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HomeMy WebLinkAboutMinutes - 12-12-13 Regular MeetingMINUTES OF THE CITY COUNCIL SPECIAL MEETING DECEMBER 12, 2013 Mayor Vasquez called to order a Special Meeting at 2:09 p.m., December 12, 2013, in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey. PRESENT: Council Members: Fernando Vasquez Mayor Luis H. Marquez Mayor Pro Tern (arrived at 2:19 p.m.) Roger C. Brossmer Mario A. Guerra 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 Lonald Croom, Fire Chief Brian Saeki, Community Development Director Arlene Salazar, Parks & Recreation Director PUBLIC COMMENT Mayor Vasquez opened the meeting for Public Comment. Having no one come forward, Mayor Vasquez closed Public Comment. 1. APPROVE THE FORMATION OF A JOB CREATION PARTNERSHIP PROGRAM BETWEEN THE CITIES OF DOWNEY, COMPTON, NORWALK, SOUTH GATE, AND THE LOS ANGELES REGIONAL SMALL BUSINESS DEVELOPMENT CENTER (SBDC), AND APPROPRIATE $20,000 FROM THE GENERAL FUND FOR DOWNEY'S FAIR SHARE CONTRIBUTION TO THE PROGRAM: Community Development. This item was taken out of order. Community Development Director Saeki provided information on the Job Creation Partnership Program as requested by the City Council and noted it was included in the staff report. He noted Downey was selected based on population, as one of the four largest communities in the Gateway COG. In regards to background information for program implementation, he noted it is still being worked on with the other communities. He introduced Mike Daniel of SBBC, who is here to answer any questions Council may have. Mike Daniel, Director of Small Business Development Center of Cerritos College (SBDC), provided information on how businesses are selected to participate in the program. Mr. Daniel reviewed the criteria and advised the Small Business Center is looking to do one training in each city, each quarter. The first day is a three hour day with a three hour seminar. There are two follow -up trainings on management and marketing and are taught by current business owners. It is a hands -on program. He advised Sam's Club is participating and funding part of the program. Council Member Guerra asked how the businesses are selected. Director Saeki stated the criterion has not been finalized, but we are going to take what the program has done in the past and may implement as a whole or in pieces. City Council Minutes - Special Meeting December 12, 2013 Council Member Guerra asked why is approving this program urgent. Director Saeki stated the Gateway Cities COG has been working with Long Beach SBDC on creating a regional -wide effort to deal with job creation. A myriad of programs have come out of that process and this is one of them. This is the first phase and if Council is not comfortable moving forward and would like quantitative information on successes or failures, we can provide that information. The Council can opt out if they like. Council Member Guerra stated his concern was that this program will be funded from General Funds. He is not against job creation and educating business owners. This is the first time he has heard some of the criteria and that the criteria can be tailored by each community. Council Member Saab asked how the cities were chosen and who will choose the businesses. Director Saeki stated the cities were chosen by population. Director Saeki stated the criterion is what has been done in the past. The City will take that information and tailor it to Downey. Director Saeki stated that he will choose the businesses that participate. Mayor Vasquez asked if this pilot program has been implemented across the nation. Mr. Daniels stated this program was run with the City of Long Beach last year and focused on marketing. The information is in the packets provided to Council. Mr. Daniels confirmed that Sam's Club is funding part of the program. Council Member Guerra asked about the sponsorships by other businesses and what is their capacity. Who teaches the classes. Mr. Daniels advised the business sponsorships are how the Small Business Development Center operates. Those businesses are partners of the Center. Mr. Daniels advised small business owners in different aspects of the field are teaching the classes. Mayor Vasquez opened this item for Public Comment. Having no one come forward, Mayor Vasquez closed Public Comment. Council Member Guerra stated this program sounds good, but he does not like making a rushed decision. He requested in the future if there is a proposal to be funded from General Funds, the Council receive additional time to consider the proposal. Council Member Brossmer asked Council Member Guerra if based on what he has heard, have his questions been answered in order to be supportive of the proposal. Council Member Guerra stated yes. Council Member Brossmer asked if the City Council is going to review all the General Fund expenses as noted by Council Member Guerra, or the additional funds from the sale of the hospital. Council Member Guerra stated that the City Council needs to look at the budget numbers before the Council can make any decisions. Council Member Brossmer stated he was under the impression Council was going to review the $9.8 million from the sale of the hospital, not total general fund expenditures, which should be done during the annual planning session in June. Council Member Guerra stated in regards to hiring new staff, yes, that should be done at the annual planning session. This is a $20,000 expense from the General Fund not in the budget. He asked how that is different than hiring new employees. Council Member Brossmer stated the difference is one -time expenses versus on -going expenses. In light of the total budget, he feels this is a reasonable expense from the General Fund and feels comfortable from outside the general parameters if staff recommends this is something the City can do. He stated he was trying to be clear on what the Council Members are accomplishing today. City Council Minutes - Special Meeting December 12, 2013 2 Council Member Saab asked: to what extent you think the businesses will benefit from this program; can the funds requested be used for something else that is more effective; and, when the program is over, can the City quantify the benefit. Director Saeki