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HomeMy WebLinkAbout01b. Minutes - 10-24-17 - Regular MeetingCity Council Minutes Regular Meeting – October 24, 2017 1 MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY REGULAR MEETING OCTOBER 24, 2017 The City Council of the City of Downey held a Regular City Council Meeting on October 24, 2017, at 6:37 p.m., in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California, Mayor Vasquez presiding. PRESENT: Council Members: Fernando Vasquez Mayor Sean Ashton Mayor Pro Tem Blanca Pacheco Council Member (excused) Rick Rodriguez Council Member Alex Saab Council Member ALSO PRESENT: John Oskoui, Assistant City Manager Yvette M. Abich Garcia, City Attorney Shannon DeLong, Assistant to the City Manager Carl Charles, Chief of Police Mark Gillaspie, Fire Chief Mohammad Mostahkami, Public Works Director Pamela Passow, Parks & Recreation Director Anil Gandhy, Finance Director Alicia Duarte, CMC, Interim City Clerk The Invocation was delivered by Pastor Alex Vargas, The Lords Grace Church of Downey. The Pledge of Allegiance was led by Girl Scout Troop 17155. COUNCIL MEMBER ANNOUNCEMENTS; REQUESTS FOR FUTURE AGENDA ITEMS; CONFERENCE/MEETING REPORTS Council Member Saab welcomed the audience to the meeting. He acknowledged the following members of the audience: Dr. Stauffer, Martha Sodetani, Barbara Samperi, Nancy Swenson, Mark Morris, Michael Calvert, Carrie Uva, Mike Murray and Roy Beard. He reported attending the dedication for the Habitat for Humanity Project on Elmvista St. He thanked City staff for their involvement in this project. He announced upcoming events: Gangs out of Downey Annual Golf Tournament; Warren vs. Downey High School football game; Downey Foundation for Educational Opportunities Fundraiser; Prescription Drug Take Back event; Dia de los Muertos Art Festival; Downey Federal Credit Union Trunk and Treats; and, Pumpkin Patch at Apollo Park. He congratulated Mayor Vasquez for receiving an award from Wesley Health Centers. Council Member Rodriguez reported attending Character Counts Day at Gallatin Elementary, Warren High School Aquatic Center ribbon cutting, Keep Downey Beautiful Clean Up and Clothes the Deal ribbon cutting. He participated in a meeting with Run to Rescue which assists victims of sex trafficking. He attended Supervisor Hanh’s State of the County Address and mentioned his visit to Fort Irwin for a three day tour of the facility. He acknowledged members of the military for their service. He recognized Lt. McDaniel in the audience. Mayor Pro Tem Ashton welcomed the audience to the meeting. He recognized Public Works Commissioner Beth Gendreau in the audience. He reported attending a Website Ad Hoc Subcommittee meeting and said they discussed issues with the City’s current website provider. He attended Warren High School Aquatics Center ribbon cutting and participated in Assembly Member Garcia’s Fellow in City Council Minutes Regular Meeting – October 24, 2017 2 Government Program at City Hall. He mentioned Assembly Member Garcia is currently accepting applications for the Youth in Government Program. He announced upcoming events: Prescription Drug Take Back event; Dia de los Muertos Art Festival; Pumpkin Patch at Apollo Park; and, Veteran’s Day Ceremony. He requested staff provide Council clarification on the process for commissioner public notifications and public outreach. Mayor Vasquez reported attending the I-5 Joint Powers Authority meeting. He provided an update on the construction of the Florence Ave. overpass bridge and said construction work on the bridge would be fully completed by the summer of 2018. He thanked staff for their work at the Habitat for Humanity Project dedication. PRESENTATIONS 1. Mayor Vasquez presented the Mayor's Healthy Heart Award to Dr. John Garcia, Jr., Superintendent, Downey Unified School District. 2. Mayor Pro Tem Ashton presented a Certificate of Appointment to Olenka Krupa, Green Task Force, District 2. RECESS/RECONVENE Mayor Vasquez recessed the City Council meeting at 7:07 p.m. Mayor Vasquez reconvened the City Council meeting at 7:09 p.m. PUBLIC HEARING: 1. ESTABLISHING A NEW RESIDENTIAL PREFERENTIAL PARKING DISTRICT ON SHELLYFIELD ROAD BETWEEN CECILIA STREET AND MULLER STREET AND REPEALING FORMER PARKING DISTRICT: Public Works. ADOPTED RESOLUTION NO. 17-7751, A RESOLUTION OF THE CITY COUNCIL OF THE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY REPEALING THE EXISTING RESIDENTIAL PREFERENTIAL PARKING DISTRICT ON BOTH SIDES OF SHELLYFIELD ROAD BETWEEN CECILIA STREET AND MULLER STREET AND THE NORTH SIDE OF CECILIA STREET BETWEEN A POINT LOCATED APPROXIMATELY 183 FEET WEST OF THE SHELLYFIELD