HomeMy WebLinkAboutMinutes - 01-30-01 - Adjourned w CDCMINUTES OF 1HE
t_;11 COUNCIL /COMMUN 1 t DEVELOPMENT COMMISSION
OF 1HE CITY OF DOWNEY
ADJOURNED REGULAR MEETING
JANUARY 30, 2001
The City Council/Community Development Commission of the City of Downey held an
adjourned regular meeting at 6:30 p. m., January 30, 2001, in the Council Chamber of the Downey City
Hall, Mayor Robert C. Winningham presiding.
PRESENT: Council Members:
ALSO PRESENT:
ORAL COMMUNICATIONS
Robert C. Winningham Mayor /Chairman
Meredith H. Perkins Mayor Pro Tem/Vice- Chairman
Rick Trejo
Kirk Cartozian
Keith McCarthy
Gerald Caton, City Manager
Charles Vose, City Attorney
Desi Alvarez, Director of Public Works
Darrell George, Director of Economic /Community Development
Mark Sauter, Fire Chief
June Yotsuya, Assistant to the City Manager
Judith McDonnell, City Clerk
CONSIDERATION OF PROVIDING $70,000 IN ASSEMBLY BILL 2766 CLEAN AIR/ -
ALTERNATIVE FUEL VEHICLES FOR A COMPRESSED NATURAL GAS (CNG1
PROJECT PROPOSED BY R. F. DICKSON CO.
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Lennie Whittington, 8542 Manatee Street, mentioned his neighbor received a gas bill that was
considerably higher this year than last. He hoped the Council would keep in mind that an increase in
utility bills would bring an increase in utility taxes to the City.
Council Member /Commissioner McCarthy mentioned the Council subcommittee met with the
City Manager and Mr. Dickson of R. F. Dickson Co., and it was agreed to use the City address, which
is flexible. Mr. Dickson would take responsibility for liability and hold the City harmless; and if the
City were to undertake this project, Mr. Dickson would be willing to offer the City a better rate on
CNG fuel.
Mr. Vose indicated he has reviewed the grant application, and most of the revisions addressed
concerns that were raised. He mentioned having concerns about the project budget as to how the
costs would be allocated, and this should be worked out in the future. At this point, he said, the grant
is submittable.
0 3
It was moved by Council Member /Commissioner McCarthy and seconded by Mayor /Chairman
Winningham to approve. See later withdrawal of the second and a new motion (page 3).
Council Member /Commissioner Cartozian mentioned expressing concern to Mr. Dickson
regarding rates the City and School District would experience from the grant allotment, noting it
appears there will be a 200 percent rate increase in natural gas costs. Also, he questioned the City's
ability in the future to select an alternate site.
Mr. Dickson, 12524 Clark Avenue, stated he had no knowledge about fuel prices.
Mr. Vose commented on the issues that need to. be worked out before this project can go
forward and a facility constructed. At this time, the issue before the City is to approve going forward
with the application and allocating its share of the cost of $70,000 in funds available for this type of
work, and setting those funds aside.
Council Member /Commissioner Perkins recalled that Mr. Dickson came before the Council a
year ago and was told his property was not properly zoned for this facility, but he went out and
secured grants primarily for his property which still is not zoned for this use. He asked Mr. Dickson
whether the grant funds would still be available if another site was selected.
Mr. Dickson replied he was told that the location could be moved a reasonable distance within
the City, but it would not be on his property. When asked why the Cities of Lakewood and Bellflower
have approved grants for the project, he explained Lakewood would use the facility as back -up only
since they intend to build a slow -fill facility; Bellflower will use it as a primary facility for the fast -fill of
pickup trucks.
Council Member /Commissioner Perkins felt this would be a good project but was not
comfortable with only verbal commitments. He felt the City should go forward on its own and would
then have more control over the facility.
Mayor /Chairman Winningham asked questions about the financial aspects of the project.
Mr. Alvarez expressed his confusion and concern about the project with regard to its location,
whether the City will enter into a lease agreement with Mr. Dickson or whether it will be the City's
facility. He feels the City is being rushed into this.
Mr. Dickson explained the importance of getting the grant application submitted by the
deadline.
