20201103 City Council Agenda Packet
Agenda
City of Vernon
Regular City Council Meeting
Tuesday, November 03, 2020, 09:00 AM
City Hall, Council Chamber
4305 Santa Fe Avenue
Vernon, California
Leticia Lopez, Mayor
Melissa Ybarra, Mayor Pro Tem
William Davis, Council Member
Carol Menke, Council Member
Diana Gonzales, Council Member
THIS MEETING WILL BE CONDUCTED PURSUANT TO GOVERNOR NEWSOM'S EXECUTIVE
ORDER N-29-20.
The public is encouraged to view the meeting at http://www.cityofvernon.org/webinar-cc or by
calling (408) 638-0968, Meeting ID 942-3520-8409#.
You may submit comments to PublicComment@ci.vernon.ca.us with the subject line “November
3, 2020 City Council Meeting Public Comment Item #__.” Comments received prior to 8 a.m.,
Tuesday, November 3, 2020, will be read into the record.
CALL TO ORDER
FLAG SALUTE
ROLL CALL
APPROVAL OF 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 Coun cil deliberation on those specific
matters.
PRESENTATIONS
1. Finance/Treasury
Presentation on City-wide Enterprise Resource Planning System
Recommendation:
No action required by City Council. This is a presentation only.
Regular City Council Meeting Agenda
November 03, 2020
Page 2 of 6
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.
2. City Council
Approval of Minutes
Recommendation:
Approve the October 13, 2020 Special and the October 20, 2020 Regular City Council
meeting minutes.
1. 20201013 Special City Council Meeting Minutes
2. 20201020 Regular City Council Meeting Minutes
3. Finance/Treasury
Operating Account Warrant Register
Recommendation:
Approve Operating Account Warrant Register No. 55, for the period of October 4
through October 17, 2020, which totals $4,527,001.04 and consists of ratification of
electronic payments totaling $4,442,777.83, ratification of the issuance of early checks
totaling $84,223.21 and voided Check No. 606307 totaling $2,875.32.
1. Operating Account Warrant Register No. 55
4. Public Works
Public Works Department Monthly Building Report
Recommendation:
Receive and file the September 2020 Building Report.
1. Public Works Department September 2020 Building Report
5. City Clerk
April 13, 2021 General Municipal Election
Recommendation:
A. Adopt Resolution No. 2020-39 calling and giving notice of an all-mail ballot General
Municipal Election to be held on Tuesday, April 13, 2021 for the election of a City
Council Member as required by the provisions of the Charter of the City of Vernon; and
B. Adopt Resolution No. 2020-40 requesting the Board of Supervisors of the County
of Los Angeles to render specified services to the City relating the conduct of the
General Municipal Election to be held on Tuesday, April 13, 2021.
1. Resolution No. 2020-39
2. Resolution No. 2020-40
3. Resolution 2014-64 adopted October 21, 2014
Regular City Council Meeting Agenda
November 03, 2020
Page 3 of 6
6. Police Department
Loan Vehicle Use Agreement with National Insurance Crime Bureau
Recommendation:
Approve and authorize the Police Chief to execute a vehicle use agreement with the
National Insurance Crime Bureau (NICB) for continued participation in the loan vehicle
program.
1. 2021 NICB Nissan Altima Vehicle Use Agreement
7. Police Department
Drug Enforcement Administration Agreement
Recommendation:
Approve and authorize the Police Chief to execute a Surge Program - Funded State
and Local Task Force Agreement with the Drug Enforcement Administration (DEA),
Los Angeles Field Division, for continued participation in the Southwest Border
Initiative (SWBI) taskforce with an effective date of October 1, 2020.
1. Surge Program - Funded State and Local Task Force Agreement with DEA
8. Public Utilities
Supplemental Agreement with the Union Pacific Railroad
Recommendation:
Adopt Resolution No. 2020-41 approving and authorizing the execution of a
Supplemental Agreement by and between the City of Vernon and Union Pacific
Railroad Company to approve the City's intent to rebuild the existing overhead wireline
crossing to 16.340kV.
1. Resolution No. 2020-41
9. Finance/Treasury
Addendum to Professional Auditing Services Agreement with White Nelson Diehl
Evans, LLP
Recommendation:
Approve and authorize the City Administrator to execute an addendum, in substantially
the same form as submitted, to the current agreement with White Nelson Diehl Evans,
LLP for professional audit services to reflect a name change for the firm.
1. Addendum to WNDE Contract for Professional Services
2. Notice of WNDE Name Change
10. Finance/Treasury
Services Agreement with BLX Group LLC for Financial Advisory Services
Recommendation:
Approve and authorize the City Administrator to execute a services agreement with
BLX Group LLC for Financial Advisory Services, in substantially the same form as
submitted, in an amount not to exceed $600,000, for a three -year agreement effective
November 3, 2020 for financial advisory services.
1. Financial Advisory Services Agreement with BLX Group LLC
Regular City Council Meeting Agenda
November 03, 2020
Page 4 of 6
NEW BUSINESS
11. Health and Environmental Control Department
Greater Los Angeles County Vector Control District Annexation No. 2019-07
Recommendation:
Adopt a Joint Resolution of the Board of Supervisors, as the Governing Body of the
County of Los Angeles, the Consolidated Fire Protection District of Los Angeles
County, the Los Angeles County Flood Control District, and the Belvedere Garbage
Disposal District, and the Board of Directors of the Greater Los Angeles County Vector
Control District, the Los Angeles County Sanitation District No. 1, the Los Angeles
County Sanitation District No. 2, the Los Angeles County Sanitation District No. 23,
and the Water Replenishment District of Southern California, and the City Council of
Vernon, approving and accepting the negotiated exchange of property tax revenue
resulting from Annexation No. 2019-07 to the Greater Los Angeles County Vector
Control District.
1. Joint Tax Resolution
2. Resolution No. 2016-68 adopted December 15, 2016
3. LAFCO Application
ORAL REPORTS
City Administrator Reports on Activities and other Announcements.
City Council Reports on Activities (including AB1234), Announcements, or Directives to Staff.
CLOSED SESSION
12. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(d)(1)
A. Bicent (California) Malburg LLC et al. v. City of Vernon et al.,
Los Angeles Superior Court Case No. 19STCV08859 and JAMS Reference No.
1100107175
B. City of Vernon v. Bicent (California) Malburg LLC
Los Angeles Superior Court Case No. 19STCP02411 and JAMS Reference No.
1220062657
CLOSED SESSION REPORT
Regular City Council Meeting Agenda
November 03, 2020
Page 5 of 6
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 o n the City’s website, not less than 72
hours prior to the meeting set forth on this agenda.
Dated this 29th day of October, 2020.
By: __________________________________
Sandra Dolson, Administrative Secretary
Regular City Council Meeting Agenda
November 03, 2020
Page 6 of 6
Guide to City Council Proceedings
Meetings of the City Council are held the first and third Tuesday of each month at 9:00 a.m. and
are conducted in accordance with Rosenberg's Rules of Order (Vernon Municipal Code Section
2.1-1).
Copies of all agenda items and back-up materials are available for review in the City Clerk
Department, Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California, and are available for
public inspection during regular business hours, Monday through Thursday, 7:00 a.m. to 5:30 p.m.
Agenda reports may be reviewed o n the City's website at www.cityofvernon.org or copies may be
purchased for $0.10 per page.
Disability-related services are available to enable persons with a disability to participate in this
meeting, consistent with the Americans with Disabilities Act (ADA). In compliance with ADA, if you
need special assistance, please contact the City Clerk department at CityClerk@ci.vernon.ca.us
or (323) 583-8811 at least 48 hours prior to the meeting to assure arrangements can be made.
The Public Comment portion of the agenda is for members of the public to present items, which
are not listed on the agenda but are within the subject matter jurisdiction of the City Council. The
City Council cannot take action on any item that is not on the agenda but matte rs raised under
Public Comment may be referred to staff or scheduled on a future agenda. Comments are limited
to three minutes per speaker unless a different time limit is announced. Speaker slips are available
at the entrance to the Council Chamber.
Public Hearings are legally noticed hearings. For hearings involving zoning matters, the applicant
and appellant will be given 15 minutes to present their position to the City Council. Time may be
set aside for rebuttal. All other testimony shall follow the rules as set for under Public Comment. If
you challenge any City action in court, you may be limited to raising only those issues you or
someone else raised during the public hearing, or in written correspondence delivered to the City
Clerk at or prior to the public hearing.
Consent Calendar items may be approved by a single motion. If a Council Member or the public
wishes to discuss an item, it may be removed from the calendar for individual consideration.
Council Members may indicate a negative or abstaining vote on any individual item by so declaring
prior to the vote on the motion to adopt the Consent Calendar. Items excluded from the Consent
Calendar will be taken up following action on the Consent Calendar. Public speakers shall follow
the guidelines as set forth under Public Comment.
New Business items are matters appearing before the Council for the first time for formal action.
Those wishing to address the Council on New Business items shall follow the guidelines for Public
Comment.
Closed Session allows the Council to discuss specific matters pursuant to the Brown Act,
Government Code Section 54956.9. Based on the advice of the City Attorney, discussion of these
matters in open session would prejudice the position of the City. Following Closed S ession, the
City Attorney will provide an oral report on any reportable matters discussed and actions taken. At
the conclusion of Closed Session, the Council may continue any item listed on the Closed Session
agenda to the Open Session agenda for discussion or to take formal action as it deems
appropriate.
City Council Agenda Item Report
Agenda Item No. COV-398-2020
Submitted by: Scott Williams
Submitting Department: Finance/Treasury
Meeting Date: November 3, 2020
SUBJECT
Presentation on City-wide Enterprise Resource Planning System
Recommendation:
No action required by City Council. This is a presentation only.
Background:
The Finance Director will present an overview of a citywide Enterprise Resource Planning (ERP) system
and introduce the concept and design of an ERP system as a fully integrated solution for various City
operations. The presentation will review the benefits and need for utilizing one integrated solution for
various functions including finance, budget, human resources, land use, permitting, licensing, inspections,
customer service and billing, inventory and asset management, as well as vendor and customer portals
for bill pay and account access. The introduction and overview will facilitate an opportunity for discussion
and questions regarding upcoming recommendations for major technology infrastructure improvements
that will span every department within the City.
Fiscal Impact:
There is no fiscal impact associated with this item.
Attachments:
City Council Agenda Item Report
Agenda Item No. COV-356-2020
Submitted by: Sandra Dolson
Submitting Department: City Council
Meeting Date: November 3, 2020
SUBJECT
Approval of Minutes
Recommendation:
Approve the October 13, 2020 Special and the October 20, 2020 Regular City Council meeting minutes.
Background:
Staff has prepared and hereby submits the minutes for approval.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. 20201013 Special City Council Meeting Minutes
2. 20201020 Regular City Council Meeting Minutes
MINUTES
VERNON CITY COUNCIL
SPECIAL MEETING
TUESDAY, OCTOBER 13, 2020
COUNCIL CHAMBER, 4305 SANTA FE AVENUE
CALL TO ORDER
Mayor Lopez called the meeting to order at 9:00 a.m.
FLAG SALUTE
Mayor Lopez led the flag salute.
ROLL CALL
PRESENT:Leticia Lopez, Mayor (via remote access)
Melissa Ybarra, Mayor Pro Tem
William Davis, Council Member
Carol Menke, Council Member
Diana Gonzales, Council Member
STAFF PRESENT:
Carlos Fandino, City Administrator
Arnold Alvarez-Glasman, Interim City Attorney
Scott Williams, Finance Director
Jim Enriquez, Interim Fire Chief
Michael Earl, Human Resources Director
Anthony Miranda, Police Chief
Sandra Dolson, Administrative Secretary
APPROVAL OF THE AGENDA
MOTION
Mayor Pro Tem Ybarra moved and Council Member Davis seconded a motion to approve
the agenda. The question was called and the motion carried unanimously.
PUBLIC COMMENT
None.
Special City Council Meeting Minutes Page 2 of 3
October 13, 2020
NEW BUSINESS
1.Amendment No. 2 to the Memorandum of Understanding with the Vernon
Professional Firefighters' Association, Local 2312
Recommendation: Adopt Resolution No. 2020-34 approving and authorizing the execution
of Amendment No. 2 to the Memorandum of Understanding by and between the City of
Vernon and the Vernon Professional Firefighters' Association, Local 2312.
Human Resources Director Earl presented the staff report.
In response to Council questions, Human Resources Director Earl explained review of the
MOU by CalPERS and clarification of language from Service Adjustment Increase to
Longevity.
Mayor Pro Tem Ybarra suggested adding a footnote to the MOU based on CalPERS audit
to ensure no additional money is owed to employees.
MOTION
Mayor Pro Tem Ybarra moved and Council Member Gonzales seconded a motion to:
Adopt Resolution No. 2020-34 approving and authorizing the execution of Amendment
No. 2 to the Memorandum of Understanding by and between the City of Vernon and the
Vernon Professional Firefighters' Association, Local 2312 and directed staff to add a
footnote to the Memorandum of Understanding to clarify the service adjustment increase
as longevity pay per CalPERS. The question was called and the motion carried
unanimously.
ORAL REPORTS
City Administrator Reports on Activities and other Announcements.
City Administrator Fandino announced the upcoming Special Vernon Housing
Commission meeting on October 14, 2020, and free flu vaccination on October 16 and17,
2020.
City Council Reports on Activities (including AB1234), Announcements, or Directives to
Staff.
None.
Special City Council Meeting Minutes Page 3 of 3
October 13, 2020
CLOSED SESSION
2.CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation
Government Code Section 54956.9(d)(2)
Number of Potential Cases: 1
Facts and Circumstances: Interim City Attorney to provide oral statement prior to closed
session pursuant to Government Code section 54956.9, subdivision (e)(2).
Mayor Pro Tem Ybarra recused herself from discussion of Closed Session Item No. 2 due
to personal reasons.
Interim City Attorney Alvarez-Glasman announced that Council was discussing
correspondence received on October 2, 2020 from Westford Law Group.
RECESS
Mayor Lopez recessed the meeting to Closed Session at 9:10 a.m.
RECONVENE
At 9:24 a.m., Mayor Lopez adjourned Closed Session and reconvened the regular meeting
with all Council Members present.
CLOSED SESSION REPORT
Interim City Attorney Alvarez-Glasman reported that the Council, with Mayor Pro Tem
Ybarra absent, met in Closed Session, discussed the item on the agenda, and took no
reportable action.
ADJOURNMENT
Mayor Lopez adjourned the meeting at 9:25 a.m.
______________________________
LETICIA LOPEZ, Mayor
ATTEST:
_____________________________________
LISA POPE, City Clerk
(seal)
MINUTES
VERNON CITY COUNCIL
REGULAR MEETING
TUESDAY, OCTOBER 20, 2020
COUNCIL CHAMBER, 4305 SANTA FE AVENUE
CALL TO ORDER
Mayor Lopez called the meeting to order at 9:01 a.m.
FLAG SALUTE
Mayor Lopez led the Flag Salute.
ROLL CALL
PRESENT:Leticia Lopez, Mayor
Melissa Ybarra, Mayor Pro Tem
William Davis, Council Member
Carol Menke, Council Member
Diana Gonzales, Council Member
STAFF PRESENT:
Carlos Fandino, City Administrator
Arnold Alvarez-Glasman, Interim City Attorney
Lisa Pope, City Clerk
Scott Williams, Finance Director
Jim Enriquez, Interim Fire Chief
Abraham Alemu, Public Utilities General Manager
Fredrick Agyin, Health and Environmental Control Director
Michael Earl, Human Resources Director
Anthony Miranda, Police Chief
Dan Wall, Public Works Director
APPROVAL OF THE AGENDA
MOTION
Council Member Gonzales moved and Council Member Davis seconded a motion to
approve the agenda. The motion carried unanimously.
PUBLIC COMMENT
Rosemary Vivero, Los Angeles County Fire Department Community Service Liaison,
introduced herself.
Regular City Council Meeting Minutes Page 2 of 6
October 20, 2020
PRESENTATIONS
1.Employee Service Pin Awards
Recommendation: No action required by City Council. This is a presentation only.
Human Resources Director Earl acknowledged Raymond G. De Nijs,
Firefighter/Paramedic; Irene M. Castillo, Senior Account Clerk; Donald R. Quiroz, Electric
Operations Supervisor, as recipients of the Employee Service Pin Awards.
2.Recognition of Jim Enriquez, Interim Fire Chief of the City of Vernon
Recommendation: Acknowledge and present a proclamation to Jim Enriquez, Interim Fire
Chief, in recognition of his leadership and service to the City of Vernon.
City Clerk Pope read the proclamation and Mayor Lopez and Mayor Pro Tem Ybarra
presented the proclamation and City flag to Jim Enriquez, Interim Fire Chief.
PUBLIC HEARINGS
3.Proposed Modification to Reduce Fiber Optic Rates
Recommendation: Adopt Resolution No. 2020-35 adopting revised fiber optic rate
schedules.
Public Utilities General Manager Alemu presented the staff report.
In response to Council questions, General Manager Alemu explained dark fiber; the reason
for reducing residential rates; the plan to grow the business; and future consideration of
low-income rates.
Mayor Lopez opened the public hearing. There being no speakers, Mayor Lopez closed the
public hearing.
MOTION
Council Member Menke moved and Council Member Davis seconded a motion to adopt
Resolution No. 2020-35 adopting revised fiber optic rate schedules. The motion carried
unanimously.
4.Transmission Revenue Requirement and Transmission Revenue Balancing Account
Adjustment for 2021
Recommendation: A. Adopt Resolution No. 2020-36 adopting a revised Transmission
Revenue Requirement for 2021 in accordance with Vernon's Transmission Owner Tariff
and providing for Tariff Sheet changes to implement the adjustment; and B. Adopt
Resolution No. 2020-37 establishing a Transmission Revenue Balancing Account
Adjustment for 2021 in accordance with Vernon’s Transmission Owner Tariff and
providing for Tariff Sheet changes to implement the adjustment.
Public Utilities General Manager Alemu presented the staff report.
Regular City Council Meeting Minutes Page 3 of 6
October 20, 2020
In response to Council questions, General Manager Alemu explained the ISO as the power
exchange.
Mayor Lopez opened the public hearing. There being no speakers, Mayor Lopez closed the
public hearing.
MOTION
Council Member Menke moved and Mayor Lopez seconded a motion to: A. Adopt
Resolution No. 2020-36 adopting a revised Transmission Revenue Requirement for 2021
in accordance with Vernon's Transmission Owner Tariff and providing for Tariff Sheet
changes to implement the adjustment; and B. Adopt Resolution No. 2020-37 establishing
a Transmission Revenue Balancing Account Adjustment for 2021 in accordance with
Vernon’s Transmission Owner Tariff and providing for Tariff Sheet changes to implement
the adjustment. The question was called and the motion carried unanimously.
CONSENT CALENDAR
Council Member Gonzales pulled Item No. 7.
MOTION
Mayor Pro Tem Ybarra moved and Council Member Davis seconded a motion to approve
the Consent Calendar, with the exception of Item No. 7. The question was called and the
motion carried unanimously.
The Consent Calendar consisted of the following items:
5.Approval of Minutes
Recommendation: Approve the October 6, 2020 Regular City Council meeting minutes.
6.Claims Against the City
Recommendation: Receive and file the claims submitted by: 1) Sasha Farahi Esq., on
behalf of Manuel Gamez Vazquez, in the unlimited amount of $5,000,000; and 2) W. S.
Dodge Oil Company in the amount of $6,322.95.