ROAD CENTERLINE AND CHANEY AVENUE AND ESTABLISHING A NEW RESIDENTIAL PREFERENTIAL PARKING DISTRICT ON BOTH SIDES OF SHELLYFIELD ROAD BETWEEN CECILIA STREET AND MULLER STREET Mayor Vasquez opened the Public Hearing at 7:15 p.m. Interim City Clerk Duarte affirmed receipt of the Proof of Publication. It was moved by Council Member Saab, seconded by Mayor Pro Tem Aston and so ordered by the Mayor to receive and file. Interim City Clerk Duarte noted correspondence was received from Ronald Kolar of L’Abri Management, Inc. in favor of the recommended modifications and copies of his letter were available for the public. The staff report was provided by Director Mostahkami. Director Mostahkami announced this is a continued public hearing item from the meeting of September 12, 2017. The City Council previously considered a recommendation to repeal the existing residential preferential parking district on both sides of Shellyfield Rd. between Cecilia and Muller Streets and the north side of Cecilia St. and to establish a new residential preferential parking district on both sides of Shellyfield Rd. between Cecilia and Muller Streets. Staff was directed to review the concerns raised during the public hearing. Staff is resubmitting their recommendation to the City Council for approval. On October 13, 2015, at a noticed public hearing the City Council adopted a resolution establishing the residential preferential parking district. One year after the preferential parking district went into effect, staff conducted an evaluation of City Council Minutes Regular Meeting – October 24, 2017 3 the parking permits on the subject portions of both Shelleyfield Rd. and Cecilia St. in order to determine the need for the district. Permits were not secured for the Cecilia St. portion of the district for over a year, and as a compromise to address the concerns of the adjacent apartment complex, staff recommends the removal of said portion of the district by repealing the existing residential preferential parking district and adopting the new resolution establishing new residential preferential parking district on both sides of Shellyfield Rd. between Cecilia St. and Muller St. Mayor Vasquez opened this item for public comment at 7:19 p.m. Carrie Uva, resident, commented against the proposed modifications to the preferential parking district. James Minor, resident, commented against the proposed modifications to the preferential parking district. Margie Gutierrez, resident, commented against the proposed modifications to the preferential parking district. Ricardo Rosari, resident, commented regarding line of sight issues at the intersection of Shellyfield and Cecilia. The Council briefly discussed extending the red curbs in the area of Shellyfield and Cecilia to address the line of sight issues and asked there be no parking on the north side of Cecilia. Mr. Faraz, resident, commented regarding parking availability for Stonewood Village. Gale Garland, resident, commented regarding line of sight issues on Clancey and Cecilia. Jeremy Fitzl, L’Abri Management, Inc., commented in favor of the recommended modifications. Beatriz Suarez, resident, commented in favor of eliminating the existing preferential parking district. Victoria Merano, resident, commented against the proposed modifications to the preferential parking district. Mayor Vasquez clarified that residents on Shellyfield would not be impacted by the proposed modifications. Armando Herman, resident, commented in favor of preferential parking districts. Maria Ramirez, resident, commented against the preferential parking district. Jose Flores, resident, commented in favor of the proposed modifications to the preferential parking district. Having no one come forward, Mayor Vasquez closed public comment at 7:49 p.m. Assistant City Manager Oskoui said the City Council has heard the concerns from the residents which include safety and line of sight issues. The City Council has directed staff to complete an engineering study which will address the issue of line of sight and speeding along Cecilia. City staff is working with the Police Department who will begin selective enforcement and will incorporate other mechanisms to discourage speeding including the City’s traffic calming program. Staff is studying the issue of visibility and will make the necessary adjustments including extending the red curbs at all four corners in the area. He encouraged the residents to call and report violations. City Council Minutes Regular Meeting – October 24, 2017 4 Council Member Saab briefly commented about the issue before Council and said the City cannot require or demand a previously approved apartment