HomeMy WebLinkAboutMinutes - 08-13-13 Regular Meeting MINUTES OF THE
CITY COUNCIL OF THE CITY OF DOWNEY
REGULAR MEETING
AUGUST 13, 2013
The City Council of the City of Downey held a Regular Meeting at 7:31 p.m.,August 13, 2013, in
the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California, Mayor
Guerra presiding.
PRESENT: Council Members:
Mario A. Guerra Mayor
Fernando Vasquez Mayor Pro Tem
Roger C. Brossmer
Luis H. Marquez
Alex Saab
ALSO PRESENT: Gilbert Livas, City Manager
John Oskoui, Assistant City Manager
Yvette M. Abich Garcia, City Attorney
Adria M. Jimenez, CMC, City Clerk
Shannon DeLong, Assistant to the City Manager
Carl Charles, Police Chief
Lonnie Croom, Fire Chief
Anil Ghandy, Interim Finance Director
William Davis, City Planner
Arlene Salazar, Parks & Recreation Director
Gladys Chavez, Secretary
The Invocation was delivered by Pastor Jon Waterson of United Methodist Church.The Flag Salute
was led by Denise Juarez and Alexandra Juarez of the Sister Cities Association.
COUNCIL MEMBER ANNOUNCEMENTS; REQUESTS FOR FUTURE AGENDA ITEMS; AND
CONFERENCE/MEETING REPORTS
Council Member Marquez welcomed everyone in attendance.
Council Member Saab welcomed everyone in attendance and recognized Downey Chamber of
Commerce Executive Director Clausen, Downey Chamber of Commerce Board Member Paton, and
Miss Downey and her court that were in the audience. He invited everyone to an upcoming ribbon
cutting event for Café Corleone Restaurant on August 14, and a fundraising event sponsored by the
Downey Rose Float Association at Knott's Berry Farm on August 17. He reported attending the
installation of the new President of the Downey Chamber of Commerce Kotze and congratulated
Business of the Year winners Downey Family YMCA and Dr. Joel Bird Chiropractor. He stated that a
recent article publish in the newspaper indicated the City had put forth minimal effort to save the
Downey Civic Light Opera(DCLO). He stated having worked on this effort the statement published was
untrue and he is available if any member of the public would like additional information.
Council Member Brossmer welcomed everyone in attendance, and Downey Unified School Board
Member Swenson who was in the audience.
Mayor Guerra recognized Youth Commissioner Sodetani who was in the audience.
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Minutes of August 13,2013 1
Mayor Pro Tem Vasquez welcomed everyone in attendance. He thanked staff and Parks &
Recreation Director Salazar for the City's first National Night Out and stated it was a very successful
event. He stated the tribute to Fire Chief Wolf was very nice and he will be dearly missed. He reported
attending the Annual Rancho Los Amigos Carnival Fundraising Event sponsored by Downey Kiwanis.
Mayor Guerra reported attending a Healthy Downey Partner's Meeting and stated they discussed
various ways to enhance health and wellness. He stated that education is a component of health and
Kaiser, Downey YMCA, and Albertsons Supermarket will be hosting a Shop with a Nutritionist event. He
requested staff provide information on coordinating an event with CicLAvia of Los Angeles and the
Bicycle Coalition to promote health and fitness. He stated the City held three events in the past week:
the First National Night Out; 2013 Twilight Summer Concerts; and the first Summer Music & Movie
Night at Golden Park. He thanked staff, Police Chief Charles, and Parks&Recreation Director Salazar
for the success of all three events. He advised that Southern California Edison(SCE)will be replacing
a transformer at midnight that will temporarily disrupt power to City Hall. He stated there will be an
upcoming agendized event that will allow the City Council to tour the City on a Downey link bus in an
effort to address concerns, make improvements, and solve problems.
PRESENTATIONS
Mayor Guerra's Healthy Downey weight was 251 pounds.
