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2014-06-03 City Council Minutes (Special, Regular)MINUTES OF THE SPECIAL AND REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, JUNE 3, 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 SPECIAL MEETING The Special meeting of the City Council was called to order at 7:30 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. BUDGET STUDY SESSION 1. Review of proposed budgets for fiscal year 2014-2015 for the following departments:  Fire Department  Health and Environmental Control Department  Police Department Fire Chief Michael Wilson conducted the public budget study session and review of the proposed budget for the Fire Department. Wilson noted that the increase in capital expenditures is due to the proposed training center. Councilmember Ybarra recalled that in previous budget reviews, the Fire Department was over budget by approximately $2 million, and inquired whether this issue had been addressed. He noted that the proposed budget remains relatively the same as in previous years. In response, Wilson advised that the department is currently approximately $600,000 over the budget. Finance Director William Fox further advised that the over budget is due to overtime expense, the PARS early retirement incentive and additional operating costs. Wilson also explained that grant reimbursement funds are often delayed in the process, and therefore not captured timely within the budgets Councilmember Ybarra inquired whether there was any succession planning for the Department. In response, Wilson reported that one new hire is proposed for the upcoming fiscal year. He anticipated that there will be many retirees in the next three to five years. He reported that there is no Fire Marshal; the responsibilities are being performed by Fire Code Inspector William “Bill” Wilson. Councilmember Ybarra inquired whether operating four Fire Stations is necessary. In response, Wilson advised that the Special and Regular City Council Meeting Minutes May 20, 2014 Page 2 of 17 Council has the authority to determine whether the City wants to maintain its Class 1 rating or reduce the number of Fire Stations and go to a Class 2 rating. He noted that a change would impact insurance premium costs for businesses. Wilson advised that the proposed training center will assist the department in maintaining the Class 1 rating. Fox further advised that Wilson and staff have been extremely aggressive in searching for grant opportunities so that projects such as the training center can come to fruition. Councilmember Maisano commended the Fire Chief for working through the staff reduction and aggressively pursuing grant funds to off-set costs. Mayor Pro Tem Davis sought an update on the I-710 expansion project which identifies Fire Station 4 as subject to eminent domain. In response, Director of Public Works, Water and Development Services Kevin Wilson reported that the Environmental Impact Report (“EIR”) was circulated. Thousands of comments were received; he anticipates that the proposal would need to be revised to address the concerns. Wilson explained that unless the EIR is approved, the project will not move forward; the City cannot request funds from CalTrans for the relocation of Fire Station 4 unless this occurs. Director of Health and Environmental Control Leonard Grossberg conducted the public budget study session and review of the proposed budget for his department. Grossberg advised that the budget remains relatively stable. There were no questions of staff from Council on the proposed budget for the Health and Environmental Control Department. Police Chief Daniel Calleros conducted the public budget study session and review of the proposed budget for the Police Department. The Department’s goal is to reduce expenditures while still maintaining the same level of service. He noted the approximately 32% reduction in staffing over the last five years. Calleros highlighted the implementation of the online crime reporting system. Crime levels have remained relatively low and stable. He advised that the Police Department also is facing succession planning concerns. Calleros noted changes in the department’s fee schedule including a reduction to the vehicle release fee. Businesses will be charged for false security alarm calls, starting with the fourth call within a fiscal year. Calleros noted that the goal is not to penalize the businesses, but rather reduce the responses to false alarms. There were no questions of staff from Council on the proposed budget for the Police Department. With no further discussion, at 8:25 a.m., the Special Meeting of the City Council was adjourned. REGULAR MEETING The Regular meeting of the City Council was called to order at 9:00 a.m. by Mayor McCormick; Mayor Pro Tem Davis led the flag salute. Special and Regular City Council Meeting Minutes May 20, 2014 Page 3 of 17 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. The California Highway Patrol “10851” Grand Theft Recovery Award presentation recognizing Officers Fernando Valenzuela, Luis Vasquez, and Richard Villegas. Police Chief Daniel Calleros recognized the officers for their efforts. He reported that Officers Valenzuela and Vasquez have previously received the award. This is the first for Officer Villegas. Calleros reported on the