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HomeMy WebLinkAboutMinutes - 03-13-12 Regular Meeting MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY REGULAR MEETING MARCH 13, 2012 The City Council of the City of Downey held a Regular Meeting at 7:30 p.m., March 13, 2012, in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California, Mayor Roger C. Brossmer presiding. PRESENT: Council Members: Roger C. Brossmer Mayor David R. Gafin Mayor Pro Tem Mario A. Guerra Luis H. Marquez Fernando Vasquez ALSO PRESENT: Gilbert Livas, City Manager John Oskoui, Assistant City Manager /City Treasurer Yvette M. Abich Garcia, City Attorney Adria M. Jimenez, City Clerk Shannon DeLong, Assistant to the City Manager Lonnie Croom, Fire Chief Carl Charles, Police Captain John Michicoff, Finance Director Brian Saeki, Community Development Director Arlene Salazar, Interim Community Services Director Gladys Chavez, Secretary Other City Staff The Invocation was delivered by Bishop Steven English, Church of Jesus Christ of Latter Day Saints. The Flag Salute was led by Fire Chief Lonnie Croom. COUNCIL MEMBER ANNOUNCEMENTS; REQUESTS FOR FUTURE AGENDA ITEMS; AND CONFERENCE /MEETING REPORTS: Council Member Vasquez reported attending the Opening Day of the Family Health Care Center of Greater Los Angeles; reported meeting with the Children's Clinic based out of Long Beach, and recognized Lee Ann Sears, Emergency Preparedness Commissioner, who was in the audience. Council Member Marquez thanked, Miss Downey and her Court, the Community and students for their attendance at tonight's Council Meeting. Council Member Guerra reported participating in the Day of Reader Program at Unsworth Elementary; attended a budget subcommittee with staff; reported attending and testifying at the Joint Legislative Audit Committee in Sacramento; reported attending the Downey Art on the Vine; attended a performance by the Temptations at the Downey Civic Theater; attended the ribbon cutting ceremony of the Lakewood Boulevard Improvement Project; attended the PTA H.E.L.P.S. Food Bank run by volunteers at Apollo Park; reported attending a luncheon by The Arc of Los Angeles and -- Orange County and also toured their facility; requested to review the Request for Proposal's received regarding health insurance; requested large reports on the Agenda be given to Council Members in advance, and requested the process of acquiring permits be more business friendly. City Council Minutes — March 13, 2012 1 Mayor Brossmer advised that The Friends of the Downey Library will be hosting Alice Ozma and her father Jim Brozina on March 22 at 7 p.m., in the Council Chambers; attended the Day of Reader at Gauldin and Ward Elementary Schools; reported attending a luncheon by The Arc of Los Angeles and Orange County; reported that the PTA H.E.L.P.S. program is a great organization; thanked staff for the ribbon cutting ceremony held for the Lakewood Boulevard Improvement Project; attended the Downey Sister Cities event in Culver City where the City won an award and a local student received a scholarship; attended a branding subcommittee meeting; attended the Grand Opening of 7- Eleven on Florence Avenue and, attended the Don Knabe Elected Officials reception in Downtown Los Angeles. PRESENTATIONS: Mayor Brossmer presented a Certificate of Recognition to Francisco Zelaya for his service on the Emergency Preparedness Committee. Mayor Brossmer recognized local Downey service men as part of the military banner program; Christopher Gerard Marr, Carlos Armando Pena, Martin Tomsick, Justin Crozier Cox, Richard Rodriguez Jr., and Gilberto Romero, Jr. Mayor Brossmer presented a Proclamation of Recognition to The Arc Walk for Independence, Proclaiming March 24, 2012 as The Arc Walk for Independence Day. Betty Morse of The Arc Walk for Independence accepted the proclamation. Mayor Brossmer presented a Certificate for outstanding service and support to outgoing Miss Queen Downey Erika Gonzalez; Miss Princesses Geneve Melendez, Alyssa Rico, Giovanna Dan and Genesis Anguiano; Miss Queen Teen Downey Jona Capino; Miss Teen Princesses Sofia Moreno, Lauren Baumann and Michelle Ferrufino; Jr. Miss Queen Downey Lunabe Oliver- Zamora and Jr. Miss Princesses Bailey Campbell and Aveonna Bobbit. PUBLIC HEARINGS: None NON - AGENDA PUBLIC COMMENT: The following people spoke regarding the recent officer involved shooting: Norma (no last name provided) Jean Thaxton Sister of Michael Nida (no name provided) Deborah (no last name provided) Lema Harris Damien Ramirez Mayor Brossmer recessed the City Council Meeting at 8:36 p.m. and reconvened at 8:41 p.m., with all Council Members present. CONSENT CALENDAR ITEMS REMOVED: 1. APPROVE CITY COUNCIL MINUTES: Regular Meeting of February 28, 2012; and, Special Meeting of March 2, 2012: City Clerk. This item was pulled at the request of Council Member Vasquez and is listed under Other Business. 