics system loaned to the local high schools for the recent competition. Council Member/Commissioner Guerra said he felt the portable chain link fence makes it appear the center is not open and Mr. Pomrehn pointed out the children visiting the Center eat lunch outside and the fence keeps them in a certain area. City Manager Caton referred to $150,000 granted to the City in the last few days through Los Angeles County Supervisor Don Knabe that perhaps could be used for fencing improvements. Mr. Pomrehn mentioned a mars scape created on the second floor, special programs, summer and winter camps, speakers, book signings, star gazings and said an affiliation application was submitted to the Smithsonian Institute for exhibits. He said they received an additional $20,000 grant from NASA for the summer for students and educators; formed an education advisory committee to assist with the curriculum; formulated a partnership with Downey and Warren High Schools with the robotics program; and will add rocketry and flight programs. He noted donations were received from Dr. Mary Stauffer, the Rotary International Club, Kiwanis Club and other neighboring clubs to allow children to enjoy the Challenger experience He said decisions need to be made to bring the Center up to capacity and said NASA is looking at granting $250,000 per year and is excited about the Center. He said the to do list includes rear fencing, the donor wall, graphics outside and inside, restoring the boiler plates, working on catering partnerships and up-scaling field trips. Mayor Pro Tem/Vice-Chairperson Brossmer said he was pleased with the progress at the Center and commended Mr. Pomrehn and his staff. Council Member/Commissioner Vasquez suggested utilizing healthy eateries to give children a healthy option. Mayor/Chairperson Marquez referred to the utility bill and felt the building needs to be made more energy efficient and suggested looking into solar power. He said the City’s grant writers should be utilized for the center to look into major sponsors and funding sources with a goal of having it operate on its own one day. Mr. Pomrehn advised the utility bills have come down quite a bit as they have been working on the efficiency of the Center. Community Development Department Community Development Director Saeki presented a PowerPoint program noting their goal is to continue to do more with less with more out of the box thinking. He provided a chart of current staff and divisions, noting the previous Building Official retired and the Assistant Community Development Director left for another position and they are proposing to backfill the Assistant Community Development Director position with a Community Development Manager position. He mentioned a total general fund savings of $2.3 million due to eliminating positions and tightening their belts on spending. He pointed out accomplishments last year, such as the Market Place project, Taste of Downey event, securing the Chrysler Jeep and Fiat dealerships, approved The View project, the Downey Gateway project, a new Buffalo Wild Wings restaurant in the Stonewood Mall, receiving two awards for the Downtown Specific Plan and implemented the Accela tracking system. Goals for the coming year include finishing the Tierra Luna Market Place project, the Specific Plan amendment and Development Agreement, build the Downey Gateway Project and The View Project, getting further on the development of the Rancho Los Amigos area, working on a couple of proposals for the Avenue Theater, finishing the establishment of the Downtown Business Improvement District and expanding economic development programs. He said they continue to promote quality customer service, mobile inspection services for building and safety personnel and looking at right-siding the organization. He referred to Community Development customer service -7- City Council/CDC (Joint Adj) Minutes 06/07/11 satisfaction, stating they compiled information over the last few months and have posted it on the website, noting from over 400 responses, 98 percent were happy with the service received. He noted for Mayor/Chairperson Marquez that he reviews contracts to make sure they are getting the best cost and said they bid out competitively. Council Member/Commissioner Vasquez asked about the potential art walk and was advised that a local individual who specializes in the arts movement was contacted and a small contract will be set up with him that will be presented to the Council. Council Member/Commissioner Vasquez asked if public arts funds could be used and City Attorney/Agency Counsel Abich Garcia advised she would check the guidelines to see if it can be done. NON-AGENDA PUBLIC COMMENT: No one came forward to speak. recessedClosed Session The meeting to at 7:50 p.m. to discuss Item 2, pending litigation, reconvened City of Downey et al. v. Water Replenishment District of Southern California et al., and Closed Session at 8:00 p.m. with all Council Members/Commissioners present. There were no actions to report. ADJOURNMENT: The meeting adjourned at 8:00 p.m. to 6:00 p.m., Monday, June 13, 2011. ______________________________________ _________________________________ SHIRLEY CONTE, Chief Deputy City Clerk LUIS H. MARQUEZ, Mayor/Chairperson -8- City Council/CDC (Joint Adj) Minutes 06/07/11