2014-05-06 City Council Minutes (Special, Regular)MINUTES OF THE SPECIAL AND REGULAR CITY COUNCIL
MEETING OF THE CITY OF VERNON HELD TUESDAY, MAY 6,
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 Special meeting of the City Council was called to order at
7:35 a.m. by Mayor McCormick.
PUBLIC COMMENT
Mayor McCormick announced that this was the time allotted for
public comment on the Special meeting portion of the Agenda, the
Budget Study Session only, and inquired whether anyone in the
audience wished to address the City Council. No one responded.
PRESENTATION
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.
Finance Director William Fox presented on the above referenced
and additionally provided the schedule for the budget study
sessions for the various departments.
In response to Councilmember Ybarra’s inquiry on the unspent
funds, Fox explained that excess funds are not carried over into
the next fiscal year. Rather, each year is considered
independently. This allows Departments to be accountable on a
year-by-year basis. The excess funds are transferred to a
reserve account and are used, for example, as part of the rate
stabilization fund for electrical rates.
In response to Councilmember Ybarra’s inquiry on whether excess
funds are used as a contingency in case of a natural disaster or
emergency, Fox explained that the City relies on other sources
for such instances. Staff recently reviewed the City’s
insurance coverage levels, and is considering whether to obtain
earthquake insurance. The City can also participate in the
Federal Emergency Management Agency (FEMA) program, and receive
full recovery of losses if it is well documented.
In response to Independent Reform Monitor John Van de Kamp,
Economic Development Manager Alex Kung advised that the pending
sale of the property located at 5119, 5201, 5241 District
Boulevard and 4601 East 52nd Drive is still pending. Although
the sale is expected to close before July 1, 2014, if it does
not, it will be carried over to the next fiscal year.
In response to Van de Kamp’s inquiry, Fox confirmed that the
portion of the funded and unfunded retirement liability can
fluctuate depending on the market. Figures are provided by PERS
annually. Fox reported that PERS is reviewing their formulas to
help address the unfunded retirement costs.
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May 6, 2014
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In further response to Van de Kamp’s inquiries, Fox advised that
certain capital projects have been delayed but that funds have
been budgeted for the next fiscal year. Director of Public
Works, Water and Development Services Kevin Wilson further
reported on the Boyle and Fruitland Avenue capital improvement
project.
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
City Administrator Mark Whitworth advised that he had instructed
the Finance Director to present proposed budgets incorporating
salaries at the 75th percentile based on the classification and
compensation study. He noted that negotiations for the various
bargaining units are still ongoing; the figures can and will
fluctuate.
City staff conducted the public budget study session and review
of the proposed budgets for the above referenced Departments.
In response to Independent Reform Monitor John Van de Kamp,
Whitworth advised that the benefits component of the budget has
increased for most departments because it captures the PARS
early retirement, incentive expense.
In response to Van de Kamp’s inquiry on whether there has been a
study on the cost savings in using information technology
systems for public records act requests, IT Manager Andrei
Yermakov advised that systems allows personnel to be more
efficient and respond timely. As the City transitions to more
online services, the foot traffic at City Hall will be reduced.
A study on the exact numbers has not been performed, but after
experiencing a significant reduction in the work force,
departments are becoming more reliant on technology rather than
on staffing.
Whitworth opined that the Finance Director did a great job in
creating a format for the budget presentation. The increase in
the proposed budget expenses is a result of the drastic
reductions taken during the previous years and need to address
the gaps in the delivery model. He thanked all the Department
Heads for their work.
At 8:56 a.m., the Special Meeting of the City Council was
adjourned.
The Regular meeting of the City Council was called to order at
9:05 a.m. by Mayor McCormick; the Vernon Police Department Honor
Guard led the flag salute.
CHANGES TO THE AGENDA
Mayor McCormick announced that there are no changes to the
agenda.
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May 6, 2014
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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 City Council of the City of Vernon
commending W. Michael McCormick in recognition of his 40
years of service to the City of Vernon.
Director of Human Resources Teresa McAllister read the
proclamation, congratulating Mayor McCormick on his 40 years of
committed service to the City of Vernon.
Mayor Pro-tem Davis presented the proclamation to McCormick
noting McCormick’s perfect attendance to City Council meetings
and his efforts in Sacramento during the fight against AB46.
Mayor McCormick stated that it has been a wonderful 40 years and
thanked the staff and Department Heads for an enjoyable career.
Mayor Pro-tem Davis additionally presented McCormick with the
service pin.