Mayor Winningham asked if the plans for this project could be withdrawn without penalty.
Mr. Vose indicated that memorandums of understanding between the cities and R. F. Dickson
Co. have been prepared and contain a 30 -day cancellation clause. He pointed out there are many
intricacies involved with the process that still need to be worked out.
Fire Chief Sauter explained the concerns of the Fire Department relating to placement of the
facility and how it impacts the surrounding community. There are also concerns with regard to
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emergency access and fire protection. He expressed particular concern with regard to the Clark
Avenue property where the Dickson Company is located.
Richard B. Pridham, 10402 Bellman, voiced opposition to public funds of any kind going
toward any private profit- making business. He felt the Dickson Company does a good job and is well
run, but he would not favor mixing public and private funds.
Mayor /Chairman Winningham pointed out the State has mandated that any vehicles p urchased
for public agencies, except for public safety, will have to be low emission vehicles.
Lennie Whittington indicated he had read about the mandate and wondered about the number
of vehicles the City anticipated purchasing at the end of the year, since a facility would need to be in
place.
Mayor /Chairman Winningham explained City staff is in the process of putting together the
annual budget, noting there are currently two City vehicles using CNG fuel.
During discussion, Council Member /Commissioner Trejo expressed his concern about the
project and felt the residents need to be more informed. He also referenced the concerns voiced by the
Public Works Director and Fire Chief.
Questions were raised regarding the in -kind services the City would be providing.
Mr. Vose explained the issues of the City utilizing $70,000 grant funds and contributing in-
kind services have not been thought out or negotiated because of the timing problem.
While commenting on the grant process, Mr. Dickson indicated that if there is not a meeting of
the minds between the parties, the process would be stopped. He pointed out that if the grant is
successful, the City and School District would be able to apply for matching funds toward replacement
of existing gasoline or diesel vehicles with clean air CNG vehicles and credit points would be given for
various items. If the City entered into this project alone, matching funds would not be available.
Council Member /Commissioner Perkins noted the proposal calls for the R.F. Dickson Co. to
be responsible for ongoing maintenance and expense of the facility, on City property. He questioned
whether the City would be relinquishing those rights to an individual.
Mr. Vose explained his understanding that there would be a lease of City property to the
Dickson Company, and they would operate as the lessee. Responding to further questions, he stated
the MOU's are currently drafted but do not address these issues. The details need to be worked out
and he will attempt to put something together as soon as possible.
Mayor /Chairman Winningham withdrew his second to the motion.
It was then moved by Council Member /Commissioner McCarthy, seconded by Mayor/ -
Chairman Winningham, and carried by the following vote to approve the grant application in its
context, as revised, and authorize the applicant and City Attorney to work through any wording
changes.
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v Y (VI'
AYES: 3 Council Members /Commissioners: McCarthy, Cartozian, Winningham
NOES: 2 Council Members /Commissioners: Perkins, Trejo
Council Member /Commissioner McCarthy mentioned receiving a letter expressing concern
about the restrictions of parking in the Downtown area due to construction. He asked if the
parking situation could be remedied so that people can patronize the businesses. He was informed that
the City's Traffic Engineer has been in contact with the businesses and it will be worked out.
RECESS TO CLOSED SESSION --
Mayor /Chairman Winningham announced the Council/Commission is recessing to Closed
Session (7:50 p.m.) to discuss the following Sections of the Government Code:
Section 54956.9 - Subdivision (a) — Conference with legal counsel — anticipated litigation —
initiation of litigation (one potential case).
Section 54956.8 — Conference with real property negotiators Gerald Caton and Darrell George
re property: Parcels 1 -6, of the Downey NASA site generally bounded by Stewart & Gray
Road, Imperial Highway & Lakewood Boulevard; negotiating parties: Ezralow Co.; under
negotiation: price and terms of payment.
The meeting reconvened in open session at 9 :40 p.m. with all Council Members/ -
Commissioners present. There were no Closed Session actions to report.
ADJOURNMENT: 9:40 p.m.
The meeting was adjourned to • 6:30 p.m., February 13, 2001, in the Council Chamber of
Downey City Hall.
ae
Judith E. McDonnell, City Clerk/Secretary Robert C. Winningham, Mayor /Chairman
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