8.City Payroll Warrant Register
Recommendation: Approve City Payroll Warrant Register No. 772, for the period of
September 1 through September 30, 2020, which totals $3,080,266.42 and consists of
ratification of direct deposits, checks and taxes totaling $2,017,651.30 and ratification of
checks and electronic fund transfers (EFT) for payroll related disbursements totaling
$1,062,615.12 paid through operating bank account.
9.Federal Funds for Street Improvements Account Warrant Register
Recommendation: Approve Federal Funds for Street Improvements Account Warrant
Register No. 34, for the period of September 20 through October 3, 2020, consisting of
ratification of electronic payments totaling $20,221.48.
10.Police Department Activity Report
Recommendation: Receive and file the August 2020 Report.
11.Services Agreement with Fujitsu Network Communications, Inc. and Blanket
Purchase Order
Regular City Council Meeting Minutes Page 4 of 6
October 20, 2020
Recommendation: A. Find that a direct award of the proposed Services Agreement is in
the best interest of the City and, therefore, exempt from the competitive selection process
per Sections 2.17.12(B)(2) and 2.17.12(B)(3), of the Vernon Municipal Code; B. Approve
and authorize the City Administrator to execute a Services Agreement with Fujitsu
Network Communications, Inc. for the Maintenance of Equipment and Services Related to
the Fiber Optic System Internet Access Operations in an amount not-to-exceed $245,568,
for a three-year term, effective November 7, 2020; andC. Approve the issuance of a blanket
Purchase Order in an amount not-to-exceed $40,000 for potential ancillary purchases with
Fujitsu Network Communications during the remainder of Fiscal Year 2020/2021.
12.Purchase Order to Motorola Solutions, Inc. for All-Band Portable Radios
Recommendation: Approve and authorize the issuance of a purchase order to Motorola
Solutions, Inc., (Motorola) for a total amount not to exceed $24,871.97 for the purchase of
three (3) Motorola APX 8000 All-Band Portable Radios to restore inventory.
13.Public Works Street Operations Division Vehicles
Recommendation:Approve the purchase of a 2021 Ford Super Duty F-550 with Knapheide
dump body and equipment, a 2021 Ford Super Duty F-550 with Knapheide KUV body and
equipment, and two (2) 2021 Ford Super Duty F-250s with flip tops and equipment through
Sourcewell, for a total cost of $228,169.84.
The following item was pulled from the Consent Calendar for individual consideration:
7.Operating Account Warrant Register
Recommendation: Approve Operating Account Warrant Register No. 54, for the period of
September 20 through October 3, 2020, which totals $4,975,670.99 and consists of
ratification of electronic payments totaling $4,754,417.25 and ratification of the issuance
of early checks totaling $221,253.74.
Council Member Gonzales asked about the payment to Morgan Lewis. Interim City
Attorney Alvarez-Glasman explained that it was the balance of the agreement between the
City and Morgan Lewis regarding Bicent.
MOTION
Council Member Menke moved and Council Member Gonzales seconded a motion to
approve Operating Account Warrant Register No. 54, for the period of September 20
through October 3, 2020, which totals $4,975,670.99 and consists of ratification of
electronic payments totaling $4,754,417.25 and ratification of the issuance of early checks
totaling $221,253.74. The question was called and the motion carried unanimously.
NEW BUSINESS
14.Resource Adequacy Plan for 2021
Recommendation: A. Adopt Resolution No. 2020-38 approving and adopting the Vernon
Public Utilities Department Resource Adequacy Plan for 2021, which includes the
coincident peak Demand Forecast, the Planning Reserve Margin, the Qualifying Capacity
Criteria and the Qualifying Capacity from such resources, City’s Resource Adequacy and
Supply Data and approving the resources used to satisfy the California Independent System
Operator’s (CAISO) tariff requirements; and B. Authorize staff to submit the City of
Regular City Council Meeting Minutes Page 5 of 6
October 20, 2020
Vernon Public Utilities Department’s Resource Adequacy Plan for 2021 and the Monthly
Resource Adequacy and Supply data to the CAISO.
Public Utilities General Manager Alemu presented the staff report
MOTION
Council Member Menke moved and Mayor Lopez seconded a motion to: A. Adopt
Resolution No. 2020-38 approving and adopting the Vernon Public Utilities Department
Resource Adequacy Plan for 2021, which includes the coincident peak Demand Forecast,
the PlanningReserve Margin, the Qualifying Capacity Criteria and the Qualifying Capacity
from such resources, City’s Resource Adequacy and Supply Data and approving the
resources used to satisfy the California Independent System Operator’s (CAISO) tariff
requirements; and B. Authorize staff to submit the City of Vernon Public Utilities
Department’s Resource Adequacy Plan for 2021 and the Monthly Resource Adequacy and
Supply data to the CAISO. The question was called and the motion carried unanimously.
15.Memorandum of Understanding Between County of Los Angeles and City of Vernon
for Lead Based Paint Hazard Mitigation Program Management Services - Vernon
Lead Free Homes L.A. Program
Recommendation: Approve the Memorandum of Understanding (MOU) between County
of Los Angeles and City of Vernon in substantially the same form as submitted, for lead
based paint hazard mitigation services.
Health and Environmental Control Director Agyin presented the staff report.
In response to Council questions, Health and Environmental Control Director Agyin
indicated the program would determine whether Vernon homes contained lead-based paint.
MOTION
Mayor Pro Tem Ybarra moved and Mayor Lopez seconded a motion to approve the
Memorandum of Understanding (MOU) between County of Los Angeles and City of
Vernon in substantially the same form as submitted, for lead based paint hazard mitigation
services. The question was called and the motion carried unanimously.
ORAL REPORTS
City Administrator Reports on Activities and other Announcements.
City Administrator Fandino provided an update on recent Police and Vernon Public
Utilities activities and the Exide Bankruptcy Court decision. He announced the Vernon
Fire/LA County Fire transition on October 21, 2020, and reminded residents to participate
in the City’s Halloween festivities.
Regular City Council Meeting Minutes Page 6 of 6
October 20, 2020
City Council Reports on Activities (including AB1234), Announcements, or Directives to
Staff.
Mayor Lopez reported on the League of California Cities Annual Conference and indicated
each Council Member was registered to attend at a rate of $50.
RECESS
Mayor Lopez recessed the meeting to Closed Session at 9:53 a.m.
CLOSED SESSION
16.PUBLIC EMPLOYEE EVALUATION
Government Code Section 54957
Position: City Administrator
17.CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation Government Code Section 54956.9(d)(2)
Number of Potential Cases: 1
Interim City Attorney to provide an oral statement regarding the facts and circumstances
leading to exposure to litigation prior to the closed session
Pursuant to Government Code Section 54956.9(e)(1), no oral statement by the City
Attorney was made or required to be made prior to recessing into closed session.
RECONVENE
At 1:27 p.m., Mayor Lopez adjourned Closed Session and reconvened the regular meeting.
CLOSED SESSION REPORT
Interim City Attorney Alvarez-Glasman reported that the Council, with all five members
present, met in Closed Session, discussed the items on the agenda, and took no reportable
action.
ADJOURNMENT
Mayor Lopez adjourned the meeting at 1:27 p.m.
______________________________
LETICIA LOPEZ, Mayor
ATTEST:
_____________________________________
LISA POPE, City Clerk
(seal)
City Council Agenda Item Report
Agenda Item No. COV-392-2020
Submitted by: John Lau
Submitting Department: Finance/Treasury
Meeting Date: November 3, 2020
SUBJECT
Operating Account Warrant Register
Recommendation:
Approve Operating Account Warrant Register No. 55, for the period of October 4 through October 17,
2020, which totals $4,527,001.04 and consists of ratification of electronic payments totaling
$4,442,777.83, ratification of the issuance of early checks totaling $84,223.21 and voided Check No.
606307 totaling $2,875.32.
Background:
Section 2.13 of the Vernon Municipal Code indicates the City Treasurer, or an authorized designee, shall
prepare warrants covering claims or demands against the City which are to be presented to City Council
for its audit and approval. Pursuant to the aforementioned code section, the City Treasurer has prepared
Operating Account Warrant Register No. 55 covering claims and demands presented during the period
of October 4 through October 17, 2020, drawn, or to be drawn, from East West Bank for City Council
approval.
Fiscal Impact:
The fiscal impact of approving Operating Account Warrant Register No. 55, totals $4,527,001.04. The
Finance Department has determined that sufficient funds to pay such claims/demands, are available in
the respective accounts referenced on Operating Account Warrant Register No. 55.
Attachments:
1. Operating Account Warrant Register No. 55
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020I hereby cerƟfy that claims and/or demands included in above listed warrantregister have been audited for accuracy and availability of funds for payments andthat said claims and/or demands are accurate and that the funds are available forpayments thereof.____________________________________________________________ScoƩ WilliamsDirector of Finance / City TreasurerDate: _______________________________________________________This is to cerƟfy that the claims or demands covered by the above listed warrantshave been audited by the City Council of the City of Vernon and that all of saidwarrants are approved for payments except Warrant Numbers:Void Checks: 606307________________________________________________________________________________________________________________________Printed: 10/20/2020 12:27:53PM10/20/2020
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE055.9200.500150 $ ‐1,261.30 RecalculaƟon Charges 12/17 202009293146921137CALIFORNIA ISO002412 ‐ 055.9200.500170 $ ‐1.37 RecalculaƟon Charges 12/17 202009293146921137055.9200.500150 $ 282,200.93 IniƟal Charges 09/20 202009293146921137055.9200.500210 $ 16,512.78 IniƟal Charges 09/20 202009293146921137055.9200.500151 $ ‐3.21 IniƟal Charges 09/20 202009293146921137055.9200.500170 $ ‐7,231.64 IniƟal Charges 09/20 202009293146921137055.9200.500190 $ ‐11,119.68 IniƟal Charges 09/20 202009293146921137055.9200.500150 $ 156,579.02 RecalculaƟon Charges 09/20 202009293146921137055.9200.500190 $ 4,243.10 RecalculaƟon Charges 09/20 202009293146921137055.9200.500210 $ 725.60 RecalculaƟon Charges 09/20 202009293146921137055.9200.500151 $ ‐9.00 RecalculaƟon Charges 09/20 202009293146921137055.9200.500170 $ ‐10,167.07 RecalculaƟon Charges 09/20 202009293146921137$ 430,468.1610/05/2020 10326055.9000.592010 $ 2,532.00 AdministraƟon & Audit ConfirmaƟon Fees 2522322848BANK OF NEW YORK MELLON002533 ‐ $ 2,532.0010/06/2020 10327Printed: 10/20/2020 12:27:53PMPage 1 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE020.1084.900000 $ 56,701.89 Well No. 17 RehabilitaƟon Project~ 100120BEST DRILLING AND PUMP, INC006249 ‐ $ 56,701.8910/06/2020 10328057.1057.500173 $ 4,139.00 Internet Access Services BBUS00031308BROADBAND LLC000267 ‐ 057.1057.500173 $ 4,139.00 Internet Access Services BBUS00031419$ 8,278.0010/06/2020 10329011.9019.590110 $ 3,528.00 CCA & VCB for Windows 15424ECS IMAGING, INC003073 ‐ $ 3,528.0010/06/2020 10330011.1048.596200 $ 100.00 AƩendance SƟpend~ 091020STEVEN FROBERG005155 ‐ $ 100.0010/06/2020 10331055.9000.595200 $ 9,733.50 Natural Gas Compliance Services 110961G2 INTEGRATED SOLUTIONS, LLC006899 ‐ 055.9000.595200 $ 25,431.00 Natural Gas Compliance Services 111002$ 35,164.5010/06/2020 10332011.1048.596200 $ 100.00 AƩendance SƟpend~ 091020FRANCISCO M GAVINA, JR005875 ‐ $ 100.0010/06/2020 10333011.1060.595200 $ 3,469.55 Health Officer Services V007LAURENE MASCOLA006869 ‐ 011.1060.595200 $ 4,650.00 Health Officer Services V008$ 8,119.5510/06/2020 10334Printed: 10/20/2020 12:27:53PMPage 2 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE020.1084.500110 $ 206,043.16 Groundwater ProducƟon & Assessment 091720WATER REPLENISHMENT DISTRICT001658 ‐ $ 206,043.1610/06/2020 10335011.1049.590000 $ 516.00 Air CondiƟoner Maintenance 626710WESTERN ALLIED CORPORATION006120 ‐ 011.1049.590000 $ 614.24 Air CondiƟoner Maintenance 626751$ 1,130.2410/06/2020 10336020.1084.500130 $ 105,154.65 Potable Water VERAUG20CENTRAL BASIN MWD001401 ‐ $ 105,154.6510/06/2020 10337020.1084.900000 $ 7,004.40 High Resistance Grounding System~ 6402003250 011.0014451BENDER ELECTRONICS, INC006871 ‐ 020.1084.900000 $ 665.41 Sales Tax 9.5% 6402003250020.1084.900000 $ 220.50 Freight 6402003764 011.0014451$ 7,890.3110/06/2020 10338011.1049.590000 $ 3,582.00 Landscape Maintenance 07/20 89956MARIPOSA LANDSCAPES, INC006422 ‐ 020.1084.590000 $ 2,820.00 Landscape Maintenance 08/20~ 90179011.1049.590000 $ 3,582.00 Landscape Maintenance 08/20 90304$ 9,984.0010/08/2020 10339055.9100.900000 $ 525,394.42 Electric Service Maintenance 200257APETRELLI ELECTRIC, INC003049 ‐ 055.8300.590000 $ 526,405.89 Electric Service Maintenance 200257A$ 1,051,800.3110/09/2020 10340Printed: 10/20/2020 12:27:53PMPage 3 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE055.9200.500150 $ ‐65.23 RecalculaƟon Charges 12/19 202010063246980312CALIFORNIA ISO002412 ‐ 055.9200.500170 $ ‐23,729.93 RecalculaƟon Charges 12/19 202010063246980312055.9200.500190 $ ‐83.00 RecalculaƟon Charges 12/19 202010063246980312055.9200.500180 $ 12.30 RecalculaƟon Charges 12/19 202010063246980312055.9200.500150 $ 166,325.23 IniƟal Charges 10/20 202010063246980312055.9200.500151 $ 0.07 IniƟal Charges 10/20 202010063246980312055.9200.500210 $ 8,983.97 IniƟal Charges 10/20 202010063246980312055.9200.500170 $ ‐11,089.89 IniƟal Charges 10/20 202010063246980312055.9200.500190 $ ‐1,299.47 IniƟal Charges 10/20 202010063246980312055.9200.500150 $ 58,670.27 RecalculaƟon Charges 09/20 202010063246980312055.9200.500190 $ 706.68 RecalculaƟon Charges 09/20 202010063246980312055.9200.500210 $ 437.63 RecalculaƟon Charges 09/20 202010063246980312055.9200.500151 $ ‐0.01 RecalculaƟon Charges 09/20 202010063246980312055.9200.500170 $ ‐5,977.65 RecalculaƟon Charges 09/20 202010063246980312Printed: 10/20/2020 12:27:53PMPage 4 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE055.9200.500170 $ 1,040.18 RecalculaƟon Charges 03/19 202010063246980312CALIFORNIA ISO002412 ‐ 055.9200.500150 $ 10,797.32 RecalculaƟon Charges 03/19 202010063246980312055.9200.500150 $ 169,869.40 IniƟal Charges 09/20 202010063246980312055.9200.500170 $ 1,193,660.55 IniƟal Charges 09/20 202010063246980312055.9200.500180 $ 22,796.21 IniƟal Charges 09/20 202010063246980312055.9200.500190 $ 1,687.07 IniƟal Charges 09/20 202010063246980312055.9200.500210 $ 8,544.69 IniƟal Charges 09/20 202010063246980312055.9200.500240 $ 7,478.50 IniƟal Charges 09/20 202010063246980312055.9200.500151 $ ‐1.37 IniƟal Charges 09/20 202010063246980312055.9200.500170 $ ‐95.51 IniƟal Charges 09/20 202010063246980312$ 1,608,668.0110/09/2020 10341011.1026.502031 $ 14,177.82 Medical ReƟrees~ 129151918ANTHEM BLUE CROSS005182 ‐ $ 14,177.8210/15/2020 10342011.1026.594200 $ 6,105.33 TPA Fees 10/20 IVC22721ATHENS INSURANCE SERVICES, INC004303 ‐ $ 6,105.3310/15/2020 10345Printed: 10/20/2020 12:27:53PMPage 5 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE011.1004.595200 $ 3,750.00 UUT Fixed Fee~ INV06‐009863AVENU MUNISERVICES, LLC006722 ‐ $ 3,750.0010/15/2020 10346055.9200.500162 $ 102,266.51 Biomethane Gas 02/20 RC3771ELEMENT MARKETS RENEWABLE NATU004665 ‐ 055.9200.500162 $ 148,649.00 Biomethane Gas 02/20 RC3772055.9200.500162 $ 177,726.46 Biomethane Gas 03/20 RC3773055.9200.500162 $ 258,770.28 Biomethane Gas 03/20 RC3774055.9200.500162 $ 75,173.70 Biomethane Gas 04/20 RC3775055.9200.500162 $ 109,407.63 Biomethane Gas 04/20 RC3776$ 871,993.5810/15/2020 10347011.1024.593200 $ 976.00 Re: Torres ArbitraƟon 877262RUTAN & TUCKER, LLP005433 ‐ $ 976.0010/15/2020 