2014-05-06 City Council Agenda Packet (Special and Regular)California Public Records Act ("PRA"): In compliance with the PRA, the documents
pertaining to agenda items, including attachments, which are presented to the City
Council in open session are available for public inspection. They may be inspected
during regular business hours in the City Clerk's Office at Vernon City Hall, 4305 Santa
Fe Avenue; Vernon, California 90058, and on the City’s website at www.cityofvernon.org.
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AGENDA
CITY OF VERNON
TUESDAY, MAY 6, 2014,
COUNCIL CHAMBER
4305 SANTA FE AVENUE
VERNON, CALIFORNIA
SPECIAL MEETING OF THE CITY COUNCIL
(BUDGET STUDY SESSION)
7:30 A.M.
REGULAR CITY COUNCIL PUBLIC MEETING
9:00 A.M. OR AS SOON THEREAFTER AS THE
SPECIAL CITY COUNCIL MEETING IS ADJOURNED
W. Michael McCormick, Mayor
William J. Davis, Mayor Pro-Tem
Richard J. Maisano, Council Member
Michael Ybarra, Council Member
Luz Martinez, Council Member
CALL TO ORDER SPECIAL MEETING 7:30 A.M.
PUBLIC COMMENT (Special Meeting): At this time the public is encouraged
to address the City Council on any matter on the Special Meeting portion
of the Agenda (Budget Study Session), only.
PRESENTATIONS
1. Quarterly budget report by the Finance Director for the third
quarter of fiscal year 2013-2014, including updates on long-term
debt, investments, and long range planning.
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May 6, 2014
Page 2 of 12
BUDGET STUDY SESSION
1. Review of proposed budgets for fiscal year 2014-2015 for the
following departments:
Finance Department
City Attorney Department
City Clerk Department
Information Technology Department
CALL TO ORDER REGULAR MEETING 9:00 A.M. & FLAG SALUTE
CHANGES TO THE AGENDA
PUBLIC COMMENT - At this time the public is encouraged to address the City
Council on any matter that is within the subject matter jurisdiction of
the City Council. The public will also be given a chance to comment on
matters which are on the posted agenda during City Council deliberation on
those specific matters.
PRESENTATIONS
1. A Proclamation of the City Council of the City of Vernon commending
W. Michael McCormick in recognition of his 40 years of service to
the City of Vernon.
2. The Police Department will conduct a Swearing-In ceremony for newly
promoted Patrol Sergeant Ignacio Estrada.
PUBLIC HEARINGS
1. Public Hearing on the request from Merco Group, 2529 Santa Fe
Avenue, LLC, to amend its existing conditional use permit to allow
all businesses on the lot to be open Sunday and extend permissible
business hours from 4:00 a.m. to 12:00 a.m.
A Resolution of the City Council of the City of Vernon granting an
amendment to a condition of approval to the conditional use permit
for Merco Group-2529 Santa Fe Avenue, LLC for the operation of a
retail/commercial facility located at 2529 Santa Fe Avenue in the
City of Vernon.
Special and Regular City Council Meeting Agenda
May 6, 2014
Page 3 of 12
Recommendation:
(1) Finds that approval of the proposed Conditional Use Permit is
categorically exempt under the California Environmental Quality
Act (“CEQA”) in accordance with Title 14, Chapter 3, Class 1,
Section 15301 because no physical changes other than minor
interior tenant improvements will occur as a result of this
approval, and no significant impact to the environment will
occur as a result of the issuance of the CUP; and
(2) Amends the conditional use permit for a retail center at 2529
Santa Fe Avenue granted under Resolution No. 2013-150 to allow
the days and hours for the operations to be extended, and to add
or revise conditions of approval.
CONSENT CALENDAR - All matters listed on the Consent Calendar are to be
approved with one motion. Items may be removed from the Consent Calendar
by Council. Those items removed will be considered immediately after the
Consent Calendar.
Claims Against the City (to be received and filed)
1. Claim for Damages received on April 16, 2014 from Maria Sedona, in
the amount of $160.00.
