2017-02-21 City Council MinutesMINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE
CITY OF VERNON HELD TUESDAY, FEBRUARY 21, 2017, 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; Councilmember Ybarra 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.
No public comment provided. PRESENTATION
1. Service Pin Awards for January 2017
Presented by: Michael Earl, Director of Human Resources
NAME DEPARTMENT TITLE YEARS
David L. Kimes Fire Fire Battalion Chief 30
Ana K. Rueda Human Resources Human Resources Analyst 15
Norma Rodriguez Police Police Dispatcher 15
Human Resources Director Michael Earl presented the service pin award recipients; no awardees were in attendance.
2. 2017 Second Quarter Financial Update
Presented by: William Fox, Director of Finance Finance Director William Fox provided a PowerPoint Presentation.
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 Martinez: Yes Ybarra: Yes
Lopez: Yes
Claims Against the City – Received and Filed 3. None
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Warrant Registers 4. Approval of City Payroll Warrant Register No. 728, totaling $3,306,397.05, which covers the period of January 31 through January 31, 2017 and consists of the
following:
A. Ratification of direct deposits, checks and taxes totaling $2,277,361.60; and
B. Checks and electronic fund transfers (EFT) totaling $1,029,035.45.
5. Approval of City Warrant Register No. 1466, totaling $2,105,615.47, which covers the period of January 31 through February 13, 2017, and consists of the following:
A. Ratification of wire transfers totaling $1,538,295.53; and
B. Ratification of the issuance of early checks totaling $535,062.49; and
C. Authorization to issue pending checks totaling $32,257.45; and
D. Voided Check No. 353691 totaling $70.08.
6. Approval of Light & Power Warrant Register No. 431, totaling $2,040,999.49, which covers the period of January 31 through February 13, 2017, and consists of the following:
A. Ratification of wire transfers totaling $2,012,459.03; and
B. Ratification of the issuance of early checks totaling $28,540.46.
7. Approval of Gas Warrant Register No. 219, totaling $2,523.12, which covers the
period of January 31 through February 13, 2017, and consists of the following:
A. Ratification of wire transfers totaling $162.53; and
B. Ratification of the issuance of early checks totaling $2,360.59.
City Administration Department 8. Report on Contract Exempt from Competitive Selection by the City Administrator, to be received and filed (pursuant to Section 2.17.12(B)(3) of the Vernon Municipal
Code)
City Attorney Department 9. Approval of an Amendment No. 1 to the Attorney Services Agreement (Litigation)
between the City of Vernon and Rutan & Tucker regarding specialized litigation
and legal advisory services Recommendation:
A. Find that approval of the proposed Amendment No. 1 to the City’s agreement with Rutan & Tucker is exempt from California Environmental Quality Act (“CEQA”) review, because it is a continuing administrative and fiscal 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.
B. Authorize the City Administrator to enter into an Amendment No. 1 to the Attorney Services Agreement (Litigation) between the City of Vernon and Rutan & Tucker,
in substantially the same form as submitted herewith, for an additional amount not
to exceed $100,000.00.
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Fire Department 10. Activity Report for the period of January 16 through January 31, 2017
Gas and Electric Department 11. Approve Base Contract (“NAESB”) with Macquarie Energy, LLC for Sale and Purchase of Natural Gas
Recommendation:
A. Find that (a) the agreement between the City of Vernon and Macquarie Energy,
LLC 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 Macquarie Energy, LLC (“Macquarie”) in
substantially the same form as attached to the staff report, for the purpose of buying
and selling natural gas to or from Macquarie, 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.)
12. Approve Amendment No. 6 to the Services Agreement between the City of Vernon and Cannon Corporation for Engineering Design and Construction Support Services
Recommendation:
A. Find that the proposed action is exempt under the 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. Approve Amendment No. 6 adding funds in a not to exceed amount of $22,400 to the
Services Agreement between the City of Vernon and Cannon Corporation for
Engineering Design and Construction Support Services for the Well 21 Project.
Health and Environmental Control Department 13. Monthly Activity Report for the Month of January 2017, to be received and filed
Public Works, Water and Development Services Department 14. Building Department Report for the Month of January 2017, to be received and filed
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ORDINANCE 15. Ordinance No. 1239 – An Ordinance of the City Council of the City of Vernon
amending (A) Section 30.8 of Article II of Chapter 30 of the Vernon Municipal Code;
and (B) Rule No. 18 of the City of Vernon Rules for Electric Service to clarify the prohibition on private sale/resale of electricity (Second Reading and Adoption)
Recommendation:
Items A-B: A. Find that the ordinance amendment to Section 30.8 of the Vernon Municipal Code referenced in this staff report is exempt under the 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. Approve the second reading, and adopt an ordinance amending Section 30.8 of
Article II of Chapter 30 of the Vernon Municipal Code and Rule No. 18 of the City
of Vernon Rules for Electric Service to clarify the prohibition on private sale/resale
of electricity. Director of Gas and Electric Kelly Nguyen reported on the proposed.