stated the reasons we hear why small businesses fail is because of the financial aspect of running a business. Not only is this program going to cover that, but it is going to cover other things as well. The recommendation from the City is approval because the City does not have any programs or assistance for small businesses in town. We feel it is a relatively small amount of money that will benefit the small businesses in the City. If 60 businesses apply, the City will be able to assist those 60 businesses in the City. Yes, the $20,000 can be used on other projects but not in a way to help Downey small businesses. The timeline is roll -out between September through December, program roll -out January through March, and again April through September, and then the latter part of the year provide a report on the effectiveness of the partnership and then promote the successes through the media. There will be some quantitative information at the end of 2014. Mayor Vasquez asked who is responsible for the marketing and outreach efforts. Director Saeki stated the SBDC is responsible for Marketing. Mayor Pro Tem Marquez stated this is an item he has been following closely and discussing with City and COG staff. As the City is looking at opportunities to help our small businesses and create jobs this is a program that the COG is very excited about. They are going with the biggest Cities within the Gateway Cities first and then eventually they will be implementing the program in the other Cities. The City has an opportunity to invest $20,000 when the overall scope and cost is a lot more. The SBDC has the experience and track record of doing these types of endeavors in other areas and working closely with small businesses is something worthwhile to invest in. Two of the other three Cities have approved this program and the COG is looking at identifying economic development, business creation, and job creation in our region post - redevelopment and after all the government- takes. I am supportive of this and utilizing $20,000 as an investment in our small businesses. Mayor Vasquez asked Mayor Pro Tem Marquez how long this program has been discussed at the COG level. Mayor Pro Tem Marquez advised when the COG is implementing its economic development tools, post - redevelopment, we heard about this particular program. When we heard it at the last Council Meeting, the COG had discussed it, but I was not aware Downey was going to be one of the first Cities. Council Member Guerra asked who requested to be in the program. Director Saeki stated the City was chosen to participate in the program because we have one of the top four largest populations in the Gateway Cities region. It was moved by Council Member Brossmer, seconded by Mayor Pro Tem Marquez, and approved unanimously to approve staff's recommendation. 2. DISCUSS CITY COUNCIL PRIORITIES AND GOALS FOR FY 2013 -2014 AND GIVE DIRECTION TO THE CITY MANAGER REGARDING PROPOSED CITY PROJECTS AND ADDITIONAL STAFFING. City Manager Livas advised this item was placed on the agenda to discuss the sale of proceeds from the hospital and what the City is going to do with, and handle the funds. The Council requested this workshop to discuss what process we would go through to select projects or defer projects. If the Council is going to talk about money, the Council should do it in the backdrop of having a forecast. Finance prepared information in regards to looking at moving forward and what the City is looking at in terms of revenue. In 2013/2014 there is a slight surplus; 2014/2015 a slight deficit; in truth, that represents less than one percent of the total budget. The City is going to have balanced budgets for the next several years even though it is showing as a slight negative. The City Council Minutes - Special Meeting December 12, 2013 Promenade, sales tax, and property tax is included in those revenues and expenditures. What are adding to expenditures are PERS costs and the grant for the Fire Engine. Essentially, we will have a balanced budget for the next several years. Council Member Guerra asked how this compares to the actual budget. He also asked if all information is based on the same number of employees, property taxes, etc. Anil Gandhy, Interim Finance Director, stated those numbers are the budgeted numbers. We started the year with $112,000 as a surplus which is the base. The projections were built based on that number. Mr. Gandy stated the information is based on the same number of employees. City Manager Livas stated all projects are modest and conservative. The Finance Department incorporated a slight 3% increase in property taxes. Council Member Guerra stated worst case scenario, with additional PERS costs and the Fire Engine grant going away, it would be a $500,000 loss. He asked for the Finance Departments sales tax assumptions. City Manager Livas stated it was a modest 3% increase, very conservative. Council Member Brossmer requested the Council receive the assumptions in the future. Mayor Vasquez asked if the trending is consistent. City Manager Livas stated yes, it is consistent with the market and with what people are projecting, in terms of being conservative. Council Member Brossmer stated there have been some changes in the use of Asset Forfeiture and asked if the numbers reflect the increase in costs. He stated he believed currently overtime was an acceptable use of Asset Forfeiture funds; however, that might not have been the case. Overtime is not a small number and asked if that number has that been used in these calculations. Mr. Gandhy stated that number was not factored in because there are some other factors in revenues that could offset the overtime costs. City Manager Livas stated there are a number of items to review. The City Council took a bus tour, visited the parks, the Downtown, the Civic Center and a project list was generated. The list the Council now has was presented at the bus tour and costs have been added. He proposed the Council talk about the process. The first step is to agree on what amount the City would like to spend and how much the Council wants to place in reserves. Each Council Member has discussed a project that would like to be done. The Council could have each Council Member pick two items, have staff track