2014-09-02 City Council Agenda PacketCalifornia Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda
items, including attachments, which are presented to the City Council in open session are available for public
inspection. They may be inspected during regular business hours in the City Clerk's Office at Vernon City Hall,
4305 Santa Fe Avenue; Vernon, California 90058, no appointment necessary, and on the City’s website at
www.cityofvernon.org.
Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to
participate in the meeting, please contact the City Clerk’s office at (323) 583-8811. Notification of at least 48
hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable
arrangements can be made to provide accessibility to the meeting or service.
Agenda
City of Vernon
Regular City Council Meeting
Tuesday, September 2, 2014, 9:00 a.m.
Council Chamber
4305 Santa Fe Avenue
Vernon, California
W. Michael McCormick, Mayor
William J. Davis, Mayor Pro-Tem
Richard J. Maisano, Council Member
Michael Ybarra, Council Member
Luz Martinez, Council Member
CALL TO ORDER & FLAG SALUTE
CHANGES TO THE AGENDA
PUBLIC COMMENT - At this time the public is encouraged to address the City Council on any matter that is
within the subject matter jurisdiction of the City Council. The public will also be given a chance to comment
on matters which are on the posted agenda during City Council deliberation on those specific matters.
PRESENTATIONS
1. Presentation by the Muscular Dystrophy Association (MDA) recognizing the Vernon
Firefighter’s participation in the 2014 Fill the Boot fundraising event.
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Regular City Council Meeting Agenda
September 2, 2014
Page 2 of 7
CONSENT CALENDAR - All matters listed on the Consent Calendar are to be approved with one motion.
Items may be removed from the Consent Calendar by any member of the Council. Those items removed will be
considered immediately after the Consent Calendar.
Claims Against the City – Received and Filed
2. None.
Minutes – To be Received and Filed
3. Minutes of the Regular City Council Meeting held August 19, 2014.
Warrant Registers
4. Approval of City Warrant Register No. 1407, totaling $319,642.79, which covers the period of
August 12, through August 25, 2014, and consists of the following:
a. Ratification of wire transfers totaling $56,533.67; and
b. Ratification of the issuance of early checks totaling $160,992.60; and
c. Authorization to issue pending checks totaling $102,116.52.
5. Approval of Light & Power Warrant Register No. 372, totaling $3,672,645.57, which covers the
period of August 12, through August 25, 2014, and consists of the following:
a. Ratification of wire transfers totaling $3,589,289.84; and
b. Ratification of the issuance of early checks totaling $43,882.09; and
c. Authorization to issue pending checks totaling $39,473.64.
6. Approval of Gas Warrant Register No. 160, totaling $716.91, which covers the period of August
12, through August 25, 2014, and consists of the following:
a. Ratification of the issuance of early checks totaling $500.00; and
b. Authorization to issue pending checks totaling $216.91.
City Administration Department
7. Exemption of Services Agreement with Vironex, Inc., from the Competitive Bidding
Requirements for Remediation Activities Conducted at 5119-5309 District Blvd.
Recommendation:
(1) Find that the City Administrator’s decision to award an agreement to Vironex, Inc., to conduct
remediation related services at the City owned property located at 5119-5309 District Blvd. was
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
Regular City Council Meeting Agenda
September 2, 2014
Page 3 of 7
(2) Ratify the City Administrator’s determination to exempt the services agreement with Vironex,
Inc., (“Vironex”) from the competitive bidding/selection process pursuant to Vernon Municipal
Code Sections 2.17.12(A)(3), 2.17.12(A)(10), and 2.17.12(B)(2).
Fire Department
8. Activity Report for the period of August 1, through August 15, 2014, to be received and filed.
Police Department
9. Activity Log and Statistical Summary of Arrest and Activities for the period of August 1,
through August 15, 2014, to be received and filed.
NEW BUSINESS
City Administration Department
10. A Resolution of the City Council of the City of Vernon amending Resolution No. 2012-173
regarding the reimbursement of certain costs incurred by current Vernon City personnel in
connection with a review by the California Public Employees’ Retirement System
(“CALPERS”).
Recommendation:
(1) Find that the approval of the resolution proposed in the staff report 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 to authorize up to an additional $30,000 in reimbursable legal expenses for
Michael McCormick relating to his ongoing appeal of CalPERS’ determination arising out of the
Report findings (CalPERS Case No. 2013-0899).
11. 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. 12).
Recommendation:
(1) Find that approval of the proposed resolution in the staff report is exempt under the California
Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an effect on the environment; and
(2) Approve and adopt the resolution amending Exhibit A – Classification and Compensation Plan,
of the Citywide Personnel and Salary Resolution, to be effective September 2, 2014, to add the
new job classification of Business License Clerk with salary grade 4230 at $2,539 – $4,201 per
month - Teamsters Miscellaneous Group, update the salary grade for City Attorney to E47, and
update Facilities Maintenance Worker Job Code to 7720.
Regular City Council Meeting Agenda
September 2, 2014
Page 4 of 7
12. 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 International
Brotherhood of Electrical Workers Local 47 for the period of July 1, 2014 through June 30,
2016.
Recommendation:
(1) Find that approval of the resolution proposed in the staff report 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 proposed resolution approving Amendment No. 1 to the 2014-2016 Memorandum of
Understanding by and between the City of Vernon and the International Brotherhood of
Electrical Workers Local 47 as it relates to the DuPont work schedule.