It was moved by Woodruff-Perez and seconded by Martinez to approve the second reading, and
adopt Ordinance No. 1239. Motion carried, 5-0. Davis: Yes
Woodruff-Perez: Yes
Martinez: Yes
Ybarra: Yes Lopez: Yes
NEW BUSINESS
City Administration Department
16. Resolution No. 2017-05 - A Resolution of the City Council of the City of Vernon
Approving and Authorizing the Execution of a Development Agreement by and
Between the City of Vernon and National Ready Mixed Concrete Company Recommendation:
A. Find that approval of the proposed development 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 to the extent National Ready Mixed Concrete
Company seeks to engage in actual physical construction or development on the leased premises, such would be subject to separate and independent CEQA review and analysis; and
B. Adopt a resolution approving and authorizing the execution of a development
agreement between the City of Vernon and National Ready Mixed Concrete Company for the purpose of developing a Point of Sale facility on the site located at 2626 East 26th Street in the City of Vernon. The agreement will allow National
Ready Mixed Concrete Company to lease the site from Vernon for a term of up to
35 years.
City Administrator Carlos Fandino reported on the proposed.
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Councilmember Ybarra inquired about the environmental issues regarding this company, Administrator Carlos Fandino responded that they were not anticipating any environmental
impacts.
It was moved by Woodruff-Perez and seconded by Martinez to approve Resolution No. 2017-05 Motion carried, 5-0.
Davis: Yes
Woodruff-Perez: Yes
Martinez: Yes Ybarra: Yes Lopez: Yes
17. Resolution No. 2017-06 - A Resolution of the City Council of the City of Vernon in
Support of the Passage of Measure H, the Los Angeles County Plan to Prevent and Combat Homelessness Recommendation:
A. Find that approval of the attached resolution in this staff report is exempt from California Environmental Quality Act (“CEQA”) review, because it is a general policy and procedure making 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 the attached resolution supporting the passage of Measure H, the “Los Angeles County Plan to Prevent and Combat Homelessness”, which is a March 7
ballot initiative to raise the sales tax across the County of Los Angeles, and allocate
new revenues to fund homeless services.
Administrator Fandino reported on the proposed.
Mayor Davis noted the various issues surrounding homelessness in the County of Los Angeles.
Public Comment
Fred MacFarlane spoke about Vernon Grants that currently combat homelessness.
Councilmember Ybarra inquired about how the City will try and earn funds from Measure H,
Administrator Fandino stated that there are ongoing efforts to look into ways to capture the necessary funding to assist in homelessness.
Police Chief Daniel Calleros explained that the funding would help deal with the homeless issue
in Vernon, even though it is rather small.
It was moved by Ybarra and seconded by Lopez to approve Resolution No. 2017-06. Motion
carried, 5-0.
Davis: Yes Woodruff-Perez: Yes Martinez: Yes
Ybarra: Yes
Lopez: Yes
18. Resolution No. 2017-07 - A Resolution of the City Council of the City of Vernon Appointing Samuel K. Wilson to Serve as the Interim Director of Public Works, Water and Development Services and Approving and Ratifying the Execution of a
Related Temporary At-Will Employment Agreement
Recommendation:
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A. Find that approval of the agreement proposed in this staff report 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 appointing Samuel K. Wilson to serve as Interim Director of
Public Works, Water and Development Services of the City of Vernon effective
February 13, 2017, and approving and ratifying the execution of a related temporary
at-will employment agreement. This appointment is temporary until such time as a recruitment and selection process can be completed for a new director.
Administrator Fandino reported on the proposed.
Councilmember Ybarra inquired as to when the recruitment would begin, Director Earl explained that steps were being taken to start the recruitment.
Councilmember Ybarra inquired about the department restructuring, Administrator Fandino
explained the ongoing restructuring effort.
It was moved by Martinez and seconded by Ybarra to approve Resolution No. 2017-07. Motion
carried, 5-0.
