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2013-07-02 City Council Minutes (Special and Regular)MINUTES OF THE SPECIAL AND REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, JULY 2, 2013, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Maisano, Ybarra, Martinez MEMBERS ABSENT: None The Special meeting of the City Council was called to order at 8:30 a.m. by Mayor McCormick. PUBLIC COMMENT Interim City Clerk Dana Reed announced that this was the time allotted for public comment on any matter on the special meeting portion of the agenda, that is, closed session only. Mayor McCormick inquired whether anyone in the audience wished to address the City Council. There was no response. CLOSED SESSION At 8:30 a.m. it was moved by Maisano and seconded by Davis that the City Council go into closed session to discuss the items listed under closed session. Motion carried, 5-0. 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Government Code Section 54956.9(d)(1) Bruce V. Malkenhorst, Sr. vs. City of Vernon OCSC Case No. 30-2013-00650310-CU-BC-CJC 2. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Agency Designated Representatives: Mark Whitworth, Teresa McAllister Employee Organizations: Vernon Police Management Association, Vernon Police Officers’ Benefit Association, Vernon Firemen's Association, Vernon Fire Management Association, Teamsters Local 911, and International Brotherhood of Electric Workers Local 47. At 9:02 a.m., it was moved by Maisano and seconded by Davis, that the City Council exit closed session. Motion carried, 5-0. City Attorney Nicholas Rodriguez announced that there was no reportable action. At 9:03 a.m., it was moved by Maisano and seconded by Davis to recess the special meeting of the City Council. The Regular meeting of the City Council was called to order at 9:03 a.m. by Mayor McCormick. The Police Department Honor Guard led the flag salute. Special and Regular City Council Meeting Minutes July 2, 2013 Page 2 of 14 CHANGES TO THE AGENDA Interim City Clerk Dana Reed announced that there are no changes to the agenda. However, there are revisions to the resolution associated with public hearing item no. 1, the Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing. PUBLIC COMMENT Interim City Clerk Dana Reed announced that this was the time allotted for public comment. Mayor McCormick inquired whether anyone in the audience wished to address the City Council. Marisa Olguin, President of the Vernon Chamber of Commerce, invited all to attend the Flag Retirement Ceremony to be held later this afternoon. Independent Reform Monitor John Van de Kamp reported on his attendance to the new Mayor of Los Angeles (“LA”) inauguration ceremony. Van de Kamp suggested that the City Council consider inviting the new LA Mayor Eric Garcetti and other local Mayors to Vernon. Van de Kamp perceives that Garcetti is open to visiting Vernon. This will place Vernon in a new role and relationship with LA. PRESENTATIONS 1. The Police Department will conduct a Swear-In ceremony for the newly promoted Patrol Sergeant and Police Captain. The Interim City Clerk is to administer the Oath of Office for said promotions. Police Chief Daniel Calleros reported on the vacant positions, advising that there were four candidates for Patrol Sergeant and three candidates for Police Captain. Based on testing results, Nicholas Perez is promoted to Patrol Sergeant and Michael Gillman is promoted to Police Captain. Calleros provided a background for each of the new appointees and administered the Oath of Office. The Mayor called a recess at 9:15 a.m. The meeting resumed at 9:20 a.m. 2. The City Council shall receive and file a report introducing Public Sector Personnel Consultants (PSPC) who will be performing a citywide classification and compensation study for the City of Vernon as a result of a competitive proposal process (5 minutes). Human Resources Director Teresa McAllister reported on the request for proposals, the review and interview process that ultimately selected Public Sector Personnel Consultants (“PSPC”) to perform the citywide classification and compensation study. McAllister reported on PSPC’s experience. She anticipates that the study will be completed by October or November of this year. PSCPC Project Manager Kate Tilzer looks forward to working with Vernon and meeting the employees. Special and Regular City Council Meeting Minutes July 2, 2013 Page 3 of 14 3. The City Council shall receive and file a report introducing Alliant Insurance Services as the newly selected Benefits Consultant for the City of Vernon as a result of a competitive proposal process (5 minutes). Human Resources Director Teresa McAllister reported on the request for proposals, interview process and the selection of Alliance Insurance Services (“Alliance”) as the Benefits Consultant. Alliance is well qualified and has a reasonable renegotiated bid. Michael Menzia of Alliance reported on the company’s experience working with public entities. They are excited to work with Vernon. It was moved by Maisano and seconded by Davis to receive and file the reports introducing Public Sector Personnel Consultants and Alliance Insurance Services. Motion carried, 5-0. 