City Attorney Department
13. Approval of an attorney services agreement between the City of Vernon and Liebert Cassidy
Whitmore for personnel and labor law attorney services.
Recommendation:
(1) Find that approval of the proposed Attorney Services Agreement with Liebert Cassidy Whitmore
is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA
Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may
have an effect on the environment; and
(2) Authorize the City Administrator to enter into an Attorney Services Agreement between the City
of Vernon and Liebert Cassidy Whitmore, in substantially the same form as submitted herewith,
for a one-year period in an amount not to exceed $150,000.00.
Gas and Electric Department
14. A Resolution of the City Council of the City of Vernon establishing energy procurement targets
of zero megawatt hours by December 31, 2016, and December 31, 2020.
Recommendation:
(1) Find that the approval requested in the staff report (a) is not a “project” under the California
Environmental Quality Act (“CEQA”), because the proposal is to maintain the status quo; and
(b) even if it were a project, it would be exempt under 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 adopt energy storage procurement targets of zero megawatt hours by
the end of 2016 and 2020 on the grounds that procurement of energy storage systems is not cost-
effective.
15. Approval of a services agreement with Power Engineers, Inc., in response to the Request for
Proposals for Distributed Generation Impact Study.
Regular City Council Meeting Agenda
September 2, 2014
Page 5 of 7
Recommendation:
(1) Find that awarding the agreement as outlined in the staff report is exempt under the California
Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an effect on the environment; and
(2) Approve and authorize the execution of a services agreement with Power Engineers, Inc.
(“PEI”), for services regarding a distributed generation impact study, in substantially the same
form as submitted with the staff report, for a grand total compensation amount not-to-exceed
$218,780.00 over the one year term of the agreement.
Public Works, Water and Development Services Department
16. Contract No. CS-0025 to Purchase Slurry Material for the Citywide Slurry Seal, Phase III Project.
Recommendation:
(1) Find that the approval of the proposed Citywide Slurry Seal, Phase III Project is exempt under
the California Environmental Quality Act (“CEQA”) in accordance with Section 15301, Existing
Facilities, part (c), existing highways and streets; and
(2) Authorize the City Administrator to approve an agreement with Petrochem Manufacturing, Inc.
for the Material and Delivery for the Citywide Slurry Seal Phase III Project, Contract CS-0025
provided that the contract is substantially similar to the form included with the staff report, and
includes a not to exceed amount of $ 138,000.00. It is further recommended that the City
Council find that awarding the contract is exempt from Competitive Bidding pursuant to Vernon
Municipal Code § 2.17.12(A)(5)(b), because it is a contract for supplies with a vendor that
provided the same supplies to the City of Los Angeles at the same price reflected in the contract.
17. Bid Award for Contract No. CS-0448 - Refuse Collection, Recycling and Disposal Services.
Recommendation:
(1) Find that entering into the proposed contract 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) Section 15301, because the proposed
service is simply the maintenance of existing facilities by removing refuse from those facilities
and there would be no expansion of use beyond that currently existing; and
(2) Accept the bid from Haul-Away Rubbish Service Company, Inc., as the lowest responsive and
responsible bidder and authorize the City Administrator to enter into a contract with Haul-Away
Rubbish Service Company, Inc., provided that the contract is approved by the City Attorney and
is substantially similar to the attached Labor and Materials Contract submitted with the staff
report. The contract would be for a three (3) year period at an amount not to exceed
$120,000.00, for Refuse Collection, Recycling and Disposal Services, Contract No. CS-0448.
18. Bid Award for Contract No. CS-0487: Labor and Equipment for Placement of Type II (REAS) Slurry
Seal for the Citywide Rubberized Slurry Seal Phase III Project.
Regular City Council Meeting Agenda
September 2, 2014
Page 6 of 7
Recommendation:
(1) Find that the approval of the proposed Citywide Slurry Seal, Phase III Project is exempt under
the California Environmental Quality Act (“CEQA”) in accordance with Section 15301, Existing
Facilities, part (c), existing highways and streets; and
(2) Accept the bid from All American Asphalt as the lowest responsive and responsible bidder and
authorize the City Administrator to enter into a contract in a form substantially similar to the
contract attached to the staff report, in an amount not to exceed $66,123.00, for the Labor and
Equipment for Placement of Type II, Rubberized Emulsion Aggregate Slurry (“REAS”) Seal,
Contract No. CS-0487. Further authorize a contingency of $6,612.00 in the event of an
unexpected changed condition in the project and grant authority to the City Administrator to
issue a change order for an amount up to the contingency amount.
ORDINANCES
19. Ordinance No. 1225 - An Ordinance of the City Council of the City of Vernon amending Section
2.174(a)(3) of the Vernon Municipal Code to modify the qualifications of one of the appointment
categories for the Vernon Business and Industry Commission. (second reading)
Recommendation:
(1) Find that approval, and subsequent adoption, of the proposed ordinance 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 proposed ordinance to modify the qualifications of the “Labor” appointment category
for the Vernon Business and Industry Commission
ORAL REPORTS
20. City Administrator Reports – brief reports on activities and other brief announcements by the City
Administrator and Department Heads.
