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HomeMy WebLinkAboutMinutes 07-26-16 Regular MeetingMINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY REGULAR MEETING JULY 26, 2016 The City Council of the City of Downey held a Regular City Council Meeting on July 26, 2016, at 6:34 p.m., in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California, Mayor Saab presiding. PRESENT: Council Members: Alex Saab Fernando Vasquez Sean Ashton Roger C. Brossmer Luis Marquez Mayor Mayor Pro Tern Council Member Council Member Council Member ALSO PRESENT: Gilbert Livas, City Manager Yvette M. Abich Garcia, City Attorney Adria M. Jimenez, MMC, City Clerk Shannon DeLong, Assistant to the City Manager Carl Charles, Chief of Police Mark Gillaspie, Fire Chief Mohammad Mostahkami, Public Works Director Monica Ortiz, Interim Recreation Manager Aldo Schindler, Community Development Director Anil Gandhy, Finance Director Alicia Duarte, CMC, Deputy City Clerk The Invocation was delivered by Mayra Ramos, Downey Chamber of Commerce. The Flag Salute was led by Winners of the "If I Were Mayor" Student Contest. COUNCIL MEMBER ANNOUNCEMENTS; REQUESTS FOR FUTURE AGENDA ITEMS; CONFERENCE /MEETING REPORTS Council Member Ashton reported attending an award ceremony for the Young Legislator's Program with Assembly Member Cristina Garcia. He reminded the audience of Downey Youth Commission vacancies and applications being accepted at this time. Council Member Marquez welcomed the audience to the Council meeting. Mayor Saab commented regarding the purpose of the Youth Commission and encouraged the youth to apply. He thanked the Chamber of Commerce for the recent ribbon cutting events. He acknowledged Chamber of Commerce Executive Director Michael Calvart and Board Member Jeanie Woods in the audience. He announced upcoming events: Chamber of Commerce City Affairs meeting; Summer Concerts at the Park; Learn 4 Life Concept Charter School ribbon cutting; Downey's Finest Mixer; Cerritos College Music & Sports Festival; Downey Library Mini Comic -Con event; Aquatic Center Family Fun Night; National Night Out; PIH Hospital Emergency Room Groundbreaking; Ulta Beauty ribbon cutting; Centro Medico Su Salud ribbon cutting; Downey Theatre Open House & Carpenter Tribute Concert with the culmination of 60th Anniversary Celebration for the City. He reminded the audience of safety measures when playing Pokemon Go and mentioned Helpful Honda reached out to the Space Center for names of children who would like to attend Space Camp but did not have the funds. A student was selected and awarded the registration cost. Honda has aired a commercial about the student on TV. He recognized Arnold Adler, Editor of the Wave Newspaper. Mr. Adler is retiring after 65 years in journalism. He acknowledged Kim Tachiki -Chin, Senior Advisor for Congresswoman Lucille Roybal Allard in the audience. City Council Minutes Regular Meeting — July 26, 2016 PRESENTATIONS 1. Mayor Saab, with the assistance of Martha Michaels, National Parents Coalition, presented Certificates of Recognition to the 2016 National Parents of the Year: Edwin Huber and Adriana Navarro - Huber, Alan and Dorothy Pemberton, and Patricia Renteria. 2. Mayor Saab presented Certificates of Recognition to the Winners of the "If I Were Mayor" Student Contest: Addison Bykoski, Carmelo Perez and Valeria Diaz. 3. Rich Kikuchi, CPA, Managing Partner, LSL CPA's and Advisors the City's auditing firm provided a brief presentation to the City Council of financial audit responsibilities and processes. Mr. Kikuchi suggested expanding the role of the budget subcommittee to include auditing. Mayor Saab asked Mr. Kikuchi for suggestions regarding additional procedures the City can implement as safeguards due to incidents in other cities. Mr. Kikuchi said they will provide suggestions to the Budget Subcommittee. City Manager Livas thanked Mr. Kikuchi for the presentation. He said staff will keep open communication with the City's auditors and welcome any ideas they may have to incorporate preventive measures. PUBLIC HEARINGS 1. APPROVED THE HOME PROGRAM PARTICIPATION AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES AND COMMIT $353,000 IN FEDERAL HOME INVESTMENT PARTICIPATION FUNDS TO ADMINISTER THE CITY'S FIRST -TIME HOMEBUYER ASSISTANCE PROGRAM; AND, AUTHORIZE THE CITY MANAGER TO EXECUTE ALL RELATED AGREEMENTS: Community Development. Mayor Saab opened the Public Hearing at 7:28 p.m. City