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MINUTES OF THE CITY COUNCIL
OF THE CITY OF DOWNEY
ADJOURNED REGULAR MEETING
MAY 31, 1977
The City Council of the City of Downey held an adjourned regular meeting at
5:30 p.m., May 31, 1977, in the Council Chamber of the Downey City Hall, Mayor
Richard M. Jennings presiding.
PRESENT: Council Members:
Kenneth J. Miller
William L. Greene Mayor Pro Tem
Theodore H. Jackman
Hazel N. Scotto
Richard M. Jennings Mayor
ALSO PRESENT: Charles W. Thompson, City Manager
Ervin Spindel, Director of Community Development
Martin F. Wynne, Acting Director of Finance
Loren D. Morgan, Police Chief
Joe Ciraulo, Personnel Officer
John H. Saunders, Assistant to City Manager
Robert L. Shand, City Clerk -Treasurer
Downey Community Hospital Budget for Fiscal Year 1977-78
Mayor Jennings stated the Council has received the information it requested
last meeting concerning the proposed increase in Hospital salaries, increase in
room rates, and the beginning balance for this year. He inquired regarding the
proposed $l million for capital projects scheduled for last year, which the
Hospital did not spend.
Mr. Allen Korneff, Hospital Administrator, explained last year there was a
physician slow down which lead to a complete reversal of philosophy on the part
of the public as to their need for physicians. Capital expenditures were then
curtailed in case the money would be needed for operation of the Hospital. He
said now that the census has come back and the Hospital is moving toward normal
limits, building projects are again being planned. Mr. Korneff pointed out the
Hospital will be moving ahead on the scanner and associate building, which will
be approximately $1 million, and the other project planned is the intensive care
and coronary care units. He commented on what could occur if the Hospital does
not comply with requirements for adequate ICU -CCU services, as well as replacing
certain Hospital equipment.
Noting the amount that must be spent by the Hospital next year for projects
is higher than the total available in the Capital Equipment Reserve, Mr. Wynne
asked. if the Hospital intends to finance the balance.
Mr. Kolodziej, also representing the Hospital, replied yes. He responded
to questions regarding the estimated interest and financing charge.
Councilman Jackman asked how much of a down payment has been spent for the
purchase of the scanner.
Mr. Kolodziej replied so far the Hospital has spent $45,000.
Mr. Korneff said the down payment was negotiated at five percent rather
than the one-third expected by most companies, and he pointed out that even
though the down payment has been made, the Hospital is still checking on the
viability of the project to make sure the scanner will be used and that the
demands are still there. The decision to actually purchase the scanner will
probably be made within the next 90 days.
It was moved by Mayor Jennings, seconded by Councilman Jackman, and passed by
the following vote to approve the Hospital budget in total, including the salary
increases, excluding any increases in accommodations.
Mr. Kolodziej commented on the amounts that would be available to the
Hospital for purchasing the scanner and accessory building by January lst of
next year Also, he said, working capital is needed for a reserve because if
without the rate increase the Hospital spent the money on the scanner it would
not have any money set aside to meet any type of contingency that might occur.
A discussion was held regarding depreciation reserve, maintenance of current
operations, and the amount spent for capital expenditures last year.
Council Minutes 5/31/77 (adjourned) -I-
Mr. Louis Brame, President of the Hospital Board of Directors, said the
Hospital attempts to keep up with the quality of service. He noted considerable
hours have been spent in watchdogging the Hospital operation, and the Hospital
Board has approved the purchase of the scanner. He urged approval of the budget in
its entirety.
Councilman Greene stated he feels for this year, the Council should approve
the budget as requested, but he would object to being a part of any future Hospital
budgets unless someone from the City Manager's office or the City Council is in-
vited to set in on discussions.
Councilwoman Scotto requested the Council receive notice of future Hospital
meetings.
Mr. Korneff indicated there will be a time in the near future when the Hospital
will not be able to generate enough capital to cover all expenses. He commented on
legislation concerning provision for economic stabilization of hospitals, which
would reduce hospital rate increases to a formula.
Roll call vote on motion:
AYES: 3 Council Members: Miller, Jackman, Jennings
NOES: 2 Council Members: Greene, Scotto
Mayor Jennings stated if in the near future the Hospital has completed plans
and has bid for the scanner building with a definite purchase agreement to proceed
on a specified date, he will be the first to favor a room increase at that time.
Councilman Miller suggested the City Manager review the Hospital's program of
capital expenditures, and if he can justify that the increase is trxly needed, then
a recommendation should be made to the City Council. He pointed out he does not
have the expertise to go through the figures and know what is really best for the
Hospital.
Discussion ensued.
Mr. Korneff said this matter will be referred to the Board of Directors, and he
will report back to the Council. He noted the rate increases were scheduled to begin
July 1st.
The City Manager was requested to meet with the Hospital Board and then report
back to the Council.
Downey Chamber of Commerce Budget Request
The letter from the Downey Chamber of Commerce requesting $18,000 was presented
to the City Council.
Mr. Thompson stated that although the request is in the approval column of the
City Budget, staff has not evaluated it in comparison with other needs in the City
to where he can recommend approval of the amount.
Mr. William B. Cole, General Manager of the Downey Chamber of Commerce, out-
lined the Chamber°s request for $18,000 and commented on the services furnished, as
well as staff hours involved and costs for materials during the last fiscal year.
He commented on a survey on the use of tax funds by Chambers in neighboring as well
as other comparable cities in Los Angeles and Orange Counties. Mr. Cole responded
to questions of the City Council.
