MINUTES OF THE
CITY COUNCIL OF THE CITY OF DOWNEY
SPECIAL MEETING
JUNE 15, 2022
The City Council of the City of Downey held a Special City Council Meeting on June 15, 2022, at 2:05 p.m., in the Council Chamber of the Downey City Hall, 11111 Brookshire Avenue, Downey, California, with Mayor Pacheco presiding.
Council Members:
Blanca Pacheco
Catherine Alvarez
Claudia M. Frometa
Donald E. La Plante
Mario Trujillo
Mayor
Mayor Pro Tern
Council Member
Council Member
Council Member
ALSO PRESENT: Gilbert Livas, City Manager
Lauren Langer, Interim City Attorney
Anil Gandhy, Director of Finance
Alicia Duarte, CIVIC, City Clerk
PUBLIC HEARING
1. ADOPTED PROPOSED BUDGET FOR FISCAL YEAR 2022-2023: Finance.
THAT THE CITY COUNCIL:
1) CONDUCTED A PUBLIC HEARING CONSIDERING THE ADOPTION OF THE CITY'S FISCAL YEAR 2022-2023 BUDGET AND THE ANNUAL APPROPRIATIONS LIMIT; AND, 2) UPON CONCLUDING, ADOPTED RESOLUTION NO. 22-8079, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADOPTING THE FISCAL YEAR 2022-2023
BUDGET AND ANNUAL APPROPRIATIONS LIMIT
Mayor Pacheco opened the Public Hearing at 2:06 p.m.
City Clerk Duarte affirmed receipt of the Proof of Publication. It was moved by Council Member Frometa, seconded by Mayor Pro Tern Alvarez, and carried 5-0, to receive and file the publication.
City Manager Livas commented regarding the presentation provided during the Budget Study Session on May 31, 2022.
Finance Director Gandhy presented the staff report and provided a timeline regarding the Budget Subcommittee Meeting and Budget Study Session. He shared that funds from the sale of the Back 20 was incorporated into the budget since the last presentation to the City Council. He provided an overview of the budget and noted the need to set aside funds for the General Plan Update. He went into detail regarding expected revenue projected by the City's consultant Hinderliter, de Llamas & Associates. He provided analysis regarding trends for tax revenues and noted an addition 5% in sales tax the City could pursue.
Council Member Trujillo asked regarding the funds allocated for Special Elections taking place during the fiscal year. City Clerk Duarte responded that an estimate has been requested from the Los City Council Minutes
Special Meeting - June 15, 2022
Angeles County Registrar -Recorder. City Manager Livas responded that the amount budgeted for the fiscal year is based on previous elections. Council Member Trujillo asked regarding the amount allocated.
City Manager Livas confirmed sufficient funding was allocated for elections. Finance Director Gandhy added that the City has provisions in place if additional funding is required.
Finance Director Gandhy detailed expenditures for the fiscal year, including future capital needs, the status of the PIERS unfunded liability, and new staff positions and reclassifications. He provided an economic overview regarding unemployment, housing, and inflation at the federal, state, county, and local levels. He shared anticipated budget challenges the City would be managing.
Council Member Trujillo requested an explanation of the phrase "trepidation exists over projected growth". Finance Director Gandhy responded that growing inflation and recession are factors that are difficult to predict based on previous years.
Council Member Frometa commented regarding the bear market and the potential for a recession.
Finance Director Gandhy responded indicators of a recession can include a decline in the S&P 500 and an interest rate increase such as the one recently announced by the Federal Reserve. He estimated that in the next three months, the extent of this issue should be clearer.
Council Member Frometa emphasized the need for a balanced budget and prudent fiscal management.
Director Gandy noted that the proposed budget is based on the City Council's priorities. He concluded his presentation by thanking his Finance Department staff, Management Analyst Maria Rivas, Assistant to the City Manager Vaniah De Rojas, and former Management Analyst Juddy Montenegro. He thanked City Manager Livas for his leadership.
Council Member Trujillo asked about Public Works expenditures in comparison to other cities.
Finance Director Gandhy responded that he will return to Council with the figures but noted that there is a clear quality to Downey streets and infrastructure.
Council Member Trujillo requested staff research Public Works expenditures in other cities. He noted a median near the intersection of Rosecrans Ave. and Lakewood Blvd. that required attention. He requested to relocate a Downey sign at the intersection of Rosecrans Ave. and Lakewood Blvd as it may be located within Bellflower city limits. City Manager Livas stated that staff will research the matter as this area is along the border between Downey and Bellflower. He responded that Downey spends more on streets than other cities. He shared that the City is eligible for grant funding to mitigate traffic as it is surrounded by four freeways. He explained that the City has spent funding to improve its arterial roads, including Firestone Blvd., Lakewood Blvd, and Imperial Hwy., and later cycled through neighborhoods.