Clerk Jimenez affirmed receipt of the Proof of Publication. It was moved by Mayor Pro Tern Vasquez, seconded by Council Member Ashton and so ordered by the Mayor to receive and file. City Clerk Jimenez noted there was no correspondence received. The staff report was provided by Director Schindler. Staff is recommending the City Council approve a First -Time Homebuyer Program in the City. The U.S. Department of Housing and Urban Development (HUD) provides the City with Home Investment Partnership (HOME) funds on an annual basis. HOME federal dollars assist low and moderate - income households to attain affordable housing through: land acquisition; affordable housing development; homeowner rehabilitation grants; and, rental or homeownership financial assistance. HUD requires the City to commit funds within 24- months of the award. The City has $353,000 in HOME funds available to commit and staff has considered the following options: Land acquisition; refinancing a homeowner's loan and provide an affordable housing payment; providing direct financial assistance for existing rental properties; and, reviving the City's First -time Homebuyer Program. Staff is proposing partnering with Neighborhood Housing Services (NHS), a local non - profit, who has provided homebuyer assistance programs throughout Southern California for over 30 years. NHS has placed over 4.3 million families on the road to homeownership. They have grown to become the largest non - profit affordable homeownership provider in Southern California. Some programs offered by NHS are: Financial education; affordable mortgage lending; homeowner down payment assistance programs; and, rehabilitation assistance loan programs. Staff proposes to commit $353,000 in HOME funding to the City's First -time Homebuyer Program; NHS will match 100 percent of their funds to make the program feasible. Total loan will equal ($30,000 from HOME, $30,000 from NHS) at 3% simple interest over a 30 -year term. NHS will administer the program on behalf of the City. This includes: collecting applications; determining eligibility; providing financial counseling; inspecting potential homes; coordinating real estate transaction with realtor; determining down payment assistance needed; coordinating close of escrow; City Council Minutes Regular Meeting — July 26, 2016 2 and, overseeing homebuyer loan portfolio until repayment. Eligibility Criteria: Priority to low and moderate - income Downey residents; Second priority to individuals employed in Downey; Third Priority to low and moderate - income individuals; household income cannot exceed HUD limits of 80% of area median income; have not owned a home in the last three years; homebuyer must have a 3% down payment of the purchase price; subject property must be located in Downey and be used as primary residence; and, homebuyer must attend a homebuyer counseling class through NHS. City's Loan Terms: At the 30th year, the City's principle loan amount and interest shall be forgiven. At any time before the 30 years, if the homebuyer(s) sells, transfers /changes title, refinances and cashes -out, and /or no longer utilizes the property as their primary residence, the City's principle loan amount will be due and payable. NHS's Loan Terms: At the 30th year, the principle loan amount and interest shall be due and payable. At any time before the 30 years, if the homebuyer(s) sells, transfers /changes title, refinances and cashes -out, and /or no longer utilizes the property as their primary residence, the principle loan amount plus interest will be due and payable. Program marketing will be through social media, the Downey Patriot, the City's website and publication, press release, Downey Association of Realtors and, non - profits and other community service providers. Mayor Pro Tern Vasquez asked which of the loans will be the subordinate. Director Schindler said the City will subordinate the NHS loan. Mayor Pro Tern Vasquez asked if the City's loan can pay off NHS's Loan at the end of the 30 year term. Director Schindler stated it would be difficult because the City loan will be dissolved by then. Mayor Saab opened this item for public comment at 7:37 p.m. Armando Herman, resident, commented on eligibility criteria and requirement of the HOME program. Having no one else come forward, Mayor Saab closed public comment at 7:42 p.m. It was moved by Mayor Pro Tern Vasquez, seconded by Council Member Brossmer and carried unanimously to approve the Home Program Participation Agreement with Neighborhood Housing Services and commit $353,000 in Federal Home Investment Participation Funds to Administer the City's First -Time Homebuyer Assistance Program; and, authorize the City Manager to execute all related agreements. 