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2014-06-17 City Council Minutes (Special, Regular)MINUTES OF THE SPECIAL AND REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, JUNE 17, 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 Closed Session and Budget Study Session only, and inquired whether anyone in the audience wished to address the City Council. No one responded. 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 7:30 a.m., it was moved by Davis and seconded by Maisano to go into closed session to discuss the items listed under closed session. Motion carried, 5-0. 1. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Initiation of litigation pursuant to Gov’t Code Section 54956.9(d)(4): 1 potential case. 2. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Agency Designated Representatives: Mark Whitworth, Teresa McAllister, and Paul Coble Employee Organizations: Vernon Police Officers’ Benefit Association, Vernon Firemen's Association, Vernon Fire Management Association, Teamsters Local 911, and International Brotherhood of Electric Workers Local 47. At 7:54 a.m., the City Council exited closed session. Mayor McCormick announced that the closed sessions will continue after the regular City Council meeting. BUDGET STUDY SESSION 1. Review of proposed budgets for fiscal year 2014-2015 for the following departments:  City Council  City Administration Special and Regular City Council Meeting Minutes June 17, 2014 Page 2 of 26  Human Resources  City Housing  Successor Agency Economic Development Manager/ Successor Agency Staff Alex Kung conducted the public budget study session and review of the City Council and City Administration budget proposals. He noted that this also includes the Industrial Development and CommUNITY Fund expenses. Kung reported that the budgets remain stable. Kung reported on the request for an Executive Assistant to the City Administrator as the department currently shares a Secretary with the Fire Department. He reported on various accomplishments, including the groundbreakings of the Vernon Village Park Apartments, and the artificial turf soccer field at Salt Lake Park. The City also assisted the City of Huntington Park with obtaining grant funds for park lighting. The City continues to improve its relations with local and state agencies. Future goals include the formation of the CommUNITY Fund Grant Committee and Vernon Business and Industry Commission. In response to Independent Reform Monitor John Van De Kamp, Kung explained the funds that are still available for the CommUNITY Grant Fund. Director of Human Resources Teresa McAllister conducted the public budget study session and review of the proposed budget for the Human Resources Department. McAllister reported on the increase in the proposed budget which is primarily due to the increase in salary expenses and the request for a new part-time position to be filled mid-year. McAllister highlighted the department’s accomplishments. The Department intends to continue to implement professional development training and is coordinating an employee appreciation day in order to increase morale. There were no questions of staff from Council on the proposed budget. Finance Director William Fox conducted the public budget study session and review of the proposed budget for the City Housing Department. Fox explained that the City has resumed the responsibility of property management for the City owned housing units. The Finance Department has a part-time Housing Coordinator for the administration portion of the housing stock as well as routine maintenance services. The Public Works, Water and Development Services Department will additionally have a part-time Maintenance Worker to assist with repairs. Proposed expenses for the Housing Department increased; however, Fox explained that this is to capture costs associate with legal and professional services not previously budgeted in this department. Fox reported that all units are currently leased; capital improvement plans are proposed to be funded by rent revenue. Fox reported on his intent to review current policies for completeness and conformance with best practices. He will be providing regular updates on the housing stock to the Vernon Housing Commission. There were no questions of staff from Council on the proposed. Economic Development Manager/ Successor Agency Staff Alex Kung reported that the proposed Successor Agency to the Redevelopment Special and Regular City Council Meeting Minutes June 17, 2014 Page 3 of 26 Agency (“Successor Agency”) budget only contains bond payments. The Oversight Board to the Successor Agency is progressing in the winding down of affairs with the sale of the Angelus Can property. The Austin Trucking property remains. Staff will continue to review different avenues in its efforts to unwind the affairs of the Successor Agency. With no further discussion, at 8:49 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; Councilmember Maisano led the flag salute. CHANGES TO THE AGENDA Mayor McCormick announced that there are no changes to the agenda. PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. No one responded. PRESENTATIONS 1. Personnel Matters - Service Pin Awards Director of Human Resources Teresa McAllister reported on Police Officer Miguel Hernandez’ years of service. Mayor McCormick presented Hernandez with the service pin. PUBLIC HEARINGS 1. 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. Resolution No. 2014-28 - 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 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 Special and Regular City Council Meeting Minutes June 17, 2014 Page 4 of 26 public safety special parcel tax list to the Los Angeles County Auditor Controller’s Office. Councilmember Ybarra announced that although he has no legal obligation to recuse himself from the deliberation, because he has personal interests that are affected by the recommendation, he has elected to recuse himself. Ybarra exited the Council Chambers. At 9:05 a.m., Mayor McCormick opened the public hearing for consideration of the public safety special parcel tax rate adjustment. Director of Public Works, Water and Development Services Kevin Wilson reported on the public safety special parcel tax. He explained that the tax can be adjusted based on the consumer price index. He advised that the current rate is $0.03 per square foot of taxable parcel area and that the calculated maximum the City could charge is $.0303. Staff is proposing to adopt the maximum rate. Mayor McCormick opened for public comment. There was no public comment. With no further comments or questions of staff, at 9:06 a.m. the public hearing was closed. It was moved by Davis and seconded by Martinez to approve Resolution No. 2014-28. Motion carried, 4-0-1, with Ybarra recused from this item. Councilmember Ybarra reentered the meeting. 