building or home owner to add or modify parking conditions. He commented about the importance of making a decision that will be the least impactful to the residents being affected. He stated his support for staff’s recommendation with the discussed modifications. He indicated if the changes approved tonight did not resolve the issue it can be discussed again in the future. Mayor Vasquez commented regarding safety and line of sight concerns. He asked staff to provide an analysis to Council and comments from the department in four to six months to learn if the modifications are working. Council Member Saab mentioned both Mayor Vasquez and himself approached Stonewood Mall to discuss a solution but Stonewood Mall was not interested. Mayor Pro Tem Ashton stated his reluctance towards adopting the proposed changes. Mayor Vasquez stated staff will monitor the line of sight issue and will come back to City Council and present their findings and recommendations. Mayor Pro Tem Ashton stated he would prefer the preferential parking district remain the same. Mayor Vasquez asked Assistant City Manager Oskoui how long it would take to implement a solution to address the line of sight issue. Assistant City Manager Oskoui stated that staff will bring back the results within 30-45 days. Mayor Vasquez recommended staff return to Council in 90 days and present their findings. Mayor Vasquez closed the public hearing at 8:08 p.m. It was moved by Council Member Saab, seconded by Mayor Vasquez and carried unanimously with Mayor Pro Tem Ashton voting no, and Council Member Pacheco excused to adopt Resolution No. 17-7751, a Resolution of the City Council of the Resolution of the City Council of the City of Downey repealing the existing Residential Preferential Parking District on both sides of Shellyfield Road between Cecilia Street and Muller Street and the north side of Cecilia Street between a point located approximately 183 Feet west of the Shellyfield Road centerline and Chaney Avenue and Establishing a new Residential Preferential Parking District on both sides of Shellyfield Road between Cecilia Street and Muller Street. NON AGENDA PUBLIC COMMENT Mayor Vasquez opened non agenda public comment. Ignacio Gonzalez, Southern California Resources Services for Independent Living, commented regarding an advocacy group he is leading and training on how to speak during public comment. He invited the Council to Southern California Resources Services’ Holiday luncheon. Angel Juarez, voiced his concerns regarding the lack of sidewalks on Paramount Blvd. by the I-5 freeway for pedestrian access. Mayor Vasquez asked ADA Coordinator Shannon DeLong to follow up with Mr. Juarez. Allen Halstensgaard, resident, commented in regards to his views on abortions. Armando Herman, resident, commented regarding ADA safety and homelessness. City Council Minutes Regular Meeting – October 24, 2017 5 Roy Beard, Downey C.E.R.T. Member, thanked City Council and the Fire Department for their support. Having no one else come forward, Mayor Vasquez closed public comment. CONSENT CALENDAR Council Member Saab pulled Items No. 11 and 12. Mayor Vasquez asked if there was anyone present who would like to comment on Consent Calendar items. Armando Herman, resident, commented against Item No. 10. Having no one else come forward, Mayor Vasquez closed public comment. It was moved by Mayor Pro Tem Ashton, seconded by Council Member Rodriguez and carried unanimously, with Council Member Pacheco excused and Council Member Saab pulling Item Nos. 11 and 12, to approve the remainder of the Consent Calendar. 2. APPROVED MINUTES: Special Meetings of April 11, 2017 & October 10, 2017; Regular Meeting of October 10, 2017: City Clerk. 3. WARRANTS ISSUED: Warrant Nos. 317949 – 318401; Payroll Wire Nos. 30003663, 30003668 and 30003670 – 30003673; Manual Wire Nos. 1618 – 1619; and, Cashier Check number 105, in the total amount of $3,325,633.05: Finance. 4. APPROVED AGREEMENTS WITH THIRKETTLE CORPORATION, DBA AQUA METRIC SALES CO. AND WITH SENSUS USA, INC. FOR ADVANCED METERING INFRASTRUCTURE SERVICES; AUTHORIZED THE MAYOR TO EXECUTE THE AGREEMENTS; AUTHORIZED THE CITY MANAGER TO EXECUTE ANY AND ALL FUTURE AMENDMENTS; AND AUTHORIZED TRANSFER OF $255,424 FROM CAPITAL IMPROVEMENT PROGRAM WATER FUND ACCOUNT NO. 51-1-8606 TO CAPITAL IMPROVEMENT PROGRAM WATER FUND ACCOUNT NO. 51-1-7842 TO COVER THE TOTAL PROJECT COST: Public Works. 5. APPROVED THE ASSIGNMENT OF THE JAIL SERVICES CONTRACT FROM GEO CORRECTIONS AND DETENTION, LLC, A SUBSIDIARY OF GEO, TO THE GEO GROUP, INC.; AUTHORIZED THE CITY MANAGER TO ENTER INTO A ONE YEAR CONTRACT EXTENSION WITH THE GEO GROUP, INC., (GEO) TO CONTINUE PROVIDING PRIVATE JAILER SERVICES FOR THE POLICE DEPARTMENT JAIL; AND, AUTHORIZED THE CITY MANAGER TO SIGN ANY FURTHER AMENDMENTS OR EXTENSIONS: Police. 