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2016-12-06 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 Office of the City Clerk 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 Office of the City Clerk 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, December 06, 2016, 9:00 a.m. City Hall, Council Chamber 4305 Santa Fe Avenue Vernon, California William J. Davis, Mayor Yvette Woodruff-Perez, Mayor Pro-Tem Luz Martinez, Council Member Melissa Ybarra, Council Member Leticia Lopez, 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. Holiday Greeting Card Art Contest Award Presented by: Vernon Police Department, Chief Daniel Calleros 2. A Proclamation of the Mayor and the City Council of the City of Vernon commending Scott B. Rigg for his many years of service to the City of Vernon 3. 1st Quarter Financial Update Presented by: William Fox, Finance Director Regular City Council Meeting Agenda December 06, 2016 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 4. None Minutes – To be Received and Filed 5. Minutes of the Regular City Council Meeting held November 01, 2016 6. Minutes of the Regular City Council Meeting held November 15, 2016 Warrant Registers 7. Approval of City Warrant Register No. 1461, totaling $2,554,209.17, which covers the period of November 08 through November 28, 2016, and consists of the following: A. Ratification of wire transfers totaling $1,674,274.76; and B. Ratification of the issuance of early checks totaling $592,826.65; and C. Authorization to issue pending checks totaling $287,107.76. 8. Approval of Light & Power Warrant Register No. 426, totaling $11,218,178.21, which covers the period of November 08 through November 28, 2016, and consists of the following: A. Ratification of wire transfers totaling $10,911,284.79; and B. Ratification of the issuance of early checks totaling $290,775.46; and C. Authorization to issue pending checks totaling $16,117.96. 9. Approval of Gas Warrant Register No. 214, totaling $1,583,228.98, which covers the period of November 08 through November 28, 2016, and consists of the following: A. Ratification of wire transfers totaling $1,564,703.50; and B. Ratification of the issuance of early checks totaling $13,320.29; and C. Authorization to issue pending checks totaling $5,205.19. 10. Approval of RDA Obligation Retirement Fund Warrant Register No. 32, totaling $10,179.99, which covers the period of November 08 through November 28, 2016, and consists of the following: Regular City Council Meeting Agenda December 06, 2016 Page 3 of 7 A. Ratification of the issuance of early checks totaling $10,179.99. Gas and Electric Department 11. Base Contract (“NAESB”) with City of Long Beach for Sale and Purchase of Natural Gas Recommendation: A. Find that (a) the agreement between the City of Vernon and City of Long Beach is not in reference to a “project” subject to the California Environmental Quality Act (“CEQA”) under Guidelines section 15378 because it involves the administrative activity of purchasing gas; 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 gas 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 B. Authorize the Director of Gas & Electric (as per Resolution No. 9280) to execute the North American Energy Standards Board (“NAESB”) contract by and between the City of Vernon (“City”) and City of Long Beach (“Long Beach”) in substantially the same form as attached to the staff report, for the purpose of buying and selling natural gas to or from Long Beach, in compliance with the general terms established in the agreement. Pursuant to Vernon Municipal Code § 2.17.12(A)(6), competitive bidding is not required because this is a contract for gas and/or electrical power for the City’s power utility, and it would be commercially unreasonable to procure the gas or electricity through standard bidding or request for proposal procedures. Police Department 12. Activity Log and Statistical Summary of Arrests and Activities for the period of November 01, through November 15, 2016, to be received and filed. 13. Drug Enforcement Administration Agreement Recommendation: A. Find that granting authority to execute the referenced agreement is exempt from California Environmental Quality Act (“CEQA”) review, because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378; and B. Authorize the Police Chief to execute an agreement with the Drug Enforcement Administration (DEA), in substantially the same form as submitted herewith, for continued participation in the Southwest Border Initiative (SWBI) taskforce. / / / Regular City Council Meeting Agenda December 06, 2016 Page 4 of 7 ORDINANCE Public Works, Water and Development Services Department 14. An Ordinance of the City Council of the City of Vernon amending various sections of Chapters 7, Fire Regulations and 24, Building and Construction, of the Vernon Municipal Code, along with amendments, additions and deletions and adopting by reference the following codes: (1) the 2016 California Fire Code, 24 CCR Part 9; (2) the 2016 California Building Code, 24 CCR Part 2; (3) the 2016 California Electrical Code, 24 CCR Part 3; (4) the 2006 Edition of the International Code Council Electrical Code Administrative Provisions; (5) the 2016 California Mechanical Code, 24 CCR Part 4; (6) the 2016 California Plumbing Code, 24 CCR Part 5; (7) the 2016 California Existing Building Code, 24 CCR Part 10; (8) the 2015 International Existing Building Code; (9) the 2016 California Residential Code, 24 CCR Part 2.5; (10) the 2016 California Green Building Standards Code also called the CALgreen Code, 24 CCR Part 11, and; (11) the 2016 California Energy Code, 24 CCR Part 6; repealing all prior ordinances and parts of ordinances in conflict therewith (Second Reading and Adoption) Recommendation: A. Find that the action proposed herein is not subject to the California Environmental Quality Act (CEQA) as this ordinance is not considered a “project” under CEQA which is defined as an action directly undertaken by a public agency which has the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, Cal. Pub. Res. Code Section 21065. Under the proposed ordinance, no such activity is being undertaken. Even if the ordinance were to be considered a “project” under CEQA, which is not the case, the ordinance would be 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 ordinance involves the adoption of state-mandated construction codes, and the revisions to those codes merely improve the safety of buildings and will not have any effect on the environment; and B. Approve the second reading and adopt an ordinance amending various sections of Chapters 7 and 24 of the Vernon Municipal Code, along with amendments, additions and deletions and adopting by reference the following codes: (1) the 2016 California Fire Code, 24 California Code of Regulations (CCR) Part 9; (2) the 2016 California Building Code, 24 CCR Part 2; (3) the 2016 California Electrical Code, 24 CCR Part 3; (4) the 2006 Edition of the International Code Council (ICC) electrical Code Administrative Provisions; (5) the 2016 California Mechanical Code, 24 CCR Part 4; (6) the 2016 California Plumbing Code, 24 CCR Part 5; (7) the 2016 California Existing Building Code, 24 CCR Part 10; (8) the 2015 International Existing Building Code; (9) the 2016 California Residential Code, 24 CCR Part 2.5; (10) the 2016 California Green Building Standards Code also called the CALGreen Code, 24 CCR Part 11, and; (11) the 2016 California Energy Code, 24 CCR Part 6. Regular City Council Meeting Agenda December 06, 2016 Page 5 of 7 NEW BUSINESS City Clerk Department 15. A Resolution of the City Council of the City of Vernon updating City Staff Members’ appointments to the Gateway Region Integrated Water Management Joint Power Authority also known as Gateway Water Management Authority Policy Board Recommendation: A. Find that approval of the proposed action is exempt from California Environmental Quality Act (“CEQA”) review, because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378; and B. Appoint key staff as either delegate(s) and/or alternate(s) to the following board of the agency: 1. Gateway Region Integrated Water Management Joint Power Authority (also known as Gateway Water Management Authority Policy Board) Appoint Director of Public Works, Water and Development Services Derek Wieske as the delegate; and appoint as alternate, Storm Water and Special Projects Analyst Claudia Arellano. Public Works, Water and Development Services Department 16. Award of Professional Services Agreements with Iteris, Inc. and with Albert Grover & Associates for on-call Traffic Engineering Services Recommendation: A. Find that the approval of the proposed action is exempt from California Environmental Quality Act (“CEQA”) review, because such action constitutes an administrative activity and it will not result in a direct or indirect physical changes to the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378; and B. Approve and authorize the City Administrator to enter into a three year contract agreement with Iteris, Inc. for an amount not to exceed $180,000; and C. Approve and authorize the City Administrator to enter into a three year contract agreement with Albert Grover and Associates for an amount not to exceed $180,000. 17. Recommendation from the Vernon Housing Commission to Delay the Next Phase of the City Housing Remodel Project to Provide the Housing Commission with an Opportunity to Review the Contract Specifications / / / Regular City Council Meeting Agenda December 06, 2016 Page 6 of 7 Recommendation: A. Find that the recommendations from the Vernon Housing Commission do not constitute a “project” pursuant to Section 15378(b)(2) of the Guidelines to the California Environmental Quality Act (“CEQA”) because such action constitutes an administrative activity; and even if the adoption of the proposed item 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 B. Approve the recommendation from the Vernon Housing Commission (VHC) to delay the Housing Remodel Project in order to provide the Commission with an opportunity to review the plans and contract specifications with staff and to explore the need of additional disabled accessibility features in the City’s housing units, related to the Housing Remodel Project. ORAL REPORTS 18. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. 19. City Council Reports – brief AB1234 reports, or report on: activities, announcements, or directives to staff. CLOSED SESSION 20. PUBLIC EMPLOYMENT Government Code Section 54957(b)(1) Title: Fire Chief 21. CITY COUNCIL CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Agency Designated Representative: Carlos Fandino, City Administrator Employee Organizations: Teamsters Local 911, IBEW Local 47, Vernon Firemen's Association, Vernon Fire Management Association, Vernon Police Officers' Benefit Association, Vernon Police Management Association / / / / / / Regular City Council Meeting Agenda December 06, 2016 Page 7 of 7 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 1st day of December 2016. By: ________________________________ Maria E. Ayala City Clerk RECEIVED NOv 2 3 2016 CITY CLERK'S OFIICE RECEIVED 1{)v r 7 20f CtTY ADMINISTRATION STAFF REPORT & t,\-LZ-rv VERNON POLICE DEPARTMENT DATE: TO: FROM: RE: December 6, 2016 Honorable Mayor and City Council Daniel Calleros ,Police Chief 0L Holiday Greeting Card Art Contest Award Recommendation It is recommended that the City Council present the Vernon Police D€partnent Holiday Card Art mntest award for the student of Vernon Elernentary School. Backeround As part of on-going community outreach efforts, the Vernon Policc Departnent (VPD) established a Holiday Card Art contest with 6th grade students from Vemon Elementary School. The goal of the art contest was for students to develop a creative holiday drawing for the cover section ofthe 2016 VPD holiday greeting card. Once the specific drawing is selected, the produced greeting cards will be mailed to local law enforcement agencies in the region, Vernon residents, and key Vernon businesses. VPD staff examined the 23 submitted drawings and selected the top drawing that was specific to the holiday therne. VPD would like to honor the top candidate and present the student with a recognition plaque. Fiscal Imoact Funds for the award recogrition plaque have been included in FY 2016-2017 budget. Attachment(s) None REGe lrrgp DEC O I 2016 ctiy ctERt{,s 0FFICE ,REGEIVED t$v 3 0 20t CITY ADMINISTRATI()N STAFF REPORT cb= HUMAN RESOURCES DEPARTMENT DATE: TO: FROM: RE: December 6, 2016 Honorable Mayor and City Council Michael A. Earl, Director of Human Origrnslels Lisette M. Grizzelle, Seni RECOGNITION OF RETIRING EMPLOYEE - SCOTT B. RIGG, PUBLIC WORKS AND WATER SUPERINTENDENT Recommendation A. It is recommended that the City Council acknowledge and present a proclamation to retiring ernployee Scott B. Rigg, Public Works and Water Superintendent, in recognition ofhis dedicated service to the City ofVernon. Background Historically, the City has approved proclamations in honor of retiring City ernployees. This is the appropriate time to approve a proclamation for Scott B. Rigg" Public Works and Water Superintendent, who will be retiring from the City of Vernon after providing seventeen (17) years of service to the City and its patrons. During his career with the City of Vemon, Mr. Rigg held various positions such as: Water Operations Supervisor, and Public Works and Water Superintendent. Mr. Rigg was hired on Novernber 22, 1999, and has met the eligibility requirernents under CaIPERS to retire from the City of Vernon effective Decernber 15,2016. Fiscal Imoact This activity can be carried out without additional impact on the current operating budget. Attschment(s) l. None Page I of I A PROCIAMATIONOFTITE MAYORAND TIIE CITYCOLINCIL OF TIIE CITYOF WRNON COMMENDING SCOTT B. RIGG FOR IIIS MAI{YYEARS OF'SERWCE TO TITE CITYOF WRNON V/HEKEAS, ScvttB. Nghas bun enpbled b1 the Cig of Venon inre Noaember 22, 1999, and hat faitbfulfi sned the Ciry of Venonfor owr l T lears; and IYHE&EAS, SnttB. Nguill be ntiringfmn the CiA of l./enon ffe*iae Decenber 15, 2016; and IYHENEAS, Scvtt B. Ng will ntin at a P lic lVorles and ll/ater Stperinterdent in tbe Pablic lVorks, lVater and Dewbpment Senivs Depatment; and W'IIENEAS, dtitg tbe tvrrse of hh enpblnent oitb the CiA oJ Venton, Sntt B. Ng hat lteld aaiots positions in the Ptblit lYorks, lYater and Deaelopment Senicvs Drpartment inchding lVater Operations Superuisor and P lic lYork and lf/ahl S Pefintendent; and IYHEKEAS, Scvtt B. Ng bas orcrseer nmemus dtal CiU PnjeL'tt, sath as the lldmgobgizl eulution of the Cig of Venon gnmdwater stppliu, a master plan for tbe pater and ya$epater smicvs, vater distrib iott g$em lydraalic analsit Ciry Hall backap power generator installation, nhabilitation oJ the l0 nillion galbn uater nsooin ebuted tank starrdPipe ,ePair, and aaio* pnd*'tion n'ell nhabilitation pmjects; and V'IIEREAS, fuirg bis bng and distingtithed ,'aner n ith tbe CiA of Verlon, Satt B. Ng ha: nnn the deepat rcsput of hit colbaguu tbmryh bis badenhip and his manl n*ribttions to the Ciry; and V/HE EAS, it * an botor to e^?nsr o r apPreLiation to Sntt B. Ngfor hi exenplary etiv to the Ciry oJ Venon and wi SLvlt good health ilpon bis ntinment and for mntirued wccvtt in fife\ pats ts; and W'IIEKEAS, tbe Malor and the Ciy Coan,il of tbe Ciry of Venot on bebalf of it employes, nsidents and buineseL n ish to tommend and tbank Scvtt B. Ngfor bit naryyan of sentin to the Cig and inite ncugnition of his crnlribrtions and achievements. NOVI, THEKEFOKE, THE MAYORAND THE CITY COUNAL OF THE CTTY OF IURNOAT ON BEI]AI-F OF ITS EMPLOYEE RE"'IDEATJ,4ND BUIINE.fJE.' HEREBY COMMENDS SCOTT B. RIGG FOR HlJ MANY YEARS OF SERL4CE TO THE CTW, THIS PROCI.AMATION IS BEING PRESENTED TO SCOTT B. NGG BY THE HONORABI-e, MAYORW'LLUAM l. DAL4S FOR,.IND ON BETTALF OFTHE CTTY COUNCILOFTHE CITY OF T,ryRNON THIS 6M DAY OF DECEA,IBERTIY/O THOUS.4ND AND SIXTEEN. CITYOF I-?RNON BJt IYI lJ-.L/ivl J. DAWS. M ayr MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, NOVEMBER 1, 2016, IN COUNCIL CHAMBER OF CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Davis, Woodruff-Perez, Martinez, Ybarra, and Lopez MEMBERS ABSENT: None The meeting was called to order at 9:00 a.m. by Mayor Davis. Police Chief Daniel Calleros led the flag salute. CHANGES TO THE AGENDA City Clerk Maria Ayala announced that there were no changes to the agenda. PUBLIC COMMENT Mayor Davis 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. Sandra Rivera Orozco, Southeast Political Activist, spoke about her recent accolades and gave a short biography of herself. CLOSED SESSION At 9:07 a.m., the City Council entered into closed session to discuss the following agendized items: 1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (2) Government Code Section 54956.9(a) A. Bruce V. Malkenhorst, Sr. v. CalPERS, City of Vernon Los Angeles Superior Court Case No. BS159589 B. City of Vernon vs. Citigroup Energy Inc., et al. United States District Court Southern District of New York Case No. CV16-2405 At 9:21 a.m. the City Council exited closed session. City Attorney Hema Patel announced that two items were discussed and reported out that Council had taken action on Item 1(B). It was moved by Martinez and seconded by Lopez to approve Resolution No. 2016-61. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes PRESENTATION 2. Life-Savings Award Presentation Presented by: Vernon Police Department, Chief Daniel Calleros and Vernon Fire Department, Interim Chief Andrew Guth Regular City Council Meeting Minutes November 1, 2016 Page 2 of 8 Police Chief Daniel Calleros and Interim Fire Chief Andrew Guth reported on the proposed and presented the Life-Savings Award to the following: At 9:36 a.m. Mayor Davis recessed the meeting. At 9:46 a.m. the meeting was reconvened. 3. Moody’s Bond Rating Update Presented by: William Fox, Finance Director Finance Director William Fox provided a PowerPoint presentation. Public Comment: Marisa Olguin, Vernon Chamber of Commerce, spoke about the cooperative effort between the Chamber and the City on the proposed increase to the User Utility Tax. Ms. Orozco stated that she was glad to see this moving forward in a transparent and accountable manner. Mayor Davis inquired as to when this was going to be voted on. City Administrator Carlos Fandino explained that it would go on the April 11, 2017 election ballot and a timeline was being generated. City Council inquired as to why the Moody’s findings were negative. Finance Director Fox further explained the findings of Moody’s and their decision making process. CONSENT CALENDAR It was moved by Woodruff-Perez and seconded by Martinez to approve all matters listed under the Consent Calendar under one motion as presented. