HomeMy WebLinkAboutMinutes 06-10-15 Special MeetingMINUTES OF THE
CITY COUNCIL OF THE CITY OF DOWNEY
SPECIAL MEETING
JUNE 10, 2015
The City Council of the City of Downey held a'Special City Council Meeting on June 10, 2015, of
3:42 p.m., in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey,
California, Mayor Marquez presiding.
PRESENT:: Council Members
Luis H. Marquez Mayor
Alex Saab Mayor Pro Tern
Sean Ashton Council Member
Roger C. Brossmer Council Member (arrived at 3:50 p.m.)
Fernando Vasquez Council Member
ALSO PRESENT: Gilbert Livas, City Manager
Yvette M. Abich Garcia, City Attorney
Adria M. Jimenez, CMC, City Clerk
John Oskoui, Assistant City Manager
Shannon DeLong, Assistant to the City Manager
Carl Charles, Chief of Police
Mark Gillaspie, Fire Chief
Mohammad Mostahkami, Public Works Director
Arlene Salazar, Parks& Recreation Director
Aldo Schindler, Community Development Director
Anil Gandhy, Finance Director
PUBLIC COMMENT
Mayor Marquez opened the meeting for Public Comment. Having no one come forward, Mayor
Marquez closed Public Comment.
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1. PRESENTATION AND DISCUSSION OF FISCAL YEAR 2015-2016 PROPOSED CITY BUDGET:
Finance.
City Manager Livas started the presentation advising Finance Director Gandhy will provide a
background of the City's Budget and each Department Head will provide additional information.
Compared to five years ago, the City is now 20% less in staffing and the City's has kept overall
personnel costs controlled. The budget is $162 million total with a $75 million operating budget and
a slight increase from last year. There is an additional Economic Development Manager position in
this budget and slight modifications to other positions, which will increase the budget, but PERS
costs will be controlled. This proposed budget is a strategic budget that accomplishes the City
Council's Goals and Priorities. The budget also reflects slight economic development growth. City
Manager Livas thanked the subcommittee of Council Members Saab and Brossmer for their work
on this budget and also thanked Department Heads.
Finance Director Gandhy stated he is presenting a balanced budget for Fiscal Year 2015/2016.
He noted the budget is a moving document and will be recommended for adoption on June 23`d.
The fiscal year 2015 -2016 budget reflects $32 million in reserves, $75 million for operating costs,
$75,817 for appropriations, with a surplus of $2,000. The City's ending reserves (June 30, 2015) is
$32,124,151. The proposed Capital Improvement Project (CIP) Budget for FY 2015-2016: reserves
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Special Meeting — June 10, 2015 1
are $32,124,151; Capital and Infrastructure Needs are $2,476,800 and proposed ending reserves
(June 30, 2016) is $29,647,251.
Director Gandhy noted the $2.5 million for capital improvement and infrastructure needs are for
the Theatre and Library and include: BJR Community & Senior Center AC /HVAC Web Based
Control Installation; Library/Theatre -HVAC System Improvement - Phase 2; Civic Theater
Miscellaneous Improvements (sound system upgrade, banners, lighting); New Theater Generator;
Rio Hondo Golf Course Telephone System Upgrade; Civic Theatre Restroom Improvements; and,
the Downey Civic Theatre Permanent Banners & Up- lighting. New CIP funding requests for this
budget include: JPCC Exit Door and Exit Ramp; Carpet Tile Replacement; Golf Course Walkways
and Adjacent Sidewalk Improvement; and, Citywide Playground Structure Safety Repairs and
Replacement for a total of $139,800.
Director Gandhy continued by stating revenue is projected to be higher by 6% compared to the
prior year which is $4,357,222. General fund appropriations are projected to be higher by 6%
compared to prior year which is $4,318,022. Property Tax, Sales, Tax, Utility Users Tax (UUT)
combined is 66 %, which is the exact same percentage of the City's Public Safety Budget. Mr.
Gandhy referred to the General Fund Revenue by Type for Fiscal Year 2014 -2015 and compared it
to Fiscal Year 2015 -2016. Property Tax for FY 14/15 and 15/16 shows a $1.4 million increase;
Sales Tax shows an increase of $1.3 million, noting it should have been $400,000, but the triple flip
is going away. Utility Users Tax is up by $295,000; Franchise Fee is up by $55,000; JPC and
Ambulance Fees is reduced from last fiscal year by $745,800; charges to other funds total
$121,735; and, transfers from other funds is reduced by $608,741, for a total of approximately $4.3
million. For UUT the electric charge is higher due to an increase in rates. For FY 2014/2015 the
City will make its projections. There is a nominal increase in Property Tax and Sales Tax.