21. City Council Reports – brief report on activities, announcements, or directives to staff.
CLOSED SESSION
1. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Agency Designated Representatives: Mark Whitworth and Teresa McAllister
Employee Organization: Vernon Police Officers’ Benefit Association
Regular City Council Meeting Agenda
September 2, 2014
Page 7 of 7
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (7)
Government Code Section 54956.9(d)(1)
In the Matter of the Calculation of Final Compensation of Bruce Malkenhorst, Sr.
Office of Administrative Hearings Case No. 2013080917
CalPERS Case No. 2012-0671
Bruce Malkenhorst, Sr. v. City of Vernon, et al.
Los Angeles Superior Court Case No. BC516321
Bruce Malkenhorst, Sr. v. California Public Employees’ Retirement System, Board of Administration
of California Public Employees’ Retirement System, et al.
California Court of Appeal Case No. G047959
Bruce Malkenhorst, Sr. v. State of California, et al.
United States District Court Case No. SACV14-00269
Jurupa Avenue Limited Partnership v. City of Vernon, et al.
Los Angeles Superior Court Case No. BC516913
Ortiz v. Los Angeles County Metropolitan Transportation Authority, et al.
Los Angeles County Superior Court Case No. BC525587
AFA Investment Inc., et al. vs. City of Vernon Utilities
U.S. Bankruptcy Court for the District of Delaware, Case No. 14-50130
ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was
posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe
Avenue, Vernon, California, and on the City’s website, not less than 72 hours prior to the meeting set forth on
this agenda. Dated this 28th day of August 2014.
By: ________________________________
Ana Barcia
Deputy City Clerk
MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE
CITY OF VERNON HELD TUESDAY, AUGUST 19, 2014, IN THE
COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305
SANTA FE AVENUE, VERNON, CALIFORNIA
MEMBERS PRESENT: McCormick, Davis, Maisano, Martinez, and Ybarra
MEMBERS ABSENT: None
The meeting 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. The public will also be
given an opportunity to comment on matters on the posted agenda during Council deliberation.
Abraham Hakimi owner of Princess Paper expressed his concerns regarding new fire inspection
related fees and questioned the billing process. He is concerned that it is no longer
advantageous to conduct business in Vernon, and that the businesses’ concerns are not being
heard.
PRESENTATIONS
1. Personnel Matters - Service Pin Awards
July 2014 Anniversary
Employee Name Job Title Years
1. Sergio Canales Assistant Planner 15
2. Jeremy Cross Police Officer 10
3. Paul Hallenberg Firefighter/Paramedic 10
4. Corey Hernandez Firefighter 10
5. Jonathan Sudduth Firefighter/Paramedic 10
6. Jonathan Van Oeffelen Firefighter 10
7. Andrei Yermakov Information Technology Manager 5
Mayor McCormick presented service pins to those in attendance; the City council recognized
those that were not in attendance.
2. Present certificates of appreciation to former members of the Ad Hoc Advisory
Committee for Electric Rates and the Ad Hoc Advisory Committee for Business
Development in recognition of their service to the City of Vernon.
Mayor McCormick presented certificates of appreciation to former Committee Members who
were in attendance at that time. Mayor Pro-Tem Davis presented Mayor McCormick with his
certificate of appreciation.
3. Presentation by Independent Reform Monitor John Van De Kamp on his July 31,
2014 Report on the City of Vernon.
Regular City Council Meeting Minutes
August 19, 2014
Page 2 of 8
Independent Reform Monitor John Van de Kamp reported on his July 31, 2014, Report. He
highlighted the City’s accomplishments during the last six months. As he summarized the
report, Van de Kamp reported on his recommendations. He indicated the need to get residents
involved and knowledgeable about City government as there will soon be a need for successors
with the establishment of term limits.
Each of the Council Members were asked by Van de Kamp to comment on items that are
important to them and on their priorities for the City.
In response, Councilmember Ybarra advised that his concern is the City’s finances. Ensuring
that costs are controlled, funds are spent wisely, fees are properly communicated and explained,
and that efforts are being made to keep costs to the businesses down.
In response to Van de Kamp, Maisano advised that it is important maintaining an open dialog
with the business community in order to mitigate dissatisfaction. He is concerned about the
City’s infrastructure and need for financial stability.
Van de Kamp acknowledged the public comment heard earlier. The business community has a
right to express their concerns and City should respond back, further explain and provide
information.
In response to Van de Kamp, Mayor McCormick advised that his focus is the City’s financial
stability, reform efforts and remaining business friendly.
In response to Van de Kamp, Mayor Pro-Tem Davis expressed his desire to encouraging
residents to get involved in Vernon government and the importance of welcoming new residents
to the City.
In response to Van de Kamp, Councilmember Martinez expressed her desire for the City to
continue on a good path, and continue with reforms. As part of her learning process, as a fairly
new councilmember, Martinez wants to ensure that the City remains business friendly.
4. Financial Update Presentation by the Finance Director on 2014 Fiscal Year End
Financial results and investment and policy discussion.
Finance Director William Fox presented a financial update of the City’s financial condition. Fox
discussed four (4) major topics with respect to the 2014 financial results; investment portfolio
highlights, investments derivatives contracts, accomplishments and future challenges.
2. Revisited - Present certificates of appreciation to former members of the Ad Hoc
Advisory Committee for Electric Rates and the Ad Hoc Advisory Committee for
Business Development in recognition of their service to the City of Vernon.