2. Public hearing to consider GeoGreen Biofuels, Inc.’s request for an amendment to the existing conditional use permit to allow the installation of additional processing equipment and storage tanks. Resolution No. 2014-29 - A Resolution of the City Council of the City of Vernon approving a modification of conditional use permits formerly approved by Resolution No. 9195 and 9614 for GeoGreen Biofuels, Inc., formerly known as Green Star Biofuels, LLC, dba GeoGreen Biofuels, located at 6011 and 6017 Malburg Way. Recommendation: (1) Find that approval of the proposed Conditional Use Permit (“CUP”) amendment is categorically exempt under the California Environmental Quality Act (“CEQA”) in accordance with California Code of Regulations Title 14, Chapter 3, Class 1, Section 15301 because no physical changes other than interior improvements will occur and no significant impacts to the environment will occur as a result of the issuance of the CUP amendment; and (2) Adopt a resolution approving a modification to conditional use permits that were approved by Resolution No. 9195 and 9614 to allow GeoGreen Biofuels, Inc. (GeoGreen) to operate an existing recycling facility, subject to the conditions of approval for the property located at 6011 & 6017 Malburg Way. Special and Regular City Council Meeting Minutes June 17, 2014 Page 5 of 26 At 9:06 a.m., Mayor McCormick opened the public hearing to consider the request for a conditional use permit for GeoGreen Biofuels, Inc. Director of Public Works, Water and Development Services Kevin Wilson reported on GeoGreen Biofuels, Inc. He explained that the purpose for the conditional use permit is to allow the installation of additional equipment. Wilson noted that the proposed installation would result in a safer and more environmentally friendly operation. The operation is considered to be a recycling facility for purposes of the municipal code. Wilson reported on the findings and conditions for approval. Mayor Pro Tem Davis inquired whether any written public comment had been received regarding the proposed. Wilson confirmed that none had been received. Mayor McCormick opened for public comment, there was no response. At 9:18 a.m. the public hearing was closed. It was moved by Ybarra and seconded by Maisano to approve Resolution No. 2014-29. Motion carried, 5-0. 3. Public hearing to consider Jia Hui Resources, LLC’s request for a conditional use permit to operate an indoor recycling facility. A Resolution of the City Council of the City of Vernon approving a conditional use permit for Jia Hui Resources, LLC to operate a recycling facility located at 4726 Everett Court. Recommendation: (1) Adopt a resolution that, among other things: (a) approves a conditional use permit to allow a recycling facility to be operated at 4726 Everett Court, subject to conditions of approval; and (b) adopts a Negative Declaration finding that the project will not have a significant impact on the environment within the meaning of the California Environmental Quality Act. At 9:19 a.m. the public hearing to consider the request for a conditional use permit for Jia Hui Resources, LLC (“Jia Hui”) was opened. Director of Public Works, Water and Development Services Kevin Wilson described the operation at Jia Hui, and explained that it will be receiving used carpet and shaving off the fibers for further processing. The proposed operation is considered a recycling facility for purposes of the municipal code and requires a conditional use permit. Wilson reported on the property location. He advised that as part of the recommendation, staff is recommending the adoption of the Negative Declaration in compliance with the California Environmental Quality Act. Wilson further reported on the conditions of approval. Wilson advised that one email was received as part of public comment, and reported on the questions, concerns, and the City’s Special and Regular City Council Meeting Minutes June 17, 2014 Page 6 of 26 response. He noted that staff responded to the concerns via email. Mayor Pro Tem Davis inquired on the power use for the operation. In response, Wilson explained that the power use will remain similar to that of the previous operation. A power load increase is not anticipated. Mayor McCormick inquired whether there was anyone in the audience that wished to comment on the proposed. Caleb Morse, CFO at Meridith Bear Home, the neighboring operation, expressed his concerns over the release of asbestos and mold through the proposed operation. Additionally, he stated that the proposed conditional use permit does not address odor concerns. The facilities are positioned closely together; there is little buffer, and Morse is concerned about the noise level. In response, Wilson explained that the City’s zoning ordinance contains noise requirements. The occupant would have to meet said requirements. However, until the operation is up and running, it is difficult to determine whether the noise level is a concern. Wilson further explained that if there is a noise complaint, the City will investigate and enforce the requirements if necessary. Wilson advised that the concerns over asbestos and mold are genuine concerns. For this reason, he is requesting that the hearing be continued to allow staff time to review the concerns. Morse inquired on the timeline. In response, Wilson requested that the hearing be continued to the July 1, 2014, City Council meeting. Myung Chung, the Architect for the proposed Jia Hui project, explained that the report submitted to staff addresses hazardous material concerns. He further advised that no hazardous material is to be used or stored on site. Chung is unaware of a potential noise exceedance, but as Wilson noted, when the operation is running, if there is an exceedance, then the operation would be required to comply. He reported that the operation will have three machines and that there is no issue with the power supply. The operation is minimal compared to the size of the property. Chung requested that the matter not be continued as the report already addresses the hazardous material concerns. He requested the City Council approve the Conditional Use Permit today. Wilson advised that if the operation is only processing new carpet, then he will support the approval of the proposed. However, if used carpet is being processed, then he requests that the matter be postponed to the July 1, 2014, meeting to allow for further review by staff. Derek deVre of Voit Real Estate Services expressed his concerns with potential hazardous material that could arise from the operation. Special and Regular City Council Meeting Minutes June 17, 2014 Page 7 of 26 With no further public comments or questions of staff, the public comment portion of the public hearing was closed at 9:40 a.m. It was moved by Davis and seconded by Maisano to continue the public hearing on the conditional use permit to the July 1, 2014, City Council meeting. Motion carried, 5-0. 4. Public hearing to consider the adoption of the General Fee Schedule for Services Provided by the City. A Resolution of the City Council of the City of Vernon approving and adopting a General Fee Schedule. Recommendation: (1) Adopt the resolution for the General Fee Schedule for the Fiscal Year 2014-15. The implementation of the General Fee Schedule as recommended by the independent consulting firm, Capital Accounting Partners, follows best practices by maintaining fiscal responsibility and stability through a better matching of services costs with fees being charged. The resolution, among other things, finds that the approval of the resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Guidelines section 15273, and that even if it were, it would be exempt pursuant to section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. At 9:41 a.m., Mayor McCormick opened the public hearing to consider the adoption of the general fee schedule for services provided by the City. Finance Director William Fox reported on the process and the selection of Capital Accounting Partners, LLC to conduct the initial study and review of services provided by the City. He advised that the purpose was to identify whether the City was undercharging, overcharging, or charging at all for the various services it provided. The study found that the City was subsidizing approximately $2.3 million of the cost for services. The proposed would increase the service fees; however, Fox noted that the full costs