2. Claim for Damages received on April 16, 2014 from the Law Offices of
John Jensen on behalf of Bruce Malkenhorst Sr. in an amount to be
determined.
3. Claim for Damages received on April 22, 2014 from Casey Sheppard, in
the amount of approximately $300.00.
4. Claim for Damages received on April 29, 2014 from Brian Quoc Yang,
in the amount in excess of $5,000,000.
5. Claim for Damages received on April 29, 2014 from Cui Hua Tan, in
the amount in excess of $5,000,000.
6. Claim for Damages received on April 29, 2014 from Suo Jie Feng, in
the amount in excess of $5,000,000.
7. Claim for Damages received on April 29, 2014 from Young Star Toys &
Gifts, Inc., in the amount in excess of $5,000,000.
Minutes
8. Minutes of the Regular City Council Meeting held March 18, 2014, to
be received and filed.
Special and Regular City Council Meeting Agenda
May 6, 2014
Page 4 of 12
9. Minutes of the Regular City Council Meeting held April 1, 2014, to
be received and filed.
Warrant Registers
10. Ratification of the following Light and Power Warrant Registers to
record the following voided checks:
a. Light and Power Warrant Register No. 353 to record voided Check
No. 510393 in the amount of $1.00.
b. Light and Power Warrant Register No. 353 to record voided Check
No. 510376 in the amount of $114.14.
c. Light and Power Warrant Register No. 360 to record voided Check
No. 510589 in the amount of $45.58.
11. Approval of City Warrant Register No. 1399, totaling $1,437,037.51,
which covers the period of April 8, through April 28, 2014, and
consists of the following:
a. Ratification of wire transfers totaling $756,727.42; and
b. Ratification of the issuance of early checks totaling
$321,491.10; and
c. Authorization to issue pending checks totaling $358,818.99.
12. Approval of Light & Power Warrant Register No. 364, totaling
$6,287,063.36, which covers the period of April 8, through April 28,
2014, and consists of the following:
a. Ratification of wire transfers totaling $6,009,626.56; and
b. Ratification of the issuance of early checks totaling
$75,687.23; and
c. Authorization to issue pending checks totaling $201,749.57.
13. Approval of Gas Warrant Register No. 152, totaling $2,923,169.05,
which covers the period of April 8, through April 28, 2014, and
consists of the following:
a. Ratification of wire transfers totaling $2,835,176.80; and
b. Ratification of the issuance of early checks totaling
$85,001.89; and
c. Authorization to issue pending checks totaling $2,990.36.
/ / /
/ / /
Special and Regular City Council Meeting Agenda
May 6, 2014
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City Administration Department
14. Correction to Section 3 of Resolution Nos. 2014-12 and 2014-14
regarding the Compensation, Costs and Benefits of its Employees
(“Citywide Personnel and Salary Resolution”).
Recommendation:
(1) Reaffirm the City Council’s intent to amend Exhibit A of the
Citywide Personnel and Salary Resolution effective April 20,
2014.
15. Ratification of the following Proclamation that was presented by the
Mayor to BCBGMAXAZRIA on April 30, 2014, at the company’s 25th
anniversary celebration:
A Proclamation of the Mayor and the City Council of the City of
Vernon declaring April 30, 2014, as BCBGMAXAZRIA Day.
Community Services and Water Department
16. Acceptance of Work for Contract No. CS-0192 - Citywide Pedestrian
Countdown Head Replacement.
Recommendation:
(1) Affirm that accepting the work of PTM General Engineering
Services, Inc. for the Citywide Pedestrian Countdown Head
Replacement Project, Contract No. CS-0192, is exempt under the
California Environmental Quality Act (“CEQA”) in accordance with
Title 14, Chapter 3, Class 1, Section 15301, minor alterations
of existing public facilities involving negligible or no
expansion of use beyond that existing at the time of the lead
agency’s determination; and
(2) Accept the work by PTM General Engineering Services, Inc., as
part of the Citywide Pedestrian Countdown Head Replacement
Project, Contract No. CS-0192.
