2015-02-03 City Council MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE
CITY OF VERNON HELD TUESDAY, FEBRUARY 3, 2015, IN THE
COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305
SANTA FE AVENUE, VERNON, CALIFORNIA
MEMBERS PRESENT: McCormick, Maisano, Martinez
MEMBERS ABSENT: Davis
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.
Vernon business owner TJ Lodrup addressed the Council and expressed his concerns regarding
the business license fees. Lodrup explained that he is charged twice because he has two business
locations in Vernon. He inquired whether this issue can be addressed.
NEW BUSINESS
1. Resolution No. 2015-04 - A Resolution of the City Council of the City of Vernon
appointing Maria Ayala to serve as the City Clerk of the City of Vernon and
approving and authorizing the execution of a related employment agreement.
Recommendation:
(1) Find that the approval of the proposed resolution is exempt under the California
Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3),
the general rule that CEQA only applies to projects that may have an effect on the
environment; and
(2) Adopt the resolution appointing Maria Ayala to serve as the City Clerk of the City
of Vernon effective February 9, 2015, and approving and authorizing the
execution of an at-will employment agreement.
It was moved by Maisano and seconded by Martinez to approve Resolution No. 2015-04.
Motion carried, 3-0.
Mayor McCormick administered the oath of office.
Newly appointed City Clerk Maria Ayala, thanked everyone; she looks forward to serving the
City of Vernon.
PRESENTATIONS
2. City of Vernon 2nd Quarter 2014-2015 Financial Update by the Finance Director.
Finance Director William Fox conducted the presentation providing an update on the second
quarter financial results for fiscal year 2014-2015, the City’s investment portfolio, and bond
refunding.
In response to Independent Reform Monitor John Van de Kamp, Fox confirmed that the
information provided includes depreciation and further explained. In further response to Van de
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February 3, 2015
Page 2 of 7
Kamp, Fox advised that elements such as depreciation and cash flow statement can be
highlighted in future presentations.
CONSENT CALENDAR
It was moved by Martinez and seconded by Maisano to approve all matters listed under the
Consent Calendar under one motion. Motion carried, 3-0.
Claims Against the City – Received and Filed
3. Claim for Damages received on January 26, 2015 from Arturo Zurita, Zurita
Trucking/Naihart Transport in an amount in excess of $50,000.
4. Claim for Damages received on January 27, 2015 from Mario Rojas in an amount
to be determined.
5. Claim for Damages received on January 27, 2015 from Rosalva Saavedra in an
amount to be determined.
Minutes – To be Received and Filed
6. Minutes of the Regular City Council Meeting held January 20, 2015.
Warrant Registers
7. Approval of City Warrant Register No. 1417, totaling $1,876,835.69, which covers
the period of January 13, through January 26, 2015, and consists of the following:
a. Ratification of wire transfers totaling $865,860.72; and
b. Ratification of the issuance of early checks totaling $767,268.39; and
c. Authorization to issue pending checks totaling $243,706.58.
8. Approval of Light & Power Warrant Register No. 382, totaling $4,250,362.44,
which covers the period of January 13, through January 26, 2015, and consists of
the following:
a. Ratification of wire transfers totaling $3,732,264.28; and
b. Ratification of the issuance of early checks totaling $439,352.08; and
c. Authorization to issue pending checks totaling $78,746.08.
9. Approval of Gas Warrant Register No. 170, totaling $21,692.29, which covers the
period of January 13, through January 26, 2015, and consists of the following:
a. Ratification of the issuance of early checks totaling $15,026.55; and
b. Authorization to issue pending checks totaling $6,665.74.
Police Department
10. Activity Log and Statistical Summary of Arrests and Activities for the period of
January 1 through January 15, 2015, to be received and filed.
NEW BUSINESS
City Administration Department
11. Resolution No. 2015-05 - A Resolution of the City Council of the City of Vernon
adopting an amended and restated citywide fringe benefits and salary resolution in
accordance with government code section 20636(b)(1) and repealing all resolutions
in conflict therewith.