6. ADOPTED RESOLUTION NO. 17-7752, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED BY THE CITY: Finance. 7. ADOPTED RESOLUTION NO. 17-7753, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADOPTING THE CITY OF DOWNEY COMPREHENSIVE DEBT POLICY: Finance. City Council Minutes Regular Meeting – October 24, 2017 6 8. ADOPTED RESOLUTION NO. 17-7754, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING THE DESTRUCTION OF CERTAIN OBSOLETE RECORDS OF THE PARKS AND RECREATION DEPARTMENT: Parks & Recreation. 9. ADOPTED RESOLUTION NO. 17-7755, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADOPTING AN UPDATED COMPREHENSIVE PAY SCHEDULE IN COMPLIANCE WITH CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5: Human Resources. 10. ADOPTED ORDINANCE NO. 17-1384, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY AMENDING VARIOUS SECTIONS OF ARTICLE IX OF THE MUNICIPAL CODE REGARDING PERSONAL CULTIVATION AND COMMERCIAL ACTIVITIES OF MARIJUANA: Community Development. 13. RATIFIED THE DONATION OF ONE FOURSOME OF GOLF AT THE RIO HONDO GOLF COURSE IN SUPPORT OF THE DOWNEY CHAMBER OF COMMERCE GOLF TOURNAMENT: Council Member Rodriguez. OTHER BUSINESS 11. ADOPTED INTERIM URGENCY ORDINANCE NO. 17-1385, AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY ESTABLISHING A TEMPORARY MORATORIUM ON SUBDIVIDING PARCELS IN THE R-1 ZONE: Community Development. Council Member Saab stated he wants to ensure the Council is presented with options on how to deal with commercial and non-commercial property in R-Zones when this item returns to Council. Mayor Vasquez stated his concerns of placing moratoriums when there are projects in the process. He stated his disagreement with the Planning Commission’s decision. He stated he welcomes Mayor Pro Tem Ashton’s suggestions of a solution. Council Member Saab asked whether the moratorium would affect anyone who has submitted an application. City Attorney Abich Garcia explained that the moratorium would not affect anyone who has submitted a completed application to staff for a subdivision. She asked City Planner, David Blumenthal to provide an explanation regarding the application process. City Planner David Blumenthal stated that once staff has determined that all necessary documents have been submitted, they deem an application complete. On the contrary if something is missing or is incorrect in the plans, then the application is deemed to be incomplete. Mayor Vasquez asked whether an application that was denied and is appealed to the City Council will be is affected by the moratorium. City Planner David Blumenthal stated that the application would not be affected by the moratorium. Council Member Saab asked how many applications are in possession of staff that have been deemed incomplete. City Planner David Blumenthal stated there is currently one application that has been deemed incomplete for over 6 months pending the applicant’s response. City Council Minutes Regular Meeting – October 24, 2017 7 Council Member Rodriguez voiced his disapproval of subdividing single family home lots into several units. He is concerned the City’s DNA of large family homes on large lots is disappearing. He stated the issue of overdeveloping arises and with it issues with parking. He spoke in favor of establishing a moratorium to give staff time to research this issue thoroughly. Mayor Pro Tem Ashton stated it was made clear that applicants already in the process will not be affected by the moratorium. He commented regarding his concerns with overcrowded parking and would like staff to research the issue of subdividing properties further. Mayor Vasquez asked staff to reach out to the Downey Association of Realtors, local developers and the Chamber of Commerce and obtain their input on this matter. Mayor Vasquez opened this item for public comment. Louie Rodriguez, Busy Bee Development, Inc., stated he represents an applicant who will coming before Council with an appeal and he would like to ensure his client’s application will not be affected by the moratorium. City Attorney Abich Garcia stated any appeal coming before the Council will not be affected by the moratorium. She further stated the appeal would be viewed de novo based on the findings that are required to either approve or disapprove. Having no one else come forward, Mayor Vasquez closed public comment. It was moved by Mayor Pro Tem Ashton, seconded by Council Member Rodriguez and carried unanimously, with Council Member Pacheco excused, to Adopt Interim Urgency Ordinance No. 17- 