2015-05-14 Business and Industry Commission MinutesMINUTES OF THE REGULAR VERNON BUSINESS AND
INDUSTRY COMMISSION MEETING OF THE CITY OF VERNON
HELD THURSDAY, MAY 14, 2015, AT 9:00 A.M. IN THE CITY
HALL COUNCIL CHAMBER, LOCATED AT 4305 SANTA FE
AVENUE, VERNON, CALIFORNIA
MEMBERS PRESENT: W. Michael McCormick, Ken Jackson, Douglas Pittman, Stan
Stosel, and Robert Wendoll
MEMBERS ABSENT: Brett Dedeaux and Eric Gustafson
The meeting was called to order at 9 a.m. by Chair McCormick who also led the flag salute.
There were no changes to the agenda.
PUBLIC COMMENT
Chair McCormick announced that this was the time allotted for public comment and inquired
whether anyone in the audience wished to address the Commission. The public will also be
given a chance to comment on matters which are on the posted agenda during Commission
deliberation on those specific matters.
No public comment provided.
MINUTES
1. Minutes of the Special Business & Industry Commission Meeting held February
12, 2015.
It was moved by Stosel and seconded by Jackson to approve the February 12, 2015 Minutes.
Motion carried, 5-0.
2. Minutes of the Special Business & Industry Commission Meeting held April 18,
2015.
It was moved by Stosel and seconded by Jackson to approve the April 18, 2015 Minutes. Motion
carried, 5-0.
NEW BUSINESS
3. Recommendation for a three year electric rate adjustment to City Council at its
regularly scheduled meeting on May 19th.
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Vernon Business and Industry Commission Meeting Minutes
May 14, 2015
Page 2 of 3
Recommendations
A. Find that approval and adoption of the proposed recommendation 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
B. Approve and support the recommendation of the Director of Vernon Gas &
Electric for a three-year electric rate adjustment plan, whereby rates would
increase by 3.5% effective July 1, 2015, an additional 3% effective July 1, 2016,
and an additional 2.5% effective July 1, 2017. The Director intends to present
this recommendation to the City Council on May 19, 2015.
Director of Gas and Electric Carlos Fandino presented a PowerPoint presentation on the Electrical
Rate Proposal. Commissioners Jackson and Pittman commended staff on the presentation as it
addressed questions from the previous Commission Meeting. Both Mr. Fandino and Finance
Director William Fox responded to questions from the Commission that included: ERRA (Energy
Resource Recovery Account), revenues, service debt, rate adjustments not being meant for
transfers to general fund, etc.
Public Comment:
President of the Vernon Chamber of Commerce Marisa Olguin thanked staff for the informative
presentation and also expressed questions regarding: the reasons for the rate adjustments; the rate
comparisons for large, midsize, and smaller utility customers with other cities; and also asked
about the UUT that is currently in place for one year.
Mr. Fandino and Mr. Fox addressed Ms. Olguin’s questions with Commissioner Jackson also
providing feedback.
It was moved by Jackson and seconded by Wendoll to approve and support the recommendation
for a three year electric rate adjustment to City Council. Motion carried, 5-0.
ORAL REPORTS
4. Brief reports on activities, other brief announcements, and directives to staff.
Economic Development Manager Alex Kung announced that the next City Council Meeting
scheduled for May 19, will consist of a budget update and adoption of the rates on the agenda.
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Vernon Business and Industry Commission Meeting Minutes
May 14, 2015
Page 3 of 3
With no further business, Chair McCormick adjourned the meeting at 10:17 a.m.
________________________
W. Michael McCormick
Chairperson
ATTEST:
_________________________
Maria E. Ayala
City Clerk