6. ADOPT RESOLUTION NO. 12- , A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING THE SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN (SERP): Finance. This item was pulled at the request of City Manager Livas and is listed under Other Business City Council Minutes — March 13, 2012 2 7. ADOPT AMENDMENTS TO CHAPTER 10 OF ARTICLE VIII OF THE DOWNEY MUNICIPAL CODE (ART IN PUBLIC PLACES) AND REVISIONS TO THE ART IN PUBLIC PLACES POLICY MANUAL: Community Development. This item was pulled at the request of Mayor Pro Tem Gafin and is listed under Other Business. A. INTRODUCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING SECTIONS 8950 AND 8980 OF ARTICLE VIII, CHAPTER 10 OF THE CITY OF DOWNEY MUNICIPAL CODE REGULATING ART IN PUBLIC PLACES B. ADOPT RESOLUTION NO. 12 - , OF THE CITY COUNCIL OF THE CITY OF DOWNEY REVISING THE ART IN PUBLIC PLACES POLICY MANUAL. 10. RECEIVE AND FILE THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FORTHE FISCAL YEAR ENDED JUNE 30, 2011: Finance. This item was pulled at the request of Council Member Guerra and is listed under Other Business. CITY COUNCIL CONSENT CALENDAR: It was moved by Mayor Pro Tem Gafin, seconded by Council Member Vasquez, and unanimously carried to approve the remainder of the Consent Calendar. 2. APPROVED WARRANTS ISSUED: Warrant Nos. 266023 — 266231; Wire Nos. 30002603 — 30002612, and 859 — 863; and, the Cashier Check Nos. are 6 — 8, in the total amount of $2,500,080.71: Finance. 3. CASH CONTRACT 682B — COLUMBIA MEMORIAL SPACE CENTER FENCE PROJECT: APPROVED PLANS AND SPECIFICATIONS AND AUTHORIZED SOLICATATION FOR BIDS: Public Works. 4. APPROVED AGREEMENT WITH THE DOWNEY PATRIOT FOR PUBLICATION OF LEGAL NOTICES: City Clerk. 5. ADOPTED RESOLUTION NO. 12 -7325, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ESTABLISHING THE SALARY RANGE FOR THE POSITION OF REGIONAL FIRE COMMUNICATIONS LEAD OPERATOR: Human Resources. 8. APPROVED CHAMBER OF COMMERCE STREET FAIR PERMIT: Administration. 9. APPROVED THE CONCEPTUAL DESIGN OF THE DOWNEY VETERAN'S MEMORIAL AND ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH JAMES T. RUSSELL SCULPTURE FOR FABRICATION AND INSTALLATION: Community Development. OTHER BUSINESS: 1. APPROVED CITY COUNCIL MINUTES: Regular Meeting of February 28, 2012 and, Special Meeting of March 2, 2012.City Clerk. Council Member Vasquez requested the Minutes reflect his attendance at the International Council Shopping Center Conference in Los Angeles for the Hispanic Communities where he attended conferences on Economic Development Environment without Redevelopment, and Retail Opportunities in the Hispanic Market. City Council Minutes — March 13, 2012 3 It was moved by Council Member Vasquez, seconded by Mayor Pro Tem Gafin and unanimously carried to approve the minutes of the Regular Meeting of February 28, 2012 and, Special Meeting of March 2, 2012, as amended. 6. ADOPTED RESOLUTION NO. 12 -7326, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING THE SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN (SERP): Finance. City Attorney Abich Garcia advised that the original agreement contained in tonight's agenda packet had a provision Section 10- CONFIDENTIAL. The City would be obligated to disclose confidential information about Keenan & Associates regarding their business operation or employees if a public record request was filed. However, in our business dealings with Keenan & Associates there would be no situation where we would come into possession of anything confidential. Council Member Guerra advised that under Section 9- INSURANCE, Sub - Section (iii) Errors and Omissions, $1 million liability insurance was insufficient to do business with the City of Downey. He requested having at least $5 or $10 million of liability insurance. Director of Finance Michicoff advised that City Administrative Regulations state that contracts or agreements with professional entities are not required to carry insurance. He will need to discuss with