criteria in order to be eligible for the award. Captain Damon Gilmore of the California Highway Patrol and AAA representative presented the officers with the award. PUBLIC HEARINGS 1. Public hearing to consider all oral and written evidence given by Appellant and the City, including the administrative record of the hearing, regarding the appeal of the Special Warehouse Parcel Tax for Coastal Closeouts, Inc. DBA West Coast Rags (APN 6308-014-038). Recommendation: (1) Find that the appeal by Coastal Closeouts, Inc. dba West Coast Rags of the special parcel tax with respect to parcel number 6308-014-038 is not a project subject to the California Environmental Quality Act (“CEQA”) pursuant to California Code of Regulations Section 15378(b)(4) and, furthermore, would be exempt from the requirements of CEQA pursuant to the California Code of Regulations Section 15061(b)(3) general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Conduct a public hearing pursuant to Section 5.62(c) of the City Code regarding the tax appeal by Coastal Closeouts, Inc. dba West Coast Rags of the special parcel tax with respect to parcel number 6308-014-038 and deny the appeal. It is further recommended that the City Council (a) find that the facts stated in this staff report are correct; (b) find that all of the factual assumptions made within the legal analysis of the City’s Special Counsel are correct; and (c) establish that this staff report, including the memorandum of the City’s Special Counsel, shall serve as the findings of fact for this appeal. Special Counsel Mark Mandell explained that the process will be different from other public hearings as this is an appeals process on the determination made by the Public Works, Water and Development Services Department on the appeal to the special Special and Regular City Council Meeting Minutes May 20, 2014 Page 4 of 17 parcel tax submitted by Coastal Closeouts, Inc. DBA West Coast Rags (“appellant”). Mandell explained that it will be a quasi-judicial hearing in that testimony of staff and appellant will be heard; after which, based on the evidence the Council will decide whether the law was applied correctly. Mandell cautioned that this is not an opportunity to discuss whether the law is right; the Council has the authority to address and change the law in the future if it so chooses. Mandell further explained that Director of Public Works, Water and Development Services Kevin Wilson will serve as a witness for this defense, and will need to be sworn in by the Deputy City Clerk. Likewise, the appellant and any of his witnesses will also need to be sworn in. The Council will be the judges. Deputy City Attorney Zaynah Moussa will be Council’s counsel. Mandell advised that he will be presenting on the City’s behalf. The Council is free to ask questions of staff, counsel, or appellant. At the conclusion of the proceedings, the City Council will either find that the Public Works, Water and Development Services Department is correct, find that it is incorrect, or continue the hearing until the next meeting. Mandell explained that if staff is found to be correct, Council’s decision would also adopt the memorandum provided in the administrative record. Council has the authority to amend any of the facts if they do not agree. Mandell presented on behalf of the City the various findings. Mandell reported and explained the appellant’s operation. He concluded that for these reasons the operation has been categorized as a whole sale and not manufacturing production. He noted that the definition of a warehouse is cited in the memorandum and further explained how the warehouse tax is applied. Mandell explained that the issue is whether the operation is a manufacturer, or a wholesale/warehouse as the special warehouse parcel tax does not provide for a definition of a wholesale operation. Witness, Director of Public Works, Water and Development Services Kevin Wilson, was sworn in to provide his testimony. Wilson presented on the special warehouse parcel tax and on the inspection of the facility conducted by staff. Staff found that the majority of the operation involves the sorting and bailing of clothing and shoes. No value is being added to the product. Wilson reported on Vernon Municipal Code 26.2.6 which states that industry and industrial use shall mean the manufacture or production of certain goods and specifically excludes tasks primarily consisting of collecting, sorting, shipping, distributing, or inspecting goods. In the application, the appellant described the operation as sorting clothing and selling to third world countries. Additionally, the certificate of occupancy sites that the facility will be subject to the special warehouse parcel tax. Wilson further reported on his findings and recommended that the appeal be denied. He requested that Council determine that the findings in the staff report and memorandum are correct. Special and Regular City Council Meeting Minutes May 20, 2014 Page 5 of 17 Wilson reported that if the findings are not determined to be correct, the fiscal impact would result in a direct reduction of approximately $55,000 in revenue. Additionally, similar businesses could appeal which could reduce the revenue by approximately $210,000. Moussa advised that the appellant has the opportunity to cross- examine the