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2014-02-04 City Council MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, FEBRUARY 4, 2014, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Maisano, Ybarra, and Martinez MEMBERS ABSENT: None The meeting was called to order at 9:00 a.m. by Mayor McCormick. Deputy City Attorney Scott Porter led the flag salute. CHANGES TO THE AGENDA Mayor McCormick announced that there are no changes to the agenda. PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. No one responded. PRESENTATIONS 1. Presentation by Vasquez and Company, LLC on the Annual Financial Report for fiscal year 2012-2013. Finance Director William Fox reported on and introduced the independent auditing firm Vasquez and Company LLC, whose representatives were in attendance to present on the results of the Fiscal Year 2013 Annual Financial Report. Lead Partner Margaret McBride noted that this is the firm’s first year working with the City. Partner Roger Martinez oversaw the audit for the utility portion. McBride advised that the City’s Finance team was knowledgeable, cooperative and transparent in response to the auditing team’s inquiries. McBride reported that the results are an unmodified “clean” opinion; the City’s finances accurately present the City’s financial position. As part of the process, the control structure, the checks and balances, are reviewed; no weaknesses or deficiencies were identified. The audit also reviewed the City’s compliance of various laws and regulations related to finance; no weaknesses were identified in the internal control and there were no incidents of non-compliance. McBride reported that the Single Audit was also resulted in an unmodified “clean” opinion. She reported on the thorough review of all the various components, advising that no errors or deficiency were found. The quality of the financial statements is reasonable and appropriate, consistently applied. No irregularities or illegal Regular City Council Meeting Minutes February 4, 2014 Page 2 of 10 acts were identified. McBride noted that the audit is independent of City. The City’s Management is responsible for the Financial Statement. McBride reported on two new accounting pronouncements that were implemented, GASB 63 and GASB 65. McBride also reported on future accounting pronouncements including GASB 68 for unfunded pension. Martinez advised that the utility audit is more complex, but reported that the results revealed that items were properly recognized. The billing or charges to the rate payers were reviewed, and no issues were found. McBride concluded by reporting on the comments for management as follows: 1. Formalize and condense the accounting policies and procedures. 2. Submit Quarterly Reports to the City Council with respect to treasury functions. 3. Establish an audit committee, this may be helpful in that it brings outside expertise. 4. Expand on the antifraud program which would identify risks and how to mitigate them. In response to Mayor Pro-Tem Davis, McBride advised that the auditing firm is overseen by various entities, including the State Board of Accounting, and even through peer review. Vasquez and Company, LLC recently received a clean opinion from the peer review, with no comments. In response to Mayor McCormick, McBride advised that the Finance Department staff was very cooperative and provided timely and complete responses. In response to Councilmember Maisano, McBride advised that the firm handles approximately 20 other municipalities and/or utilities throughout the year. In response to Councilmember Ybarra’s inquiry on the accessibility of the records, McBride confirmed that the records were accessible and well organized. The delay in the finalization of the report was due to the delay on the actuarial report. In response to Councilmember Martinez, McBride advised that the audit provides the City the ability to oversee financial and accounting reports, in that an independent third party can review and report any weaknesses and reliability. It’s important from a fiduciary stand point. Roger Martinez further explained that because the City receives Federal funding, it must conduct the Single Audit. Fox advised that normally the first year with a new auditing firm is quite trying; however, the City’s experience was the opposite. There was excellent guidance and leadership. In response to the four comments to management reported by McBride, Fox noted that under the direction of the City Administrator, all four recommendations are being addressed. The City intends to comply with all the recommendations. A Regular City Council Meeting Minutes February 4, 2014 Page 3 of 10 quarterly budget and treasurer’s report will be presented at the next City Council meeting. It was moved by Davis and seconded by Maisano to receive and file the presentation. Motion carried, 5-0. 