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HomeMy WebLinkAboutMinutes-06-26-78-Joint MeetingMINUTES OF THE CITY COUNCIL G0 78 OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING JOINT MEETING - RECREATION & COMMUNITY SERVICES COMMISSION JUNE 26, 1978 The City Council of the City of Downey held an adjourned regular meeting at 5:00 p.m., June 26, 1978, in the Council Chamber of the Downey City Hall, Mayor William L. Greene presiding. PRESENT: Council Members: Theodore H. Jackman Kenneth J. Miller Mayor Pro Tem Lyell W. Swearingen William L. Greene Mayor ABSENT: Milton R. Mackaig (excused) ALSO PRESENT: Charles W. Thompson, City Manager Ervin Spindel, Director of Community Development Martin F. Wynne, Director of Finance John T. Neavill, Director of Parks & Recreation Edwin H. Wood, Fire Chief G. Pete Stone, Police Captain Robert L. Shand, City Clerk -Treasurer COMMISSIONERS: Douglas Morrow Mike Huggins Priscilla Winslow (arrived at 5:10 p.m.) J. Art Johnson (arrived at 5:23 p.m.) Leona Aldridge Chairperson A discussion was held regarding the $1800 annual dues for the National League of Cities. Mr. Thompson commented on the clearing house function of SCAG. Each of the Recreation & Community Services Commissioners expressed concern regarding the Commission's role as appointees of the Council. Mayor Greene feels the Council will be calling on the Commission more now than it has in the past. Mr. Johnson indicated the Commission wants reassurance that its input is help- ful and appreciated by the Council. Councilman Swearingen concurred that the Commission is needed more now than ever before. Chairperson Aldridge mentioned the Council received a different proposal than the Commission on the remodeling of Apollo Park Neighborhood Center for the Family Services Agency. Mr. Neavill explained a time element involved was the reason the proposal for remodeling was presented to the Council without going first through the Commission. Councilman Jackman stated in his opinion, the Commission is greatly needed by the Council and will be needed more than ever in view of Proposition 13, with the cuts that will have to be made in the Recreation Budget. Mr. Huggins discussed the proposed Budget for the Theatre and suggested the Theatre Director's position be kept for at least six months in an attempt to develop a way to raise money to operate the Theatre. Mrs. Winslow stated the need to have competent people handling the Theatre equipment. Mr. Neavill stated all technical staff people would have to be hired on an "as needed" basis. Mrs. Maria D'Orazio, 9115 Gainford, member of the Downey Civic Light Opera Board and Downey Children's Theatre, indicated she is interested in renting the Theatre for a variety show and would need some questions answered before she can determine whether it would be financially feasible. She then proceeded to make in- quiries regarding use of a wardrobe mistress, costumes, a stage manager and ushers. Council Minutes 6/26/78 (adjourned) -1- G0 79 Mr. Neavill commented on the policy regarding the City's costumes and said a local organization, a non-profit group, could provide volunteers for the ushers, with the City assisting as much as possible. A commercial organization would have ushers assigned, as well as a stage manager, and the organization would be expected to pay those costs from the proceeds of the production. Mrs. D'Orazio spoke in favor of keeping the current Theatre Manager on the City's payroll. Mr. Thompson explained the problems in cutting $2.5 million from the City's Budget and pointed out it was felt there were other priorities over the Theatre. He responded to further questions of Mrs. D'Orazio concerning proposed personnel reductions in the Park Department. :Mrs. D'Orazio commented on the advance reservations that have been received for next year. Discussion followed. Mrs. Winslow suggested the Theatre organizations attempt to increase their prices and reduce their costs. :Mr. Thompson mentioned substantial cuts have been made in all of the City's programs over the years. :Mildred Fox, 8061 Florence Avenue, raised questions regarding citizen participa- tion in the Theatre as opposed to the Parks and the Library. Mr. Huggins commented that Theatre programs have provided great benefit to students through programs attended by the School District. Mayor Greene declared a recess from 6:25 p.m. to 6:45 p.m. The meeting resumed with Councilmen Jackman, Miller, Swearingen, Greene present; Councilman Mackaig was absent. The Recreation & Community Services Commission was excused from the meeting at 6:47 p.m. Mr. Dale Hardiman, 10348 Downey Avenue, questioned whether the elimination of the Theatre Director position would accomplish the savings proposed and suggested alternatives be examined. He outlined the reasons he feels Mr. Hume's position as Theatre Director should be retained in the Budget. Budget Study Session Mr. Thompson said he can present the information developed over the weekend since meeting with Senator Campbell, based upon SE 154, which has established more definite guidelines. Mayor Greene asked if there is a definite decision as to whether the salaries have been frozen. Mr. Thompson replied the law provides that no City will be allowed to partici- pate .in the State Assistance Funds if it grants salaries in excess of what the State grants. It also provides for abrogation of all contracts under the State law. This means the City's contracts with the employee associations would be abrogated if the City receives any funds under the State Assistance Fund. An alternative would appear to be that if the City were not to accept the State funds, which would be approximately $750,000 for Downey's share, and go ahead with the contracts, then further cuts would have to be made. Mr. Thompson commented on the new formula for the Assessor to calculate the Property Taxes and the loss it will create in the City's revenue. He suggested the Edison windfall money, which has been kept in re- serve, now be utilized for liability insurance. He explained the latest Budget update, which includes the reinstatement of three ID Technicians in the Police Department, two additional Firemen, and rescinding the demotions made in those Departments in order to meet the State's guidelines. He responded to questions of the Council. Captain Stone and Chief Wood discussed adjusted Budget figures for Police and Fire as a result of the State's guidelines for receiving assistance funds. Discussion followed. ..Mir. Thompson