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2014-03-04 City Council MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, MARCH 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 who also 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. A Proclamation of the Mayor and the City Council of the City of Vernon Declaring the Week of March 3-9, 2014, as Multiple Sclerosis Awareness Week. Sandra Orozco introduced herself as a voice for those who suffer from Multiple Sclerosis (“MS”). She is also here representing the National MS Society and is accepting the proclamation on its behalf. Orozco reported on her experience living with MS. Through her experience, she is bringing awareness and is hopeful that in the future there will be a medical cure. Until then, she will continue to fight MS and be a voice for those affected by it. She is honored to receive the proclamation and noted that this is the first Multiple Sclerosis Proclamation in Vernon. Mayor McCormick presented the proclamation to Orozco. 2. Presentation by Independent Reform Monitor John Van De Kamp on his January 31, 2014 Report on the City of Vernon. Independent Reform Monitor John Van de Kamp reported on his service with the City. He noted that he has no executive power; his recommendations are subject to the Council’s decision in conjunction with City Administration and staff. The City has shown consistent support for his recommendations with a few exceptions. As noted in his January 31, 2014, Report, the City’s most significant accomplishment in its good government reform efforts was facilitating the tax credit allocation to Meta Housing Corporation for the new housing development project which will double the City’s population by the year 2015. Ground breaking will take place on April 25, 2014. He noted that Vernon’s small population has led to fears of an orchestrated takeover of Regular City Council Meeting Minutes March 4, 2014 Page 2 of 12 government. With a new diversified population this fear will be diminished. Van de Kamp reported in great detail on his January 31, 2014, Report on the City of Vernon. Van de Kamp concluded by stating that the City remains on the road to reform with a City Administrator and staff dedicated to good government principles and a Council that is equally dedicated. However, he noted that the line-up will change; term limits for Councilmembers have been established and the executive staff will eventually retire. He encouraged the City to think in terms of succession planning. The City’s openness and oversight must continue. He noted that his term will end in 2016, but recommended that the City continue to have an independent person or persons to provide oversight and guidance, and remind everyone of why Vernon came close to disincorporation. Vernon Chamber of Commerce President Marissa Olguin applauded Van de Kamp on his presentation and applauded the City for all the things it has accomplished. The Chamber and business community stands behind the City to remain engaged and involved in the process. Olguin is excited about the new housing development, it will bring in new people who will be welcomed and invited to be part of the process. Sandra Orozco, a member of the public, echoed Van de Kamp’s remarks and applauded him and the City Administrator for all the things that have been accomplished. Orozco commented on the outsourcing of the police services to the City of Maywood, she opined that it would be beneficial to both. It was moved by Davis and seconded by Maisano to received and file the January 31, 2014 Report. Motion carried, 5-0. CONSENT CALENDAR It was moved by Davis and seconded by Maisano 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. Warrant Registers 2. Ratification of City Warrant Register No. 1393, to record voided Check no. 343214 in the amount of $17.20. 3. Approval of City Warrant Register No. 1395, totaling $1,495,801.54, which covers the period of February 11, through February 24, 2014, and consists of the following: a. Ratification of wire transfers totaling $1,208,253.51; and b. Ratification of the issuance of early checks totaling $140,710.30; and c. Authorization to issue pending checks totaling $146,837.73; and Regular City Council Meeting Minutes March 4, 2014 Page 3 of 12 d. Voided Check No. 343434 in the amount of $14.77. 4. Approval of Light & Power Warrant Register No. 360, totaling $4,199,805.49, which covers the period of February 11, through February 24, 2014, and consists of the following: a. Ratification of wire transfers totaling $4,158,352.24; and b. Ratification of the issuance of early checks totaling $34,427.23; and c. Authorization to issue pending checks totaling $7,026.02. 