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HomeMy WebLinkAboutMinutes-09-26-75-Adjourned Regular MeetingMINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING SEPTEMBER 26, 1975 �r �1" r� x6 The City Council of the City of Downey held an adjourned regular meeting at 5:22 p.m., September 26, 1975, in the Council Chambers of the Downey City Hall, Mayor Joseph E. DiLoreto presiding. PRESENT: Council Members: Hazel N. Scotto, Donald H. Winton Richard M. Jennings, William L. Greene Joseph E. DiLoreto ABSENT: Council Members: None ALSO PRESENT: Charles W. Thompson, City Manager Mark C. Allen, Jr., Acting City Attorney Richard D. Patton, Director of Finance Loren D. Morgan, Police Chief Robert L. Shand, City Clerk -Treasurer Mayor DiLoreto explained the initial purpose of the adjourned regular meeting was for study of the Space Utilization Study submitted to the City. He said, however, be- cause the consultants were unable to attend it will be impossible for the Council to go into an open study session concerning that report. Mayor DiLoreto noted there are three matters which have been placed on the Agenda: 1. A Resolution for the Juvenile Diversion Grant. 2. A request to the City by the Chairman of the Bicentennial Committee. 3. A report and recommendation of the City Manager concerning status of the California Animal Control and their present financial situation. The Invocation was delivered by Councilman Jennings, followed by the Flag Salute led by Councilman Winton. Mayor DiLoreto welcomed Mayor William Loehr of the City of Pico Rivera. RESOLUTION NO. 3179 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AUTHORIZING PARTICIPATION IN REGIONAL APPLICATION TO CALIFORNIA COUNCIL OF CRIMINAL JUSTICE FOR YOUTH SERVICE SYSTEM The Resolution was read by title only. It was moved by Councilman Jennings, seconded by Councilman Winton, and so ordered to waive further reading. It was moved by Councilman Jennings, seconded by Councilman Winton, and passed by the following vote to adopt Resolution No. 3179. AYES: 5 Council Members: Scotto, Winton, Jennings, Greene, DiLoreto Mr. Milt Mackaig, 9131 Baysinger, Downey, Chairman of the Bicentennial Committee, commented on the three goals of the committee: 1. A kick-off dinner, which was held last Saturday night. 2. Commemorative medallions. 3. A major project for the City of Downey. Mr. Mackaig said the first project selected was the Rives mansion which was too costly. The project that has now been selected is a bronze, life-size statue of George Washington, which the artist will do for the City for $35,000. He pointed out that replicas of the statue will be made in bronze. Mr. Lyell Swearingen, 7870 Arnett, commented on plans to sell "1776" commemorative gold, silver, and bronze coins and said the miniature statues will cost approximately $25 each, and the committee hopes to sell them for $125 each. He asked for the community's support. Mr. Henry Oberndorf, 7810 Stewart and Gray Road, Downey, requested the Council to hold in abeyance any moneys advanced to the committee for the purpose of erecting a statue. He said while George Washington was the first President of the United States, his name does not appear on the Declaration of Independence. Mr. Oberndorf asked who has the legal right to sign a contract for $35,000 and whether the City will stand behind the contract if it falls short. Council Minutes 9/26/75 Mr. Chester Sutton, 8063 Otto Street, commented on the fliers that were circulated in order to obtain ideas from the community for a City project. He said although the 4th of July is the nation's birthday, the committee was looking at the year 1776 and felt George Washington symbolized the birth of the nation. Mr. Sutton stated the executive committee of the Bicentennial Committee recommended the statue, and it has been learned that if this is not pursued quickly there will be no hope of carrying this through to fruition during the "1776" celebration. Also, he said there is a good possi- bility the committee will realize these funds through the sale of the miniature statues. Responding to questions of the Council regarding the Committee's action to select the statue as the City's project, Mr. Sutton indicated approximately two-thirds of the executive committee voted in favor of the statue. Responding to further questions, Mr. Mackaig estimated the proceeds from the kick- off dinner, reviewed the status of the $1500 advanced by the City, and further estimated the income to be derived from the sale of miniature statues and medallions. He noted that not everyone enjoys a work of art such as a statue and, therefore, the committee hopes to get involved with another project that other people can identify with. Councilman Winton suggested using the proceeds from the miniature statues for Bicentennial affairs other than the large statue. Mr. Mackaig stated when contracting with the artist it will be the large statue