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February 3, 2015
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Recommendation:
(1) Find that approval of the proposed resolution is exempt under the California
Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3),
the general rule that CEQA only applies to projects that may have an effect on the
environment; and
(2) Adopt the resolution, effective December 28, 2014, adopting an amended and
restated Citywide Fringe Benefits and Salary Resolution, to reflect the following
corrections and transfers to Exhibit A – Classification and Compensation Plan:
a. Director of Human Resources Classification - Y1- frozen monthly salary
should read $16,333.34 instead of $16,333. Pay grade should read E40.
b. Fire Chief Classification - Minimum salary should read $15,530 instead of
$15,531.
c. Transfer IT Group from the Gas & Electric Department to the City
Administration Department.
d. Delete Y1 Salary Step - $9,537 from Programmer/Analyst Classification
e. City Council and Mayor pay grade should read O01 instead of 01.
Human Resources Director Teresa McAllister reported on the proposed, advising that this is a
clean-up item to address minor corrections. There is no fiscal impact.
It was moved by Maisano and seconded by Martinez to approve Resolution No. 2015-05.
Motion carried, 3-0.
12. Appointment to the Vacant Vernon Area Representative Seat on the Vernon
CommUNITY Fund Grant Committee.
Recommendation:
(1) Find that the appointment of individuals to serve on the Vernon CommUNITY
Fund Grant Committee is exempt under the California Environmental Quality Act
(“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA
only applies to projects that may have an effect on the environment; and
(2) Appoint one of the following two candidates to fill the vacant Vernon Area
Representative seat on the Vernon CommUNITY Fund Grant Committee:
- Norma E. Rodriguez
- Rafael Gonzalez
It was moved by Maisano and seconded by Martinez to appoint Rafael Gonzalez to serve as a
member of the Vernon CommUNITY Fund Grant Committee. Motion carried, 3-0.
13. Adoption of Amended Form At-Will Employment Agreements for City Of Vernon
Executive and Staff Attorney Positions.
Recommendation:
(1) Find that approval of the proposed form at-will employment agreements for City
of Vernon executive staff are exempt under the California Environmental Quality
Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that
CEQA only applies to projects that may have an effect on the environment; and
(2) Approve and adopt the amended form at-will employment agreements (safety and
non-safety) to be used for City of Vernon executives and staff attorneys (except
the City Administrator and City Attorney).
(3) Authorize the City Administrator or City Attorney to complete, execute, and
when applicable, renew the appropriate form at-will employment agreement for
each current and newly hired executive and staff attorney.
Human Resources Director Teresa McAllister conducted the oral report on the proposed form at-
will employment agreements for safety and non-safety.
It was moved by Maisano and seconded by Martinez to adopt the amended form at-will
employment agreement for City of Vernon Executive and Staff Attorney positions. Motion
carried, 3-0.
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February 3, 2015
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Finance Department
14. Approval and Authorization to enter into an Attorney Services Agreement
(Transactional) with Orrick, Herrington & Sutcliffe, LLP to serve as Bond &
Disclosure Counsel to the City of Vernon relating to Electric Bond Financing
Transactions.
Recommendation:
(1) Find that the approval of the proposed agreement 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 activities that may have an effect
on the environment. Legal services provided in a bond financing are not subject
to CEQA; and
(2) Approve the Attorney Services Agreement (Transactional) with Orrick,
Herrington & Sutcliffe, LLP (“Orrick”), in substantially the same form as
submitted with the staff report, and authorize the City Administrator to execute
the Agreement for a one year period for an amount not-to-exceed $165,000.00 to
serve as Bond & Disclosure Counsel for the upcoming Electric Bond Financing
Transactions. This entails providing general bond counsel and disclosure counsel
services. The cost for bond counsel services is $100,000 and disclosure counsel
services is $65,000 for a total of $165,000. Competitive bidding is not required
pursuant to Vernon Municipal Code Section 2.17.12(a)(10) (Professional
Services). Based upon Orrick’s in depth knowledge of the City’s existing bond
covenants, legal and technical expertise in municipal bond financing, outstanding
legal representation on prior City electric bonding & tax transactions, and
competitive market pricing obtained, it has been determined that the best interest
of the City is served by a direct award of the contract.
Finance Director William Fox reported on the selection. In response to Independent Reform
Monitor John Van de Kamp, Fox advised that the proposed fees are substantially less than in
previous years. Additionally, the City will not incur any expenses unless the transaction goes
through. The rates are comparable to SCPPA (Southern California Public Power Authority).
It was moved by Maisano and seconded by Martinez to approve the attorney services agreement
with Orrick, Herrington & Sutcliffe, LLP. Motion carried, 3-0.