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes Claims Against the City – Received and Filed 4. None Minutes – To be Received and Filed 5. Minutes of the Regular City Council Meeting held October 4, 2016 6. Minutes of the Special City Council Meeting held October 12, 2016 7. Minutes of the Regular City Council Meeting held October 18, 2016 Warrant Registers 8. Approval of City Warrant Register No. 1459, totaling $728,705.21, which covers the period of October 11 through October 24, 2016, and consists of the following: A. Ratification of wire transfers totaling $505,840.53; and B. Ratification of the issuance of early checks totaling $79,987.70; and C. Authorization to issue pending checks totaling $142,876.98; and D. Voided check No. 352642 totaling $49,983.10 Regular City Council Meeting Minutes November 1, 2016 Page 3 of 8 9. Approval of Light & Power Warrant Register No. 424, totaling $6,880,221.15, which covers the period of October 11 through October 24, 2016, and consists of the following: A. Ratification of wire transfers totaling $6,804,700.31; and B. Ratification of the issuance of early checks totaling $62,040.28; and C. Authorization to issue pending checks totaling $13,480.56. 10. Approval of Gas Warrant Register No. 212, totaling $6,133.22, which covers the period of October 11 through October 24, 2016, and consists of the following: A. Ratification of the issuance of early checks totaling $6,133.22. Fire Department 11. Activity Report for the period of September 16 through September 30, 2016 Police Department 12. Activity Log and Statistical Summary of Arrests and Activities for the period of October 1, through October 15, 2016, to be received and filed Public Works, Water and Development Services Department 13. Building Department Report for the Month of September 2016 14. Measure R Funding Agreement for the Interstate 710 South Early Action Projects Review of the I-710 Recirculated Draft EIR/EIS with the Los Angeles County Metropolitan Transportation Authority Recommendation: A. Find that the approval of the proposed Measure R Funding Agreement for the Interstate 710 South Early Action Projects (hereinafter referred to as the “Measure R Funding Agreement) (attached herewith) is exempt from the California Environmental Quality Act (CEQA) review, in accordance with CEQA Guidelines Section 15262, because the project only involves feasibility or planning studies for possible future actions which the City has not approved, adopted, or funded; and B. Approval to enter into the Measure R Funding Agreement between the Los Angeles County Metropolitan Transportation Authority (Metro) and the City of Vernon for City staff’s continued participation, coordination, and to provide technical support for the I-710 Corridor Project including the review of the I-710 Recirculated Draft Environmental Impact Report/Environmental Impact Study (hereinafter referred to as the “Recirculated Draft EIR/EIS”) for a not to exceed amount of $18,000 for the period ending June 30, 2018; and C. Authorize the Mayor to execute the Measure R Funding Agreement for the Recirculated Draft EIR/EIS. 15. Increase in Cost to the Subrecipient Agreement between the City of Vernon and the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority for the Purposes of the Proposition 84 Grant Program Recommendation: A. Find that approval of the increase in cost to the Subrecipient Agreement is exempt under the California Environmental Quality Act (CEQA) in accordance with Regular City Council Meeting Minutes November 1, 2016 Page 4 of 8 Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment, and find that for the construction and installation of two (2) tree box filters in a transportation corridor are categorically exempt under the CEQA in accordance with Guidelines Section 15303, Class 3 because: (i) no significant physical changes will occur as a result of this approval; (ii) the project will consist of minor construction and connection to an existing facility (catch basin) to improve the water quality in the Los Angeles River, (iii) the project is an area where all public services and facilities are available to allow for maximum development permissible in the General Plan, (iv) the project does not involve significant amounts of hazardous substances, and (v) the area is not in an environmentally sensitive area, and; and B. Authorize an increase in cost of $14,476.82 to the Subrecipient Agreement between the City of Vernon (“City”) and the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (“GWMA”). 16. Legal Services Agreement with Richards, Watson & Gershon for Litigation regarding the Los Angeles Municipal National Pollution Discharge Elimination System Permit Recommendation: A. Find that because the proposed action will not result in direct or indirect physical changes in the environment, it does not constitute a “project” as defined by California Environmental Quality Act (“CEQA”) Guidelines Section 15378 and is therefore not subject to CEQA review. Furthermore, even if it were a project, because such activity will not have any effect on the environment, this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Authorize an $8,000 increase in cost for legal services provided by Richards, Watson & Gershon (“RWG”) under their current Legal Services Agreement with the City of Vernon (copy attached) to continue representing the City, as needed to protect the City’s interests, as a real party in interest in litigation challenging a Final Order of the State Water Board which approved the National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) Permit Order No. R4-2012-0175 (“Municipal NPDES Permit) as amended by Order WQ 2015-0075. NEW BUSINESS City Administration Department 17. Appointment of Eligible Individual to Serve on the Vernon CommUNITY Fund Grant Committee Recommendation: A. Find that the appointment of an eligible individual to serve on the Vernon CommUNITY Fund Grant Committee is exempt from California Environmental Quality Act (“CEQA”) review, because it is an administrative action that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378; and B. Appoint an eligible individual to serve on the Vernon CommUNITY Fund Grant Committee in a Vernon Area Representative Seat with a term of November 1, 2016 to June 30, 2018. City Administrator Carlos Fandino reported on the proposed. Regular City Council Meeting Minutes November 1, 2016 Page 5 of 8 Councilmember Ybarra recused herself for this item. Mayor Pro-Tem Woodruff Perez asked Senior Advisor to the City Administrator Fred MacFarlane what characteristics would make a good representative for this seat. Senior Advisor MacFarlane responded with his opinion on the criteria a representative should possess. Mayor Davis nominated Al Rios for the Vernon Area Representative Seat, seconded by Councilmember Lopez. Motion failed, 2-2. Davis: Yes Woodruff-Perez: No Martinez: No Ybarra: Recused Lopez: Yes Mayor Pro-Tem Woodruff-Perez nominated Sandra Villarreal for the Vernon Area Representative Seat, seconded by Councilmember Martinez. Motion failed, 2-2. Davis: No Woodruff-Perez: Yes Martinez: Yes Ybarra: Recused Lopez: No City Clerk Maria Ayala stated, on City Attorney Patel’s advisement, Ybarra could join the meeting and vote on the item. Councilmember Ybarra un-recused herself. City Clerk Ayala announced a new roll call vote would be taken on the two nominations. Councilmember Ybarra inquired about the details of the representative seat. Senior Advisor MacFarlane responded. It was moved by Davis and seconded by Lopez to approve the appointment of Al Rios to the Vernon Area Representative Seat of the Vernon CommUNITY Fund Grant Committee. Motion failed, 2-3. Davis: Yes Woodruff-Perez: No Martinez: No Ybarra: No Lopez: Yes It was moved by Woodruff-Perez and seconded by Martinez to approve the appointment of Sandra Villarreal to the Vernon Area Representative Seat of the Vernon CommUNITY Fund Grant Committee. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes 18. Appointment of Eligible Individual to Serve on the Vernon Business & Industry Commission Recommendation: A. Find that the appointment of an eligible individual to serve on the Vernon Business & Industry Commission is exempt from California Environmental Quality Act (“CEQA”) review, because they are administrative actions that will not result in direct or indirect physical changes in the environment, and therefore do not constitute a “project” as defined by CEQA Guidelines section 15378; and Regular City Council Meeting Minutes November 1, 2016 Page 6 of 8 B. Appoint an eligible individual to serve on the Vernon Business & Industry Commission for an unexpired term in a Vernon Real Estate Representative Seat until the term expires on June 30, 2018. City Administrator Fandino reported on the proposed. Councilmember Ybarra nominated Brandon Gill. Nomination failed for lack of a second. Mayor Davis nominated Jack Whalen for the Vernon Real Estate Representative Seat, seconded by Councilmember Martinez. It was moved by Davis and seconded by Martinez to approve the appointment of Jack Whalen to the Vernon Real Estate Representative Seat of the Vernon Business & Industry Commission. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes City Clerk Department 19. Adoption of Two (2) Resolutions: 1) Calling for a General Municipal Election to be Held on Tuesday, April 11, 2017; and 2) Requesting the Board of Supervisors of the County of Los Angeles to Render Specified Services for Conduct of Said General Municipal Election Recommendation: A. Find that approval of the Resolutions is exempt from California Environmental Quality Act (“CEQA”) review, because it is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378; and B. Adopt a Resolution of the City Council of the City of Vernon, California, Calling and Giving Notice of an All-Mail Ballot General Municipal Election to be held on Tuesday, April 11, 2017 for the Election of a Certain Officer as required by the provisions of the Charter of the City of Vernon; and C. Adopt a Resolution of the City Council of the City of Vernon, California, Requesting the Board of Supervisors of the County of Los Angeles to Render Specified Services to the City Relating to the Conduct of the General Municipal Election to be Held on Tuesday, April 11, 2017. City Clerk Ayala reported on the proposed. It was moved by Lopez and seconded by Martinez to approve Resolution No. 2016-62 and Resolution No. 2016-63. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes Public Works, Water and Development Services Department Regular City Council Meeting Minutes November 1, 2016 Page 7 of 8 20. Results of the Tenant Relocation Survey Related to the City’s Housing Remodel Project and Possible Divestment of Two City-Owned Housing Units in Huntington Park Recommendation: A. Find that the recommendations below are exempt under the California Environmental Quality Act (“CEQA”) because such are not a “project” as that term is defined in the CEQA Guidelines Section 15378(b)(2), because such actions constitute an administrative activity; and even if it were a project, it would still be exempt 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 B. Conduct a discussion regarding the results of the Tenant Relocation Survey; and C. Proceed with the Vernon Housing Commission’s recommendation to sell the two remaining City-owned housing units located at 6010 Oak Street and 2915 E. 60th Place in the City of Huntington Park; and D. Authorize staff to designate the proceeds from the sale of the two Huntington Park units solely for capital improvements and other projects related to the existing housing stock in the City of Vernon. Public Works, Water and Development Services Director Derek Wieske reported on the proposed. A dialogue ensued between staff and Council about the tenant relocation survey. It was moved by Ybarra and seconded by Lopez to proceed with selling the two remaining City- owned Huntington Park housing units and authorize staff to designate the proceeds from the sale solely for capital improvements and other projects related to the existing housing stock. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes ORAL REPORTS 21. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. Police Chief Daniel Calleros reported on the following: An October 28th robbery near the 5300 block of Downy Road; an October 28th robbery near 5600 block of Alcoa Avenue; November 6th active shooter training exercise; vandalism on 4700 block of District Avenue; and graffiti near the 3300 block of 50th street. Public Works, Water and Development Services Director Derek Wieske reported the following: a staff attended storm water workshop; upcoming board and commission meetings; and annual building activity. Gas and Electric Director Kelly Nguyen reported on October 30th power outage on Downy Avenue and 50th street. Utilities Engineering Manager Ali Nour provided a PowerPoint presentation on the Maisano Substation. Finance Director William Fox reported on the expedited audit report. Human Resources Director Michael Earl reported on employee open enrollment. Mayor Davis wanted to note graffiti near 5500 Soto Street. Regular City Council Meeting Minutes November 1, 2016 Page 8 of 8 City Administrator Carlos Fandino reported on the following: the JLAC audit and compliance; ongoing meetings with the Chamber; Fire Chief interviews; open enrollment; and the Halloween event. 22. City Council Reports – brief AB1234 reports, or report on: activities, announcements, or directives to staff. Mayor Davis reported on the sanitation district meeting he attended. With no further business, at 11:26 a.m., Mayor Davis adjourned the meeting. ________________________ William J. Davis Mayor ATTEST: _________________________ Maria E. Ayala City Clerk MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, NOVEMBER 15, 2016, IN COUNCIL CHAMBER OF CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: Davis, Woodruff-Perez Martinez, Ybarra, and Lopez MEMBERS ABSENT: The meeting was called to order at 9:00 a.m. by Mayor Davis. Councilmember Ybarra led the flag salute. CHANGES TO THE AGENDA City Clerk Maria Ayala announced that an updated redlined draft of Agenda Item No. 1 was provided to Council and community for this first reading. The final draft will be provided at the second reading. PUBLIC COMMENT Mayor Davis 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. Sandra Rivera Orozco, Southeast Political Activist, spoke about legislation relating to neurological conditions, the National Multiple Sclerosis Society, and cannabis. PUBLIC HEARING Public Works, Water and Development Services Department 1. Public Hearing on the Proposed Amendments to Chapters 7 and 24 of the Vernon Municipal Code An Ordinance of the City Council of the City of Vernon amending various sections of Chapters 7, Fire Regulations and 24, Building and Construction, of the Vernon Municipal Code, along with amendments, additions and deletions and adopting by reference the following codes: (1) the 2016 California Fire Code, 24 CCR Part 9; (2) the 2016 California Building Code, 24 CCR Part 2; (3) the 2016 California Electrical Code, 24 CCR Part 3; (4) the 2006 Edition of the International Code Council Electrical Code Administrative Provisions; (5) the 2016 California Mechanical Code, 24 CCR Part 4; (6) the 2016 California Plumbing Code, 24 CCR Part 5; (7) the 2016 California Existing Building Code, 24 CCR Part 10; (8) the 2015 International Existing Building Code; (9) the 2016 California Residential Code, 24 CCR Part 2.5; (10) the 2016 California Green Building Standards Code also called the CALgreen Code, 24 CCR Part 11, and; (11) the 2016 California Energy Code, 24 CCR Part 6; repealing all prior ordinances and parts of ordinances in conflict therewith (First Reading) Recommendation: A. Find that the action proposed herein is not subject to the California Environmental Quality Act (CEQA) as this ordinance is not considered a “project” under CEQA which is defined as an action directly undertaken by a public agency which has the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, Cal. Pub. Res. Code Section 21065. Under the proposed ordinance, no such activity is being undertaken. Even if the ordinance were to be considered a “project” under CEQA, which is not the case, the ordinance would be 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 Regular City Council Meeting Minutes November 15, 2016 Page 2 of 7 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 ordinance involves the adoption of state- mandated construction codes, and the revisions to those codes merely improve the safety of buildings and will not have any effect on the environment; and B. Approve the first reading, and adopt at a subsequent meeting, an ordinance amending various sections of Chapters 7 and 24 of the Vernon Municipal Code, along with amendments, additions and deletions and adopting by reference the following codes: (1) the 2016 California Fire Code, 24 California Code of Regulations (CCR) Part 9; (2) the 2016 California Building Code, 24 CCR Part 2; (3) the 2016 California Electrical Code, 24 CCR Part 3; (4) the 2006 Edition of the International Code Council (ICC) electrical Code Administrative Provisions; (5) the 2016 California Mechanical Code, 24 CCR Part 4; (6) the 2016 California Plumbing Code, 24 CCR Part 5; (7) the 2016 California Existing Building Code, 24 CCR Part 10; (8) the 2015 International Existing Building Code; (9) the 2016 California Residential Code, 24 CCR Part 2.5; (10) the 2016 California Green Building Standards Code also called the CALGreen Code, 24 CCR Part 11, and; (11) the 2016 California Energy Code, 24 CCR Part 6. At 9:09 a.m. Mayor Davis opened the public hearing. Public Works, Water and Development Services Department Director Derek Wieske reported on the proposed, and also indicated that his comments were also relevant to Agenda Item No. 15, as the two items are closely related. No public comment was provided. At 9:17 a.m. Mayor Davis closed the public hearing. It was moved by Ybarra and seconded by Woodruff-Perez to approve the first reading, and adopt at a subsequent meeting, an ordinance amending various sections of Chapters 7 and 24 of the Vernon Municipal Code. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes PRESENTATION 2. Service Pin Awards for October 2016 NAME DEPARTMENT TITLE YEARS Michelle J. Tolmasoff Vernon Gas & Electric Senior Administrative Assistant 15 Willie A. Carram Vernon Gas & Electric Utilities Dispatcher 10 Anthony Zarate Public Works Administrative Secretary 5 Human Resources Director Michael Earl presented the awards to Anthony Zarate and Michelle J. Tolmasoff who were in attendance. Willie A. Carram was not in attendance. CONSENT CALENDAR It was moved by Ybarra and seconded by Lopez to approve all matters listed under the Consent Calendar under one motion as presented. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Regular City Council Meeting Minutes November 15, 2016 Page 3 of 7 Martinez: Yes Ybarra: Yes Lopez: Yes Claims Against the City – Received and Filed 3. Claim for Damages from Salvador Vargas received November 8, 2016 in the amount of $1236.14 Warrant Registers 4. Ratification of the following City Warrant Register to record the following voided checks: A. City Warrant Register No. 1458 to record voided Check No. 352559 in the amount of $45.50; and B. City Warrant Register No. 1459 to record voided Check No. 352725 in the amount of $871.46. 5. Approval of City Payroll Warrant Register No. 725 totaling $3,297,151.95, which covers the period of October 1 through October 31, 2016 and consists of the following: A. Ratification of direct deposits, checks and taxes totaling $2,280,894.39; and B. Checks and electronic fund transfers (EFT) totaling $1,016,257.56. 6. Approval of City Warrant Register No. 1460, totaling $959,250.74, which covers the period of October 25 through November 7, 2016, and consists of the following: A. Ratification of wire transfers totaling $548,077.82; and B. Ratification of the issuance of early checks totaling $325,940.90; and C. Authorization to issue pending checks totaling $85,232.02; and D. Voided check No. 352786 totaling $571.38. 7. Approval of Light & Power Warrant Register No. 425, totaling $2,103,285.72, which covers the period of October 25 through November 7, 2016, and consists of the following: A. Ratification of wire transfers totaling $1,802,310.73; and B. Ratification of the issuance of early checks totaling $187,447.62; and C. Authorization to issue pending checks totaling $113,527.37. 8. Approval of Gas Warrant Register No. 213, totaling $1,731,513.59 which covers the period of October 25 through November 7, 2016, and consists of the following: A. Ratification of wire transfers totaling $1,592,338.64; and B. Ratification of the issuance of early checks totaling $138,250.51; and C. Authorization to issue pending checks totaling $924.44. Fire Department 9. Activity Report for the period of October 1 through October 15, 2016 Regular City Council Meeting Minutes November 15, 2016 Page 4 of 7 10. Activity Report for the period of October 16 through October 31, 2016 Health and Environmental Control Department 11. October 2016 Monthly Report Police Department 12. Activity Log and Statistical Summary of Arrests and Activities for the period of October 16, through October 31, 2016, to be received and filed Public Works, Water and Development Services Department 13. Building Department Report for the Month of October 2016 14. Acceptance of Electrical Easement at 3200 Slauson Avenue (APN 6310-027-023) Recommendation: A. Find that the acceptance of the Electrical Easement proposed in this staff report is not a “project” as that term is defined under the California Environmental Quality Act (CEQA) Guidelines Section 15378, and even if it were a project, it would be categorically exempt in accordance with CEQA Guidelines Sections 15301 (maintenance, repair or minor alteration of an existing facility and involves negligible or no expansion of an existing use) and 15061(b)(3) (general rule that CEQA only applies to projects that may have a significant effect on the environment); and B. Accept the Electrical Easement, in substantially the same form as attached to this staff report, and authorize the Mayor to execute the Certificate of Acceptance. NEW BUSINESS Public Works, Water and Development Services Department 15. Resolution No. 2016-64 - A Resolution of the City Council of the City of Vernon making express findings and determinations that modifications to the following California Buildings Standards Code: the 2016 California Fire Code, 24 CCR Part 9; the 2016 California Building Code, 24 CCR Part 2; the 2016 California Electrical Code, 24 CCR Part 3; the 2016 California Mechanical Code, 24 CCR Part 4; the 2016 California Plumbing Code, 24 CCR Part 5; the 2016 California Existing Building Code, 24 CCR Part 10; the 2016 California Residential Code, 24 CCR Part 2.5; the 2016 California Green Building Standards Code also called the CALgreen Code, 24 CCR Part 11, and; the 2016 California Energy Code, 24 CCR Part 6; and the 2006 Edition of the International Code Council Electrical Code Administrative Provisions; and the 2015 international existing building code are reasonably necessary because of local climatic, geological or topographical conditions Recommendation: A. Find that the action proposed herein is not subject to the California Environmental Quality Act (CEQA) as the resolution is not considered a “project” under CEQA which is defined as an action directly undertaken by a public agency which has the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. CEQA Guidelines section 15378(a); Cal. Pub. Res. Code section 21065. Under the proposed resolution, no such activity is being undertaken. Even if the resolution were to be considered a “project” under CEQA, which is not the case, the resolution would be covered by the general rule set forth in CEQA Guidelines Section Regular City Council Meeting Minutes November 15, 2016 Page 5 of 7 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 resolution involves making express findings and determinations that modifications to each Code are reasonably necessary due to local climatic, geological, or topographical conditions and will not have any effect on the environment; and B. Adopt the proposed resolution making express findings and determinations that modifications to each Code are reasonably necessary due to local climatic, geological, or topographical conditions. Director Wieske reported on the proposed. It was moved by Martinez and seconded by Ybarra to approve Resolution No. 2016-64. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes 16. Resolution No. 2016-65 - A Resolution of the City Council of the City of Vernon approving and accepting the grant deed dedicating in fee a portion of the property located at 4415 Bandini Boulevard Recommendation: A. Find that accepting the Grant Deed is exempt from the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15301(c) because if any construction occurs as a result of accepting and executing the Grant Deed, the work would merely involve negligible expansion of an existing street; and B. Adopt the proposed resolution to authorize the Mayor and City Clerk to execute the Certificate of Acceptance and the Grant Deed for approximately 3,000 square feet of land located at 4415 Bandini Boulevard. Director Wieske reported on the proposed. It was moved by Ybarra and seconded by Lopez to approve Resolution No. 2016-65. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes 17. Resolution No. 2016-66 - A Resolution of the City Council of the City of Vernon approving and accepting the grant deed dedicating in fee a portion of the property located at 4333 Bandini Boulevard Recommendation: A. Find that accepting the Grant Deed is exempt from the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15301(c) because if any construction occurs as a result of accepting and executing the Grant Regular City Council Meeting Minutes November 15, 2016 Page 6 of 7 Deed, the work would merely involve negligible expansion of an existing street; and B. Adopt the proposed resolution to authorize the Mayor and City Clerk to execute the Certificate of Acceptance and the Grant Deed for approximately 2,500 square feet of land located at 4333 Bandini Boulevard. Director Wieske reported on the proposed. It was moved by Woodruff-Perez and seconded by Martinez to approve Resolution No. 2016-66. Motion carried, 5-0. Davis: Yes Woodruff-Perez: Yes Martinez: Yes Ybarra: Yes Lopez: Yes ORAL REPORTS 18. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. Police Chief Daniel Calleros reported on the following: Homicide Investigation near the 3600 block of Alameda Street; continued protest at Farmer John; and dumpster fires in the City. Fire Chief Andrew Guth reported on the upcoming toy drive at Vernon Fire stations. Public Works, Water and Development Services Department Director Derek Wieske reported on the following: Road work projects; Local transportation grant opportunities; and Vernon Housing Commission meeting update on housing remolds. Human Resources Director Michael Earl reported on the open enrollment period and healthcare informational sessions. City Clerk Maria Ayala reported on the upcoming 2017 election and the possible implications of SB 415 to future City elections. City Administrator Carlos Fandino reported on the following: the Gas and Electric conference; Fire Chief interviews; the Special Vernon Housing Commission meeting debrief; the Business and Industry Commission meeting debrief; Possible Ballot Measure for proposed a Utility User Tax; and outreach and education efforts. 19. City Council Reports – brief AB1234 reports, or report on: activities, announcements, or directives to staff. No reports provided. Mayor Davis recessed the meeting at 9:42 a.m. and reconvened at 9:43 a.m. CLOSED SESSION At 9:43 a.m., the City Council entered into closed session to discuss the following agendized items: 20. PUBLIC EMPLOYMENT Government Code Section 54957(b)(1) Title: Fire Chief At ??? a.m. the City Council exited closed session. City Attorney Hema Patel announced that one item was discussed and there was nothing to report out. 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UJt0oFai5bry,(JoJef69 OJru<r-F29FI-oul (J >Jde<oIJJ FYo UJ-o J FoF ult = ozfl!N Fo2^UJY@;;E i6Ed(Jur_uJao ^E=:i F u.lEzt) gEH dl<o= otr ozll! a0 G o uJt oIo REGEIVED N0v 3 0 2016 CITY CLERl('S OFFICT RECEIVED lSV 2 3 20t CITY ADMIf'IISTRATI()N STAFF REPORT &n+-o GAS & ELECTRIC DEPARTMENT DATE: TO: FROM: R.E: "4w December 6, 2016 Honorable Mayor and City Council Kelly Nguyen, Director of Gas & Electric Department Originator: Jessica Balandran, Administrative Analyst Base Contract ("NAESB") with City of Long Beach for Sale and Purchase of Natural Gas Recommendation Find that (a) the agreement between the City of Vemon and City of Long Beach is not in reference to a "project" subject to the Califomia Environmental Quality Act ('CEQA) under Guidelines section 15378 because it involves the administrative activiry of purchasing gas; 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 gas 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 govemmental agency at that time when actual details of any physical proposal would be more than speculative; and Authorize the Director of Gas & Electric (as per Resolution No. 9280) to execute the North American Energy Standards Board ("NAESB") contract by and between the City of Vemon C'City) and City of Long Beach ("Long Beach") in substantially the same form as attached to the staff report, for the purpose ofbuying and selling natural gas to or from Long Beach, in compliance with the general terms established in the agreement. Pursuant to Vemon Municipal Code $ 2.17.12(A)(6), competitive bidding is not required because this is a contract for gas and/or electrical power for the City's power utility, and it would be commercially unreasonable to procure the gas or electricity through standard bidding or request for proposal procedures. Backqround The City owns and operates a municipal nahfal gas distribution system for supplying the City's municipal electric system with natural gas and providing natural gas to businesses and industries within the City. On March 19,2007, Resolution No. 9280 was adopted by the City Council, Page I of 2 thereby granting authority to the Director of Gas & Electric to enter into various contracts for the purchase and sale of electric energy, natural gas, and financial hedges, subject to ratifrcation of the City Council. Vemon Gas & Electric desires to sell and purchase natural gas to or from Long Beach, under general terms and conditions published by the NAESB. The Director of Vernon Gas & Electric has determined that it is to the City's advantage, and in the public interest of the customers and residents of the City, to enter into a contract with Long Beach for the purchase and sale ofnatural gas. This agreement constitutes general terms and conditions only and does not obligate the City to enter into a specific purchase or sale transaction; however, the result of fully executing the agreement will provide the ability for the City to transact with Long Beach. The City has similar agreements in place with other counterparties. The key objectives of the agreement with Long Beach are as follows: o To expand the Ciry's counterparty pool. Create an oppomrnity for better pricing and liquidiryo To maximize trading capability Vemon Gas & Electric staff recommend the NAESB Contract with Long Beach be approved. Attached herewith is a copy of the proposed Base Contract (NAESB) for Sale and Purchase of Natural Gas with Long Beach and supporting documents. The Base Contract (NAESB) and Speciat Provisions have been reviewed and approved by the City Attomey's office. Fiscal Impact The agreement with Long Beach will provide the city flexibiliry to buy and sell natural gas as needs dictate, which could potentially produce a monetary benefit for the City. The exact financial impact of this agreement is unknown at this time. Attachment(s) 1. Base Contract (NAESB) for Sale and Purchase of Natural Gas between the City of Vemon and City of Long Beach including Special Provisions Page 2 of 2 Base Contract for Sale and Purchase of Natural Gas This Base Conlracl is entered into as of the following date: Th€ partie€ lo this Base Contraci ar€ the following; PARTY A CITY OF VER'{O PARrY NAre PARTY B CITY OF LONG BEACH Ga6 & El€clric Dopt ,{305 Santa Fe Avo Vernon. CA 90058 ADDRESS Gas and Oil Departsnent 2400 E. Spring St Lono Bcach. CA 90806 www.cjty ofvemon.org aarsrf,Ess rEEsrTE www.longbeach.gov COHTRACT NUI BER 060883022 Dt-rv-sorru aER 075295A32 i US FEDEML: 95€@OE06 OTHER:TAX D NUHBERS x US FEDERAL: 956000733 OTHER: Califomis JUREDICIION OF ORGANIZAIION California Corporrtion LLC Limitcd Partnership PairEEhip LLP x Oh€r: City of Vsmon, a Chrfter€d Citv and MunicioalCom. of ihe Stato of Celfomie COI'PANY fWE Corporslion ttc Lirnit d P.rhorahip PatDEhip [P X Ottrsr: ---_jEl4lC!a GUARANfOR OF APPUCABrI) CONTACT INFORMATION AftN: Shpvn Sl,€ihed.h & Ehrin $Noval TEL* 3234261121 FNI: 323$2e3'2g Elrlr- ..h.dlAE!ru9!E!9 a at n lovat&l.vdnoo.ct-tB . Cd ,ERCIAL Arrx: 9,!tg,]!r4g tELr; G!jlL!!gz!l! F^xt: llrilLElLlglll EIAIL: atannb"btfi,/E,/o''o!..ch, @v AfiN: *e$t Sl,E,rihadch g Elreih sandoval fEL* 323-A2&1124 FNr: 3842e3629 E,,AIL:& e sanclov al laal.ya no n - ca- us . SCHEDUUNG ATrN: C/i..t ,,dne $hcl Enslv Not',t A,'t''ic.l 7EL* l!!!.}!:g3l!4 FAI: 658132G.2665 E AIL: dt,dl-m,fl,nrttuh.llcofi AnN: tlenE Patel fEL*FAx* 3Et2Ll!31 EINL : hortdoc i.vcmon. cr -us . cot{7Rrcrr o LEC L xOflCeS arr : @M!lMb!tEL* l!,iAlMT F xlj (!!:!L!Eg!gl9 EY L: Rlch,,d',nfionvAlonafucl'-oov ArrN: J4yti Yeldaz fEL*: 3n-5e?Ea11 E\t-825 FAXI: 321a26-1431 EIA]L: , CPEDtf AfiN: H, C.rnqoo Sl lh El lL: C,,',so,-5/t ilhtatondoch-oov ATrN: fEL* E,,AI.: 323-5A3-AA11 En- 275 FAX| 32312A.3629 . TRATJSACflOTV coxFtR Ano,,s ATfN: pqp]L'.tutla fELz $2.570-20€6 Fr(r. !!el$:.]!!Z E llAl L : ti[',,lr-turL.Eond{.dt.o@ ACCOUNTING INFORMATION ATTN: TEL': Citv of Vemon TEasuru Deoartment 323-543-881 1 En 275 FAX*: 323-826-3629 EmAIL: invoicc!@cl.Y.mon.c!.u6 . tllvotcEs. PAY EtiTS. SETTLEHENTS ATrl{: Lono Ea.ch Gaa rnd Oil D.rr.rt .nt TEL*: M:I.lZLilElg FAxt lsaa 670-2145 EMAIL: BAI{K:ABA: ACCT: OTHER DETAILS Y/IRE TRANSFER I,UTEERS (IF APPUCABIE) BAI.K: lb!94'!,DLA!9!!@, ^B : f!g!g!E Accr: n,ooltu2 OIHER IEIAILS: Cln! ol Load B.lch Cad, Conc,/'tadon AccL aA,,X: EgtLWgtLfutA__tot: 8i12fr9381 accr: Eo3627g1 OfHeRDEf,,tL.s: G.s &Electic Ae7. ACH NU'I8ERS (IF APPLrcABLE) BANK: ^sr, !E!8038! accr: 4g)l9!!1 OrHER DErAL.s: Cltv ol Lono E..ch Cr.h Concarffio!, ^cEt- ATTNi TElt FAXt EI'AIL crrEo(s ff APtuC ga a'7u: Leae-,,,sl-9,4,l,dlLwfi ,/rDoREss: zl@E jsllEs.jtg Lono Bech. CA 9O'OG Copyrighl O 2006 Nofth Arnerican Endgy St8nderds Board, lnc All Rights Rcaorved iIAESB Standsrd 6 3.1 Ssptember 5, 2006 Base Contract for Sale and Purchase of Natural Gas (Continued) This Base Cont'ad incorporates by rebrence br all purposes the General Tenns and Conditions for Sale and Purdrase of Natural Gas published ry the No.th Amedcan Eneey Slandards B@rd. The partiG hereby agree to the Ulorving pro/isions offered in saij General Tems and Corditbns. ln the event the pariies hil to cfEck a box, the specjfied &hult pmvision shall apply. Seled the aopro(lrhte box(es) frcrn eadl sedim: Section 1.2 I Oral(defauli)Transaction ORProcedure E Written Section 10.2 X No Additional Additional Events of tr lndebtedness Default E Party A: Evenb of Oefault (defauh) Cross Default E Party B fl Transadional Cross Default Seqtion 2.7 E l^p-lzlBusiness Days ater receipt (default) Confirm Deadline OR D _ Business Days affer receipt Sectlon 2.8 E Seller (default) Confirming Party ORE Buyer Section 3.2 E Cover Standard (default)Performance ORObliFtion E Spot Price Standard Soction 10.3.1 E Earty Termination Darnages Apply (default) Early Termination OR Damages E Early Temination Damag6 Do Not Apply Note: The foltowing Spoa Price Publicatidt aPlles to both or lhe immodleLlv orecedino.Sec{iofl 10.3.2 E Oiher Agreem€nt Setofis Apply (deiault) OtherAgreement tr Bilate.al (default) setotrs tr Triangurar OR E OtherAgreement Setofr oo Not Apply Section 2.31 Spot Price Publication a OR tr Gas Daily Midpoint (default) Secdon 6 I Buyer Pays At and Afrer Delivery Point (default)Taxes ORE SellerPays Before and At Oelivery Point SGciion 7,2 I 256 Oay of Month following Month of delivery Payment Date (default) OR['l 24th Dav ot Month follo ,ino Month of deliveN Section r5.5 Catifomia Choice Of Law S€cton 7,2 E Wire transfer (detault) Method of Payment E Automated Clearinghouse Credit (ACH)E check Section 15.10 Confidentiality tr OR! Confi dentiality applies (default) Contidentiality does not apply secton 7.7 I Nening applies (dsfault)Netting ORtr Nettino does not aoDlv ESpsclal Provisions Number of sheets attachedl EAddondum(s): lN WTNESS WHEREOF, the parties hereto have execuled this Base Contract in duplicale. CiW ofVernon City ot Long Beach By By Kelly Nguyen Diroctor of Gas E Eleclric fffLE Copyright @ 2006 North American Energy Standards Board, lnc- All Rights Reserved Page 2 of 13 NAESBStandard63l September 5, 2006 SECTION 1. General Terms and Conditions Base Contract for Sale and Purchase of Natural Gas PURPOSE AND PROCEDURES 1.1. These General Terms and Conditions are intended lo facilitate purchase and sale fansactions of Gas on a Firm or lnterruptible basis. "Buyed' refers to the party receiving Gas and 'Sellei' refers to the party delivering Gas. The entire agreernent '1.3. tf a sending party's Transac.tion Confirmation is matedally different ftom the receiving partys understandlng of the agreement refened to in Section 1.2, sudr receMng party shall notity the sending parly via facsimile, EDI or mutually agreeable eledmnic means by the Cotr|firm Deadline, unless sudl receiving party has previously sent a Transadion Confirmation lo the sending pady. The failure of the receiving party to so notiry he s€nding perty in writing by the Confirm Deadline constiMes the reoeiving partys agreement to the terms oJ r)e transaclion described in the sending party's Transac'tion Confirmation. lf there are any mateial dfierences between timely sent TEnsadion Confirmations goveming the same lransadion, then neither Transaction Confirmation shall be binding unlil or unless such differences are resofued induding the use oI any evidence that clearly resofues the differences in the Transaction Confirmations. ln the event of a conflid among lhe terms of 0 a binding Transaclion Confnnation pursuant lo Sedbn 1 2. (iD the oral agreem€nt of the parlies Mlich may be ev lenced by a recorded con!,/ersatioo, where the parties have sdeded he Oral Transaclion Procedure of the Base Contract (iii) the Base Contrad, and (iv) these General Terms and Conditions, he tems oI the doqJments shall govem in the priority listed in this sentence. 