Mayor Guerra presented Certificates of Recognition to the West Downey All Star Baseball
Champions.
Mayor Guerra introduced Miss Downey, Miss Teen Downey, Jr. Miss Downey, and their Courts.
Downey Sister City Association presented a painting depicting the ancestral home of Governor
John Gately Downey to Mayor Guerra and the City of Downey.
Mayor Guerra presented a presentation of our new Sister City relationship with County
Roscommon, Ireland.
Council Member Juarez of Fresnillo Mexico presented plaques of recognition to Fire Chief Croom
and staff for the training they provided during a Downey Firemen Delegation trip to Mexico.
CONSENT CALENDAR ITEMS REMOVED. This item was taken out of order.
5. CASH CONTRACT NO. S.S. 635 - RESIDENTIAL STREET RESURFACING PROJECT
(CITYWIDE): AWARD CONSTRUCTION CONTRACT IN THE AMOUNT OF $1,272,235 TO
SEQUEL CONTRACTORS, INC.: Public Works. This item was pulled at the request of Mayor
Guerra and is listed under Other Business.
8. ADOPT RESOLUTION NO. 13- .A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF DOWNEY APPOINTING MARIO A.GUERRA,MAYOR,AS THE REPRESENTATIVE;ALEX
SAAB,COUNCIL MEMBER,AS THE ALTERNATE;AND,MAURINA LEE,FINANCE MANAGER,
AS THESUBSTITUTE ALTERNATE REPRESENTATIVE TO THE GOVERNING BAORD OF THE
INDEPENENDENT CITIES RISK MANAGEMENT AUTHORITY(ICRMA):Administration.This item
was pulled at the request of Mayor Pro Tern Vasquez and is listed under Other Business.
CONSENT CALENDAR. This item was taken out of order.
It was moved by Council Member Brossmer,seconded by Council Member Saab,and unanimously
carried to approve the remainder of the Consent Calendar.
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Minutes of August 13, 2013 2
2. APPROVED CITY COUNCIL MINUTES: Adjourned and Regular Meetings of July 23, 2013: City
Clerk.
3. APPROVED WARRANTS ISSUED: Warrant Nos. 278006 — 278565; Wire Nos. 30002964 &
30002970 and 30002974—30002984; 1147— 1159, in the total amount of$5,674,822: Finance.
4. CASH CONTRACT NO. S.S 488A - FIRESTONE BOULEVARD IMPROVEMENT PROJECT
(STORM DRAIN IMPROVEMENTS) (OLD RIVER SCHOOL ROAD—BROOKSHIRE AVENUE)
AWARDED CONSTRUCTION CONTRACT IN THE AMOUNT OF $79,175 TO MIRAMONTES
CONSTRUCTION COMPANY, INC.: Public Works.
6. CASH CONTRACT NO. S.S. 643 -SLURRY SEAL PROJECT AREA"D" -APPROVED PLANS
AND SPECIFICATIONS AND AUTHORIZED SOLICITATION FOR BIDS: Public Works.
7. APPROVED PURCHASE OF DATABASE SERVICES FOR THE CITY LIBRARY AND
AUTHORIZED SIGNING OF LICENSE AGREEMENT: Administration.
9. ADOPTED ORDINANCE NO. 13-1317,AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF DOWNEY AMENDING SECTION 2100 OF THE DOWNEY MUNICIPAL CODE RELATING TO
COUNCIL MEETINGS: City Clerk.
10. PARAMEDIC ENGINE MODEL OF FIRE AND EMS SERVICE DELIVERY: APPROPRIATED
$490,000 FROM THE GENERAL FUND FOR START-UP COSTS AND OPERATIONAL
EXPENSES: Fire Department.
PUBLIC HEARING
1. CONTINUE THE PUBLIC HEARING OF AN APPEAL OF THE PLANNING COMMISSION'S
DENIAL OF A VARIANCE (PLN-12-00261) TO THE CITY COUNCIL MEETING OF
AUGUST 27, 2013: Community Development.