10348011.1043.596550 $ 2,999.00 MSDSonline HQ Account Renewal 220816VELOCITYEHS005094 ‐ $ 2,999.0010/15/2020 10349056.5600.520000 $ 206.91 Paving Materials~ 72708179 056.0000611VULCAN MATERIALS CO001695 ‐ 056.5600.520000 $ 838.78 Paving Materials~ 72720269 056.0000611$ 1,045.6910/15/2020 10350Printed: 10/20/2020 12:27:53PMPage 6 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE011.1041.520000 $ 31.00 Period: 07/20 933312300(2)UPS001617 ‐ 011.1033.520000 $ 32.05 Period: 08/20 933312330(2)011.1041.520000 $ 31.00 Period: 08/20 933312330(2)011.1033.520000 $ 21.32 Period: 09/20 933312380(2)011.1041.520000 $ 47.95 Period: 09/20 933312380(2)$ 163.3210/13/2020 10351011.1043.520000 $ 1,349.12 Small Tools & Plumbing Hardware~ 083120_MULTIPLE 011.0014456HOME DEPOT CREDIT SERVICES001552 ‐ 011.1048.520000 $ 1,743.79 Small Tools & Plumbing Hardware~ 083120_MULTIPLE 011.0014456011.1049.520000 $ 477.18 Small Tools & Plumbing Hardware~ 083120_MULTIPLE 011.0014456$ 3,570.0910/08/2020 10352056.5600.520000 $ 296.12 Building Supplies~ 081920_MULTIPLE 056.0000617HOME DEPOT CREDIT SERVICES001552 ‐ 056.5600.590000 $ 88.08 Building Supplies~ 081920_MULTIPLE 056.0000617020.1084.520000 $ 324.04 Building Materials & Hardware~ 082020_MULTIPLE 011.0014441055.8000.590000 $ 81.44 Small Tools, Plumbing & Hardware 082520_MULTIPLE 055.0002809055.8400.590000 $ 1,339.92 Small Tools, Plumbing & Hardware 082520_MULTIPLE 055.0002809055.9100.520000 $ 83.17 Hardware Supplies~ 360624 055.0002812$ 2,212.7710/08/2020 10353011.1033.520000 $ 44.10 Small Tools, Plumbing & Building 092620_MULTIPLE 011.0014457HOME DEPOT CREDIT SERVICES001552 ‐ $ 44.1010/16/2020 10354Printed: 10/20/2020 12:27:53PMPage 7 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020ELECTRONICVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTPAYMENTNUMBERPAYMENTDATE011.1043.560000 $ 77.35 Period: 08/14/20 ‐ 09/15/20 091620SO CAL EDISON000059 ‐ $ 77.3510/16/2020 10355TOTAL ELECTRONIC$ 4,442,777.83Printed: 10/20/2020 12:27:53PMPage 8 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE055.8100.596200 $ 279.14 Portable Restrooms 646983A THRONE CO, INC000005 ‐ 020.1084.520000 $ 84.95 Portable Restrooms 648759055.8100.596200 $ 279.14 Portable Restrooms 651513020.1084.520000 $ 84.95 Portable Restrooms 653341055.8100.596200 $ 279.14 Portable Restrooms 656155020.1084.520000 $ 84.95 Portable Restrooms 657993$ 1,092.2710/06/2020 606289011.9019.560010 $ 21.53 Period: 07/06/20 ‐ 08/05/20 15137161AT&T001948 ‐ 011.9019.560010 $ 2,372.11 Period: 07/10/20 ‐ 08/09/20 15156214011.9019.560010 $ 41.86 Period: 07/10/20 ‐ 08/09/20 15156215055.9000.560010 $ 235.51 Period: 07/10/20 ‐ 08/09/20 15156216011.9019.560010 $ 2,304.52 Period: 07/10/20 ‐ 08/09/20 15156217011.9019.560010 $ 1,034.31 Period: 07/10/20 ‐ 08/09/20 15156218056.5600.560010 $ 622.35 Period: 07/10/20 ‐ 08/09/20 15156219056.5600.560010 $ 21.63 Period: 07/10/20 ‐ 08/09/20 15156318011.9019.560010 $ 781.02 Period: 07/10/20 ‐ 08/09/20 15156650011.9019.560010 $ 20.17 Period: 07/15/20 ‐ 08/14/20 15192766$ 7,455.0110/06/2020 606290011.1031.596500 $ 215.90 Sherman Block SLI Class 446‐8 090120(2)JERRY CHAVEZ JR001139 ‐ $ 215.9010/06/2020 606291Printed: 10/20/2020 12:27:53PMPage 9 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1046.520000 $ 2,162.64 Goodyear 16 Ply Tires~ 1GS162469 011.0014523COMMERCIAL TIRE COMPANY003856 ‐ 011.1046.590000 $ 7.00 Recycle Fee 1GS162469 011.0014523011.1046.590000 $ 100.00 Labor to Mount 4 Tires 1GS162469 011.0014523011.1046.520000 $ 205.45 Sales Tax 9.5% 1GS162469$ 2,475.0910/06/2020 606292011.1048.596200 $ 100.00 AƩendance SƟpend~ 091020RONIT DAHAN‐EDRY006717 ‐ $ 100.0010/06/2020 606293011.1026.596905 $ 148.83 Recruitment Brochure~ 092920DANN FROEHLICH DESIGN006011 ‐ $ 148.8310/06/2020 606294055.8400.590000 $ 122.00 Pest Control Services 13733793DEWEY PEST CONTROL002566 ‐ $ 122.0010/06/2020 606295011.1040.400900 $ 4,764.34 Ref. Parcel Tax #6308‐008‐024~ 092220DYNAMIC HOLDINGS, LLC006926 ‐ $ 4,764.3410/06/2020 606296011.1060.596700 $ 100.00 AƩendance SƟpend~ 092120ALAN FRANZ006423 ‐ $ 100.0010/06/2020 606297020.1084.500140 $ 1,270.30 Sodium Hypochlorite 142024FULLER ENGINEERING, INC006622 ‐ 020.1084.500140 $ 1,301.70 Sodium Hypochlorite 142158$ 2,572.0010/06/2020 606298011.1031.596500 $ 34.50 Report WriƟng Training 092220RAYMOND GODOY006446 ‐ $ 34.5010/06/2020 606299Printed: 10/20/2020 12:27:53PMPage 10 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1004.596200 $ 326.02 Audit Services ‐ Property Tax~ SIN002980HDL COREN & CONE003065 ‐ $ 326.0210/06/2020 606300011.1070.797000 $ 16,500.00 66 New HP Chromebook 11 G8 EE ~ 7235903490 011.0014537HUMAN‐I‐T006906 ‐ $ 16,500.0010/06/2020 606301011.1041.595200 $ 278.43 Building Plan Check & InspecƟon 62804INTERWEST CONSULTING GROUP, IN004143 ‐ $ 278.4310/06/2020 606302011.1043.520000 $ 3,230.10 Red Traffic Paint 5 Gal~ 103640 011.0014276JCL TRAFFIC SERVICES005093 ‐ 011.1043.520000 $ 40.00 Freight 103640 011.0014276011.1043.520000 $ 310.66 Sales Tax 9.5% 103640$ 3,580.7610/06/2020 606303011.1031.596500 $ 283.13 Sherman Block SLI Class 463‐2 090220(2)GABRIEL MARTINEZ000996 ‐ $ 283.1310/06/2020 606304055.9100.596200 $ 4,180.00 CriƟcal Service Contract COV3383MILLENNIUM UPS, LLC006248 ‐ $ 4,180.0010/06/2020 606305011.1060.596700 $ 100.00 AƩendance SƟpend~ 092120HECTOR MORFIN006927 ‐ $ 100.0010/06/2020 606306011.1048.596200 $ 100.00 AƩendance SƟpend~ 091020JORGE L. NEVAREZ JR006715 ‐ $ 100.0010/06/2020 606308Printed: 10/20/2020 12:27:53PMPage 11 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE020.1084.900000 $ 3,084.23 Hydrogeological Services 5772RICHARD C. SLADE & ASSOCIATES003149 ‐ $ 3,084.2310/06/2020 606309011.1049.590000 $ 267.60 Steam Cleaning Services 912724STANLEY STEEMER OF LA COUNTY,005563 ‐ $ 267.6010/06/2020 606310055.9000.596200 $ 7,500.00 Greenhouse Gas VerificaƟon~ 51637564TETRA TECH, INC.002358 ‐ $ 7,500.0010/06/2020 606311011.1004.595200 $ 3,100.00 AudiƟng Services 208480WHITE NELSON DIEHL EVANS, LLP006872 ‐ $ 3,100.0010/06/2020 606312011.1048.596200 $ 100.00 AƩendance SƟpend~ 091020MARLENE ELSA YBARRA006716 ‐ $ 100.0010/06/2020 606313011.120010 $ 798.00 (0623‐110) Safety Glasses Elite Smoke 9103270197 011.0014485AIRGAS USA, LLC000345 ‐ 011.120010 $ 75.65 Freight 9103270197 011.0014485011.120010 $ 76.31 Sales Tax 9.5% 9103270197$ 949.9610/13/2020 606314011.1003.596200 $ 2,985.94 2020 S‐9 Supplement EdiƟng Pages 2467AMERICAN LEGAL PUBLISHING CORP004724 ‐ $ 2,985.9410/13/2020 606315011.1046.590000 $ 75.00 Labor to Replace Fan Clutch 33660 011.0014522ANAYA SERVICE CENTER006308 ‐ $ 75.0010/13/2020 606316Printed: 10/20/2020 12:27:53PMPage 12 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1031.420510 $ 28.00 Ref. Parking Ticket Appeal PV87826V 100120MARCO BADILLO006929 ‐ $ 28.0010/13/2020 606317011.1041.595200 $ 371.70 3rd Qtr 07/01/20 ‐ 09/30/20 100520CA BUILDING STANDARDS COMMISSI003749 ‐ $ 371.7010/13/2020 606318011.1043.560000 $ 44.75 Period: 08/22/20 ‐ 09/21/20 092220CALIFORNIA WATER SERVICE CO000778 ‐ $ 44.7510/13/2020 606319011.1041.595200 $ 2,382.33 Mapping Fee 3rd Qtr 2020 100520DEPARTMENT OF CONSERVATION000977 ‐ $ 2,382.3310/13/2020 606320011.1060.595200 $ 114.28 Interest Charge on 19SM4953 092820DEPT OF TOXIC SUBSTANCES CTRL000620 ‐ $ 114.2810/13/2020 606321056.5600.590000 $ 65.00 Pest Control Services 13599430DEWEY PEST CONTROL002566 ‐ $ 65.0010/13/2020 606322011.200235 $ 254.40 3rd Qtr 2020 SB1186 100620DIV OF THE STATE ARCHITECT004997 ‐ $ 254.4010/13/2020 606323055.8400.590000 $ 135.51 Emergency Power Generator PreventaƟve S78863DUTHIE POWER SERVICES006714 ‐ $ 135.5110/13/2020 606324Printed: 10/20/2020 12:27:53PMPage 13 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.120010 $ 306.00 Air Filter PLF14301‐10~ 115539IN 011.0014505FLORENCE FILTER CORPORATION003489 ‐ 011.120010 $ 87.60 Air Filter PLF16201‐10~ 115539IN 011.0014505011.120010 $ 45.00 Air Filter PLF16252‐10~ 115539IN 011.0014505011.120010 $ 45.60 Air Filter PLF20202‐10~ 115539IN 011.0014505011.120010 $ 48.00 Air Filter PLF20251‐10~ 115539IN 011.0014505011.120010 $ 49.20 Air Filter PLF20252‐10~ 115539IN 011.0014505011.120010 $ 75.00 Air Filter PLF20301‐10~ 115539IN 011.0014505011.120010 $ 95.10 Freight 115539IN 011.0014505011.120010 $ 62.36 Sales Tax 9.5% 115539IN$ 813.8610/13/2020 606325011.1031.596500 $ 32.77 Report WriƟng: From a DA's PerspecƟve 100520TERESA FLORES006887 ‐ $ 32.7710/13/2020 606326Printed: 10/20/2020 12:27:53PMPage 14 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1048.596200 $ 67.50 Disposal & Recycling Services 06X03159HAUL AWAY RUBBISH SERVICE CO,005350 ‐ 011.1049.596200 $ 213.00 Disposal & Recycling Services 06X03160011.1033.520000 $ 67.50 Disposal & Recycling Services 06X03161011.1033.520000 $ 67.50 Disposal & Recycling Services 06X03162011.1033.520000 $ 67.50 Disposal & Recycling Services 06X03163011.1033.520000 $ 67.50 Disposal & Recycling Services 06X03164011.1043.596200 $ 2,411.65 Disposal & Recycling Services 06X03167011.1048.596200 $ 67.50 Disposal & Recycling Services 07X00247011.1049.596200 $ 213.00 Disposal & Recycling Services 07X00248011.1033.520000 $ 67.50 Disposal & Recycling Services 07X00249011.1033.520000 $ 67.50 Disposal & Recycling Services 07X00250011.1033.520000 $ 67.50 Disposal & Recycling Services 07X00251011.1033.520000 $ 67.50 Disposal & Recycling Services 07X00252011.1043.596200 $ 3,529.05 Disposal & Recycling Services 07X00255$ 7,041.7010/13/2020 606328011.1031.596500 $ 12.02 Crisis IntervenƟon & Behavioral Health 080320TODD NEWTON001957 ‐ $ 12.0210/13/2020 606329Printed: 10/20/2020 12:27:53PMPage 15 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1046.520000 $ 157.32 528‐0585 Element PC810897177 011.0014524QUINN COMPANY001457 ‐ 011.1046.520000 $ 84.50 346‐6687/339‐1048 Fuel Filter PC810897177 011.0014524011.1046.520000 $ 90.12 479‐4133 Element Separator PC810897177 011.0014524011.1046.520000 $ 63.84 360‐8960 Element Fuel PC810897177 011.0014524011.1046.520000 $ 63.10 346‐6688 Element Secondary PC810897177 011.0014524011.1046.520000 $ 43.59 Sales Tax 9.5% PC810897177011.1046.590000 $ 23.48 Freight PC810897305 011.0014524$ 525.9510/13/2020 606330011.1048.530015 $ 459.95 Reimb. Possessory Interest Tax~ 100820MARTIN RODRIGUEZ006932 ‐ $ 459.9510/13/2020 606331020.1084.840000 $ 5,858.58 Air Power Operator Drill~ S100158794001 011.0014540S & J SUPPLY COMPANY, INC006340 ‐ 020.1084.840000 $ 556.57 Sales Tax 9.5% S100158794001$ 6,415.1510/13/2020 606332011.1031.596500 $ 22.95 Crisis IntervenƟon & Behavioral Health 080320PHILLIP SWINFORD001616 ‐ $ 22.9510/13/2020 606333011.1043.520000 $ 64.81 N‐16 Xstamper Stamp OE87257THE HITT COMPANIES, INC006780 ‐ $ 64.8110/13/2020 606334011.1024.596500 $ 235.00 West InformaƟon Charges 843082770THOMSON REUTERS ‐ WEST000141 ‐ $ 235.0010/13/2020 606335011.1046.590000 $ 150.00 Tow Unit to El Monte Transmission 12354 011.0014525US TOW, INC005710 ‐ $ 150.0010/13/2020 606336Printed: 10/20/2020 12:27:53PMPage 16 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020EARLY CHECKSVENDOR NAME AND NUMBERACCOUNTNUMBERINVOICEAMOUNTDESCRIPTIONINVOICEP.O.#PAYMENTAMOUNTCHECKNUMBERPAYMENTDATE011.1043.520000 $ 1,560.00 Custom Pop‐Up Tent~ 835731200 011.0014482VALLEN DISTRIBUTION, INC006713 ‐ 011.1043.520000 $ 225.00 Set‐Up Fee 835731200 011.0014482011.1043.520000 $ 60.00 Custom Logo White "Health Department"~ 835731200 011.0014482011.1043.520000 $ 60.00 Custom Logo White "Public Works"~ 835731200011.0014482011.1043.520000 $ 60.00 Custom Logo White "City of Vernon" ~ 835731200 011.0014482011.1043.520000 $ 186.67 Sales Tax 9.5% 835731200$ 2,151.6710/13/2020 606337011.1049.520000 $ 124.95 Air Fair Blue Sky Green Link ~ 9005463240 011.0014510ZEP SALES & SERVICE006187 ‐ 011.1049.520000 $ 74.95 Ultra Wipes Blue LG 450 Count~ 9005463240 011.0014510011.1049.520000 $ 89.95 ZEP Oil Only Rapid‐Sorb Pads~ 9005463240 011.0014510011.1049.520000 $ 34.95 ZEP Vue R.T.U. ~ 9005463240 011.0014510011.1049.520000 $ 49.99 Freight 9005463240 011.0014510011.1049.520000 $ 35.61 Sales Tax 9.5% 9005463240$ 410.4010/13/2020 606338TOTAL EARLY CHECKS$ 84,223.21Printed: 10/20/2020 12:27:53PMPage 17 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020RECAP BY FUNDFUNDELECTRONIC TOTALEARLY CHECK TOTALWARRANT TOTALGRAND TOTALS$ 52,004.80$ 110,182.36$0.00$ 58,177.56011 ‐ GENERAL378,934.05391,260.280.0012,326.23020 ‐ WATER4,002,131.094,015,141.530.0013,010.44055 ‐ LIGHT & POWER1,429.892,138.870.00708.98056 ‐ NATURAL GAS8,278.008,278.000.000.00057 ‐ FIBER OPTICGRAND TOTAL$ 4,527,001.04$0.00$ 84,223.21$ 4,442,777.83TOTAL CHECKS TO BE PRINTED 0Printed: 10/20/2020 12:27:53PMPage 18 of 19
CITY OF VERNONOPERATING ACCOUNTWARRANT REGISTER NO. 55NOVEMBER 3, 2020VOID LISTCHECKNUMBERVENDOR NAMEAMOUNT606307 NATIONAL BUSINESS FURNITURE $ 2,875.32Printed: 10/20/2020 12:27:53PMPage 19 of 19 AM
City Council Agenda Item Report
Agenda Item No. COV-375-2020
Submitted by: Cynthia Cano
Submitting Department: Public Works
Meeting Date: November 3, 2020
SUBJECT
Public Works Department Monthly Building Report
Recommendation:
Receive and file the September 2020 Building Report.
Background:
The attached building report consists of total issued permits, major projects, demolition permits, new
building permits and certificate of occupancy status repots for the month of September 2020.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Public Works Department September 2020 Building Report
Construction
Value
Number of
Permits
Year to Date
Value
Year to Date
Permits
Construction
Value
Number of
Permits
Year to Date
Value
Year to Date
Permits
Permit
Difference
Valuation
Difference
January 6,968,160$ 49 6,968,160$ 49 8,046,145$ 43 8,046,145$ 43 -12%15%
February 4,923,135$ 63 11,891,295$ 112 2,979,923$ 48 11,026,068$ 91 -19%-7%
March 10,949,664$ 47 22,840,960$ 159 2,808,127$ 16 13,834,195$ 107 -33%-39%
April 13,285,075$ 56 36,126,035$ 215 1,100,252$ 10 14,934,447$ 117 -46%-59%
May 21,264,283$ 43 57,390,317$ 258 1,134,292$ 14 16,068,739$ 121 -53%-72%
June 12,186,470$ 67 69,576,787$ 325 3,485,709$ 55 19,554,448$ 186 -43%-72%
July 3,301,660$ 53 72,878,447$ 378 3,305,183$ 29 22,859,631$ 215 -43%-69%
August 3,283,700$ 41 76,162,147$ 419 3,059,660$ 48 25,919,291$ 263 -37%-66%
September 1,400,426$ 29 77,562,573$ 448 2,591,286$ 34 28,510,577$ 297 -34%-63%
October
November
December
2019 2020 Year to Date
Monthly Report Summary
City of Vernon
Building Division
0
10
20
30
40
50
60
70
80
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Monthly
2019 Construction Value 2020 Construction Value
2019 Number of Permits 2020 Number of Permits
0
100
200
300
400
500
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
Year to Date
2019 Year to Date Value 2020 Year to Date Value
2019 Year to Date Permits 2020 Year to Date Permits
City of Vernon
Building Department
Monthly Report from 9/1/2020 to 9l30l2O2O
Ty pe Value # of Permits
Demolition
Electrical
Grading
Mechanical
Miscellaneous
Plumbing
$370,000.00
$ 187,625.00
$1,500,000.00
$32,200.00
$490,661.00
$10,800.00
2
10
1
3
'14
4
September 2020 TOTALS
PREVIOUS MONTHS TOTAL
YEAR TO DATE TOTAL
September 2019 TOTALS
PREVIOUS MONTHS TOTAL
YEAR TO DATE TOTAL
$2,59'1,286.00
$25,919,291 .00
34
263
$28,510,577.00
$1,400,426.00
$76,162,147.38
297
29
419
$77,562,573.38 448
None
City of Vernon
Building Department
New Buildings Report - September 2020
4201 Fruitland Avenue
Southland Box Company
Demo (2) existing structuires
75,272 sf
4423 District Blvd.
4423 District Blvd LLC
Demo building and interior
3,767 sf
City of Vernon
Building Department
Demolition Report - August 2020
Permit No.Proiect Address
City of Vernon
Building Department
Major ProiecB from 91112020 lo 913012020
Valuations > 20,000
Tenant Description Job
Demolition
8-2020-4090 4423 DISTRICT BLVD
APN 6304022042
4201 FRUITLAND AVE
APN 6304027018
Demo 3,767 sf building and 596 sf
interior
Southland Box Demo (2) existing structures 75,272
sf
Electrical repairs, removal &
reinstallation of T-bar fixtures,
relocate (1) air conditioner
New 2000 amp main service
switchgear and manufacturing
equipemnt installtion
Electrical install 18edge of dock
levelers, electrical outlets in
warehouse
Grading - Phase 3 site grading plan
lnstallation of (4) AC units and
associaled ductwork.
asphalt, slurry coat and parking
stripe.