are not being proposed across the board. He explained that the City is not trying to make a profit, but rather recoup its cost for some of its services. The proposed schedule would recover 65% of the city’s costs. This will allow the City to be competitive with other cities. Fox advised that this is good practice and recommends approval. Deputy City Attorney Scott Porter advised that the proposal is also meant to deter certain behavior. He explained, for example, the fee associated with the response to false alarms after the 3rd alarm. The Mayor inquired whether anyone in the audience wished to speak on the matter. Marisa Olguin, President of the Vernon Chamber of Commerce, recognized the City’s work and transparency. Olguin expressed her concerns that there has not been a conversation with the business community on the proposal. She stated that the Chamber Special and Regular City Council Meeting Minutes June 17, 2014 Page 8 of 26 cannot endorse or support the proposed as there has been insufficient time to review the proposal. She understands the study was needed; however, Vernon should try to remain business friendly. Peter Corselli of U.S. Growers Cold Storage stated that the business community was not given sufficient notice of the proposal. He noted that last year the business license fee increased five-fold. The proposal is an additional burden to the businesses, and does not follow the business friendly environment Vernon was previously known for. Independent Reform Monitor John Van de Kamp opined that Olguin and Corselli have a justifiable critique, as the business community may not have had sufficient time to review the proposal. Van de Kamp explained that the fees are not applicable to the broad community but rather are associated with the actual user. Van de Kamp recommended postponing the matter to the July 1, 2014, City Council meeting; or, alternatively, approving the general fee schedule contingent on the business community’s comments and review. With no further comments, it was moved by Davis to continue the public hearing to the July 1, 2014, City Council meeting. It was seconded by Maisano. Motion carried, 5-0. 5. Public hearing to consider the approval of adjustments to retail electric rates. Resolution No. 2014-30 - A Resolution of the City Council of the City of Vernon adopting Electric Rate Schedules Nos. CS, D, GS-1, GS-2, LS-1, LS-2, OL-1, PA-1, PA-2, PA- TOU, TC-1, TOU GS-1, TOU GS-2, TOU PA-1, TOU-D, TOU-G, TOU-I and TOU-V. Recommendation: (1) Find that this action is not subject to the California Environmental Quality Act (“CEQA”), in accordance with CEQA Guidelines section 15273, because CEQA does not apply to “rates, tolls, fares, and other charges by public entities”; and that even if it were subject to CEQA, it would be exempt pursuant to section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Approve a resolution, which, among other things, adopts rate schedules which include a 5% rate adjustment for electric customers effective July 1, 2014. At 9:55 a.m., Mayor McCormick opened the public hearing to consider the approval of adjustments to the electric rates. Director of Gas and Electric Carlos Fandino presented on the electrical rates and the use of Crossborder to conduct the study and make recommendations on electrical rate increases. Fandino reported on the Advisory Committee on Electric meeting. He and Finance Director William Fox conducted their presentation on proposed rate adjustment for fiscal year 2015 as presented Special and Regular City Council Meeting Minutes June 17, 2014 Page 9 of 26 during the Advisory Committee on Electric Rates meeting held May 7, 2014. Mayor McCormick inquired whether anyone in the audience wished to speak on the proposed rate adjustments. No one responded. With no further comments, at 10:29 a.m. the public hearing was closed. It was moved by Davis and seconded by Martinez to approve Resolution No. 2014-30. Motion carried, 5-0. 6. Public hearing to consider the adoption of the Gann Governmental Appropriation Limit. Resolution No. 2014-31 - A Resolution of the City Council of the City of Vernon adopting an appropriation limit for the 2014-2015 fiscal year, pursuant to Government Code Section 7910. Recommendation: (1) Find that adoption of the proposed Fiscal Year 2014- 2015 Appropriation Limit 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) Establish the City’s Appropriation Limit for the Fiscal Year 2014-2015 in the amount of $988,993,313 based on the percentage growth in the State Per Capita Personal Income and County Population. At 10:30 a.m., the public hearing to consider the adoption of an appropriation limit for fiscal year 2014-2015 was opened by Mayor McCormick. Finance Director William Fox advised that the adoption of an appropriation limit is required by the state. Fox reported on the establishment of the Gann Limit. He explained that it is the cap on spending limits for municipal government. Fox reported that the City is required conduct calculation under four methodologies; the City is under the limit for all four calculated limits. Mayor McCormick inquired whether anyone in the audience wished to comment on the proposal. There was no response. With no further comment, the public hearing closed at 10:32 a.m. It was moved by Ybarra and seconded by Maisano to approve Resolution No. 2014-31. Motion carried, 5-0. 7. Public hearing to consider the approval of the proposed City-wide budget. Resolution No. 2014-32 - A Resolution of the City Council of the City of Vernon approving a budget for the fiscal year 2014-2015. Recommendation: (1) Find that adoption of the proposed resolution is exempt from the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the Special and Regular City Council Meeting Minutes June 17, 2014 Page 10 of 26 general rule that CEQA only applies to projects that may have an effect on the environment; and (2) Adopt the resolution approving the citywide balanced budget for fiscal year 2014-2015, with estimated budgeted revenues of $343,302,500 and expenditures of $343,302,500. At 10:32 a.m., Mayor McCormick opened the public hearing to consider the approval of the proposed City-wide budget for fiscal year 2014-2015. City Administrator Mark Whitworth advised that the proposed is a balanced budget with approximate 2% increase from the 2013-2014 fiscal year’s budget. It takes into account the consumer price index, the electric rate adjustment, a 75th percentile compensation for the workforce, expenses associated with the Vernon Gas and Electric Department and proposed new hires. Whitworth reported on the four budget study sessions conducted. Priorities for the proposed budget include supporting capital improvement projects. There has also been an increase in grant activity to acquire safety equipment. Whitworth reported on the formation of the CommUNITY Fund Grant Committee; appointments to said committee are scheduled for the July 1, 2014 Council meeting. Additionally, the City is proposing a new Business and Industry Commission to take place of the Advisory Committee for Business Development and the Advisory Committee for Electric Rates. Whitworth noted that the proposed budget incorporates the proposed general fee schedule. He advised that during each of the budget study sessions, the fee impact was presented. He warned that the labor components is still a moving target as there are still ongoing negotiations with some of the bargaining units. Finance Director William Fox further explained that place holders for anticipated costs for the labor component were used. If there is a significant difference after labor negotiations have concluded, then a budget