2. The Police Department will conduct a Swearing-In ceremony
for newly promoted Patrol Sergeant Ignacio Estrada.
Police Chief Daniel Calleros reported on Estrada’s years of
service and on the various recognition and awards Estrada had
received throughout his career.
The ceremonial swearing-in was conducted by Calleros who also
administered the oath of office.
At 9:20 a.m., the Council declared a short recess. At 9:33 a.m.
the Council reconvened.
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.
At 9:34 a.m., Mayor McCormick opened the public hearing.
Director of Public Works, Water and Development Services Kevin
Wilson reported on the original conditional use permit. He
reported on the findings of approval for the request and on the
conditions for approval. Wilson reported that one written
comment had been received.
It was noted that the staff report is in need of minor
corrections. The public hearing was open for public comment.
Barry Segal of Segal and Rea Architecture, on behalf of his
client, Merco Group, requested that the matter be approved, and
inquired whether there were any questions he could address.
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May 6, 2014
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Jeff Brown, the adjacent property owner to the subject property,
reported on his four concerns, and noted his apprehension due to
a potentially absentee owner.
In response to Brown’s concerns, Wilson addressed the issues by
providing the relevant documentation and reporting on the
conditions of approval and general practices.
Mayor McCormick further directed staff to continue to work with
Brown on his concerns.
Deputy City Attorney Scott Porter asked the applicant whether
the applicant agreed with the proposed conditions. The
applicant nodded yes, and Porter verbally confirmed this fact on
the record.
In response to Councilmember Ybarra, Wilson advised that if a
complaint is filed, staff will then investigate the matter.
Periodically staff will confirm that the conditions are being
met.
At 9:58 a.m., Mayor McCormick closed the public hearing in order
for Council to consider approval of Resolution No. 2014-17.
Resolution No. 2014-17 - 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.
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.
It was moved by Davis and seconded by Maisano to approve
Resolution No. 2014-17. Motion carried, 5-0.
CONSENT CALENDAR
It was moved by Martinez and seconded by Davis 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. Claim for Damages received on April 16, 2014 from Maria
Sedona, in the amount of $160.00.
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May 6, 2014
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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.
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.
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May 6, 2014
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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.
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
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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.
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
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May 6, 2014
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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.
Director of Gas and Electric Carlos Fandino reported that
Element Markets was unable to comply with the terms set forth in
their agreement. Outside legal counsel was hired to assist.
The City’s desire is to continue with the contract; Fandino
opined that the proposed is a win situation for the City.
Legal Counsel Stanton Snyder reported on the recommendation.
Since Element Markets could not provide the biomethane,
negotiations were made so that they would provide replacement
product that would qualify and satisfy the Bucket 1 requirements
of the renewable portfolio standards (“RPS”). Vernon will be
receiving a $0.50 restructure fee which translates to
approximately $200,000 per year in savings. Snyder noted
staff’s efforts in getting the best deal for the City.
It was moved by Maisano and seconded by Ybarra to approve the
Amended and Restated Biomethane Transaction Confirmation Number
1 and 2 with Element Markets Renewable Energy, LLC. Motion
carried, 5-0.
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.
Director of Public Works, Water and Development Services Kevin
Wilson reported that the substance is used to disinfect the
water supply. The current supplier’s contract will be expiring.
The bid process will result in a new three year contract.
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May 6, 2014
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It was moved by Ybarra and seconded by Davis to approve the
Notice Inviting Bids to supply and deliver liquid sodium
hypochlorite (12.5% concentration). Motion carried, 5-0.
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.
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.
Director of Public Works, Water and Development Services Kevin
Wilson reported that the Department is in need of a new asphalt
roller and trailer as the current model is nonfunctional. He
advised that the current model is from 1988; its use has been
maximized. Sufficient funds for the purchase of a new model
have been budgeted; the anticipated cost is approximately
$60,000.
It was moved by Maisano and seconded by Ybarra to 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. Motion carried, 5-0.
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.
Director of Public Works, Water and Development Services Kevin
Wilson advised that he is pleased with the current contractor’s
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May 6, 2014
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work. The competitive selection process was conducted for the
initial contract. The proposed would extend the contract for an
additional year, for a total of three-years. At the conclusion,
the contract will go out for bid.
It was moved by Ybarra and seconded by Maisano to approve the
extension of the Traffic Signal Maintenance Contract with Aegis
ITS, Inc. Motion carried, 5-0.
Health and Environmental Control Department
5. Resolution No. 2014-18 -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
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.