18'x24' concreet pad for support of
steel pallets and gas tanks
'14'x17' concrete pad for support of
forklift loading. Bumper posl and
footing.
Demo of asbestos
Structural upgrade to existing
warehouse (4955 Maywood Ave)
50000
320000
2
Electrical
9-2020-425s
8-2020-4208
B-20'19-3851
B-2020-4087
3
Grading
8-2020-3921
9-2020-4171
B-20'19-3844
4
Record(s)
Record(s)
Record(s)
Record(s)
Record(s)
s370,000.00
25000
'100000
30000
2660
APN
37TH ST
6302020039
4789 LOMA VISTA AVE
APN 6304025029
2929
APN
54TH ST
6310009021
'1500000
1
Mechanical
8-2020-4't51
1
Miscellaneous
B-2019-3616
$'t,500,000.00
250003876 SANTA FE AVE
APN 6302018017
3676 SANTA FE AVE
APN 6302018017
57OO ALAIVIEDA ST
APN 6308018022
4201 FRUITLAND AVE
APN 6304027018
4201 FRUITLAND AVE
APN 6304027018
$25,000.00
40000
855'17
35000
245000
11 Permit(s)Total $2,455,517.00
8-2020-4218
4201 FRUITLAND AVE
APN 6304027018
$155,000.00
$405,517.00
21
3
415
13
Month of September 2020
City of Vernon
Building Department
Status of Certificates of Occupancy Requests
Request for Inspection
Approved
Pending
Temporary Occupancies
City of Vernon
Certificate of Occupancy
Applications Date From 9/1/2020 to 9/30/2020
Permit No. Project Address Description Tenant Square Feet Fees Paid Issued
C-2020-1535 2303 55TH ST Cojecto 36000 Warehouse of
Furniture 885.00
6308016028 APN
C-2020-1536 5001 SANTA FE AVE Short Stop Distribution, LLC 1200 Wholesale of general
merchandise
385.00
6308015009 APN
C-2020-1537 2831 SANTA FE AVE GREENPY INC 38112 885.00
6302006025 APN
C-2020-1538 2011 49TH ST FEC Studios LLC 4700 Film production
studio 385.00
6308015073 APN
C-2020-1539 5001 PACIFIC BLVD Quality LA LLC 6060 Garment sewing 885.00
6308010020 APN
C-2020-1540 2611 SANTA FE AVE Bravo Foods USA, Inc. 9170 Warehouse and
Distribution,
Packaging Facility
885.00
6302008031 APN
C-2020-1541 2139 52ND ST LA Indigo 6000 Garment
manufacture 885.00
6308016039 APN
C-2020-1542 2139 52ND ST Katie K, Inc. 18000 Garment
manufacture 885.00
6308016039 APN
C-2020-1543 3280 26TH ST Dose of Roses, Inc. 47475 Warehouse and
Distribution of
Flowers
885.00
6303002021 APN
C-2020-1544 5000 HAMPTON ST Incremento, Inc. 9160 Manufacturing &
Digital Fabric
Printing
885.00
6308010026 APN
C-2020-1545 2660 37TH ST Doucai USA Inc. 54946 Wholesale of general
merchandise
1,046.00
6302020039 APN
C-2020-1546 4871 SANTA FE AVE Just for Wraps Inc. 4400 Office and design 385.00
6308015044 APN
C-2020-1547 4626 48TH ST The Great 10080 Distribution center of
apparel brand 885.00
6304018023 APN
C-2020-1548 2528 SANTA FE AVE CONTINENTAL FOOD
SERVICE INC. 4000 Warehousing
restaurant supplies 385.00
5168026001 APN
C-2020-1549 2438 27TH ST ADM Flooring, Inc 29428 Warehouse of
hardwood flooring &
bathtubs
885.00
6302004023 APN
C-2020-1550 4608 50TH ST Villagio Floors, Inc. 20000 Warehouse of
hardwood Flooring 885.00
6304013028 APN
C-2020-1551 5400 SANTA FE AVE Friends Cutting, Inc. 12000 Garment
manufacturing 885.00
6309004011 APN
1
Permit No. Project Address Description Tenant Square Feet Fees Paid Issued
C-2020-1552 2528 SANTA FE AVE Gourmet Special Ties, Inc. 2800 Warehouse and
store boxes 385.00
5168026001 APN
C-2020-1553 2305 52ND ST Little Cinema Digital 10000 10000 885.00
6308016012 APN
C-2020-1554 2640 26TH ST Lithco, Inc. 14086 Warehouse and
Distribution 885.00
6302001028 APN
C-2020-1555 5100 SANTA FE AVE AM Distributors Inc. Dba
Packaging & More 49104 Distributor of
packaging supplies 885.00
6308011012 APN
386,721.00 Total for Certificate of Occupancy: 16,246.00
Total Fees Paid 16,246.00 Permits(s) 21
2
City of Vernon
Certificate of Occupancy
Issued Date From 9/1/2020 to 9/30/2020
Permit No. Project Address Description Tenant Square Feet Fees Paid Issued
C-2020-1478 2701 SANTA FE AVE Stream Produce Inc. 2400 Warehousing and
distribution of
produce
385.00 9/22/2020
6302007033 APN
C-2020-1471 5525 SOTO ST Germ Less, Inc. 35000 Warehousing and
distribution of
antiseptic products
885.00 9/22/2020
6309026019 APN
C-2019-1352 3294 26TH ST Gauaki Sustainable
Rainforest Products, Inc.
Dba GSRP Inc.
89000 Warehousing and
distribution of
beverages
1,207.00 9/24/2020
6303002021 APN
126,400.00 Total for Certificate of Occupancy: 2,477.00
Total Fees Paid 2,477.00 Permits(s) 3
1
City Council Agenda Item Report
Agenda Item No. COV-360-2020
Submitted by: Lisa Pope
Submitting Department: City Clerk
Meeting Date: November 3, 2020
SUBJECT
April 13, 2021 General Municipal Election
Recommendation:
A. Adopt Resolution No. 2020-39 calling and giving notice of an all-mail ballot General Municipal Election
to be held on Tuesday, April 13, 2021 for the election of a City Council Member as required by the
provisions of the Charter of the City of Vernon; and
B. Adopt Resolution No. 2020-40 requesting the Board of Supervisors of the County of Los Angeles to
render specified services to the City relating the conduct of the General Municipal Election to be held on
Tuesday, April 13, 2021.
Background:
Pursuant to Vernon Charter Section 5.1 and Municipal Code Section 2.118, the City of Vernon conducts
all-mail ballot General Municipal Elections on the second Tuesday of April each year. The City Council is
required to adopt various resolutions to begin the election process.
Resolution Calling the Election
The first resolution calls the election on Tuesday, April 13, 2021, for the election of one member of the
City Council for a full five (5) year term.
Resolution Requesting County Services
The second resolution requests the services of the Los Angeles County Election Department to provide
appropriate forms, and signature verification services, and prepare, print and mail official ballots and
ballot materials.
Candidate Statement Regulations
Elections Code Section 13307 allows candidates to prepare a candidate statement for inclusion in the
voter's pamphlet.
On October 21, 2014, the Council adopted Resolution No. 2014-64 adopting regulations regarding
candidate statements submitted to voters in a general municipal or special municipal election. This
resolution applies to the April 2021 election.
Ballot Drop-Off Locations
In prior elections, the City has offered an additional ballot drop-off location on election day. Staff will
consider options for providing the best value for voters and will inform voters of such.
Nomination Period
The nomination period for the April 13, 2021 Election begins December 21, 2020, at which time
candidates may obtain nomination papers and required filing materials from the City Clerk Department.
The last day to file nomination papers is January 19, 2021 (since City Hall is closed Friday, January 15
and Monday, January 18, 2021). If an incumbent fails to file, the period is extended to January 25, 2021.
Fiscal Impact:
Account No. 011.1003.596300 has $25,000 which is expected to be sufficient to cover the cost of the
election.
Attachments:
1. Resolution No. 2020-39
2. Resolution No. 2020-40
3. Resolution 2014-64 adopted October 21, 2014
RESOLUTION NO. 2020-39
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
13, 2021, FOR THE ELECTION OF A CITY COUNCIL MEMBER AS
REQUIRED BY THE PROVISIONS OF THE CHARTER OF THE CITY OF
VERNON
SECTION 1. Recitals.
A. In April 2021, the term of one Vernon City Council Member will expire.
B. Under the provisions of the Charter of the City of Vernon, a General Municipal
Election shall be held on April 13, 2021, for the election of one Municipal Officer.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
SECTION 3. Pursuant to the requirements of the State of California, and the
Vernon Charter and Municipal Code, there is called and ordered to be held in the City of
Vernon, California, on Tuesday, April 13, 2021, a General Municipal Election conducted
by all-mail ballot for the purpose of electing one (1) Member of the City Council for the full
term of five (5) years.
SECTION 4. The ballots to be used at the election shall be in form and content as
required by law.
SECTION 5. The City Clerk is authorized, instructed and directed to procure and
furnish any and all official ballots, notices, printed matter and all supplies, equipment and
paraphernalia that may be necessary in order to properly and lawfully conduct the election
by all mail ballot.
SECTION 6. Pursuant to the City of Vernon Municipal Code, and other applicable
provisions of the Charter of the City of Vernon and Ordinances of the City of Vernon, the
Election shall be conducted by all-mail ballot, and shall be conducted pursuant to Chapter
2 of Division 4 (commencing with Section 4100) of the California Elections Code only
insofar as required by law, and only where not inconsistent with the Charter and
Ordinances of the City of Vernon. Notwithstanding Elections Code Section 4103, ballots
cast in this Election shall be returned to the Office of the City Clerk no later than 8:00 p.m.
on election day in order to be counted. Ballots that are postmarked on election day and
received no later than three (3) days following the day of the election will also be counted.
Resolution No. 2020-39
Page 2 of 2
_______________________
SECTION 7. In the event of a tie vote (if any two or more persons receive an equal
and the highest number of votes for an office) as certified by the Election Official, the City
Council, in accordance with Election Code Section 15651(b), shall conduct a special
runoff election to resolve the tie vote and such special runoff election is to be held on a
Tuesday not less than 40 days nor more than 125 days after the administrative or judicial
certification of the election which resulted in a tie vote.
SECTION 8. In all particulars not recited in this resolution, the Election shall be
held and conducted as provided by law for holding municipal elections.
SECTION 9. Notice of the time and place of holding the Election is given and the
City Clerk is authorized, instructed and directed to give further or additional notice of the
election, in time, form and manner as required by law.
SECTION 10. The City Council of the City of Vernon authorizes the City Clerk to
administer said Election and all reasonable and actual election expenses shall be paid by
the City upon presentation of a properly submitted bill.
SECTION 11. The City Clerk shall certify to the passage and adoption of this
resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED this 3rd day of November, 2020.
_____________________________
LETICIA LOPEZ, Mayor
ATTEST:
LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
_________________________________
ARNOLD M. ALVAREZ-GLASMAN,
Interim City Attorney
RESOLUTION NO. 2020-40
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 A GENERAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY, APRIL 13, 2021
SECTION 1. Recitals.
A. A General Municipal Election will be held in the City of Vernon on April 13, 2021.
B. In the course of conducting the election it is necessary for the City to request
services of the County of Los Angeles.
C. All necessary expenses in performing these services shall be paid by the City of
Vernon.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
VERNON AS FOLLOWS:
SECTION 2: The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
SECTION 3: Pursuant to the provisions of Elections Code Section 10002, the
Vernon City Council requests that the Los Angeles County Board of Supervisors permit
the County Election Department to provide the following services for use in conducting its
election:
1. Provide appropriate forms for candidate statements, arguments and rebuttals and
other forms required by the County;
2. Provide signature verification services as needed;
3. Print and mail official ballots and sample ballot booklet; and
4. Prepare and mail multilingual ballot materials in accordance with the Voting Rights
Act.
SECTION 4. The City shall reimburse the County for services performed when the
work is completed and upon presentation to the City of a properly approved bill.
Resolution No. 2020-40
Page 2 of 2
_______________________
SECTION 5. The City Clerk shall certify the passage and adoption of this resolution
and enter it into the book of original resolutions.
APPROVED AND ADOPTED this 3rd day of November, 2020.
_____________________________
LETICIA LOPEZ, Mayor
ATTEST:
LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
_________________________________
ARNOLD M. ALVAREZ-GLASMAN,
Interim City Attorney
RESOLUTION NO. 2014-64
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON REPEALING RESOLUTION NO. 2012-209 AND
ADOPTING REGULATIONS REGARDING CANDIDATE STATEMENTS
SUBMITTED TO VOTERS IN ANY GENERAL MUNICIPAL OR
SPECIAL MUNICIPAL ELECTION
WHEREAS, Section 13307 of the Elections Code of the State of
California provides that the governing body of any local agency shall
adopt regulations pertaining to materials prepared by any candidate for
a municipal election, including costs of the candidate's statement; and
WHEREAS, on November 6, 2012, the City Council of the City of
Vernon adopted Resolution No. 2012-209 adopting regulations for
candidates for elective office pertaining to candidate statements
submitted to the voters at any general municipal or special municipal
election; and
WHEREAS, the City Council desires to repeal Resolution
No. 2012-209 and adopt regulations regarding candidates statements
submitted to the voters in any general or special municipal election.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon finds
that this action is exempt under the California Environmental Quality
Act (CEQA), in accordance with Section 15061(b)(3), the general rule
that CEQA only applies to projects that may have an effect on the
environment.
SECTION 3: GENERAL PROVISIONS. Pursuant to Section 13307
of the Elections Code of the State of California, each candidate for
elective office to be voted for in any general municipal or special
municipal election, may prepare a candidate's statement on an
appropriate form provided by the City Clerk. The statement may
include the name, age and occupation of the candidate, and a brief
description of no more than 200 words of the candidate's education and
qualifications expressed by the candidate himself or herself. The
statement shall not include party affiliation of the candidate, nor
membership or activity in partisan political organizations. The
statement shall be filed in typewritten form in the office of the City
Clerk at the time the candidate's nomination papers are filed. An
electronic copy of the candidate statement should also be submitted to
the office of the City Clerk when filing. The statement may be
withdrawn, but not changed, during the period for filing nomination
papers and 'until 5:00 p.m. of the next working day after the close of
the nomination period.
SECTION 4: FOREIGN LANGUAGE POLICY.
a. Pursuant to the Federal Voting Rights Act, the City is
required to translate candidate statements into the following
languages: Spanish.
b. Pursuant to state law, the candidate may elect to have
their candidate statement translated into any other additional foreign
language(s)..
C. The City Clerk shall have all candidate statements
translated into the languages required by the Federal Voting Rights
Act and those additional languages requested by the candidate(s).
SECTION 5: PAYMENT. The City Clerk shall print an English
and Spanish voter information pamphlet to be mailed to all voters
which shall include any additional translations of candidates who so
2 -
request printing in the voter information pamphlet. All translations
will be made available upon request in the City Clerk's Office.
a. The candidate shall be required to pay for the cost of
translating the candidates statement into any required foreign
language and any other language(s) he or she has elected. The City
Clerk shall select the person who provides the foreign language
translation pursuant to the criteria set forth in Elections Code
Section 133I07(b).
b. The candidate shall be required to pay the cost of
printing, handling and mailing the candidate statement in English and
Spanish in the voter information pamphlet, and be required to pay for
said costs associated with their selection to include any other
foreign language(s) in the voter information pamphlet.
C. The City Clerk shall estimate the total cost of
printing, handling, translating, and mailing the candidate's
statements filed pursuant to the Elections Code, and require each
candidate filing a statement to pay in advance to the local agency his
or her estimated pro rata share as a condition of having his or her
statement included in the voter information pamphlet. Actual costs
vary from one election to another. The actual candidate statement
filing cost for a given election may be significantly more or less
than the estimate, depending on the actual number of candidates who
file statements. Accordingly, the City Clerk is not bound by the
estimate and may, on a pro rata basis, bill the candidate for the
additional actual expense or refund any excess amount paid, depending
on the final actual cost. In the event of underpayment, the City
Clerk may require the candidate to pay the balance of the cost
incurred. In the event of overpayment, the City Clerk shall prorate
3 -
the excess amount among the candidates and refund the excess amount
paid within 30 days of the election.
d. The City Clerk shall comply with all applicable State
statutes, regulations, standards and guidelines published by the
Secretary of State regarding candidates' statements, ballot
designations and other procedural items.
SECTION 6: ADDITIONAL MATERIALS.
No candidate will be permitted to include additional
materials in the sample ballot package.
SECTION 7: The City Clerk shall provide each candidate or
the candidate's representative a copy of this Resolution at the time
nomination documents are issued.
SECTION 8: All previous resolutions establishing Council
policy on payment for candidates' statements, specifically Resolution
No. 2012-20,9, are hereby repealed.
SECTION 9: This resolution shall apply at the next ensuing
general municipal or special municipal election and at each general
municipal or special municipal election until repealed.
4 -
SECTION 10: The City Clerk, or Deputy City Clerk, of the
City of Vernon shall certify to the passage, approval and adoption of
this resolution, and the City Clerk, or Deputy City Clerk, of the City
of Vernon shall cause this resolution and the City Clerk's, or Deputy
City Clerk's, certification to be entered in the File of Resolutions of
the Council of this City.
APPROVED AND ADOPTED this 213t day of October, 2014.
ATTEST:
Ana BMU
C&Tye-l-r]s / Deputy City Clerk
Name: W. Michael McCormick
Title: Mayor
5 -
STATE OF CALIFORNIA )
ss
COUNTY OF LOS ANGELES )
I, Aria Barcia , / Deputy City Clerk of the City
of Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 2014-64, was duly passed, approved and adopted by the
City Council of the City of Vernon at a regular meeting of the City
Council duly held on Tuesday, October 21, 2014, and thereafter was duly
signed by the Mayor or Mayor Pro-Tem of the City of Vernon.
Executed this !i5 day of October, 2014 at Vernon, California.
SEAL)
A Bar
yam'/ Deputy City Clerk
6 -
City Council Agenda Item Report
Agenda Item No. COV-376-2020
Submitted by: Brandon Gray
Submitting Department: Police Department
Meeting Date: November 3, 2020
SUBJECT
Loan Vehicle Use Agreement with National Insurance Crime Bureau
Recommendation:
Approve and authorize the Police Chief to execute a vehicle use agreement with the National Insurance
Crime Bureau (NICB) for continued participation in the loan vehicle program.
Background:
The Vernon Police Department (VPD) aims to continue its participation in the loan vehicle program in
partnership with the National Insurance Crime Bureau (NICB). The NICB loan vehicle program,
specifically for law enforcement, provides pre-owned unmarked vehicles with relatively low mileage to
assist law enforcement agencies in investigations related to insurance-related crime or fraud. The loan
vehicle program was previously sponsored by the Inter-Insurance Exchange of the Automobile Club
(AAA); however, the program was recently taken over by the NICB. There is no cost to participate in this
program. There are no extended warranties or licensing agreements with this program. However, the
VPD will be responsible for the annual vehicle registration cost as well as related auto insurance.