Council Member Brossmer stated it is a large monetary increase to the estimate for electricity
for FY 14/15. He asked where the City will end this year. Mr. Gandhy advised approximately $3.7
million will be the FY 14/15 year end, which will be a $300,000 increase instead of $1 million
increase.
Mr. Gandhy continued by reviewing the expenditures broken down by department, noting Police
and Fire is 65% of the City's General Fund Expenditures. The increase in PIERS costs for next year
is $1.5 million from the General Fund, and the $1.3 million SAFR Grant is going away. Parks&
Recreation general fund expenditures is $5.9 million, which does not reflect the proposed CIPs for
the Theatre and Golf Course, which are not from the General Fund.
Council Member Saab requested clarification on the CIPs and funding sources for each project.
Mr. Gandhy continued by reviewing the City's Economic overview noting revenue and
expenditures for FY 2014 - 2015 is aligning with the budget; the economy continues to show growth;
unemployment is at its lowest since September 2008; taxable sales and property values continue to
grow; and, construction is doing well. A few of the challenges are: catching up on deferred
maintenance; revenue growth is needed to keep track with expenditure growth; continue to re -align
budget based on what the City can truly afford; and, ongoing increases in pension costs. Director
Gandhy reviewed the PIERS Impacts to the General Fund noting the reasons for increases: change
in discount rate (already factored in); changes in actuarial methodology (started in FY 2015 -16);
and, changes in mortality assumptions (will start in FY 2016 -17). For Public Safety the estimated
increase over four years is 13% and 51.1 % for FY 2019 -20. For the Miscellaneous Employees the
estimated increase over four years is 8.1 % and 34.6% for FY 2019 -20. Director Gandhy continued
by reviewing the Reserve Percentage of Operating General Fund noting the difference from FY 06-
10 (65 %) to FY 15 -16 (38 %).
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Special Meeting — June 10; 2015 2
Council Member Brossmer stated the graph clearly illustrates why reserve funds are needed.
The reserve increase in FY 13/14 is due to the sale of Downey Hospital to Presbyterian
Intercommunity Hospital, which is a one -time transaction. The reductions in reserves for FY 11/12
and FY 13/14 were strategically made in order to make one -time improvements or purchases to
improve assets. The City's Budgets during those fiscal years were balanced budgets.
Mr. Gandhy "reviewed the Finance Department's accomplishments noting: Phase 1 of the online
water billing is completed and 600 people signed have signed up. Phase 2 is in the process of
completion; the City has a Balanced Budget; the Department Received Government Finance
Officers Association (GFOA) Budget Award and State of California Budget Award for FY 2014 -15
Budget Document; the Department provided frequent financial updates to Budget Subcommittee;
overhauled outdated City communications systems; aided in the development of a five -year CIP
plan with Public Works Department; reorganize Finance Department for efficiency and
professionalism; and, upgraded the Finance Manager position to Assistant Finance Director.
Council Member Brossmer requested Departments specifically review the difference from
current fiscal year to next year and the proposed budget only. This will assist the Council in
making decisions on the increases to the budget.
City Manager Livas advised "there is not a whole lot of difference in this year's budget. There
are nominal increases on personnel costs.
Council Member Saab stated he would like the departments to review their goals for this
upcoming fiscal year.
City Clerk Jimenez reviewed Department goals for this fiscal year: hire department staff (Deputy
City Clerk &_P/T Administrative Clerk); implement digital Fair Political Practices Commission 700
Form filing; update city records retention schedule; and, create internal and external policies.
City Attorney Abich Garcia reviewed Department goals: continue to reduce the number of
lawsuits against the City; continue to reduce the City's Legal expenditures; continue to assist the
Risk Manager on handling of claims /interaction with ICRMA; and, develop a system of tendering
claims/ lawsuits to responsible third parties /third party insurance companies. She noted the legal
fees the City incurs is the same as last year as specialized litigation is not covered under the liability
budget.
Council Member Saab asked how much the City spent in legal fees last year. Finance Director
Gandhy stated he will send the exact total but the requested budget amount is $400,000, which is
the premium to ICRMA.
City Manager Livas reviewed his Department's goals: focus on organizational succession
planning; renew the City's Solid Waste Services Contract; update administrative regulations; assist
Finance with budget forecasting models; increase number of grant applications submitted and grant
funding for City services; and, continue to engage citizens through the use of new technology and
social media.
Council Member Saab asked how successful the City has been in obtaining grants. City
Manager Livas stated the City was successful but not without a lot of additional staff time.