amendment will be presented. Mayor McCormick inquired whether anyone in the audience wished to comment on the proposal. Marisa Olguin, President of the Vernon Chamber of Commerce, advised that the City has made a lot of progress, and taken on the recommendations of the business community and those of Independent Reform Monitor John Van de Kamp. Services have been streamlined; great steps have been taken in the right direction. However, Olguin noted that the proposed still incorporates a 2% increase. The business community would like to see a 2% reduction to the proposed budget to help offset the fees and rate increases passed onto the businesses. She encourage the City to look for other avenues to increase revenues. Olguin advised that things are escalating quickly, and the City is killing the hand that feeds it. Olguin urged the Council to work hard to protect the rates from further increases and to restructure finances. She urged for a decrease in City budgets. Special and Regular City Council Meeting Minutes June 17, 2014 Page 11 of 26 With no further comments, at 10:43 a.m. the public hearing closed. Mayor Pro Tem Davis commended staff for its work on the budget. Davis moved to approve Resolution No. 2014-32; it was seconded by Maisano. Motion carried, 5-0. 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. Claim for Damages received on June 9, 2014 from Jaime Andres Shuton in the amount of $1,301.82. Minutes 2. Minutes of the Special and Regular City Council Meeting held May 20, 2014, to be received and filed. Warrant Registers 3. Approval of City Payroll Warrant Register No. 696, totaling $3,768,019.18, which covers the period of May 1, through May 31, 2014, and consists of the following: a. Ratification of direct deposits, checks and taxes totaling $2,815,633.47; and b. Checks and electronic fund transfers totaling $952,385.71. 4. Approval of City Warrant Register No. 1402, totaling $1,143,002.43, which covers the period of May 27, through June 9, 2014, and consists of the following: a. Ratification of wire transfers totaling $642,068.66; and b. Ratification of the issuance of early checks totaling $192,591.72; and c. Authorization to issue pending checks totaling $308,342.05. 5. Approval of Light & Power Warrant Register No. 367, totaling $1,218,059.43, which covers the period of May 27, through June 9, 2014, and consists of the following: a. Ratification of wire transfers totaling $1,184,072.19; and b. Ratification of the issuance of early checks totaling $22,569.85; and c. Authorization to issue pending checks totaling $11,417.39. 6. Approval of Gas Warrant Register No. 155, totaling $2,763,791.09, which covers the period of May 27, through June 9, 2014, and consists of the following: a. Ratification of wire transfers totaling $2,755,238.47; and Special and Regular City Council Meeting Minutes June 17, 2014 Page 12 of 26 b. Ratification of the issuance of early checks totaling $6,066.51; and c. Authorization to issue pending checks totaling $2,486.11. City Administration Department 7. Report by City Administrator on Compliance With Vernon’s Conflict of Interest Code Requirement that Consultants Be Required to File Annual Statements of Economic Interests (Form 700) to be received and filed. 8. Resolution No. 2014-33 - 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. 8). 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) Contingent upon City Council adoption of the Fiscal Year 2014-2015 budget, adopt the resolution amending Exhibit A – Classification and Compensation Plan, of the Citywide Personnel and Salary resolution, to be effective July 1, 2014, to add the following new job classifications with the corresponding salary ranges: Executive Assistant to the City Administrator (C24 - $5,492 - $6,675 – Confidential Group), Human Resources Assistant (C17 - $3,903 - $4,744 – Confidential Group), Public Works Foreman (M26 - $6,055 - $7,360 – Management Group), Facilities Maintenance Worker (2380 - $2,609 - $3,231 – Teamsters Miscellaneous Group), and Utilities Compliance Analyst (G27 - $6,358 - $7,728 – Teamsters Miscellaneous Group). 9. Approval of the New Agreement with Reed & Davidson, LLP for Legal Consulting Services Regarding City-Owned Housing, Political Reform Act, Ralph M. Brown Act, Public Records Act, Elections and Related Matters; and Exemption from Competitive Selection Process. Recommendation: (1) Find that approval of the proposed agreement 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 City Administrator to execute the Attorney Services Agreement with the law firm of Reed & Davidson, LLP for legal consulting services regarding City-owned housing, Political Reform Act, Ralph M. Brown, Public Records Act, Elections Code and other municipal election laws and regulation, and related matters, in substantially the same form as submitted, in an amount not to exceed $75,000, for the term of May 24, 2014 through June 30, 2015. (3) Grant an exemption from the competitive selection process, pursuant to Section 2.17.12(b)(2) of the Special and Regular City Council Meeting Minutes June 17, 2014 Page 13 of 26 Vernon Municipal Code, based upon a determination 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 in the staff report. Competitive bidding is not required for professional services contracts pursuant to Section 2.17.12(a)(10). 10. Request for Approval of Amendment No. 1 to the Attorney Services Agreement by and between the City of Vernon and Law Offices of Jones & Mayer to provide personnel and labor law attorney services. Recommendation: (1) Find that approval of the proposed contract amendment 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 City Administrator to execute Amendment No. 1 to the Attorney Services Agreement with the law firm of Jones & Mayer, in substantially the same form as submitted herewith, to provide personnel and labor law attorney services as needed. City Clerk Department 11. Direction to Staff, Local Agencies, Boards, and Commissions regarding Conflict of Interest Code. Recommendation: (1) Find that the proposed directives do not constitute a “project” pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act (“CEQA”), because they constitute administrative activities; and even if the directives did constitute 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) Direct each board, agency, committee, and commission affiliated with the City to review its Conflict of Interest Code, and to, by October 1, 2014, either (a) submit proposed revisions to the City Council, or (b) recommend that no revisions be made; and (3) Direct staff to compile all proposed conflict of interest codes into one Master Conflict of Interest Code to be presented for City Council consideration. Finance Department 12. Approval of Property and Casualty Insurance Placements for Fiscal 2014-15. Recommendation: (1) Find that allowing Aon Insurance Services, the City’s insurance broker, to obtain insurance coverage on behalf of the City is not a “project” within the meaning of the California Environmental Quality Act (“CEQA”) and is exempt pursuant to Section 15061(b)(3), the general rule that CEQA only applies Special and Regular City Council Meeting Minutes June 17, 2014 Page 14 of 26 to projects that may have an effect on the environment. (2) Authorize the City Administrator to bind the City for the annual insurance coverage on or before the July 1, 2014 renewal date, provided the total annual premiums to be paid shall not exceed $1,035,703. This renewal is for excess liability insurance, property, excess workers’ compensation, crime, pollution liability, and environmental site liability coverage. Pursuant to Vernon Municipal