4. Presentation of new City website by IT Programmer/Analyst Jared Miller (20 minutes). City Administrator Mark Whitworth advised that he had instructed the IT Department to construct a website that is user friendly and available to all. He advised that the various departments will be presenting on their own web pages at upcoming meetings. IT Programmer/Analyst Jared Miller presented on the City website which was designed to be more open and transparent. The site was build in-house and is customizable and able to connect with other City software. This allows for greater efficiency and reduces costs. Each department manages and controls its own content. Miller presented an overview of the City’s homepage and City Clerk Department’s pages, including the accessibility to public meeting documents and agendas. Miller reported on future projects including an electronic and emergency notification system and online bill pay. Staff is continuously working on ways to improve; he welcomed anyone that had a questions, suggestion, or issue with the site, to please contact him. Interim City Clerk Dana Reed expressed his desire to transition to electronic files by updating the City’s retention schedule. He will be working with the City Attorney’s Office on said project. President of the Vernon Chamber of Commerce Marisa Olguin commended City staff on the improvements to the City website. It provides open and transparent access to information and resources. She is very pleased. As he prepares for his six month report due in July, Independent Reform Monitor John Van de Kamp advised that there has been a great deal of progress. The new website illuminates the progress that has been made. Public Information Officer Fred MacFarlane commented that the new website makes Vernon approachable for all throughout the world. He recommended the use of video to further enhance the website in order to convey messages. Special and Regular City Council Meeting Minutes July 2, 2013 Page 4 of 14 Per Mayor McCormick’s request, Miller announced that the City’s website is www.cityofvernon.org. PUBLIC HEARINGS 1. Public Hearing: Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing on the proposed issuance of the California Statewide Communities Development Authority of its revenue bonds in one or more series in an amount not to exceed $7,000,000. Resolution No. 2013-65 - A Resolution of the City Council of the City of Vernon Approving the Issuance of Revenue Bonds by the California Statewide Communities Development Authority in an aggregate principal amount not to exceed $7,000,000, for the purpose of refinancing certain food processing facilities owned or operated by 3450 Vernon Avenue, LLC, or an affiliate thereof, and paying certain costs of issuance, and other related matters. [Note: There is no financial obligation to the City of Vernon as a result of the Bond financing.] Recommendation: (1) Find that adoption of the proposed resolution for the issuance of the Bonds required for the financing, refinancing, acquisition, and capital projects implementation, which are exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. Subsequently construction activity could be subject to CEQA; and (2) Approve the resolution which would allow 3450 Vernon Avenue, LLC or related affiliate entity, also known as Golden West Trading Company, Inc. to issue and sell Bonds with a maximum principal amount of $7,000,000. At 9:40 a.m., under California Government Code section 6586.5, the Tax Equity and Fiscal Responsibility Act (“TEFRA”), Mayor McCormick opened public hearing concerning the proposed bonds to be issued by the California Statewide Community Development Authority, specifically identified as Revenue Bonds, in an amount not to exceed $7,000,000. He noted that TEFRA requires, among other things, that the issue be approved by the elected officials of the applicable governmental entity, after a public hearing, following reasonable public notice. The public hearing provides the public an opportunity to comment on the use of the tax-exempt funds for the intended purpose. Director of Finance William Fox reported on the proposed and potential savings for the entity through lower interest rates. Fox recited the two revisions to the resolution: “WHEREAS, the proposed loan financing will be tax exempt income to investors and the effective interest rate