1.4, The parties agree that each party may electronically record all telephone conversations with respect to this Contraci between heir respedive employees, without arry special or further notice to the other party. Eadr party shall obtain any necessary consent of its agents aM employees to such recording, \Mere the parties have selecled the Oral Transaction Procedure in Section 1.2 of lhe Base Contracl, lhe parties agree not to contest the validity or enrorceability of telephonic recordings entered into in accordance wilh the requirements of this Base Contracl sEcTtoN 2.DEFINITIONS The lerms set forth below shall have the meaning ascribed to them below. Other terms are also defined elsewhere in the Contraci and shall have the meanings ascribed to them herern. 7.'l , "Additional Event of Defaulf shall mean Transactional Cross Default or lndebtedness Cross Oefault, each as and if selec{ed by the parties pursuant to the Base Contract. ?..2. "Affiliate" shall mean, in rdalion to any person, any entity contolled, directly or indirecdy, by he person, any entily that controls, drec y or indiredly, the person or any entity diredly or indiredly under comrnon control with he person. For lhis purpose, 'conlrcl" of any entity or peEon rneans ownership ofat lead 50 percent of the \oting potlEr of the entity or person, Copyright @ 2006 Nonh American Energy Slandards Board, lnc.NAESB Standard 6 3.1 September 5, 2006 n The parties have selecH oither the "Oral Transaction Procedure" or the "Written Transaction Procedur€" a3 indicabd on the Base Contnct Oral Transaction Procedure: 1,2. The partres will use the following Transaction Confirmation procedure Any Gas purchaso and sale transaction may be effecluated in an EDI transmission or telephone conversation with the offer and acceptance constiluling the agreement of lhe parties. The parties shall be legally bound from the time they so agree to transaction terms and may each rely thereon Any such tlansaclion shall be considered a "writing' and lo have been "signed'. Notwithstanding the foregoing sentence, the parties agree that Confirming Party shall, and the other party may, confirm a telephonic transaclion by sending the olher party a Transaction Confirmation by facsimile, EDI or mutually agreeable electronic means within three Business Days of a transaction covered by ihis Section 'l.2 (Oral Transaction Procedure) provided that the failure to send a Transaction Confirmation shall not invalidate the oral agreement of he parties. Confirming Party adopts its confirming letterhead, or lhe like, as its signature on any Transaclion Confirmation as the ideniificalion and authentication of Confirming Party lf the Transaction Confirmalion contains any provisions other than those relating to the commercial terms of the transaction (i.e., price, quantity, performance obligation, delivery point, period of delivery and/or transporletion conditions), which modiry or supplement the Base Contracl or General Terms and Conditlons of this Contracl (e.9, arbilralion or addilional representations and wananties), such provisions shall not be deemed to be accepted pursuant to Section 1.3 but must be expressly agreed to by both parties; provided lhat the foregoing shall not invalidate any transaclion agreed to by the oarlies. Written Transactlon Procedure; '1.2. The parties will use the following Transaclion Conlirmation procedure. Should the parties come to an agreement regarding a Gas purchase and sale transaction for a particular Delivery Period, the Confirming Party shall, and the other party may, record thal agreement on a Transaction Confirmation and communicate such Transaction Confirmalion by facsimile, EDI or mutually agreeable eleclronic means, to the other party by the close of lhe Business Day following the dale of agreement. The parties acknowledge that lheir agre€ment will not be binding until the exchange of nonconflicting Transaction Confirmations or the passage of the Confirm Deadline without obieclion from lhe receivino oartv. as orovided in Seclion 1 3. All Rights Reserved Page 3 of 13 2.3. Altemative Darnages' shall rnean sudr damag6, eprEss€d in drlars or dolbrs per MMBtu, as the parties shall agre€ upon in the Trar6aclion Conftmalion, in fie e€nt eittEr Se{er or &r}€r fails to p6rbm a Firm ouig:dbn to delive. Gas in he case of Seller or to l€(rive Gas in the c6e oI Bu),er. 2.4. "Base Confacf'shall mern a cont-act a(eqlted by the parties that incoeorates hese @|erd Tems and Conditims by referene; that specjfes lhe agreed selecliorE of gwisions cor ained tErein; and fid s€ts brtr ottE inbrmaiion Equired herein and any Specjal Proiisions and addendun(s) as identifed on pee orE. 2.5 . "Bdtish thermal trifl or 'Btu' sl€ll rEn the lntemati:nd BTU, wltidt is also called the Blu (lT). 2.6. "Business Day(s)" shall mean Monday through Friday, exduding Federal Banking Holidays for transaciions in the U S. 2.7. "Confirm Deadline" shall mean 5:00 p.m. in the receiving party's time zon€ on the second Business Day following the Day a Transaction Confirmation is received or, if applicable. on the Business Day agleed to by the parties in the Base Contrad; provided, if the Transaction Confirmalion is time stamped after 5:00 p m in the receiving partys time zone, it shall bo deemed received al the opening of the nexl Business Day. 2.8. "Mrming Party'shall rnean the porty deignaEd in the Ba$ Cont-at to pepare and forwad Transsdion Corfirmatirs io the otler parly. 2.9. 'Contrac.t' shall mean the legally-binding relationship eslablished by (i) the Base Contracf, (iD any and all binding Transaclion Confirmations and (iii) where the parties have selected the Oral Transadion Procedure in Sedjon 1 2 of the Base Contrac{, any and all transactions that the parti€s have entered into ihrough an EDI transmission or by telephone, but that have not been contirmed in e binding Transaclion Confirmation. all o, s,hich shall form a single irflegrated agreement between the parties. 2.1O. "Contracl Price" shall mean the amount expressed in U.S. Dollars per MMBIU to be paid by Buyer to Seller for lhe purchase of Gas as agreed to by lhe parties in a lrans€ciion. 2.11. "Contract Quantity' shall mean the quanry of Gas to be delivered and taken as agreed to by the parties in a transactbn 2.12. "Cover Standard', as referred to in Section 3.2, ghall mean that if there is an unexcused failure to trake or deliver any quantity of Gas pursuant to this Contract, ihen lhe performing party shall use commercially reasonable efforts to (D if Buyer ii the performing party, obtain Gas, (or an altemate fuel if eleded by Buyer and replacement Gas is not available), or (ii) if Seller is the performing party. s€ll Gas, in either case, al a price reasonable for the deliyery or produdion area, as applicable, consisteni wih: ihe amount of notice provided by the nonp€rforming party: the immediacy of the Buye/s Gas consumption needs or Selle/s Gas sales requirements, as applicable; the quantities involved: and the anticipated lengih of failure by the nonperforming party. 2.13. "Credit Support Obligation(s)" shall mean any obligation(s) to provide or establish dedit support br. or on behalf of, a party lo this Contrac{ sucfi as cash, an inevoc€ble standby letter of credit, a margin agreement, a prepayment, a security interest in an asset. guaranty, or other good and sufficjent security of a continuing nature. 2-14. "Day' shall mean a period of 24 conseqitue hours, coexlensive with a'day" as defined by the Receiving Transporter in a particular transaction. 2.15. "Delivery Pedod'shall be the period during which deliveries are to be made as agreed to by the parties in a transaction. 2.16. "Delivery Point(s)" shall mean such point(s) as are agreed to by the panies in a transadion. 2.17. "EDl" shall mean an elec{ronic data interchange pursuant to an agreement enteted into by the parties, specifc€lly relating to the communication ofTransaclion Confrmations under this Contrac{. 2.18. 'EFP" shall mean the purchase, ssle or exchange of nalural Gas as the "physical" side of an exchange for physical transaclion involving gas fulures contracis EFP shall incorporale he meaning and remedies of 'Firm", provided that a party's excuse for nonperformanca of ils obligations lo deliver or receive Gas will be govom€d by the rul6s ol lhe relevanl frIures exchange logulated under the Commodity Exchange Ac{. 2.19. "Firm" shall mean that either parly may intenupt its performance without liability only to the exlent that such porformance is prevented for reasons of Force Majeure: provided. however, that during Force Maieure intenuptions, the parly invoking Forco Majeure may be responsible for any lmbalance Charges as set forth in Section 4.3 related to its interruption afier the nomination is made to the Transporter and untjl the drange in deliveries and/or recoipts is confirmed by the Transporter. 2.2O. "Gas'' shall me€n any m tur6 of hydrocarbons and noncombustible gases in a gaseous slate consisting primarily of melhane. 2,21 . 'Guaranto/ shall mesn arry entity that tlas provijed a guarsnty qf h6 obligations of a parly tEreurds. 2.22. "lmbalance Charges" shall mean any fees, penalties, costs or charges (in cash or in kind) assessed by a Transporter for failure to satisfy the Transporte/s balance and/or nomination requirements. ?,73, "lndebtednoss Cross Default' shall mean if selec{ed on the Base Conlracl by the parties with respect to a party, thal it or its Guaranlor, if any, geeriencss a dgfault, or similar condilion or ev6nt however therein defined, under one or mole agreemenls or instrumdtts. individually or callectivaly, relating to ind€btednEss (sudr indebtedness to indude any obligation whethel presont or future, contingent or olherwise, as principalor surety or otherwise) for the payment or repayment of bonov'/ed money in an aggregale atnount greater than the threshold sp€ciried in ihe Base Conlract with respect to such parly or ils Guamntor, if any, which resulk in sudr indebtedness becoming immediaiely due and payable. Copyrirht@ 2006 North American Energy Standards Board, lnc All Rights ReseNed Page 4 of 13 NAESB Standard 6.3 1 Septe.nber 5, 2006 2.24. 'lnterruptible" shall mean that either party may intorrupt its performance at any time for any reason, whether ol not caused by an event ol Force Majeure, with no liability, except such intenupling party may be responsible for any lmbalance Charges as set fdrth in Section 4.3 related to its interruption affer the nomination is made to the Transporter and until the change in deliveries and/or receipts is confirmed by Transporter. 2.25. "MMBtu" shall mean one million British thermal units, which is equivalent to one dekatherm. 2.26. "Month" shall mean the period beginning on the lirst Day of the calendar month and ending immedi6tely prior lo the commenc€ment of the first Day ofthe nexl calendar month. 2.77. 'Payment Dale' shall mean a date, as indic€ted on the Base Contract, on or before which payment is due Seller tor Gas received by Buyer in the previous Month. 2.28. "Receiving Transponef' shall mean the Transporter receiving Gas at a Delivery Poinl, or absent sudr receiving Transporter, lhe Transporter delivering Gas at a Delivery Point. 2.29. "sdteduled Gas'shall mean the quanlity of Gas confirmed by Transporter(s) for movement, transportation or management. 2.30. "Specified Transaction(s)' shall mean arry offler transadbn or agreameni bet\,veen he parties br tte Rrcftase, sale or exchange of physical G6, and any other t"ansadbn or agE€rneflt iJentified ai a Specjfed Transadim under tr€ Base Contracl. 2.31. 'Spot Price " as refened to in Section 3 2 shall mean the price listed in the publication indicated on the Base Conlrad, under lho listing applicable lo the geographic location dosest in proximity to the Delivery Point(s) for the relevant Day; provided, if there is no single price published for such location for such Day, but there is published a rang6 of prices, then the Spot Prics shall be tho avorage of auctt high and low prices. lf no price or range of prices is published ior such Day, then the Spot Price shall be the average ol the following: (i) the price (determined as statod above) for the first Day tor which a price or range of prices is published that next precedes the relevant Oayi and (ii) the price (delermined as stated above) for the frst Day tor wtlich a price or range of prices is published thal next follows the relevant Day 2.32. 'Transaction Conlirmation' shall mean a document, similar to the form of Exhibil A, setting forth the terms o, a transadion formed pursuanl to Sedion 'l for a panicular Delivery Period. 2.33. 'Transaciional Cross Oefaulf shall mean if selected on the Base Confact by the parties with respecl to a party. that it shall be in default, however therein defined. under any SpecifiBd Transaclion. 2.34 . T€minatioo Oplbn' shall rnean tle option of dtrler parly to Erml1aE a transadbn in lhe ev€r Ela tl€ oul€r pafy fails to perform a Firm oblgalim to &liver G8s n tl€ case of Seller or b reo*ve Gas in the case of Buter br a designaEd number of days dsing a perlod as sp€cit€d on th€ +plicable Transdhn Confumation. 2.35. "Transporta(s)' shall rnean all Gas g6t\ging or prpeline companies, or locd diEfriution cornpaniG, ding in fie @acity of a transpoat{, trarEpodirg Ga lbr Seler or Bu}€I upct€am or do^,rEteam. rBpedvdy, of the Delivery Pcint FJrcuflt to a particular trarEadion. SECTION 3, PERFORMANCE OBLIGATION 3.1. Seller agrees to sdl ard ddi/er, ard Buyer agrees to r@i\ie and trJrdEse, rhe Cont-aa amnity fu a panbiar transdion h acdrdance wih tle terms ol the Coflt-at Sah6 and purchaes will be on a Firm or htenuptible bas6, as agreed to by th3 panies in a transaclion NAESB Standard 6 3.1 Septomber 5, 2006 The parties have selecied either the "Cover Standard" or the "Spot Price Standard" 8s indicated on the Base Contract. Cover Standard: 3.2. The sole and exclusive remedy of lhe parties in the event ol a breach of a Firm obligation to deliver or receive Gas shall be recovery of the bllowing: (i) in the event of a breacfi by Seller on any Day(s), payment by Seller to Buyer in an amount equal to ihe positive difference, il any, between the purchase price paid by Buyer utilizing the Cover Standard and the Conlract Price, adiusted for commercially reasonable difierences in transportation costs to or from the Delivery Point(s), multiplied by the difference b€twaen lhe Contract Quantity and the quanlity actually deliver€d by S6ller for such Day(s) exduding any quantity for vvhich no replacement is available: or (ii) in the eyent of a breach by Buyer on any Day(s), payment by Buyer to Seller in the amounl equal to the positive differenca, i, any, between the Contrac{ Price and the price received by Seller utilizing the Covet Slandard for the resale of such Gas, adiusted br commercially reasonable diferences in transportation costs to or Irom lhe Delivery Point(s), multiplied by the difielence between the Contract Quantity and lhe quantity actually taken by Buyer for such Day(s) excluding any quantity for which no sale is availablei and (iii) in the event thal Buyer has us6d commercially reasonable efforls to replace the Gas or Seller has used commarcially reasonable efiorts to sell the Gas lo a third party, and no such replacement or sale is available ,or all or any portion of the Contracl Quantity of Gas, then in addition to (i) or (ii) above, as applicable, the sole and exclusive remedy of the perfoming party with respect to the Gas not replaced or sold shall be an amount equal to any unfavorable difierence between the Contracl Price and the Spot Price, adjusted for sucfi transportation to the applicable Delivery Poinl. multiplied by the quantity of such Gas not replaced or sold. lmbalance Charges shall not be recovered under thE Seclion 3.2, but Seller and/or Buyer shall be responsible for lmbalance Charges. i, any, as provided in Seclion 4.3. The amount of such ur(avorable difference shall be payable five Business Days after presentation ol the o€rforminq Darw's invoice. which shall set forth the basls upon which such amount was calculated Spot Price Standard: 3.2. The sole and exclusive remedy of the parlies in the event of a breach oi a Firm obligation to deliver or receive Gas shall be recovery of the following: (i) in the ev6nt of a breach by Seller on any Day(s), payment by Seller to Buyer in an amounl equal to ihe difierence betv'/een the Contracl Quantitv and the actual quantitv delivered by Seller and received bv Buyer for such Day(s), multiplied Copyright O 2006 North American Enelgy Srandards Board, lnc. All Righb Re€erued Page 5 ol 13 by the positive difierence, if any, obtained by subtracling the Contracl Price ftom the Spot Pricei or (ii) in lhe event of a breach by Buyer on any Day(s), payment by Buyer io Seller in an amounl equal lo the difference b€tween the Contracl Quantity and the actual quantity detivered by Seller and received by Buyer for such Day(s), muttiplied by the positive difference, if 8ny. obtained by subtlacting lhe applicable Spot Price from the Contrac{ Price. lmbalance Charges shall not be recovered under lhis Seclion 3.2, but Seller and,/or Buyer shatt be responsible for lmbalance Charges, if any, as provided in Section 4.3. The amount o, such unfavorable difference shall be payable llve Business Days after presenlation of the performing party's invoice, which shall set ,orth the basis upon which such 3.3. Noh^,ilhstanding Seclion 3.2, the parties may agree to Ah€mative Damages in a Transaclion Confrmation exealted in writing by both parlies. 