2. Presentation by the Police Chief on the new on-line crime reporting system. Police Chief Daniel Calleros presented on the implementation of the online crime reporting system. The community can now file minor crimes from any location where there is access to the internet. The reporting system interfaces with the existing records management system. Calleros explained that no reentry of data will be necessary. The City of Vernon Police Department is the only southeast agency with this type of online crime reporting system. The system allows for the reporting of six types of crimes as follows: hit and run, identity theft, theft, lost property, vandalism, and harassing phone calls. Calleros advised that the online crime reporting system is user friendly and can be found on the Police Department’s web page on the City of Vernon website. It was moved by Martinez and seconded by Davis to receive and file the report. Motion carried, 5-0. CONSENT CALENDAR Finance Director William Fox noted the recommendation to adopt the Finance Department policies and procedures. A lot of work and coordination went into the recommendation, staff worked closely with City Administration and the City Attorney’s Office. It was moved by Davis and seconded by Ybarra to approve the matters listed on the Consent Calendar as presented. Motion carried, 5-0. Claims Against the City (to be received and filed) 1. None Minutes 2. Minutes of the Joint Special City Council and Successor Agency to the Redevelopment Agency Meeting held January 21, 2014, to be received and filed. 3. Minutes of the Special and Regular City Council Meeting held January 21, 2014, to be received and filed. Warrant Registers 4. Ratification of the following City Warrant Registers to record the following voided checks: a. City Warrant Register No. 1386 to record voided Check No. 342133 in the amount of $22.84; and b. City Warrant Register No. 1388 to record voided Check No. 342438 in the amount of $40.44; and Regular City Council Meeting Minutes February 4, 2014 Page 4 of 10 c. City Warrant Register No. 1388 to record voided Check No. 342419 in the amount of $65.75; and d. City Warrant Register No. 1392 to record voided Check No. 343063 in the amount of $320.41. 5. Ratification of Light and Power Warrant Register No. 357 to record voided Check No. 510512 in the amount of $960.16. 6. Approval of City Warrant Register No. 1393, totaling $299,435.71, which covers the period of January 14, through January 27, 2014, and consists of the following: a. Ratification of wire transfers totaling $44,128.83; and b. Ratification of the issuance of early checks totaling $127,702.81; and c. Authorization to issue pending checks totaling $127,604.07. 7. Approval of Light & Power Warrant Register No. 358, totaling $3,556,219.77, which covers the period of January 14, through January 27, 2014, and consists of the following: a. Ratification of wire transfers totaling $3,460,197.58; and b. Ratification of the issuance of early checks totaling $65,312.83; and c. Authorization to issue pending checks totaling $30,709.36. 8. Approval of Gas Warrant Register No. 146, totaling $8,045.11, which covers the period of January 14, through January 27, 2014, and consists of the following: a. Ratification of the issuance of early checks totaling $7,651.09; and b. Authorization to issue pending checks totaling $394.02. Finance Department 9. Approval of Finance Department Policies and Procedures. Recommendation: (1) Find the proposed motion to (1) ratify the City Administrator’s decision to approve the City’s “Purchasing Manual”, (2) adopt the proposed “Budget Policies and Procedures”, and (3) ratify the Finance Director’s decision to adopt the “Accounts Payable Invoice and Check Processing Procedures”; 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 a motion to (1) ratify the City Administrator’s decision to approve the City’s “Purchasing Manual”, (2) adopt the proposed “Budget Policies and Procedures”, and (3) ratify the Finance Director’s decision to adopt the “Accounts Payable Invoice and Check Processing Procedures”. This will Regular City Council Meeting Minutes February 4, 2014 Page 5 of 10 allow the City to publicly formalize the completion of these recommended actions identified as part of the Good Governance Reform Efforts outlined in the State Audit Report commissioned by the Joint Legislative Audit Committee (“JLAC”). Fire Department 10. Activity Report for the period of January 1, through January 15, 2014, to be received and filed. Health and Environmental Control Department 11. December 2013 Monthly Report and Annual 2013 Report, to be received and filed. Police Department 12. Activity Log and Statistical Summary of Arrest and Activities for the period of January 1, through January 15, 2014, to be received and filed. NEW BUSINESS Community Services and Water Department 1. Approve Contract No. CS-0403, Boyle Avenue and Fruitland Avenue Street Improvements and grant authority to advertise for bids. Recommendation: (1) Find that the proposed Capital Improvement Project at Boyle Avenue and Fruitland Avenue is categorically exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15301, Existing Facilities, part (c), existing highways and streets, because the project is merely to repair existing streets; and (2) Approve the contract and grant authority to advertise for bids for the Boyle Avenue and Fruitland Avenue Street Improvements Project, Contract No. CS-0403 based upon the City’s standard public works bidding package. Director of Community Services and Water Kevin Wilson reported on the request. He advised that the bids are anticipated to come in around $1.5 million. In response to Mayor Pro-Tem Davis’ concerns on the resulting curvature of the road after resurfacing and the