Keenan & Associates procuring additional insurance. Council Member Guerra asked who would be reviewing the policy and /or plans under Section 3 - CLIENTS DUTIES Letter E. Director of Finance Michicoff stated that the review of plan documents is done by City staff, City Attorney Abich Garcia, himself and on- contract individual. There are at least three independent reviews of the documents. Council Member Guerra asked for clarification under EXHIBIT B SCHEDULE OF FEES regarding the 6% commission and asked what the cost was for the annuity policy. Director of Finance Michicoff advised that the 6% commission comes from the deposits that are made into the individual accounts; the City will not be paying any commission. Council Member Guerra asked what will the annuity policy cost. Director of Finance Michicoff stated that the value of the deposits is based upon the salary of the individual going into an account. The only cost to the City for this program is a $750 one time fee. He will have to research the cost of the annuity acquired from Mutual of Omaha. Council Member Guerra stated that under Section 11- TERMINATION, Terms of Agreement, the 30 day dissolution should apply to both the supplier and to the City. Also, under Sub — Section E, if the agreement is terminated does the City have to pay for items, ii and iii. City Attorney Abich Garcia advised that in the new agreement under Section 11- TERMINATION it explains that Keenan & Associates would not be entitled to any compensation for services provided to the Client in enrolling the plan if the Agreement is terminated. Council Member Guerra asked if no employee was to take the plan does the City still have to pay for Section 11- TERMINATION Sub - Section E (i, ii and iii). He asked what if the annuity does not pay out what it is supposed to, and asked if this was a guaranteed annuity or fluctuating. City Council Minutes — March 13, 2012 4 Dan Keenan, Keenan & Associates, advised there would be no charge to the City if the employees did not purchase an annuity; it is a guaranteed annuity by the insurance company. Once the annuity is purchased it is guaranteed to pay the monthly benefit as agreed, whether it is payable over their lifetime or payable over a certain period of time. The 6% commission that Keenan & Associates would receive based on the 17 projected employees that are eligible to retire, would be a little over $30,000. City Attorney Abich Garcia advised that the proposed changes to the agreement included having Keenan & Associates provide more general liability insurance if the City requires it and adding language that states the City will not be required to pay for any of Keenan & Associates services in enrolling the plan if no employees enroll. Mr. Keenan stated he will ask his property and liability department if they can increase the general liability insurance and language will be added to the agreement stating if no employee takes the annuity there will be no cost to the City. City Attorney Abich Garcia stated Section 11- TERMINATION, the last paragraph will read, "Keenan shall not be entitled to any compensation for services provided to Client in enrolling the Plan if no City employee enrolls in the Plan or this agreement is terminated pursuant to Sub - Section A or B in this Section 11 prior to plan implementation ". It was moved by Mayor Pro Tem Gafin, seconded by Council Member Guerra and unanimously carried to adopt the Resolution, as amended. 7. ADOPTED AMENDMENTS TO CHAPTER 10 OF ARTICLE VIII OF THE DOWNEY MUNICIPAL CODE (ART IN PUBLIC PLACES) AND REVISIONS TO THE ART IN PUBLIC PLACES POLICY MANUAL: Community Development. A. INTRODUCED AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING SECTIONS 8950 AND 8980 OF ARTICLE VIII, CHAPTER 10 OF THE CITY OF DOWNEY MUNICIPAL CODE REGULATING ART IN PUBLIC PLACES B. ADOPTED RESOLUTION NO. 12 -7327, OF THE CITY COUNCIL OF THE CITY OF DOWNEY REVISING THE ART IN PUBLIC PLACES POLICY MANUAL. Mayor Pro Tem Gafin mentioned that in 2005 when the Art in Public Places Policy Manual was adopted the intent was to deposit money that was a developer surcharge fee in order to advance physical art within the City of Downey. The intent now is to use some of that money to fund other non- physical types of art, whether performance art or music art. Mayor Pro Tem Gafin stated he objects because for the past seven years the City has collected money from developers with the intent to