Item No.
1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OFFICE OF THE CITY MANAGER
BY: JUDDY MONTENEGRO, SENIOR MANAGEMENT ANALYST
DATE: APRIL 8, 2025
SUBJECT: APPROVAL OF A LEASE AGREEMENT BETWEEN THE CITY OF
DOWNEY AND THE DOWNEY CITY EMPLOYEES FEDERAL CREDIT
UNION
EXECUTIVE SUMMARY
The City Council will consider approving a new Lease Agreement between the City of Downey and the Downey City Employees Federal Credit Union (division of CalCom Federal Credit Union). Since 1993, the City of Downey has entered into a lease agreement with the Downey City Employees Federal Credit Union to provide employees with convenient access to banking services and assist in meeting employee financial needs.
RECOMMENDATION
That the City Council:
Approve the Lease Agreement between the City of Downey and the Downey City Employees Federal Credit Union for leasing space at Downey City Hall, for a period of two (2) years beginning on July 1, 2025.
BACKGROUND
The City of Downey entered into its first lease agreement with the Downey City Employees Federal Credit Union in 1993 to provide employees with convenient access to banking services and assist in meeting employee financial needs.
The lease agreement has been renewed in 2007, 2009 and 2013. The 2013 agreement had two, two-year lease agreement extensions that were granted in 2015 and 2017. In 2019, the lease agreement was renewed with two, two-year lease agreement extensions.
The City exercised the first two-year lease extension in 2021 and the second extension in 2023.
APPROVED BY
CITY MANAGER
APPROVAL OF LEASE AGREEMENT BETWEEN THE CITY OF DOWNEY AND THE
DOWNEY CITY EMPLOYEES FEDERAL CREDIT UNION
APRIL 8, 2025
PAGE 2
ANALYSIS
The Credit Union notified the City of its desire to continue its lease with the City through June 30, 2027. Staff prepared a new lease agreement between the City of Downey and Downey City Employees Federal Credit Union extending the lease through June 30, 2027. The City has the right to terminate the lease upon 120 days’ written notice to the Credit Union.
As in the past, the Credit Union will be required to pay for its phone and internet service.
The Credit Union has agreed to a lease rate increase according to the U.S. Bureau of Labor Statistics-February 2025 Federal Consumer Price Index for the Los Angeles-Long Beach-Anaheim area. The rate increase will be 3.1 percent, increasing the current lease amount of $4,758.80 to $4,915.80 a year ($409.65 per month) for the space they use in City Hall. The new rental rate is also included in the new agreement.
CITY COUNCIL PRIORITIES
Fiscal Responsibility
FISCAL IMPACT
Approval of the recommended action will result in a revenue increase of $157 annually from July 1, 2025 to June 30, 2027 within the General Fund, Revenue Account No. 10-3- 4200.
ATTACHMENT
Attachment A: Lease Agreement between the City of Downey and the Downey City Employees Credit Union (Division of CalCom FCU)
Attachment B: February 2025 Federal Consumer Price Index – U.S. Bureau of Labor Statistics for the Los Angeles-Long Beach-Anaheim area.
ATTACHMENT A
Economic News Release
Bureau of Labor Statistics Economic News Release Consumer Price Index Table 4. Consumer Price Index for All Urban Consumers (CPI-U): Selected areas, all items index
Table 4. Consumer Price Index for All Urban Consumers (CPI-U): Selected areas, all items index, February 2025 [1982-84=100, unless otherwise noted]
Area
Pricing
Schedule(1)
Percent change to Feb. 2025 from:Percent change to Jan. 2025 from:
Feb.
2024
Dec.
2024
Jan.
2025
Jan.
2024
Nov.
2024
Dec.
2024
U.S. city average M 2.8 1.1 0.4 3.0 0.7 0.7
Region and area size(2)
Northeast M 3.9 1.5 0.6 3.7 0.8 0.8
Northeast - Size Class A M 4.1 1.4 0.6 3.9 0.9 0.8
Northeast - Size Class B/C(3)M 3.7 1.5 0.6 3.6 0.8 0.9
New England(4)M 4.5 2.0 0.8 4.0 1.3 1.2
Middle Atlantic(4)M 3.6 1.2 0.5 3.6 0.6 0.7
Midwest M 3.1 0.9 0.3 3.4 0.8 0.6
Midwest - Size Class A M 3.3 1.1 0.3 3.6 0.9 0.8
Midwest - Size Class B/C(3)M 3.0 0.8 0.3 3.2 0.7 0.5
East North Central(4)M 3.1 0.9 0.2 3.4 0.9 0.7
West North Central(4)M 3.1 0.9 0.4 3.4 0.7 0.5
South M 2.3 1.0 0.3 2.8 0.7 0.6
South - Size Class A M 2.2 1.1 0.4 2.6 0.5 0.6
South - Size Class B/C(3)M 2.3 0.9 0.3 2.9 0.7 0.6
South Atlantic(4)M 2.2 0.8 0.3 2.9 0.6 0.5
East South Central(4)M 3.4 0.9 0.4 3.9 0.4 0.5
West South Central(4)M 1.8 1.4 0.4 2.2 0.9 1.0
West M 2.6 1.1 0.6 2.4 0.5 0.6
West - Size Class A M 2.9 1.3 0.6 2.9 0.6 0.7
West - Size Class B/C(3)M 2.3 1.0 0.5 1.9 0.4 0.5
Mountain(4)M 1.8 0.7 0.6 1.4 0.1 0.2
Pacific(4)M 2.9 1.3 0.6 2.8 0.7 0.7
Size classes
Size Class A(5)M 3.0 1.2 0.5 3.1 0.7 0.7
Size Class B/C(3)M 2.7 1.0 0.4 2.9 0.7 0.6
Selected local areas
Chicago-Naperville-Elgin, IL-IN-WI M 3.8 1.3 0.1 4.3 1.2 1.2 Footnotes
(1) Foods, fuels, and several other items are priced every month in all areas. Most other goods and services are priced as indicated: M - Every month. 1 - January, March, May, July, September, and November. 2 - February, April, June, August, October, and December. (2) Regions defined as the four Census regions.