potential hazards it presents with trucks hitting power poles, Wilson advised that staff will review and modify if necessary; however, he does not anticipate this type of issue with the proposed project. In response to Councilmember Maisano’s inquiry on the liability for underground utilities, Wilson advised that there is no liability. All utilities are notified of the street improvements, they are encouraged to conduct maintenance and repairs at this time. Regular City Council Meeting Minutes February 4, 2014 Page 6 of 10 It was moved by Maisano and seconded by Ybarra to approve Contract No. CS-0403, and grant authority to advertise for bids. Motion carried, 5-0. Human Resources Department 2. Adoption of the City Council Personnel Policies and Procedures, College Volunteer Internship Program Policy I-11. Recommendation: (1) Find that approval of the proposed personnel policy and procedures in this staff report 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 the new Personnel Policy and Procedures: College Volunteer Internship Program I-11, and incorporate it into the Personnel Policies and Procedures Manual; and (3) Authorize the City Administrator and the Director of Human Resources to execute and distribute the above referenced policy to all employees. Human Resources Director Teresa McAllister recommends approval of the proposed as it provides an opportunity for college students to gain on the job experience. McAllister advised that there have been several inquiries regarding the proposed; both internal and external. The proposed is compliant with the Department of Labor Code. It is a valuable and meaningful opportunity for the City and potential college interns. Independent Reform Monitor John Van de Kamp opined that the proposed is a good and positive idea. He reported on the CORO Foundation which specializes in internships in government agencies and recommended that the City approach the Foundation. ORDINANCES 1. ORDINANCE NO. 1218 - An Ordinance of the City Council of the City of Vernon adding Article XX to Chapter 2 of the Vernon Municipal Code to establish the Vernon CommUNITY Fund Grant Committee pursuant to the provisions of the City Charter of the City of Vernon and specifying the membership and duties of said Grant Committee. (second reading) Recommendation: (1) Find that approval and subsequent adoption of the proposed ordinance establishing the Vernon CommUNITY Fund Grant Committee 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 the ordinance establishing the Vernon CommUNITY Fund Grant Committee and specifying the membership and duties of said Grant Committee. Regular City Council Meeting Minutes February 4, 2014 Page 7 of 10 Legal Counsel Dana Reed advised that the item had been discussed at length at the previous two Council meetings. Reed clarified that the ordinance that is being recommended incorporates the amendment approved at the last meeting. He noted that the staff report does not accurately reflect said amendment. It was moved by Ybarra and seconded by Davis to adopt Ordinance No. 1218. A roll call vote was taken: Councilmember Martinez; yes Councilmember Ybarra; yes Councilmember Maisano; yes Mayor Pro-Tem Davis; yes Mayor McCormick; yes Motion to adopt Ordinance No. 1218 carried, 5-0. ORAL REPORTS Police Chief Daniel Calleros reported on an attempted strong arm robbery in the area of Downey Road and Leonis Boulevard that occurred on January 27, 2014. Patrol staff conducted an area search for the suspects but was unsuccessful. Investigators have developed some leads and are hopeful that they will identify the suspects. On January 29, 2014, an armed robbery occurred in the 4100 block of Bandini Boulevard. The suspect offered to drive the female victim to the City of Huntington Park to purchase a used vehicle. While on route, the suspect stopped the vehicle and demanded the victim’s money. The victim fearing for her safety complied. The suspect ordered the victim out of his vehicle and fled the scene. Investigators will be following up on leads. Calleros announced that in March, Police and Fire personnel will participate in the annual Alameda Corridor Exercise. This is an annual exercise providing a vivid depiction of a unified command working together on a simulated incident. The Vernon Police Department will be assisting with traffic control. Captain Michael Gillman reported vandalism in the 4500 block of Maywood Avenue. He advised that staff is addressing the previously reported vandalism on the traffic signal boxes around the City. Mayor McCormick reported on several abandoned vehicles on Boyle Avenue north of Randolf Street. Fire Chief Michael Wilson reported on the receipt of a new Hurst Power Tool (Jaws of Life) and purchase of a new portable Edraulic Cutters and Spreaders that were purchased using UASI grant funds. Wilson advised that the new tools facilitate the work in that they are able to cut through metals found in vehicles build today. Wilson reported on his attendance to the Independent Cities Association Seminar. He reported that the food truck inspections have been completed. Wilson reported on the EMT recertification which is conducted every two years which will include all fire personnel. The training includes CPR and basic life support skills. The night Regular City Council Meeting Minutes