5. Approval of Gas Warrant Register No. 148, totaling $160,565.86, which covers the period of February 11, through February 24, 2014, and consists of the following: a. Ratification of wire transfers totaling $143,310.11; and b. Ratification of the issuance of early checks totaling $17,129.75; and c. Authorization to issue pending checks totaling $126.00. City Administration Department 6. Selection of Name for New Housing Project at 4675 52nd Drive in Vernon. Recommendation: (1) Find that the selection of a name for the new housing project to be developed by Meta Housing Corporation at 4675 52nd Drive in Vernon is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment, because establishing the name of a building has no environmental effect. (2) Select “Vernon Village Park”, as the name for the new housing project to be developed by Meta Housing Corporation at 4675 52nd Drive in Vernon. This name is recommended by the ad hoc subcommittee of the City Council selected to make a recommendation on the issue. Community Services and Water Department 7. Building Department Report for the month of January 2014, to be received and filed. Fire Department 8. Activity Report for the period of February 1, through February 15, 2014, to be received and filed. Police Department 9. Activity Log and Statistical Summary of Arrest and Activities for the period of February 1, through February 15, 2014, to be received and filed. Regular City Council Meeting Minutes March 4, 2014 Page 4 of 12 NEW BUSINESS City Attorney Department 1. Approval of Attorney Services Agreement (Transactional) Between the City of Vernon and Paul J. Early to Provide Legal Services on an as Needed Basis. Recommendation: (1) Find that the approval of the proposed Attorney Services Agreement is a purely administrative action that is not a “project” under the California Environmental Quality Act (“CEQA”), and that even if it were a “project”, the approval is exempt from CEQA under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and (2) Find that, consistent with the City Council’s authority under Vernon Municipal Code Section 2.17.12(B)(2), the best interests of the City are served by a direct award of a contract to Paul Early without a competitive selection process because the proposed rates of $95.00 per hour are extremely competitive, and because Mr. Early has substantial experience representing municipalities, and on that basis authorize the City Administrator to approve a contract with Paul J. Early in a form substantially similar to the contract provided with the staff report. The contract establishes caps spending at $24,999 in any 12 month period, and $74,997 over the life of the three year contract. The proposed contract would authorize the Risk Manager to waive insurance requirements for this particular contract. Deputy City Attorney Scott Porter advised that Early is currently not on retainer, but that staff recommends a direct award of a contract due to the proposed low hourly rate. He recommended that the Council forego the typical request for proposal process as the hourly rate is already very competitive and Early has many years of experience. The low rate is facilitated through the waiver of insurance requirements. Porter reported that Early is currently employed through the County of Riverside, and that Riverside is aware of the potential agreement; however, staff will not proceed until written authority from Riverside has been received. Porter explained that Early would provide services to Vernon during his spare free time. The Risk Manager has advised that this is a low risk proposition because all of the work produced by Early will undergo a final review in-house. In response to Mayor McCormick, Porter advised that the Risk Manager recommended Early as he has worked with him in the past. In response to Councilmember Maisano, Porter advised that Early has extensive experienced in code enforcement but that he will be doing general work for the City, such as drafting ordinances and other such matters that do not have an immediate urgency. Regular City Council Meeting Minutes March 4, 2014 Page 5 of 12 In response to Mayor McCormick, Deputy City Attorney Zaynah Moussa explained that certain items occupy much of the Department’s resources, this is a cost effective solution to manage the workload. Porter further explained the cost savings. In response to Mayor Pro-Tem Davis, Porter confirmed that Early will only be used as needed; the proposed agreement has a maximum cost of $25,000 per year for three years. Moussa noted that he will not be working on litigation or administrative matters. Porter added that examples of the work would be a first draft of an ordinance or legal research. It was moved by Ybarra and seconded by Martinez to approve the Attorney Services Agreement with Paul J. Early. Motion carried, 5-0. Community Services and Water Department 2. Resolution No. 2014-05 - A Resolution of the City Council of the City of Vernon approving and authorizing the execution of documents relating to the financing of the Meta Housing Corporation Housing Development. Recommendation: (1) Finds that the approval of the Subordination Agreement, and changes to the Ground Lease and Regulatory Agreements make no changes to the project that was analyzed in the Mitigated Negative Declaration, and therefore it can be seen with certainty that there is no possibility that the approval of the agreements will have a significant effect on the Environment. Accordingly, the approval proposed Subordination Agreement and the changes proposed to be made to the Ground Lease and Regulatory Agreements is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the CEQA Guidelines; and (2) Approve a Subordination Agreement and amendments to the Ground Lease Agreement and Regulatory Agreement by and between the City of Vernon and Meta Housing Corporation. Councilmember Ybarra announced that he has decided to recuse himself from this matter to avoid any potential conflict of interest. He explained that he has two potentially affected economic interests. He owns stock at Bank of America, a company that