3.4, ln addition to Sections 3.2 and 3.3, the parlies may provide for a Termination Option in a Transaciion Confirmaiion execuled in Miting by both parties. The Transaclion Confirmation containing the Termination Option will designate the length of nonperlormanc€ triggering the Terminaton Option and the procedures lor exercis6 thereot how damages for nonperformance will be compensated, and how liquidation c.sts will be calculated. SECTION 4. TRANSPoRTATION, NOMIMTIONS, AND IMBALANCES 4.1. Sdle, shall have the sole resporEitility for lrarEporlirE the Gas to ttl6 Ddi\€ry Pcint(s). Bulrer $all have the sole responstility br transpodng the Gas to.n he Delivery Pdn(s). 4.?. The panbs shallcDo{dinate t}Fir nomination adivilios, gMng sutrdsd tine to rne€l ttl6 deadtne6 ofthe afieded Transport€(s). Eacfi psrty shall give the other party linely pli)r Nolioe, sufici:rn to med tle r€quirem€nts of all Transporbr(s) h\rohred in the t'ansactim, of the quantities of Gas to be deli\rered and pur6ased eaci Day. Should eiher party beco{ne arare that adJd delverbs at ttE Delivery Pdnt(9 are greater or lesser than he SdEduled Gss, sudr party stlall pompty mt'ry tle drer party 4.3. The parties shall use comrne{ciajly resonable effods to aroid impGition of any lmbdan€e Charg€ii. f Bu}€r of Seller receiv€ an irwd:e fom a Transporter hd irdudes lnbalance Charges, Ule parties shdl detemine the vatdity as u,e[ as lhe cause of sudl ln$dance Chary€s. lf ttle lmbalance Charges u,ere incurEd as a resllt of Bq/eis receipl of quantl,os of Gas greater han or l€ss than the Sd€duled Gas. tr|en ButEr stlal pay for such lmbatancs CtE 96 or r€hbuse Seler tor such lmbabrEe ChaIgEs paid by Seller- tf the lmbalance Charg€s r,Yor€ inofied as a r€sult of Se0e/s delivery of quar iti:s o, Gas grefrr than or less har tle Sctle led Gas, lhen Sdler shall pay for sudl lmbalarce Charg€s or reimburse Buyer tor $dr lmb&nce Chsges psid by Bu)rer. SECTION 5. QUALITYAND MEASUREMENT All Gas ddit/€r8d by Seller shall me€t the pressure, qualiy {|d he2 mnEnt rcquirefi€nis d tne ReceMrE Transporier. Ihe unit of quant'ty measurBrner for purposes of his Confad shall be one MMBtu &y. lrreauemert of Gas quantlies heEulder shall be in acEo(bnce wih lhe astablstEd procedures of the ReceMng Transportr. SECTION 6. TA(ES SECTION 7. BTLLING, pAYMENT, ANDAUDIT 7.1. Seller shall inwri:e Buy€r b Gas detuered ard recd\€d in he p(eedrE Monh and lbr any other apdbaue cflaEes, p@vidng supporting dooJmertalbn aoceptable in indwfy pracihe to supporl tt€ amounl dargsd. tf tre act.d quantity d€liv€red is nol known by the baling da e. Mling will b€ preparcd based on tle quantity of Sd€dded Gas The irNoic€d quanlity will tlen be adjusGd to the actual quanity on he follorring Mdfi's ullirE or as soon the.eater 6 actual &{!ery infumtion is arrailade. 7 ,2. Bu)€r sllall rernit t|e amount due unde, Sedio{r 7.1 in the rnanner specified h the Base (Mad, in immediatdy a\raidb trlds, on or b€fo.e fie later ot the Payned OaE q 10 Days alier recr4, of t|e im,oice by Buyer; povided that if ttte Pafne.n Date b not a Business Day, poyment b due on the ne)d &6iness Day iolbr ing thal date. ln the a/enl any payrnenb are due Buyer hereunder, payment to &4rer stE! be ma& h sccodanc8 wih thb Secthn 7.2. iIAESB Standad 6.3 1 September 5, 2006 Th€ parli€s have solocbd either "Buyer Pay3 At and Afr.I DelivEry Poinf' or'Selhr Pays B€forc ard At Dalirrory Polnt' as lndlcatEd ofl lhe Baso Conhct Buyer Pavs At and After Delivery Point: Seller shall pay or cause to be pad all taxes, bes, levies, penalties, licenses or charges imposed by any govemment authority CTaxes') on or with resped to lhe Gas prior to he Ddivery Point(s). Bu)€r shall pay or cause to be paid all Taxes on o. wih resped to the Gas at tfie Dalivory Point(s) and all Taxes after the Delivery Point(s). lf a party is requircd to remit or pay Taxes that are the other partys responsibility hereunder. the party responsible for sudr Taxes shall prornpty reimburse the othet party br such Taxes. Any psrty eflt'Ued to an exemption ftom anv sudr Taxes or charqes shall fumish rle olher Darty any necessary dooJmentation lhereof. Seller Pays Beforc and At Delivery Point: Selter shall pay or cause to be paid all taxes, fees, levies, penalties, licenses or charges imposed by any govelnment aulho{ity ffaxes') on or wih respect to the Gas prior to the Delivery Pdnt(s) ard all Taxes at the Delivery Point(s). Buyer shall pay or cause to be paid all Taxes on or wih respecf to he Gas afrer the Delivery Pdnl(s). lf a party is required to remit or pay Taxe6 that are the other party's responsibility hereunder, the parly responsible for sud) Taxes shall prornpuy reimburse the other party ior such Taxes. Any party entiued to an exemption ftom anv such Taxes or charoes shall fumish fie other Dartv any necessary dooJrnentation lhoreof. Copydlhtg2006 Norlh American Energy Standards Board, lnc. All Rights Reserued Page 6 of 13 7.3. ln the event payments become due pursuant to Sec{ions 3.2 or 3.3, the performing party may submit an invoice to the nonperforming party for an accelerated payment setting forth the basis upon which the invoiced amount was calculated. Payment from the nonperforming party will be due five Business Days afrer receipt of invoice 7.4. lf lhe invoiced party, in good Hh, disputes the arnount of any such in\/cice or any pad flered, such hvoiced party will pay sud) amount as il conced€s to be conedi provided, hoivever, if the invoiced pffty disputes lhe arnount due, it must provide supporting docurnentation acceptable h indusfy pradice to support ltE amount paid or disputed wittEut undue delay. ln tE event the parties are urEue to resolve sudl dispute, dlher party nray pusue ary remedy a\railable at bw or in equity to enforce ib rights pursuarn to this S€dbn. 7 .5 . f the in\rciced party bils tc remit the tull amornt payabb when due, interest oo the unpall Mion shall accrue from tlE date due until tle date of payrneflt at a rate equal to trE lo{er o, O the then-effedive pnrne rate of interest pub{shed under "Money Rabs" by The WaI Sfeet JounEl, plus i!,vo percent per annwn: or (0 the maximurn applicable lawful interest rate. 7 ,6, A party shall have the rbht, at lb olvn oeens€, upon reasonable l,lolice and at reasonable times, to examine and audit and b obtain copios of the relerra portion ofthe books, records, and telephone rccordings ol he other party only to tle extent reasonably necessary to veriry the acorracy of any slatement, charge, payment, or computaton made under the Confact. This rt ht to examhe, audit, and to obtain mpies shall not be available with respect to propridary information not diredly relevant to tansadions under this Contract A[ invdces and billings shall be conclusively presumed final and acanrate ard a[ Bsodated daims br under- or overpaymeflls shail be deemed waived unless such invoi:es or billingB ar€ obiecled to in wriling, wih adequaie explanalion andor documentalbn, \r{ithin t\,vo years aier the Monh of Gas ddivery. All r€lroaclive adjusrnents under Sec{bn 7 shall be paid in fu! by the pany owing paymont wihh 30 Da}s of Notice and subslantiation cf sud) inaccrJracy. 7 ,7 . lJnless the paflres have eleded on the Base Contrad not to make this Sedion 7 7 applicable to this Cont"ad, the parties shall net all undisputed amounis due and owing, and/or past due, arising under lhe Contlad such that the party owing the greater amount shall make a single payment of the nel amount to the other party in accordance with Section 7; provided that no payment required to be made pursuant to the terms ofany Credii Suppo( Obligation or pursuant to Section 7.3 shall be subjecl to netting underthis Seclion. lf the parties have executed a separate netting agreemenl. the terms and conditions therein shall prevail to the extent inconsistent herewith. SECTION 8. TITLE, WARMNry, AND INDEMNITY 8.1. Unless otherwise specifically sgreed. title to the Gas shall pass from Seller to Buyer at lhe Delivery Point(s). Seller shall have responsibility for and assume any liability with respecl to the Gas prior to its delivery to Buyer al the specified Delivery Point(s). Buyer shall have responsibility lor and assume any liability with respecl to said Gas after its delivery lo Buyer at the Delivery Point(s). LZ. Seller warrants lhat il will have the righl to convey and will transrer good and merchantable title to all Gas sold hereunder and delivered by it to Buyer, free and cloar of all liens, encumbrances, and daims. E(CEPT AS PROVIDED lN IHIS SECTION 8.2 AND lN SECTION 15.8, ALL OTHER WARMNTIES, EXPRESS OR IMPLIED, INCLUDING At'lY WARRANry OF MERCHANIABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE, ARE DISCLAIMED, 8.3, Seller agrees to indemnity Buyer and save it harmless from all losses, liabilities or claims inc.luding reasonable atlomeys' fees and costs of coun ("Claims"), from any and all persons, arising from o, out ol claims ot title, personal injury (ncluding death) or property damage from said Gas or other charges thereon which attech berore litle passes to Buyer. Buyer agrees to indemnify Seller and sa\re it harmhss from all Claims. ftom any and all persorE, arising from or out of daims regarding payment, p€rsonal injury (including death) or propody damage from said Gas o( other charges hereon whk$ altadr aier tite passes b Buyer. 8.4. The parties agree that the delivery of and lhe transfer of title to all Gas under this Contract shall take place within the Customs Teritory of the United States (as defned in general note 2 of the Harmonized Tarifl Schedule of the United States 19 U-S.C. 51202, General Notes, page 3); provided, however, that in the event Seller look tille to the Gas outside the Customs Territory of the l,Jnited States, Seller represenls and wanants that it is the imporler of remrd for all Gas entered and delivered into the United States, and shall be responsible for enlry and eniry summary filings as well as the payment of duties, taxes and fees, if any, and all applicable re@rd keeping requirements. 8. 5 . tlotwihdanding the olher provisons of tis Sdion 8, as beNveen Seller and BqEr. Seller will be liade fo. all ClairE to the extsnt that such ise fom fle hjlure of Gas deliveGd by Seler to rneei the quality requiEmerfts of Sedhn 5. sEcTroN 9.NOTICES 9.1. All Transaction Confirmations, invoices, payment instructions. and other communications made pursuant to the Base Contract ("Notices") shall be made to the addresses specified in wriling by the respec{rve parties from time to time. 9.2. All Nolices required hereunder shall be in writing and may be sent by facsimile or mutually acceptable eleclronic means, a nationally recognized overnight courier service, first class mail or hand delivered. 9.3. Notice shall be given when received on a Business Day by the addressee- ln the absence of proof of the adual rec€ipt date, the following presumptions will apply. Notices sent by facsimile shall be deemed to have been received upon lhe sending party s receipt of its bcsimile machine's confirmation of successful transmission. lf the day on which such facsimile is received is not a Business Day or is after fve p m on a Business Day, then such facsimile shall be deemed to have been received on the next tollowing Business Day. Notice by overnight mail or courier shail be deemed to have been received on the next Business Day afrer it was senl or such earlier time as is confirmed by the receiving party. Notice via Urst clsss mail shall be consid€rod delivered five Business Days afler mailing. 9.4. The parly receiving a commorcially acceptable Notice of drange in payment instn ctons or other payment information shall not be obligated to implement such change until ten Business Days afrer receipt ot such Notice. NAESBStandard63l September 5, 2006 CopyrbhtO 2006 North Ameri:n EnerEy Standards 8oard, Inc All Rights Reserved Page 7 of 13 SECTION 10. FIMNCIALRESPoNSIBILITY 10.1 . l, either party ("x') has reasonable grounds ,or insecurity regarding the performance o{ any obligation under this Contl"act (whether or not then due) by the other party ('Y) (induding, without limi[atjon, the occurrence of a maledal drange in the creditworthiness of Y or its Guarantor, if applicable), X may demand Adequale Assurance ol Performance. "Adequate Assurance of Performance" shall mean sufficient security in the form, amount, for a term. and trom an issuer, all as reasonably acceptable tro X, including, but not limited to cash. a standby irrevocabie lettor of credit, a prepayment, a security interest in an asset or guaranty. Y hereby grants to X a contjnuing first priority security interest in, lien on, and right of setoff against all Adequate Assurance of Performance in the form of cash transfened by Y to X pursuant to this Section '10.'1. Upon the retum by X to Y of such Adequate Assurance of Performance, the securily interest and lien granted herounder on that Adequate Assurance of Performance shall be released automatically and, to the extent possible, without any further action by either party 10.2. ln the event (each an "Event of Defauli') oither party (the "Defaulling Party') or its Guararior shall: (i) make an assignmenl or any general arrangement for the benellt of creditors; (ii) file a petition or otherwise commence, authorize, or acquiesce in the commencement of a proceeding or case under any bankruptcy or similar law for lhe protection of creditors or have such petition filed or proceeding commenced against iti 0ii) otheMise become bankrupt or insolvent (however evidenced); (iv) be unable to pay its debls as they fall duei (v) have a receiver, provisional liquidalor, conservator, custodian, trustee or other similar official appointed with respect to it or substantially all of its assets; (vi) fail to perform any obligation to the other party with respect to any Credit Support Obligalions relating to the Contract; (vii) fail to give Adequate Assurance of Performance under Section 10.1 within 48 hours but at least one Business Day of a written request by the other party: (viii) nol have paid any amount due the other party hereunder on or before the second Business Day following written l'.lotice that such payment is due; or ix) be the affected party with respect to any Additional Evenl of Default; then the other party (the "Non-Defaulting Party") shall have the right, at its sole eleclion, to immediately withhold and/or suspend deliveries or paymenls upon Notice and/or to terminate and liquidate the transaclions under the Contract, in the manner provrded in Section 10.3, in addition to any and all other remedies available hereunder. 10.3. lf an Event of Default has occun€d and is continuing, the Non-Oefaulting Party shall have the right, by tlotice lo lhe Oefaulting Party, to designate a Day, no earlier than the Day such Ndice is given and no later than 20 Days after such Notice is given, as an early termination date (the "Early Termanation Date') tor the liquidation and lermination pursuant to Section 10.3.1 of all transaclions under the Conlracl, each a "Terminated Transaction'. On lhe Early Termination Oate, all fansaclions will terminate, olher than those transaclions, if any, that may not be liquidated and terminated under applicable larr ('Excluded Transactions"), which Excluded Transac{ions must be liquidated and terminated as soon thereafler as is legally permissible, and upon termination shall be a Terminated Transaciion and be valued consistent with Section 10.3.1 below. \Mth respect to each Excluded Transaclion. its actual shall be the Termination Oate for '10.3.1. As of the Early Terminalion Date, the Non-Oefaulting Party shall determine, in good faith and in a commercially reasonable manner, (i) the amount owed (wtrether or not then due) by each party with respec{ to all Gas delivered and received betv,/een the parties under Terminated Transaclions and Excluded Transactions on and before the Early Termination Date and all other applicable charges relating to such deliveries and rec€ipts (including without limitation any amounis owed under Sec{ion 3.2), for which payment has not yet been made by the party that owes such payment under this Contract and (ii) the Market Value, as defined below, of each Terminaled Transaction. The Non-DeEulling Party shall (x) liquidate and accelerate each Terminated T.ansaction at its Market Value, so that each amount equal to the difference between such Market Value and the Contract Value, as defined below, oI such Terminated Transac-tion(s) shall be due to the Buyer under the Terminated Transaction(s) if such Market Value exceeds the Contrad Value and lo the Seller if the opposite is the case, and (y) where appmpriate, discount each amount then due under clause (x) above to present value in a commercially reasonable manner as of the Eaiy Termination Date (to take account of the period between lhe date of liquidation and the dale on which such amounl would have otherwise been due pursuant to the relevant Terminated Transactions). For purposes of this Section '10.3.1, "Contract Value" means the amount of Gas remaining to be delivered or purchased under a transaclion multiplied by the Contract Price, and 'Market Value' means the amount of Gas remaining to be delivered or purchased under a transac{ion multiplied by the market price for a similar transaction at the Delivery Point determined by the Non-Defautting Party in a commercially reasonable manner. To ascertain the Market Value, the Non-Defaulting Party may consider, among olher valuations, any or all of the settlement prices of NYMEX Gas futures contracls, quolations from leading dealers in energy swap contracls or physical gas tradang markets, simllar sales or purchases and any other bona lide third-party otfers, all adjusted for the lenglh of tne term and differences in transportation costs A party shall not be required to enter into a replacement transac'tion(s) in order to determine the Market Value Any extension(s) of the term ot a transaclion to which parties are nol bound as of the Early Termination Date (including but not limited to 'evergreen provisions") shall not be considered in determining Contract Values and Market Values. For the avoidance of doubt, any option pursuant to which one party has the right to extend lhe term of a transaclion shall be considered in determining