2. ANNUAL ACTION PLAN AMENDMENT AND SUBMISSION OF AN ECONOMIC DEVELOPMENT LOAN APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT: Community Development. ADOPTED RESOLUTION NO. 16 -7660, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY AUTHORIZING THE CITY MANAGER TO SUBMIT TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AN APPLICATION FOR $1,025,800 IN LOAN GUARANTEE FUNDS PURSUANT TO SECTION 108 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 AS AMENDED Mayor Saab opened the Public Hearing at 7:42 p.m. City Clerk Jimenez affirmed receipt of the Proof of Publication. It was moved by Mayor Pro Tern Vasquez, seconded by Council Member Ashton and so ordered by the Mayor to receive and file. City Clerk Jimenez noted there was no correspondence received. The staff report was provided by Director Schindler. Staff recommends the City Council approve an amendment to the 2016 -2017 Annual Action Plan to allow the submission of an application to the U.S. Department of Housing and Urban Development for $1,025,800 in funding under the Section 108 Loan Guarantee Program for an economic development and job creation activity to assist Downey Nissan. The total assistance to Downey Nissan would be $2,275,800 including the Sales Tax Sharing Agreement and the future grant through Community Development Block Grant. The Section 108 Loan Guarantee Program provides communities with a source of financing for economic development City Council Minutes Regular Meeting — July 26, 2016 3 incentives to assist local business and job creation efforts. To apply for the 108 Loan, the City must amend its FY 2016 -2017 Annual Action Plan to incorporate the proposed 108 Loan Application and add the projects proposed for loan funding. The loan will be repaid over a 10 -year period. The City's estimated annual loan payment would be approximately $125,000. The interest rate on Section 108 loans is based on the interest rate for government- issued U.S. Treasury Notes. The current interest rate is 2.14% for 30 -year U.S. Treasuries. The interest rate available to the City may be higher should rates increase before the City's loan is funded. The Section 108 Loan will be repaid from the City's annual CDBG allocation without any impact to the General Fund. Downey Nissan will be required to create 30 new full -time equivalent employment positions for low and moderate - income persons by the start of the third operating year. Mayor Saab asked how many jobs Downey Nissan will be creating. Director Schindler said they are creating 85 new jobs at the new site and carrying over 60 jobs from their current location. Mayor Saab opened this item for public comment at 7:47 p.m. Armando Herman, resident, commented on the job opportunities for Downey residents. Having no one else come forward, Mayor Saab closed public comment at 7:52 p.m. Council Member Ashton asked where Downey Nissan will hire their employees from. The federal government does not mandate where you hire employees, but the City makes a strong preference for Downey residents every time the City enters an agreement. It was moved by Mayor Pro Tern Vasquez, seconded by Council Member Brossmer and carried unanimously to adopt Resolution No. 16 -7660, a resolution of the City Council of the City of Downey authorizing the City Manager to submit to the U.S. Department of Housing and Urban Development an application for $1,025,800 in Loan Guarantee Funds Pursuant to Section 108 of the Housing and Community Development Act of 1974 as amended. NON - AGENDA PUBLIC COMMENT Armando Herman, resident, commented regarding an article in the Los Angeles Times. David Amaya, resident and Administrator of the Diehard L.A. Kings Fanatics, commented in regards to seeking support for Special Olympics groups and events. CONSENT CALENDAR Mayor Pro Tern Vasquez pulled Item No. 6 and Mayor Saab pulled Item No. 11. Council Member Marquez abstained from Item No. 5 due to the proximity to his residence; Council Member Brossmer abstained from Item No. 10 due to his employment with Downey Unified School District; Mayor Pro Tern Vasquez abstained from Item No. 10 due to a financial conflict; and, Mayor