will therefore be demonstrably lower for the borrower than if the loan were obtained without the tax exempt status; WHEREAS, undertaking the project in a timely fashion will cause employment benefits, both due to the temporary construction and installation jobs, and to the permanent expansion of the facility.” Special and Regular City Council Meeting Minutes July 2, 2013 Page 5 of 14 Fox explained that the proceeds will be used to update the building and equipment. The City’s role is an approving authority; there are no financial ramifications to the City. The City is obligated to review all transactions within its jurisdiction. Fox recommends approval as doing so will keep and create jobs and promote a healthier community. Mayor McCormick recalled that a similar request was approved for Clougherty Packing in the past. He inquired whether there was anyone in the audience that wished to comment on the recommendation. No one responded. At 9:46 a.m., Mayor McCormick closed the public hearing. It was moved by Davis and seconded by Ybarra to approve Resolution No. 2013-65 incorporating the two revisions. Motion carried, 5-0. CONSENT CALENDAR It was moved by Maisano and seconded by Martinez to approve the matters listed on the Consent Calendar as recommended. Motion carried, 5-0. Claims Against the City (to be received and filed) 1. Claim for Damages received on June 24, 2013 from MetLife auto and Home as subrogee of Carlos Hernandez in the amount of $3,181.16. Minutes Approval 2. Minutes of the Regular City Council Meeting held June 18, 2013, to be received and filed. Warrant Registers 3. Ratification of City Warrant Register No.1381 to record the following voided checks: a. Check No. 341214 in the amount of $49.20; and b. Check No. 341200 in the amount of $160.00; and c. Check No. 341256 in the amount of $10.00. 4. Approval of City Warrant Register No. 1382, totaling $995,353.01, which covers the period of June 11, through June 24, 2013, and consists of the following: a. Ratification of wire transfers totaling $773,338.82; and b. Ratification of the issuance of early checks totaling $80,425.34; and c. Authorization to issue pending checks totaling $141,588.85. 5. Approval of Light & Power Warrant Register No. 347, totaling $4,369,182.98, which covers the period of June 11, through June 24, 2013, and consists of the following: a. Ratification of wire transfers totaling $4,164,399.10; and Special and Regular City Council Meeting Minutes July 2, 2013 Page 6 of 14 b. Ratification of the issuance of early checks totaling $126,917.61; and c. Authorization to issue pending checks totaling $77,866.27. 6. Approval of Gas Warrant Register No. 135, totaling $50,400.22, which covers the period of June 11, through June 24, 2013, and consists of the following: a. Ratification of the issuance of early checks totaling $50,101.37; and b. Authorization to issue pending checks totaling $298.85. City Administration Department 7. Resolution No. 2013-66 - A Resolution of the City Council of the City of Vernon Amending Resolution No. 2013-57 regarding the Compensation, Costs and Benefits of its Employees (“citywide Personnel and Salary Resolution”) by Amending Subsection 2(a) of Section 15 of the citywide Personnel and Salary Resolution (Amendment No. 1). Recommendation: (1) Find that adoption of the proposed resolution is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve and adopt Amendment No. 1 to Resolution No. 2013-57 to amend Section 15: City Council Department, Subsection 2a – Coverage After Retirement, to state: “City Council members are entitled to the same retiree medical benefits offered to all full-time regular employees as identified under any citywide resolution for retiree medical benefits in effect at the time Council members retire.” City Clerk Department 8. Resolution No. 2013-67 - A Resolution of the City Council of the City of Vernon Appointing the City’s Voting Delegate and Alternate for the Annual Business Meeting (General Assembly), of the League of California Cities 2013 Annual Conference. Recommendation: (1) Find that approval of the Resolution is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve the Resolution appointing the Mayor Michael McCormick as the Delegate and Mayor Pro Tem William Davis as the Alternate for the Annual Business Meeting (“General Assembly”) of the League of California Cities 2013 Annual Conference; and (3) Authorize staff to complete and submit the 2013 Annual Conference Voting Delegate/Alternate Form to the League of California Cities Office. Special and Regular City Council Meeting Minutes July 2, 2013 Page 7 of 14 Community Services and Water Department 9. Request for approval to advertise ‘Citywide Cold Planing and Striping Phase I,’ Project Contract No. CS-0363. Recommendation: (1) Find that the approval of the proposed Citywide Cold Planing and Stripping Phase I Project is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15301, Existing Facilities, part (c), existing highways and streets; and (2) Approve the Notice Inviting Bids and Bid Specifications for ‘Citywide Cold Planing and Striping Phase I Project,’ Contract No. CS-0363. Fire Department 10. Activity Report for the period of June 1, through June 15, 2013, to be received and filed. Light and Power Department 11. Resolution No. 2013-68 - A Resolution of the City Council of the City of Vernon Approving and Authorizing the execution of the First Amendment to the Amended and Restated Red Rock Access Easement and License Agreement by and between the City of Vernon and North Sky River Energy, LLC. Recommendation: (1) Find that approval is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Adopt a Resolution approving the First Amendment to the Amended and Restated Red Rock Access Easement and License Agreement dated March 6, 2012, pursuant to Resolution No. 2012.38, and in the form attachment to the Resolution. This pertains to non-exclusive easements for access over and across certain real property located in Kern County, California, and the proposed amendment will incorporate customary lender protections. Police Department 12. Activity Log and Statistical Summary of Arrest and Activities for the period of June 1, through June 15, 2013, to be received and filed. NEW BUSINESS Finance Department 1. Resolution No. 2013-69 - A Resolution of the City Council of the City of Vernon Adopting an Appropriation Limit for the Fiscal Year Ending June 30, 2014, pursuant to Government Code Section 7910. Recommendation: (1) Find that adoption of the Fiscal Year 2013-2014 Appropriation Limit proposed is exempt under the Special and Regular City Council Meeting Minutes July 2, 2013 Page 8 of 14 California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Establish the City’s Appropriation Limit for the Fiscal Year 2013-2014 in the amount of $962,096,932. Director of Finance William Fox advised that the appropriation limit is required under the California Constitution. Fox provided background information advising that the limit is a way of limiting government spending. He reported on the method of calculations. Vernon’s limit is $55 million. For its government type of operation, Vernon is allowed to spend $962 million. Vernon has complied with the requirement and is within the allowed limit. It was moved by Ybarra and seconded by Maisano to approve Resolution No. 2013-69. Motion carried, 5-0. Fire Department 2. Approval of the First Amendment to Contract Number C- 119976 between the City of Los Angeles and the City of Vernon for the 2010 UASI Grant. Recommendation: (1) Find that approval of the proposed agreement is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve the First Amendment to Contract No. C-119976 between the City Los Angeles and the City of Vernon in connection with the 2010 Urban Area Security Initiative Grant to return unused funds. Fire Chief Michael Wilson reported that approximately $16,000 will be returned from the 2010 Urban Area Security Initiative (“UASI”) Grant. Wilson explained that due to AB46, there was a delay in the final agreement for said grant. The period for the expenditure of funds was consequently shortened. Wilson noted that all the expenditures during the period were 100% reimbursed for 2010 through the grant, the funds being returned represent unused funds. It was moved by Martinez and seconded by Davis to approve the first amendment to Contract Number C-119976 with the City of Los Angeles. Motion carried, 5-0. Light & Power Department 3. Request for Approval of City of Vernon Amendment No. 2 to Contract No. GD-0013 with AM Ortega for Natural Gas Transmission Pipeline Modifications and Construction of Launcher and Receiver for In-line Testing Instruments Recommendation: (1) Find that the approval is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15301 because the proposal will not require any new construction, and Special and Regular City Council Meeting Minutes July 2, 2013 Page 9 of 14 the only physical change to the environment is excavating existing pipelines; and (2) Approve an amendment to the existing contract GD-0013 with A.M. Ortega Construction, Inc., identified as Amendment No. 2, to provide additional funds in the amount of $246,000, for the work performed beyond the approved contract budget, required to successfully complete the in-line testing instruments project on schedule in order to meet federal safety standards and to protect the public health and safety. Light and Power Director Carlos Fandino reported on the assessment of the natural gas pipeline system required every seven years. The City Council was made aware of the several issues encountered which delayed the project. Completion of the work was critical. The original scope of work and costs were exceeded. Fandino noted that the $75,000 approved through Amendment No. 1 was also exceeded. Due to the risk in public safety, staff allowed the work to continue. Additional costs could not be known until the work was completed. The project is now complete and the preliminary reports show the pipeline to be safe. Fandino sought approval of Amendment No. 2 providing additional funds in the amount of $246,000. It was moved by Maisano and seconded by Ybarra to approve Amendment No. 2 to Contract GD-0013 with AM Ortega. Motion carried, 5-0. 