costs, add it up, and if it meets that number then the process is complete. If not, the Council can continue moving forward. The other option is to review the projects through the lens of a budget planning process, which is a comprehensive approach that can be done in the next month or so. If the Council chooses to go with the process of selecting projects, the process laid out is the option to quickly identify an amount of money and then identify projects. There is also a question about staffing. Staffing requests are also included and if the Council would like to go forward with a particular position, it can do that separately from the projects. If Council agrees with the process, the City can go forward. Council Member Guerra asked how much money the City has in Reserves. City Manager Livas advised the City has $19 million in Reserves. Council Member Brossmer asked from a high of what. City Manager Livas stated that is from a high of $38 million. Council Member Guerra stated the $38 million included $5 million from real estate ins - and -outs. It was $32 million versus $19 million collectively. City Council Minutes - Special Meeting December 12, 2013 4 Council Member Saab asked when was the City at the high of $32 million, minus the $5 million. Council Member Brossmer stated the Council saw how in tough times the City can quickly use the reserves. The drop is something the Council needs to be cognizant of. He asked how much of the $9.8 million does the Council place back in the bank. Council Member Saab asked how Reserves reduced; what was the trend. City Manager Livas stated it was reduced since 2007, and used approximately $4 million a year and stopped pulling from Reserves two years ago. Council Member Brossmer stated the City used $3.2 million, but cut $10 million from the budget. Had the City not cut the budget, and without the cooperation of the Unions, the City would have used $10 million. At that time, the Council made a decision to stop reducing reserves. He continued to state that while conservative, it is still not a positive picture. Council Member Saab stated that is he was concerned that the Council is holding this meeting prematurely, specifically because the City has not had the six month budget review. He stated he thinks its borderline irresponsible for the Council to make a decision without having the whole picture. Council Member Brossmer stated he absolutely agrees with Council Member Saab. He stated there are some real needs. He feels it would be fiscally imprudent to move forward at this time. The appropriate time would be during the City's normal budgetary process; anything outside of that could possibly be construed as being irresponsible. Council Member Marquez stated the Council has to look at a comprehensive approach; look at the whole process and do it during the budget process, to get a complete overview of the entire financial decision rather than trying to decide now. It makes sense the City go through a more comprehensive approach when the Council has more data and actual numbers. Council Member Saab stated the Council can discuss the items and prioritize what needs to be done. If there is something that is imminent the Council could decide now. He stated he would like to see additional data. Council Member Guerra stated he agrees. Looking at year -end numbers, the Council does not need to wait until June, based on the first six months for this year. The Council is here can prioritize and provide direction to staff. It would be fiscally prudent for Council to look at the first six months. Council Member Brossmer stated it is hard to prioritize in light of not having all the information. Council Member Saab stated he thinks it benefits Council to hear staff discuss certain priorities they would like Council to consider. On the tour, the Council was informed of things we were not aware of. This would be a good venue to bring those items to light. Council Member Brossmer stated in light of the above comments Council agrees that they will not be spending any funds today, but looking at and have the staff present a list and then have Council prioritize that list. Council can make inquiries and obtain clarifications from staff. At the end of the day staff has to have a product or a clear objective of what the Council is going to accomplish. It would give us more clarity of what we need to do. Mayor Vasquez stated he is in agreement with Council Member Guerra, understanding the background that there area lot of assumptions in this budget on expenses and revenues. He is not comfortable moving forward with authorizing spending. However, time is critical, and the Council is in a position to be able to prioritize given the assumptions we have today. If things change and the assumptions become too conservative or too aggressive, the City can adjust at that time. My objective is to have staff present their items and move forward and give us a suggested list of recommendations, but not proceed to authorize spending any dollars at this time. City Council Minutes - Special Meeting December 12, 2013 Council Member Lives requested clarification and asked the list Council agrees on today would become part of the regular budget process. Council Member Brossmer stated that would be his recommendation. This would become part of the list Council reviews. Council Member Guerra stated he was concerned about items that are imminent and need to be addressed now. Then return and look at the first six months in January with the year -end date, with data and background information. Otherwise it will take a year for projects to be complete. Council Member Saab stated that is why he recommended all the department heads attend today. He stated he would like to hear from the Department Heads what is imminent. Mayor Vasquez asked City Manager Lives when staff will be in a position to return with a mid- year report of the budget. City Manager Livas stated staff can return in January with a mid -year budget review. Council Member Marquez stated he would like to hear staff's presentations. Council Member Brossmer asked what staff is presenting. Council Member Saab stated he would like to hear presentations on imminent projects. City Manager Livas stated there are two important projects that need to be