Irma Youssefieh, Human Resources Director, reviewed Department goals` completion of labor
negotiations with four safety units; strengthen Human Resources staffing to meet skill needs in the
area of benefits administration /risk management (workers compensation & safety to meet OSHA
mandates); implement a comprehensive new employee orientation process; enhance supervisory
and customer service skills training; initiate Maintenance MOU provision on _Safety Committee
formation, etc.; and, continue to evaluate software needs for improved efficiency.
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Special Meeting — June 10, 2015 3
Shannon DeLong, Assistant to the City Manager /Library Director reviewed Department goals:
institute 1 GB broadband internet and WiFi access; install virtual libraries at three City parks; create
reservable meeting /study rooms; create a new library catalog with expanded functionality; and
conduct a needs assessment and plan of service.
Council Member Brossmer asked when the virtual library branches will be open. Ms. DeLong
stated in the spring 2016.
Council Member Saab asked about the trend of ebooks. Ms. DeLong stated one ebook license
can cost anywhere from $80 -$120. A patron can purchase the ebook on Amazon or other sites for
much less. Currently, the Library has 200 ebooks available.
Council Member Saab stated the Library is mostly used by the residents and asked if there is
either a short term or longterm plan for programming. City Manager Livas stated staff can return
with a strategic plan and assessment and allow the Council to choose which items to fund and
which items to bring back at mid -year.
Council Member Brossmer asked about the Library's facility improvement plan and any one-
time improvements. Ms. DeLong stated the facility will be receiving anew roof this year as one of
its improvements.
Community Development Director Schindler reviewed a few of the Department's goals: efficient
permit process with accurate and timely plan review; hire of an Economic Development Manager;
and, establish a downtown assessment district.
Council Member Vasquez asked about Transient Occupancy Tax and Development Impact
Fees. Finance Director Gandhy advised those fees will be included in upcoming fee study.
Council Member Saab asked if the Department is going to perform and complete a permit
process assessment. Director Schindler stated yes, the Department is going to conduct an
assessment on how to improve permitting services.
Council Member Vasquez asked if the sale of properties is incorporated into the budget.
Finance Director Gandhy stated, yes, at $400,000. Director Schindler stated the sales of the
residential property funds went back into affordable housing. The parking lot at 8132 Third street,
9066 Firestone, and the Theatre funds are challenging to estimate because they are based on
condition of the sites.
Police Chief Charles reviewed the Police Department's goals: purchase body worn cameras for
all patrol officers; continue to expand the Neighborhood Watch Program; continue to use social
media as a means of community engagement; seek grant opportunities to fund essential services;
maintain staffing levels to ensure high level of service to community; continue to address quality of
life issues; provide the highest level of on -going training for all police personnel; promote school
safety through continued and on -going collaborative efforts with our schools; and, increase public
outreach and accessibility.
Director Salazar reviewed the Parks -& Recreation Department goals: increase park safety with
the Downey Police Department; request additional Police presence during peak park hours;
purchase and install APod surveillance equipment at Apollo, Independence, Treasure Island and
Wilderness Parks, and Rio Hondo Golf Course; initiate implementation of the recommendations in
the Parks & Recreation Master Plan CIP's and program strategies; continue to promote Healthy
Downey - Program and implement recommendations from Healthy Downey Strategic Plan for
increased community health and vitality; foster and /or expand community and cultural offerings;
Special Olympics Host Town Downey Program; host 2nd Annual International Food & Music
Festival; host 3rd Annual Dia De Los Muertos; host 2nd Annual Rock — N — Ride for Veterans bike
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Special Meeting — June 10, 2015 4
ride event; host Open Streets Downey (closed streets course event for walker, bikes, runners:
replicating LA's CicLAvia model in smaller scale funded through MTA grant); improve transportation
connectivity by implementing Council recommendations for Transit Program restructuring of
DowneyLink fixed route and Dial -A -Ride; install standardized trash cans and picnic benches at
Treasure Island and Wilderness Parks; implement and operate the new summer after- school
STEAM Works program at existing ASPIRE sites (funded by Downey Unified School District).
Mayor Marquez asked about the Park Ranger Program. City Manager Livas advised the
program will be a pilot program consisting of part -time personnel managed by the Police
Department. Mayor Marquez directed staff to return with options for the program.
Council Member Vasquez asked if the City has received any feedback on RMl Security Services
in the Downtown area. Director Schindler advised they are doing a great job.
Council Member Vasquez asked- if the Rio Hondo Event Center will have free wifi. _ Director
Salazar stated yes, inside the Center as it is part of the contract. Staff is working with Public Works
in regards to access outside the Center.