4. Request for Approval of Amendment No. 2 for the Interstate Gas Services, Inc. Service Agreement. Recommendation: (1) Find that the approval is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve Amendment No. 2 for the Interstate Gas Services, Inc. (“IGS”) Service Agreement for payment of additional funds in the amount of $33,000 for consultative service work completed during the safety assessment of the City gas transmission line mandated by the Pipeline Hazardous Materials Safety Administration (“PHMSA”). Pursuant to Resolution No. 10,041 and 2010-134, the City agreed to compensate IGS an amount not to exceed $140,000 for services rendered within a given fiscal year. As a result of the PHMSA project, IGS was enlisted for additional work, above and beyond that indicated within the original established service agreement; and (3) Authorize Light & Power to renew the current IGS contract for fiscal year 2013-2014, for strategic consultation on matters relating to the City of Vernon’s Natural Gas Operations Management on an as- needed basis with the understanding that the contract will be subject to the City’s request for proposal process for fiscal year 2014-2015. Based upon a determination that the best interests of the City are served by continuation of the contract for fiscal year 2013-2014, without a competitive selection process, Light & Power concludes that competitive bidding is not required for the professional services contract Special and Regular City Council Meeting Minutes July 2, 2013 Page 10 of 14 with IGS, pursuant to Section 2.17(A)(10) of the Vernon Municipal Code. It is requested that the City Council grant an exemption from the competitive selection process, pursuant to Section 2.17.12(B)(2) of the Vernon Municipal Code (best interests). Light and Power Director Carlos Fandino advised that Dan Bergmann of Interstate Gas Services, Inc. (“IGS”) assisted with various gas projects. Specifically, due to the issues with the natural gas system assessment, Bergmann was needed on-site to ensure the completion of the project and compliance with Pipeline Hazardous Materials Safety Administration requirements. It was moved by Maisano and seconded by Davis to approve Amendment No. 2 with Interstate Gas Services, Inc. Motion carried, 5-0. OLD BUSINESS City Administration Department 1. Housing Commission Request to Reconsider Recommendation to Divest City-Owned Housing Units in Huntington Park. Recommendation: (1) Find that approval of the recommendation is exempt from the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) The Vernon Housing Commission recommends the City Council again reconsider the divestment of the vacant City-owned housing units in Huntington Park in light of improved market conditions, the City’s current fiscal situation, and the lack of interested renters at the previously established market rents. Any decision or direction by the City Council will be reported to the Housing Commission at its September 11, 2013 meeting. City Administrator Mark Whitworth reported that the Vernon Housing Commission requested that the City Council reconsider the divestment of the units in Huntington Park. There are five units in Huntington Park, two of which are currently occupied. Whitworth presented on the appraisal information. During the third property management firm Solari Enterprises’ presentation at the Commission meeting, the sale of the units or a reduction in the rental rate was discussed. Mayor Pro Tem and Commission Member Davis opined that the rent was initially set too high. The rate has been reduced. He recommended that the divestment of the property be revisited in a few years. In the interim, the units can be leased at the reduced rate. Mayor McCormick agreed that the rent rate was set too high. He is opposed to the sale of the properties. Councilmember Maisano also concurred that the original rent was set too high for the area. Special and Regular City Council Meeting Minutes July 2, 2013 Page 11 of 14 Although he agrees that the original rent was set to high, Councilmember Ybarra stated