participates in commercial lending. Secondly, Bank of America is a source of income to him. Ybarra exited the Council Chambers. Director of Community Services and Water Kevin Wilson advised that as the housing development project moves forward, a lender for the construction and permanent loan is necessary. Amendments to the ground lease and regulatory agreement, and approval of a subordination agreement are requested in order to facilitate this. Wilson noted that it is not unusual to have these types of amendments and agreement for this type of project. Regular City Council Meeting Minutes March 4, 2014 Page 6 of 12 Legal Counsel John Goetz advised that Meta Housing Corporation has been able to attract lenders and investors, more specifically Bank of America, for the construction loan and California Community Reinvestment Corporation for the permanent loan. This is an indication of the project’s strength and that it is moving well. The project is required to close the loans by the end of the month. The lender and their attorneys have scrutinized and provided commends on documents previously approved. Goetz explained some of the amendments to the ground and regulatory agreements. He further explained the subordination agreement. The recommendation is to approve the proposed. In response to Mayor McCormick concerns over how the City’s money will be protected, Goetz advised that the recommendation is approving strong lenders; additionally, the subrogation agreement provides that if the loan is in default, the City can cure the default if it desires. Wilson noted that the recommendation is exempt from the California Environmental Quality Act; Council previously approved a declaration of findings for the project. Staff will be filing a notice of exemption upon approval. It was moved by Maisano and seconded by Davis to approve Resolution No. 2014-05. Motion carried, 5-0. Councilmember Ybarra reentered the meeting. 3. Resolution No. 2014-06 - A Resolution of the City Council of the City of Vernon repealing Resolution No. 7002 and authorizing the Director of Community Services and Water to sign, certify, and electronically submit permit registration documents, notices of termination, and any other documents, reports, or information required by the Municipal National Pollutant Discharge Elimination System (NPDES) permit and any NPDES permit related document which pertains to the City of Vernon and on the City of Vernon’s behalf, and authorizing the Director of Light & Power to sign, certify, and electronically submit permit registration documents, notices of termination, and any other documents, reports, or information required by the general construction activities stormwater NPDES permit as it relates to the Light & Power Department projects which pertain to the City of Vernon and on the City of Vernon’s behalf. Recommendation: (1) Find that this action 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 pursuant to Guidelines Section 15308, because the proposed action is to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment; and (2) Authorize the Director of Community Services and Water to sign, certify, and electronically submit permit registration documents, notices of termination, and any other documents, reports, or information required Regular City Council Meeting Minutes March 4, 2014 Page 7 of 12 by the Municipal National Pollutant Discharge Elimination System (“NPDES”) Permit and any NPDES Permit related document which pertains to the City of Vernon and on the City of Vernon’s behalf; and (3) Authorize the Director of Light and Power to sign, certify, and electronically submit permit registration documents, notices of termination, and any other documents, reports, or information required by the General Construction Activities Stormwater NPDES Permit as it relates to Light and Power Department projects which pertain to the City of Vernon and on the City of Vernon’s behalf. Director of Community Services and Water Kevin Wilson advised that as part of the Municipal Separate Storm Sewer System (“MS4”) Permit, certain documents and reports are required. The proposed authorizes the Director of Community Services and Water to submit said documents on the City’s behalf. If the project is related to the Light & Power Department its Director is authorized to file. In response to Mayor McCormick’s inquiry, Wilson advised that he currently has authority but that the authorizing resolution is specific to the previous permit. The proposed resolution broadens the authorization. It was moved by Ybarra and seconded by Martinez to approve Resolution No. 2014-06. Motion carried, 5-0. Light & Power Department 4. Approval of License Renewal Agreement between the City of Vernon and Southern California Edison. Recommendation: (1) Find that the approval requested is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15301(b), because the proposed action involves the leasing of an existing public utility services facility and involves negligible or no expansion of the existing use; and (2) Authorize the City Administrator to enter into a license renewal agreement between the City of Vernon and Southern California Edison (“SCE”) in substantially the same form as submitted, for a five- year period in an amount not to exceed $1,740.00. Director of Light and Power Carlos Fandino reported that since 1989, the City has owned and operated remote units