Fire Chief Gillaspie reviewed the Fire Department's goals: improving Fire Prevention
capabilities; replace two fire _engines; improve emergency medical service_ delivery; address fire
station facility needs; initiate an officer development program; address technology needs; provide
additional administrative support staff; improve diversity throughout department; initiate;
comprehensive strategic planning; and, address succession planning needs.
Council Member Brossmer commented that the paramedic service is a benefit to our residents
and it is disappointing that the City cannot implement this service because of labor issues.
Council Member Vasquez agreed noting an outside third party has concurred this is the better
option. Fire Chief Gillaspie stated the Department felt the responsible thing to do was to conduct an
outside study, which it has done. The study was received in spring and the recommendation was in
favor of the paramedic service.
Council Member Saab asked how many calls are medical- related versus non - medical related.
Fire Chief Gillaspie stated 80% of the calls received are medical related; 20% are non - medical.
Chief Gillaspie reviewed Fire Department staffing, noting the Department is fully staffed with
sworn personnel; however, is understaff with Fire Prevention staff. The Emergency Preparedness
Coordinator was added to the budget and noted that Andrew Stevens has done an outstanding job'
and is a great asset to the City.
Council Member Vasquez commended the Fire Chief for the diversity of the department. He
requested response time information. Chief Gillaspie stated at the moment response time is
approximately five minutes. The national standard is 90 %, with the average hitting 5 minutes.
Council Member Vasquez asked if the 80/20 is a nationwide trend. Chief Gillaspie stated yes, is
has been a trend for some time and it will continue in that direction.
Council Member Vasquez inquired about the Department's overtime budget. Chief Gillaspie
stated personnel costs are within budget. The understaffed overtime budget is going to go over,
with an average leave time of 750 hours per the Memorandum of Understanding. Council Member
Vasquez requested to see an itemized breakdown of overtime budget at the next meeting.
Director Mostahkami reviewed the Public Works Department's goals: complete improvements
on Lakewood Blvd. and Firestone Blvd.; complete the annual residential roadway pavement
rehabilitation through resurfacing (Area B); complete annual sidewalk and other concrete
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Special Meeting — June 10; 2015 5
improvements (Area D); continue implementing the city- wide, multi -year street name sign
replacement program; complete Phase II construction of walking /jogging trails at Furman and
Apollo Parks ; increase volunteer participation for Keep Downey Beautiful Program; continue
painting of rusted galvanized sign posts through volunteers; and, complete Downtown Downey
lighting upgrade /improvement.
Council Member Ashton referred to the Public Works Department Budget bar graph and asked
about the actual budget for FY 2014 -2015 of $35 million versus the proposed budget for FY 2015-
2016 of $72 million. Is the difference due to funds not spent or funds for Capital Improvement
Projects? Director Mostahkami advised the $72 million budget total includes $44,700,000 for CIPs,
which is incorporated into the Public Works Department Budget. Director Gandhy stated the budget
is decreased by approximately $800,000 for next fiscal year which are not to due to cuts, but based
on the type of CIPs proposed. City Manager Livas stated the reduction could also be attributed to
the City receiving a grant one year and not the next year.
Council Member Vasquez asked when Lakewood Blvd. and Firestone Blvd. will be complete.
Director Mostahkami stated construction will commence in a few months and it will be complete by
the end of this year, 2015.
Council Member Vasquez asked about the budget for street residential repaving of $2 million
compared to this current fiscal year of $1.2 million. Director Gandhy stated the budget was
determined on Council's priorities.
City Manager Livas advised Columbia Memorial Space Center Executive Director Dickow was
not available to present his budget; thus, this portion of the presentation will be returning to the City
Council at a later date.
Council Member Saab asked if there are any projections on sales tax revenue for The
Promenade. Finance Director Gandhy stated staff spoke with a sales tax revenue specialist and
received an estimate of approximately $1.5 million. City Manager Livas noted the incoming revenue
to the City in 2017 is going to be used to cover PERS costs.
Mayor Marquez opened this item for public comment. Having no one come forward, Mayor
Marquez closed public comment.
Council Member Ashton thanked staff for compiling the budget and the presentation.
Council Member Vasquez thanked City Manager Livas and the Department Heads for
completing the budget. This budget shows that the City has a plan in place, and that we need to
keep the pace to deliver quality services to our residents.
Council Member Saab thanked staff and City Manager Livas and Department Heads for doing a
fine job. He stated this budget is stable and is holding the line. It is a conservative budget with a
priority to public safety. He stated he was glad to see increase spending on road repairs. He
requested the PERS issue be addressed in the next couple of years, but expressed his overall
gratitude. He thanked Council Member Brossmer for working on the subcommittee.
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