Mayor Guerra opened the continued Public Hearing at 8:29 p.m. City Clerk Jimenez noted there
was no further correspondence received.
City Attorney Abich Garcia stated staffs recommendation was to keep the Public Hearing open and
continue to the City Council meeting of August 27, 2013.
Mayor Guerra invited the public to speak on this item. No one came forward.
City Planner Davis stated no further correspondence had been received by staff.
It was moved by Council Member Brossmer, seconded by Council Member Saab,and unanimously
carried to continue the Public Hearing to the City Council meeting of August 27, 2013.
NON-AGENDA PUBLIC COMMENT
John Paul Drayer, Cerritos College Board of Trustees member for south Downey, expressed his
approval of the district wide election process of the Downey Unified School District because it fosters
fairness, citizenship, and participation.
John Lacey, resident, read a poem.
Mayor Guerra recognized former Mayor McCaughan.
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Minutes of August 13,2013 3
Carrie Smith and Ilene Nieva of Growing Garden stated they had secured a location at the Moravian
Church of Downey and requested assistance with zoning permits.
Lars Clutterham, resident stated he supports Carrie Smith and Ilene Nieva of Growing Garden in
their proactive environmental efforts.
ADMINISTRATIVE REPORTS
11.ADOPTED RESOLUTION NO. 13-7434,A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF DOWNEY SUPPORTING THE COMPLETION OF THE 710 FREEWAY: Mayor Guerra.
Mayor Guerra stated that as a member of the Southern California Association of Government
(SCAG)which reviews regional planning of multiple counties,the completion of the 710 freeway is still
pending in our City and requested a Resolution be passed where the City supports the completion of
the 710 freeway. This completion will eliminate congestion and improve the City's carbon footprint.
Council Member Marquez asked for clarification of this project.
Mayor Guerra stated the completion of the 710 freeway was to extend to the 210 freeway and this
Resolution would be in support of the completion of that extension.
It was moved by Mayor Guerra, seconded by Mayor Pro Tern Vasquez, and unanimously carried to
adopt the Resolution.
OTHER BUSINESS. This item was taken out of order.
5. CASH CONTRACT NO. S.S. 635 - RESIDENTIAL STREET RESURFACING PROJECT
(CITYWIDE): AWARDED CONSTRUCTION CONTRACT IN THE AMOUNT OF $1,272,235 TO
SEQUEL CONTRACTORS, INC.: Public Works.
It was moved by Mayor Guerra, seconded by Mayor Pro Tem Vasquez, with Mayor Guerra
abstaining from project Item No. 17 and 25 as it is close to his residence; Council Member Marquez
abstaining from Item No. 15 and 9 because his residence is within 500 feet of the project; and, Council
Member Saab abstaining from Item No. 18 because the project is within 500 feet of his place of
business, to approve staffs recommendation.
8. ADOPTED RESOLUTION NO. 13-7433,A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF DOWNEY APPOINTING MARIO A.GUERRA,MAYOR,AS THE REPRESENTATIVE;ALEX
SAAB,COUNCIL MEMBER,AS THE ALTERNATE;AND,MAURINA LEE,FINANCE MANAGER,
AS THE SUBSTITUTE ALTERNATE REPRESENTATIVE TO THE GOVERNING BAORD OF THE
INDEPENENDENT CITIES RISK MANAGEMENT AUTHORITY(ICRMA): Administration.
Mayor Pro Tern Vasquez provided copies of all insurance coverage the City currently has for
2013/2014. He stated in the past the City has inquired about alternatives to liability coverage and to
share the risk pool. He stated there are about six other alternatives available to join a shared risk pool
for cost saving reasons. He requested staff return to Council with alternatives to Independent Cities
Risk Management Authority (ICRMA) in regards to liability coverage and workman's compensation.