1385, an Interim Urgency Ordinance of the City Council of the City of Downey establishing a Ttemporary Moratorium on subdividing parcels in the R-1 Zone. 12. APPOINTED SIX APPLICANTS FROM THE 2017/2018 DOWNEY YOUTH COMMISSION APPLICANT POOL TO FILL THE EXISTING VACANCIES: Parks & Recreation. Council Member Saab stated there was a discrepancy with the name of his appointee. The person he wishes to appoint is Humberto Banuelos, Downey High School student. It was moved by Council Member Saab, seconded by Mayor Pro Tem Ashton and carried unanimously with Council Member Pacheco excused, to approve the 2017/2018 youth commission appointments with Council Member Saab’s correction to his appointee. ADMINISTRATIVE REPORTS 14. APPOINT AN AD HOC SUBCOMMITTEE ON HOMELESSNESS: Council Member Saab. Council Member Saab stated he proposed the creation of an ad hoc subcommittee on homelessness in order to address pending items regarding this issue. Some of the funding issues include allocations for this project. He said he would like to serve on the ad hoc subcommittee. Council Member Rodriguez said he would also like to serve on this ad hoc subcommittee. Mayor Vasquez asked if there was anyone present who would like to comment on this item. Armando Herman, resident, commented on homelessness issues. Having no one come forward, Mayor Vasquez closed public comment. City Council Minutes Regular Meeting – October 24, 2017 8 It was moved by Mayor Pro Tem Ashton, second by Mayor Vasquez and approved unanimously with Council Member Pacheco excused, to appoint Council Members Saab and Rodriguez to serve on the Homeless Ad Hoc Subcommittee. 15. RECEIVED AND FILED PRESENTATION ON THE L.A. COUNTY COMMUNITY CHOICE AGGREGATION PROGRAM; INTRODUCED AN ORDINANCE APPROVING THE JOINT POWERS AGREEMENT (JPA) FOR THE L.A. COUNTY COMMUNITY CHOICE ENERGY AND AUTHORIZED THE IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION PROGRAM; AND, DESIGNATED ONE COUNCIL MEMBER AND ALTERNATE COUNCIL MEMBER REPRESENTING THE CITY: Public Works. INTRODUCED AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DOWNEY APPROVING THE JOINT POWERS AGREEMENT FOR LOS ANGELES COMMUNITY CHOICE ENERGY AND AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION PROGRAM. Assistant City Manager Oskoui stated that the City Council has been on the leading end of reducing energy consumption and maximizing the use of renewable energy as evident by the adoption of the Energy Action Plan which happened two years ago under the City Council’s direction. He stated that the Community Choice Aggregation Program is a natural progression for the City following the implementation of the Energy Action Plan. The plan allows local government to purchase electricity in the open market and then sell it back to the residents at competitive rates in comparison to Southern California Edison rates. He introduced Gary Gero, Chief Sustainability Officer from Los Angeles Community Choice Energy Authority. Mr. Gero presented an overview of the Los Angeles Community Choice Energy Authority. Gary Gero mentioned that under California law, cities and counties have the right to aggregate residential and business customers. He clarified that aggregation does not mean taking over full utility functions but procuring power through whole sale market or generating power by building local solar plants and setting rates for that power and operating customer programs. This would allow tailoring programs to meet local community needs instead of programs set by the Public Utilities Commission. Southern California Edison would continue to maintain and operate the power distribution system and charge for that service as well as meter reading and billing. This law was created in 2002 and the first Community Choice Aggregation was formed about seven to eight years ago in Marin County. Currently there are about 80 cities state-wide that are part of these types of programs that are delivering greener lower energy costs to their communities. Mr. Gero noted that they will be working alongside the utility company and not taking away from it. This will reduce cost to consumers and customers can return to Southern California Edison at any time. The program offers three levels of renewable energy and customers have the choice to go greener. Another critical part of this program is the benefit of local control and not being governed by the State’s Public Utilities Commission. The primary driver for customers to join will be the ability to provide lower energy costs. He also mentioned there are risks involved with this business venture. The first risk is the energy market; currently renewable energy is as cheap as it has ever