15. Resolution No. 2015-06 - A Resolution of the City Council of the City of Vernon
approving and adopting an updated whistleblower policy and repealing all
resolutions in conflict therewith.
Recommendation:
(1) Find the adoption of the resolution is exempt under the California Environmental
Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an effect on the environment;
and
(2) Approve the resolution adopting an updated Whistleblower Policy which provides
for the enactment of the City’s updated Whistleblower Policy & Fraud Hotline.
Such approval will allow the City to further strengthen its Whistleblower policy
including the launching of a Fraud Hotline.
Finance Director William Fox reported on the proposed policy, he noted that the policy
incorporates the recommendation made by the financial auditors.
It was moved by Martinez and seconded by Maisano to approve Resolution No. 2015-06.
Motion carried, 3-0.
Gas and Electric Department
16. Approval of Change Order No. 2 to the Existing Consulting Services Agreement
with Engineering Partners, Inc., for the Detailed Design and Preparation of Plans
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February 3, 2015
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for the Relocation of Power Poles related to the Rehabilitation of the Atlantic Blvd.
Bridge over the Los Angeles River Bridge.
Recommendation:
(1) Find that the approval of Change Order No. 2 the Consulting Services Agreement
with Engineering Partners, Inc., (“EPI”), is within the Initial Study/Mitigated
Negative Declaration prepared for this project pursuant to the provisions under
the California Environmental Quality Act (“CEQA”) in accordance with Section
15063. The lead agency shall conduct an initial study to determine if the project
may have a significant effect on the environment, and Section 15070; and
(2) Approve and authorize the City Administrator to execute Change Order No. 2, in
substantially the same form as submitted with the staff report, to the existing
consulting services agreement with EPI for services related to additional detailed
design and preparation of plans to reconstruct the overhead electric system on the
west side of the Atlantic bridge, for a compensation amount not-to-exceed
$125,000; thereby increasing the total contract value to a not-to-exceed amount of
$272,385.
Electric Resources Planning & Development Manager Abraham Alemu reported and explained
the request for a Change Order.
It was moved by Maisano and seconded by Martinez to approve Change Order No. 2 to the
consulting services agreement with Engineering Partners, Inc. Motion carried, 3-0.
Health and Environmental Control Department
17. Approval of the Agreement Accepting the Reassignment of the Non-Exclusive
Franchise Agreement for Commercial Solid Waste Collection by Crown Disposal
Company, Inc., and allowing the Reassignment of the Non-Exclusive Franchise
Agreement for Commercial Solid Waste Collection to Recology Los Angeles c/o
Recology Inc.
Recommendation:
(1) Find that approval for the request 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) Approve the Agreement, in substantially the same form as submitted with the
staff report, accepting the reassignment of the Non-Exclusive Franchise
Agreement for Commercial Solid Waste Collection held by Crown Disposal
Company, Inc., and assigning the Non-Exclusive Franchise Agreement for
Commercial Solid Waste Collection to Recology Los Angeles c/o Recology Inc.
Director of Health and Environmental Control Leonard Grossberg reported on the reassignment.
Independent Reform Monitor John Van de Kamp inquired whether Recology Inc. (“Recology”)
has natural gas vehicles.
Joe Matz of Recology advised that Recology will be taking over the current fleet; any new
additions will be clean energy vehicles.
It was moved by Martinez and seconded by Maisano to approve the reassignment of the non-
exclusive franchise agreement for commercial solid waste collection from Crown Disposal
Company to Recology Los Angeles c/o Recology Inc. Motion carried, 3-0.
Public Works, Water and Development Services Department
18. Approval of a Notice Inviting Bids - Contract CS-0533 for the Rehabilitation of
Production Well No. 16.
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February 3, 2015
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Recommendation:
(1) Find that the proposed Notice Inviting Bids is exempt under the California
Environmental Quality Act (CEQA) in accordance with CEQA Guidelines
Section 15301, subsections (b) and (d), because the project involves negligible or
no expansion of use beyond that existing at the lead agency’s determination; and
(2) Approve the Notice Inviting Bids, per Contract CS-0533 for the Rehabilitation of
Production Well No. 16.
Director of Public Works, Water and Development Services Kevin Wilson reported on the
request.