indicated that the reinstatements in the Police and Fire Depart- ment Budgets should qualify the City for State assistance funds. He said the Council Minutes 6/26/78 (adjourned) -2- implications from discussing this with employee associations, is that they will file suit against the City for not honoring the contracts. Councilman Miller feels the contract between the City and the employee associa- tions should stand and that the City should still be entitled to the State funds. He suggested filing suit against the State to determine what powers the City Charter has. Mr. Thompson stated the biggest question at this point is whether or not the City wants to accept the State funds. He then responded to questions regarding the City's self-insurance program and strongly feels the City should go completely self -insured on its liability insurance. Mr. Wynne commented on the proposal for self-insurance coverage and noted it would, cost the City approximately $27,000 a year for excess coverage between $1 million and $2 million. The total premiums for all coverage would be $159,000. Mr. Thompson reviewed the City's current liability insurance program, including the coverage. He pointed out the largest accumulation of claims ever paid out in any one year is $65,000. Mr. Thompson then stated that under the current program, if the City pays out the usual amount of annual claims, it would be paying out approximately $65,000; plus, one claim would have to exceed $100,000 and the total claims would have to exceed $500,000 before the insurance company would pay anything. He suggested taking the $65,000 plus the $159,000 and enter into a self -insured program on liability. Councilman Jackman suggested the possibility of purchasing the $1-$2 million coverage and then funding approximately $500,000 for the self -insured program. Discussion followed. Mr. Thompson said the State must be notified by July 15th of the council's decision regarding the State funds. A discussion was held regarding the City's obligation under the contracts with the employee associations even if it accepts the State bail -out money. Mr. Thompson feels employee groups in Charter Cities might have a legal point in pursuing this through the courts. He suggested keeping the money that would be paid to the employees for increases in a reserve fund so that if a court case is won the money would be available. Mr. Ron Yoshiki, President of the Downey City Employees Association, said a real problem exists and also people should recognize that government service costs money. He feels staff has the ability to find the means of securing additional revenue needed and that people would be willing to pay a nominal fee for maintain- ing government services to the community. It was moved by Councilman Jackman, seconded by Councilman Swearingen, and passed by the following vote to accept the State money; ask staff to bring back the updated Budget with this in mind; and that the funds for the payrolls the City is contractually liable for be retained in the Budget, so in case the employees win a suit they can be paid. Mr. Thompson indicated it is his understanding staff will develop the new Budget retaining those positions in Police and Fire necessary to achieve the level of service required in order to receive the State funds. He said he will attempt to learn from Sacramento what the City's allocation will be so that it can be included in the Budget. Councilman Jackman feels the City Attorney's opinion should also be obtained. Councilman Miller would like to meet with the Legislators to work on eliminat- ing the provision regarding employee increases from the "clean up bill." AYES: 4 Council Members: Jackman, Miller, Swearingen, Greene ABSENT: 1 Council Member: Mackaig Mr. Thompson inquired as to the Council's desire for either including or deleting from the Budget compensation and travel expenses for the Boards and Commissions. He said he would like money to be added to the Special Projects Account and an appropriation can be made at any time out of unencumbered funds if the Council chose to make a decision later. He then commented on the recommended Budget for staff development, travel and meeting expenses. Council Minutes 6/26/78 (adjourned) -3- Councilman Jackman said he would have no objection to staff development, travel and meeting expenses so long as he knows what it is for. Mr. Thompson pointed out approximately four years ago the Council directed all future travel and meeting expenses be held to the level of that year, and since that time, there have not been any major additions to the expense. This year there have been cuts in most of the areas. Each department outlined their reduced Budget for staff development and travel expenses. Mr. Thompson commented that each department and the Planning Commission have participated in development of the Capital Improvements Budget. He then proceeded to review some of the Capital Improvement programs and pointed out that if the Budget is approved, some of the preliminary work can be done. Final approval of each project would have to be brought back to the Council. Councilman Jackman inquired about the Civic Center Development Phase I Plan. Mr. Thompson explained the funds have been held in Civic Center reserve for development purposes. The project proposed is the Communications Center for Police and Fire for 911 response, which must be in operation by January 1981. At this time, the actual cost is not known. Alternate possibilities are also available. Councilman Jackman said he would like to hold decision on Capital Improvements until next month. Mr. Thompson described the Equipment Fund and Capital Outlay Budget. Mr. Wynne interjected and requested, as an alternative to delaying action on the Capital Improvements Budget, if the Council would consider setting up an appropriation for those projects reappropriated from previous years in order for the Engineering Division to continue work on these projects until the Capital Improvements Budget is approved. He said at tomorrow night's meeting a list and account numbers of the projects involved can be submitted to Council for its approval. The Council concurred. The Council then set another Budget study session for 3:00 p.m., June 29, 1978. The meeting was adjourned at 9:33 p.m, to 6:00 p.m., June 27, 1978, in the Council Chamber of the Downey City Hall for Reinvestment in Downey Workshop. Robert L. Shand, City Clerk -Treasurer William L. Greene, Mayor Council Minutes 6/26/78 (adjourned) -4-