been however markets can change at any moment and this can affect low rates. Another risk is customers leaving the program; that could affect the rates and the administrative cost would be shared by a smaller pool of customers, causing an increase in rates. He explained if 20% of the customers leave the program, the City would still have an economically feasible program. The highest opt out rate has been 13%. Council Member Saab asked how they will reach out to the residents to join the program. Mr. Gero stated that there are four legally required notices that must be sent out to customers. He said they will work with cities to also communicate the information to community members through social media and city newsletters to let customers know this is coming. City Council Minutes Regular Meeting – October 24, 2017 9 Council Member Rodriguez asked about the percentage of customers who have left the program in other cities. Mr. Gero clarified that the highest percentage of customers who have left the program in a particular city has been 13%. Council Member Saab asked what percentage of the residents joined the program in the cities currently participating in the program. Mr. Gero clarified that under California law all residents are automatically enrolled in the program and they have to opt out of the program if they wish not to participate. Council Member Rodriguez asked if Edison would still manage billing. Mr. Gero responded yes. Mr. Gero mentioned that the Board of Supervisors has approved this program regardless of the possible risks and the Los Angeles Community Choice Energy Authority has determined that the risks involved are manageable and they can provide competitive rates. In 2016, the Board of Supervisors asked the Authority to work with the cities and extend the benefits of the program regionally. The Authority worked with cities to negotiate a joint powers authority agreement. The agreement was adopted by the Board of Supervisors in April of 2017 and they also adopted the enabling ordinance. The Board of Supervisors approved a $10 million dollar budget to implement the program. As of now six cities have adopted an ordinance. The Board of Supervisors directed the Authority to have fair and equitable representation of cities. A one member one vote structure was then implemented. The County has one representative on the Board and the City of Downey would have one representative on the Board. All votes by default must be a vote of the membership. Mayor Pro Tem Ashton asked what other cities are involved that have a weighted vote. Mr. Gero stated that out of all of the Community Choice Aggregation Programs in other cities, there has never been a weighted vote. Cities currently involved in program are: South Pasadena, Alhambra, Calabasas, Rolling Hills Estate, Sierra Madre and West Hollywood. Claremont and Rolling Hills Estates are considering joining tonight. He stated that City of Los Angeles is not eligible for this program only those cities in Edison territory. Mr. Gero stated that the implementation of the program will not affect the franchise fee collections. Edison still owns and maintains the transmission system and uses the City’s right of way and the City assesses cost for that use. The program could affect the Utility User’s Tax because if customer bills are lower it would mean lower collections for tax revenue. He stated when the Board of Supervisors approved the $10 million funding they intended to seek as many cities to join program. The deadline to join is December 27, 2017. There is no cost to join and under a Joint Power Agreement, the City will not incur any liability. He stated the program will begin to deliver electricity by January 2018, but it will be in phases to protect customers. The first customers will be the 2,000 accounts from the County in the incorporated area in order for the Authority to address any issues that should arise. By the end of 2018 they will begin to roll out services to business and residential customers. Mr. Gero reviewed the steps to join the program: the City must enact an enabling ordinance notifying the State the City is aggregating all of its customers, business and residential; adopt the Joint Powers Agreement; designate an elected official to serve on the Board of Director’s and identify two alternates; and, lastly promote the program to the residents. Mayor Vasquez asked how many households in a city are needed to make this program financially viable. Mr. Gero responded that the program only needs the County of Los Angeles County unincorporated areas to participate in order to make the program viable; any additional cities that join will provide