It was moved by Maisano and seconded by Martinez to approve the notice inviting bids for
Contract No. CS-0533. Motion carried, 3-0.
19. Rejection of all Bids – for Equipping Well No. 21 and Related Site Work –
Contract No. CS-0484.
Recommendation:
(1) Find that the request 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 be
exempt in accordance with Section 15301, subsections (b) and (d), because the
project involves negligible or no expansion of use beyond that existing at the lead
agency’s determination; and
(2) Approve the rejection of all bid proposals, received on December 9, 2014, per
Contract CS-0484 for Equipping Well No. 21 and Related Site Work, and
authorize staff to re-advertise and solicit bids for Equipping Well No. 21 and
Related Site Work.
Director of Public Works, Water and Development Services Kevin Wilson conducted the oral
report. In response to Independent Reform Monitor John Van de Kamp’s concerns, Wilson
advised that the bid will be redrafted to make the required information clear.
It was moved by Maisano and seconded by Martinez to reject the bids for Contract No. 0484,
and authorize staff to re-bid the contract. Motion carried, 3-0.
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.
Police Chief Daniel Calleros reported on recent incidents in the City, including a major traffic
collision incident that occurred on January 21, 2015. A community alert will be issued,
providing awareness of recent fraudulent activity. Calleros also reported on changes to the asset
forfeiture equitable-sharing program, noting that it should not have an effect on the City.
In response to Independent Reform Monitor John Van de Kamp’s concerns regarding the abuse
that initiated the change in the asset forfeiture equitable-sharing program process, Calleros
reported on the established review process for all cases.
Police Captain Michael Gillman reported on two incidents of vandalism.
Fire Chief Michael Wilson announced that the Fire Department remains at a Class 1 for the ISO
(Insurance Services Office) rating. The hiring process for the firefighter position is anticipated
to conclude in April. Wilson provided updates on the LA RICS construction and training center.
Wilson further reported on the January 21, 2015, traffic collision incident.
Director of Public Works, Water and Development Services Kevin Wilson reported on the
zoning ordinance public workshop. Another workshop is scheduled for February 5, 2015.
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February 3, 2015
Page 7 of 7
In response to Mayor McCormick, Wilson provided an update on the City Hall reconfiguration
project.
Electric Resources Planning & Development Manager Abraham Alemu also reported on the
January 21, 2015, traffic collision incident and the resulting power outage. Alemu noted
Edison’s delayed response to the incident.
Finance Director William Fox announced the commencement of the budget process. Fox noted
the City’s fraud protection efforts which include the implementation of a new whistleblower
policy approved earlier this day.
Director of Health and Environmental Control Leonard Grossberg reported on the conclusion of
the food and non-food truck inspections. Grossberg announced the Green Vernon Commission
(GVC) meeting scheduled to be held on March 18, 2015 at 3:30 p.m.
In response to Independent Reform Monitor John Van de Kamp, Grossberg advised that
Chairperson Honda and Commission Member Garcia of the GVC formed a subcommittee to
formulate topic for GVC meetings.
In response to Mayor McCormick, Grossberg advised that an e-waste event is anticipated to be
held in April or May of this year.
Director of Human Resources Teresa McAllister reported on Department’s legal compliance
with 2015 HR requirements. The department continues to be involved in several recruitments.
McAllister advised that a new sick policy will be presented for Council consideration at a future
date in order to address compliance with a new Act which impacts the City.
Economic Development Manager and Successor Agency Staff Alex Kung announced that the
next Oversight Board to the Successor Agency meeting is scheduled to be held on February 5,
2015, at 4:00 p.m. The Recognized Obligation Payment Schedule, is agendized for said meeting.
City Administrator Mark Whitworth advised that Independent Reform Monitor John Van de
Kamp’s semi-annual report is available; a presentation on the report is scheduled for the next
Council meeting. Whitworth reported on Council members’ and staffs’ attendance to the
Independent Cities Association conference.
Whitworth announced the Vernon CommUNITY Fund Grant Committee meeting on February
18, 2015, at 10:00 a.m. The Vernon Village Park Apartments lottery is scheduled for March 3,
2015, at 6:00 p.m.
With no further business, at 10:27 a.m., Mayor McCormick adjourned the meeting.
________________________
W. Michael McCormick
Mayor
ATTEST:
_________________________
Maria E. Ayala
City Clerk