under consideration, and the artist probably would not be interested in doing just the statuettes. Acting City Attorney Allen was asked about the City's liability of a signed con- tract between an artist and a committee appointed or adopted by the City. Mr. Allen stated Charter Section 1205 approves expenditures only to the extent budgeted, and Chapter 9 of the Charter prescribes the purchasing procedure and requires the Purchasing Agent to do the purchasing for the City. He said it would appear the Second Century Foundation does not have any authority to either directly or through its commissions bind the City. Mr. Allen commented on alternatives whereby the City could enter into a contract to make payments towards a purchase, or it could enter into a purchasing arrangement itself pursuant to a contract with the Second Century Foundation that any profits be turned over to the City. Discussion followed regarding the agreement between the City and the Second Century Foundation. Mr. Thompson stated the Bicentennial Committee is working under the "umbrella" of the Second Century Foundation. Mr. Allen indicated the Council could contract with the Second Century Foundation to advance moneys for payment through the sale of medallions, coins, statues, etc., however, if the items were not sold, there would be no repayment. Mayor DiLoreto spoke in favor of supporting the project. Mr. Oberndorf commented he has the impression the committee is operating illegally in that there are no rules or bi-laws and a "doing business as" has not been published. He said if the committee is operating under the "umbrella" of the Second Century Founda- tion, these should be the requirements. Mr. Allen stated it would appear the committee is not doing business but is meeting and developing ideas to be undertaken by the City or the Second Century Foundation; that it has no legal power other than to make recommendations to the Second Century Foundation, City Council, and other bodies. He said the best way would be to authorize the preparation of a contract with the Second Century Foundation in order to implement this. it was moved by Mayor DiLoreto and seconded by Councilman Jennings to recommend that a contractual agreement be entered into with the City of Downey and the Second Century Foundation, similar to the previous agreement, and that the City advance the requested sum of $9,000 on the same basis and with the assurances the money will be repaid in the event a profit is derived. Further discussion ensued. Councilwoman Scotto indicated she does not see a need to rush into this. Councilman Greene asked if voting yes to the motion would be automatically approving the statue. Councilman Jennings said the $9,000 would go towards a commemorative project. Council Minutes 9/26/75 -2- Councilman Winton agreed with entering into a contractual arrangement, but disagreed to the advancement of funds for a statue. He said he is in favor of entering into a contractual arrangement, he would like to see the committee reconsider its thoughts relative to projects, and he would like to back the project if .he thought there was something that would be of significant value to the future of the City. Mr. Sutton reminded the Council that if this is delayed they will not be able to get the statue because the artist has been delayed approximately six weeks already. Roll call vote: AYES: 2 Council Members: Jennings, DiLoreto NOES: 3 Council Members: Scotto, Winton, Greene Motion failed. Reporting on the present status of the conditions with the California Animal Control (CAC), Mayor DiLoreto stated he has spent the last three days going over the recent events which have transpired concerning CAC's financial plight. He said since the last Council meeting, wherein the Council voted to advance $10,000 for the continued operation of CAC, the finance departments of the cities of Downey, Pico Rivera, and Norwalk have had an opportunity to examine the financial condition of the business, with the concensus being that CAC is financially bankrupt, owing in excess of $118,000 and having not met their payroll taxes for the last five to six months or paid its employees for the last few weeks. Mayor DiLoreto mentioned in meeting with Mr. Smith of CAC it was indicated by Mr. Smith that it would be impossible for him to continue without the support of the cities, and even with the $28,000 to be advanced by the three cities he had no assurance the company could operate. He said it appears the company is bankrupt, and it would not be advised to continue operations with the company; that the Council is faced with what it wants to do or what avenues it wants to take in order to provide needed animal control services to the community. Mayor DiLoreto noted one of the alternatives would be to contract with the County, with the SPCA being unable at the present time to provide services to the City of Downey because of contractual