considered: 1) leaking roof in the evidence room; 2) ADA improvements at the Theatre for the bathroom. Other than those two, there are no other projects as important. Council Member Brossmer asked how much the bathroom renovations are at the Civic Theatre. Assistant City Manager Oskoui stated the cost is approximately $175,000 total. Council Member Guerra asked if the lobby is included in the total cost. Assistant City Manager Oskoui stated lobby for the restrooms. The other costs are for accessibility in the Theatre. It includes bathrooms, drinking fountains, exit doors, doorways, and re- plumbing. Council Member Brossmer confirmed the Police Department roof replacement is $120,000. He asked City Manager Livas how replacing a facility roof would typically occur. City Manager Livas stated typically there is money set aside every year. What the City has done over the past several years is stopped placing money aside. Council Member Brossmer stated based on the two items staff is deeming $295,000 as imminent items. Mayor Vasquez asked if the City has reviewed all the ADA compliances in the parks, etc. City Manager Lives stated the Theatre is imminent is because the City has received some concerns. Council Member Brossmer stated he would prefer staff return during a comprehensive list and have the Department Heads present requests to the City Council. Staff will bring items forward during the year if they are imminent. Council Member Guerra stated Council is not prioritizing unless we specifically state what we would like to consider. There are items in the budget that we have not seen. Return at the end of January and then look at a total picture of the budget. Council Member Brossmer stated he believes it would be appropriate to do a mid -year update and if there are increases or decreases of revenue the Council can make adjustments based on half -way through and what is projected for the following year and then make intelligent decisions moving forward. If there are imminent things then that would be the appropriate time for staff to those items forward. City Council Minutes — Special Meeting December 12, 2013 Mayor Vasquez asked if the assumptions done today for the purpose of the presentation are consistent with previous assumptions implemented as part of the budget. City Manager Livas stated what is here is a "wish list ". What staff does every year is prioritize and review and based on our meetings with each Department Heads staff goes through a priority listing of items. We do not have enough money to complete these items. Mayor Vasquez stated that was not his question. The assumptions implemented for this budget are consistent with last year's and will these assumptions be the same as those presented in next year's budget. City Manager Livas stated yes. Council Member Guerra stated that based on the assumptions seen, it is hard to believe that the City is only going to have $2.4 million dollars in revenues. Today we should set some priorities and go through a mini exercise. He suggested the staff return at the end of January with the first six months of budget numbers and obtains more detail and more information and figure out what Council would like to do. Mayor Vasquez stated he would like to move forward with this presentation and obtain additional information to be better prepared for the budget mid -year review. After this the Council can give some direction in terms of what Council considers a priority. City Manager Livas stated there are a number of items that are important to each Council Member. Council could state those items and staff can track them. Council Member Brossmer stated parks projects are not going to be able to be funded out of General Fund and the City needs to find an alternative revenue source. My recommendation is to find an alternative revenue source, and allow staff to return with that suggestion. Council Member Marquez stated he agrees with Council Member Brossmer. If we want to give our residents the best new parks they deserve, we need to get a Parks Master Plan with real numbers and the total cost to redo every park. It is the right way to do it, not minor fixes. The parks cannot wait anymore; it has been 30 or more years. Council Member Guerra stated he agrees the City needs a "big picture," but the City can spend one million now and fix priorities such as the bathrooms. The City cannot wait ten years or more from now. Council Member Marquez stated that he agrees that the items that need to be addressed now should be considered. For example, the park irrigation system are big capital improvement projects and if the City is going to rehabilitate a park completely, why would the City replace the system and then return later to dismantle it. If the Council looks at this, we need to hear from staff to look at the big picture. The Council cannot go into some of the bigger items at this time. Council Member Saab stated he would like to have each department present the items in order of importance and imminence and have City Council decide at that point. Council Member Guerra stated no matter what, the Council is going to spend money because we have to spend money in order to get the plan of how to get money; at the very least the City needs to do something comprehensive to do that. Mayor Vasquez would like to give staff direction and asked if there is anything else the City Council would like to accomplish today. Council Member Saab stated he does not believe the City Council is in the position today to determine how much money is placed in reserves and allocate to projects. Council Member Saab asked Chief Charles if the roof in the evidence room is compromising the safety of staff and validity of evidence or compromising cases. City Council Minutes — Special Meeting December 12, 2013 7 Chief Charles stated it is not compromising evidence, but it is imminent. It may be compromising staff safety. City Manager Lives stated the roof was patched and it is holding. When the weather clears up, staff will review it at that time. Council Member Saab confirmed that the $120,000 is to repair the entire roof of the Police Station. Assistant City Manager Oskoui responded in the affirmative. Mayor Vasquez asked Assistant City Manager Oskoui how the roof repairs tie in with solar