City Manager Livas thanked Mayor Pro Tern Vasquez for returning this item to the attention of ''"'
Council and staff. He mentioned the Mayor had previously discussed this with staff. He stated the City
Attorney is currently working with ICRMA and the Human Resources Department for a resolution. He
stated ICRMA is going through a change and once that change is completed staff will have finite
numbers to provide Council for comparison.
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Mayor Guerra asked when consideration of the insurance was reviewed considering its recent
expiration. He requested the various deductibles be reviewed.
City Manager Livas stated that Interim Finance Director Ghandy has been looking into various cost
savings for the City and this was one of the items he was reviewing.
Mayor Pro Tern Vasquez stated that although the City does have a 30 year history with ICRMA cost
saving alternatives need be considered.
Mayor Guerra stated that renewal of liability insurance can be done at anytime and sharing the risk
pool is a good idea.
City Manager Livas stated that a sub-committee can be formed at the next City Council Meeting to
address these concerns.
It was moved by Mayor Pro Tem Vasquez, seconded by Council Member Brossmer, and
unanimously carried to adopt the Resolution.
ADMINISTRATIVE REPORTS Cont.
12.ADOPTED RESOLUTION NO. 13-7435,A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF DOWNEY APPROVING A PURCHASE AND SALE AGREEMENT BETWEEN
PRESBYTERIAN INTERCOMMUNITY HOSPITAL AND THE CITY OF DOWNEY FOR
PROPERTY LOCATED AT 11600 BROOKSHIRE AVENUE IN THE CITY OF DOWNEY: City
Attorney.
Mayor Guerra and Mayor Pro Tern Vasquez left the dais during consideration of this item.
Council Member Brossmer headed this item for Council discussion.
City Manager Livas stated that the item before Council tonight was a purchase and sale agreement
through Presbyterian Intercommunity Hospital(PIH)and the City of Downey. He stated in 2009 DRMC
filed for Chapter 11 bankruptcy protection. In 2012 PIH entered into an exclusive negotiation agreement
with the City.As a result of that negotiation the two parties agreed that PIH will assume responsibility of
the hospital. As part of that agreement PIH approached the City to purchase the land where DRMC
currently stands. The City negotiated an agreement with PIH to sell the property at fair market value.
PIH proposed a sell price of$9.5 million; the City had the property appraised at$9.850 million. Based
on the offer and the appraisal, staff has before Council tonight approval of the sale of the property for
$9.8 million which will become revenue to the City's General Fund Reserve account. He stated once
the agreement was approved it would be forwarded to the Attorney General for approval. If approved
the deal would be consummated in September 2013 with the City receiving payment in full for the
property.
Council Member Marquez asked if there was an agreement stating the hospital would continue
operating as a hospital.
City Manager Livas stated there was a provision covenant that runs with the land requiring PIH
remain operating as a hospital until 2030; thereafter, to 2063 it would be a hospital related use.
Council Member Saab asked if that information was discussed with all parties during the negotiation
process.
City Manager Livas stated the City negotiated and made sure there was a covenant to protect the
City's interest and to ensure the community had a hospital.
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Minutes of August 13,2013 5
Council Member Saab asked for the lease amount DRMC currently pays the City.
City Manager Livas stated the lease amount was $1.00, annually.
Council Member Saab asked if a professional appraisal had been completed.
City Manager Livas states yes.
Former Mayor McCaughan, clarified the property for sale was located at 11500 Brookshire Avenue
not 11600 Brookshire Avenue as the staff report indicates.
John Lacey, resident, asked for clarification whether the City was allowed to sell the land since it
had been gifted to the City.
City Attorney Abich Garcia stated there was no covenant recording on this property, or information
contained in the ground lease indicating the City was not allowed to sell the land.
John Lacey, resident, asked for clarification as to why the agreement would only include the
hospital remain a hospital until 2030 stating that 17 years was too short of a time span.