arrange- ments with other cities. He said another alternative would be for the three cities, either individually or jointly, to undertake by way of a cooperative district agreement for contractual arrangements for a southeast animal control district to administer services to the community; the cities of Pico Rivera and Norwalk had indicated their desire to enter into some kind of an agreement. City Manager Thompson concurred that on the basis of the preliminary financial statement prepared by the joint city team of auditors, it must be concluded CAC is in a shakey fiscal position, and it is the general conclusion it would not appear likely the company could expect to break even on the basis of operation as of the end of June 30, 1976. Mr. Thompson commented on meetings with the city administrators, officials, finance people, and City Attorneys from the cities of Norwalk and Pico Rivera in an attempt to develop a draft of a proposal which the three cities could perform their responsibilities in the animal control field. He said the following is recommended: One, to terminate the agreement with CAC; secondly, to enter into an arrangement with CAC for whatever facilities will be needed; and thirdly, that the City of Downey follow with a contractual joint powers agreement with the cities of Norwalk and Pico Rivera to provide good animal control services on the basis the three communities would respectfully develop. Mr. Thompson commented on the projected revenues that could be expected through the tri-city operation. He said in the event this is approved, the next step would be to develop a three -city agreement and provide in such a way that other cities could join into a regional kind of facility. He pointed out the City Attorneys of the three cities have developed an agreement with Mr. Smith has signed, subject to the review of his attorney, and is ready for the Council's review. Acting City Attorney Allen stated the Council has before it an agreement prepared by Mr.. Brown, the City Attorney of Norwalk. He said the document signed by Mr. Smith, President of CAC, is slightly different in that there is an addition at the beginning making it an agreement instead of confirmation of an agreement, and it is conditional upon the approval of the attorney for CAC. Mr. Allen added the agreement involves the approval of the cities of Manhattan Beach and Seal Beach, in addition to the cities of Downey, Norwalk, and Pico Rivera. Mayor DiLoreto explained during his discussions with the Mayors of Norwalk and Pico Rivera it was their desire to limit the size of the district to the cities in the southeast area. Mr. Allen suggested to the Council the following course of action: To give notice of termination of the contract with CAC; authorize the Mayor to execute agreements to purchase necessary equipment to provide the services, and that they may be purchased from CAC; and then any of these actions can be taken in cooperation with other cities and in that fashion would permit the City of Downey to negotiate a new agreement without Council Minutes 9/26/75 -3- Manhattan Beach and Seal Beach the Mayor or City Manager some agreement. TAD He said his thought in this regard is to leave either flexibility in dealing with the precise language of the Mr. Thompson suggested that the cities of Manhattan Beach and Seal Beach be deleted. He said if the Council is in agreement with the concept,to authorize the Mayor or City Attorney and himself to negotiate the final draft of the contract and bring it back to the Council. Councilman Jennings questioned the status of the Council's previous motion to approve advancing $10,000 to CAC conditional upon an assignment of the amounts owed it by Huntington Beach since it has been learned the City of Huntington Beach does not intend to pay. Mr. Thompson suggested the motion be rescinded. He noted, however, there has never been an agreement made with CAC regarding the advancement of funds. Councilman Jennings inquired how the City could be certain the unencumbered assets of CAC are unencumbered; that if a loan had been obtained, would the loan have priority over the City's deed title to the dog runs if purchased. Mr. Allen replied before the City parts with any money and takes over the dog runs it should be checked with various public officials to see whether CAC has recorded any pledges of that equipment. He stated that before the City actually signs any agreement certain things should be clarified. Councilman Jennings asked if it would be possible for the City to operate its own trucks with City employees and rent space at the County pound to house the animals, beginning tomorrow. Mr. Thompson said he feels reasonably certain the County would agree and bill the City for pound services. However, he noted there are two other alternatives to consider: 1. That although the SPCA has indicated it does not have pound facilities to handle the City of Downey, they would work with the City on a regional basis. It has been indicated that a number of cities in the area might want to get together on a tri-city basis and provide a better, more modern pound. 