Mayor McCormick continued the presentation of certificates of appreciation to former member
of the Ad Hoc Advisory Committee for Electric Rates and the Ad Hoc Advisory Committee for
Business Development for members that were not recognized during the earlier presentation but
are now in attendance. A special recognition was presented to former Electric Rates Committee
Chairperson Greg Longstreet for his leadership and dedication to the Committee.
Former Chairperson Longstreet thanked the City advising that the Vernon Chamber of
Commerce has strong leadership that will help “carry the torch.”
CONSENT CALENDAR
It was moved by Maisano and seconded by Davis to approve all matters listed under the Consent
Calendar under one motion. Motion carried, 5-0.
Claims Against the City – Received and Filed
5. None.
Regular City Council Meeting Minutes
August 19, 2014
Page 3 of 8
Minutes – To be Received and Filed
6. Minutes of the Regular City Council Meeting held August 5, 2014.
Warrant Registers
7. Ratification of City Warrant Register No. 1404 to record voided Check No. 344667
in the amount of $3,059.00.
8. Ratification of Light & Power Warrant Register No. 362 to record voided Check
No. 510658 in the amount of $554.63.
9. Approval of City Payroll Warrant Register No. 698, totaling $2,758,329.39, which
covers the period of July 1, through July 31, 2014 and consists of the following:
a. Ratification of direct deposits, checks and taxes totaling $2,082,448.59; and
b. Checks and electronic fund transfers totaling $675,880.80.
10. Approval of City Warrant Register No. 1406, totaling $1,751,854.25, which covers
the period of July 29, through August 11, 2014, and consists of the following:
a. Ratification of wire transfers totaling $1,375,213.49; and
b. Ratification of the issuance of early checks totaling $170,445.75; and
c. Authorization to issue pending checks totaling $206,195.01.
11. Approval of Light & Power Warrant Register No. 371, totaling $1,182,383.66,
which covers the period of July 29, through August 11, 2014, and consists of the
following:
a. Ratification of wire transfers totaling $1,058,352.20; and
b. Ratification of the issuance of early checks totaling $123,330.42; and
c. Authorization to issue pending checks totaling $701.04.
12. Approval of Gas Warrant Register No.159, totaling $253,112.13, which covers the
period of July 29, through August 11, 2014, and consists of the following:
a. Ratification of wire transfers totaling $233,618.54; and
b. Ratification of the issuance of early checks totaling $19,307.89; and
c. Authorization to issue pending checks totaling $185.70.
City Administration Department
13. A Proclamation of the City Council of the City of Vernon declaring the month of
September 2014 as “Childhood Cancer Awareness Month”.
Fire Department
14. Activity Report for the period of July 16, through July 31, 2014, to be received and
filed.
Health and Environmental Control Department
15. July 2014 Monthly Report, to be received and filed.
Human Resources Department
16. Resolution No. 2014-52 - A Resolution of the City Council of the City of Vernon
approving the industrial disability retirement application of Steve Wiles, a local
safety member formerly employed by the City Of Vernon (Government Code
Sections 21154 and 21156).
Regular City Council Meeting Minutes
August 19, 2014
Page 4 of 8
Recommendation:
(1) Find that approving an Industrial Disability Retirement Application 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) Re-consider the previous decision (Resolution No. 2014-04) denying an Industrial
Disability Retirement Application for Steve Wiles based on lack of medical
evidence, and based on a re-evaluation of this case, adopt the resolution approving
Mr. Wiles’ Industrial Disability Retirement Application as the findings and
determinations pertaining to Mr. Wiles’ Application, pursuant to Government
Code section 21156, based on further medical evidence that Mr. Wiles is
substantially incapacitated from the performance of his usual and customary
duties as a Police Officer for the City of Vernon.
Gas and Electric Department
17. Authorization to execute the Base Contract with ConocoPhillips for Sale and
Purchase of Natural Gas (the “NAESB Contract”).
Recommendation:
(1) Find that the approval requested in the staff report is exempt under the California
Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines
Section 15301(b), the general rule that CEQA only applies to projects that may
have an effect on the environment; and
(2) Authorize the Director of Gas & Electric to execute the North American Energy
Standards Board (“NAESB”) contract by and between the City of Vernon (“City”)
and ConocoPhillips in substantially the same form as attached to the staff report,
for the purpose of buying and selling natural gas to or from ConocoPhillips, in
compliance with the general terms established in the agreement. It is further
recommended that the City Council find that, pursuant to Vernon Municipal Code
§ 2.17.12(A)(6), competitive bidding is not required because these are contracts
for gas and/or electrical power for the city’s power utility, and that it would be
commercially unreasonable to procure the gas or electricity through standard
bidding or request for proposal procedures.
Police Department
18. Activity Log and Statistical Summary of Arrest and Activities for the period of
July 16, through July 31, 2014, to be received and filed.
19. Authorize the donation of unused First Aid Responder Kits to the Los Angeles
School Police Department (LASPD) Explorers Program.
Recommendation:
(1) Find that approval of the proposed donation to the Los Angeles School Police
Department (“LASPD”) Explorers Program 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 unused First Aid Responder Kits to the LASPD
Explorers Program that will be used for educational and training purposes. It is
further recommended that the City Council find that the donation serves a
municipal purpose.