Code § 2.17.10(A)(8), contracts for insurance are not subject to the city’s competitive bidding requirements. Fire Department 13. Activity Report for the period of May 16, through May 31, 2014, to be received and filed. Gas and Electric Department 14. Approval of the Upstream Internet Access Services Contract Renewal with Level 3 Communications, LLC. Recommendation: (1) Find that approving the recommended contract amendment 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 of the environment; and (2) Authorize the City Administrator to execute a three year contract renewal with Level 3 Communications, LLC (“Level 3”) “not-to-exceed” a total amount of $180,000 during the term ($60,000 annually, including taxes and fees) for the delivery of a wholesale internet access circuit to the City’s internet system, in a form substantially similar to that attached as Exhibit A to the staff report. The proposed contract will increase the city’s pre-tax monthly bill by $305, from $3,595 to $3,900, and double transmission speeds from 100 Mbps to 200 Mbps. It is further recommended that the City Council find that the contract is exempt from competitive bidding requirements pursuant to Vernon Municipal Code § 2.17.12(A)(6) because this is a contract for the acquisition or transmission of telecommunications for the Gas & Electric Department and it would be commercially unreasonable to procure these services through standard bidding or request for proposal procedures, given that that the city is already connected to Level 3’s network, and switching carriers would be too expensive to be in the city’s best interests. 15. Request for Approval of the Dutch, LLC Optical Fiber Use Agreement No. 11. Recommendation: (1) Find that the approval is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15303(d) which exempts minor extensions of utility services, and under Section 15061(b)(3), the general rule that CEQA only applies Special and Regular City Council Meeting Minutes June 17, 2014 Page 15 of 26 to projects that may have an effect on the environment because the proposal will not require any construction, and the only physical change to the environment is stringing a few hundred feet of fiber optic cabling (of roughly ½ inch in diameter) from existing utility poles onto private property; and (2) Approve Optical Fiber Use Agreement No. 11 with Dutch, LLC and the related Short Form IRU-11.1 and IRU-11.2 Indefeasible Right of Use Agreement. Upon approval, construction for the implementation of an Optical Fiber Connection will commence. 16. Authorize the Award of Bids and Purchase Contracts to OneSource (Southwire) and HD Supply Power Solutions, Ltd. (General Cable) for Medium Voltage 15 KV Rated Underground Cable for the Gas & Electric Department (Bid Specification #CA1-2014). Recommendation: (1) Find that approval of the proposed bid award issuance is not subject to the California Environmental Quality Act (“CEQA”) in accordance with Section 15273 because CEQA does not apply to “purchasing or leasing supplies, equipment or materials;” and that even if it were subject to CEQA, it would be exempt pursuant to 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment because the cable referenced will be used merely to replace existing older cable; and (2) Determine that the following companies were the lowest responsive and responsible bidders for bid specification #CA1-2014, relating to the purchase of medium voltage 15 KV rate underground cable. (a) OneSource (Southwire) for bid items 1, 2, 4, 5 and 6. (b) HD Supply Power Solutions, Ltd (General Cable) for bid item 3. (3) Authorize the Purchasing Department to issue purchase order contracts as follows: (a) OneSource (Southwire) for bid items 1, 2, 4, 5 and 6, in a grand total amount not to exceed $388,898. (b) HD Supply Power Solutions, Ltd (General Cable) for bid item 3, in a grand total amount not to exceed $59,640. Health and Environmental Control Department 17. May 2014 Monthly Report, to be received and filed. 18. Approval of the Renewal Agreement with SEAACA for Animal Control Services. Recommendation: (1) Find that 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 any effect on the environment; and (2) Authorize the City Administrator to execute a new three year agreement (with two optional one-year extensions) with the South East Area Animal Control Authority (SEAACA) to provide animal control services Special and Regular City Council Meeting Minutes June 17, 2014 Page 16 of 26 to the City on an as needed basis, provided the contract is in a form substantially similar to that attached to the staff report. The contract prohibits total expenditures during the maximum 5 year term to exceed $120,000. The contract is exempt from competitive bidding requirements pursuant to Vernon Municipal Code § 2.17.12(A)(5) because the contract is with SEACCA, a governmental entity. 19. Resolution No. 2014-34 - A Resolution of the City Council of the City of Vernon approving and ratifying the execution of an application for the 2014/2015 Hazardous Materials Emergency Preparedness Planning Grant. Recommendation: (1) Find that granting authority to submit and administer the funding application and related documents at issue constitute administrative activities that do not constitute a “project”, and 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 a significant effect on the environment; and (2) Through the resolution, ratify and approve the action of the Director of Health & Environmental Control in executing and filing an Application to the California Office of Emergency Services (Cal OES) for the 2014/2015 Hazardous Materials Emergency Preparedness Planning Grant and authorizing the Director of Health & Environmental Control to (1) execute any and all documents, including but not limited to, applications and agreements necessary for the purposes of securing funds and (2) to receive and spend the funds for the Hazardous Materials Emergency Preparedness Planning Grant. 20. Resolution No. 2014-35 - A Resolution of the City Council of the City of Vernon approving and authorizing the execution of an application for the 2014/2015 Used Oil Payment Program. Recommendation: (1) Find that granting authority to submit and administer the funding application and related documents at issue constitute administrative activities that do not constitute a “project”, and 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 a significant effect on the environment; and (2) Approve the resolution approving the execution of an application for the 2014/2015 Used Oil Payment Program and authorizing the Director of Health & Environmental Control to (1) submit the Application and Certification to the Department of Resources Recycling and Recovery “CalRecycle” for Used Oil Grant Funds for FY 2014/2015 (OPP5), (2) execute any and all documents, including but not limited to, applications and agreements necessary for the purposes of securing funds and (3) to receive and spend the funds for the Used Oil Payment Program. Special and Regular City Council Meeting Minutes June 17, 2014 Page 17 of 26 Police Department 21. Activity Log and Statistical Summary of Arrest and Activities for the period of May 16, through May 31, 2014, to be received and filed. Public Works, Water and Development Services Department 22. Building Department Report for the month of May 2014, to be received and filed. 