panel development. Assistant City Manager Oskoui confirmed the Mayor is referring to installing solar panels as part of repairing of the roofs. He stated staff will return with a comprehensive energy efficiency report for all City facilities for the City Council in January. City Manager Livas confirmed City Council would like staff to prioritize possible items and discuss priorities to Council Members during the workshop. If the City Council would prefer for staff to comprise a list, that can be done. Council Member Guerra states yes. When staff is talking about synthetic fields, is the City considering private sponsorships for fields at some of the parks and return to Council with options on imminent items at Rio San Gabriel Park. Council Member Saab stated he believes it should come from the Parks & Recreation Director. At 3:19 p.m., Mayor Vasquez opened this item up for public comment. David Gafin, former Mayor, stressed the importance of placing money in reserves for emergencies. The City experienced an emergency approximately six years ago which required the City to cut $11 million from its budget. Even though the economy is turning around, during the slow transition the City should place a major portion of the $10 million received from the sale of the hospital in reserves. Save a major portion of the money for the future and future generations. Meredith Perkins, former Mayor, spoke about "Future Planning" for the City of Downey. Today $10 million in this world is minimal and there are a lot of things that need to be handled. Mr. Perkins provided a few suggestions on how the City can save funds, such as consolidating the yards at Independence Park or eliminating the Fire Training Tower and use the tower in the City of Santa Fe Springs. He asked the City Council plan for the future. Having no one else come forward, Mayor Vasquez closed Public Comment at 3:43 p.m. It was moved by Council Member Guerra, seconded by Council Member Saab, and unanimously approved to wait until January for the six month mid -year review process, but in the meantime staff can provide additional information on top priorities from each department. RECESS /RECONVENE Mayor Vasquez recessed the City Council Meeting at 3:45 p.m. At 3:51 p.m., Mayor Vasquez reconvened the City Council Meeting with all Council Members present. 3. CAPITAL IMPROVEMENT PROJECT NO. 14 -01, INSPIRATION NEIGHBORHOOD CENTER: APPROVE PLANS AND SPECIFICATIONS AND AUTHORIZE SOLICITATION FOR BIDS: Public Works. City Manager Livas advised this item was originally on the Regular City Council Meeting Agenda of December 10, 2013. It was pulled and continued to today. He stated Assistant City Manager /Director of Public Works Oskoui is providing the report. City Council Minutes — Special Meeting December 12, 2013 Mr. Oskoui advised that the item before the Council was continued from Tuesday, and is requesting the City Council approve the plans and specifications an authorize solicitation for bids for the Inspiration Neighborhood Center. This is a result of a two year process when the City Council directed staff to find a permanent home for the Inspiration Shuttle and decided to locate it behind the existing Learning Center. The City hired a consultant and the consultant's contract was approved and ratified by the City Council, the design process was completed, and now the City is ready to go out to bid to construct the facility. The total cost of the project is approximately $3 million through Loan Section 108. If there is an alternative, in lieu of constructing a permanent facility, the City can conceivably look at different options provided for moving the mock -up space shuttle from the current location, which we are obligated to move by the end of February. Staff has identified four locations and each one provides different opportunities with different parameters. The four locations are the City Maintenance Yard, the City Water Yard, the current location behind the Learning Center and the County property. City Manager Livas stated staff's recommendation for this item is to move forward with the bid. There have been subcommittee discussions and questions whether or not the City did not move forward with the bid, what the City would do with the mock -up. The shuttle needs to be moved. The previous Council gave staff direction to build a facility to house the mock -up. The City has pursued the Section 108 loan, we received it, the City has a design, and now staff is recommending moving forward. If the Council does not want to move forward, then we must look at alternatives. Council Member Brossmer stated he does not understand where this is coming from and asked why the City is pursuing other options, when the Council made clear how they wanted to proceed. Mayor Vasquez asked if Mr. Oskoui's presentation would provide any information on the current discussion. Mr. Oskoui advised his presentation provides information on alternatives. Mayor Vasquez stated he is allowing Mr. Oskoui to proceed with his presentation and then will open up discussion. Mr. Oskoui summarized the information contained in his presentation. Eleven options at four different located are provided for Council consideration. The relocation costs are approximately $145,000 to $177,000, and if housing is considered inside a rental or purchased tent, the cost will increase. The routes and the housing sites are depicted in the presentation. Option 1 would be to house the mock -up at the City Maintenance Yard, four different locations: parking lot outside the fence, inside the fence in front of the garage; the back -end of the yard next to a green house, finally; the final located is where the Fire Department Tower is located. Council Member Saab confirmed this is moving it while the Council determines what the City is going to do with the building, and whether or not to move forward. Council Member Brossmer stated he was inquiring why the Council is reviewing 11 options today when they voted to move forward on this item. He asked if this was a request from the Subcommittee. Council Member Saab stated there were discussions at the subcommittee meetings requesting options for consideration on whether to move forward with the project or move the mock -up shuttle until the Council decides what to do