Saab abstained from Item No. 3 — Minutes of July 12, 2016 because he was not in attendance at that meeting. Mayor Saab asked if there was anyone who would like to comment on Consent Calendar items. Armando Herman, resident, commented on Item No. 5. He talked about curbs, ramps, and bicycle lanes for the disabled. Armando Herman, resident, commented on Item No. 10. He stated his opposition for an agreement with DUSD for School Resource Officer Services. City Council Minutes Regular Meeting — July 26, 2016 4 John Lacey, resident, commented on Item No. 10. He said he was in favor of the agreement with DUSD for School Resource Officer Services. He thanked the Police and Fire Department for their efforts and helping maintain the safety of the City. It was moved by Council Member Brossmer, seconded by Mayor Pro Tern Vasquez and carried unanimously to approve the remainder of the Consent Calendar. 3. APPROVED MINUTES: Regular Meeting of June 28, 2016 and July 12, 2016: City Clerk. 4. WARRANTS ISSUED: Warrant Nos. 305353 - 305638; Payroll Wire Nos. 30003488 - 30003493; Manual Wire Nos. 1452 & 1454 -1455 and Cashier's Check 82; in the total amount of $4,174,833.23: Finance. 5. BROOKSHIRE AVE. PAVEMENT REHABILITATION PROJECT FROM GARDENDALE ST. TO IMPERIAL HWY. AND FIRESTONE BLVD. TO FLORENCE AVE.: APPROVED PLANS AND SPECIFICATIONS AND AUTHORIZED SOLICITATION OF BIDS (CAPITAL IMPROVEMENT PROJECT NOS. 14 -12 AND 14 -16): Public Works. 7. APPROVED AMENDMENTS TO AGREEMENTS WITH: GK & ASSOCIATES, KOA CORPORATION, CIVILSOURCE, INC., ONWARD ENGINEERING, WILLDAN ENGINEERING AND FARHADI & ASSOCIATES, FOR ONE -YEAR TERM EXTENSIONS FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES: AUTHORIZED THE MAYOR TO EXECUTE THE EXTENSIONS OF EACH AGREEMENT; AND, AUTHORIZED THE CITY MANAGER TO EXECUTE FUTURE AMENDMENTS: Public Works. 8. APPROVED AMENDMENT NO. 1 TO THE AGREEMENT WITH STEARNS, CONRAD AND SCHMIDT CONSULTING ENGINEERS, INC. FOR ENVIRONMENTAL REMEDIATION CONSULTING SERVICES RELATED TO THE SOIL REMEDIATION AT 9255 IMPERIAL HWY.: AUTHORIZED THE MAYOR TO EXECUTE THE AMENDMENT; AND, AUTHORIZED THE CITY MANAGER TO EXECUTE FUTURE AMENDMENTS (CAPITAL IMPROVEMENT PROJECT NO. 14 -07): Public Works. 9. APPROVED AGREEMENT WITH JWA URBAN CONSULTANTS IN AN AMOUNT NOT TO EXCEED $69,960 FOR ECONOMIC DEVELOPMENT STRATEGIC PLAN FOR IMPERIAL HIGHWAY: Community Development. 10. AUTHORIZED THE CITY MANAGER TO APPROVE AN AGREEMENT WITH DUSD FOR SCHOOL RESOURCE OFFICER SERVICES FOR THE POLICE ON CAMPUS PROGRAM: Police. 12. ADOPTED RESOLUTION NO. 16 -7662, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ESTABLISHING COMPENSATION FOR THE POSITION OF FIRE CHIEF: Human Resources. OTHER BUSINESS 6. APPROPRIATED FROM THE CITY RESERVE FUNDS $500,000 AND AN ADDITIONAL $153,398 FROM POLICE DEPARTMENT ASSET FORFEITURE FOR THE PURCHASE AND INSTALLATION OF TWENTY -FIVE (25) LICENSE PLATE READER CAMERAS AT TEN (10) LOCATIONS THROUGHOUT THE CITY: Police. Mayor Pro Tern Vasquez asked if two cameras are required per intersection based on the information provided by the first vendor on the staff report. Chief Charles explained it would depend on the size of the intersection and the number of lanes. City Council Minutes Regular Meeting — July 26, 2016 5 Mayor Saab asked if the cameras will only monitor vehicles coming into the City. Chief Charles said it will be both coming in and leaving. The location of the cameras will not be disclosed. Mayor Pro Tern Vasquez commented on the General Reserve Funds and said typically the Council does not use funding from the Reserves but based on the increase in crime in the region, this is a one -time cause. Council Member Ashton commented in favor of the use of the Reserves for this project because it involves enhancing the safety of the City. Council Member Marquez commented in favor of this item and said technology has been very effective in the City and it continues to keep the City safe. Mayor Saab commented in favor of the item and said the City is evolving with technology and it makes policing more efficient and effective. Mayor Pro Tern Vasquez asked when the cameras will be fully installed and implemented. Chief Charles said they expect to have the cameras installed and implemented by the end of the third quarter of this year. It was moved by Mayor Pro Tern Vasquez, seconded by Mayor Saab and carried unanimously to appropriate from the City Reserve Funds $500,000 and an additional $153,398 