Contract Values and Market Values. The raie of interest used in c€lculating net present value shall The parties have selected either "Early Terminadon Damages Apply" or "Early Termination Damages Do Not Apply" as indicated on the Base Contracl Termination Do Not 10.3.1 As of the Early Termination Date, the Non-Defaulting Party shall determine, in good faith and in a commercjally reasonable manner, the amount owed (whether or not then due) by eech party with respect to all Gas delivered and received between Transactions on and before the Copyright O 2006 North American Energy Standards Board, lnc iIAESB Standard 6.3 1 September 5, 2006All Rights Reserved Page I of 13 appticable charges relating to such deliveries and receipts (including without limitation any amounts owed under S€ction 3 2), for v,/hich Davment has not vet been made by the party that ou'es such p4y!!enl under this contracl' The partlos have selectsd elthor "Other AgEement Setoffs Apply" or "Othor Agr€€ment Setofis Oo Not ApPly" as lndlcaH on tho Ba6 Contact Other Aqreement Setofls Apply: Bilateral Setoff Option: 10.3.2. The Non-Defaulting Party shalt net or aggregate, as appropriale, any and all amounts owing between the parties under Seclion 10.3 '1, so that all sucfi amounG are nened or aggregated to a single liquidated amounl payable by one party to the other (the "Net Setflement Amount'). At its sole opuon and without prior Notice to the Defaulting Party. the Non-Defaulling Party is hereby authorized to setoff any f\iet Settlement Amount against (i) any margin or other collateral held by a party in conneclion with any Credil Support Obligation rel;ting to the Contracl; and (ii) any amounl(s) (nduding any excess cash margin or excess cash collateral) owed or iriU Uy ttri party that iJentitled to the Net Seltlement Amount under any other agreement or anangement between lhe parties Triangular Setoff Option: 10.3.2. The Non-Defaulting Party shall nel or aggregate, as appropriale, any and all amounts owing between the parties under Seciion 10.3.1, so that all sudl amounts are netled or aggregated to a single liquidaled amount payable by one party to the other (lhe "Net Settement Amount"). At its sole option, and without prior Notice to the Deiaulting Party. lhe Non-Defaulting Party is hereby authorized to setoff (i) any Net Setllement Amount against any margin or other collateral held by a party in conneclion with any Credit Suppon Obligation ralating to the Contmcl; (ii) any Net Settlement Amount against any amounl(s) (including any excess cash margin or excess cash collateraf o,ved by or lo a party unde] any other agreement or arangement belween the parties; (iii) any Net Setuement Amount owed to the Non-Defautting Party against any amount(s) (including any excess cash margin or excess cash coltateral) owed by the Non-Defauhing Party or its Affliates lo the Dehulting Party under any other agreemenl or arrangement; (iv) any Net Setflement Amount owed to the Defaulting Party againsl any amount(s) (including any exc€Es cash margin or excess cash coitalerat) or/ed by the Defaulting Party lo the Non-Oefaulting Party or its Affliates under any othel agreement or anangement: andor (v) any Net Setlement Amount ou/ed to lhe Defaulting Party against any amount(s) (including any excess cash margin or excess cash coltateral) owed bv the Defaultinq Party or its Affiliates lo the Non-Defautling Party under anv other aqree Other Aqreement Setoffs Do Noi Apply: '10.3.2. The Non-Deraulting Party shall net or aggregate, as appropriate, any and all amounts owing between the parties under Section 10.3.1, so that all such amounts are netled or aggregated to a single liquidatad amount payable by one party to the other (lhe 'N6t Set ement Amount'). At irs sole option and without prior Notice to the Defaulling Party, the Non-Defaulting Party may setoff any Net Settlement Amount against any margin or other collateral held by a party in connection wilh any Credit Suppori Obligation relating to the Contracl. 10.3.3. lf any obligation that is to be included in any netting, aggregation or setoff pursuant to Section 10.3 2 is unascertained, the Non-Delautting Party may in good faith estimate that obligation and net, aggregale or seloff, as applicable, in respect of the $timate, subject ao lhe Non-Oeraulting Parly accounting to the Defautting Party when the obligation is asc€rtainad. Any amounl not lhen due whidt is induded in any netting, aggregation or setof, pursuant lo Section 10 3 2 shall be discounted to net presenl value in a commercially reasonable manner determined by lhe Non-Defaulting Party. 10.4. As 6oon as praciicablo after a liquidation, Notice shall b€ given by the Non-Defaulting Party to the Defaulting Party of E|e Nel Set ement Amount, and whelher the Net Settlement Amouni is due to or due trom iho Non-Dofaulting Party. The Notice shall include a written sEtement explaining in reasonable detail the calculation of the Net Settlemer Amount, provid€d hat tallure to give such Notice shall not affecrt the validi, or enforceability of the liqukiation or give rise to any claim by ihe Delaulting Party ageinst the Non-Defaulting Party. The Net Settlement Arnount as well as any setoffs applied against sudl amount pursuant to Sedion 10.3.2, shall be paid by thi dose of business on the second Business Day following such Notice, which dale shall mt be earlier than tho Eady Termination Date. lnt€rest on arry 6pard poiion of f|e Nef Sercrneflt Armunt as adi$ted by sdotrs, shall ffiue from the date dle untilthe date of paymeflt at a rate €qual to the lorer ot 0 Ule therF€fuive p.rrne rsb of inGr€sl Bruishod under "iiloney Rat€s" by lhe Wall Steet Joumal, plus tvto percenl per annum: o. (ii) iire rnaximum 4plicable lawful inEresl rate 10.5. The parties agree that the lransoclions hereunder constitute a "foMard conlracf within the meaning o, the United States Banlruptcl Codb and thal Euyer and Seller are each "forward contrad merchanls" within the meaning of the United States Bankruptcy Code. 10.6. The Non-Defaulting Parvs remedies under this Soction 10 are the sol6 and exclusive remedies of the Non-Dehulting Party wilh respecl to the occunence of any Early Terminalion Date. Each party res€rves to itsalf all othsr rights, setofrs, counterclaims and other defenses thal it is or may be entitled to arising from the Conlract. 'l,0.7. \Mth respecl lo this Section 10, if the parties have sxecuted a separate netling agreemont with clos€-out netting provisions, the terms and conditions therein shall prevail to the extent inconsistent herewilh. SECTION 11. FoRcEMAJEURE 11.1. Except with regard to a party's ouigation to mate payrnenl(s) due under Section 7. Mion 10 4, and lmbalance Chargos under Sec{ion 4. neither perty st|all be liable to the other for failure to perfom a Firm obligalion, to the extent sucfi failure v€s caused by Force Majeure. The term 'Force Majeure" as emplo)red herein means any ca6e nol reasonably within the conhol of the party daiming suspension, as further defined in Seclion 11 .2. NAESB Standard 6.3 1 S€ptember 5, 2006 Copydght O 2m6 Nonh American EneEy Slandards Boad, lnc. AII RighB Resewed Page 9 of 13 11 .2. Force [,lajeure shall indude, bul not be limited to, the follo^,ing: (i) physical events such as acls of God, landslides, lightning, earthquakes, fires, storms or slorm wamings, such as hunicanes, which result in evacuation of the affected area, floods, washouts. explosions, breakage or accidenl or necessily of repairs to machinery or €quipmenl or lines of pipe: (ii) weaiher related events affeciing an entire geographic region, such as lor{ temperalures which cause freezing or failure of wells or lines of pipe; (iii) interruption and/or curtailment of Firm transportation and/or siorage by Transpo(ers: (iv) acls of ohers such as strike6, lockouts or olher industrial disturbances, riots, sabotage, insurrec,tions or wars, or acts of terror: and (v) governmental aclions such as necessity for compliance with any court order, law, statute. ordinance, regulation, or policy having lhe effeci of law promulgEted by a governmental authority having iurisdlciion. Seller and Buyer shall make reasonable efforts lo avoid the adverse impacls of a Force Majeure and to resolve the evenl or occurrence once it has occu[ed in order to resume performance. 1 1 .3. Neither party shall be enttled to the benefit of the provisions of Force Majeure to the extent performance is affecled by any or all of the following circumslances: (i) the curtailment ot inleruptible or secondary Firm transportalion unless primary, in-palh, Fim transporlation is also curtailed: (iD the party daiming excuse failed lo remedy the condition and to resume the performance ot such covenants or obligations with reasonable dispatch; or (iii) economic hardship, to indude, wilhout limitation, Selle/s ability to sell Gas at a higher or more advantageous price than the Conbact Price, Buye/s ability to purchase Gas al a lor,!,rer or more advantageous price than the Confad Price, or a reguhtory agency disallowing, in wtrole or in part, he pass through of ccts resulting trom this Contracti (iv) the loss of Buye/s marke(s) or Buyeis inatility lo use or resell Gas purchased hereunder, except, in either case, as provided in Seclion 11.2i or (v) he loss or failure of Selle/s gas supdy or d6pletbn ot rBserves, except, in either cas€, as provided in Seciion 1'l 2. The party claiming Force Maieure shall not be excused from its responsibility for lmbalance Charges. 11.4. Notwithstanding anything to the contrary herein, the parties agree that the settsment ot strikes, lockouts or other industrial disturbances shell be within the sole discretion of the party experiencing such disturbance. 1 1 .5. The party whose performance is prevented by Force Majeure must provide Notice to the other party lnilial Notice may b€ given orally; however, written Notice with reasonably full particulaF of the event or occurence is required as soon as reasonauy possible. Upon providing written Notice ol Force Majeure to the other party, the afuc{ed pany will be relieved of its obligation, from tlle onset of Ule Force Maieure event, to make or accept delivery of Gas, as applicable, to lhe extent and for the duration of Forc€ Majeure, and neither pady shall be deemed to have lailed in such obligatbns to fie other dudng such occurrence or event. 11 .6. Not^,ithstanding Sections 1 '1.2 and 11.3, the parties may agrse to allernative Force Majeure provisions in a Transadion Confirmation executed in writing by both parties. SECTION 12. rERM This Cont'act may be terminated on 30 Day's Mitten Notice, b(lt shall remain in €ffect until the expiralion of 8le latest Delivery Period of any t'ansaction(s). The right6 o, either psrty pursuant lo Sedion 7.6, Sedixr 10, Sedion 13, tho obligations to make payrnent herarrder, and the obligaton of duler party to indemniry the oth6r, pursuant herelo shall survive the termination of the Base Contrad or any transaclbn. SECTION 13. LrMrrAroNS FOR BREACH OF ANY PROVISION FOR WI.IICH AN EPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDEO, SUCH EXPRESS REMEDY OR MEASURE OF DAMAGES SFIALL BE THE SOLE AND EXCLUSIVE REMEDY, A PARTYS LIABILITY HEREUNDER SIIALL BE LIMITED AS SET FORTH IN SUCH PROVISION, ANO ALL OTHER REMEDIES OR DAJUAGES AT LAW OR IN EOUIry ARE WAIVED. IF NO REMEDY OR MEASURE OF DAMAGES IS EXPRESSLY PROVIDED HEREIN OR IN A TMNSACTION, A PARTYS LIABILITY SMLL BE UM]TED TO DIRECT ACTUAL DAMAGES ONLY. SUCH DIRECT ACTUAL OAi'AGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY, ANO ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUIY ARE WAIVED, UNLESS EXPRESSLY HEREIN PROVIDEO, NETNiER PARry SHALL BE LLABLE FOR CONSEOUENTI,AL, INCIDENTAL. PUNITIVE, EGMPTARY OR INOIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAIVIAGES. BY STATUTE, IN TORT OR CONTMCT. UNDER AI.IY INDEMNITY PROVISION OR OTHERWSE, ff IS THE INTENT OF THE PART1ES THAT THE LIMTTATIONS HEREIN IMPOSED ON REMEDIES AND THE MEASURE OF DAMAGES BE WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED THERETO, INCLUDING THE NEGLIGENCE OF At{Y PP.RTY, YVI-IETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR PASSIVE. TO THE DfiENT AIf/ DAMAGES REQUIRED TO BE PAID HEREUNOER ARE LIQUIDATED, THE PARTIES ACKNOWLEDGE T}IAT THE DAMAGES ARE DIFFICULT OR IMPOSSIBI.E TO OE]ERMINE, OR OTHERWSE OBTAINING AN ADEQUATE REMEDY IS INCONVENIENT AND THE DAMAGES CAI-CULATED HEREUNDER CONST]TUTE A REASOMBLE APPROXIMAT]ON OF THE HARM OR LOSS. Copyti€ht @ 206 Nonh American EneEy Standards Board, lnc. All Rilhb Resery€d Pag€ 10 or 13 MESBSlandard63l September 5, 2006 SECTION 14. MARKET DrsRUPloN lf a Market Disruption Event has occurred then the parties shall negoliate in good faith to agree on a replacement price for the Floating Price (or on a method for determining a replacement pric€ for the Floating Price) for lhe aflected Day, and if lhe parlies have not so agreed on or before the second Business Day following the affecled Day then the replacement price for the Floating Price shall be determined within the next two following Business Days with eaci party obtaining, in good faith and from non-affiliated market participants in the relevant market, two quotes for prices of Gas for the affected Day of a similar quality and quantity in the geographical location dosest in proximity to the Delivery Point and averaging the four quotes lf either party fails to provide two quotes then lhe average of the other parvs two quotes shall detemine the replacement price for lhe Floating Price. "Floating Price" means the price or a fudor ofthe price agreed lo in the transaclion as being based upon a specified index. "Markel Disruption Event" means, with respect to an index specified for a transaction, any of lhe following events: (a) the failure of the index lo announce or publish information necessary for determining the Floating Pricei (b) the failure of trading to commence or the permanent discontinuation or malerial suspension of lrading on the exchange or market acting as lhe index; (c) the temporary or permanent discontinuance or unavailability of the index; (d) the temporary or permanent closing of any exchange acting as the indexi or (e) both parlies agree thal a material change in lhe formuia lor or lhe method of determining the Floating Price has occurred. For lhe purposes oI ule calculalion of a replacemenl price tor the Floating Price, all numbeE shall be rounded to three decimal places. lf the fourth decimal number is five or greater, then ihe third decimal number shall be increased by one and if the fourth decimal number is less than five, then the third decimal number shall remain unchanged. SECTIONl5. MrscELLANEous I 5.1 . This ContEct shall be binding upon ard inure to the benefit of the successors, asaigns, personal replesentatives, and heirs of lhe respecliw parties hereto, and the covenaris, conditions, rights and obligatioos ofthis Contraci shall run for the fullterm ofthis Contrad. No assignment of lhis Contrac{, in whole or in part, will be rnade withoiJt the prior written consenl of the non-assigning parly (and shall not relieve the ;ssigning party from liatility hereunder), whidl consenl will not be unreasonably withhdd or #layed; poviled, either party may 0) t'ansfer, sett, pledge, enormber, or assign this Crnhact or lhe accounts, revenues, or proceeds trereof in conneclion with any financing or olher finarEiat tnangem€nts, or (ii) transter its interest lo any parenl or Affliale by assignment, merger or otheMise without the prior approval of the other party. Upm any such assignment. transbr and assumption, tlte b'ansferor shall remain principally liable for and shall not be relie\red of or disdrarged fiom any obligations her€under. 15.2. tf any povision in this Contmd is determined to be invalid. void or unenfcrceable by any court having jurisdidion, sudr determination shall nol invalklate, void, or make unenforceable any other provision, agreement or covenant of this Cont-act. 1 5.3. No waiver of any breach of lhis Contr4t shall be held to be a waiver of any other or subs€quent breach. 15.4. This Cmtract sets brth all understandings betu/een the paltbs respecting each t"ansadion subjed herelo, and any pfior conirads, understjandirEs and reprasentations, whether oral or written, relatirE to sucfi transaclions ate rnerged into and superseded by this Conlract and any effedive transaclion(s) This Contract may be amended only by a writing executed by both parties. 15.5. The interpretation and perbrmance of lhis ConEEd shall be go\remed by the laws ot fle iurisdic'iion as indicated on the Base Contract, exduding, hou/ever, any confid of lav'rs rule whii lrlould apply the hw of another jurisdidion. 15.6. This Cort-ad and all provisbns herein will be subjed lo all applicable and valid statdes, rules, oders and regulations of arry govemmental authority having jurisdiction over the panies. their Pacilities, or Gas supply. this ContEd ortransadjon or any plovisions Ulereof 15-7. There is no thid pany beneficiary to this Cori€c{. 15.8. Each pariy to this Cmtract represents and wanants that it has hJl and cDmplete authority to enter into and perform this Contad Each person who exeqJtes this Contract on b6haf of either party represenh and wanants thal it has full and complete aurlority to do so and tlat such party will be bound $ereby. 