Public Works, Water and Development Services Department
20. Building Department Report for the month of July 2014, to be received and filed.
21. Approve Encroachment License Agreement No. 417 for Univar USA, Inc.
Regular City Council Meeting Minutes
August 19, 2014
Page 5 of 8
Recommendation:
(1) Find that the approval of the Encroachment License Agreement 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, which have the potential for causing a significant effect on the
environment. Also find that this project is categorically exempt under CEQA
Guidelines Section 15308, “Actions by Regulatory Agencies for the Protection of
the Environment”; Class 8 consists of actions taken by Regulatory Agencies, as
authorized by state of local ordinance, to assure the maintenance, restoration,
enhancement, or protection of the environment where the regulatory process
involves procedures for protection of the environment; and
(2) Approve Encroachment License Agreement No. 417 between the City of Vernon
and Univar USA, Inc. in substantially the same form as submitted with the Staff
Report.
NEW BUSINESS
Police Department
22. Authorization to approve the Drug Enforcement Administration Agreement.
Recommendation:
(1) Find that the proposed agreement with the Drug Enforcement Administration for
continued participation in the Southwest Border Initiative (“SWBI”) taskforce as
detailed in the staff report is exempt under the California Environmental Quality
Act (“CEQA”). In accordance with Section 15061(b) (3), the general rule is that
CEQA only applies to projects that may have an effect on the environment; and
(2) Authorize the Police Chief to execute an agreement with the Drug Enforcement
Administration (“DEA”), in substantially the same form as submitted with the
Staff Report, for continued participation in the Southwest Border Initiative
taskforce.
Police Chief Daniel Calleros reported on the importance to execute the agreement with the Drug
Enforcement Administration as it is a benefit to the Department.
It was moved by Ybarra and seconded by Martinez to approve the authorization to execute the
Drug Enforcement Administration Agreement. Motion carried, 5-0
23. Authorize the Police Chief and City Administrator to execute the Federal Asset
Forfeiture Equitable Share Agreement and Annual Certification Report on behalf
of the City of Vernon.
Recommendation:
(1) Find that granting authority to execute and submit the agreement and related
documents at issue in the staff report constitute administrative activities that do
not constitute a “project” under the California Environmental Quality Act
(“CEQA”), and would also be exempt 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 Police Chief and City Administrator to execute the Federal
Equitable Share Agreement and Annual Certification Report on behalf of the City
of Vernon, in substantially the same form as submitted in the Staff Report.
Police Chief Daniel Calleros conducted the oral report on the recommendation.
It was moved by Davis and seconded by Maisano to approve the authorization to execute the
Federal Equitable Share Agreement and Annual Certification Report. Motion carried, 5-0
/ / /
/ / /
Regular City Council Meeting Minutes
August 19, 2014
Page 6 of 8
Public Works, Water, and Development Services Department
24. Authorization to permit Meta Housing to record the Maintenance Covenant &
Agreement for City owned property located at 4675 52nd Drive.
Recommendation:
(1) Find that authorizing the recordation of a Maintenance Covenant & Agreement by
META Housing is exempt from 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) Section 15307, because it is an action taken by the City (a
regulatory agency) to assure the “maintenance, restoration, or enhancement” of
natural resources and includes procedures to protect the environment; and
(2) Authorize staff to ensure that META Housing records a fully executed
“Maintenance Covenant & Agreement Regarding On-Site BMP Maintenance” for
the City owned property located at 4675 52nd Drive (Vernon Village Park).
Director of Public Works, Water and Development Services Kevin Wilson conducted the oral
report.
It was moved by Ybarra and seconded by Maisano to approve the authorization to permit META
Housing to record the Maintenance Covenant & Agreement for City owned property. Motion
carried, 5-0
25. Ratify the Advertisement for Contract No. CS-0487: Labor and Equipment for
Placement of Type II (REAS) Slurry Seal.
Recommendation:
(1) Find that the approval of the proposed Citywide Slurry Seal, Phase III Project is
exempt under the California Environmental Quality Act (“CEQA”) in accordance
with Section 15301, Existing Facilities, part (c), existing highways and streets;
and
(2) Ratify the advertising for bids for the Labor and Equipment for Placement of
Type II, Rubberized Emulsion Aggregate Slurry (REAS) Seal, Contract No. CS-
0487.
Director of Public Works, Water and Development Services Kevin Wilson explained the request
to ratify the bid request.
It was moved by Maisano and seconded by Martinez to ratify the advertisement for bids for
Contract CS-0487, labor and equipment. Motion carried, 5-0
ORDINANCES
26. Ordinance No. 1225 - An Ordinance of the City Council of the City of Vernon
amending Section 2.174(a)(3) of the Vernon Municipal Code to modify the
qualifications of one of the appointment categories for the Vernon Business and
Industry Commission. (First Reading)
Recommendation:
(1) Find that approval, and subsequent adoption, of the proposed ordinance 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) Hold the first reading of the ordinance to modify the qualifications of the “Labor”
appointment category for the Vernon Business and Industry Commission.
Mayor McCormick introduced the proposed ordinance by title.
Deputy City Administrator Kristen Enomoto provided the oral report on the proposed ordinance.
Regular City Council Meeting Minutes
August 19, 2014
Page 7 of 8
It was moved by Ybarra and seconded by Maisano to approve the first reading of Ordinance No.
1225. Motion carried, 5-0.
ORAL REPORTS
27. City Administrator Reports – brief reports on activities and other brief announcements
by the City Administrator and Department Heads.