City Manager Livas stated anytime there is a restrictive use covenant on a land it reduces the fair
market value price. He stated PIH was making a large investment in this property and only interested in
owning and operating a hospital. The City reviewed their investment and the amount of capital and
determined the likelihood they would be operating as something other than a hospital was minimal.
Council Member Saab stated the agreement specifies until 2063 it must be of a medical related use
and the City does have control over the zoning of the land which serves as an added safeguard to the
City.
John Lacey, resident, asked if the current zoning would advocate the use of office space.
City Attorney Abich Garcia stated the current zoning is health medical HM Zone to include all health
related uses.
Council Member Brossmer stated there was no guarantee it would remain a hospital beyond the
agreed terms of the agreement.
Council Member Brossmer closed Public Comment at 9:02 p.m.
Council Member Saab stated the City had been working diligently on this matter to make sure all
concerns were addressed. He thanked City Manager Livas and City Attorney Abich Garcia for their hard
work during these negotiations. He stated this was a good decision for the residents. Aside from the
City owning the land and leasing its use for$1.00 annually, the City had very little involvement.As the
financially woes of DRMC grew, having ownership of the land was not enough to effectively assist the
hospital. He stated being in favor of the safeguards included in the agreement to ensure the land would
be used as a hospital. He stated it was his opinion that a member of the City Council should serve on
the board of PIH but that did not happen. He stated being in agreement with the fair market value price
and the City made sure a certified appraisal was performed. He stated once the transaction was
finalized,the Council will thoughtfully make use of the public funds, putting a significant portion away for
the City's reserves.
Council Member Marquez agreed with Council Member Saab and thanked staff,City Attorney Abich
Garcia, and City Manager Livas for making sure priority was place in safeguarding the City and the
residents. He stated it was important for the residents to understand that the City remains in control
regarding the zoning and the use of the land. He stated the City will be able to bring in close to $10
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Minutes of August 13, 2013 6
million on one transaction and because of the safeguards he is in support of this item.
Council Member Saab sated that PIH has a history of running an efficient hospital and the fact that
they are investing millions of dollars into this hospital, it is safe to say their intent is to run a hospital.
Council Member Brossmer stated the financial struggles of the Downey Regional Medical Center
have been a source of constant concern for the City. He is happy to have a second viable hospital that
will be able to provide care for the community and stated that having two hospitals is critical to the
community. He stated that during these difficult financial times the$10 million will allow the City to move
forward with projects that have been previously placed on hold due to the unavailability of funding.
It was moved by Council Member Saab, seconded by Council Member Marquez, and unanimously
carried to adopt the Resolution and approve the amended agreement.
Mayor Guerra and Mayor Pro Tem Vasquez returned to the dais at 9:12 p.m.
Council Member Brossmer turned the meeting back over to Mayor Guerra
STAFF MEMBER COMMENTS
City Manager Livas had no comments.
ADJOURNED
The meeting adjourned at 8:27 p.m.to to 6:30 p.m.,August 27,2013, in memory of Johnny Persico,
longtime Downey resident and Businessman; Gilbert James Van Loon, brother-in-law of Executive
Secretary Kim Sodetani, Community Development; and, the servicemen and servicewomen who
perished this past week during Operation Enduring Freedom: Spc. Anthony Maddox, 22, Port Arthur,
TX; 1st Lt. Jonam Russell, 25, Cornville, AR; Sgt. Stefan Smith, 24, Glennville, GA; Spc. Rob Nichols,
24, Colorado Springs, CO; Sgt. Eric Lawson, 30, Stockbridge, GA; Spc. Caryn Nouv, 29, Newport
News, VA; Sgt. Stephen New 29, Bartlett, TN; and Spc. Nicholas Burley, 22, Red Bluff, CA.
gfAhilk /1e. -
IA M. JIME EZ, CMC MARIO A. GUERRA, Mayor
City Clerk
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Minutes of August 13,2013 7