witness and ask any questions. The appellant had no questions. Appellant, Chuck Bates of Coastal Closeouts, Inc. DBA West Coast Rags, was sworn-in by the Deputy City Clerk. Bates explained that the issue is what is being considered a warehouse operation. He explained that the large bails of clothing in his production are the raw materials and that due to the labor intensive process the business is more like a manufacturer. Bates expressed the importance of the labor component. He opined that staff’s reporting of the process failed to capture this component. Mayor McCormick opened the hearing for public comment. There was no comment from the public. Mayor McCormick inquired whether staff had any final comments. Mandell responded that staff made a reasonable determination that the operation is a warehouse. Moussa advised Bates that this is the opportunity to ask questions or make comments. In response, Bates added that the operation is more like an assembly operation than a warehouse. The material that is being sorted would have gone to a landfill had it not been for Costal Closeouts, Inc.; the operation can also be considered a recycling facility. Bates reemphasized the labor intensive process. Mandell asked Wilson if it was unusual for warehouse operations to involve the sorting of material or whether the operation was limited to the moving of boxes. In response, Wilson advised that there are all types of warehouse operations, including those that perform some assembly before shipping. Wilson confirmed for Mandell that the appellant was not unique in his process. Bates inquired whether there were other warehouses with such a labor intensive process or high payroll costs, Wilson advised that he was not aware of payroll expenses but that there are operations that require a number of employees. Bates advised that the company sells to third world countries, and that the cost to do business cannot be passed-on to the customers. At 9:34 a.m., with no further comments or questions, Mayor McCormick closed the public hearing. It was moved by Davis to approve staff’s recommendation that the facts stated in the administrative report are correct, and approve the memorandum issued by Special Counsel Mandell which shall serve as the finding of facts for this appeal. It was seconded by Maisano. Motion carried, 5-0. Special and Regular City Council Meeting Minutes May 20, 2014 Page 6 of 17 2. Public hearing to consider expenditure of COPS Program funds for fiscal year 2014-2015. Resolution No. 2014-19 - A Resolution of the City Council of the City of Vernon providing for the appropriation of the Citizens Option for Public Safety (COPS) Program funds received for fiscal year 2014-2015 for frontline municipal police services. Recommendation: (1) Find that the proposed actions are exempt from the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Hold a public hearing to consider expenditure of Citizens Option for Public Safety (“COPS”) Program funds for fiscal year 2014-2015; and (3) Approve the Resolution authorizing the expenditure of the funds to pay salary costs for civilian support personnel in fiscal year 2014-2015. Police Chief Daniel Calleros reported that the Department is required to use COPS program funds for unsworn position; the funds must be used to supplement not supplant the police force. The Department is scheduled to receive approximately $100,000 in grant funds. Historically, these funds have been used to subsidize certain position that would not otherwise exist. The notice of public hearing was posted on the website and published in the Vernon Sun. No written comments from the public were received. At 9:38 a.m., Mayor McCormick opened the public hearing to consider public comment on the expenditure of COPS Program funds. With no public comment, at 9:39 a.m. the public hearing was closed. It was moved by Ybarra and seconded by Davis to approve Resolution No. 2014-19. Motion carried, 5-0. 3. Public hearing to consider the rate adjustment of the Public Safety Special Parcel Tax for fiscal year 2014-2015 pursuant to Section 5.46(d)(2) of the Vernon Municipal Code. A Resolution of the City Council of the City of Vernon determining the public safety special parcel tax for fiscal year 2014-2015. Recommendation: (1) Find that adoption of the proposed resolution is not a “project” pursuant to section 15378(b)(4) of the Guidelines to the California Environmental Quality Act (“CEQA”) because it relates to a governmental funding mechanism that does not involve any commitment to any specific project; and even if adoption of the resolution were a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the Special and Regular City Council Meeting Minutes May 20, 2014 Page 7 of 17 general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Adopt a resolution setting the Public Safety Special Parcel Tax for fiscal year 2014-2015 at $.0303 per square foot of taxable parcel area and submitting the public safety special parcel tax list to the Los Angeles County Auditor Controller’s Office. Director of Public Works, Water and Development Services Kevin Wilson reported that 2013-2014 is the first year the public safety special parcel tax was implemented since its approval by Vernon voters under Measure L in 2013. The tax was originally set at $.03 per square foot of taxable parcel