Director of Health and Environmental Control Leonard Grossberg
reported that the Department applies annually and receives an
average of $15,000 per year. The grant funds are used for
supplies, training, and various expenses.
It was moved by Davis and seconded by Martinez to approve
Resolution No. 2014-18. Motion carried, 5-0.
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
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May 6, 2014
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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.
Director of Gas and Electric Carlos Fandino advised that the
proposed will allow the City to trade natural gas at commodity
prices and allow for maximum flexibility.
It was moved by Maisano and seconded by Davis to approve the
Base Contract with the Gas Acquisition Group of Southern
California Gas Company for the sale and purchase of natural gas
(the NAESB Contract). Motion carried, 5-0.
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, 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.
Director of Gas and Electric Carlos Fandino advised that the
contract provides for the services of outside legal counsel
Stanton Snyder, whose services are used for various contracts.
The current hourly rate is very inexpensive compared to others.
The request will extend the agreement and increase the total
contract to a not to exceed $150,000.
It was moved by Davis and seconded by Maisano to approve
Amendment No. 1 to Existing Contract with Lewis, Brisbois,
Bisgaard, & Smith, LLP for specialty legal services. Motion
carried, 5-0.
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
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May 6, 2014
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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.
Director of Gas and Electric Carlos Fandino reported on the
Metered Subsystem Agreement and subsequent amendments. Fandino
explained that the proposed will financially bind and settle
payments to generators based on 15-minute interval energy
prices.
In response to Councilmember Ybarra’s inquiry regarding the
financial impact of the proposed amendment, Electric Resources
Planning and Development Manager Abraham Alemu explained that
there will be no financial impact as they will continue to
capture true costs. The settlement arrangement is what is being
affected.
It was moved by Maisano and seconded by Martinez to approve the
First Amendment to the Second Amended and Restated Metered
Subsystem Agreement (MSSA-AR2-A1). Motion carried, 5-0.
ORDINANCES
1. Ordinance No. 1221 - 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 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.”
Finance Director William Fox and Deputy City Attorney Scott
Porter conducted a joint presentation on the proposed changes to
the purchasing ordinance.
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As the process is put into practice, Councilmember Ybarra
questioned how it will be audited to determine that it is being
conducted properly. In response, Fox reported that every
transaction and invoice is reviewed by Finance. Additionally,
Porter reported on the use of the contract routing form. Fox
advised that in the future the process will be automated.
Independent Reform Monitor John Van de Kamp applauded staff for
their efforts. He suggested developing a one page summary that
provides an overview of the process, thresholds and authority
limits so that procedures are outlined clearly to staff.
In response, Fox advised that the purchasing manual has a flow
chart that captures this recommendation.
It was moved by Ybarra and seconded by Davis to approve the
first reading of Ordinance No. 1221. Motion carried, 5-0.
ORAL REPORTS
Police Chief Daniel Calleros reported that on April 26, 2014,
patrol officers and fire personnel responded to La Villa Basque.
A special event was planned to be held in the parking lot;
however, the proper permits were not obtained. The event
organizer was advised to discontinue operations until proper
permits were obtained from the City.
On Saturday, May 4, 2014, a stolen vehicle was identified by the
fixed license plate reader system. While attempting to conduct
the felony car stop, the vehicle fled resulting in a car chase.
The driver was eventually located and arrested in East Los
Angeles. The passage was not located; however, sufficient
evidence was found in the stolen vehicle to identify the
suspect. Detectives will conduct further investigations.
Calleros reported that on May 5, 2014, patrol officers observed
a vehicle that was recklessly driving, purposefully creating
circles on the roadway asphalt. Incidents of this nature have
been occurring in the region for the past several months. The
two subjects were not only arrested for reckless driving, but
their vehicles were also impounded for 30-days. Calleros
announced that the Police Department is taking an aggressive
stance to deter this activity in Vernon; furthermore, Public
Works staff will be advising if there are additional charges of
vandalism that could be applied given the damage to the roadway.
Councilmember Ybarra inquired whether vehicles could be
confiscated. In response, Calleros advised that the 30-day
impound seems to be curtailing the problem.
Calleros reported on two officers’ attendance to the Peace
Officer Memorial ceremonies in Sacramento. The memorial honors
fallen officers who have given their lives in serving and
protecting our communities. This year, there were 8 (eight)
officers added to the memorial monument in Sacramento.
Captain Michael Gillman advised that there was no vandalism to
report.
Fire Chief Michael Wilson reported on the written portion of the
Captain’s exam scheduled for May 20, 2014. The oral interview
and simulator are scheduled for June 11 and 12, 2014.