from Police Department Asset Forfeiture for the purchase and installation of twenty -five (25) license plate reader cameras at ten (10) locations throughout the city. 11. ADOPTED RESOLUTION NO. 16 -7661, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY DESIGNATING A VOTING DELEGATE AND ALTERNATE FOR THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE, OCTOBER 5 -7, 2016 IN LONG BEACH: City Clerk. Council Marquez said he serves as the City's Delegate for the League of CA Cities and is registered to attend the conference. He suggested being appointed as the voting Delegate and Council Member Ashton being appointed as the voting Alternate for the League of California Cities Annual Conference. It was moved by Council Member Brossmer, seconded by Mayor Saab and carried unanimously to adopt Resolution No. 16 -7661, a Resolution of the City Council of the City of Downey Designating Council Member Marquez as the Voting Delegate and Council Member Ashton as the Voting Alternate for the League of California Cities Annual Conference, October 5 -7, 2016, in Long Beach. ADMINISTRATIVE REPORTS: None. STAFF MEMBER COMMENTS Mayor Saab asked for an update on the Lakewood Blvd. and Telegraph Rd. project. Director Mostahkami stated the project is moving forward quickly but due to unforeseen situations including utility relocation issues, there have been some delays for several weeks but the project is expected to be completed in August. Notifications are going out to all affected businesses tomorrow morning. Mayor Saab asked if there is anything the City can do to mitigate the effect of the delay to local businesses. Council Member Brossmer voiced his concerns about the project coming to a standstill. City Manager Livas explained the standstill was due to issues with Edison and other utilities not being relocated when scheduled. With the poles and utilities now relocated, work resumed two weeks ago. Staff will visit the affected businesses to obtain suggestions on how to improve access to customers. City Council Minutes Regular Meeting — July 26, 2016 6 Council Member Brossmer suggested having Edison address the Council on why relocation of utility poles continues to be an issue that impacts the residents and business owners of the City. Mayor Pro Tern Vasquez said he had an opportunity to talk to Edison's Public Affairs Manager and the response he received was inadequate. City Manager Livas explained the City coordinates with Edison as best possible but somewhere in the process they failed with scheduling the removal of the pole and coordinating the removal of each utility line on the pole. Edison needs to assume responsibility and coordinate with all utilities. Mayor Pro Tern Vasquez asked when in August will the project be completed. Director Mostahkami said the project is moving along as fast as possible and is in Phase 3 of a 4 Phase process. He anticipates the work to be completed and the lane to re -open by the end of August. Council Member Brossmer asked Director Mostahkami to explain the delay caused by Edison. Director Mostahkami said Edison was asked to relocate the pole from the street to the parkway in order to allow opening the right turn lane. Edison coordinated with all utilities to remove their lines in March but adequate coordination and follow up did not take place. This delayed the project by approximately four weeks. Council Member Ashton asked if this issue with Edison is something to discuss with State representatives. The Council said they have already talked to State representatives about several issues with Edison. City Manager Livas said staff will coordinate having an Edison representative address the Council regarding this matter. Mayor Saab asked staff to send letters to the businesses being affected as early as tomorrow morning. ADJOURNMENT Mayor Saab adjourned the Regular City Council Meeting at 8:31 p.m. in memory of the victims of the attack in Nice, France, and Baton Rouge Police Department Officers killed in the line of duty: Montrell Jackson, 32, Brad Garafola, 45, and Matthew Gerald, 41; U.S. Navy 1St Lieutenant Anais A. Tobar, 25, of Miami, Florida who was supporting Operation Freedom's Sentinel; Kansas City Police Department Captain Robert Melton, 46, killed in the life of duty; and long -time Downey resident and Downey Police Chaplain, Charles Denisac. A IA M. JIMENEZ, MC City Clerk City Council Minutes Regular Meeting — July 26, 2016 7 1�� ALEX SAAt- Mayor