located in a shed at Southern California Edison’s Laguna Bell Substation. He advised that the existing license agreement will expire on March 31, 2014. Staff is seeking approval to renew the license agreement for an additional five years. It was moved by Maisano and seconded by Davis to approve the License Agreement with Southern California Edison. Motion carried, 5-0. Regular City Council Meeting Minutes March 4, 2014 Page 8 of 12 5. Approving the Issuance of a Notice Inviting Bids for Manufacturers and Distributors of Electric System Medium Voltage 15KV Underground Cable. Recommendation: (1) Find that approval of the proposed issuance of a Notice Inviting Bid is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment, whereas the cable referenced herewith merely replaces older cable and improves electrical system efficiency and reliability in Vernon; and (2) Approve the issuance of a Notice Inviting Bids entitled “Furnish and Deliver Medium Power Voltage Underground Cable Single Conductor Tree-Retardant Cross-Linked-Polyethylene 220 MIL, 133% Insulated, Shielded, Concentric Neutral, Medium Voltage Power Aluminum Cables Rated 7 Through 17 KV” in essentially the form of bid attached to the Staff Report. Staff estimates that the total purchase price will be less than $320,000, but the exact price will, of course, depend on bids actually received. Director of Light and Power Carlos Fandino explained the Department’s need to replace equipment as necessary. He advised that it has depleted its inventory and is requesting authorization to go out to bid. In response to Mayor Pro-Tem Davis, Fandino confirmed that the recommendation is to replenish the inventory. It was moved by Davis and seconded by Martinez to approve the issuance of a notice inviting bids for manufacturers and distributors of electric system medium voltage 15KV underground cable. Motion carried, 5-0. ORAL REPORTS Police Chief Daniel Calleros reported on a strong arm robbery that occurred on February 20, 2014, where the victim was physically assaulted and later sought medical treatment for his injuries. On February 25, 2014, officers stopped a vehicle after receiving a distress call. A search of the vehicle resulted in the discovery of several bags containing a large amount of marijuana, including a weight scale and a small amount of methamphetamine. Subsequently, the female driver was arrested for transportation and possession of marijuana for sales. Calleros commented on Independent Reform Monitor John Van de Kamp’s recommendation to provide public safety services to the City of Maywood. He reported that he and the City Administrator have been actively reaching out to Maywood for over a year. A Special Maywood City Council Meeting was held; it is his understanding that a request for proposals (“RFP”) for public safety services will be issued. Calleros advised that he has requested the RFP, and is waiting on a response back from Maywood. Regular City Council Meeting Minutes March 4, 2014 Page 9 of 12 Calleros announced the annual Police and Firefighter of the year function at Stevens Steak House in Commerce on March 20, 2014, hosted by the Rio Hondo – Vernon Rotary. He invited the Council to attend. Captain Michael Gillman reported vandalism on February 20, 2014, in the 2100 block of 25th Street. The incident resulted in two arrests. The Council had no vandalism to report. Fire Chief Andrew Michael Wilson announced the CERT Classes on March 4, 11, and 18, 2014 at Fire Station No. 1. He reported that the class is full and that additional dates will be scheduled for June. Wilson reported on the implementation of a new program that will utilize tablets to complete EMS forms electronically. He noted that the system is more efficient and will allow a quicker turn- around for transportation fees. He also noted the future implementation of Telestaff which is a manpower record keeping system that merges with the City’s EDEN system and will reduce payroll processing time. Wilson announced that Firefighter of the year is Andrew Smith; he will be honored at the March 20, 2014 function. He reported on the annual ladder and aerial ladder testing to be conducted. Staff will be undergoing high and low angle rope rescue training this month. Crews will be taking advantage of the demolition at Pacific Boulevard, by conducting urban search and rescue training at said location. Wilson reported on a Haz Mat investigation at DK Environmental. The company’s vapor recovery system was not functioning correctly. The Health and Environmental Control Department issued a stop work order until the system could be repaired. Wilson also reported on the response to a Haz Mat spill in the City of Compton, a roof collapse at 3121 E. 26th Street, and a structural fire at 2524 E. 52nd Street. Director of Community Services and Water Kevin Wilson further reported on the response to the roof collapse at 3121 E. 26th Street. In response to Mayor McCormick’s inquiry regarding the I-710 and Atlantic Boulevard construction project, Wilson reported on the project status, advising that it will be four to five months before the bridge is functional. Director of Light and Power Carlos Fandino reported on a power outage on February 22, 2014 and on February 27, 2014, due to inclement weather. On February 28, 2014, a power outage occurred due to a damaged overhead jumper which was subsequently replaced. Fandino advised