28. City Council Reports – brief report on activities, announcements, or directives to staff.
Police Chief Daniel Calleros reported on officers’ responses to recent incidents. Calleros
announced the Farm Animal Rights Movements upcoming demonstration and reported on the
donation of unused First Aid responder rescue bags to the Los Angeles School Police Explorers
Program.
Captain Michael Gillman reported on vandalism. Mayor Pro-Tem Davis and Councilmember
Ybarra reported on vandalism they have observed within the City.
In response to Mr. Hakimi’s public comment, Fire Chief Michael Wilson clarified and explained
the fee schedule and the department’s intent to communicate the information.
Wilson reported on the firefighter recruitment process, recent Fire Department activities,
training, responses to incidents, and District Attorney’s notification requirements for certain
types of incidents.
In response to Independent Reform Monitor John Van de Kamp’s concerns, Chief Wilson
clarified Mr. Hakimi’s concerns and explained how fees are calculated.
Van de Kamp commented on the benefit to the District Attorney’s involvement in certain
incidents response.
Director of Public Works, Water and Development Services Kevin Wilson provided an update
on the Fruitland capital improvement project and the new housing development project.
Director of Gas and Electric Carlos Fandino provided an update on the power outage at U.S.
Growers, and reported on a power pole copper theft incident. Fandino reported on regulatory
issues impacting the enterprise including the implementation of AB2514 for energy storage, the
increase to renewable portfolio standards for publicly owned utilities, pending SB1139, and the
Environmental Protection Agency’s proposal to reduce carbon pollution from power plants.
Finance Director William Fox on the ongoing audit of the financial statement for fiscal year
2014, and reported on the IT assessment and risk audit.
Senior Human Resources Analyst Lisette Michel provided an update on the Firefighter
recruitment, and announced upcoming employee events and activities.
Economic Development Manager/Successor Agency Staff Alex Kung announced the September
4, 2014 Oversight Board to the Successor Agency meeting. Kung reported on efforts to continue
to be business friendly. He noted a potential hiring and training tax credit that could potentially
be applicable to Vernon businesses.
Senior Strategic Policy Advisor and Director of Communications Advisor Fred MacFarlane
provided an update on the grand opening of the artificial turf soccer field at Salt Lake Park on
September 6, 2014.
City Administrator Mark Whitworth reported on his and staff’s attendance to various community
events. City Administration will be meeting with California Consulting to receive grant status
updates.
Regular City Council Meeting Minutes
August 19, 2014
Page 8 of 8
CLOSED SESSION
With no public comment on the closed session item, at 11:26 a.m., it was moved by Maisano and
seconded by Davis to go into closed session to discuss the agendized item. Motion carried, 5-0.
29. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS
Government Code Section 54957.6
Agency Designated Representatives: Mark Whitworth and Teresa McAllister
Employee Organizations: Vernon Police Officers’ Benefit Association
At 11:31 a.m., the Council exited closed session. City Attorney Hema Patel announced that
there is no reportable action.
With no further business, at 11:31 a.m., Mayor McCormick adjourned the meeting.
________________________
W. Michael McCormick
Mayor
ATTEST:
_________________________
Ana Barcia
Deputy City Clerk
.e"{r ffir-
$:.h'* sf.-fl F REPORT
CITY ADMINISTRATION
DATE:
TO:
F'ROM:
RE:
September 212014
Honorable Mayor and City Council
Mark C. Whitworth, City Administrator
Exemption of Services Agreement with
Bidding Requirements for Remediation
District BIvd.
Inc., from the
Activities Conducted
, Competitive
at 5119-5309
Recommendations
It is recommended that the City Council:
l. Find that the City Administrator's decision to award an agreement to Vironex, Inc., to
conduct remediation related services at the City owned property located at 51 19-5309
District Blvd. was exempt from the Califomia 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. Ratiff the City Administrator's determination to exempt the services agreement with
Vironex, Inc., ("Vironex") from the competitive bidding/selection process pursuant to
Vernon Municipal Code Sections2.l7.l2(A)(3), 2.17.12(A)(10), and 2.17.12rB)(2).
Background
On November 20,2012, the City Council adopted Resolution No. 2012-223 approving and authorizing
the execution of a twenty-fifth amendment to the standard offer, agreement and escrow instructions for
the purchase of real estate by and between the City of Vernon and Xebec Realty Partners (Bon Appetite)
Inc., for property located at 5119, 5201 and 5241 District Boulevard and 4601 East 52'd Drive (the
former Thermador site).
Also in November, 2012, the City Council authorized funds for the remediation and closure efforts
recommended in the work plan submiued by PIC Environmental Services ("PIC") not to exceed
$275,000.00. The approved work included vapor extraction, perched ground water investigation, and
contaminated soil removal.
An additional $128,000.00 was approved by the City council on March 3,2014 to amend the existing
contract with PIC to increase the expenditure cap from $275,000 to $403,000.
The proposed sale of the properfy to Xebec includes language for the remediation and clean-up of
contaminated areas by the City at various locations on the subject site. Funds for the subject clean-up
were set aside in a special remediation fund for this purpose.
On April 15,2014, the City Council terminated the standard offer, agreement and escrow instructions,
including all related amendments, with Xebec, and approved a new standard offer, agreement and
escrow instructions with a new buyer, Pacific Industrial, LLC.