create a physical permanency for art. If the City is promoting with these funds to have any type of art that is not permanent, we are doing a disservice to the intent of the Art in Public Places fund. Council Member Guerra mentioned that he firmly believes in using the Art in Public Places funds for not just physical art. He questioned what "original" means in the Ordinance because the City has the John Gately Downey statue in front of City Hall and the Veterans Memorial that are not "original ". Mayor Brossmer mentioned that the City could strike out "original" from the Ordinance and use "emphasis" instead. Council Member Vasquez stated that the Downey art movement has been successful and this is a great step in the right direction. Council Member Marquez stated the City should move forward in supporting public art. City Council Minutes — March 13, 2012 5 Mayor Pro Tem Gafin wanted to clarify that he is not opposed to the Downey Art Vibe or the Downey Museum of Art, but the Art in Public Places funds is not money the City should be drawing upon to support them. Council Member Guerra mentioned this was out of the box thinking and we should use the money wisely within the original moral and intent of what the Ordinance was suppose to do and that was to support art in the City of Downey. Harold Tseklenis resident, mentioned that Chapter 10 or Article VIII of the Downey Municipal Code (Art in Public Places) and Art in Public Places Policy Manual, the use of the word "original" included limited editions or reproductions. It was moved by Council Member Guerra, seconded by Council Member Vasquez with Mayor Pro Tem Gafin voting no, to introduce the Ordinance and adopt the Resolution, as amended. 10. RECEIVE AND FILE THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FORTHE FISCAL YEAR ENDED JUNE 30, 2011: Finance. Council Member Guerra stated he would like to receive large items on the Agenda sooner. Council Member Guerra had a question about unfunded liability due to pensions. Director of Finance Michicoff mentioned that two years ago the commission went to the Public Employees Retirement System (PERS) Board wanting a reduction of the projected earning rate down to 7.5 %. At that time the PERS Board did not want to approve it because it would impose an undue hardship on many Cities. However, this year the Public Employees Retirement System (PERS) did drop the rate to 7.5% and decreased their inflationary factor. The net effect of the change will impact the City in the 2013/2014 fiscal year. The projections for the miscellaneous group would be a 2% increase; and 3% increase for the safety group. The City Council has approved the Supplemental Employee Retirement Plan (SERP) to preserve current capital for future use. The preserved capital will be used to off -set increasing cost. Our unfunded liability is monitored and is a better ratio, over 80 %, which is more than many other Cities. Of our unfunded pension liability the City has 80 percentile banking. Mayor Brossmer asked if on the second tier pension plan for new employees the numbers increase over time. Director of Finance Michicoff mentioned that as the second tier starts taking traction, the employee will be depositing a greater amount of their pay into the program and the City would be preserving even more of their capital. There is no dollar value at this time because of the hiring freeze. Once the Supplemental Employee Retirement Plan (SERP) program moves further along we will see more results. The first projection is roughly $60,000 range of benefit for the first year, increasing thereafter. Council Member Guerra mentioned that our employee benefits have increase from $15 million to $30 million annually in the last 10 years. In the budget he would like to see how that will impact the City in the future with the same number of employees. It was moved by Council Member Guerra, seconded by Mayor Pro Tem Gafin and unanimously carried to receive and file. City Council Minutes — March 13, 2012 6 STAFF MEMBER COMMENTS: City Manager Livas thanked Civil Senior Engineer Desi Gutierrez for brining the Lakewood Boulevard Capital Improvement Project in on budget and with limited delays. The meeting adjourned at 9:22 p.m. to March 27, 2012, in memory of Cecilia Leal Montezuma, sister of Jessica Flores, Associate Planner for the City of Downey. 7 /14 ADRIA M. JIMENE , CMC RO R C. ROSSMER, Mayor City Clerk City Council Minutes — March 13, 2012 7