that the Huntington Park units should be sold, and that the focus should be in Vernon. Mayor McCormick recommended that the Council wait to see whether the units can be leased at the lower rate. It was moved by Davis and seconded by Maisano to not divest the vacant units in Huntington Park. Motion carried, 4-1, with Ybarra in opposition. ORDINANCES 1. Ordinance No. 1212 - An Ordinance of the City Council of the City Vernon, California, adding Section 2.1.1, to Article I of Chapter 2 of the Code of the City of Vernon, relating to the Rules of Order for the Conduct of Council Proceedings. (second reading) Recommendation: (1) Find that approval of the Ordinance adopting Rosenberg’s Rules of Order is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Adopt an Ordinance that will select Rosenberg’s Rules of Order as the rules of order for the conduct of Council proceedings as well as the proceedings of all City Boards and Commissions. It was moved by Davis and seconded by Maisano to adopt Ordinance No. 1212. A role call vote was taken: - Councilmember Martinez, yes - Councilmember Ybarra, yes - Councilmember Maisano, yes - Mayor Pro-Tem Davis, yes - Mayor McCormick, yes Motion carried, 5-0. ORAL REPORTS Police Chief Daniel Calleros reported on truck battery thefts in unsecured parking areas of two local businesses. The thefts occurred on June 19, 2013; a total of seven truck batteries were taken. Detectives will be reviewing video footage for leads. On June 25, 2013, approximately 100 gallons of diesel fuel was reported stolen in the 4300 block of Bandini Boulevard. Detectives will be following up on leads. On June 29, 2013, a burglary was reported in the 2500 block of Santa Fe Avenue, wherein suspects broke-into the building. The incident was captured on surveillance video. Calleros advised that the suspect may be connected to a previous burglary where an arrest was made. Said suspect was released on a bond but is scheduled to appear in court early next week. Special and Regular City Council Meeting Minutes July 2, 2013 Page 12 of 14 Calleros reported on the Department’s participation at the Farmer John Health Fair on June 28, 2013. He reported on vandalism at a vacant lot on Santa Fe Avenue. Fire Chief Michael Wilson announced the completion of the fire engineers practical exam, Anthony Fish was the top candidate and will be promoted. Four engineer positions were left vacant as a results of the PARS early retirement program. Said positions were filled, a presentation is scheduled for August. Wilson noted that the Fire Department also participated at the Farmer John Health Fair on June 28, 2013. He announced the flag retirement ceremony later this day at Fire Station No. 1. The Department will be training on the use of the thermal image camera purchased through the UASI grant. Wilson thanked Captains Michael Langer and Todd Painton for conducting training for other agencies. Through their connections and the use of grants, equipment such as the jaws-of-life has been donated to the City. He also thanked KIA motors for providing 9 new vehicles for training purposes. Wilson reported on commercial fires that occurred on June 18 and June 27, 2013. On June 28, 2013, units responded to a traffic collision in which an individual was trapped. Director of Community Services and Water Department Kevin Wilson reported that the County is conducting work on Bandini Boulevard to synchronize the signals and improve traffic flow. Concrete sidewalks repair is being conducted throughout the City, the work is ongoing. Wilson explaining that the City will be contracting for cold plaining to address city streets repair. This is a different method than previously used, and is an effort to save on costs. Last year the City contracted for slurry-seal services, but the cost proved to be excessive. Wilson explained that his intention is to pool resources with the City of Los Angeles’ slurry seal contract and save funds. Wilson reported that there has been an increase in construction in Vernon. Director of Light & Power Carlos Fandino reported on power outages on June 18 and June 23, 2013, caused by Mylar balloons. A truck collision incident with a power pole caused a 43 minute power outage on June 26, 2013. On June 28, 2013 a power outage occurred when a contractor excavating to repair a customer’s fire service line struck an energized underground conduit. On June 1, 2013 there was another traffic collision incident involving a power pole; however, there was no power outage as a result. In response to Mayor Pro-Tem Davis’ inquiry on the construction on Fruitland Avenue from Santa Fe Avenue to Pacific Boulevard, Director of Community Services Kevin Wilson advised that Southern California Gas Company was replacing a gas main. The line was leaking