with the project. Council Member Guerra stated the discussion at the Subcommittee meetings were regarding programming. What happens after the building is built and the space shuttle is in place. What was discussed at the Subcommittee was to receive options. He stated he is concerned that the City does not have a plan. Council Member Brossmer stated he agrees with those concerns but without a building none of those options can be discussed. Where I would differ, while I totally agree we need a plan, the plan does not start unless there is a location to place the shuttle. City Council Minutes — Special Meeting December 12, 2013 9 Council Member Saab stated he does not feel comfortable spending $3 million dollars on a building without having a plan in place. City Manager Livas stated then Mayor Guerra with Shannon DeLong went to San Diego Air and Space Museum to obtain their participation. The City did do an RFP for the management of the facility and one person submitted a proposal which was from VenueTech. Council Member Saab stated the Subcommittee is trying to move forward. Council Member Guerra stated the Executive Director of the San Diego Air and Space Museum has volunteered to assist the City with restructuring the board, and organize a fundraising board. Council Member Brossmer stated this discussion is a larger discussion of the future of the facility and how the City is going to manage and maintain that facility. The second part of the discussion is what the City is going to do with the artifact. He asked if the City chose not to move forward with the Section 108 loan, what are the implications. City Manager Livas advised there would not be any ramifications. The City does not have the money in -hand. The ramification would be the City would have to use General Fund money to move the mock -up. Council Member Brossmer confirmed the under $200,000 options and the under $400,000 options have no ability to be seen; those are to wrap and store the shuttle. There is a under $400,000 option where it is going to be taken apart, wrapped and stored. The $100,000 - $200,000 options are to pack and store. It will take approximately $200,000 out of General Funds to pack and store. Then, there is $445,000 - $541,000 where temporary housing is arranged, it can be viewed, but not in a permanent structure. Council Member Guerra asked if the pack and store prohibits the City from building the facility with the Section 108 loan in seven months. City Manager Livas stated no. Community Development Director Saeki stated the approval for the Section 108 loan does not expire, but it is an approved project. There is no deadline, but the City must be prudent and cannot wait two to three years. It is my recommendation that the City build the facility within 12 months from this date. Council Member Brossmer stated he is not disagreeing, but the idea is that it would not be visible until it is moved to a secondary location. The under $200,000 option would be to break it up, pack it, and store it away. The $445,000 to $550,000 options are temporary housing, similar to how it is now, it could be viewed, but it would be funded from the General Fund. Those are the three options. If the Council chooses not to display it, then the Council should consider Option 1. If the Council chooses to view it, then the Council should consider Option 2; and, if the Council chooses to move forward as originally planned then we consider Option 3. Council Member Guerra asked what is the cost to move it and store it, then come up with a plan to build the facility. Assistant City Manager Oskoui stated the cost of moving it one -way is approximately $40,000. Council Member Guerra stated moving it to the parking area of the yard is $45,000, moving it back is another $40,000. Can the cost for moving it can be paid from the Section 108 Loan? Assistant City Manager Oskoui stated anytime the City would like to move the mock -up, it will cost approximately $40,000. Mr. Saeki stated the cost of moving the shuttle was not included in the Section 108 Loan; the funds are for the facility only. City Council Minutes — Special Meeting December 12, 2013 10 Council Member Guerra stated the only option Council is considering is $40,000 to move it and store it, which is the only additional cost. Council Member Saab stated that he believes the Council should address Option 3 before addressing Options 1 and 2, and whether the City is going to move forward with the exhibit. Council Member Saab stated that he is not supportive of the motion because there are a few items of concern. He does not feel confident with the design of the building, the amount of questions the City has once the facility is built; and, does not believe he is fully informed of what the project entails. Prior to joining the subcommittee, he was under the impression that the facility was different than what was designed. That, in conjunction with the fact that it is $3 million dollars obligated to repay, and the amount of money it is going to cost to program the facility, which is approximately $200,000 4300,000 a year. The better decision would be to decide which option to store it, and I would be more comfortable spending between $100,000 - $140,000 now deciding what we are going to do with it. The $200,000 - $300,000 to program it is another cost in perpetuity. The problem is the City is not programming the Space Center correctly which is a source of revenue Until there is a more definitive plan in place, I cannot support moving forward. Mayor Pro Tern Marquez thanked Council Member Saab for his comments and serving on the Subcommittee. The question was asked in regards to funding. How can we make it a way to provide better service to the residents and region? Council Member Guerra stated he loves the Columbia Learning Center and the space history of the City. There is no greater satisfaction to see the kids in amazement of the shuttle. The City needs to do programming. We have not authorized staff to do anything with it. It is a $3 million facility, without meeting rooms. The City had the white head proposal which Council Member Brossmer saw. My concern is that it is going to sit there for years. It does not seem prudent, but we know it is part of our history. I would like to do the white