area. Staff calculated the maximum increase permitted by City Code based on the consumer price index. It was determined that the maximum that could be applied is $.0303 per square foot of taxable parcel area. Staff recommends approval of the proposed rate increase. Councilmember Ybarra inquired on what will occur if Council does not approve the proposed increase. In response, Wilson explained that the Council does not have to approve staff’s recommendation; however, the tax rate must be set, and cannot be greater than the calculated max of $.0303 per square foot. Councilmember Ybarra advised that he has property that is affected by the proposed tax and inquired whether he could still participate in the deliberation. Deputy City Attorney Scott Porter suggested continuing the public hearing until the next City Council meeting so that an appropriate answer could be provided. It was moved by Maisano and seconded by Davis to continue the public hearing to the June 17, 2014, City Council meeting. Motion carried, 5-0. 4. Public hearing to consider the rate adjustment of the Warehouse Special Parcel Tax for fiscal year 2014-2015 pursuant to Section 5.45(d)(2) of the Vernon Municipal Code. Resolution No. 2014-20 - A Resolution of the City Council of the City of Vernon determining the special parcel tax levied pursuant to section 5.45 of the municipal code for fiscal year 2014-2015. Recommendation: (1) Find that adoption of the proposed resolution is not a “project” pursuant to section 15378(b)(4) of the Guidelines to the California Environmental Quality Act (“CEQA”) because it relates to a governmental funding mechanism that does not involve any commitment to any specific project, and even if adoption of the resolution were a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Adopt a resolution setting the Warehouse Special Parcel Tax rate at $29.39 per 100 square feet of gross area of land for fiscal year 2014-2015 and submitting Special and Regular City Council Meeting Minutes May 20, 2014 Page 8 of 17 the warehouse special parcel tax list to the Los Angeles County Auditor Controller’s Office. Director of Public Works, Water and Development Services Kevin Wilson reported on the Warehouse Special Parcel Tax. He advised that staff had calculated the maximum rate that could be applied based on the consumer price index to be $29.39 per 100 square feet of gross area of land. The current rate is $29.09. The proposed tax rate is projected to generate approximately $9.8 million in revenue. At 9:47 a.m., Mayor McCormick opened the public hearing to consider public comment on the proposed rate adjustment of the Warehouse Special Parcel Tax for fiscal year 2014-2015. Steve Fred of Mt. Vernon Industrial, LLC noted that although he is not objecting to the proposed tax increase, he urges Council to consider the effects of the business license increase and parcel taxes on the rental community. He stated that any building for lease is struggling as the tax and business license fee can be just as much as the rent. He reported on tenants that have left as a result. For landowners there is pressure to keep rent down in order to remain competitive. With no additional comments, at 9:51 a.m., Mayor McCormick closed the public hearing. It was moved by Ybarra to keep the current rate at $29.09 per 100 square feet of gross area of land. The motion dies for lack of a second. It was moved by Maisano and seconded by Davis to approve Resolution No. 2014-20, with staff’s recommendation. Motion carried, 4-1, with Ybarra in opposition. CONSENT CALENDAR It was moved by Davis and seconded by Martinez to approve the matters listed on the Consent Calendar as presented. Motion carried, 5-0. Claims Against the City (to be received and filed) 1. None. Minutes 2. Minutes of the Regular City Council Meeting held April 15, 2014, to be received and filed. 3. Minutes of the Joint Special City Council and Successor Agency to the Redevelopment Agency Meeting held April 15, 2014, to be received and filed. 4. Minutes of the Regular City Council Meeting held May 6, 2014, to be received and filed. Warrant Registers 5. Ratification of the following warrant Registers to record the following voided checks: Special and Regular City Council Meeting Minutes May 20, 2014 Page 9 of 17 a. City Warrant Register No. 1399 to record voided Check No. 344063 in the amount of $10.00; and b. City Warrant Register No. 1399 to record voided Check No. 344011 in the amount of $600.00; and c. City Warrant Register No. 1391 to record voided Check No. 342864 in the amount of $468.40. 6. Approval of City Warrant Register No. 1401, totaling $782,379.50, which covers the period of May 13, through May 26, 2014, and consists of the following: a. Ratification of wire transfers totaling $372,148.31; and b. Ratification of the issuance of early checks totaling $284,571.82; and c. Authorization to issue pending checks totaling $125,659.37. 7. Approval of Light & Power Warrant Register No. 366, totaling $6,003,639.97, which covers the period of May 13, through May 26, 2014, and consists of the following: a. Ratification of wire transfers totaling $5,782,316.15; and b. Ratification of the issuance of early checks totaling $201,732.30; and c. Authorization to issue pending checks totaling $19,591.52. 