Fire Department
17. Activity Report for the period of April 1, through April 15, 2014,
to be received and filed.
Light & Power Department
18. Rejection of Competitive Bids Received for Medium Voltage 15 KV
Rated Underground Cable for the Light & Power Department (Bid
Specification #CA1-2014), and Authorization of a Rebid.
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May 6, 2014
Page 6 of 12
Recommendation:
(1) Find that the requested 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) Reject the bids received for the April 14, 2014 Invitations to
Bid for medium voltage cable as more fully described in the
Staff Report and authorize a rebidding on essentially the same
terms and conditions as the original bid, with fine tuning of
the bid documentation.
19. Award of Bid and Purchase Contract to Applied Metering Technologies,
Inc. for the Procurement and Installation of New Remote Intelligent
Gateway (RIG) System for the Gas & Electric Department (Bid
Specification LP-0207).
Recommendation:
(1) Find that awarding the 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,
because the installation of the Remote Intelligent Gateway (RIG)
system merely replaces the existing system and improves
efficiency and reliability of the provision of electricity in
Vernon; and
(2) Determine that Applied Metering Technologies, Inc., was the
lowest responsive and responsible bidder for bid specification
#LP-0207, to furnish, install, commission and certify a new
Remote Intelligent Gateway (RIG) system. Authorize the
Purchasing Department to issue a purchase order contract to
Applied Metering Technologies, Inc. in a grand total amount not
to exceed $67,600.
Police Department
20. Activity Log and Statistical Summary of Arrest and Activities for
the period of April 1, through April 15, 2014, to be received and
filed.
NEW BUSINESS
Light and Power Department
1. Amended and Restated Biomethane Transaction Confirmation Numbers 1
and 2 with Element Markets Renewable Energy, LLC.
Special and Regular City Council Meeting Agenda
May 6, 2014
Page 7 of 12
Recommendation:
(1) Find that the approval requested is exempt under the California
Environmental Quality Act (“CEQA”) in accordance with CEQA
Guidelines Section 15301(b), the general rule that CEQA only
applies to projects that may have an effect on the environment;
and
(2) Authorize the Director of Gas and Electric to approve amended
and restated Transaction Confirmation Numbers 1 & 2 between
Element Markets Renewable Energy, LLC (“Element Markets”), in
substantially the same form as attached to the staff report, for
the purpose of selling and purchasing biomethane fuel to or from
Element Markets, on a firm basis, in compliance with the
Renewable Resources Procurement Plan and Enforcement Program in
force at the City of Vernon (“City”). The amended terms include
a renegotiated contract quantity, replacement product price
adjustment, quantity of daily delivery of biomethane fuel,
dedicated percentage of biomethane available, and credit support
obligation, each of which are detailed within the staff report.
It is further recommended that the City Council find that
pursuant to Vernon Municipal Code § 2.17.12(A)(6), competitive
bidding is not required because these are contracts for gas
and/or electrical power for the city’s power utility, and that
it would be commercially unreasonable to procure the gas or
electricity through standard bidding or request for proposal
procedures, given that the savings accrue due to amendments to
existing contracts.
Community Services and Water Department
2. Approve a Notice Inviting Bids to Supply and Deliver Liquid Sodium
Hypochlorite (12.5% Concentration)
Recommendation:
(1) Find that approval of the Notice Inviting Bids To Supply and
Deliver Liquid Sodium Hypochlorite 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 Notice Inviting Bids To Supply and Deliver Liquid
Sodium Hypochlorite.
3. Approve a Notice Inviting Bids to Supply and Deliver one New HAMM
HDC VV Double Drum Asphalt Roller and one New Zieman Trailer 1150-E
Tilt Type.
Special and Regular City Council Meeting Agenda
May 6, 2014
Page 8 of 12
Recommendation:
(1) Find that approval of the Notice Inviting Bids To Supply and
Deliver One New HAMM HDC VV Double Drum Asphalt Roller and One
New Zieman Trailer 1150-E Tilt Typeis 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 Notice Inviting Bids To Supply and Deliver One New
HAMM HDC VV Double Drum Asphalt Roller and One New Zieman
Trailer 1150-E Tilt Type.