Authorizing the Chief of Police to execute the proposed Vehicle Use Agreement with NICB, will allow the
VPD to continue its no-cost lease of the 2012 Nissan Altima (VIN: 1N4AL2EPXCC260654) that has
been assigned to the VPD fleet since 2014. The VPD will be responsible for all vehicle maintenance and
operational needs for the one-year period, which have been included in the department's fiscal year
budget. After the one year, the vehicle can either be returned or retained by extending the vehicle use
agreement for an additional year. The VPD plans to maintain the loan vehicle in the Detective Bureau
fleet. The vehicle will be used for investigations related to insurance-related crime or fraud, and for
surveillance purposes. The loan vehicle has relatively low miles and is in very good condition. Over the
past six years, only regular maintenance has been conducted at relatively low cost.
The City Attorney's Office has reviewed and approved the agreement as to form.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. 2021 NICB Nissan Altima Vehicle Use Agreement
VrHIcIr Use AcnEEMENTRATIOI{AL IIISIJRAIICE CC SJREAU
Lcodingthe Frcud FigM
The National lnsurance Crime Bureau ("N|CB") does hereby lease to the Vemon Police Department (the
"Agencf) the vehicle described as:
YEAR: 2012
MAKE: NISSAN
MODEL: ALTIMA
VIN. 1N4AL2EPXCC26O654
This vehicle will be used by the Agensy for the purpose of investigation of insurance+elated crime and/or fraud.
This Agreement is subject to the following conditions:
1. The Agency leases fiom the NICB, the above{escribed vehhle for use in pursuit of its lar'vful purposes.
The Agency shall accept said vehicle 'as is" and shall re'title the vehicle in the name of the Agency
prior to any use. The NICB shall retain remainder interest in said vehicle and that remainder interest
shall take full force and effect on the 365th day after the efiective date of this Agreernent, or longer if
the term is extended in writing. For the duration of the agreement, the Agency shall perform all routine
and necessary mainterEnce and repairs on the vehicle.
2. ln the event the vehicle is not re-tiued in the name of the Agency within 90 days from the date last
written below, the Agency shall immediately retum said vehicle to the NICB.
3. The Agency wanants that it will not sell, convey, or in any way dispose of said vehides in a manner
which may impair the NIGB's remainder interesi. However, in the evefit that the above{escribed
vehicle is slolen or in any way damaged while in the cu$ody of the Agency, its agstts or assigns, the
Agenry shall be liable for any repair or replacement costs.
4. The Agency do€s hereby release the NICB fiom all claims for property damage or bodily injury arising
ftom the operation or mairtenance of the vehide described herein by an employee, agent or assign of
the Agency during the term of thb Agreement.
5. The Agency agrees and wanants that it shall provile insurance coverage (self-insured agency
acceptable) for the abovedescribed vehicle in the normal course of its business.
6. The Agency agrees to provide monthly reports to the NICB employee signing this Agreemert setting
forth statistical accomplishments atfibuted to the vehicle. These reports must include:
a. The number of 6mes the vehicle was deployed,
b. The number of aneds, and the cfimes ctarged, made due to the use of the vehicle,
c- The number of convictions obtained due to the use of the vehicle,
d. The cunent mileage and condiEon of the vehicle, ande. The number of vehide recoveries.
Failure to provide these reports is a material breach of this Agreernent and upon written notice to
Agency; the NICB may terminate this Agreemefit and require the retum of the vehicle.
7. The etrective date of this Agreement shall be the date the vefiide is delivered into the custody of the
Agency.
Revision Date: 06.12.2019
lN WnNEss W.|EREoF, the parties her€to have executed f$s Agreement thb 2nd day of OdctFr,zg2o.
THE AGENCY MTIONAL INST',RANCE CRIME BUREAU
By:
IE:
Dab:
Tifle
ey, A "-.e \*^-
Yoo Lones
Its: Direclor of Operations. West Reqion
Ete
Date: Date q I c.t IQ..to
NICBFTLE*h C19197m021VIN: 1MAL2EPXCC260654
VEHrcE UsE AGREEMEMT
2012 NISSAN ALTIMA 1 MA]-2EPXCC26O654
PAGE 2 oF 2
NICB FrrE # C1919700021
Anthony Miranda
Chief of Police
ATTEST:
________________________
Lisa Pope, City Clerk
APPROVED AS TO FORM:
________________________
Arnold M. Alvarez-Glasman,
Interim City Attorney
City Council Agenda Item Report
Agenda Item No. COV-387-2020
Submitted by: Brandon Gray
Submitting Department: Police Department
Meeting Date: November 3, 2020
SUBJECT
Drug Enforcement Administration Agreement
Recommendation:
Approve and authorize the Police Chief to execute a Surge Program - Funded State and Local Task
Force Agreement with the Drug Enforcement Administration (DEA), Los Angeles Field Division, for
continued participation in the Southwest Border Initiative (SWBI) taskforce with an effective date of
October 1, 2020.
Background:
Since 2008, the Vernon Police Department (VPD) has dedicated one Detective to participate in the
SWBI narcotics investigation taskforce. The goal of the SWBI narcotics 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. VPD's participation in the taskforce allows the Department
to benefit from asset forfeiture proceeds related to narcotics investigations. The VPD has also utilized
resources from the taskforce with multifaceted investigations when there is a need for additional
personnel and expertise.
On April 7, 2020 the City Council approved an agreement with the DEA for continued participation in the
SWBI taskforce from April 7, 2020 through September 30, 2020. In order to continue participating in the
SWBI taskforce, federal regulations require that VPD enter into a new agreement with the DEA with an
effective date of October 1, 2020. The City Attorney's Office has reviewed and approved the agreement
as to form.
Fiscal Impact:
Other than normal costs associated with staff time, there is no additional cost to the City for participating
in the taskforce. Participation in the taskforce may provide the VPD revenues from asset forfeiture
proceeds related to narcotics investigations.
Attachments:
1. Surge Program - Funded State and Local Task Force Agreement with DEA
STATE AND LOCAL TASK FORCE AGREEMENT
BETWEEN
THE DRUG ENFORCEMENT ADMINISTRATION
LOS ANGELES FIELD DIVISION
AND
VERNON POLICE DEPARTMENT
SURGE PROGRAM - FUNDED STATE AND LOCAL TASK FORCE
AGREEMENT
This agreement is made this 1st day of October, 2020, between the United States Department of
Justice, Drug Enforcement Administration (hereinafter "DEA"), and the Vernon Police
Department ORI # CA0197300 (hereinafter "VPD"). The DEA is authorized to enter into this
cooperative agreement concerning the use and abuse of controlled substances under the
provisions of 21 U.S.C. § 873.
WHEREAS there is evidence that trafficking in narcotics and dangerous drugs exists in the Los
Angeles County area and that such illegal activity has a substantial and detrimental effect on the
health and general welfare of the people of City of Vernon, the parties hereto agree to the
following:
1. The Ventura Resident Office Surge Task Force (hereinafter “Task Force”) will perform the activities
and duties described below:
a. disrupt the illicit drug traffic in the Los Angeles and area by immobilizing targeted
violators and trafficking organizations;
b. gather and report intelligence data relating to trafficking in narcotics and
dangerous drugs; and
c. conduct undercover operations where appropriate and engage in other traditional
methods of investigation in order that the Task Force activities will result in effective
prosecution before the courts of the United States and the State of California.
2. To accomplish the objectives of the Task Force, the VPD agrees to detail one (1)
experienced officer to the Task Force 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 of
DEA supervisory personnel assigned to the Task Force.
3. The VPD officer assigned to the Task Force shall adhere to DEA policies and procedures.
Failure to adhere to DEA policies and procedures shall be grounds for dismissal from the Task
Force.
4. The VPD officer assigned to the Task Force shall be deputized as a Task Force
Officer of DEA pursuant to 21 U.S.C. Section 878.
5. To accomplish the objectives of the Task Force, DEA will assign seven (7) Special Agents
to the Task Force. DEA will also, subject to the availability of annually appropriated funds or
any continuing resolution thereof, provide necessary funds and equipment to support the
activities of the DEA Special Agents and the VPD officer assigned to the Task Force. This
support will include: office space, office supplies, travel funds, funds for the purchase of
evidence and information, investigative equipment, training, and other support items.
6. During the period of assignment to the Task Force, the VPD will remain responsible for establishing
the salary and benefits, including overtime, of the officer assigned to the Task Force, and for making all
payments due them. DEA will, subject to availability of funds, reimburse the VPD for overtime payment.
Annual overtime for each state or local law enforcement officer is capped at the equivalent of 25% of a
GS-12, Step 1, of the general pay scale for the Rest of United States. Reimbursement for all types of
qualified expenses shall be contingent upon availability of funds and the submission of a proper request
for reimbursement which shall be submitted monthly or quarterly on a fiscal year basis, and which
provides the names of the investigators who incurred overtime for DEA during the invoiced period, the
number of overtime hours incurred, the hourly regular and overtime rates in effect for each investigator,
and the total cost for the invoiced period. Invoices must be submitted at least quarterly within 10 business
days of the end of the invoiced period. Note: Task Force Officer’s overtime “shall not include any
costs for benefits, such as retirement, FICA, and other expenses.”
7. In no event will the VPD charge any indirect cost rate to DEA for the administration or
implementation of this agreement.
8. The VPD shall maintain on a current basis complete and accurate records and accounts of
all obligations and expenditures of funds under this agreement in accordance with generally
accepted accounting principles and instructions provided by DEA to facilitate on-site
inspection and auditing of such records and accounts.
9. The VPD shall permit and have readily available for examination and auditing by DEA,
the United States Department of Justice, the Comptroller General of the United States, and
any of their duly authorized agents and representatives, any and all records, documents,
accounts, invoices, receipts or expenditures relating to this agreement. The VPD shall
maintain all such reports and records until all audits and examinations are completed and
resolved, or for a period of six (6) years after termination of this agreement, whichever is
sooner.
10. 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 pursuant to the regulations of the United States Department of
Justice implementing those laws, 28 C.F.R. Part 42, Subparts C, F, G, H and I.
11. The VPD agrees that an authorized officer or employee will execute and return to DEA the
attached OJP Form 4061/6, Certification Regarding Lobbying; Debarment, Suspension and
Other Responsibility Matters; and Drug-Free Workplace Requirements. The VPD
acknowledges that this agreement will not take effect and no Federal funds will be awarded to
the VPD by DEA until the completed certification is
received.
12. When issuing statements, press releases, requests for proposals, bid solicitations, and
other documents describing projects or programs funded in whole in part with Federal
money, the VPD shall clearly state (1) the percentage of the total cost of the program or
project which will be financed with Federal money and (2) the dollar amount of Federal
funds for the project or program.
13. The term of this agreement shall be effective from the date in paragraph number one until
September 30, 2021. 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 by VPD during the term of this agreement.
For the Drug Enforcement Administration:
_____________________________________ Date: __________________
William D. Bodner
Special Agent in Charge
For the Vernon Police Department:
_____________________________________ Date: __________________
Anthony Miranda
Chief of Police
Attest: Approved as to Form:
_____________________________________ ________________________
Lisa Pope Arnold M. Alvarez-Glasman
City Clerk Interim City Attorney
ATTACHMENTS:
(1). OJP Form 4061/6 (3-91): Certifications Regarding Lobbying; Debarment, Suspensions and Other
Responsibility Matters; and Drug Free Workplace Requirements.
(2). Roster of Local, State, or Federal Agency Personnel Assigned to the United States Drug Enforcement,
Los Angeles Field Division.
U.S. DEPARTMENT OF JUSTICE
OFFICE OF JUSTICE PROGRAMS
OFFICE OF THE COMPTROLLER
CERTIFICATIONS REGARDING LOBBYING; DEBARMENT, SUSPENSION ANDOTHER RESPONSIBILITY MATTERS; AND DRUG-FREE WORKPLACE REQUIREMENTS
Applicants should refer to the regulations cited below to determine the certification to which they are required to
attest. Applicants should also review the instructions for certification included in the regulations before completing this
from. Signature of this form provides for compliance with certification requirements under 28 CFR Part 69, "New
Restrictions on Lobbying" and 28 CFR Part 67, "Government-wide Department and Suspension (Nonprocurement) and
Government-wide Requirements for Drug-Free Workplace (Grants)." The certifications shall be treated as a material
representation of fact upon reliance will be placed when the Department of Justice determines to award the
covered transaction, grant, or cooperative agreement.
1. LOBBYING public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;
As required by Section 1352, Title 31 of the U.S. Code, and implemented at 28 CFR Part 69, for persons entering into a grant or cooperative agreement over $100,000, as defined at 28 CFR Part 69, the applicant certifies that:
(c) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and
(a) No Federal appropriate funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the making of any Federal grant, the entering into of any cooperative agreement, and extension, continuation, renewal, amendment, or modification of any Federal grant or cooperative agreement;
(d) Have not within a three-year period preceding this application had one or more public transactions (Federal, State, or local) terminated for cause or default; and
B. Where the applicant is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application.(b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal grant or cooperative agreement, the undersigned shall complete and submit Standard Form - LLL, "Disclosure of Lobbying Activities," in accordance with its instructions;
3. DRUG-FREE WORKPLACE(GRANTEES OTHER THAN INDIVIDUALS)
As required by the Drug-Free Workplace Act of 1988, and implemented at 28 CFR Part 67, Subpart F, for grantees, as defined at 28 CFR Part 67 Sections 67.615 and 67.620-
(c) The undersigned shall require that the language of this cer-tification be included in the award documents for all subawards at all tiers (including subgrants, contracts under grants and cooperative agreements, and subcontracts) and that all sub-recipients shall certify and disclose accordingly.
A. The applicant certifies that it will or will continue to provide a drug-free workplace by:
(a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition;2. DEBARMENT, SUSPENSION, AND OTHERRESPONSIBILITY MATTERS(DIRECT RECIPIENT)
(b) Establishing an on-going drug-free awareness program to inform employees about-As required by Executive Order 12549, Debarment and Suspension, and implemented at 28 CFR Prt 67, for prospective participants in primary covered transactions, as defined at 28 CFR Part 67, Section 67.510-(1) The dangers of drugs abuse in the workplace;
(2) The grantee's policy of maintaining a drug-free workplace;A. The applicant certifies that it and its principals:(3) Any available drug counseling, rehabilitation, and employee assistance programs; and(a) Are not presently debarred, suspended, proposed for debar-ment, declared ineligible, sentenced to a denial of Federal benefits by a State or Federal court, or voluntarily excluded from covered transactions by any Federal department or agency;(4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace;
(c) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (a);(b) Have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a (d) Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will-
OJP FORM 4061/6 (3-91) REPLACES OJP FORMS 4061/2, 4062/3 AND 4061/4 WHICH ARE OBSOLETE.
(1) Abide by the terms of the statement; and
(2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction;
(e) Notifying the agency, in writing, within 10 calendar days after receiving notice under subparagraph (d)(2) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to: Department of Justice, Office of Justice Programs, ATTN: Control Desk, 633 Indiana Avenue, N.W., Washington, D.C. 20531. Notice shall include the identification number(s) of each affected grant;
Check if there are workplace on file that are not identified here.
Section 67, 630 of the regulations provides that a grantee that is a State may elect to make one certification in each Federal fiscal year. A copy of which should be included with each application for Department of Justice funding. States and State agencies may elect to use OJP Form 4061/7.
(f) Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph (d)(2), with respect to any employee who is so convicted-Check if the State has elected to complete OJP Form 4061/7.
(1) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or DRUG-FREE WORKPLACE(GRANTEES WHO ARE INDIVIDUALS)
(2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
As required by the Drug-Free Workplace Act of 1988, and implemented at 28 CFR Part 67, Subpart F, for grantees, as defined at 28 CFR Part 67; Sections 67.615 and 67.620-
A. As a condition of the grant, I certify that I will not engage in the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance in condition any activity with the grant; and
(g) Making a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs (a), (b), (c), (d), (e), and (f).
B. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant:
B. If convinced of a criminal drug offense resulting from a violation occurring during the conduct of any grant activity, I will report the conviction, in writing, within 10 calendar days of the conviction, to: Department of Justice, Office of Justice Programs, ATTN: Control Desk, 633 Indiana Avenue, N.W., Washington, D.C. 20531.Place of Performance (Street address, city, country, state, zip code)
As the duly authorized representative of the applicant, I hereby certify that the applicant will comply with the above certifications.
1. Grantee Name and Address:
2. Application Number and/or Project Name 3. Grantee IRS/Vendor Number
4. Typed Name and Title of Authorized Representative
5. Signature 6. Date
ROSTER OF LOCAL, STATE, OR FEDERAL AGENCY PERSONNEL
ASSIGNED TO THE DEA TASK FORCE
NAME OF AGENCY: Vernon Police Department
1.
ATTACHMENT 2
City Council Agenda Item Report
Agenda Item No. COV-388-2020
Submitted by: Jessica Balandran
Submitting Department: Public Utilities
Meeting Date: November 3, 2020
SUBJECT
Supplemental Agreement with the Union Pacific Railroad
Recommendation:
Adopt Resolution No. 2020-41 approving and authorizing the execution of a Supplemental Agreement by
and between the City of Vernon and Union Pacific Railroad Company to approve the City's intent to
rebuild the existing overhead wireline crossing to 16.340kV.
Background:
On May 26, 2020, the City requested authorization from Union Pacific Railroad (Union Pacific) to rebuild
an existing 7kV line to a 16kV line, that crosses over Union Pacific owned railroad tracks located on the
east side of Downey Road just north of Fruitland Avenue. Union Pacific requires all electric lines crossing
over railroads to be permitted and licensed by them. The existing overhead 7kV line was originally
permitted and licensed through Union Pacific in April of 1986 through a License Agreement prepared by
Union Pacific.
The 7kV to 16kV rebuild is due to a customer request to increase electric service by customer,
Southland Box Company (Southland Box), located at 4201 Fruitland Avenue. The identified overhead line
is a lateral feed that provides service to a single distribution transformer which feeds Southland Box. The
current 7kV load capacity cannot accommodate the new load increase, therefore the overhead line must
be changed to a 16kV system. Union Pacific’s practice to approve any changes or modifications to
existing overhead lines is to provide a Supplemental Agreement for the work. The Supplemental
Agreement, specifies the upgrade be complete within a one-year period and requires an administrative
handling fee of $1,000, to be paid to Union Pacific for processing of the agreement. The City will incur
the cost of the administrative handling fee as the customer, Southland Box, has already paid the City a
significant amount of fees as part of the new electric service request. Furthermore, the upgrade is a
benefit to the City's electric system for improved reliability and operational flexibility. Any future upgrades
or maintenance to the new line will be subject to the original Union Pacific License Agreement and are
not changed by this Supplemental Agreement.
Staff recommends that the City Council adopt the proposed resolution approving the Supplemental
Agreement as required by Union Pacific to rebuild the 7kV line to 16kV line that cross over railroad
tracks located on the east side of Downey Road just north of Fruitland Avenue. If the Supplemental
Agreement is approved, work to upgrade the line will begin November 20, 2020 and will be complete by
December 30, 2020.
The resolution and Supplemental Agreement have been reviewed and approved as to form by the City
Attorney’s Office.
Fiscal Impact:
The fiscal impact of the upgrade including the administrative fee and labor are estimated at
approximately $5,000. The costs associated with this project are included in the approved Public
Utilities Department Fiscal Year 2000-2021 budget and will be charged to account 055.9100.5900000.