15.9. The headings and subheadings contained in this Crntract are used solely fur mnvenience and do not constiMe a part of his Conird between the parties and shall not be used to construe or inleQret the provisions ofthis Contrdct 1 5.10. Unless the parties have eleded on he Base Conlract nol to rnake this Section 15.10 applicable to this Contract, neithor party shall disdose diIedly or indirectly without he prior written consent of the other party lhe terms of any transaclion to a third party (ofier than ltle employees. lenders. oyaltyowners, counsel, accountants and off€r agents of lhe p8rty, or prospedi\re purdraseG of all or suMnlially all of a party's assets or of ,ny rights undef this Conkact, provided such porsons shall have agreed to keep sudl terms corfidental) except (i) in onter io compty with anyapplicabte taw, order. regulation, or exchange rule. (ii) to the ene necessary for lhe enfo{cement oI this Cor rad , (iiO to the extent necessary io implernent any transadion, (iv) to the extent nec€ssary to comply with a regulatory agencys repo.ting r4uircments including but not limiied to gas cost reco\rery proceedings; or (v) to the extert such infonnatbn is deli\€red to such third party fur the sole purpose of &oJhting a published index. Each party shall notry [|e other party of any proceeding of whk$ it is aware which may result in disdosure of the lerms of any hansadion (other than as permitted hereunder) ard use reasonable efbrts to prevmt or limit he disdosure. Th€ existence of t]is Conffi is not subiecl to this confidentiality obligatpn. Subieci to Seclion '13, the parties shall be entitled to all remedies avaihble at law or in equity to erforce, or seek relief in connecton with this confidontiality obligation. The terms of any transadion hereunds shall be kept confidential by the parties hereto fu one year lrom the expiration of lhe tansaclion. tn the ovent thal disclosure is required by a governmental body or applicable law, the party subjeci to such requirement may disdose the material terms of this Conlrac{ to the extent so required, but shall promptly notiry the other party, prior to disclosure, and shall cooperate (consislent with the disclosing party's legal obligalions) with the other party's efforts to obtain protective orders or similar restraints with respec{ to such disclosure at the expense of the other party Copyrilht O 2006 North American Ehergy Standards Board. lnc AII Rights ReseNed Page 11 of 13 NAESB Standard 6 3.1 September 5, 2006 15.11. The parties may agree to dispute resolution procedures in Special Provisions attached to the Base Contracl or in a Transaction Confirmation executed in writing by both padies 15.12. Any original executed Base Contract, Transaction Contirmation or olher related document may be digitally copied, photocopied, or stored on computer tapes and disks (the "lmaged Agreemenf). The lmaged Agreement, if inlroduced as evidence-on paper, the Transaclion Confrmation, if infoduced as evidence in automated facsimile form, the recording, if intrcduced as evidence in its original form, and all mmputer records of the foregoing, if inlroduced as evidence in prirted format, in any judicial, arbitrafon, mediation or administrative proc€edings will be admissible as b€tween the parties to the same extenl and under the same @nditions as other business records originaled and maintained in documentary torm. Neilher Party shall objed to the admissibility of the recording, lhe Transaclion Confirmalion, or the lmaged Agreement on the basis lhat such were nol originated or maintained in documenlary form. However, nolhing herein shall be construed as a waiver ofany other objec{ion to the admissibility of sudr evidence. DISCL-AIMER: The purposes of thlg Contract aae to tacilitale lrade, avokl misunderstandings and make more deiin,te he iems of clntrads of purchas€ and sale of natural gas. Furth€r, MESB do€s not mandat€ the us€ of this Conhact by any pady NAESB DISCLAIIUS ANO EXCLUOES, AND ANY USER OF THIS CONTRACT ACKNOT,/LEDGES ANO AGREES TO NAESBS OISCLAIMER OF, ANY AND ALL WARMNTIES, COI'IDfT|ONS OR REPRESENTATIONS, EXPRESS OR IMruEO, ORrAL OR WRITEN, wtTH RESPECT TO THIS CONTRACT OR ANY PART THEREOF, INCLUONG ANY AND ALL IMPI-IED WARRANTIES OR CONOMONS OF TITLE NON]NFRINGEIIIENT, MERCHANTABIUW, OR FITNESS OR SUITABILITY FOR ANY PARTICULAR PURPOSE (WHETHER OR NOT NAESB KNOT'TIS, HAS REASON TO KNOW, TIAS BEEN ADVISEO, OR IS OTHERWSE IN FACT AWARE OF AI.IY SUCH puRposE), WHETHER ALLEGED TO ARTSE By LAW, By REASON OF CUSTOM OR USAGE tN THE TMDE, OR BY COURSE OF DEALING. EACH TJSER OF THIS COMIRACT AI,-SO AGREES THAT UNDER NO CIRCUMSTANCES WLL NAESB BE LIABLE FOR ANY DIRECT, SPECIAI- INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEOUENTIAL OAMAGES ARISING OUT OF ANY USE OF THIS CONTRACT, Copyrilht @ 2C106 Nonh American Energy Standards Board, lnc AllRights Reserved Page 12 of 13 MESSStandard63l September 5, 2006 TRANSACTION CONFIRMATION FOR IMMEDIATE DELIVERY EXHIBIT A City of Long Beach Gas and Oi! Department This Transac{ion Confrmation is subjecl to the Base Contract between Seller and Buyer dated terms of this Transaclion Confirmalion are binding unless disputed in writing within 2 Business Days of receipt unless otheMise specified in the Base Contract BUYER: City of Long Beach Attn: Dennis Burke Phone: 562-57G2066 Fax: 562-19+'1087 SELLER: City of Vemon Attn; Kelly Nguyen Phone: 321583€811 Fax: 32+826-1408 Contracl Price: Variable, as mutually agreed between the parties for Oelivery Periods ranging from one day to one month. All deliveries are subject to Special Condition 1. Delivery Period: Begin: 0 - ,+,000 MMBiU per day Delivery Point(s): Southem Calitomia Gas Company: City Gate Pooling Point Title: Director of Gas & Electric Copydght @ 2006 North American Energy Standards Board, lnc NAESBStandard63l September 5, 2006All Rights Reserved Page 13 of 13 Special Provisions to the NAESB Base Contract for Sale and Purchase ofNatural Gas between City of Vemon, a chanered City and Muicipal Corporation of the State of Califomia ('?arty A") and City ofLong Beach, a chartered City and Municipal Coryoration ofthe State of Califomia C'Party B) The amendmelts to t}te Base Contract for Sale and Purchase of Natural Gas ("Contract") set fonh in these Special Provisions shall supplemetrt and form part of the Contract and shall govem with respect to any conflicting or inconsistent provision in the Contract. Except as amendcd, the Contract shall remain in full force and eff€ct. All Gas transactions are entered into in reliance on the fact that the Contract, each and all Gas transactiols hereunder, and each and all Tralsaction Confirmations together constitute a silgle agreemenr berwe€n the panies. All Gas transactions in effecr on the date hereof, and all Gas transactions entered into b€tween the parties on or after the date hereof, shall be governed by this Contract. The parties expressly intend that this Contsact govem all ransactions for the puchase and sale ofGas berweeD them. l. Section 2.12 is amended by deleting the phrase, "(or ahemate fuel if elected by Buyer and rcplacement Gas is not available)" ftom the third line. 2. Sections 3.3 and 3.4 are deleted. 3. The third sentence of Sectior 6 is modified to read as follows: "lfa parry is required by applicable law to remit or pay Taxes that are the other party's responsibility hereunder, the parry so required will comply with such collection and remission r€quirements, and 0re party responsible for such Taxes under this provision shall promptly reimburse the other party for such Taxes." 4. Section 7.4 is amended by insening the following affer the first sentence: "If it is ultimarely derermined that the invoiced party owes all or a ponion of the disputed amounl, the invoiced party shall pay the irvoicing party that amount within two Business Days of such detemination, along with interest (as defined in Section 7.5) from and including the original paymcnt due date to, but excluding, the date payment is made." 5. The following sentence is inserted at the end of Subsection 10.3.1 : "In addition ro all other amounts calculated hereunder, the Defaulting Party shall reimburse the Non-Defaulting Party for reasonable out-of-pocket expenses incured by the Non-Defaulting Party in rerminating and liquidating the Terminated Tra[sactions and any related hedges, such as brokerage fees, commissions and other transactional costs, and expenses incuned by the Non-Defaulting Party during rhe occu[ence and continuation ofan Event ofDefauh in comection wirh the enforcemetrt or the preservation ofits rights under this Contract." 6. The following is added at the end of Section 15-3: "No delay or omission by a party in the exercise of any right hereunder shall be construed as a waiver or relinquishment thereof," 7. Section 15.10 is deleted in its entirety. 8. Section l5.l t is deleted in its enrirery and replaced with the following: "With respect to any suit, action or proceedings relating to or arising out ofthis Confi-act or any ofthe transactions contemplated hereby ('Proceedings'), each party irrevocably: (a) submits to the non-€xclusive jurisdiction of the fedeial or state couns of Califomia in Los Angeles County, and any appellate court therefiom; and (b) waives any objection which it rnay have at any time to rhe laying of venue of any Proceedings brought in any such court, waives any claim rhat such Proceedings have been brought in an incotrvenient forum and funher waives the right to object, with respect to such Proceedings, that such court does not have anyjurisdiction over such pafiy. Each party hereby agees that a final, non-appealable judgment in any such Proceedilgs shall be conclusive and may be enforced in other jurisdictions otherwise having jurisdiction ovcr it by suit on such final judgnent or in ary other manner provided by law," 9 New Section 15.13 is added as follows: "Each party was represented by legal counsel during the negotiation and execution of this Agreement. To the extent permined by law, each pary waives its right to any jury trial with respect to any litigation directly or indirecdy arising out of, under or in connection with this Contract or any transaffion. Each party fiirther waives any right to consolidale any action in which a jury trial has been waived with any oth€r aclion in which a jury trial cannot be or has not been waived. In the event any judicial proceeding is instituted by either party, the prevailirg party shall be entitled ro an award ofits costs aod anomeys' fees incurred in connection with $rch proceeding." New Section 15.14 added as follows: 'Notwithsranding the foregoing, boft parties acknowledge that (a) each party hereunder is a municipality subject to the requirements ofthe Brown Act and the Califomia Public Records Act ("CPRA"), and O) each parry may be required to disclose certain information regarding the terms ofany transaction hereunder between the parties to the public, e.9., as part of its approval process. Ifeither party receives a request for information conceming this Base Contract or the terms ofany transaction hereunder between the parties under the CPRA, the party required to disclose will notiry the other pary prior to the date ofthe require-d disclosure as to the nature ofrhe request or requirement and the disclosing party's inrerpreration ofthe applicable disclosure requirements. The other party will have rhe sole obligation at its sole experse to seek a protective order or other appropriate remedy to prevent disclosure." r0. By:By: City ofVemon, a chartered City and Municipal Corporation ofthe State of Califomia Name: Kelly Nguyen Title: Director ofGas and Electric City of long Beach, a chartered City and Municipal Corporation of the State of Califomia Name: Title: 2 lcHJ0 S,yullclllc 9r0z I 6 ,\0t{ o3At3C3U POLICE DEPARTMENT Daniel Calleros, Chief of Police 4305 Santa Fe Avenue, Vemon, Califomia 90058 Telephone (323) 587-5171 Fax (323) 82G1487 November 16,2016 Honorable City Council City of Vernon Vernon, California Honorable Members: Attached are copies of the vemon Police Department Activity Log and Statistical Summary of Arrest and Activities which cover the period from 12:01 a.m., November 1,2016 up to and including midnight of November 15,2016. Respectfu lly submitted, VERNON POLICE DEPARTMENT O*;t &u-. DANIEL CALLEROS CHIEF OF POLICE DC/ar E4ctusise\ Intustritt VERNON POLICE DEPARTMENT D ep artment Activity Report .Iurisdiction: vERNoN Fi'sl Dale: 1110l/2016 Lasl Dale: 11t15t2016 Depolmenl Complaint Type Description All Units Pfimary Unit VPD 105 ,IG96H IG96M 140 20001R 20002 20002R 215 242 242R 4't5 45'lR 4594 il59R ,159S 459V 459VR 464R .r87R 503 586 594 594R 602 617F 653MR 90'l 90'tT 9Ol TR 9027 902TR 909C 909E 90!)T 91t 9114 9I,INR 9'r7A 92OPR 925 Ail59R ABl 09 ASTVFD BOSIG SOVEH CITCK coP OET oFFrcER tS 106 C7.96'r,962.1G',|0. WASH. EOUlPlr PICK UP THE JAIL PAPER WORK FROM HP JAIL IG96 MARY (MAIL DETAIL) SUPPLEMENTAL REPORT INJURY HIT ANO RUN REPORT NON-INJURY HIT AND RUN NON]NJURY HIT ANO RUN REPORT CARJACKING BATTERY MTTERY REPORT OISTURBING THE PEACE ARSON REPORT AUOIBLE BURGLARY ALARM BURGLARY REPORT SILENT BURGLARY ALARM BURGLARY TO A VEHICLE BURGLARY TO A VEHICLE REPORT PETTY THEFT REPORT GRANO THEFT REPORT EMBEZZLEMENT PARKING PROBLEM VANDALISM VANDALISM REPORT TRESPASS ORUNK IN PUBLIC ANNOYING PHONE CALLS REPORT UNKNOWN INJURY TMFFIC COLLISION INJURY TRAFFIC COLLISION INJURY TMFFIC COLLISION REPORT NON-INJURY TRAFFIC COLLISION NON.INJURY TMFFIC COLLISION REPORT TRAFFIC CONTROL TRAFFIC ENFORCEMENT TRAFFIC HAZARO 911 MISUSE / MNGUP CONTACT THE REPORTING PARTY 911 CALL NO RESPONSE REOUIRED ABANDONED VEHICLE LOST PROPERTY REPORT SUSPICIOUS CIRCUMSTANCES ATTEMPT BURGLARY REPORT PROBATION / PAROLE COMPLIANCE CHECKS ASSIST VERNON FIRE DEPARruENT BROKEN SIGNAL OR LIGHT BROKEN DOWN VEHICLE CITATION CHECK COP OETAIL OETECTIVE INVESTIGATION 143 2 5 6 2 11I 2 6 6 29 2 138 3 2 8 2 4 13 5 14 4 4 33 3 2 2 15 4 48 3 3 4 8I 12 6 4 1 35 2 2 39 3 17 6 3 2',| 137 2 4 5 I 4 5 I 2 4ll I 72 2 I 2 I 2 9 I l3 I 3 t2 5 2 28 2 2 J 4 5 l0 2 2 I t4 I I l5 3 lt 5 J ll 11n6,/i2016 06:11:19 Page of VERNON POLICE DEPARTMENT D ep artment Activity Report Jurisdiction: vERNoN Fhst Date: 11t01t2016 Last Date: 11t192016 Depa menl Complaint Type Description All Units Primary Unit VPD ID THEFT RPT IOENTITY THEFT REPORT ILLDPG ITIEGAL OUMPING ILLDPG RPT ILLEGAL DUMPING REPORT KTP KEEP THE PEACE LOCATE LOCATED VERNON STOLEN VEHICLE DETAIL DEAD ON ARRIVAL DEPARTMENTAL ASSIST DRIVING UNDER THE INFLUENCE OFFICER IS I06 REPORT WRITING FOUND PROPERTY REPORT FOLLOW UP GRANO THEFT AUTO REPORT HAILED BY A CITIZEN LOJACK HIT LICENSE PTATE READER PUBLIC ASSIST-POLICE PATROL CHECK PEOESTRIAN CHECK DETAIL DOA DPTAST DUI FILING FOUND FU GTAR HBC LOJACK LPR PAPD PATCK PEDCK 6 5 13 4 74 2 5 5I 2 1 3 13 2 1 5 5 78 47 b 17 1 4 4 1 5 1 231 2 76 3 3 4 17 4 4 I 5 I 72 2 5 5 5 2 I I 6 2 I I 3 66 2'.1 6 t0 I 2 4 I I I l9l I 56 2 I 3 8 4 PRSTMN PRISONERTMNSPORTED REC RECOVERED STOLEN VEHICLE RECOALARI' TEST THE RECORDS ALARM RECKLESS DT RECKLESS DRIVING (23103) REPO REPOSSESSION SEAACA SEAACA ANIMAL CALLS SHOTS SPEED SHOTS SPEED COI{TEST OR SPEEDING (23109) TRAFFIC STOI TMFFIC STOP UNATTACHED UMTTACHEOTMILER VCK VEHICLE CHECK VEH RELEASE VEHICLE RELEASE VMCVIO VERNON MUNICIPAL COOE VIOLATION WARRANT WARMNTARREST WELCK WELFARE CHECK WRNTSVC WARRAiTSERVICE Deparlmenl:l!62 93r Overall:1362 932 11/16/2016 06:11:19 Page of VERNON POLICE DEPARTMENT Police Activity Report PeriodEnding: llllill6 TRAFFIC COLLISIONS TOTAL NON-INruRY INJURY Pedestrian Fatalities City Properry Damage Hit & Run (Misdemeanor) Hit & Run (Felony) Persons Injured VEHICLES STORED Unlicensed Driver Abandoned/Stored Vehicle Traffic Hazard CITATIONS Citations Iss (Prisoner Release) Citations Iss (Moving) Ciafions Iss (Parking) Citations Iss (Total) Hazardous Non-Hazardous Other Violations CASES CLEARED BY ARREST ARl6-0325 CRt6-t742 I1364 H&S ARl6-0328 CR16-1769 273.5(A) PC ARl6-0329 CRl6-1778 ARl6-0330 CRl6-1781 ARl6-0332 CRl6-1804 ARl6-0333 CRl6-1809 11364 H&S ARl6-0339 CRl6-1835 11364 H&S AR16-0340 CRl6-1835 11377 H&S AR16-0341 CRl6-1848 647(F) PC AR16-0342 CRl6-1849 647(F) PC PROPERTY RECOVERED VEHICLES: $130,700 PROPERTY RECOVERED FOR OTHER DEPARTMENTS VEHICLES: 572,500 NO. 30 22 8 l3 7 22 14 t54 30 184 r24 28 2 602PC 503 PC 417.4 PC AR16-0343 CRl6-1850 484 PC VERNON POLICE DEPARTMENT REPORT FOR PERSONS ARRESTED PERIOD ENDING 11/15/16 ADULT FE MALE FEMALE TOTAL EMBEZZLEMENT 1 1 GMND THEFT AUTO INFUCT CORPOML INJURY ON SPOUSE 1 1 MAKEi PASS FICTMOUS CHECK POSSESS CONTROLLED SUBSIANCE ROBBERY WARMNT (VERNON CASE) WARRANT (OUTSIDE AGENCY) TOTAL FELONY ARRESTS 2 0 2 ADULT MISDEMEANOR ARRESTS AND DISPOSITIONS MALE FEMALE TOTAL BRANDISHING FIREARM REPUCI 1 1 DISORDERLY CONDUCT: INTOX DRUG 2 2 DRIVING UNDER THE INFLUENCE 1 1 PETry THEFT 1 1 POSS. CONTROLLED PAMPHERNAL]A 3 1 4 VANDALISM: DEFACE PROPERTY TRESSPASSING 1 1 WARMNT (VERNON CASE)3 3 6 WARMNT (OUTSIDE AGENCY)3 3 TOTAL MISD. ARRESTS t4 5 19 DETAINED --- FELONY AND MALE FEMALE TOTAL BURGLARY MINOR POSS. OF ALCOHOL RUNAWAY VEHICLE THEFT WARMNTS (BENCH) TOTAL JUVENILES DET.0 0 0 TOTAL FELONY ARRESTS (ADULI) TO DATE: TOTAL MISDEMEANOR ARRESTS (ADULT) TO DATE: TOTAL JUVENILES DETAINED (FELONY AND MISDEMEANOR) TO DATE: TOTAL ARRESTS AND DEIAINED JUVENILES (FELONY AND MISDEMEANOR) TO DATE: 110 345 oo)0. 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S s { \ llq\) s3\l\ \J \ \ a)s !\ L $q s { -BI t\z Irl\FFrq Nt{aI { \eoeq s zozEul Et RECEIVED N0\/ 2 3 20t6 CITY CTERl('S OFTICE RECEIVED mv22mt CIW ADMINISIRATION @ 11-zztv STAFF REPORT VERNON POLICE DEPARTMENT DATE: TO: FROM: RE: December 6, 2016 Honorable Mayor and Council Members Daniel Calleros , Chief ol Police // Drug Enforcement Administration Agreement Recommendation A. Find that granting authority to execute the referenced agreement is exempt from Califomia Environmental Quality Act ("CEQA") review, because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a'lroject" as defined by CEQA Guidelines section 15378; and B. Authorize the Police Chief to execute an agreement with the Drug Enforcernent Administration (DEA), in substantially the same form as submitted herewith, for continued participation in the Southwest Border Initiative (SWBI) taskforce. Backsround Since 2008, the Vernon Police Departrnent (VPD) has dedicated one Detective to participate in the SWBI narcotics investigation taskforce. The goal of the SWBI narmtics taskforce is to disrupt illicit drug traffic in the region by immobilizing targeted violators and trafficking organizations, and gather and report intelligence data relating to narcotics trafficking and dangerous drugs. Participation in the SWBI taskforce has been advantageous for the VPD. The assigned Detective has gained vast experience and knowledge from the taskforce investigations. The VPD has also utilized resources from the taskforce with multifaceted investigations when there is a need for additional personnel and expertise. tn addition, participation in the taskforce provides the VPD revenues from asset forfeiture proceeds related to narcotics investigations. In order to continue its participation in the SWBI taskforce, the VPD must enter into an annual agreernent with DEA. City legal staffhas reviewed and approved the agreernent as to form. Fiscal Impact There is no fiscal impact by the approval of the SWBI taskforce agreement. Attach ment(s) 1. DEA agreernent LOS ANGELES HIGH INTENSITY DRUG TRAFFICKING AREA SOUTHERN CALIFORNU DRUG TASK FORCE STATE A}{D LOCAL HIDTA TASKFORCE AGREEMENT BETWEEN THE DRUG ENFORCEMENT ADMINISTRATION ANI) THE VERNON POLICE DEPARTMENT This agreement is made this lst day of October 2016, between the United States Department of Justice, Drug Enforcement Administration (hereinafter "DEA"), and the Vemon Police Department (hereinafter "VPD"). The DEA is authorized to enter into this cooperative agreement conceming the use and abuse ofcontrolled substances under the provisions of2l u.s.c. $ 873. WHEREAS, there is evidence that trafficking in narcotics and dangerous drugs exists in the Los Angeles High lntensity Drug Trafficking Area (Los Angeles, Orange, Rivenide, and San Bemardino Counties), and that such illegal activity has a substantial and detrimental effect on the health and general welfare ofthe people of the County ofLos Angeles, the parties hereto agree to the following: l. The Southern Califomia Drug Task Force (hereinafter "SCDTF'), a Los Angeles High Intensity Drug Traffrcking Area (hereinafter "LA-HIDTA") will perform the activities and duties described below: a. disrupt the illicit drug traffic in the area by immobilizing argeted violators and trafEcking organiznllsns' b. gather and report intelligence data relating to trafficking in narcotics 2nd dangsrsus drugs; and c. conduct undercover operations where appropriate and engage in other traditional methods of investigation in order that the Task Force's activities will result in effective prosecution before the courts of the United States and the State of Califomia. 