and an emergency encroachment permit was issued. Special and Regular City Council Meeting Minutes July 2, 2013 Page 13 of 14 Director of Finance William Fox reported on the interview process for the financial advisor with a potential selection by next week. He reported that the close of the request for proposals (“RFP”) for an external auditing firm is extended until July 3, 2013, as specific work was not included in the original RFP, and there has been a lack of response; greater outreach was conducted. Chief Deputy Director David LeDuff, sitting in for the Director of Health and Environmental Control, reported that on April 24, 2013, the Department of Toxic Substances Control (“DTSC”) ordered Exide Technologies (“Exide”) to suspend operations. However, Exide contested the state’s order and an administrative judge ruled on June 17, 2013, to allow Exide to continue operations. LeDuff reported that a large portion of hazardous material that was being stored at Four Star Chemical has been removed. A noticeable improvement in housekeeping has been observed. The assessment of contaminated soils is scheduled to begin this day. He anticipates a report later this month. The Health Department will continue to monitor the site very closely and keep the City Council informed. In response to Mayor Pro-Tem Davis, LeDuff advised that Exide is back in full operation. In response to Councilmember Ybarra, LeDuff advised that Exide will continue to work with the Air Quality Management Department to resolve the issues. Human Resources Director Teresa McAllister reported that there have been several labor unit meetings. She thanked the employees for completing the position analysis questionnaire. The employee benefits consultants, Alliant Insurance Services, have been gathering data and census. There will be a benefits committee developed within the upcoming weeks as a means to provide the consultant with additional background information. McAllister thanked Petrelli Electric for sponsoring the safety employees’ retirement luncheon. This is the second event they have sponsored. Assistant to the City Administrator Alex Kung announced that the Oversight Board of the Successor Agency to the Redevelopment Agency meeting on July 4, 2013, is cancelled and rescheduled to July 11, 2013. The Oversight Board will be considering the approval of the long-range property management plan. The Successor Agency to the Redevelopment Agency will be considering the ratification of the sale of the disposition of 4900 Pacific Boulevard at the conclusion of the City Council meeting. Interim City Clerk Dana Reed clarified that the closed session matters were not concluded, the record will show that the Special City Council meeting was recessed until after the conclusion of the Successor Agency meeting. City Administrator Mark Whitworth reported that the JLAC one- year response was due on June 28, 2013. Staff requested additional time and the response will be sent by July 3, 2013. Special and Regular City Council Meeting Minutes July 2, 2013 Page 14 of 14 Whitworth reported on meetings with Mercury Public Affairs and Chris Lahaen on strategic planning. Key staff will be meeting for the third time with large utility users at Farmer John. Independent Reform Monitor John Van de Kamp’s report is due by the end of July. Whitworth announced the Special City Council meeting on July 3, 2013, at 8:00 a.m. The regular City Council meeting on July 16, 2013 is cancelled. The next meeting thereafter is August 6, 2013. McCormick invited all to the flag retirement ceremony later this day at Fire Station No. 1. At 10:36 a.m., it was moved by Maisano and seconded by Davis to adjourn the Regular City Council meeting. Motion carried, 5-0. At 10:43 a.m., the Special City Council meeting resumed. CLOSED SESSION At 10:43 a.m. it was moved by McCormick and seconded by Martinez that the City Council go into closed session to finish discussing the last item listed under closed session. Motion carried, 5-0. 2. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Agency Designated Representatives: Mark Whitworth, Teresa McAllister Employee Organizations: Vernon Police Management Association, Vernon Police Officers’ Benefit Association, Vernon Firemen's Association, Vernon Fire Management Association, Teamsters Local 911, and International Brotherhood of Electric Workers Local 47. At 10:59 a.m. it was moved by Maisano and seconded by Martinez, that the City Council exit closed session. Motion carried, 5-0. City Attorney Nicholas Rodriguez announced that there was no reportable action. At 11:00 a.m., it was moved by Martinez and seconded by Ybarra, to adjourn the Special City Council meeting. Motion carried, 5-0. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Dana Reed Interim City Clerk