4. Approve extension of the Traffic Signal Maintenance Contract with
Aegis ITS, Inc. for Fiscal Year 2014-2015.
Recommendation:
(1) Find that the approval of the Traffic Signal Maintenance
Agreement extension is exempt under the California Environmental
Quality Act (“CEQA”) in accordance with Section 15301, Existing
Facilities, Class 1, maintenance, because this project only
consists of maintenance and repair of the City’s traffic
signals; and
(2) Approve Change Order No. 2, the extension of the Services
Agreement with Aegis ITS, Inc., for Citywide Traffic Signal
Maintenance for a one year period commencing May 1, 2014 to
April 30, 2015. The original contract with Aegis ITS was
awarded by a competitive process, and this extension is
consistent with the scope of that competitive process. Staff
further recommends the City Council authorize staff to make
payments not to exceed $110,000 during this, the final renewal
period from May 1, 2014 through April 30, 2015. Of that
$110,000 amount, $29,488.92 would be earmarked for routine
maintenance costs of $2,457.41 per month, with the residual
$80,511.08 to be available for “on-call” emergency repairs.
Health and Environmental Control Department
5. A Resolution of the City Council of the City of Vernon approving and
authorizing the execution of an application for an Enforcement
Assistance Grant from the California Department of Resources
Recycling and Recovery (CalRecycle).
Recommendation:
(1) Find that the proposed action is exempt under the California
Environmental Quality Act (“CEQA”) in accordance with (i) CEQA
Guidelines section 15061(b)(3), the general rule that CEQA only
applies to projects that may have an effect on the environment
Special and Regular City Council Meeting Agenda
May 6, 2014
Page 9 of 12
and (ii) CEQA Guidelines section 15308 because the actions to be
funded by the grant are to protect the environment; and
(2) Adopt the Resolution approving and authorizing the execution of
an application for an Enforcement Assistance Grant from the
California Department of Recycling and Recovery (CalRecycle) for
fiscal year 2014-2015, and authorize the Director of Health &
Environmental Control to apply for, receive and expend said
grant funds.
Light and Power Department
6. Approve the Base Contract with the Gas Acquisition Group of Southern
California Gas Company for Sale and Purchase of Natural Gas (the
“NAESB Contract”).
Recommendation:
(1) Find that the approval requested in this staff report is exempt
under the California Environmental Quality Act (“CEQA”) in
accordance with CEQA Guidelines Section 15301(b), the general
rule that CEQA only applies to projects that may have an effect
on the environment; and
(2) Authorize the Director of Light & Power to execute the North
American Energy Standards Board (“NAESB”) Contract by and
between the City of Vernon (“City”) and the Gas Acquisition
Group of Southern California Gas Company (“So Cal Gas”), in
substantially the same form as attached to the staff report, for
the purpose of buying and selling natural gas to or from So Cal
Gas, in compliance with the general terms established in the
agreement. It is further recommended that the City Council find
that, pursuant to Vernon Municipal Code § 2.17.12(A)(6),
competitive bidding is not required because these are contracts
for gas and/or electrical power for the city’s power utility,
and that it would be commercially unreasonable to procure the
gas or electricity through standard bidding or request for
proposal procedures.
7. Amendment No. 1 to Existing Contract with Lewis, Brisbois, Bisgaard,
& Smith, LLP to provide Specialty Legal Services.
Recommendation:
(1) Find that the approval requested is exempt under the California
Environmental Quality Act (“CEQA”) in accordance with CEQA
Guidelines Section 15301(b), the general rule that CEQA only
applies to projects that may have an effect on the environment;
and
(2) Authorize the City Administrator to approve an amendment to the
existing contract between Lewis, Brisbois, Bisgaard, & Smith,
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May 6, 2014
Page 10 of 12
LLP (“LBBS”) and the City to add $75,000 to the total “not-to-
exceed” amount, revising the current value of the contract to a
total of $150,000. It is recommended that, pursuant to sections
§ 2.17.12(B)(2) of the Municipal Code, the City Council find it
“commercially unreasonable” to rebid the contract and that the
“best interests of the city are served by a direct award of the
contract without a competitive selection process” for the
reasons set forth within the staff report.