head proposal. The shuttle is not historic, but it is a part of our history. I want to save the shuttle and do this, but we need to figure out what we are going to do with it once we do that. I am leaning on moving it and then moving it back. I like the facility and want to build it, but I also want the programming. The cost is $40,000, from my perspective, but it is better than $3 million for an empty building. Council Member Brossmer has been a champion of the Space Center, so I know he shares that passion. I am leaning on moving it once, figuring out a plan, and then moving it and doing it the right way. Council Member Saab asked Mr. Saeki if the City were to obtain the Section 108 Loan, what extent would it affect the City's ability to borrow additional funds from the Federal Government and affect other programs the City can use the funds for. Director Saeki stated the City's current allocation is approximately $1 million of CDBG and fluctuates yearly. The proposed structure of the debt service for the 108 loan is the first five year is interest only at $100,000. The City has a 108 Loan now for Discovery Park and paying debt service now which will be cured, the City will have an additional $265,000 that the City will have for CDBG and debt service. If the allocation remains the same, the City can make the debt service payment without a problem. The City can do other programs and other projects, and could leverage a 108 loan to do another Economic Development project. It was moved by Council Member Brossmer, seconded by Mayor Pro Tern Marquez, and failed 1 -4, with Council Member Brossmer voting in favor of the motion, Council Members Guerra, Saab, Mayor Pro Tern Marquez and Mayor Vasquez voting against the motion, to approve Option 11, approving the construction of the facility at Discovery Park for a total cost of $3,118,800. Council Member Brossmer made a motion to approve either Options 1 or 2. Council Member Brossmer explained that there are two options left: pack and store the shuttle or purchase a tent for display. City Council Minutes — Special Meeting December 12, 2013 11 Council Member Saab made a motion to approve Option 1 or 2 and store the shuttle in one of the City's Maintenance Yards. Council Member Brossmer withdrew his motion. Council Member Saab withdrew his motion. Council Member Guerra asked if the City wants to spend $250,000 on a tent to display the shuttle, or store it and decide and come back in a year. Council Member Brossmer stated once Options 6 and 7 are off the table, then the only Option are 1 through 8, and the Council can make a decision on where to pack and store the shuttle. The Council can choose whether to pay between $445,000 - $541,000 of General Funds to approve storage similar to what the Shuttle is in now and the City either owns the building or rent the building, or not. The Council either wants to have it visible and pay to make it visible or not. Council Member Saab asked Shannon DeLong, Acting Executive Director of the Columbia Memorial Space Center, if she has a count of how many people visited the Inspiration. Ms. DeLong stated the City does not have a count of how many people have visited the Shuttle. All fieldtrips to the CMLSC are invited to visit the Inspiration Shuttle; however, not all take the opportunity and it is also open to the public twice on Saturday. Council Member Brossmer stated the teachers were not given the option to visit the Inspiration Shuttle. Council Member Saab asked if having an exhibit next door will remain the same, unvisited. Council Member Brossmer stated his hope is that the City will make changes in the management to facilitate the visits. Council Member Guerra stated that Ms. DeLong was just thrown into the position and it is not a reflection of her. She has come in and done an admirable job of fixing the issues. Council Member Brossmer stated that he believes once the Shuttle is stored the odds of bringing it back are low. The teachers were not given the option, the City has not marketed it, the City does not even have it open most of the time. My point is that the data is skewed because people were not given the opportunity to view it. Council Member Guerra requested information on the difference between Options 9 and 10. Assistant City Manager Oskoui stated Options 9 and 10 are just temporary housing. What the Department is suggesting is to cut -off the irrigation, level it off, leave the grassy area, order steel plates to distribute the weight, and then place the tent over the shuttle. Council Member Guerra stated that what concerns him about this option is that the City will never build the facility. Council Member Brossmer stated his concern is out of sight, out of mind. In the future, no one will want to spend the funds to build the facility. Council Member Saab confirmed that the difference between Options 9 and 10 is purchasing or renting the facility. He asked what the cost of renting the tent is. Assistant City Manager Oskoui stated it is approximately $6,400 a month; approximately $80,000 a year. To purchase the tent is approximately $250,000. City Council Minutes - Special Meeting December 12, 2013 , 12 Council Member Brossmer stated the City would break even in approximately three and a half years. Council Member Guerra asked if it is a better tent than the current tent. Assistant City Manager Oskoui stated it is the same tent the City has now. Council Member Brossmer requested the Council vote on whether they would like to consider Options 9 and 10. If the Council does not want to display it with Option 9 and 10 then the Council can review Options 1 — 8. Mayor Vasquez stated Council's direction was to find a plan and bring something to the Council for consideration. I cannot look at residents and say the City is spending $3 million on this project and sacrificing public safety or other programs. Supporting the non - profits is crucial to this City and although the City is making an impact on the youth, there is not a plan and I cannot authorize spending $3 million. It was moved by Council Member Brossmer, seconded by Mayor Pro Tern Marquez and failed 2 -3, with Council Member Brossmer and Mayor Pro Tern Marquez voting yes, Council Members Guerra, Saab, and Mayor Vasquez voting no, to move forward with Options 