8. Approval of Gas Warrant Register No. 154, totaling $65,489.50, which covers the period of May 13, through May 26, 2014, and consists of the following: a. Ratification of the issuance of early checks totaling $64,260.64; and b. Authorization to issue pending checks totaling $1,228.86. City Administration Department 9. Councilmembers’ attendance report to the California Contract Cities Association 55th Annual Municipal Seminar from May 15 through 18, 2014. City Clerk Department 10. Resolution No. 2014-21 - A Resolution of the City Council of the City Of Vernon approving and authorizing the execution of an agreement for billing of direct assessments by and between the City of Vernon and the Los Angeles County Auditor-Controller (Public Safety Special Parcel Tax). Recommendation: (1) Find that approval of the proposed agreement is not a “project” under section 15378(b)(4) of the Guidelines to the California Environmental Quality Act (“CEQA”) because it relates to a governmental funding mechanism that does not involve any commitment to any specific project; and even if it were a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies Special and Regular City Council Meeting Minutes May 20, 2014 Page 10 of 17 to projects that may have an effect on the environment; and (2) Approve a resolution to, among other things, authorize the City Administrator to enter into a direct assessment billing agreement with the Los Angeles County Auditor-Controller, in substantially the form submitted herewith, for the collection and distribution of the Public Safety Special Parcel Tax for fiscal year 2014-2015. Competitive bidding or competitive selection is not required because the services are provided by a governmental entity, and because that entity is the sole source of the services provided. 11. Resolution No. 2014-22 - A Resolution of the City Council of the City of Vernon approving and authorizing the execution of an agreement for billing of direct assessments by and between the City of Vernon and the Los Angeles County Auditor-Controller (special parcel tax levied pursuant to section 5.45 of the municipal code). Recommendation: (1) Find that approval of the proposed agreement is not a “project” under section 15378(b)(4) of the Guidelines of the California Environmental Quality Act (“CEQA”) because it relates to a governmental funding mechanism that does not involve any commitment to any specific project; and even if it were a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve the Resolution to, among other things, authorize the City Administrator to enter into a direct assessments billing agreement with the Los Angeles County Auditor-Controller, in substantially the form submitted herewith, for the collection and distribution of the Warehouse Special Parcel Tax for fiscal year 2014-2015. Competitive bidding or competitive selection is not required because the services are provided by a governmental entity, and because that entity is the sole source of the services provided. Fire Department 12. Activity Report for the period of May 1, through May 15, 2014, to be received and filed. Police Department 13. Activity Log and Statistical Summary of Arrest and Activities for the period of May 1, through May 15, 2014, to be received and filed. Public Works, Water and Development Services 14. Bid Award for Contract No. CS-0437: To Supply and Install Submersible Pump Motor and Pump Unit at Production Well No. 16. Recommendation: Special and Regular City Council Meeting Minutes May 20, 2014 Page 11 of 17 (1) Find that the proposed project, to supply and install submersible motor and pump unit at Production Well No. 16, is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15301, subsections (b) and (d), because the project involves negligible or no expansion of use beyond that existing at the lead agency’s determination; and (2) Accept the bid from Weber Water Resources, LLC, as the lowest responsive and responsible bidder and enter into contract, in an amount not to exceed $114,898.00, to supply and install the submersible pump motor and pump unit at Production Well No. 16, Contract No. CS- 0437. NEW BUSINESS City Clerk Department 1. Resolution No. 2014-23 - A Resolution of the City Council of the City of Vernon appointing the City’s voting delegate and alternate for the Annual Business Meeting (General Assembly), of the League of California Cities 2014 Annual Conference. Recommendation: (1) Find that approval of the Resolution is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Appoint from the City Council one Delegate and one Alternate for the Annual Business Meeting (“General Assembly”) of the League of California Cities 2014 Annual Conference; and (3) Approve the resolution memorializing said appointments and authorize staff to complete and submit the 2014 Annual Conference Voting Delegate/Alternate Form to the League of California Cities Office. Mayor McCormick recommended the appointment of himself as the Delegate, and the Mayor Pro-Tem, Davis, as the Alternate. It was moved by Ybarra and seconded by Martinez to approve Resolution No. 2014-23 with said appointments. Motion carried, 5-0. Fire Department 2. Authorization to donate Self-Contained Breathing Apparatus Equipment to the Rio Hondo Fire Academy. Recommendation: (1) Find that approval of the proposed donation to the Rio Hondo Fire Academy 