Councilman Jackman said on the advice of the City Attorney, he will abstain
from voting or commenting on this matter. He indicated he would like to see a copy
of the point of law which restricts a Council Member from voting on a matter that
involves an organization of which he is a member.
Mr. Cole mentioned he is in the process of compiling information which has beet
tested in other communities concerning this restriction on Council Members. He said
the farm is actually considered a member of the Chamber, not the individual. Mr.
Cole discussed with Councilwoman Scotto the Chambers that are accredited in nearby
cities and remarked that the Downey Chamber is now in the process of becoming
accredited. At the request of Councilwoman Scotto, he indicated he will provide to
the Council a report on the status of the Chamber°s accreditation.
It was moved by Mayor Jennings to increase the Chamber of Commerce from $10,000
to $12,000 this year and then consider it again next year. The motion died for lack
of a second.
Council Minutes 5/31/77 (adjourned) -2-
There being no objections, the request of the Downey Chamber of Commerce was
held pending a report back on the status of the Chamber°s accreditation.
At 7:00 p.m., Mayor Jennings recessed the meeting to executive session to
discuss wages. The meeting resumed at 7:56 p.m. with all Council Members present.
for Fiscal Year 1977-78
In presenting the Police Department Budget, Chief Morgan narrated a slide pre-
sentation showing the total Department budget as recommended at $3,967,840. He
said the budget reflects a four percent increase over last year and includes
personal services, equipment rental, operating services, and operating supplies.
Chief Morgan mentioned the budget shows a salary savings and includes personnel
vacancies in the Department that have not been filled. He commented on the various
increases throughout the Department budget. Chief Morgan reviewed the Department's
request for two parking enforcement officers who would be civilian employees, the
revenue generated by parking violations, and the need for two new Cushman scooters.
Spare radios are available for installation on the new scooters. He discussed with
the City Council parking enforcement in the City and itemized expenditures projected
in the budget for County ambulance service, the Investigation Fund, telephone ser-
vice, jail services, medical and physical examinations, the Automated Want Warrant
System, false arrest insurance, maintenance of office equipment, and Equipment
Rental Fund. Chief Morgan responded to questions regarding the budget for reserve
officers, the placement and hiring of crossing guards, reduction of staff in the
Community Relations office, and funding for the SEBIT Program. He also responded to
questions regarding the P.O.S.T. training program. Chief Morgan outlined the crime
prevention program conducted by the Police Department each year, including programs
in the schools.
Mayor Jennings inquired as to the trading -in of police vehicles every two years
rather than every year and whether the maintenance of police vehicles would be less
if it were done by the City.
Chief Morgan recommended against trading -in the police vehicles every other
year and feels the cost for maintenance would not be less if the City were to perform
the work. He pointed out that compact vehicles are not good for patrol work;
however, he will be recommending smaller vehicles for detective units. Chief Morgan
said for the ten hours a police officer uses his vehicle each day, he feels the
vehicle is the most important tool the City can furnish an officer to use.
Chief Morgan responded to questions regarding the proposed use of lifetime
flashlights and yearly savings after the initial purchase. He commented on the
need for a color photo processor.
Councilman Greene was excused from the meeting at 9:10 p.m.
Mr. Spindel reviewed the General Fund portion of the Public Works Budget, not
including the Water Division. He commented on the increases over last year's
budget for fringe benefits and costs for materials and operating charges. He said
the budget includes palm tree trimming and a request for beginning the street name
sign refurbishing program. No new personnel is requested except in the central
garage, which is funded out of the Equipment Fund Budget. Salaries reflect some
anticipated savings. Also, the budget does not include approximately $11,000 to be
spent. on Capital Improvement Projects and does not include the cost for personnel
in the central garage estimated at $140,730. Mr. Spindel responded to questions of
the City Council and outlined the programs contained in the budget.
A discussion was held regarding trimming, removal, and replacement of trees.
Councilwoman Scotto indicated she does not favor the planting of Italian Cypress
in the parkways where she said shade is needed.
Mr. Spindel pointed out that merchants favor the Italian Cypress because they do
not hide their signs; also, many of these trees are planted by the builder as part of
the architectural design of a building.
It was moved by Councilwoman Scotto and seconded by Councilman Jackman to
remove all of the Italian Cypress trees in the downtown area and plant trees that
give shade and are attractive.
Mr. Spindel suggested the Council conduct a hearing prior to removing and
replacing the trees.
Councilman Miller said he would not want to vote on this unless he knows what
commitments have been made by prior Councils.
Council Minutes 5/31/77 (adjourned) -3-
Councilwoman Scotto requested information regarding the cost of removing and
replacing the trees.
The motion and second were withdrawn.
The City Clerk will research this matter and report to the City Manager.
It was moved by Councilman Jackman to adjourn the meeting.
Monday, June 13, 1977, was set for a study session on the Budget for Fiscal
Year 1977-78.
Mr. Thompson stated he has been advised by Assemblyman Young's office that the
Assembly Bill to remove abandoned houses along the Century 105 Freeway did pass
unanimously by the Assembly Transportation Committee and will now go to the Assembly
Ways and Means Committee.
At 10:08 p.m., the meeting was adjourned to 5:30 p.m., June 6, 1977, in the
Council Chamber of the Downey City Hall, for study session on the Comprehensive
Zoning Ordinance.
Ro ert L. Shand, City Clerk -Treasurer
Council Minutes 5/31/77 (adjourned) -4-