2015-04-28 Business and Industry Commission Minutes (Special)MINUTES OF THE SPECIAL VERNON BUSINESS AND INDUSTRY
COMMISSION MEETING OF THE CITY OF VERNON HELD
TUESDAY, APRIL 28, 2015, AT 3:00 P.M. IN THE CITY HALL
COUNCIL CHAMBER, LOCATED AT 4305 SANTA FE AVENUE,
VERNON, CALIFORNIA
MEMBERS PRESENT: W. Michael McCormick, Brett Dedeaux, Ken Jackson, Douglas
Pittman, Stan Stosel, and Robert Wendoll
MEMBERS ABSENT: Eric Gustafson
The meeting was called to order at 3:08 p.m. by Commissioner Pittman who also led the flag
salute.
There were no changes to the agenda.
PUBLIC COMMENT
Marisa Olguin (Vernon Chamber of Commerce). Ms. Olguin commented on the businesses’
concerns over potential rate increases, and requesting the City look into potential ways of
absorbing these rates. Recommended that the Commission recommend to the City Council to have
another “Kosmont Cost Analysis” conducted, as the last one was done in 2007. She provided
copies for the Commissioners.
INFORMATIONAL ITEMS
1. City of Vernon’s Electric Rates
Economic Development Manager Alex Kung briefly introduced the topic. Mr. Kung introduced
Carlos Fandino, Director of Gas and Electric Department, and Bill Fox, Director of Finance who
provided a PowerPoint presentation regarding the proposed rate adjustment.
Chairperson McCormick and Commissioner Dedeaux arrived at the meeting at 3:17 p.m. during
the PowerPoint presentation.
The Commission had several questions that included, but were not limited to: general economic
conditions; requests for data comparing Vernon utilities to other comparable agencies; stability for
the next few years; dissemination of financial information; etc. Mr. Fandino and Mr. Fox
responded to the questions.
At this time Chairperson McCormick asked for public comment.
Steve Freed (Mt. Vernon LLC). Mr. Freed commented and expressed concerns regarding the
following: increased expense of generating power; questions regarding the issuance of debt and
the bond ratings. Mr. Fox and Mr. Fandino addressed questions.
Vernon Business and Industry Commission Meeting Minutes
April 28, 2015
Page 2 of 2
Bob Gutterman (Crown Poly, Inc.). Mr. Gutterman agreed that a comparison study should be
conducted and Vernon should benchmark itself against other local utilities; requests that the history
of rate increases be looked at; commented that (as having served on the Ad Hoc Advisory
Committee on Electric Rates (“ERC”)), the City was asked to look at cutting back on transfers to
the general fund; etc.
Marisa Olguin (Vernon Chamber of Commerce). Ms. Olguin provided history about the prior work
of the ERC; questions on the justification of need for future rate increases; and a question on the
gas hedge fund; etc. Mr. Fandino responded accordingly.
ORAL REPORTS
2. Brief reports on activities, other brief announcements, and directives to staff.
Economic Development Manager Alex Kung announced that the next regularly scheduled meeting
of the Commission will be held on May 14.
Commissioner Freed commented on the following: being at the “mercy of the market” on utilities;
retaining the Tehachapi property; and thanked everybody for their public comments.
Commissioner Wendoll asked if Mr. Fox or Mr. Fandino would like to address or respond to any
of the public comments. Mr. Fox and Mr. Fandino both responded that additional information will
be provided at the next meeting addressing various questions.
With no further business, Chairperson McCormick adjourned the meeting at 4:39 p.m.
________________________
W. Michael McCormick
Chairperson
ATTEST:
_________________________
Maria E. Ayala
City Clerk