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) Authorize the donation of non-working/non-use Self- Contained Breathing Apparatus (SCBA) equipment to the Rio Hondo Fire Academy that will be utilized for Special and Regular City Council Meeting Minutes May 20, 2014 Page 12 of 17 educational and training purposes. It is further recommended that the City Council find that the donation serves a municipal purpose. Fire Chief Michael Wilson explained that the Department transitioned to a new vendor for the self-contained breathing apparatus equipment, and as a result, has a surplus of various components that no longer meet industry standards. He is recommending that these be donated to Rio Hondo Fire Academy for training purposes. The Academy relies on donations or training equipment. Wilson advised that the items cannot be sold because they are aged and do not meet industry standards. It was moved by Davis and seconded by Martinez to authorize the donation of self-contained breathing apparatus equipment to the Rio Hondo Fire Academy. Motion carried, 5-0. City Administration and Human Resources Department 3. (1) Resolution No. 2014-24 - A Resolution of the City Council of the City of Vernon approving amendment no. 1 to the memorandum of understanding by and between the City of Vernon and the Vernon Police Management Association as it relates to compensable wages. (2) Resolution No. 2014-25 - A Resolution of the City Council of the City of Vernon amending exhibit A of Resolution No. 2013-57 regarding the compensation, costs and benefits of its employees (“Citywide Personnel and Salary Resolution”) (Amendment No. 6) Recommendation: (1) Find that approval of the proposed resolutions are exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Adopt the resolution approving Amendment No. 1 to the 2013-2014 Memorandum of Understanding by and between the City of Vernon and the Vernon Police Management Association; and (3) Adopt the resolution amending Exhibit A – Classification and Compensation Plan, of the Citywide Personnel and Salary Resolution effective June 1, 2014, implementing the changes set forth in Amendment No. 1 to the 2013-2014 Memorandum of Understanding between the City of Vernon and the Vernon Police Management Association, and clarifying the correct hourly rates of certain Fire personnel. Director of Human Resources Teresa McAllister reported that the first proposed resolution is a reopener on the existing Memorandum of Understanding (“MOU”) which expires on June 30, 2014. McAllister reported on the key provisions which include new salary ranges at the 75th percentile based on the classification and compensation study. Effective June 1, 2014, employees in the represented group will be placed in the new grade and steps closest to their existing salary but not lower than. Additionally, those in the represented group will be entitled to receive P.O.S.T Certificate Pay effective June 1, 2014. Special and Regular City Council Meeting Minutes May 20, 2014 Page 13 of 17 McAllister advised that the second proposed resolution will incorporate said changes in salary pay into the Citywide Personnel and Salary Resolution. It was moved by Davis and seconded by Martinez to approve Resolution No. 2014-24 and Resolution No. 2014-25. Motion carried, 5-0. 4. Resolution No. 2014-26 - A Resolution of the City Council of the City of Vernon approving the memorandum of understanding by and between the City of Vernon and the Vernon Police Management Association for the period of July 1, 2014 through June 30, 2016. Recommendation: (1) Find that approval of the proposed resolution is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Adopt the resolution approving the Memorandum of Understanding by and between the City of Vernon and the Vernon Police Management Association for the period of July 1, 2014 through June 30, 2016. Director of Human Resources Teresa McAllister explained that in conjunction with the reopener of the Vernon Police Management Association’s (“VPMA”) current Memorandum of Understanding (“MOU”) which is set to expire June 30, 2014, negotiations for a new two-year MOU were conducted. McAllister reported on the key provisions of the proposed MOU for fiscal years 2014-2016. On January 1, 2015 and July 1, 2015, the salaries for those represented will increase 1.5%. From June 1, 2015, through May 31, 2016, under the discretion of the Police Chief and in accordance with the City’s performance evaluation policy, those represented are eligible for a 5% merit increase. Future merit increases will be at the sole discretion of the Council. Effective July 1, 2014, sick leave will not count towards the purpose of calculating overtime pay, and the auto insurance benefit will be discontinued. Additionally, the proposed MOU allows for amendments if the Vernon Police Officers Benefit Association amends their contract language regarding P.O.S.T. Certificate Pay, court attendance, stand by pay, and/or health benefits. Longevity pay will also be discontinued for anyone hired after December 31, 2013. McAllister advised that the proposed will have a $46,514 fiscal impact per fiscal year. It was moved by Ybarra and seconded by Davis to approve Resolution No. 2014-26. Motion carried, 5-0. 