He estimated $30 million will be spent in the first year of a three-year street improvement program with a $5 million annual expenditure.
Council Member La Plante expressed that he was looking forward to reviewing Arts and Culture funding. He commented regarding the alleys and requested an alley condition report. He commented regarding the need to review the entire plan of streets and alleys rather than divide the two. City Manager Livas responded that the Pavement Management Program was adopted by the City Council and would be provided to Council Member La Plante.
Council Member La Plante emphasized the need for a comprehensive review of the infrastructure budget. He questioned the expenditures for the fixed route transit system and the source of funding.
Finance Director Gandhy added that funding is allocated from Prop C in addition to the funding from Prop A. City Manager Livas confirmed that the funding does not come from the General Fund.
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Council Member La Plante questioned the revenue and the ridership of the fixed route transit system. City Manager Livas confirmed low usage of the fixed route transit, nothing that it was primarily used by students in prior years. He stated that the City Council previously modified the route to address the issues identified by Council Member La Plante and ridership decreased following the Covid-19 pandemic. He shared that staff is researching alternatives to the fixed route system.
Council Member La Plante asked what Prop A funding is allowed to be used towards. Public Works Director Consunji responded that Prop A funding is used for transit operations and capital improvements.
Council Member La Plante requested to specify which capital improvements may be funded.
Public Works Director Consunji responded that projects such as bus shelters or transit station improvements may be funded.
Council Member La Plante questioned whether Prop A funds can be applied to street improvements. Public Works Director Consunji responded that typically Prop C, Measure M, or Measure R funds are used for street improvements. Finance Director Gandhy added that Prop C can be used for street improvements if expenditures are reduced and the Prop C subsidies to Prop A are eliminated. City Manager Livas clarified that if the City moves away from a fixed route system and the program no longer needs Prop C subsidies, Prop C funding can be used on street improvements.
Council Member La Plante asked about Dial -A -Ride usage levels. Director Chacon characterized Dial -a -Ride usage as moderate and shared that usage has increased during the pandemic. He noted that no fare is being charged for Dial -A -Ride or Downey LINK and that much of the usage is for transportation to appointments at the City's medical centers.
Council Member La Plante commented regarding the cost of the fixed route system and alternative uses of the funding.
Council Member Trujillo commented regarding eliminating the fixed transit route system. City Manager Livas responded that staff is researching the process but needs to follow procedures related to other agencies such as the Los Angeles County Metropolitan Transportation Agency and the federal government. He stated that staff will bring an item back to Council.
Council Member Trujillo requested staff's recommendation on elimination of the fixed transit route system.
Council Member La Plante clarified that the issue was a matter of how to eliminate the fixed transit route system as opposed to whether to do so.
Council Member Trujillo commented regarding use of Uber as an alternative. City Manager Livas responded regarding alternatives to fixed route systems and that the City Council will decide when the item is brought before the City Council.
Mayor Pacheco said that this has been discussed by Council in the past. City Manager Livas concurred that the City has taken incremental steps in the process. Mayor Pacheco commented regarding changes to service routes and hours. City Manager Livas stated that some services were contracted to vendors.
CM Trujillo assured residents that notice will be provided before any services are eliminated and alternative options will be provided.
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Mayor Pacheco opened this item for public comment. Mayor Pacheco asked City Clerk Duarte if there were any written comments received regarding the Public Hearing item. Mayor Pacheco asked if there was anyone present who would like to comment on the Public Hearing Item.
Lee Squire, resident, commented regarding the quality of Downey streets and Measure S funds.
He thanked Finance staff for their work on the proposed budget.
Having noone else, Mayor Pacheco closed public comment. hwas moved byCouncil Member F00Eta'seconded by Mayor Pro Tern Alvarez and carried 5-
0.UzadnptReso|uUnnNV. 22-8079.aResolution ofthe City Council Vfthe City ofDowney Adopting the Fiscal Year 2022-2023 Budget and Annual Appropriations Limit.
STAFF COMMENTS
City Manager Livas thanked staff and commented regarding beginning his term during a recession and ending his time with the City during a pandemic. He praised staff's ability to navigate through difficult challenges and deliver 8balanced budget for 1Oconsecutive years.
Mayor Pacheco thanked Finance Director Gandhyand Finance staff for their hard work and 8�job well done. She thanked City W1ano08r LivoS and commented that the Special K888Ung vv0u|d be his last full meeting.
ADJOURNMENT
K8evnr Pacheco adjourned the Special City Council meeting 8t2:5O p.m. On June 15. 2022 in memory Ofthe E| Monte Police Officers killed in the line of duty.
MAR|AAL|CiADUARTE.CIVIC BLANCAPACHECO
City Clerk Mayor
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Special Meeting - June 15.2O22 4