23. Resolution No. 2014-36 - A Resolution of the City Council of the City of Vernon approving an amendment to the Mitigated Negative Declaration Resolution No. 2013-31 and approving a lot merger for the properties located at 4675 52nd Drive in the City of Vernon. Recommendation: (1) Amends the Mitigated Negative Declaration, Resolution No. 2013-31 (“MND”); and (2) As owners of the property: (a) Authorizes the Mayor to sign and notarize the “Application for a Request for a Voluntary Lot Merger and Waiver of Right of Hearing and Notice,” and all other necessary documents to merge the subject lots; and (b) Authorizes the Director of Public Works, Water & Development Services to execute a Certificate of Compliance for a Lot Merger for property development purposes, and all other necessary documents to merge the subject lots. 24. Bid Award 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 the Supply and Delivery of One New HAMM HDC VV Double Drum Asphalt Roller and One New Zieman Trailer 1150-E Tilt Type is exempt under the California Environmental Quality Act (“CEQA”) in accordance with California Code of Regulations, Title 14, Section 15061 (b)(3), which provides that CEQA only applies to projects that may have a significant effect on the environment and the proposed purchase is for equipment only and it can be seen with certainty that there is no possibility that said purchase may have a significant effect on the environment; and (2) Accept the bid from NIXON-EGLI EQUIPMENT COMPANY, as the lowest responsive bidder, not to exceed $52,951.11, for the Supply and Delivery of One New HAMM HD10C VV Double Drum Asphalt Roller and One New Zieman Trailer 1150-E Tilt Type. NIXON-EGLI EQUIPMENT COMPANY was the only bid received in response to the solicitation for bids. 25. Authorize the Bid Award for Contract No. CS-0454: To Supply and Deliver Liquid Sodium Hypochlorite (12.5%). Recommendation: (1) Find the proposed service, to supply and deliver liquid sodium hypochlorite (12.5%), is exempt under Special and Regular City Council Meeting Minutes June 17, 2014 Page 18 of 26 the California Environmental Quality Act (“CEQA”) in accordance with California Code of Regulations, Title 14, Section 15061 (b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and in the alternative, the project is categorically exempt from CEQA pursuant to California Code of Regulations, Title 14, Sections 15061(b)(2) and 15301 which includes the operation and maintenance of the City’s existing production wells and such exemption is not barred by any exception set forth in Section 15300.2; and (2) Accept the bid from Brenntag Pacific, Inc., as the lowest responsive and responsible bidder and enter into a three year contract, not to exceed $99,370.20, to supply and deliver liquid sodium hypochlorite, Contract No. CS-0454. 26. Amendment No. 3 to the existing Services Agreement between the City of Vernon and Consolidated Disposal Service, LLC for Refuse Collection, Recycling, and Disposal Services. Recommendation: (1) Find that Amendment No. 3 extending the existing Services Agreement between the City of Vernon and Consolidated Disposal Service, LLC, for a period of three months, for Refuse Collection, Recycling and Disposal Services, is exempt under the California Environmental Quality Act (“CEQA”) in accordance with (a) CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment and (b) Guidelines Section 15301, because the proposed Amendment No. 3 involves the maintenance of existing facilities with no expansion of the existing use; and (2) Approve Amendment No. 3 extending the existing Services Agreement between the City of Vernon and Consolidated Disposal Service, LLC, for a period of three months, for Refuse Collection, Recycling and Disposal Services. As revised, the contract would expire, effective September 30, 2014. 27. Authorize the Rejection of all Bids and Rebid for Refuse Collection, Recycling and Disposal Services, Contract No. CS-0448. Recommendation: (1) Find that the rejection of all bid proposals received on June 3, 2014, per Contract CS-0448 for Refuse Collection, Recycling and Disposal Services, is not subject to the California Environmental Quality Act (“CEQA”) because, under Guidelines § 15270 CEQA does not apply to projects which a city disapproves; and even if it were subject to CEQA, it would exempt in accordance with (a) Section 15061 (b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment and (b) Section 15301, because the proposed rejection of bid proposals has no impact on the maintenance of existing facilities; and (2) Approve the rejection of all bid proposals, per Contract CS-0448 for Refuse Collection, Recycling and Disposal Services; and authorize staff to re-advertise and solicit bids for Refuse Collection, Recycling and Special and Regular City Council Meeting Minutes June 17, 2014 Page 19 of 26 Disposal Services based on a form that is substantially similar to the form previously approved, but with minor technical clarifications. NEW BUSINESS City Administration Department 1. Resolution No. 2014-37 - A Resolution of the City Council of the City of Vernon amending Resolution No. 9542 by amending Section 10.2 and adding Section 10.5 to said resolution respecting vacation policies for employees of the City of Vernon and repealing all resolutions in conflict therewith. 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) Contingent upon City Council adoption of the Fiscal Year 2014-2015 budget, adopt the resolution amending Resolution No. 9542 to amend section 10.2 and add section 10.5 to said resolution, effective June 29, 2014, to (1) provide sixty (60) hours of Administrative Leave for Mid-Management employees who are designated as exempt from overtime in accordance with the Fair Labor Standards Act and (2) provide all newly hired Mid-Management and Executive Management staff exempt employees administrative leave on a quarterly pro-rata basis. City Administrator Mark Whitworth reported that as part of the classification and compensation study certain classifications were designated as exempt positions. Those exempt are a group of people in line with others that receive administrative leave time. It is appropriate for those exempt to also receive the same benefit. Human Resources Director Teresa McAllister reported on the benefit. It is currently being provided to management; the proposed will make it available to those in mid-management as well. McAllister additionally explained that the proposed will amend the policy so that the administrative leave will be applied on a prorated basis. She advised that there is no additional cost to the City. If the benefit is not used, employees lose it. It was moved by Maisano and seconded by Martinez to approve Resolution No. 2014-37. Motion carried, 5-0. Finance Department 2. Consideration of City Investment Policy, and Staff Authority to Deposit and Withdraw Funds from Local Agency Investment Fund (LAIF) and Los Angeles County Pooled Investment Fund (LACPIF): Recommendation: (1) It is recommended that the City Council approve the following three resolutions, each of which includes a Special and Regular City Council Meeting Minutes June 17, 2014 Page 20 of 26 finding that relevant approvals are exempt from the California Environmental Quality Act (“CEQA”) pursuant to Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment: 1. Resolution No. 2014-38 - A Resolution of the City Council of the City of Vernon adopting an annual statement of investment policy for fiscal year 2014-2015 and delegating investment authority to the Finance Director/City Treasurer. - The investment policy requires annual approval by City Council even though no changes and updates are proposed. Such approval is to be performed on an annual basis. 