5. Resolution No. 2014-27 - A Resolution of the City Council of the City of Vernon amending exhibit A of Resolution No. 2013-57 regarding the compensation, costs and benefits of its employees (“Citywide Personnel and Salary Resolution”) (Amendment No. 7) Recommendation: (1) Find that approval of the proposed resolution is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and Special and Regular City Council Meeting Minutes May 20, 2014 Page 14 of 17 (2) Contingent upon City Council adoption of the Fiscal Year 2014-2015 budget, adopt the attached resolution amending Exhibit A – Classification and Compensation Plan, of the Citywide Personnel and Salary resolution, to be effective June 29, 2014, implementing a new grade and step pay plan as a result of the Citywide classification and compensation study based upon the 75th percentile of the comparable survey labor market for the classifications designated as “Confidential and Mid-Management”. Each employee shall be placed within his/her classification’s new salary grade at the step that is closest to, but not lower than his/her current base salary. Director of Human Resources Teresa McAllister reported that on April 20, 2014, the City adopted the new classification plan, excluding those represented by the Vernon Firemen’s Association; at the time, no changes were made to the salary schedules. Additionally, exempt designations were placed on hold until the implementation of the new salary grades for middle management. McAllister reported that the employees designated as “confidential and mid-management” are not part of a collective bargaining unit and are therefore not subject to the provision of the Meyers-Milias-Brown Act. McAllister reported that the proposed will implement the new salary grades for the confidential and mid-management group based on the classification and compensation study by setting the salaries at the 75th percentile effective June 29, 2014. Additionally, the exempt designations will take effect. McAllister noted that the 75th percentile salaries were included in the departments’ proposed budgets. It is recommended that affected employees be placed at the step that is closest to, but not lower than their current salary within their new salary grades. It was moved by Davis and seconded by Maisano to approve Resolution No. 2014-27. Motion carried, 5-0. ORDINANCES 1. Ordinance No. 1222 - An Ordinance of the City Council of the City of Vernon amending Article XIX, Sections 2.145, 2.146, 2.147, 2.147.1, 2.148 and 2.149 of Chapter 2 of the Vernon Municipal Code relating to the Sustainable Development and Energy Efficiency Commission (second reading). Recommendation: (1) The City Council find the proposed ordinance is a purely administrative function that is not a project within the meaning of the California Environmental Quality Act (“CEQA”). Further, even if it were subject to CEQA, it would be exempt pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Adopt the proposed ordinance to amend Article XIX, sections 2.145, 2.146, 2.147, 2.147.1, 2.148 and 2.149 of the Vernon Municipal Code, to, among other things, rename the “Sustainable Development and Energy Special and Regular City Council Meeting Minutes May 20, 2014 Page 15 of 17 Efficiency Commission” to the “Green Vernon Commission” and to revise the terms of office of the Commission members. It was moved by Davis and seconded by Maisano to adopt staff’s recommendations and thereby adopt Ordinance No. 1222. A roll call vote was taken: - Councilmember Martinez, yes - Councilmember Ybarra, yes - Councilmember Maisano, yes - Mayor Pro-Tem Davis, yes - Mayor McCormick, yes Motion to adopt Ordinance No. 1222 carried, 5-0. ORAL REPORTS Police Chief Daniel Calleros reported on the recovery of stolen merchandise on May 22, 2014, after officers investigated two male suspects’ questionable story of how they were in possession of several boxes containing new women’s clothing. On May 25, 2014, officers conducted robbery arrested in the 4400 block of Boyle Avenue. A female victim reported that she had been assaulted and robbed, in a local restaurant’s parking lot. The suspect vehicle was spotted; upon investigation the stolen items were recovered in the suspect’s vehicle and the suspect was positively identified by the victim. On June 1, 2014, patrol staff and special enforcement team conducted a strategic traffic enforcement operation in several areas throughout the City. Two vehicles were impounded and 31 traffic citations were issued for various traffic violations. Calleros noted that the team is taking an aggressive stance to deter the reckless driving that was been observed in the City. On Saturday June 14, 2014, members of the People for the Ethical Treatment of Animals (“PETA”) plan to conduct a demonstration in front of Farmer John. Representatives indicate that the demonstration will be peaceful. Mobile field force and motor officers will be deployed to address any issues that may arise. Calleros announced that the City of Maywood has issued a Request for Proposal for police services. The Department is in the process of completing a proposal and will submit its proposal by the due date, June 16, 2014. Calleros announced the scheduled Los Angeles Police Department SWAT team training exercise on June 6, 2014, that will be conducted along the Los Angeles riverbed near Downey and Vernon Avenue. The training will involve the use of a helicopter. Captain