Attachments:
1. Resolution No. 2020-41
RESOLUTION NO. 2020-41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING AND AUTHORIZING THE EXECUTION OF A
SUPPLEMENTAL AGREEMENT BY AND BETWEEN THE CITY OF
VERNON AND UNION PACIFIC RAILROAD COMPANY TO APPROVE
THE CITY’S INTENT TO REBUILD THE EXISTING OVERHEAD
WIRELINE CROSSING TO 16.340KV
SECTION 1. Recitals.
A. The City of Vernon (“City”) is a chartered municipal corporation of the State of
California that owns and operates a system for the generation, purchase, transmission,
distribution and sale of electric capacity and energy.
B. The General Manager of Public Utilities has recommended that the City Council
approve and authorize the execution of a Supplemental Agreement with the Union Pacific
Railroad Company to rebuild the existing overhead wireline railroad tracks crossing to
16.340kV located on the east side of Downey Road just north of Fruitland Avenue and to
pay the administrative fee for processing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
SECTION 3. The City Council of the City of Vernon hereby approves the
Supplemental Agreement with Union Pacific Railroad Company, in substantially the
same form as attached hereto as Exhibit A.
SECTION 4. The City Council of the City of Vernon hereby authorizes the City
Administrator to execute said Supplemental Agreement for, and on behalf of, the City of
Vernon and the City Clerk is hereby authorized to attest thereto.
SECTION 5. The City Council of the City of Vernon hereby instructs the City
Administrator, or his designee, to take whatever actions are deemed necessary or
desirable for the purpose of implementing and carrying out the purposes of this Resolution
and the transactions herein approved or authorized, including but not limited to, any non-
substantive changes to the Supplemental Agreement attached herein.
Resolution No. 2020-41
Page 2 of 20 _______________________
SECTION 6. The City Clerk shall certify the passage and adoption of this
resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED this 3rd day of November, 2020.
_____________________
LETICIA LOPEZ, Mayor
ATTEST:
LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
_________________________________
ARNOLD M. ALVAREZ-GLASMAN,
Interim City Attorney
SUPPAGR.DOC 980220
Form Approved, AVP-Law
Audit: A106726
Folder: 00503-36
SUPPLEMENTAL AGREEMENT
THIS SUPPLEMENTAL AGREEMENT is entered into on the _____ day of
________________, 20___, between UNION PACIFIC RAILROAD COMPANY (“Licensor”) and
CITY OF VERNON, a Municipal Corporation in the State of California, whose address is 4305 Santa Fe
Avenue, Vernon, California 90058 (“Licensee”).
RECITALS:
By instrument dated 4/18/1986, between the City of Vernon and Los Angeles & Salt
Lake Railroad Company which was acquired by Licensor on 1/1/1988, entered into an agreement
(“Basic Agreement”), with certain supplements thereto identified as Audit No. A106726, at
FRUITLAND, CALIFORNIA.
AGREEMENT:
NOW, THEREFORE, IT IS AGREED by and between the parties hereto as follows:
Article 1. SUBSTITUTION OF PRINT.
The print dated July 09, 2020, attached hereto as Exhibit 'A', shall be and hereby is substituted for
the print dated May 12, 1988, attached to the Supplemental Agreement dated 5/12/1988, and from and
after the effective date herein whenever the term Wireline is used in the Basic Agreement, or any
amendment or supplement thereto (if any), such reference shall be deemed to refer to the Wireline as
shown on Exhibit 'A', hereto attached.
Article 2. CONSENT TO WORK.
This Supplemental Agreement will serve as notification that the Railroad Company approves of
your intentions to rebuild the existing overhead wireline crossing to consist of three (3) 16.340kV
wirelines in accordance with Exhibit A.
Article 3. CONTRACTOR RIGHT OF ENTRY.
If a contractor is to do any of the work performed on or about the Railroad Company’s property,
then Utility shall require its contractor to execute the Railroad Company’s form Contractor's Right of
Entry Agreement, EXHIBIT B. Utility acknowledges receipt of a copy of Contractor's Right of Entry
Agreement and understanding its term, provisions and requirements, and will inform its contractor of the
need to execute the Agreement. Under no circumstances will Utility’s contractor be allowed on or about
the Railroad Company’s property without first executing the Contractor's Right of Entry Agreement.
3rdNovember20
Supplemental Agreement - Union Pacifc Railroad Company Page 1 of 18
Resolution No. 2020-41
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_____________________
Article 4. NOTICE OF COMMENCEMENT OF WORK / RAILROAD REPRESENTATIVE
/ SUPERVISION / FLAGGING / SAFETY.
If an emergency should arise requiring immediate attention, the Licensee shall provide as much
notice as practicable to Railroad, by calling the Response Management Communication Center at (888)
877-7267 before commencing any work. In all other situations, the Licensee shall notify the Railroad at
least ten (10) days (or such other time as the Railroad may allow) in advance of the commencement of
any work upon property of the Railroad in connection with the construction, maintenance, repair, renewal,
modification, reconstruction, relocation or removal of the Wireline. All such work shall be prosecuted
diligently to completion. The Licensee will coordinate its initial and any subsequent work with the
following employee of Railroad or his or her duly authorized representative (hereinafter "Railroad
Representative" or "Railroad Representative"):
Railpros Flagging
up.info@railpros.com
877-315-0513 x 116
Jose A. Rubio
Work Phone: (626)935-7681
Cell Phone: (562)318-4153
Email address: jarubio@up.com
Article 5. EFFECTIVE DATE.
This Supplemental Agreement shall be effective as of November 3, 2020.
Article 6. AGREEMENT SUPPLEMENT.
Nothing in this Supplemental Agreement shall be construed as amending or modifying the Basic
Agreement unless specifically provided herein.
Article 7. ADMINISTRATIVE HANDLING CHARGE.
Upon execution and delivery of this Supplemental Agreement, the Licensee shall pay to the
Licensor an administrative handling charge of One Thousand DOLLARS ($1,000.00).
Supplemental Agreement - Union Pacifc Railroad Company Page 2 of 18
Resolution No. 2020-41
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_____________________
IN WITNESS WHEREOF, the parties have executed this Supplemental Agreement as of the day
and year first written.
UNION PACIFIC RAILROAD COMPANY VERNON,CITY OF
By: __________________________________ By: __________________________________
Valerie Harrill
Mgr II Real Estate Contracts
Name Printed: Carlos Fandino
Title: City Administrator
ATTEST:
_______________________________
Lisa Pope, City Clerk
APPROVED AS TO FORM:
_______________________________
Arnold M. Alvarez-Glasman,
Interim City Attorney
Supplemental Agreement - Union Pacifc Railroad Company Page 3 of 18
Resolution No. 2020-41
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_____________________
90
Lat: 33.997863
Long: -118.204517
51.5
26
47
25.8
36
31.5
DISTRIBUTION LINE
YES
50.7 50.7
INDUSTRIAL
0 N/A SOLID
83.3 24 70
60 8
52
1
60 8
52
22
1 15400 25
1 15400 50
DOUBLE DOUGLAS FIR 10
PIN hendrix hp1-34vtp-02
CLAMPS
1 9.434 16.340 3 3 336 ACSR STRANDED 49.5
49.5
VERNON LOS ANGELES CA
0503-36 7/9/2020
VERNON PUBLIC UTILITIES
Supplemental Agreement - Union Pacifc Railroad Company Page 4 of 18
Resolution No. 2020-41
Page 6 of 20
_____________________
Folder: 00503-36
To the Contractor:
Before Union Pacific Railroad Company can permit you to perform work on its right of way, it will be
necessary to complete two originals of the enclosed Right of Entry Agreement as follows:
1. Fill in the complete legal name of the contractor in the space provided on Page 1 of the
Contractor's Right of Entry Agreement.
2. Fill in the name of the contractor in the space provided in the signature block at the end of the
Contractor's Right of Entry Agreement. If the contractor is a corporation, the person signing on
its behalf must be an elected corporate officer.
3. Please print two copies, execute on your behalf and return ALL DOCUMENTS with a check for
any payments required, as shown below to 1400 Douglas Street, Omaha, NE 68137-1690 Attn:
Valerie Harrill.
4. Check, with Folder No. 00503-36 written on the front, made payable to the Union Pacific
Railroad Company in the amount of ONE THOUSAND DOLLARS ($1,000.00). If you require
formal billing, you may consider this letter as a formal bill. In compliance with the Internal
Revenue Service's new policy regarding their Form 1099, I certify that 94-6001323 is the
Railroad Company's correct Federal Taxpayer Identification Number and that UNION PACIFIC
RAILROAD COMPANY is doing business as a corporation.
5. Railroad Protective Liability Insurance (RPLI) certificate listing folder number 00503-36. Only
one RPI certificate is required and must be on a separate certificate from your general liability
insurance.
After approval of the Right of Entry Agreement and insurance certificate, one fully-executed counterpart
of the Agreement will be returned to you. In no event should you begin work until you have received
your counterpart of the fully-executed Agreement.
Sincerely,
Valerie Harrill
Mgr II Real Estate Contracts - Real Estate
Supplemental Agreement - Union Pacifc Railroad Company Page 5 of 18
Resolution No. 2020-41
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_____________________
EXHIBIT B
TO
SUPPLEMENTAL AGREEMENT
Folder No. 00503-36
Form Approved, AVP-Law
09/01/2018
CONTRACTOR’S RIGHT OF ENTRY AGREEMENT
THIS AGREEMENT is made and entered into as of the _____________________ by and between
UNION PACIFIC RAILROAD COMPANY, a Delaware corporation, (“Railroad”) and
________________________________________________________________________,(“Contractor”),
to be addressed at _____________________________________________________________.
RECITALS:
The Contractor has been hired by City of Vernon to rebuild existing overhead 16.340kV wireline
crossing (the "work"), with all or a portion of such work to be performed on property of Railroad at Mile
Post 4.1, on the San Pedro Subdivision at or near FRUITLAND, Los Angeles County, California.
pursuant to a Supplemental Agreement between Railroad and Vernon,City Of with an effective date of
7/13/2020 at such location as shown on the print marked Exhibit A attached hereto and hereby made a
part hereof.
Railroad is willing to permit Contractor to perform the work described above at the location
described above subject to the terms and conditions contained in this Agreement.
AGREEMENT:
NOW, THEREFORE, it is mutually agreed by and between the Railroad and Contractor, as
follows:
Article I. DEFINITION OF CONTRACTOR.
For purposes of this Agreement, all references in this Agreement to the Contractor shall include
Contractor's contractors, subcontractors, officers, agents and employees, and others acting under its or
their authority.
Article II. RIGHT GRANTED; PURPOSE.
Railroad hereby grants to Contractor the right, during the term hereinafter stated and upon and
subject to each and all of the terms, provisions and conditions herein contained, to enter upon and have
ingress to and egress from the property described in the Recitals for the purpose of performing any work
described in the Recitals above. The right herein granted to Contractor is limited to those portions of
Railroad’s property specifically described herein, or as designated by the Railroad Representative named
in Article IV, and is strictly limited to the scope of work identified to the Railroad, as determined by the
Railroad in its sole discretion, and for no other purpose.
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_____________________
Article III. TERMS AND CONDITIONS CONTAINED IN EXHIBITS B AND C.
The terms and conditions contained in Exhibit B and C, attached hereto, are hereby made a part
of this Agreement.
Article IV. ALL EXPENSES TO BE BORNE BY CONTRACTOR; RAILROAD
REPRESENTATIVE.
A. Contractor shall bear any and all costs and expenses associated with any work performed
by Contractor, or any costs or expenses incurred by Railroad relating to this Agreement.
B. Contractor shall coordinate all of its work with the following Railroad representative or
his or her duly authorized representative (the "Railroad Representative"):
UP.info@railpros.com
(877)-315-0513 x. 116
Jose A. Rubio
Work Phone: (626)935-7681
Cell Phone: (562)318-4153
Email address: jarubio@up.com
C. Contractor, at its own expense, shall adequately police and supervise all work to be
performed by Contractor and shall ensure that such work is performed in a safe manner as set forth in
Section 7 of Exhibit B. The responsibility of Contractor for safe conduct and adequate policing and
supervision of Contractor's work shall not be lessened or otherwise affected by Railroad's approval of
plans and specifications involving the work, or by Railroad's collaboration in performance of any work, or
by the presence at the work site of a Railroad Representative, or by compliance by Contractor with any
requests or recommendations made by Railroad Representative.
Article V. TERM; TERMINATION.
A. The grant of right herein made to Contractor shall commence on the date of this
Agreement, and continue for one (1) year from 7/13/2020, unless sooner terminated as herein provided, or
at such time as Contractor has completed its work on Railroad's property, whichever is earlier. Contractor
agrees to notify the Railroad Representative in writing when it has completed its work on Railroad's
property.
B. This Agreement may be terminated by either party on ten (10) days written notice to the
other party.
Article VI. CERTIFICATE OF INSURANCE.
A. Only upon request, Contractor will provide Railroad with the insurance binders, policies,
certificates and/or endorsements set forth in Exhibit C of this Agreement.
Supplemental Agreement - Union Pacifc Railroad Company Page 7 of 18
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_____________________
B. All insurance correspondence, binders, policies, certificates and/or endorsements shall be
sent to:
Folder No: 00503-36
Union Pacific Railroad Company
1400 Douglas Street STOP 1690
Omaha, Nebraska 68179-1690
Article VII. CHOICE OF FORUM.
Litigation arising out of or connected with this Agreement may be instituted and maintained in
the courts of the State of California only, and the parties consent to jurisdiction over their person and over
the subject matter of any such litigation, in those courts, and consent to service of process issued by such
courts.
Article VIII. DISMISSAL OF CONTRACTOR's EMPLOYEE.
At the request of Railroad, Contractor shall remove from Railroad's property any employee of
Contractor who fails to conform to the instructions of the Railroad Representative in connection with the
work on Railroad's property, and any right of Contractor shall be suspended until such removal has
occurred. Contractor shall indemnify Railroad against any claims arising from the removal of any such
employee from Railroad's property.
Article IX. ADMINISTRATIVE FEE.
Upon the execution and delivery of this Agreement, Contractor shall pay to Railroad One
Thousand Dollars ($1,000.00) as reimbursement for clerical, administrative and handling expenses in
connection with the processing of this Agreement.
Article X. CROSSINGS.
No additional vehicular crossings (including temporary haul roads) or pedestrian crossings over
Railroad's trackage shall be installed or used by Contractor without the prior written permission of
Railroad.
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Resolution No. 2020-41
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_____________________
Article XI. EXPLOSIVES.
Explosives or other highly flammable substances shall not be stored on Railroad's property
without the prior written approval of Railroad.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed in duplicate as
of the date first herein written.
UNION PACIFIC RAILROAD COMPANY
By: ________________________________
_________________________________
Valerie Harrill
Mgr II Real Estate Contracts
(Contractor Name)
By__________________________________
Name:_______________________________
Title:________________________________
Telephone:____________________________
Email:_________________________________
Supplemental Agreement - Union Pacifc Railroad Company Page 9 of 18
Resolution No. 2020-41
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_____________________
90
Lat: 33.997863
Long: -118.204517
51.5
26
47
25.8
36
31.5
DISTRIBUTION LINE
YES
50.7 50.7
INDUSTRIAL
0 N/A SOLID
83.3 24 70
60 8
52
1
60 8
52
22
1 15400 25
1 15400 50
DOUBLE DOUGLAS FIR 10
PIN hendrix hp1-34vtp-02
CLAMPS
1 9.434 16.340 3 3 336 ACSR STRANDED 49.5
49.5
VERNON LOS ANGELES CA
0503-36 7/9/2020
VERNON PUBLIC UTILITIES
Supplemental Agreement - Union Pacifc Railroad Company Page 10 of 18
Resolution No. 2020-41
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_____________________
Form Approved, AVP-Law
09/01/2018
EXHIBIT B
To
CONTRACTOR’S RIGHT OF ENTRY AGREEMENT
Section 1. NOTICE OF COMMENCEMENT OF WORK - FLAGGING.
A. Contractor agrees to notify the Railroad Representative at least ten (10) working days in
advance of Contractor commencing its work and at least ten (10) working days in advance of proposed
performance of any work by Contractor in which any person or equipment will be within twenty-five (25)
feet of any track, or will be near enough to any track that any equipment extension (such as, but not
limited to, a crane boom) will reach to within twenty-five (25) feet of any track. No work of any kind
shall be performed, and no person, equipment, machinery, tool(s), material(s), vehicle(s), or thing(s) shall
be located, operated, placed, or stored within twenty-five (25) feet of any of Railroad's track(s) at any
time, for any reason, unless and until a Railroad flagman is provided to watch for trains. Upon receipt of
such ten (10)-day notice, the Railroad Representative will determine and inform Contractor whether a
flagman need be present and whether Contractor needs to implement any special protective or safety
measures. If flagging or other special protective or safety measures are performed by Railroad, Railroad
will bill Contractor for such expenses incurred by Railroad, unless Railroad and a federal, state or local
governmental entity have agreed that Railroad is to bill such expenses to the federal, state or local
governmental entity. If Railroad will be sending the bills to Contractor, Contractor shall pay such bills
within thirty (30) days of Contractor's receipt of billing. If Railroad performs any flagging, or other
special protective or safety measures are performed by Railroad, Contractor agrees that Contractor is not
relieved of any of its responsibilities or liabilities set forth in this Agreement.
B. The rate of pay per hour for each flagman will be the prevailing hourly rate in effect for
an eight-hour day for the class of flagmen used during regularly assigned hours and overtime in
accordance with Labor Agreements and Schedules in effect at the time the work is performed. In addition
to the cost of such labor, a composite charge for vacation, holiday, health and welfare, supplemental
sickness, Railroad Retirement and unemployment compensation, supplemental pension, Employees
Liability and Property Damage and Administration will be included, computed on actual payroll. The
composite charge will be the prevailing composite charge in effect at the time the work is performed.
One and one-half times the current hourly rate is paid for overtime, Saturdays and Sundays, and two and
one-half times current hourly rate for holidays. Wage rates are subject to change, at any time, by law or
by agreement between Railroad and its employees, and may be retroactive as a result of negotiations or a
ruling of an authorized governmental agency. Additional charges on labor are also subject to change. If
the wage rate or additional charges are changed, Contractor (or the governmental entity, as applicable)
shall pay on the basis of the new rates and charges.
C. Reimbursement to Railroad will be required covering the full eight-hour day during
which any flagman is furnished, unless the flagman can be assigned to other Railroad work during a
portion of such day, in which event reimbursement will not be required for the portion of the day during
which the flagman is engaged in other Railroad work. Reimbursement will also be required for any day
not actually worked by the flagman following the flagman's assignment to work on the project for which
Supplemental Agreement - Union Pacifc Railroad Company Page 11 of 18
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_____________________
Railroad is required to pay the flagman and which could not reasonably be avoided by Railroad by
assignment of such flagman to other work, even though Contractor may not be working during such time.
When it becomes necessary for Railroad to bulletin and assign an employee to a flagging position in
compliance with union collective bargaining agreements, Contractor must provide Railroad a minimum of
five (5) days notice prior to the cessation of the need for a flagman. If five (5) days notice of cessation is
not given, Contractor will still be required to pay flagging charges for the five (5) day notice period
required by union agreement to be given to the employee, even though flagging is not required for that
period. An additional ten (10) days notice must then be given to Railroad if flagging services are needed
again after such five day cessation notice has been given to Railroad.