2. Resolution No. 2014-39 - A Resolution of the City Council of the City of Vernon authorizing the investment of City monies from any City fund in the local investment fund in the state treasury. - Supersede Resolution No. 5244, currently on file with the Local Agency Investment Fund (LAIF), which would add the following officers as authorized personnel to deposit and withdrawal City monies on behalf of the City for investment purposes: Finance Director, Assistant Finance Director, City Treasurer, and Deputy City Treasurer, or their successors. 3. Resolution No. 2014-40 - A Resolution of the City Council of the City of Vernon authorizing and requesting the investment of excess funds in the Los Angeles County Treasury Pool. - Approve participation in the Los Angeles County Pooled Investment Fund (LACPIF) as an investment alternative. Finance Director William Fox explained that the proposed has three components related to the City’s annual investment policy. The first recommendation is required and will be presented to the City Council annually. Fox noted that the City’s CPA reviewed the policy and made no recommended changes. The proposed complies with standard requirements. The second recommendation expands the authority for the LAIF to the Assistant Finance Director and Deputy City Treasurer as the current authority is limited to the Finance Director/Treasurer. Fox explained that this allows for flexibility in his absence. The third recommendation is to participate in the pool fund. The City currently does not participate, but staff believes it would be advantageous to participate as the returns are slightly better. The proposed is open to municipalities and special districts within the County. It was moved by Ybarra and seconded by Maisano to approve Resolution No. 2014-38, Resolution No. 2014-39, and Resolution No. 2014-40. Motion carried, 5-0. Gas and Electric Department 3. Approval of the Astoria 2 Solar Project Power Sales Agreement between the City of Vernon and the Southern California Public Power Authority. Special and Regular City Council Meeting Minutes June 17, 2014 Page 21 of 26 Recommendation: (1) Find that (a) the requested approval is not a “project” subject to the California Environmental Quality Act (“CEQA”) under Guidelines section 15378 because it involves the administrative activity of purchasing power; and (b) even if this approval were a “project” subject to CEQA, the approval requested is exempt 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 because purchasing power is purely a financial transaction, and any construction that may occur by a private party in the future in reliance on this approval would be subject to CEQA review by another governmental agency at that time when actual details of any physical proposal would be more than speculative; and (2) Authorize the Director of Gas and Electric to approve and execute the Astoria 2 Power Sales Agreement between the City of Vernon (“City”) and the Southern California Public Power Authority (“SCPPA”) in substantially the same form as attached to the staff report, for the purpose of purchasing solar power with associated green attributes in compliance with the Renewable Resources Procurement Plan and Enforcement Program in force at the City. The terms include the initial purchase of 20 megawatts of solar power beginning with the project commercial operation date and increased to 30 megawatts commencing January 1, 2022. (3) Find that approval of the power sales agreement complies with the competitive bidding requirements of the Vernon Municipal Code in that: (a) Vernon Municipal Code § 2.17.12(A)(6) exempts this contract from the competitive bidding requirements because it is a “contract for the acquisition, sale or transmission of electrical power” and it would be commercially unreasonable to procure the power through standard bidding or request for proposal procedures; and (b) this contract is between SCPPA (a joint powers authority) and Vernon, and Vernon Municipal Code 2.17.12(A)(5) exempt this contract and all other “contracts with other governmental entities or their contractors for labor, materials or supplies”. Further find that approval of this contract is consistent with the purposes of the city’s purchasing regulations because SCPPA conducted a competitive process and received approximately 220 proposals, of which, the Astoria 2 Project was the lowest priced project for projects under 100 megawatts, and the project is scheduled to begin commercial operation in 2017. Director of Gas and Electric Carlos Fandino explained that the proposed is a joint solar power venture with the Southern California Public Power Authority (“SCPPA”). Fandino explained the need to meet renewable portfolio standards (“RPS”); the requirement is that by 2020, 33% of all of Vernon’s power must come from renewable energy sources. The City is looking at different projects to meet the requirements. Special and Regular City Council Meeting Minutes June 17, 2014 Page 22 of 26 Fandino advised that the project could be a substantial savings and could create a discount on the RPS component. Fandino reported on the potential load increase for the renewable source in 2020. Fandino explained that it is a fixed price contract that will commence in 2017. The City will only incur costs for actual renewable energy, there is no initial cost. In response to Councilmember Ybarra, Fandino advised that the 20 megawatts that are to be accessible through the project represent approximately 10% of the required 33% RPS requirement. It was moved by Davis and seconded by Maisano to approve the Astoria 2 Solar Project Power Sales Agreement with Southern California Public Power Authority. Motion carried, 5-0. Public Works, Water and Development Services Department 4. Authorization to submit the Los Angeles River Upper Reach 2 Draft Watershed Management Program Plan and Draft Coordinated Integrated Monitoring Program Plan. Recommendation: (1) Find that this action is exempt under the California Environmental Quality Act (“CEQA”) as follows: (a) The authorization to submit the draft Watershed Management Program (WMP) Plan and draft Coordinated Integrated Monitoring Program (CIMP) Plan is exempt from CEQA pursuant to CEQA Guidelines Section 15308 in that the authorization to submit the draft WMP and CIMP Plans is an action taken by the City in its role as a regulatory agency authorized by state regulation and is intended to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. No construction activities or relaxation of standards allowing environmental degradation are proposed in conjunction with the authorization to submit the draft WMP and CIMP Plans, and any possible projects are purely speculative in nature; and (b) The WMP and draft CIMP Plan are subject to the approval of the Regional Water Quality Control Board, which Board will conduct any necessary environmental review of the documents before any final approval; and (c) The authorization to submit the draft WMP and CIMP Plans is covered by the general rule set forth in CEQA Guidelines Section 15061(b)(3) which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Here, the authorization to submit the draft WMP and CIMP Plans involves procedures for the protection of the environment and has no significant adverse effect on the environment; and (2) Authorize City staff to submit the draft WMP and CIMP Plans to the California Regional Water Quality Control Board, Los Angeles Region (Regional Board) to comply Special and Regular City Council Meeting Minutes June 17, 2014 Page 23 of 26 with the municipal National Pollutant Discharge Elimination System (NPDES) Permit. At a later date, staff will submit the final Watershed Management Program Plan and final Coordinated Integrated Monitoring Plan to the City Council for adoption. Director of Public Works, Water and