Davis: Yes
Woodruff-Perez: Yes Martinez: Yes
Ybarra: Yes
Lopez: Yes
City Attorney Department
19. Resolution No. 2017-08 - A Resolution of the City Council of the City of Vernon Approving and Adopting an Amendment to the Records Retention Schedule
Maintaining Documents and Records by All City Departments Except the Police
Department Recommendation:
A. Find that the approval of the amendment proposed in this staff report is exempt under
the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule is that CEQA only applies to projects that may have
an effect on the environment because the proposal will merely change how the City
retains and destroys certain City documents.
B. Adopt a resolution approving and adopting an Amendment, adding records of the City Attorney’s Office, to the Records Retention Schedule maintaining documents
and records by all City Departments except the Police Department.
City Attorney Hema Patel reported on the proposed. Councilmember Ybarra inquired as to the impact the retention schedule would have on documents
involving AB 46, City Attorney Patel explained that the retention schedule helps eliminate
duplication and unnecessary long term storage of records. City Attorney Patel noted that the Office
of the City Clerk would be updating the Citywide Records Retention Schedule.
It was moved by Woodruff-Perez and seconded by Martinez to approve Resolution No. 2017-08.
Motion carried, 5-0.
Davis: Yes Woodruff-Perez: Yes Martinez: Yes
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Ybarra: Yes Lopez: Yes
Gas and Electric Department
20. Approve Amendment No. 1 to the Electric System Service and Maintenance Agreement for Electric System Maintenance with Petrelli Electric, Inc.
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. Approve Amendment No. 1 to the Electric System Service and Maintenance Agreement for Electric System Maintenance with Petrelli Electric, Inc. to be
extended for an additional five (5) years; and
C. Authorize the City Administrator to sign proposed Amendment No. 1 between the City of Vernon and Petrelli Electric, Inc., in substantially the same form as submitted herewith.
Director of Gas and Electric Kelly Nguyen reported on the proposed.
Public Comment
Marisa Olguin, Vernon Chamber of Commerce, spoke about the long history Petrelli has with the
City, the business community holds them in high regard, and supports the contract extension.
Councilmember Ybarra inquired about the actual year to year cost of the contract, Director Nguyen
explained the yearly costs.
A dialogue ensued between the City Council and staff regarding costs and upcoming capital
improvement projects. It was moved by Martinez and seconded by Lopez to approve Amendment No. 1 to the Electric
System Service and Maintenance Agreement with Petrelli Electric, Inc. 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: A Feb. 10th ATM fire near 2500 Santa Fe
Avenue; the ongoing peaceful demonstration at the Farmer John plant; and a weekend DUI
checkpoint.
Captain Michael Gillman reported on graffiti on the 2500 block of Alameda Street, Mayor Davis noted graffiti near 3346 Fruitland Avenue and graffiti near the corner of Boyle Avenue and Slauson
Avenue.
Fire Chief Bruce English reported on incidents throughout the City and USAR personnel responded to an incident in Montebello.
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Interim Public Works, Water and Development Services Director Kevin Wilson reported on the trees collapsing around the City due to weather and his transition back to his previous position.
Gas and Electric Director Kelly Nguyen reported on outages and incidents caused by the inclement
weather. She also noted upcoming requests for proposals. Mayor Davis inquired about a technical aspect of the proposal and Director Nguyen answered.
Health and Environmental Control Director Keith Allen reported on annual food truck inspections.
City Administrator Carlos Fandino requested feedback on the budget process. Councilmember Ybarra wanted clarification on the “TBD” listed on the budget. Finance Director William Fox clarified as to who the “TBD’s” consisted of. Administrator Fandino continued and reported on a
Measure Q community outreach event, the upcoming meeting with Moody’s, and the Legislative
drive in Washington D.C.
22. City Council Reports – brief AB1234 reports, or report on: activities, announcements, or directives to staff.
Mayor Davis recessed the meeting at 10:17 a.m.
CLOSED SESSION At 10:17 a.m., the City Council entered into closed session to discuss the following agendized
items:
23. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (2) Government Code Section 54956.9(a)
A. Jerry Chavez v. City of Vernon
Workers Compensation Appeals Board Case No. ADJ9399030
B. Jerrick Torres and Lyndon Ong Yiu vs. City of Vernon, et al.
Los Angeles Superior Court
Case No. BC620265
24. PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE Government Code Section 54957
At 10:32 a.m. the City Council exited closed session. City Attorney Hema Patel announced that three items were discussed and that there was no reportable action.
With no further business, at 10:32 a.m., Mayor Davis adjourned the meeting.
________________________
William J. Davis
Mayor ATTEST:
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Maria E. Ayala City Clerk