that Light and Power personnel also responded to the roof collapse at 3121 E. 26th Street. Fandino introduced new Operations Manager Robert Briggs. Briggs reported on his experience. He formerly worked for the City of Anaheim. Briggs commented on Vernon’s staff, stating that they are as good as others around. The Council welcomed Briggs. Fandino announced the Special Advisory Committee for Electric Rates Meeting on April 2, 2014, at 8:00 a.m. Regular City Council Meeting Minutes March 4, 2014 Page 10 of 12 Finance Director William Fox advised that in an effort to further automate the Finance Department a bid and quote module in EDEN is being reviewed. The final transfer of the business licenses to the EDEN system has been completed. The cashiering function is also now on the EDEN system. Credit cards will be accepted on the internet and in person. Fox announced that Capital Accounting Partners LLC will be presenting the user fee study at an upcoming meeting. The purpose of the presentation will be to educate and incorporate recommendations in the upcoming budget process. Fox reported that the budget packet has been distributed to the Departments. Fox noted that the Finance will be managing the labor component. Additionally, a five-year plan is being developed. Staff is reviewing the budget deficit and bond requirements. Director of Health and Environmental Control Leonard Grossberg announced his absence at the next Council meeting. Deputy Director David LeDuff will be taking his place. Grossberg advised that staff continues to monitor progress at Exide Technologies. He will be providing an update on the Thermador property during the Special City Council Meeting later this day. Human Resources Director Teresa McAllister reported on the employee’s professional development and training for the upcoming months including team building and communication training, customer service training, and an injury and illness prevention program overview. On March 18, 2014, the classification component of the recent study will be presented to the City Council for consideration. Assistant to City Administrator/Successor Agency Staff Alex Kung announced the Oversight Board to the Successor Agency Meeting on March 6, 2014, at 4:00 p.m. Kung reported on the California Competes Tax Credit; the application process start between March and April. Kung opined that this is a good opportunity for local businesses to apply and potentially receive tax credits. Staff will be determining whether California Consultants can assist businesses in completing the application as it is competitive. Kung explained the tax credit and its benefits. Senior Strategic Policy Advisor and Director of Communications Advisor Fred MacFarlane announced the ground breaking of the Meta Housing Corporation development project on April 25, 2014, at 11:00 a.m. and the ground breaking at Salt Lake Park for the artificial turf, soccer field on April 26, 2014, in Huntington Park. MacFarlane advised that the Vernon CommUNITY Fund is being announced at this event. He welcomed Council and staff to attend. City Administrator Mark Whitworth announced the Vernon Housing Commission Meeting on March 12, 2014, at 6:00 p.m. He advised that staff is currently evaluating the Solari Enterprises, Inc. contract. Regular City Council Meeting Minutes March 4, 2014 Page 11 of 12 Staff is working on the creation of a Business and Industry Commission to replace the Ad Hoc Advisory Committee for Business Development. The item will be presented at an upcoming meeting. He reminded all that the Statement of Economic Interest also known as Form 700 is due by April 1, 2014. He thanked Independent Reform Monitor John Van de Kamp for his presentation on his six month report. Mayor Pro-Tem Davis noted that Van de Kamp discussed all the departments. Although much has been accomplished, there is still a lot of work that needs to be done. Mayor McCormick thanked the Vernon City School for their participation in the selection of the housing development name. He directed staff to send a thank you letter. NOTIFICATION BEFORE CLOSED SESSION 1. In advance of closed session, public identification of real property negotiator, real property which the negotiations may concern, and the person(s) with whom its negotiators may negotiate. Deputy City Attorney Scott Porter announced the property as 5119, 5201 and 5241 District Boulevard and 4601 East 52nd Drive, and the negotiating parties as Alex Kung and Pacific Industrial, Inc. He inquired whether there was anyone from the audience that wished to comment on this matter. There was no public comment. CLOSED SESSION At 10:56 a.m., it was moved by Maisano and seconded by Davis to go into closed session to discuss the item listed under closed session. Motion carried, 5-0. 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: 5119, 5201 and 5241 District Boulevard and 4601 East 52nd Drive Agency negotiator: Alex Kung Negotiating parties: Pacific Industrial, Inc. Under negotiation: Price and terms of payment At 11:06 a.m., it was moved by Maisano and seconded by Davis, that the City Council exit closed session. Motion carried, 5-0. Deputy City Attorney Scott Porter announced that there is no reportable action. Regular City Council Meeting Minutes March 4, 2014 Page 12 of 12 With no further business, at 11:06 a.m., Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Ana Barcia Deputy City Clerk