The former Thermador Site was issued a closure letter on July 25th 2005, and the city hired PIC to
conduct a Phase I and Phase II investigation in September 2005. Subsequent work was approved on the
site in the form of a Health Risk Assessment, and Remedial Action Plan and a perched ground water
investigation plan. All of this work has been through PIC because of the company's familiarity with the
issues and history of the site.
Award of Services Agreement to Vironex
To expedite the remediation and closure of the site to facilitate the redevelopment of the site, PIC
recommended the City promptly hire a firm to complete potassium pelmanganate injection services.
After receiving quotes from three different firms (one was unavailable for work during our window of
opportunity, the other more expensive), upon the recommendation of the Director of Health &
Environmental Control, the City Administrator approved a services agreement with Vironex for
potassium permanganate injection services at an amount not to exceed $88,243. Vironex was the least
expensive firm. Vironex had also been recommended as a highly qualified firm and was available on
short notice. In addition, further project savings were obtained by eliminating the middle-man mark-up,
and the purchasing of the raw materials was handled by the City's purchasing department at a savings of
over $10,000.
Pursuant to the agreement, Vironex injected 14,560 pounds of potassium pe(manganate into the soils at
the City's property for remediation purposes during the last two weeks of August, 2014. PIC was
involved with the project and was responsible for receiving delivery of the materials to the site, and
conducting final soil sampling in order to prepare the closure report.
Exemption from Competitive Bidding and Competitive Selection
The agreement with Vironex was determined to be exempt from public bidding requirements for two
reasons. First, Vemon Municipal Code section 2.17.12(A)(3) exempts "[c]ontracts for the acquisition of
real property or relating to the acquisition of real property." Until the remediation is completed, the
acquisition of the property by Xebec will not close.
Second, Vernon Municipal Code $2.17.12(AXl0) exempts contracts for professional services from
competitive bidding.
Further, the agreement is exempt from competitive selection based on a determination that "the best
interests of the City [were] served by a direct award of the contract without a competitive selection
process" pursuant to Vernon Municipal Code $2.17.12(9)(2). Pursuant to Vernon Municipal Code
$2.17.12(B)(3), when making such a finding, the City Administrator is required to submit a written
report to the City Council detailing the reasons for the f,rnding. This constitutes that report.
Fiscal Impact
The agreement is valued at an amount not to exceed $88,243 for the chemical injection project. The
amount is within the Health Department's2014-2015 budget.
STAFF REPORT
CITY ADMINISTRATION
DATE:
TO:
FROM:
RE:
September 2,2014
Honorable Mayor and City Council
Mark C. Whitworth, City Administrator
A Resolution of the City Council of the City\of Vernon Amending Resolution
No. 2012-173 Regarding the Reimbursement of Certain Costs Incurred by
Current Vernon City Personnel in Connection with a Review by the
California Public Employees' Retirement System ("CaIPERS")
Recommendations
It is recommended that the City Council:
1) Find that the approval of the resolution proposed in this staff report is exempt under the
California Environmental Quality Act (CEQA) in accordance with Section 15061(bX3),
the general rule that CEQA only applies to projects that may have an effect on the
environment.
2) Adopt the attached resolution to authorize tp to an additional $30,000 in reimbursable
legal expenses for Michael McCormick relating to his ongoing appeal of CaIPERS'
determination arising out of the Report findings (CaIPERS Case No. 2013-0899).
Background
In Aprit 2012, CaIPERS issued an audit report on the City of Vemon that contained certain
findings. Based on the findings in the report, CaIPERS issued determination letters to certain
current employees regarding their pension benefits. Some of these employees, including Mayor
Michael McCormick, retained independent legal counsel to assist in responding to and./or
appealing their CaIPERS' determinations, and requested reimbursement from the City for said
costs.
In September 2012, City Council adopted Resolution No. 2012-173, which authorized up to
$25,000 per current employee of reimbursable legal expenses incurred in connection with
responses to and/or appeals of the CaIPERS' determinations arising out of the April 2012 aludit
report findings.
I
In July 2012, Mr. McCormick received a formal compensation determination letter from
CaIPERS. On August 28,2012, Mr. McCormick's timely filed an appeal of said determination.
After some delay, an Administrative Hearing was ultimately set for and held on May 22,2014.
Closing briefs in the Administrative Hearing were filed on June 6,2014. On June 13,2014,the
Administrative Law Judge ("ALJ") who conducted the hearing submitted his Proposed Decision
to the CaIPERS Board of Administration ("Board"), recommending the Board deny Mr.
McCormick's appeal. On August 20,2014, the Board upheld the ALJ's decision to deny the
appeal.
Given the recent Board decision, Mr. McCormick's remaining option is to appeal the decision to
the Superior Court through a writ of administrative mandamus. The writ process will include
substantial legal research and analysis, as well as the preparation of written briefs in support of
Mr. McCormick's appeal. Mr. McCormick's current legal counsel has submitted a proposed
budget of $24,750 for this process, which is attached hereto.
As of August 19, 2014, Mr. McCormick has incurred and received reimbursement for legal
expenses totaling $27,374.99. This exceeds the currently authorized legal expense
reimbursement amount by $2,374.99. However, the additional reimbursement authorization
proposed in this staff report and the attached Resolution is inclusive of this amount. If the City
Council does not approve the proposed additional reimbursement authorization, staff will submit
a request for ratification of the $2,374.99 at a subsequent meeting.