more market power. City Council Minutes Regular Meeting – October 24, 2017 10 Mayor Vasquez asked how many years of operating reserves the program has. Mr. Gero responded that the program has a 10 year business financial plan and they are placing all marginal revenues into reserve in the beginning. Mayor Vasquez inquired about Southern California Edison’s Rule 20 for underground utilities and asked if the program will also have a Rule 20. Mr. Gero stated Edison would continue to operate the Rule 20 because they would still own the distribution lines. Mayor Vasquez inquired about low-income rebates for low-income families. Mr. Gero stated that low-income rates and programs will be lower because the program has overall lower rates. As the program develops, the plan is to implement low income programs to provide additional low income rates to low income customers. Mayor Vasquez asked whether the intent of this program is to procure minority-owned businesses. Mr. Gero stated that the County’s position is yes and it is something they strongly believe in, but that will be a decision of the collective cities and counties together as the County is only one vote. Council Member Saab asked for the top three reasons a resident would want to opt out of the program. Mr. Gero stated the first would be if the program is not competitive, low rates; or, people fundamentally not trusting government. Council Member Saab asked how customers will be able to compare rates between Edison and the program. Mr. Gero stated Edison will continue to manage billing but there will be one page that reflects the charges from the Community Choice program. At some point Community Choice hopes to be able to take over the billing aspect but for now they can only choose what information is provided on that page of the bill. He explained another option to inform customers of discounted rates can be through the City’s website. Council Member Saab asked whether Edison will implement a compromise service to punish those who enroll in the Community Choice program. Mr. Gero responded that by law they cannot discriminate among their customer classes and that if there is evidence that they are doing so, they would file a case with the Public Utilities Commission against Edison. Mayor Vasquez asked if there was anyone present who would like to comment on this item. D. Mark Morris, Downey Unified School Board, commented in favor of Item No. 15 and stated the School Board is in support of this item. Mr. Faraz, resident, commented in favor of Item No. 15 and asked whether the Los Angeles Community Choice Aggregation is owned by Southern California Edison. Assistant City Manager Oskoui, responded that it is a separate entity. Mr. Faraz asked how customers who opt out of the program will have their energy delivered. Assistant City Manager Oskoui stated the energy will still come from the same transmission lines. Mr. Faraz asked if the customer will have a choice of how much renewable energy they will purchase. Mr. Oskoui stated it will be decided collectively by the members of the Board. Having no one else come forward, Mayor Vasquez closed public comment. Council Member Saab stated that he is in favor of this program and expressed his willingness to represent the City on the Board. City Council Minutes Regular Meeting – October 24, 2017 11 Mayor Pro Tem Ashton also expressed his support of the program and expressed his willingness to represent the City as well. It was moved by Mayor Vasquez, seconded by Mayor Pro Tem Ashton and approved unanimously with Council Member Pacheco excused to receive and file the presentation on the L.A. County Community Choice Aggregation program. It was moved by Council Member Saab, seconded by Mayor Pro Tem Ashton and approved unanimously with Council Member Pacheco excused to introduce an ordinance of the City Council of the City of Downey approving the Joint Powers Agreement for the Los Angeles Community Choice Energy and authorizing the implementation of a Community Choice Aggregation Program. It was moved by Mayor Vasquez, seconded by Council Member Rodriguez and approved unanimously with Council Member Pacheco excused to appoint Council Member Saab as the representative to the Community Choice Aggregation Program; appoint Mayor Pro Tem Ashton as the Alternate; and, appoint Council Member Rodriguez as the second Alternate. STAFF MEMBER COMMENTS Council Member Saab thanked Assistant City Manager Oskoui for assisting in tonight’s meeting. ADJOURNMENT Mayor Vasquez adjourned the Regular City Council Meeting at 9:27 p.m.in memory of victims of the recent fires in California. MARIA ALICIA DUARTE, CMC SEAN ASHTON City Clerk Mayor