HomeMy WebLinkAboutMinutes 10-27-20 Regular MeetingI:Ih11TES OF THE
CITY COUNCIL OF THE CITY OF DOWNEY
REGULAR MEETING
OCTOBER 27, 2020
The City Council of the City of Downey held a Regular City Council Meeting on October 22
2020, at 6:38 p.m., in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenu
Downey, California, with Mayor Pacheco presiding. i
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Blanca Pacheco Mayor
Claudia M. Frometa Mayor Pro Tern
Sean Ashton Council Member (teleconference)
Rick Rodriguez Council Member
Alex Saab Council Member
ALSO PRESENT: Gilbert Livas, City Manager
John Oskoui, Assistant City Manager
Yvette M. Abich Garcia, City Attorney
Vaniah De Rojas, Assistant to the City Manager
Dean Milligan, Chief of Police
Mark Gillaspie, Fire Chief
Aldo E. Schindler, Community Development Director
Anil Gandhy, Finance Director
Delfino Consunji, Public Works Director
James McQueen, Human Resources Director
Jason Chacon, Recreation Manager
Alicia Duarte, CIVIC, City Clerk
The Invocation was delivered by Council Member Rodriguez. The Pledge of Allegiance was I
by Michael Calvert, Executive Director of the Downey Chamber of Commerce. i
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1. Mayor Pro Tern Frometa presented a Certificate of Appointment to Irma Saavedra, Library Advisory
Board, District 4.
2. Mayor Pacheco presented a Certificate of Appointment to Michael Murray, Independent Citizens'
Oversight Board, District 1.
3. Presentation to the City of Downey from Ben Sandoval, Administrator, Southeast Los Angeles
County Workforce Development Board.
CITY COUNCIL MEMBER ANNOUNCEMENTS; REQUESTS FOR FUTURE AGENDA ITEMS;
CONFERENCE/MEETING REPORTS
City Council Minutes
Regular Meeting - October 27, 2020
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Council Member Ashton welcomed the audience to the meeting. He mentioned Day Lig
Saving takes place Sunday and reminded the audience to set their clocks back one -hour.
i5ncouraged those planning to partake in trick -or -treating to practice social distancing protocols.
announced the Mobile Vote Center will open October 31, 2020 at the Metro's Green Line Station
Lakewood Blvd. I
Council Member Rodriguez welcomed the audience to the meeting. He reported attending the
grand reopening ceremony for the 99 Cents Only Store located at Stewart and Gray Rd. and
Paramount Blvd. He stated the number of COVID-19 cases is rising and encouraged the public to
follow safe health protocols.
Mayor Pacheco welcomed the audience participating in the meeting. She reported attending the
grand reopening ceremony for the 99 Cents Only Store and the virtual ASPIRE Afterschool Program.
She commented regarding how well the students navigate through the ZOOM session. She announced
upcoming events: Candy Crawl event, virtual Spooky Science event, drive in movie night at Downey
Adult School, and a virtual Dia de los Muertos event. She reminded the audience to vote and provided
the Vote -By -Mail Drop Box and Vote Center locations. She encouraged the audience to continue to
follow safe health protocols. She requested additional Police presence in the neighborhood of the Hully
Gully on weekends. She asked staff to address red light traffic signal violations at the intersection of
Stewart and Gray Rd. and Brookshire Ave.
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10[s] NDA PUBLIC COMMENT
Mayor Pacheco asked City Clerk Duarte if there was anyone on the teleconference line w
would like to comment on Non -Agenda items. Mayor Pacheco asked City Clerk Duarte if any writt
public comments were received regarding Non -Agenda items. I
Armando Herman, resident, commented regarding COVID-19, following safe health practice
and public officials. I
Lee Squire, resident, commented regarding following safe health practices and Veteran's Day
event.
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Members Rodriguez and Saab for the improvements they brought to the City and their years of service
to the community.
Lou P. Cruz, non-resident, submitted written comments regarding rent control and the Statewide
rent control ordinance providing caps on annual rent increases by 8%.
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Regular Meeting - October 27, 2020 2
Brian Medina, non-resident, submitted written comments regarding TreePeople's L.A. Irba77
Soils online survey.
Tanya Moreno, resident, submitted written comments regarding the 1-605 Corridor Improvement
Project's impact on the Downey community.
Tiame Osekby, non-resident, submitted written comments regarding the November 3, 2020
Election and in opposition of Measure 16.
Mike Ray, resident, submitted written comments regarding the illegal activities of the patrons at
the Hully Gully Dance Club and the surrounding neighborhood.
Vera Robles DeWitt, President of the Water Replenishment District, submitted written
comments regarding measures the Water Replenishment District has implemented to ensure Downey
residents have access to safe high quality water, protecting groundwater basins, and replenishing
groundwater supplies to ensure the basins maintain healthy water levels. She introduced the Wind
Initiative, an advanced water treatment facility that creates a resilient water future for the region.