February 4, 2014 Page 8 of 10 commercial fire drill has been completed, and the annual multi victim incident training is ongoing. Wilson reported on an industrial injury that occurred on January 17, 2014 at a local business. Wilson emphasized the importance of lock-out tag-out procedures. On January 27, 2014, crews responded to a motorcycle down. A male patient was transported to the USC Trauma Center. Wilson noted an increase in motorcycle accidents over the last month. On January 30, 2014, crews responded to a structural fire in Huntington Park. The Los Angeles County Fire Department also responded to the fire. There were no injuries. Director of Community Services and Water Kevin Wilson provided an update on the housing project; he advised that construction plans had been review. Corrections were requested. Final plans are expected. The project is progressing; construction is anticipated to begin in March or April of this year. Wilson reported on the notice to water customers on the water rate increase. The rates are automatically adjusted at the end of the year; additionally there is a pass-through on fees from two of the water sources. Wilson advised that increases will commence on April 1, 2014, in order to provide customers with sufficient notice. Finance Director William Fox advised that the independent auditors brought up the issue of ongoing pension liability. This is a new item that will impact the City; Fox hopes to get the actuary to present on the information at an upcoming City Council meeting. Fox advised that during the next meeting, he will be presenting the quarterly budget and forecast. As recommended by the auditors, he will also be presenting on the investment report. The Finance Department has been working with the IT Department and the EDEN System consultants on the business license module, online payment access, and the parcel manager which will coordinate with all of the departments. He commended the IT Department on their outstanding work. Director of Health and Environmental Control Leonard Grossberg advised that there are no significant issues to report concerning Exide Technologies. He announced the closure of the residential portion of the Thermador site, and advised that the focus will now be on the industrial portion. The next Sustainable Development and Energy Efficiency Commission Meeting is scheduled for March 19, 2014. There are three vacant seats; recommendations to fill the seat will be addressed at the next Council meeting. Human Resources Director Teresa McAllister reported on the reimplementation of the employee newsletter, the Vernonite. General information meetings were held on January 22, 2014, for all employees. The classification and compensation study has been received and filed. The next step will be to meet with all the Departments heads and continue the process. Regular City Council Meeting Minutes February 4, 2014 Page 9 of 10 Assistant to City Administrator Alex Kung reported that the Recognized Obligation Payment Schedule for the period of July through December 2014 will be presented to the Oversight Board on August 6, 2014, and will then be brought to the Successor Agency. City Administrator Mark Whitworth reported on Project 14. He introduced Adena Tessler of Mercury Public Affairs and Chris Lehane of Fabiani & Lehane. Lehane reported on his work with the city, and commended the Council on the approval of the Vernon CommUNITY Fund Committee Ordinance. Tessler is pleased to be working with Vernon. She will be engaging the local community and communicating Vernon’s efforts. Whitworth noted that both firms are major players in Vernon’s upcoming projects; he thanked both the representatives for their time. Whitworth reported that Independent reform Monitor John Van De Kamp issued his six month report, January 2014. Copies of the report are available; it is also accessible on the City’s website. Van de Kamp will be presenting on the report at an upcoming meeting. As part of the housing project, the City reserved the rights to name the project. The City has engaged the 6th grade class at the Vernon City School. Their suggestions will be presented to the City Council for consideration. Whitworth reported on the attendance of City staff to the Huntington Park City Council meeting on February 3, 2014. The request for bids for the construction of the soccer field was approved. The project is majorly being funded by the City of Vernon. The project is expected to be completed in June. Whitworth reported on his attendance to the Independent Cities Association Seminar which was well attended. CLOSED SESSION At 10:20 a.m., it was moved by Davis and seconded by Maisano to go into closed session to discuss the item listed under closed session. Motion carried, 5-0. 1. 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 Firemen's Association, Teamsters Local 911, and International Brotherhood of Electric Workers Local 47. At 10:42 a.m. it was moved by Maisano and seconded by Davis, that the City Council exit closed session. Motion carried, 5-0. Regular City Council Meeting Minutes February 4, 2014 Page 10 of 10 Deputy City Attorney Zaynah Moussa announced that there are no reportable actions. With no further business, at 10:42 a.m., Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Ana Barcia Deputy City Clerk