Michael Gillman reported vandalism on May 27, 2014, in the area of 4500 Maywood Avenue. There are no suspects, however, detectives are following up on the incident. Fire Chief Michael Wilson announced the CERT Class to be held on June 16, 23, and 30, 2014. He announced the Fire Department’s participation during Farmer John’s Heath Fair. Special and Regular City Council Meeting Minutes May 20, 2014 Page 16 of 17 Wilson reported on the Haz Mat response to a leaking semi- tractor on May 20, 2014, in the City of Downey. The substance was identified as tamol 731, an additive in paint. He advised that the leak was contained. On May 29, 2014, crews responded to a fire alarm in Santa Fe Springs. Fire Departments from Area E battled the fire for 12 hours. Wilson advised that Vernon crews were on location for three days assisting with the incident. Director of Public Works, Water, and Development Services Kevin Wilson reported on the receipt of a notice of violation from the Air Quality Management District (“AQMD”) regarding the location of the emergency generator exhaust vent. According to AQMD the vent is located too close to the Vernon Elementary School. The City hired an engineer and submitted plans to relocate the vent to resolve the issue; however, the proposal was rejected by AQMD. The generator will need to be replaced; quotes are being obtained. Electric Resources Planning & Development Manager Abraham Alemu announced that Director of Gas and Electric Carlos Fandino is out of the office; however, Alemu advised that he is available to answer Council’s questions. Alemu reported on a minor power outage that occurred on May 25, 2014. He reported on his attendance to the California Energy Commission meeting. He advised that there was good dialog, and that the Commission is committed to working with public utilities to address issues such as duplicate reporting requirements. Additionally, the Commission discussed the renewable portfolio standards and the eligibility of resources, and timing concerns with the certification of the power plants. Alemu advised that the meeting was an open discussion and that he is encouraged by the transparency. Finance Director William Fox reported on the contract with Bloomberg which will facilitate the monitoring of the City’s investment portfolio, and ability to obtain better interest rates. Fox explained that this was previously done through Bond Logistix (“BLX”), LLC. Fox announced that the City, led by the Finance Department, has taken over the city housing management. The Public Works, Water and Development Services Department will be assisting with maintenance and repair work. Director of Health and Environmental Control Leonard Grossberg announced the Green Vernon Commission meeting on June 18, 2014, at 3:30 p.m. Human Resources Director Teresa McAllister announced the customer service training on June 25, 2014, and the wellness program meetings on June 5, 2014. McAllister reported that interviews with City Council for the top City Attorney candidates will be held on June 12, 2014. Economic Development Manager/ Successor Agency Staff Alex Kung announced the Oversight Board to the Successor Agency of the Redevelopment Agency meeting on June 5, 2014, at 4:00 p.m. Deputy City Clerk Ana Barcia announced the transition of summary Minutes to action Minutes. This will reduce staff time in post Special and Regular City Council Meeting Minutes May 20, 2014 Page 17 of 17 meeting, administrative work. Barcia advised that the transition will be effective July 1, 2014, and will apply to all City agencies, commissions and committees. Senior Strategic Policy Advisor and Director of Communications Advisor Fred MacFarlane announced that the Vernon Quarterly will be out soon. A trip to Jawbone Canyon is being coordinated so that Council can meet with Kern County officials. MacFarlane advised that the Salt Lake Park soccer field will be opening soon; announcement of a ribbon cutting ceremony is anticipated. City Administrator Mark Whitworth reported that the City is in the process of completing the Los Angeles County Economic Development Corporation application for most business friendly city. Staff is also working on a new agreement with Reed and Davidson, for its reduced role as the City continues to reduce its reliance on outside counsel. The candidates for the Vernon CommUNITY Grant Fund Committee are scheduled to be presented in July. He reminded all that this day is the primary election day. CLOSED SESSION Mayor McCormick asked whether any member of the public wished to address the Council on the closed session agenda. Nobody wished to address the Council. At 11:04 a.m., it was moved by Davis and seconded by Martinez to go into closed session to discuss the item listed under closed session. Motion carried, 5-0. 1. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Agency Designated Representatives: Mark Whitworth, Teresa McAllister and Paul Coble Employee Organizations: Vernon Firemen's Association, and Teamsters Local 911 At 11:49 a.m., it was moved by Maisano and seconded by Ybarra to exit closed session. Motion carried, 5-0. Deputy City Attorney Zaynah Moussa announced that there is no reportable action. With no further business, at 11:50 a.m., Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Ana Barcia Deputy City Clerk