Section 2. LIMITATION AND SUBORDINATION OF RIGHTS GRANTED
A. The foregoing grant of right is subject and subordinate to the prior and continuing right
and obligation of the Railroad to use and maintain its entire property including the right and power of
Railroad to construct, maintain, repair, renew, use, operate, change, modify or relocate railroad tracks,
roadways, signal, communication, fiber optics, or other wirelines, pipelines and other facilities upon,
along or across any or all parts of its property, all or any of which may be freely done at any time or times
by Railroad without liability to Contractor or to any other party for compensation or damages.
B. The foregoing grant is also subject to all outstanding superior rights (including those in
favor of licensees and lessees of Railroad's property, and others) and the right of Railroad to renew and
extend the same, and is made without covenant of title or for quiet enjoyment.
Section 3. NO INTERFERENCE WITH OPERATIONS OF RAILROAD AND ITS
TENANTS.
A. Contractor shall conduct its operations so as not to interfere with the continuous and
uninterrupted use and operation of the railroad tracks and property of Railroad, including without
limitation, the operations of Railroad's lessees, licensees or others, unless specifically authorized in
advance by the Railroad Representative. Nothing shall be done or permitted to be done by Contractor at
any time that would in any manner impair the safety of such operations. When not in use, Contractor's
machinery and materials shall be kept at least fifty (50) feet from the centerline of Railroad's nearest
track, and there shall be no vehicular crossings of Railroads tracks except at existing open public
crossings.
B. Operations of Railroad and work performed by Railroad personnel and delays in the work
to be performed by Contractor caused by such railroad operations and work are expected by Contractor,
and Contractor agrees that Railroad shall have no liability to Contractor, or any other person or entity for
any such delays. The Contractor shall coordinate its activities with those of Railroad and third parties so
as to avoid interference with railroad operations. The safe operation of Railroad train movements and
other activities by Railroad takes precedence over any work to be performed by Contractor.
Section 4. LIENS.
Contractor shall pay in full all persons who perform labor or provide materials for the work to be
performed by Contractor. Contractor shall not create, permit or suffer any mechanic's or materialmen's
liens of any kind or nature to be created or enforced against any property of Railroad for any such work
performed. Contractor shall indemnify and hold harmless Railroad from and against any and all liens,
claims, demands, costs or expenses of whatsoever nature in any way connected with or growing out of
such work done, labor performed, or materials furnished. If Contractor fails to promptly cause any lien to
Supplemental Agreement - Union Pacifc Railroad Company Page 12 of 18
Resolution No. 2020-41
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_____________________
be released of record, Railroad may, at its election, discharge the lien or claim of lien at Contractor's
expense.
Section 5. PROTECTION OF FIBER OPTIC CABLE SYSTEMS.
A. Fiber optic cable systems may be buried on Railroad's property. Protection of the fiber
optic cable systems is of extreme importance since any break could disrupt service to users resulting in
business interruption and loss of revenue and profits. Contractor shall telephone Railroad during normal
business hours (7:00 a.m. to 9:00 p.m. Central Time, Monday through Friday, except holidays) at
1-800-336-9193 (also a 24-hour, 7-day number for emergency calls) to determine if fiber optic cable is
buried anywhere on Railroad's property to be used by Contractor. If it is, Contractor will telephone the
telecommunications company(ies) involved, make arrangements for a cable locator and, if applicable, for
relocation or other protection of the fiber optic cable. Contractor shall not commence any work until all
such protection or relocation (if applicable) has been accomplished.
B. In addition to other indemnity provisions in this Agreement, Contractor shall indemnify,
defend and hold Railroad harmless from and against all costs, liability and expense whatsoever
(including, without limitation, attorneys' fees, court costs and expenses) arising out of any act or omission
of Contractor, its agents and/or employees, that causes or contributes to (1) any damage to or destruction
of any telecommunications system on Railroad's property, and/or (2) any injury to or death of any person
employed by or on behalf of any telecommunications company, and/or its contractor, agents and/or
employees, on Railroad's property. Contractor shall not have or seek recourse against Railroad for any
claim or cause of action for alleged loss of profits or revenue or loss of service or other consequential
damage to a telecommunication company using Railroad's property or a customer or user of services of
the fiber optic cable on Railroad's property.
Section 6. PERMITS - COMPLIANCE WITH LAWS.
In the prosecution of the work covered by this Agreement, Contractor shall secure any and all
necessary permits and shall comply with all applicable federal, state and local laws, regulations and
enactments affecting the work including, without limitation, all applicable Federal Railroad
Administration regulations.
Section 7. SAFETY.
A. A. Safety of personnel, property, rail operations and the public is of paramount importance
in the prosecution of the work performed by Licensee or its contractor. Licensee shall be responsible for initiating,
maintaining and supervising all safety, operations and programs in connection with the work. Licensee and its
contractor shall at a minimum comply with Licensor's then current safety standards located at
www.up.com/cs/groups/public/@uprr/@suppliers/documents/up_pdf_nativedocs/pdf_up_supplier_safety_req.pdf
B. to ensure uniformity with the safety standards followed by Licensor's own forces. As a part of
Licensee's safety responsibilities, Licensee shall notify Licensor if it determines that any of Licensor's safety
standards are contrary to good safety practices. Licensee and its contractor shall furnish copies of each of its
employees before they enter the job site.
B. Without limitation of the provisions of paragraph A above, Contractor shall keep the job
site free from safety and health hazards and ensure that its employees are competent and adequately
trained in all safety and health aspects of the job.
C. Contractor shall have proper first aid supplies available on the job site so that prompt first
aid services may be provided to any person injured on the job site. Contractor shall promptly notify
Supplemental Agreement - Union Pacifc Railroad Company Page 13 of 18
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_____________________
Railroad of any U.S. Occupational Safety and Health Administration reportable injuries. Contractor shall
have a nondelegable duty to control its employees while they are on the job site or any other property of
Railroad, and to be certain they do not use, be under the influence of, or have in their possession any
alcoholic beverage, drug or other substance that may inhibit the safe performance of any work.
D. If and when requested by Railroad, Contractor shall deliver to Railroad a copy of
Contractor's safety plan for conducting the work (the "Safety Plan"). Railroad shall have the right, but not
the obligation, to require Contractor to correct any deficiencies in the Safety Plan. The terms of this
Agreement shall control if there are any inconsistencies between this Agreement and the Safety Plan.
Section 8. INDEMNITY.
A. To the extent not prohibited by applicable statute, Contractor shall indemnify, defend and
hold harmless Railroad, its affiliates, and its and their officers, agents and employees ("Indemnified
Parties") from and against any and all loss, damage, injury, liability, claim, demand, cost or expense
(including, without limitation, attorney's, consultant's and expert's fees, and court costs), fine or penalty
(collectively, "Loss") incurred by any person (including, without limitation, any Indemnified Party,
Contractor, or any employee of Contractor or of any Indemnified Party) arising out of or in any manner
connected with (i) any work performed by Contractor, or (ii) any act or omission of Contractor, its
officers, agents or employees, or (iii) any breach of this agreement by Contractor.
B. The right to indemnity under this Section 8 shall accrue upon occurrence of the event
giving rise to the Loss, and shall apply regardless of any negligence or strict liability of any Indemnified
Party, except where the Loss is caused by the sole active negligence of an Indemnified Party as
established by the final judgment of a court of competent jurisdiction. The sole active negligence of any
Indemnified Party shall not bar the recovery of any other Indemnified Party.
C. Contractor expressly and specifically assumes potential liability under this Section 8 for
claims or actions brought by Contractor's own employees. Contractor waives any immunity it may have
under worker's compensation or industrial insurance acts to indemnify Railroad under this Section 8.
Contractor acknowledges that this waiver was mutually negotiated by the parties hereto.
D. No court or jury findings in any employee's suit pursuant to any worker's compensation
act or the Federal Employers' Liability Act against a party to this Agreement may be relied upon or used
by Contractor in any attempt to assert liability against Railroad.
E. The provisions of this Section 8 shall survive the completion of any work performed by
Contractor or the termination or expiration of this Agreement. In no event shall this Section 8 or any
other provision of this Agreement be deemed to limit any liability Contractor may have to any
Indemnified Party by statute or under common law.
Section 9. RESTORATION OF PROPERTY.
In the event Railroad authorizes Contractor to take down any fence of Railroad or in any manner
move or disturb any of the other property of Railroad in connection with the work to be performed by
Contractor, then in that event Contractor shall, as soon as possible and at Contractor's sole expense,
restore such fence and other property to the same condition as the same were in before such fence was
taken down or such other property was moved or disturbed. Contractor shall remove all of Contractor's
tools, equipment, rubbish and other materials from Railroad's property promptly upon completion of the
work, restoring Railroad's property to the same state and condition as when Contractor entered thereon.
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_____________________
Section 10. WAIVER OF DEFAULT.
Waiver by Railroad of any breach or default of any condition, covenant or agreement herein
contained to be kept, observed and performed by Contractor shall in no way impair the right of Railroad
to avail itself of any remedy for any subsequent breach or default.
Section 11. MODIFICATION - ENTIRE AGREEMENT.
No modification of this Agreement shall be effective unless made in writing and signed by
Contractor and Railroad. This Agreement and the exhibits attached hereto and made a part hereof
constitute the entire understanding between Contractor and Railroad and cancel and supersede any prior
negotiations, understandings or agreements, whether written or oral, with respect to the work to be
performed by Contractor.
Section 12. ASSIGNMENT - SUBCONTRACTING.
Contractor shall not assign or subcontract this Agreement, or any interest therein, without the
written consent of the Railroad. Contractor shall be responsible for the acts and omissions of all
subcontractors, and shall require all subcontractors to maintain the insurance coverage required to be
maintained by Contractor as provided in this Agreement, and to indemnify Contractor and Railroad to the
same extent as Railroad is indemnified by Contractor under this Agreement.
Supplemental Agreement - Union Pacifc Railroad Company Page 15 of 18
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_____________________
Form Approved, AVP-Law
09/01/2018
EXHIBIT C
Union Pacific Railroad Company
Insurance Provisions For
Contractor’s Right of Entry Agreement
Contractor shall, at its sole cost and expense, procure and maintain during the course of the Project and
until all Project work on Railroad’s property has been completed and the Contractor has removed all
equipment and materials from the Railroad’s property and has cleaned and restored Railroad’s property to
Railroad’s satisfaction, the following insurance coverage:
A. Commercial General Liability insurance. Commercial general liability (CGL) with a limit of
not less than $2,000,000 each occurrence and an aggregate limit of not less than $4,000,000.
CGL insurance must be written on ISO occurrence form CG 00 01 12 04 (or a substitute form
providing equivalent coverage).
The policy must also contain the following endorsement, which must be stated on the certificate
of insurance:
Contractual Liability Railroads ISO form CG 24 17 10 01 (or a substitute form providing
equivalent coverage) showing “Union Pacific Railroad Company Property” as the Designated Job
Site.
B. Business Automobile Coverage insurance. Business auto coverage written on ISO form CA 00
01 (or a substitute form providing equivalent liability coverage) with a combined single limit of
not less $2,000,000 for each accident.
The policy must contain the following endorsements, which must be stated on the certificate of
insurance:
Coverage For Certain Operations In Connection With Railroads ISO form CA 20 70 10 01 (or substitute
form providing equivalent coverage) showing “Union Pacific Property” as the Designated Job Site.
Motor Carrier Act Endorsement – Hazardous materials clean up (MCS-90) if required by law.
C. Workers Compensation and Employers Liability insurance. Coverage must include but not be
limited to:
Contractor’s statutory liability under the workers’ compensation laws of the state(s) affected by this
Agreement.
Employers’ Liability (Part B) with limits of at least $500,000 each accident, $500,000 disease policy limit
$500,000 each employee.
Supplemental Agreement - Union Pacifc Railroad Company Page 16 of 18
Resolution No. 2020-41
Page 18 of 20
_____________________
If Contractor is self-insured, evidence of state approval and excel workers compensation coverage
must be provided. Coverage must include liability arising out of the U.S. Longshoremen’s and
Harbor Workers’ Act, the Jones Act, and the Outer Continental Shelf Land Act, if applicable.
The policy must contain the following endorsement, which must be stated on the certificate of
insurance:
Alternate Employer endorsement ISO form WC 00 03 01 A (or a substitute form providing equivalent
coverage) showing Railroad in the schedule as the alternate employer (or a substitute form providing
equivalent coverage).
D. Railroad Protective Liability insurance. Contractor must maintain Railroad Protective Liability
insurance written on ISO occurrence form CG 00 35 12 04 (or a substitute form providing
equivalent coverage) on behalf of Railroad as named insured, with a limit of not less than
$2,000,000 per occurrence and an aggregate of $6,000,000. A binder stating the policy is in place
must be submitted to Railroad before the work may be commenced and until the original policy is
forwarded to Railroad.
E. Umbrella or Excess insurance. If Contractor utilizes umbrella or excess policies, these policies
must “follow form” and afford no less coverage than the primary policy.
F. Pollution Liability insurance. Pollution Liability coverage must be included when the scope of
the work as defined in the Agreement includes installation, temporary storage, or disposal of any
“hazardous” material that is injurious in or upon land, the atmosphere, or any watercourses ; or
may cause bodily injury at any time.
Pollution liability coverage must be written on ISO form Pollution Liability Coverage Form
Designated Sites CG 00 39 12 04 (or a substitute form providing equivalent liability coverage),
with limits of at least $5,000,000 per occurrence and an aggregate limit of $10,000,000.
If the scope of work as defined in this Agreement includes the disposal of any hazardous or non-
hazardous materials from the job site, Contractor must furnish to Railroad evidence of pollution
legal liability insurance maintained by the disposal site operator for losses arising form the
insured facility accepting the materials, with coverage in minimum amounts of $1,000,000 per
loss, and an annual aggregate of $2,000,000.
Other Requirements
G. All policy(ies) required above (except worker’s compensation and employers liability) must
include Railroad as “Additional Insured” using ISO Additional Insured Endorsements CG 20 26,
and CA 20 48 (or substitute forms providing equivalent coverage). The coverage provided to
Railroad as additional insured shall, to the extent provided under ISO Additional Insured
Endorsement CG 20 26, and CA 20 48 provide coverage for Railroad’s negligence whether sole
or partial, active or passive, and shall not be limited by Contractor’s liability under the indemnity
provisions of this Agreement.
H. Punitive damages exclusion, if any, must be deleted (and the deletion indicated on the certificate
of insurance), unless the law governing this Agreement prohibits all punitive damages that might
arise under this Agreement.
Supplemental Agreement - Union Pacifc Railroad Company Page 17 of 18
Resolution No. 2020-41
Page 19 of 20
_____________________
I. Contractor waives all rights of recovery, and its insurers also waive all rights of subrogation of
damages against Railroad and its agents, officers, directors and employees. This waiver must be
stated on the certificate of insurance.
J. Prior to commencing the work, Contractor shall furnish Railroad with a certificate(s) of
insurance, executed by a duly authorized representative of each insurer, showing compliance with
the insurance requirements in this Agreement.
K. All insurance policies must be written by a reputable insurance company acceptable to Railroad
or with a current Best’s Insurance Guide Rating of A- and Class VII or better, and authorized to
do business in the state(s) in which the work is to be performed.
L. The fact that insurance is obtained by Contractor or by Railroad on behalf of Contractor will not
be deemed to release or diminish the liability of Contractor, including, without limitation, liability
under the indemnity provisions of this Agreement. Damages recoverable by Railroad from
Contractor or any third party will not be limited by the amount of the required insurance
coverage.
Supplemental Agreement - Union Pacifc Railroad Company Page 18 of 18
Resolution No. 2020-41
Page 20 of 20
_____________________
City Council Agenda Item Report
Agenda Item No. COV-395-2020
Submitted by: Scott Williams
Submitting Department: Finance/Treasury
Meeting Date: November 3, 2020
SUBJECT
Addendum to Professional Auditing Services Agreement with White Nelson Diehl Evans, LLP
Recommendation:
Approve and authorize the City Administrator to execute an addendum, in substantially the same form as
submitted, to the current agreement with White Nelson Diehl Evans, LLP for professional audit services
to reflect a name change for the firm.
Background:
On May 5, 2020, the City Council authorized the City Administrator to execute a professional services
agreement for a not-to-exceed amount of $330,375 with the public accounting firm White Nelson Diehl
Evans LLC (WNDE) to perform annual audits of the financial statements of the City of Vernon and its
Enterprise Funds.
Recently, White Nelson Diehl Evans LLC advised the City of its intention to join the national professional
services firm CLA (CliftonLarson Allen) on November 1, 2020. The service to the City of Vernon will
continue to be provided by the partners, managers and staff from the Irvine office. Services from CLA
(formerly White Nelson Diehl Evans LLC) will continue per the scope and schedule of fees per the current
three-year agreement.
The proposed Addendum to the WNDE Services Agreement acknowledges the service provider's name
change and advises that all terms and conditions of the existing agreement will remain unchanged. The
City Attorney's Office has reviewed and approved the addendum as to form.
Fiscal Impact:
There is no fiscal impact associated with this report.
Attachments:
1. Addendum to WNDE Contract for Professional Services
2. Notice of WNDE Name Change
Addendum to Contract for Professional Services
with White Nelson Diehl Evans LLP
Pursuant to the terms of the combination of CliftonLarsonAllen LLP ("CLA") with White
Nelson Diehl Evans LLP ("WNDE") effective November 1, 2020, CLA has legally assumed and
will fully perform all future (but not prior) contractual obligations under existing agreements
between WNDE and WNDE's clients, including WNDE's existing agreement(s) with the City of
Vernon, a California charter City and California municipal corporation (“City”). For purposes of
such future obligations, only the service provider's name will be changed from WNDE to
CliftonlarsonAllen LLP.
All terms and conditions in the original WNDE contract will remain unchanged.
Any future payments under this contract should be made payable to CliftonlarsonAllen and
mailed to the same address: 2875 Michelle Drive, Suite 300, Irvine, CA 92606.
Please sign below as acknowledgement and agreement with this addendum.
White Nelson Diehl Evans LLP, Partner, and
Current CliftonLarsonAllen Principal
Robert J. Callanan, Partner
_________
Date
City of Vernon
Carlos R. Fandino, Jr. City Administrator
________
Date
ATTEST
Lisa Pope, City Clerk
APPROVED AS TO FORM
Arnold M. Alvarez-Glasman, Interim City Attorney
2875 Michelle Drive, Suite 300 | Irvine, California 92606 | WNDECPA.com | 714.978.1300
October 14, 2020
White Nelson Diehl Evans, LLP (WNDE) intends to join national professional services firm CLA (Clifton
Larson Allen) on November 1, 2020.
As one of the nation’s leading professional services firm, CLA has retained the agility to serve clients of
all sizes and locations, while expanding service offerings to clients.
CLA has a national presence in the state and local government sector and CLA has 120 locations, 6200
people and serves approximately 3,400 governmental entities and is the largest Single Audit provider in the
nation.
The service to your local government will continue to be provided by the partners, managers and staff from
our Irvine office. It is our intention that this transition will be seamless as it relates to the services we are
currently providing to your local government.
City Council Agenda Item Report
Agenda Item No. COV-394-2020
Submitted by: Scott Williams
Submitting Department: Finance/Treasury
Meeting Date: November 3, 2020
SUBJECT
Services Agreement with BLX Group LLC for Financial Advisory Services
Recommendation:
Approve and authorize the City Administrator to execute a services agreement with BLX Group LLC for
Financial Advisory Services, in substantially the same form as submitted, in an amount not to exceed
$600,000, for a three-year agreement effective November 3, 2020 for financial advisory services.