8. Approve the First Amendment to the Second Amended & Restated Metered
Subsystem Agreement (MSSA-AR2-A1).
Recommendation:
(1) Find that the approval of the First Amendment to the Second
Amended & Restated Metered Subsystem Agreement (MSSA-AR2-A1)
between the City of Vernon and California Independent System
Operator (“CAISO”) is exempt under the California Environmental
Quality Act (“CEQA”) is 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) Authorize the City Administrator to execute the First Amendment
to the Second Amended & Restated Metered Subsystem Agreement
(MSSA-AR2-A1) which will align the agreement with the
implementation of FERC Order 764 by the CAISO.
ORDINANCES
1. An Ordinance of the City Council of the City of Vernon amending
Article IV of Chapter 2 of the Vernon Municipal Code and repealing
all ordinances or parts of ordinances in conflict therewith. (first
reading)
Recommendation:
(1) Find that (a) approval of the ordinance is not a “project” under
the California Environmental Quality Act (“CEQA”), because CEQA
Guidelines Section 15378(b) excludes “continuing administrative
or maintenance activities, such as purchases for supplies . . .
and general policy and procedure making” from the definition of
CEQA; and (b) even if it were a project, it would be exempt in
accordance with CEQA Guidelines Section 15061(b), the general
rule that CEQA only applies to projects that may have an effect
on the environment; and
(2) Approve the first reading of the proposed Ordinance to amend
Article IV of Chapter 2 of the Vernon Municipal Code, entitled,
“Competitive Bidding and Purchasing Ordinance”, to thereby
increase efficiencies and public accountability. It is further
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May 6, 2014
Page 11 of 12
recommended that the City Council be reminded that Vernon’s
Independent Reform Monitor, Mr. Van De Kamp, recommended that
“the City review compliance with the Competitive Bidding and
Purchasing Ordinance no later than June 30, 2014 to determine
its effectiveness and whether any changes need to be made.”
ORAL REPORTS
1. City Administrator Reports – brief reports on activities and other
brief announcements by the City Administrator and Department Heads.
2. City Council Reports – brief report on activities, announcements, or
directives to staff.
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(d)(1)
Name of Case: Steve Wiles vs. City of Vernon Workers Compensation
Appeals Board Case No. 11003910
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (7)
Government Code Section 54956.9(d)(1)
Bruce Malkenhorst, Sr. v. California Public Employees’ Retirement
System, Board of Administration of California Public Employees’
Retirement System, et al.
California Court of Appeal Case No. G047959
Bruce Malkenhorst, Sr. v. City of Vernon, et al.
Los Angeles Superior Court Case No. BC516321
In the Matter of the Calculation of Final Compensation of Bruce
Malkenhorst, Sr.
Office of Administrative Hearings Case No. 2013080917
CalPERS Case No. 2012-0671
Bruce Malkenhorst, Sr. v. State of California, et al.
United States District Court Case No. SACV14-00269
Jurupa Avenue Limited Partnership v. City of Vernon, et al.
Los Angeles Superior Court Case No. BC516913
Special and Regular City Council Meeting Agenda
May 6, 2014
Page 12 of 12
Ortiz v. Los Angeles County Metropolitan Transportation Authority,
et al.
Los Angeles County Superior Court Case No. BC525587
AFA Investment Inc., et al. vs. City of Vernon Utilities
U.S. Bankruptcy Court for the District of Delaware, Case No. 14-
50130
ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of
California, that the foregoing agenda was posted on the bulletin board at
the main entrance of the City of Vernon City Hall, located at 4305 Santa
Fe Avenue, Vernon, California, and on the City’s website, not less than 72
hours prior to the meeting set forth on this agenda. Dated this 1st day of
May 2014.
By: ________________________________
Ana Barcia
Deputy City Clerk