9 or 10. Council Member Brossmer stated the remaining options for Council consideration are Options 1 -8, to pack and store the Shuttle. If the City Council chooses to display the Shuttle again, it would cost $40,000. The Council is considering where it makes sense to store the Shuttle. He recommended Mr. Oskoui return and identify the pros of cons of the different options. Based on staff's recommendation, the Council can decide where the City wants to pack and store. Council Member Guerra confirmed the options involve leaving the Shuttle outside. Council Member Brossmer stated he believed there are storage restrictions and asked what those were. Ms. DeLong stated initially there were some precautions, and at this point those precautions are no longer in place. Mr. Saeki stated there are two documents that govern how the City handles this process. The first document is between the City and the developer. In that document, there are very specific ways we have to do this process. There is another agreement that is more loosely written between the City and the Government that states the City has to keep and maintain the Shuttle. Council Member Guerra requested that whatever vote is approved, the Council add the stipulation to direct staff to return to City Council to with a plan or hire an Executive Director. Council Member Brossmer stated he would like to include a one or two year period funding to hire a quality Executive Director, noting he is comfortable with Options 1 -8. The City has invested too much in the facility to keep on the current path. The City needs to hire someone who can create a plan for the facility. Council Member Brossmer left the Special City Council Meeting at 4:45 p.m. Council Guerra stated he agrees with Council Member Brossmer. He wants to make sure the Inspiration Shuttle will not be forgotten. City Manager Livas stated he agrees with Council Member Brossmer and will not allow the Inspiration Shuttle to be forgotten. Mr. Lives stated he believes, on Option 1, that is where the Fire Department Training Tower is located. He stated he does not believe that would be an appropriate location for the Shuttle and requested Option 1 removed from consideration. City Council Minutes — Special Meeting December 12, 2013 13 Council Member Saab asked how often is the Tower used and would it be an impediment. Fire Chief Croom stated the Tower is used often and it would be an impediment. The City Council agreed to take Option 1 off the table for consideration. Mayor Vasquez stated in light of today's discussion and how the Council did not want to make any financial decisions until there is a bigger picture, he confirmed the Council is ready to authorize funds for the Executive Director position. Council Member Guerra stated his recommendation needs to return to Council with direction to the City Manager. City Manager Lives stated staff will bring the recommendation back to the City Council as part of the mid -year review in January. Council Member Saab asked which is the best option as the least intrusive on the City's resources and parking. Assistant City Manager Oskoui stated the best option with the least impact to the City's operations is to move it to the Rancho property. This is with the caveat that the staff has not talked to the County to obtain permission. City Manager Livas stated if that is something the Council would like to do, there needs to be a back -up option. Council Member Saab asked for information on Option 5, the City Utility Yard, east of Water Reservoir. Assistant City Manager Oskoui stated the space is currently being used to store construction material. Council Member Saab asked about the building the City owns on Stewart & Grey and Woodruff, the portion of land to the back. Assistant City Manager Oskoui stated it is not wide enough. Council Member Guerra asked for information on line item 13 for Options 6 and 7, "OH Obstacles." Assistant City Manager Oskoui stated OH is for over -hang obstacles, when the shuttle is moved through the street some of the lines need to removed. Mayor Vasquez asked Assistant City Manager Oskoui what is his recommendation from Options 1 -5. Assistant City Manager Oskoui stated his first recommendation is to place it at the Rancho property. The second option is to place it in the Nursery at the City's Maintenance Yard. Assistant City Manager Oskoui stated if Rancho is not an option, the shuttle should be moved to the nursery at the City's Maintenance Yard. It was moved by Mayor Vasquez, to first consider moving it to Option 6, Rancho Los Amigos property, and in the event the County is unable to accommodate the City, staff would move it to the Nursery at the City of Downey Maintenance Yard. This motion died for lack of a second. Assistant City Manager Oskoui stated his concern is that if the Shuttle remains at the Nursery for two to three years it will impact operations long -term. The nursery is utilized but can be managed without it for a couple years. Mr. Livas stated from a staff perspective it gives us motivation to move the Shuttle. City Council Minutes — Special Meeting December 12, 2013 14 It was moved by Council Member Saab, seconded by Council Member Guerra, and carried 4 -0- 1, with Council Member Brossmer, absent, to approve Option 2, storing the Inspiration Space Shuttle at the City's Maintenance Yard in the Nursery Area and that it is properly secured, not exposed to vandalism or theft, and properly protected from the elements; and, allocate $152,000 from the General Fund. Council Member Guerra confirmed that $40,000 was already in the budget for moving the Shuttle because the City knew we were going to have to move it at least once. Assistant City Manager Oskoui stated no funds were in the budget for moving the Shuttle. When the City was ready to move it, staff was returning to the Council to request an allocation. Mayor Pro Tern Marquez confirmed the total cost is $152,000. Assistant City Manager Oskoui responded in the affirmative. Council Member Guerra requested Council be advised when the Shuttle is going to be moved. ADJOURNMENT: Mayor Vasquez adjourned the Special City Cou c'I Meeting at 4:57 p.m. 1 - ADRIA M. JIMENE , CMC FEWA1960 VASQUEZ City Clerk Mayor City Council Minutes — Special Meeting December 12, 2013 15