(3) Indexes on a December 1996=100 base.
(4) Indexes on a December 2017=100 base.
(5) Indexes on a December 1986=100 base.
(6) 1998 - 2017 indexes based on substantially smaller sample. (7) Indexes on a December 2001=100 base.
(8) Indexes on a 1987=100 base.
NOTE: Local area indexes are byproducts of the national CPI program. Each local index has a smaller sample size than the national index and is, therefore, subject to substantially more sampling and other measurement error. As a result, local area indexes show greater volatility than the national index, although their long-term trends are similar. Therefore, the Bureau of Labor Statistics strongly urges users to consider adopting the national average CPI for use in their escalator clauses.
U.S. BUREAU OF LABOR STATISTICS
ATTACHMENT B
Area
Pricing
Schedule(1)
Percent change to Feb. 2025 from:Percent change to Jan. 2025 from:
Feb.
2024
Dec.
2024
Jan.
2025
Jan.
2024
Nov.
2024
Dec.
2024
Los Angeles-Long Beach-Anaheim, CA M 3.1 1.2 0.3 3.3 1.1 0.9 New York-Newark-Jersey City, NY-NJ-PA M 4.2 1.1 0.3 4.0 0.8 0.7 Atlanta-Sandy Springs-Roswell, GA 2 2.1 0.7
Baltimore-Columbia-Towson, MD(6)2 3.2 1.5
Detroit-Warren-Dearborn, MI 2 3.3 0.7
Houston-The Woodlands-Sugar Land, TX 2 1.0 1.0
Miami-Fort Lauderdale-West Palm Beach, FL 2 2.9 1.4
Philadelphia-Camden-Wilmington, PA-NJ-
DE-MD 2 3.1 1.4
Phoenix-Mesa-Scottsdale, AZ(7)2 1.8 0.9
San Francisco-Oakland-Hayward, CA 2 2.7 1.8
Seattle-Tacoma-Bellevue, WA 2 2.5 1.1
St. Louis, MO-IL 2 2.0 0.5
Urban Alaska 2 2.9 0.6
Boston-Cambridge-Newton, MA-NH 1 3.9 1.5
Dallas-Fort Worth-Arlington, TX 1 2.8 1.7
Denver-Aurora-Lakewood, CO 1 2.3 0.2
Minneapolis-St.Paul-Bloomington, MN-WI 1 3.0 1.5
Riverside-San Bernardino-Ontario, CA(4)1 2.9 1.8
San Diego-Carlsbad, CA 1 3.8 1.6
Tampa-St. Petersburg-Clearwater, FL(8)1 2.3 1.2
Urban Hawaii 1 4.1 1.0
Washington-Arlington-Alexandria, DC-VA-
MD-WV(6)1 2.7 0.5
Footnotes
(1) Foods, fuels, and several other items are priced every month in all areas. Most other goods and services are priced as indicated: M - Every month. 1 - January, March, May, July, September, and November. 2 - February, April, June, August, October, and December. (2) Regions defined as the four Census regions.
(3) Indexes on a December 1996=100 base.
(4) Indexes on a December 2017=100 base.
(5) Indexes on a December 1986=100 base.
(6) 1998 - 2017 indexes based on substantially smaller sample. (7) Indexes on a December 2001=100 base.
(8) Indexes on a 1987=100 base.
NOTE: Local area indexes are byproducts of the national CPI program. Each local index has a smaller sample size than the national index and is, therefore, subject to substantially more sampling and other measurement error. As a result, local area indexes show greater volatility than the national index, although their long-term trends are similar. Therefore, the Bureau of Labor Statistics strongly urges users to consider adopting the national average CPI for use in their escalator clauses.
Table of Contents
Last Modified Date: March 12, 2025
U.S. BUREAU OF LABOR STATISTICS Consumer Price Index Office of Prices and Living Conditions Suitland Federal Center Floor 7 4600 Silver Hill Road Washington, DC 20212-0002
Telephone:1-202-691-7000 www.bls.gov/CPI Contact CPI