Development Services Kevin Wilson introduced Dr. Gerald Green of the CWE Corporation. Green conducted a presentation on the WMP and CIMP Plans and how they will impact the City. Green provided a background to the regulation and on the next steps in the process. Mayor McCormick commented that it is unfortunate that the business community representatives left the meeting early as the WMP and CIMP are a costly challenge to the City that is out of the City’s control. It was moved by Maisano and seconded by Ybarra to authorize the submission of the Los Angeles River Upper Reach 2 Draft Watershed Management Program Plan and Draft Coordinated Integrated Monitoring Program Plan. Motion carried, 5-0. ORAL REPORTS Police Chief Daniel Calleros reported on an arrest for misdemeanor vandalism and reckless driving that occurred on June 6, 2014. Calleros advised that special enforcement team will be conducting traffic enforcement operations during the weekends to deter the reckless driving observed in the City. On June 8, 2014, officers were flagged down by a victim who had just been stabbed. After a foot chase, officers detained the suspect and located the weapon. The suspect was transferred to the Huntington Park Police Department as the incident had occurred within its jurisdiction. Calleros reported that accusation of a kidnap and rape are being investigated. On June 12, 2014, the female victim reported that she was kidnapped in Indio and then raped. The alleged assailant has been identified. On Saturday June 14, 2014, members of the People for the Ethical Treatment of Animals (“PETA”) conducted a demonstration in front of Farmer John. The demonstration was peaceful with no incidents. Calleros reported that the Vernon Police Department submitted a proposal to the City of Maywood for police services. He advised that in addition to Vernon, the Los Angeles County Sherriff’s Department and the City of Bell also submitted proposals. Calleros opined that Vernon’s proposal is very competitive. Calleros reported vandalism in the area of 5000 Pacific Avenue that resulted in an arrest. Fire Chief Michael Wilson announced that the CERT Class has begun. He advised that staff is working on its transition to the Telestaff system for payroll processing. He announced that the firefighter reserve recruitment interviews are currently underway. The Department has seen good success through its reserve program. The training focus for the month of June is Special and Regular City Council Meeting Minutes June 17, 2014 Page 24 of 26 auto extrication; KIA Motors generously donated vehicles for training purposes. Wilson reported on the Crews response to a motorcycle accident that occurred on June 16, 2014 on the north bound on-ramp to the 710 Freeway near Atlantic Boulevard. On June 16, 2014, Crews responded to U.S. Healthworks in Vernon; a man was severely injured while working on machinery at a local business. On June 17, 2014, Crews responded to the City of Compton to assist in the identification of chemicals found at a drug lab. Director of Public Works, Water, and Development Services Kevin Wilson provided an update on the Vernon Village Park housing project, advising that the project is progressing. Wilson reported that many have lost confidence in the Central Basin Municipal Water District’s Board. Wilson advised that no official action has been taken on the mater. Director of Gas and Electric Carlos Fandino reported on a power outage that occurred on June 8, 2014; Fandino advised that the cause of the outage is still under investigation. Finance Director William Fox advised that the preliminary phase of the annual financial audit has concluded. There were no findings to report; he explained that this is good for the City. The audit will continue after the end of the current fiscal year. Fox advised that the budget process is extremely complicated; staff has identified that the process can be streamlined through the use of the EDEN system budget module. Currently, staff uses an Excel spreadsheet which can result in mistakes. The module can be integrated into the financial reporting system and would increase accuracy. Fox reported that city staff provided assistance to the City of Maywood to supplement its skeletal accounting group. Fox advised that in trying to be a good neighbor, the City was happy to assist. Director of Health and Environmental Control Leonard Grossberg reported on continued discussions with the Department of Toxic Substances Control on the closure at Thermador. Grossberg announced the cancellation of the June 18, 2014 Green Vernon Commission meeting. Human Resources Director Teresa McAllister announced the customer service training on June 25, 2014. Economic Development Manager/ Successor Agency Staff Alex Kung announced that the Oversight Board to the Successor Agency of the Redevelopment Agency meeting scheduled to be held on June 5, 2014, was cancelled due to lack of a quorum. The regular Oversight Board meetings will continue to be cancelled until September. Deputy City Administrator Kristen Enomoto reported on the Vernon Housing Commission meeting held June 11, 2014. There were 25 applicants for the housing lottery; however, there are no unit vacancies. Enomoto reported that Solari Enterprises was contracted for standby and consulting services. The housing Special and Regular City Council Meeting Minutes June 17, 2014 Page 25 of 26 management will be transitioned to the Finance Department with support for maintenance and repair services from the Public Works Department. City Administrator Mark Whitworth advised that he and Human Resources Director held an employee informational meeting with those in the confidential and management group. The Human Resources Director was also given instructions to negotiate an agreement for the new City Attorney. Whitworth advised that on July 1, 2014, the candidates for the CommUNITY Grant Committee will be presented to the City Council for appointment. Additionally, the ordinance establishing the Business and Industry Commission will be introduced. The new Vernon Quarterly is out. Whitworth reported on a meeting with Exide Technologies’ (”Exide”) Vice President of Environmental Health and Safety. Exide is working on addressing all concerns. CLOSED SESSION - REVISITED At 11:53 a.m., it was moved by Davis and seconded by Martinez to go into closed session to continue discussions on the items listed under closed session. Motion carried, 5-0. 1. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Initiation of litigation pursuant to Gov’t Code Section 54956.9(d)(4): 1 potential case. 2. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Agency Designated Representatives: Mark Whitworth, Teresa McAllister, and Paul Coble Employee Organizations: Vernon Police Officers’ Benefit Association, Vernon Firemen's Association, Vernon Fire Management Association, Teamsters Local 911, and International Brotherhood of Electric Workers Local 47. At 12:07 p.m., it was moved by Maisano and seconded by Ybarra to exit closed session. Motion carried, 5-0. Concerning item 1 under closed session, Deputy City Attorney Scott Porter reported that the City Council authorized staff to file a claim; the defendant and the other particulars will be disclosed to any person upon inquiry once the claim has been filed. Deputy City Attorney Zaynah Moussa announced that there is no reportable action concerning the closed session matter on labor negotiations. / / / / / / / / / Special and Regular City Council Meeting Minutes June 17, 2014 Page 26 of 26 With no further business, at 12:08 p.m., Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Ana Barcia Deputy City Clerk