Special and Regular City Council Meeting Minutes
May 6, 2014
Page 14 of 18
Wilson announced the Children’s Hospital of Los Angeles Blood
Drive’s success, by raising 119 units of blood; which translates
to approximately $59,500. Wilson also announced that the St.
Baldrick’s event raised $7,140. He gave a special thank you to
Utility Customer Service Representative Andrea Negrete for
raising over $3,500 through donations and shaving her head.
Wilson announced that the Fire Department will be out in May
collecting donations for the annual MDA Fill the Boot drive. On
May 17, 2014 the Boy Scout Pancake Breakfast will be held at
Fire Station No. 1.
Wilson reported on the crew’s response to La Villa Basque
reported on earlier by Police Chief Calleros. On April 25,
2014, crews responded to an electrical fire on an elevated
platform containing three transformers. Gas and Electric
personnel were notified to respond. On May 4, 2014, crews
responded to a structural fire on Alcoa Avenue; oily rags had
spontaneously ignited causing the fire.
Director of Public Works, Water and Development Services Kevin
Wilson reported on the removal of seats in the audience in order
to provide accessibility and compliance with the Americans with
Disability Act. Additionally, four devices have been purchased
for assisted listening.
Wilson advised that there continues to be an increase in
development activity. He reported on the demolition on Pacific
Boulevard of the former Angelus Can property. The City held a
successful groundbreaking ceremony for the new housing
development, the Vernon Village Park apartments on April 25,
2014.
Wilson advised that there is pending legislation, an Assembly
Bill that could impact how Vernon operates its water utility.
He will provide the Council information as it becomes available.
Mayor McCormick advised that at one point the Council recognized
businesses through proclamations that had invested a certain
amount in development. He inquired whether the recognition
could once again be reinstated.
In response, Wilson advised that the process could be reinstated
but that the threshold may need to be lowered.
Director of Gas and Electric Carlos Fandino reported that on
April 15, 2014, the department experienced the only power outage
since the last Council meeting. The cause of the outage was
determined to be a Mylar balloon.
Fandino reported that the scheduled outage at the Malburg
Generating Station (“MGS”) has been concluded; all three units
are back online. Fandino reported that both H. Gonzales units
are certified by the ISO; these units will continue to be an
asset to the City. Performance testing at the MGS is scheduled
for the week.
Fandino reported that Stanton Snyder and the Southern California
Public Power Authority (“SCPPA”) are working on a solar project
as the opportunity may present itself in the future.
Special and Regular City Council Meeting Minutes
May 6, 2014
Page 15 of 18
Additionally, they are reviewing landfill projects and how
natural gas can be extract for the power plant.
Fandino announced the Special Advisory Committee for Electric
Rates Meeting on May 7, 2014, at 8:00 a.m. in order to continue
discussions on the potential electrical rate adjustments.
Goldwest Trading has increased its electrical usage by
approximately one megawatt. Staff is working on constructing a
new line to feed into the new Whole Foods location.
Additionally, staff is working with the developer to ensure that
Vernon provides the electrical utility at the Vernon Village
Park Apartments.
Director of Finance and City Treasurer William Fox reported on
the fee schedule. He anticipates that there will be one in
place by next fiscal year. Said fee schedule will be made
available on the City’s website once approved.
Fox noted the transition of the City owned housing management to
the Finance Department and advised that he looks forward to
serving the residents.
Director of Health and Environmental Control Leonard Grossberg
reported on the incident at La Villa Basque and the coordinated
efforts to ensure compliance. He additionally reported on the
closure of the facility due to a health code violation.
Staff continues to coordinate with the Department of Toxic
Substances Control on closure for the Thermador property. He
announced that Exide Technologies remains closed pursuant to the
Air Quality Management District order.
Grossberg announced the e-waste event scheduled for May 22,
2014, at Fire Station No. 1. He advised staff that items can be
brought prior to the event in coordination with the Public
Works, Water and Development Services Department.
Grossberg advised that during an upcoming Council meeting
changes to the Sustainable Development and Energy Efficiency
Commission will be addressed including a name change to the
Green Vernon Commission.
Human Resources Director Teresa McAllister announced and
reported on the piloting of the City of Vernon Wellness
Initiatives. She reported on the completion of the Team
Building and Team Communication Training and on the upcoming
Customer Service Training.
McAllister reported that the application closing date for the
City Attorney position was April 21, 2014. Approximately 40
applications were received. An outside interview panel is
scheduled for May 28 to 29, 2014, for qualifying candidates.