Mayor Pacheco asked City Clerk Duarte if there were any written comments received regarding
Consent Calendar items. Mayor Pacheco asked City Clerk Duarte if there was anyone on the
teleconference line who would like to comment on Consent Calendar items.
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It was moved by Council Member Saab, seconded by Mayor Pro Tern Frometa and carried 5-0
to approve the remainder of the Consent Calendar with Mayor Pro Tern Pacheco abstaining from Item
No. 9.
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2. WARRANTS ISSUED: Warrant Nos. 346985 — 347296 EFT Nos. 10191 — 10218; Payroll Wi
Nos. 30004040 — 30004044; and, Manual Wire Nos. 2061 — 2064, in the total amount of
$5,310,980.96: Finance. i
3. ACCEPTED WORK FOR WELL NO. 10 REHABILITATION; APPROVED FINAL CONTRACT
AMOUNT OF $152,914; AND, AUTHORIZED THE DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER TO FILE NOTICE OF COMPLETION (MISCELLANEOUS PROJECT NO. 336): Public
Works.
4. ACCEPTED WORK FOR WELL NO. 5 REHABILITATION; APPROVED FINAL CONTRACT
AMOUNT OF $135,944; AND, AUTHORIZED THE DIRECTOR OF PUBLIC WORKS/CITY
ENGINEER TO FILE NOTICE OF COMPLETION (MISCELLANEOUS PROJECT NO. 337): Public
Works.
City Council Minutes
Regular Meeting — October 27, 2020 3
contribution of CalPERS reportable compensation; in 2013 the Governor created a new tier and thi�
City also created a second -tier retirement formula, Public Employee's Pension Reform; and, in June,
2020 third party actuary was engaged to review the City's pension plan to provide options. Payments
2re projected to increase approximately 39% over the next 10 years causing the debt to becom�,!
unsustainable. He provided a brief overview of the Pension Obligation Bond, primary risks and actual
historical interest rate and market trends, bond objectives and estimated annual gross $54.6 million
c,avings, and various stress test scenarios.
City Manager Livas stated the stress test was not forecasted merely on current market
conditions rather various interest rates were compared and scenarios were conducted even if CalPERS
doesn't achieve their forecast of 7%, if only 4% is achieved the City would still save over the course of
CalPERS lifetime. The purpose of conducting the stress tests is to provide Council assurance even with
a probability of the inherent risk would still leave the probability of 80% present value savings.
Council Member Saab inquired what has been the lowest percentage for CalPERS. Direct"
Gandhy confirmed CalPERS fell as low as . 11 % for one year with a high of 20%; however, the test w
based on a 23 year term. He stated even under distress scenarios, the City will be in a mo
advantageous position with a Pension Obligation Bond than without one.
Mayor Pro Tern Frometa thanked Director Gandhy for the presentation and stated given the
potential financial uncertainty an estimated savings of $55 million over the proposed time period would
be ideal for the City.
Mayor Pacheco asked City Clerk Duarte if there was anyone on the teleconference line wfr*
would like to comment on Item No. 10. Mayor Pacheco asked City Clerk Duarte if there were a
written comments received on Item No. 10. Mayor Pacheco asked if there was anyone present w
would like to comment on Item No. 10.
Lee Squire, resident, commented regarding the Pension Obligation Bonds and setting aside
bonds in a Section 115 trust, and the City property sales.
Brian Heyman, resident, thanked Director Gandhy for an excellent presentation. He
commented in support of issuing the Taxable Pension Obligation Bond, Series 2021.
It was moved by Mayor Pro Tem Frometa, seconded by Council Member Saab and carried 5-0
to introduce an ordinance of the City Council of the City of Downey authorizing the issuance and sale of
its Taxable Pension Obligation Bonds, Series 2021, in an aggregate amount not to exceed
$150,000,000, to refund a portion of the City's obligation to the California Public Employees' Retirement
System, and authorizing the execution and delivery of a First Supplemental Trust Agreement, a Bond
Purchase Agreement and a continuing Disclosure Certificate and the preparation of an official
statement and other matters related thereto
It was moved by Mayor Pro Tern Frometa, seconded by Council Member Ashton and carried 5-
0 to authorized the City Manager, the Assistant City Manager, and/or the Finance Director to execute
the following documents, and any other related documents, necessary to issue the Taxable Pension
Obligation Bonds, Series 2021, provided the principal amount does not exceed $150 million:
a. First Supplemental Trust Agreement
b. Preliminary Official Statement (contains
Appendix F)
C. Bond Purchase Agreement
the continuing Disclosure Certificate at
City Council Minutes
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lfiayor Pacheco adjourned the Regular City Council Meeting at 8:00 p.m. in memory of Sergeant
Harry Cohen, Riverside Sherriff Department, who died while on duty; Cesar Arboleas, longtime Downey
resident; Robert Pacheco, longtime Downey resident; and, the lives lost due to COVI 11
cLALJbIA-M. FROMEI-A
City Clerk Mayor
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Regular Meeting — October 27, 2020 6