2. There is an immediate problem of providing pound services if the City does not go to the County; there was the consideration of the other two cities, namely Norwalk and Pico Rivera; and it is felt if the facilities were available this would be a viable alternative. Responding to a question regarding how many trucks and men would be needed for Downey to run its own system, Mr. Thompson replied he thinks there would have to be a minimum of two men available on a shift basis and one truck. Police Chief Morgan said under the County pound service highly paid police officers were covering the pound service during the night hours, however, the CAC did provide that service. It was noted the License revenue collected by CAC as of September 22nd is approxi- materly $44,000. Mr. Allen strongly recommended the Council take action to terminate the contract. Councilman Jennings said he is in favor of the City securing its own truck and employee and contracting with the County to house the animals. Mr. A. A. D'Alessandro, 8201 Fourth Street, Downey, Chairman of the Health and Environmental Sanitation Committee, commented that the committee has reviewed this matter at length and made approximately six visits to the CAC facility. He said the animal runs were good in concept but will need to be reconstructed to correct a drain- age problem. Mr. D'Alessandro suggested the Council give serious consideration to the alternative services mentioned. He explained he was informed by a representative of the County that they would be available to assist during the weekend if the City could not find anyone to run the animal control facility. He indicated if the tri-city alternative is considered, then he would suggest a committee be formed for equal representation of each city and the best people available to run the new entity. Councilwoman Scotto mentioned she was informed that Ms. Gladys Sargent, an author of most of the animal humane legislation in the State, visited the CAC facility and found it to be clean and the animals excellently handled. Ms. Pat Andrews, 10345 Western, said Ms. Sargent was brought to CAC to assist them financially. Council Minutes 9/26/75 -4- � S wJ0 Councilman Jennings asked if the contract can be terminated immediately. Mr. Allen replied the letter is ready, it can be read, placed on file and approved, and the Mayor authorized to sign. He said Mr. Carl Newton of the City Attorney's office has reviewed this and advises that the animal control is in default of the agreement because they have not furnished the performance bond. Councilman Jennings asked if the Council can terminate immediately or if it must give 30 days notice. Mr. Allen stated this may become the subject of some litigation, and he thinks the City strengthens its position substantially in terms of revenue that will be collected in the next eight or ten days if it gives notice of termination. He pointed out that Mr. Sorensen, the City Attorney, has expressed the opinion that the Council should give notice of termination, and he concurs. Mr. Allen also indicated any discussion regard- ing possible litigation should take place in executive session. Mayor DiLoreto recessed the meeting to executive session at 7:21 p.m. to discuss matters of litigation. The meeting resumed at 7:41 p.m. with all Council Members present. It was moved by Councilman Jennings, seconded by Councilman Winton, and passed by the following vote that the Mayor be authorized to sign and mail to California Animal Control at their official address of 8521 Edison Way, Huntington Beach, California, a notice of termination and a direction that they cease and terminate all collections of license fees and account to the City for the fees that they have collected; authorize the City Manager to take whatever steps are necessary to handle animals, including the animals that are now at the California Animal Control; and that this Council meeting when adjourned be adjourned to Monday night (September 29th). AYES: 5 Council Members: Scotto, Winton, Jennings, Greene, DiLoreto Mayor DiLoreto said the Council will adjourn this meeting to 5:15 p.m., September 29, 1975; that if it is necessary to have a meeting at that time it will be held. Mayor DiLoreto indicated the City Manager will be in a position to explore what avenues are available to the City, including the strong possibility of the advisability on his recommendation as to whether or not cities should enter into a tri-city agree- ment to provide services. Mayor DiLoreto adjourned the meeting at 7:43 p.m. to 5:15 p.m., September 29, 1975, in the Council Chambers of the Downey City Hall. A 4-5, La , , , I �/ - Robert L. Shand, ity Clerk -Treasurer Joseph E. OiLoreto, Mayor Council Minutes 9/26/75 -5-