The top candidates will then be referred to the City Council
sometime in June.
Economic Development Manager/ Successor Agency Staff Alex Kung
announced the next Oversight Board to the Successor Agency
Meeting scheduled to be held June 5, 2014, at 4:00 p.m. Kung
reported on the status of the Brentwood and Foster City court
cases which were referenced during the Oversight Board’s last
meeting.
Special and Regular City Council Meeting Minutes
May 6, 2014
Page 16 of 18
Kung reported on the City’s participation in a CalTrans grant
application for a planning grant in the amount of $2 million.
This would provide funds to conduct a study on transportation
corridors within the region. Kung reported on the various
participating cities.
Kung reported on Go-Biz which is an income tax credit available
to businesses. California Consulting is gathering more
information on Go-Biz and will be available to assist businesses
with the application process. This information is being shared
with the Vernon Chamber of Commerce.
City Administrator Mark Whitworth reported on BCBGMAXAZRIA’s
25th anniversary celebration held on April 30, 2014. This was a
positive event and was well attended.
On April 16, 2014, staff met with representatives from CalPERS
to discuss the audit that was previously conducted and address
any issues. Staff will continue to work with CalPERS on ongoing
issues.
Whitworth reported on his attendance to Legislative Action Day
in Sacramento on April 23, 2014, along with Economic Development
Manager Alex Kung and Mayor McCormick.
He additionally reported on the Chamber Luncheon for Betty Yee,
candidate for State Controller. He noted that some of the local
businesses support her campaign.
Whitworth reported on Exide Technologies’ (“Exide”) Warn Act
notice and the temporary layoff of some employees. In
communication with Exide, Whitworth noted that they are working
to address their issues.
The City is in the process of transitioning the management of
the City owned housing from Solari Enterprises Inc. (“Solari”)
to the Finance Department. The City will be negotiating a
consulting contract with Solari for specific services as needed.
The application acceptance period for the Public Housing
Property Coordinator position closed on May 5, 2014; three
applications were received.
Whitworth reported on the continued efforts on the budget
process. The first round of the budget sessions was conducted
this day. Staff continues to work through the negation process
with all of the bargaining units.
Senior Strategic Policy Advisor and Director of Communications
Advisor Fred MacFarlane reported on the ground breaking of the
Vernon Village Park housing project on April 25, 2014, and the
ground breaking at Salt Lake Park for the artificial turf,
soccer field on April 26, 2014, in Huntington Park. He noted
that the City’s efforts will impact the community for years and
defines the term good neighbor. This is key in altering the
perception of the City of Vernon to the outside community.
MacFarlane reported that both Senator Lara and Senator De Leon
attended both events. The Vernon Community Fund was announced
during the Salt Lake Park ground breaking. On the day of the
announcement the application website went live on the City’s
Special and Regular City Council Meeting Minutes
May 6, 2014
Page 17 of 18
website. He reported that applications have already been
received.
Independent Reform Monitor John Van de Kamp expressed his
satisfaction with Vernon’s progress, and encouraged the City to
continue on this path.
Whitworth reported that staff will be meeting with Jemmott
Rollins to discuss the selection of the grant committee members.
Upcoming is the Contract Cities Conference on May 15 to 17,
2014. He congratulated Mayor McCormick on his 40 years of
service.
The Council too congratulated Mayor McCormick on his years of
service. McCormick thanked everyone for the recognition.
At 11:34 a.m. Mayor Pro Tem Davis exited the meeting.
CLOSED SESSION
At 11:36 a.m., it was moved by Maisano and seconded by Martinez
to go into closed session to discuss the items listed under
closed session. Motion carried, 4-0. There was no public
comment on this matter.
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
Ortiz v. Los Angeles County Metropolitan Transportation
Authority, et al.
Los Angeles County Superior Court Case No. BC525587
Special and Regular City Council Meeting Minutes
May 6, 2014
Page 18 of 18
AFA Investment Inc., et al. vs. City of Vernon Utilities
U.S. Bankruptcy Court for the District of Delaware, Case
No. 14-50130
At 12:23 p.m., it was moved by Martinez and seconded by Maisano
to exit closed session. Motion carried, 4-0. Deputy City
Attorney Scott Porter announced that there is no reportable
action.
With no further business, at 12:24 p.m., Mayor McCormick
adjourned the meeting.
________________________
W. Michael McCormick
Mayor
ATTEST:
_________________________
Ana Barcia
Deputy City Clerk