Fiscal Impact
The $30,000 requested in this staff report was not included in the budget for fiscal year 2014-
2}Is,however, staff believes the cost can absorbed within the existing budget.
Attachment
LAW OFFICE OF MICHAEL A. CONGER
Post Office Box 9374
16236 San Dieguito Road, Suite 4-14
Rancho Santa Fe, CA92061
(8s8) 7s9-0200
(858) 759-1906 (frx)
reb slte: www.lewcongcr.com
emrll: congermike@rol.com
RECEIVED
AW 2 6 20tr
CITY ADMINISTRATION
Civil Litlqetion
Employment Lrw
Businers Lrw
Governmental Lrw
Michsel A. Conger
PROPOSED BUDGET
McCormick v, CaIPERS
Prepared: August 26, 2014
Legal Fees: 65 hours @ $350 per hour $22,750
Costs: Filing fees, copies, postage, delivery, travel, etc. S2.000
Total:s24.7s0
Note: This is an estimate only based on prior experience in a similar
case. Actual costs may vary and shall be governed by the
retention agreement dated July 14, 2014.
RESOI.,UTION NO.
A RESOLUTTON OF THE CITY COUNCIL OF THE CTTY OF
VERNON AMENDING RESOLUTION NO. 2O]-2-173 REGARDING
THE REIMBURSEMENT OF CERTAIN COSTS INCURRED BY
CURRENT VERNON CITY PERSONNEL IN CONNECTION WTTH A
REVIEW BY THE CAIIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM ("CALPERS" )
WHEREAS, the California Public Employees' Retirement System
("CaIPERS") office of Audit Services conducEed a public agency review
of the City of vernon, the result.s and findings of which were outlined
in a report dated April- 27, 20]-2 (the "Report" ) ; and
WHEREAS, CaIPERS not.if ied cerEain currenE CiEy of Vernon
personnel of preliminary and final determinations relaEed to their
pension benefits based on the Report findings; and
WHEREAS, cert.ain current City of Vernon personnel ret.ained
independent 1ega1 counseL to assist in responding to and/or appealing
t.he CaIPERS determinations, and request.ed reimbursement from the City
for such cost.s; and
WHEREAS, on September 4, 2012, Ehe CiEy Council of the City
of Vernon adopted Resolution No. 2012-173 (Ehe "Resolution")
authorizing the reimbursement of certain costs incurred by current
Vernon City personnel in connection wit.h responding Eo and/or appealing
the CaI-PERS' determinations; and
WHEREAS, Section 3 of Ehe Resolut.ion authorizes Ehe
expendit.ure of GeneraL Fund monies to pay any costs, expenses, interest
and at.t.orney's fees, not to exceed twenty-five thousand dollars
($25,000) per current employee, arising out of the hiring of Iega1
counsel- to respond to and/or appeal the prel-iminary and final
determinations arising out of the Report findings; and
WHEREAS, by memorandum dated September 2, 201-4, CiEy staff
has requested authorizat.ion for up to an additsional- thirt.y thousand
doll-ars ($30,000.00) in reimbursable legal expenses for W. Michael
Mccormick relating to his ongoing appeal of Cal-pERS. determination
arising out of the Report. findings (CaIPERS Case No. 2013-0899) ; and
WHEREAS, the City Counci] of t.he City of Vernon desires to
auEhorize the additional $30,000.00 in reimbursable 1ega] expenses for
w. MichaeL McCormick.
NOW, THEREFORE,
CITY OF VERNON AS FOLLOWS:
SECTION 1: The
BE IT RESOLVED BY THE CITY COUNCIL OF THE
Cit.y Council of the Cit.y of Vernon hereby
the above recitals are true and correct.
City Council of the Cit.y of Vernon finds
under t,he California Environmental euality
with Section 15061(b) (3), the general rule
project.s that may have an effect on E,he
SECTION 3: The City Councif of the City of Vernon hereby
of
finds and determines that
SECTION 2: The
that this action is exempt
AcC (CEQA) , in accordance
Ehat CEQA only applies t.o
environment.
approves and aut.horizes the additional
General- Fund monies Eo pay any cost.s,
attorney's fees, noE to exceed a total
($55,000.00) , in Che mat.ter of CaIPERS
$30, 000 . 00 expenditure
expenses, interest and
of fifty-five thousand
Case No. 2013-0899.
dol lars
SECTION 4: The City Clerk, or Deputy City C1erk, of the
City of Vernon sha1l certify to the passage, approval and adoption of
this resolution, and the City C1erk, or Deputy City Clerk, of the City
of Vernon sha1l cause this resolution and the City Clerk's, or Deputy
City Clerk's, certifj-cation to be entered in the F1Ie of Resolutions
of the Councll of this City.
APPROVED AND ADOPTED this 2nd day of September, 20L4.
Name:
Title: Mayor / tttayor Pro-Tem
ATTEST:
City Clerk / oeputy City Clerk
APPROVED AS TO FORM:
s?, Deputy City Attorney
3
STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
T,, City Cl-erk / Deputy City Cl-erk of the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No., was duly passed, approved and adopted by the
City Council of the City of Vernon at a regular meeting of the City
Counc j-1 duly held on Tuesday, September 2, 201,4, and thereaf ter was
duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this day of September, 201,4, dt Vernon, Cal-ifornia.
City Clerk / Deputy City Clerk
(SEAL)
4