2. To accomplish the objectives of the SCDTF, the VPD agrees to detail one (l) experienced officer to the SCDTF for a period of not less than two years. During this period of assignment, the VPD officer will be under the direct supervision and control ofDEA supervisory personnel assigned to the Task Force. 3. The VPD officer assigned to the SCDTF shall adhere to DEA policies and procedures. Failure to adhere to DEA policies and procedures shall be grounds for dismissal from the SCDTF. 4. The VPD ofiicer assigned to the Task Force shall be deputized as a Task Force Offrcer of DEA pursuant to 2l U.S.C. Section 878. 5. To accomplish the objectives of the SCDTF, DEA will assign Special Agents to the SCDTF. DEA will also, subject to the availability of annually appropriated flrnds or any continuing resolution thereof, provide necessary fi:nds and equipment to support the activities of the DEA Special Agents and officers assigned to the SCDTF. This support will include: offrce space, offrce supplies, travel f,rnds, firnds for the purchase ofevidence and information, investigative equipment, training, and other support items. 6. The VPD shall comply with Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, as amended, and all requirements imposed by or pusuant to the regulations of the United States Departrnent of Justice implementing those laws, 28 C.F.R. Part 42, Subparts C, F, G, H and I. 7. The term ofthis agreement shall be effective from the date in paragraph number one until September 30,2017. This agreement may be terminated by either party on thirty days' advance written notice. Billing for all outstanding obligations must be received by DEA within 90 days of the date of termination of this agreement. DEA will be responsible only for obligations incurred VPD during the term ofthis agreement. For the Drug Enlorcement Administration: Date: John S. Comer Special Agent in Charge Los Angeles Field Division For the Vemon Police Deparunent Daniel Calleros Chief of Police ATTACHMENTS: (l). OJP Form4061i6 (3-91): Certifications Regarding Lobbying; Debarrnent, Suspensions and Other Responsibility Matters; and Drug Free Workplace Requirements (2). Roster oflocal, State, or Federal Agency Personnel Assigned to the United States Drug Enforcement, Los Angeles Field Division Date: ROSTER OF LOCAL, STATE, OR FEDERAL AGENCY PERSONNEL ASSIGNED TO THE DEA TASKFORCE NAME OF AGENCY: Vemon Police Department l Kent Stevenson ATTACHAN ENDORSED OJP.4O6I HERE U.S. DEPARTMENT OF JUSTICE OFFICE OF JUSTICE PROGRAMS OFFICE OF THE COMPTROLLER CERTIFICATIONS REGARDING LOBBYING; DEBARMENT, SUSPENSION AND OTHER RESPONSIBILITY MATTEHS; AND DRUG.FREE WORKPLACE REQUIREMENTS Applicants should reler to the regulations citcd below to detemin€ the certification to which they are required to attest. Applicants should also review the instructions lor certificalion included in the regulatiorls before completing this from. Signature oI this {orm provides tor compliance with cerlificalion requirements under 28 CFR Pan 69, 'New Restrictions on Lobbying" and 28 CFR Pan 67, "Govemment-wide Department and Suspension (Nonprocurement) and Govemment-wide Requirements for Drug-Free Worlglace (Grants).' The certilications shall be treated as a material representation of fact upon reliance $dll be placed when the Department ot Justice determines to award the covered transaclion, grant, or cooperative aoreement. {c} The undeGioned shall reouire that the lanouaoe ol this cer-fr,ication be included in the award documents'Ior ell subawardsal alt tiers (induding su under grants andcoooerative aoreemCnts. ahC thal all sub- recibients shafcertity and y- 2. DEBABTIENT, SUSPENSION, AND OTHEHBESPONSIBILITY MATTERS(DtBECT RECIPTENT) 1299. Dibarment andCFH Pn 67, lor prospec- ransactions, as delined at A- The applicant cedifies that it and its principals: la) Ar - oroooEed lor dobar-ment, e'diolal of Federalbenoli voluntaritv excludedtrom Fedelal tjeparhenl or agency; {bt Have not wilhin a thre€-vear oeriod or€cedino thh aoDlica-tron been convicted of or ha6 a olvil iudohenl rsfdEred dqainsllhem lor commission of fraud or a irimlinal otldns€ in co-nnec- fion rMth obtaining, attempling lo obtain, or p€rfoimlng a under aantitrusttorgery,ng talse er,,vise criminallv or(Federal. Shtd, or ng:es enume.ated in Id) Fbv6 nol withrn a th€e.voar o€riod Drecedino lhis aDolica-6.in had on6 or more oublic trahsadiohs (Feddral. Stilb. or l@al) te.minated tor cauSe or defaull; and B. Where th€ aoollcant is unable to certifv to anv ol the stat€ments in lhis certification. he or she'shall athch ano@lanatjon to ihis application. 3. ORUG-FREE WOAKPLACE (GRANTEES OTHEB THAN INDIVIDUALS) As required by the Drug-Free 88, andimDlenienled al 28 CFFI Part 6 terh. asdeined al 28 CFR Pan 67 67.620- A. The applicanl certifies that it will or , / l continue to provide a d rug-fr€b'workplace by: oyees that the, possesgon, orrn lhe orantee's be takei against (b) Esiablishing an on{oing drug-lree awareness program to rnlorm emproyees aDouF (1) The dang€rs of drugE abuse in the workplace; (2) The grantosl policy of maintaining a drug-free worl$lace; (3) Any availabla drug counseling, rehabilitation. ard empoyee assrstEnc€ prograrE; ano 14) Ths o€nanios lhat mav be imoosed umn emolove€s tor dri.rg abu!€ violations occuriing in lhb worlelace; each employeg to be €ngag€db€ given a copy ol the stab. ldt NotiMno the emdo\re6 in the statement rsouired bvidragraih Ia) thal a5 d condition of omployment inder th6grant. ths employe€ w l- oJp FoRM,r06t,6 (3-9't) REPLACES oJP FoRMs 1o61ts, 4062y0 ANo 4061/4 wHrcH AFE oBSoLETE- (1) AUde by the terms ol he Satement; and {2) Notilv ule emoklva in writino ol his or hsr csnviction for aiiolation'o, a criririna druo slratUte occJrdno in he worlDlace no later lhan fivo calsndar ihys atter such coi'vidton: Ifl Takino ona of the lol,owino aclidls. wftnih 30 caleodardavs ol -recdvino notic€ undEr subf€raorati (dX2), wltr respoct lo any employee who is so convLte(F ll) Takino ac{ion aoilhst gJch anbrirotoveel natioo, coislEtsni wiul hereqilir6m6n ol 1973, ag amended: or inad lor orcg- Io) Makino a oood taitr efiod to continus to mCntain a druo-fi6e workilace- through implementation of paraglaphs (a). (b), (c), (d). (e). and (0. - B. The orantee mav inserl in th6 soe€ orovlded below lhesite(s) toi the osrtoimanca of work'done in connec'tion wih trl€ iiDecific oradt: Place of Pertormanc€ (Skeet address, city, cosnby. state, zip code) ch€ck f-,here- -if the(e are workdac€ on file tlat a.e nol idenlilied hat 6ral 3E Chock E if trle State has elected to conpleie OJP Form4 n-- DRU(}FBEE WORXPLTACE(GRANTEES V['HO ARE INDIVIDUALS) A9 tre dJty authorizsd rep.es€ntatil€ ot thg appli:ant, I heroby cortity that h6 apdicant will comply rvith he abovo ceflilicalions. l. Grada€ Nam€ and Addr€6s: Vernon Police Department 4305 S. Sante Fe Avenue Vernon, CA 90058 2, Application Number andor Proiect Name Daniel Calleros, Chief of Police, Vernon Police Department 3. Grantee IBS/Vendor Number 4. Typed Name and ]jtle of Authoriz€d Feprosantative 5. Sr'gnatu.e 6. Dat€ (1) Atide by the terms of tle Satomonl; and (2) Nolify trle employer in vrritinq ol his or her Genvictjm for avrolation ol a criminal druo statuts occu,rino in the worlolaceno laler than live calendar ihys aftsr sudr con'victlon; lD Takino one ol lhe followino aclio.rs. wimin 30 calandari,ays ol -recdving notice un&r subpa'ragraph (dX2), witt respect to any employee wiro is so cooviatsd- (1) Takino aclion aotlnst srch andrhployeel naton, cdl6l6tent with herequiremen ol 1973, aB emondod: or (o) Makno a oood falfi sffort to continue to maintain a druo.fr'de yrordlacd through implementation ot paragtaphs (a). (b), (c), (d). (e). and (f). - B. The orantee mav rnseat in the soace o(ovlded below ihesite(s) foi tho p€rtoimance of work 'dme' in cdnnedion wtrf€ Specific granl: Place ol Perlormance (Skeet address, city, country, state, zipcode) Chsk E it there are wofiplaca on file trlat arc not identifi€d he16- Ch6ck E if fie Stata has elscted to complsis OJP Form&1n-- DRUGFREE WORXPLACE(GMNTEES WHO ARE INDTVIDUALS) As (ooired W f 198a. and imolgn'ented al oranieeis. asd€trnod at 28 CF E2G I cerlify hat I will not engagesnibutidn, dispensinq, .poss€i.substance h condittn any ,€ t|g duly authodzsd lBp(EootalirE ol the ap9llcanl I her€Dy csriry 0lat he applicant wif comply wilh he abovo caniftato.rs. l. Gran3., NanE and Addr6: Kent Stevenson 2. Appli:aliq| Numb€r and/or Prci€ct Name Daniel Calleros, Chief of Police, Vemon Police Department 3 Grantee IRs/Vendor Number 4. Tyf,ed Namo and Tltle ot Authorized Repr6aenhtive 5, Signature 6. Date RE EIVED DEC 0l 2016 CITY CLERK'S OFFICE RECEIVED mv29mf CITY ADiltlt|SIRAT|0Nc/FSTAFF REPORT CITY CLERK DEPARTMENT DATE: TO: FROM: RE: December 6, 2016 Honorable Mayor an cil Maria E. Ayala, City Approval of a Resolution for City Council Appointments/Reappointments as Representatives to Gateway Region Integrated Water Management Joint Power Authority Recommendation A. Find that approval ofthe proposed action is exempt from California Environmental Quality Act ("CEQA") review, because it is a continuing administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378; and B. Appoint key staff as either delegate(s) and/or alternate(s) to the following board of the agency as follows: l. Gateway Region Integrated Water Management Joint Power Authority (also known as Gateway Water Management Authority Policy Board) Appoint Director of Public Works, Water and Development Services Derek Wieske as the delegate; and appoint as altemate, Storm Water and Special Projects Analyst Claudia Arellano. Backsround ln review of its current records, the need to update employee appointments to specific boards has been identihed. The proposed will ensure current and appropriate representation of the City of Vernon for the Gateway Region Integrated Water Management Joint Power Authority (also known as Gateway Water Management Authority Policy Board). The prior resolution (Resolution No. 2015-50) appointed the title of positions as board members, this action specifies the names of City Staff who will serve as the delegate. Page I of 2 Fiscal Imoact There is no fiscal impact Attachment(s) Draft Resolution: A Resolution of the City Council of the City of Vernon Updating City Staff Members' Appointment to the Gateway Region lntegrated Water Management Joint Power Authority Page 2 of 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON UPDATING CITY STAFF MEMBERS' APPOINTMENTS TO THE GATEWAY REGION INTEGRATED IfATER MANAGEMENT ,JOINT POWER ATIIHORITY ALSO KNOhIN AS GATEWAY WATER MANAGEMENT AUTHORITY POLICY BOARD WHEREAS, the City of Vernon (the "City"), is a municipal corporation and a chartered ciEy of the State of California organized and exist.ing under its Charter and Che ConscituE.ion of Ehe Statse of California; and WHEREAS, on Ju]y 2L, 2075, tshe City Council of Che City of Vernon adopEed Resolutsion No. 2015-50 updating City Staff Mefl cers t.o various external Agencies and/or Committees; and WHEREAS, Uhe CiEy Council of the City of Vernon desires to updaUe appoinEments of CiEy Staff Members t.o t.he Gatseway Region InEegraEed Wat,er ManagemenE ,Joint Power AuthoriEy also known as Gatseway WaEer Management AuE.horiEy Policy Board. NOW, THEREFORE, BE TT RESOLVED BY THE C]TY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION l-: The Citsy Council of the Citsy of Vernon hereby finds and deEermines that the above recitals are true and correcc. SECTION 2: The City Council of the City of Vernon finds EhaE Ehis action is exempt under the California Environmentsal ouality Act (CEQA) , because it is a continuing administrative activj.ty tshat wil-l- not result in direct or indirect physical changes in Lhe environment, and Eherefore does not. constsitute a 'rproject" as defined by CEQA Guidelines section 15378. SECTION 3: The City Council of the City of Vernon hereby appoints Derek wieske, Director of Public works, WaEer and Development Services. Eo serve as t.he City's delegate on the cateway Region fnEegrated Water Management ,JoinE Power Authority al-so known as Gateway Water Managemenc AuthoriEy Policy Board and Claudia Are1lano, SCorm WaCer and Special Project.s Analyst, as the City's alternaEe. SECTION 4: Such appoinEmenEs shaII be effective until Ehe death, resignation, disqualificaEion or subsequent removal by the City Council of such represent.atives. SECTION 5: Any resoluE.ions or parts of a resolution or minuEe orders in conflict with this Resolution are hereby repealed as Eo the portsions in conflict, only. SECTION 5: The Cit.y Clerk, or Deputy City Clerk, of t.he City of Vernon shall cerEify to the passage, approval and adoption of tshis resoluEion, and the City C1erk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk's, or Deput.y City Clerk's, certification to be entsered in Ehe Fil-e of Resolutions of Ehe Council of this City. APPROVED AND ADOPTED this 6th day of December, 2015. Name : Tit.Ie: Ylayor / Mayor Pro-Tem ATTEST : CiEy Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian Byun, Deputy City Attorney 2 STATE OF CAIIFORNIA )) ss COI'NTY OF LOS ANGELES ) t,, CiCy Clerk / Depuuy City Clerk of the City of Vernon, do hereby cerEify Chat the foregoing Resolution, being Resolution No. , h,as duly passed, approved and adopted by the City Council of the City of Vernon ats a regular meeting of the City Council duly held on Tuesday, December 6, 2016, and tshereafter was duly signed by the Mayor or Mayor Pro-Tem of E.he CiEy of vernon. ExecuEed this day of December, 2OL5, aE Vernon, California. CiEy Clerk / Deputy City Clerk (SEAL) -3- RECETvED oEe 01 2016 IREEEIVED DEC 0l 206 CIiY CLERKS OFFICE STAFF REP PUBLIC WORKS, WATER & DE DEPARTMENT DATE: TO: FROM: December 6, 2016 Honorable M nd City Council Derek Wieske, Director of Public Works, Water and Development Senices Department Originator: Felix Velasco, Assistant Engineel' 77 Recommendation from the Vernon Housing Commission to Delay the Next Phase of the City Housing Remodel Project to Provide the Housing Commission with an Opportunity to Review the Contract Specifications RE Recommendation A. Find that the recommendations from the Vemon Housing Commission do not constitute a "project" pursuant to Section 15378OX2) of the Guidelines to the Califomia Environmental Quality Act ('CEQA) because such action constitutes an administrative activity; and even if the adoption of the proposed item did constitute a project, it would be exempt from CEQA in accordance with Section 15061(bX3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve the recommendation from the Vemon Housing Commission (VHC) to delay the Housing Remodel Project in order to provide the Commission with an opportunity to review the plans and contact specifications with stafl and to explore the need of additional disabled accessibility features in the City's housing units, related to the Housing Remodel Project. Backsround The City-owned housing unit located at 4325 Furlong Place is scheduled to become vacant early in 2017. This vacancy was determined by the Relocation Priority Interest List established through a lottery system at the Special Vemon Housing Commission meeting held on November 9, 2016. As a result, staff is planning to issue the project plans and specifications for competitive bidding for the remodeling of that unit as soon as possible. At the November 9s meeting, the Housing Commission was also presented with a summary of the recently remodeled City-owned single family unit located at 4323 Furlong Place. At this meeting, members of the public expressed concems regarding the construction activities of the recent Housing Remodeling Project. Their concems included parking, work hours, dust, and noise. As a result, the Housing Commission formed a sub-committee to work with staffto review the construction documents for the next phase of the Housing Remodel Project, which will likely be 4325 Furlong Place. The sub-committee will also work with staff on developing procedures to address public questions and concems and to ensure that public concems are addressed in future housing projects. Through the sub-committee, the Housing Commission would also like to explore the issue of disabled accessibility in City-owned housing to determine the need to remodel additional housing units in accordance with current disabled accessibility guidelines. The disabled accessibility guidelines may include the design of disabled accessibility ramps, wider hallways and reconfiguration of the bathroom, kitchen, and laundry area. The City curently rents units to disabled individuals and the Commission has expressed a desire to analyze the cost effectiveness of expanding the City Housing disabled accessibility progmrn as the City continues to remodel the remaining units. The City hosted an open house on December l"t at 4323 Furlong Place where the general public had an opportunity to provide feedback on the construction activities and on the remodeling standards. Statr will share the public's concems with the Housiag Commission and will make every effort to address those concems in the plans and specifications of future housing remodeling projects. If Council approves the VHC's recommendation, the next phase of the City Housing Remodel Project would be postponed pending further feedback from the Housing Commission. It is anticipated that staff and the VHC sub-committee will require approximately three months to address the VHC's housing remodel concerns. Subsequently, the Housing Commission will provide is recommendation to the City Council on the best remodel options to proceed with the City Housing Remodel Project. Fiscal Imoact There is no major fiscal impact associated with the delay of the subsequent phase ofthe housing remodeling project and the expansion of the construction document review process. Attachments None Page2 of2