Background:
The Finance Department is requesting approval to award a Services Agreement to BLX Group LLC
(BLX) for ongoing general consulting, planning and advisory services; services directly related to
debt/derivative/investment transactions; executing a debt strategy, and regulatory, management, and
oversight services. BLX is a registered municipal advisor offering financial advisory, interest rate swap
advisory, and post debt issuance compliance services associated with requirements imposed by the IRS
and SEC. As an independent and unbiased advisor, BLX's primary objective is to advocate for and
educate while assisting in structuring City financing to achieve low cost of capital at the terms best suited
to City’s debt policies and strategic objectives.
In order to select an appropriate firm to provide the aforementioned services, a Request for Proposals
(RFP) was issued on August 25, 2020 via the City website and sent out to ten (10) firms known to
provide Financial Advisory Services to California cities and who were known to have experience in
Municipal Bond issuances. The deadline to submit proposals was September 8, 2020 and three (3)
proposal were received. The three (3) firms that responded were BLX Group LLC, PFM Financial
Advisory LLC, and Urban Futures Inc. Each firm's RFP response was examined on the basis of four
weighted RFP criterion of: Cost and Fees 30%, References 20%, Qualifications 40%, and
Responsiveness 10%.
A review panel evaluated the three (3) proposals received from qualified respondents in order to
determine the vendor best suited to provide the services requested. A comprehensive, fair, and impartial
evaluation of proposals was conducted in accordance with the specifications set forth within the RFP
document. Established criteria were used in reviewing and comparing the proposals to determine the
most suitable firm. At the conclusion of the assessment, it was determined that BLX was the most
compatible choice for the award of the services agreement for Financial Advisory Services. BLX was the
top ranked respondent due to their years of experience in the industry, exceptional qualifications, and
their ability to offer quality service at a competitive price. It is, therefore, recommended that City Council
approve and authorize the City Administrator to execute a services agreement with BLX. The proposed
agreement has been reviewed and approved by the City Attorney' s Office.
Fiscal Impact:
The total not to exceed value of the agreement with BLX Group LLC is $200,000 per year for a
three-year term, equating to a total contract value of $600,000. These costs are variable (hourly per the
scope of the agreement) and based on the estimated hours per year for compliance reporting for existing
bonds. If new bonds are issued by the City, an amendment may be required based on bond issuance
costs. If necessary, these costs would be included in the cost of issuance at the time of a new bond
and/or refunding of an existing bond. Funds for financial advisory services have been budgeted under
Financial Advisory Services account 055.9000.595200 and will be budgeted in subsequent years.
Attachments:
1. Financial Advisory Services Agreement with BLX Group LLC
1
SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND BLX GROUP LLC
FOR FINANCIAL ADVISORY SERVICES
COVER PAGE
Contractor: BLX Group LLC
Responsible Principal of Contractor: Craig Underwood, President
Notice Information - Contractor: BLX Group LLC
777 S. Figueroa Street, Suite 3200
Los Angeles, CA 90017
Attention: Craig Underwood, President
Phone: (213)612-2463
Email: cunderwood@blxgroup.com
Notice Information - City: City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attention: Scott Williams, Finance Director
Telephone: (323) 583-8811 ext. 849
Email: swilliams@ci.vernon.ca.us
Commencement Date: November 3, 2020
Termination Date: November 2, 2023
Consideration: Total not to exceed $200,000 per fiscal year
or a grand total of $600,000 for three years
(includes all applicable sales tax); and more
particularly described in Exhibit B
Records Retention Period Three (3) years, pursuant to Section 11.20
2
SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND BLX GROUP LLC FOR
FINANCIAL ADVISORY SERVICES
This Contract is made between the City of Vernon ("City"), a California charter City and
California municipal corporation (“City”), and BLX Group LLC, a limited liability company
(“Contractor”).
The City and Contractor agree as follows:
1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to
perform the services as hereinafter set forth as authorized by the City Council on November
3, 2020.
2.0 SCOPE OF SERVICES.
2.1 Contractor shall perform all work necessary to complete the services set
forth in the City’s Request for Proposals issued on or about August 25, 2020 and titled
Financial Advisory Services, and Contractor's proposal to the City ("Proposal") dated
September 8, 2020, Exhibit “A”, a copy which is attached to and incorporated into this Contract
by reference.
2.2 All services shall be performed to the satisfaction of City.
2.3 All services shall be performed in a competent, professional, and
satisfactory manner in accordance with the prevailing industry standards for such services.
3.0 PERSONNEL.
3.1 Contractor represents that it employs, or will employ, at its own expense,
all personnel required to perform the services under this Contract.
3.2 Contractor shall not subcontract any services to be performed by it under
this Contract without prior written approval of City.
3.3 All of the services required hereunder will be performed by Contractor or
by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be
fully qualified and authorized or permitted under State and local law to perform such services
and shall be subject to approval by the City.
4.0 TERM.
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The term of this Contract shall commence on November 3, 2020, and it shall continue until
November 2, 2023, unless terminated at an earlier date pursuant to the provisions thereof.
5.0 COMPENSATION AND FEES.
5.1 Contractor has established rates for the City of Vernon which are
comparable to and do not exceed the best rates offered to other governmental entities in and
around Los Angeles County for the same services. For satisfactory and timely performance of
the services, the City will pay Contractor in accordance with the payment schedule set fort h in
Exhibit “B” attached hereto and incorporated herein by reference.
5.2 Contractor's grand total compensation for the entire term of this Contract,
shall not exceed $200,000 per fiscal year or a grand total of $600,000 for three years, without
the prior authorization of the City, as appropriate, and written amendment of this Contract.
5.3 Contractor shall, at its sole cost and expense, furnish all necessary and
incidental labor, material, sup plies, facilities, equipment, and transportation which may be
required for furnishing services pursuant to this Contract. Materials shall be of the highest
quality. The above Contract fee shall include all staff time and all clerical, administrative,
overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related
costs and expenses.
5.4 City shall reimburse Contractor only for those costs or expenses
specifically approved in this Agreement, or specifically approved in writi ng in advance by City.
Unless otherwise approved, such costs shall be limited and include nothing more than the
following costs incurred by Contractor:
5.4.1 The actual costs of subcontractors for performance of any of the
services that Contractor agrees to render pursuant to this Agreement, which have been
approved in advance by City and awarded in accordance with this Agreement.
5.4.2 Approved reproduction charges.
4
5.4.3 Actual costs and/or other costs and/or payments specifically
authorized in advance in writing and incurred by Contractor in the performance of this
Agreement.
5.5 Contractor shall not receive any compensation for extra work performed
without the prior written authorization of City. As used herein, “extra work” means any work that
is determined by City to be necessary for the proper completion of the Project, but which is not
included within the Scope of Services and which the parties did not reasonably anticipate would
be necessary at the time of execution of this Agreement. Compensation for any authorized
extra work shall be paid in accordance with the payment schedule as set forth in Exhibit “B,” if
the extra work has been approved by the City.
5.6 Licenses, Permits, Fees, and Assessments. Contractor shall obtain, at
Contractor’s sole cost and expense, such licenses, permits, and approvals as may be required
by law for the performance of the services required by this Agreement. Contractor shall have the
sole obligation to pay for any fees, assessments, and taxes, plus applicable penalti es and
interest, which may be imposed by law and which arise from or are necessary for the
performance of the Services by this Agreement.
6.0 PAYMENT.
6.1 As scheduled services are completed, Contractor shall submit to the
City an invoice for the services completed, authorized expenses, and authorized extra work
actually performed or incurred according to said schedule.
6.2 Each such invoice shall state the basis for the amount invoiced, including
a detailed description of the services completed, the number of hours spent, reimbursable
expenses incurred and any extra work performed.
6.3 Contractor shall also submit a progress report with each invoice that
describes in reasonable detail the services and the extra work, if any, performed in the
immediately preceding calendar month.
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6.4 Contractor understands and agrees that invoices which lack sufficient
detail to measure performance will be returned and not processed for payment.
6.5 City will pay Contractor the amount invoiced within thirty (30) days after
the City approves the invoice.
6.6 Payment of such invoices shall be payment in full for all services,
authorized costs, and authorized extra work covered by that invoice.
7.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be
reasonably necessary for Contractor to perform its services; and will give any required decisions
as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's
services.
8.0 COORDINATION OF SERVICES. Contractor agrees to work closely with City
staff in the performance of Services and shall be available to City’s staff, consultants, and other
staff at all reasonable times.
9.0 INDEMNITY. Contractor agrees to indemnify City, its officers, elected officials,
employees and agents against, and will hold and save each of them harmless from, any and all
actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations,
errors, omissions or liabilities (herein “claims or liabilities”), including but not limited to
professional negligence, that may be asserted or claimed by any person, firm or entity arising
out of or in connection with the work, operations or activities of Contractor, its agents,
employees, subcontractors, or invitees, provided for herein , or arising from the acts or
omissions of Contractor hereunder, or arising from Contractor’s performance of or failure to
perform any term, provision, covenant or condition of this Agreement, except to the extent such
claims or liabilities arise from the gross neglige nce or willful misconduct of City, its officers,
elected officials, agents or employees.
10.0 INSURANCE. Contractor shall, at its own expense, procure and maintain
policies of insurance of the types and in the amounts set forth below, for the duration o f the
Contract, including any extensions thereto. The policies shall state that they afford primary
6
coverage.
i. Automobile Liability with minimum limits of at least $1,000,000 combined single
limit, including owned, hired, and non -owned liability coverage.
ii. Contractor agrees to subrogate automobile liability resulting from performance
under this agreement by agreeing to defend, indemnify and hold harmless, the City, and its
respective employees, agents, and City Council from and against all claims, li abilities, suits,
losses, damages, injuries and expenses, including all costs and reasonable attorney’s fees
(“Claims”), which are attributable to any act or omission by the City under the performance of
the services.
iii. General Liability with minimum limits of at least $1,000,000 per occurrence and
$2,000,000 aggregate written on an Insurance Services Office (ISO) Comprehensive General
Liability "occurrence" form or its equivalent for coverage on an occurrence basis.
Premises/Operations and Personal Injury coverage is required. The City of Vernon, its
directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the
policy as additional insureds as respects liability arising out of the Contractor's performance of
this Contract.
(1) If Contractor employs other contractors as part of the services rendered,
Contractor's Protective Coverage is required. Contractor may include all
subcontractors as insureds under its own policy or shall furnish separate
insurance for each subcontractor, meeting the requirements set forth
herein.
(2) Contractor agrees to subrogate General Liability resulting from
performance under this agreement by agreeing to defend, indemnify and
hold harmless, the City, and its respective employees, agents, and C ity
Council from and against all claims, liabilities, suits, losses, damages,
injuries and expenses, including all costs and reasonable attorney’s fees
(“Claims”), which are attributable to any act or omission by the City under
7
the performance of the services.
iv. Professional Errors and Omissions coverage in a sum of at least $1,000,000,
where such risk is applicable. Applicable aggregates must be identified and claims history
provided to determine amounts remaining under the aggregate. Contractor shall m aintain such
coverage for at least one (1) year after the termination of this Agreement.
v. Contractor shall comply with the applicable sections of the California Labor Code
concerning workers' compensation for injuries on the job. In addition, Contractor shall require
each subcontractor to similarly maintain workers’ compensation insurance in accordance with
the laws for California for all of the subcontractor’s employees. Compliance is accomplished in
one of the following manners:
(1) Provide copy of permissive self-insurance certificate approved by the
State of California; or
(2) Secure and maintain in force a policy of workers' compensation insurance
with statutory limits and Employer's Liability Insurance with a minimal limit
of $1,000,000 per accident. The policy shall be endorsed to waive all
rights of subrogation against City, its directors, commissioners, officers,
employees, and volunteers for losses arising from performance of this
Contract; or
(3) Provide a "waiver" form certifying that no emplo yees subject to the Labor
Code's Workers' Compensation provision will be used in performance of
this Contract.
vi. Each insurance policy included in this clause shall be endorsed to state that
coverage shall not be cancelled except after thirty (30) days' prior written notice to City.
vii. Insurance shall be placed with insurers with a Best's rating of no less than A -VIII.
viii. Prior to commencement of performance, Contractor shall furnish City with a
certificate of insurance for each policy. Each certificate is to be signed by a person authorized
by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by
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City. City may require complete, certified copies of any or all policies at any time.
ix. Failure to maintain required insurance at all times shall constitute a default and
material breach. In such event, Contractor shall immediately notify City and cease all
performance under this Contract until further directed by the City. In the absence of satisfactory
insurance coverage, City may, at its option: (a) procure insurance with collection rights for
premiums, attorney's fees and costs against Contractor by way of set -off or recoupment from
sums due to Contractor, at City's option; (b) immediately terminate this Co ntract and seek
damages from the Contract resulting from said breach; or (c) self -insure the risk, with all
damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees
and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due
to Contractor.
11.0 GENERAL TERMS AND CONDITIONS.
11.1 INDEPENDENT CONTRACTOR.
11.1.1 It is understood that in the performance of the services herein
provided for, Contractor shall be, and is, an independent contractor, and is not an agent , officer
or employee of City and shall furnish such services in its own manner and method except as
required by this Contract, or any applicable statute, rule, or regulation. Further, Contractor has
and shall retain the right to exercise full control over the employment, direction, compensation
and discharge of all persons employed by Contractor in the performance of the services
hereunder. City assumes no liability for Contractor’s actions and performance, nor assumes
responsibility for taxes, bonds, payments, or other commitments, implied or explicit, by or for
Contractor. Contractor shall be solely responsible for, and shall indemnify, defend and save
City harmless from all matters relating to the payment of its employees, subcontractors and
independent contractors, including compliance with social security, withholding and all other
wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.
11.1.2 Contractor acknowledges that Contractor and any subcontractors,
9
agents or employees employed by Contractor shall not, under any circumstances, be
considered employees of the City, and that they shall not be entitled to any of the benefits or
rights afforded employees of City, including, but not limited to, sick leave, vacation leave,
holiday pay, Public Employees Retirement System benefits, or health, life, dental, long -term
disability or workers' compensation insurance benefits.
11.2 CONTRACTOR NOT AGENT. Except as the City may authorize
in writing, Contractor and its subcontractors shall have no authority, express or implied, to act
on behalf of or bind the City in any capacity whatsoever as agents or otherwise.
11.3 OWNERSHIP OF WORK. All documents and materials furnished by the
City to Contractor shall remain the property of the City and shall be returned to the City upon
termination of this Agreement. All reports, drawings, plans, specifications, computer tapes,
floppy disks and printouts, studies, memoranda, comput ation sheets, and other documents
prepared by Contractor in furtherance of the work shall be the sole property of City and shall be
delivered to City whenever requested at no additional cost to the City. Contractor shall keep
such documents and materials on file and available for audit by the City for at least three (3)
years after completion or earlier termination of this Contract. Contractor may make duplicate
copies of such materials and documents for its own files or for such other purposes as may be
authorized in writing by the City.
11.4 CORRECTION OF WORK. Contractor shall promptly correct any
defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without
additional cost to the City. The performance or acceptance of services furnished by Contractor
shall not relieve the Contractor from the obligation to correct subsequently discovered defects,
inaccuracy, or incompleteness.
11.5 RESPONSIBILITY FOR ERRORS. Contractor shall be responsible for its
work and results under this Agreement. Contractor, when requested, shall furnish clarification
and/or explanation as may be required by the City, regarding any services rendered under this
Agreement at no additional cost to City. In the event that an error or omission attr ibutable to
10
Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design
drawings, estimates and other Contractor professional services necessary to rectify and correct
the matter to the sole satisfaction of City and to partic ipate in any meeting required with regard
to the correction.
11.6 WAIVER. The City's waiver of any term, condition, breach, or default of
this Contract shall not be considered to be a waiver of any other term, condition, default or
breach, nor of a subsequent breach of the one waived. The delay or failure of either party at any
time to require performance or compliance by the other of any of its obligations or agreements
shall in no way be deemed a waiver of those rights to require such performance or c ompliance.
No waiver of any provision of this Agreement shall be effective unless in writing and signed by a
duly authorized representative of the party against whom enforcement of a waiver is sought.
11.7 SUCCESSORS. This Contract shall inure to the benefit of, and shall be
binding upon, the parties hereto and their respective heirs, successors , and/or assigns.
11.8 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract
or any rights hereunder without the prior written consent of the Cit y and approval by the City
Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or
transfer shall be null and void and shall constitute a material breach by the Contractor of its
obligations under this Contract. No assignment shall release the original parties from their
obligations or otherwise constitute a novation.
11.9 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal,
State, County and City laws, ordinances, rules and regulations, which are, as amend ed from
time to time, incorporated herein and applicable to the performance hereof, including but without
limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of
this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies.
Further, if the Contractor performs any work knowing it to be contrary to such laws, rules, and
regulations Contractor shall be solely responsible for all costs arising therefrom.
11.10 ATTORNEY'S FEES. If any action at law or in equity is brought to
11
enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable
attorney's fees, costs, and necessary disbursements in addition to any other relief to which such
party may be entitled.
11.11 INTERPRETATION.
11.11.1 Applicable Law. This Contract shall be deemed a contract and
shall be governed by and construed in accordance with the laws of the State of California.
Contractor agrees that the State and Federal courts which sit in the State of California shall
have exclusive jurisdiction over all controversies and disputes arising hereunder, and submits to
the jurisdiction thereof.
11.11.2 Entire Agreement. This Contract, including any exhibits
attached hereto, constitutes the entire agreement and understanding between the parties
regarding its subject matter and supersedes all prior or contemporaneous negotiations,
representations, understandings, correspondence, documentation , and agreements (written or
oral).
11.11.3 Written Amendment. This Contract may only be changed by
written amendment signed by Contractor and the City Administrator or other authorized
representative of the City, subject to any requisite authorization by the City Council. Any oral
representations or modifications concerning this Contract shall be of no force or effect.
11.11.4 Severability. If any provision in this Contract is held by any
court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be
deemed severed from this Contract, and the remaining provisions shall nevertheless continue in
full force and effect as fully as though such invalid, illegal, or unenforceable portion had never
been part of this Contract.
11.11.5 Order of Precedence. In case of conflict between the terms of
this Contract and the terms contained in any document attached as an Exhibit or otherwise
incorporated by reference, the terms of this Contract shall strictly prevail. The terms of the City’s
Request for Proposals shall control over the Contractor’s Proposal.
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11.11.6 Duplicate Originals. There shall be two (2) fully signed copies
of this Contract, each of which shall be deemed an original.
11.11.7 Construction. In the event an ambiguity or question of intent
or interpretation arises with respect to this Agreement, this Agreement shall be construed as if
drafted jointly by the parties and in accordance with its fair meaning. There shall be no
presumption or burden of proof favoring or disfavoring any party b y virtue of the authorship of
any of the provisions of this Agreement.
11.1 2 TIME OF ESSENCE. Time is strictly of the essence of this contract and
each and every covenant, term , and provision hereof.
11.13 AUTHORITY OF CONTRACTOR. The Contractor hereby represents
and warrants to the City that the Contractor has the right, power, legal capacity, and authority to
enter into and perform its obligations under this Contract, and its execution of this Contract has
been duly authorized.
11.14 ARBITRATION OF DISPUTES. Any dispute for under $25,000
arising out of or relating to the negotiation, construction, performance, non -performance,
breach, or any other aspect of this Contract, shall be settled by binding arbitration in accordance
with the Commercial Rules of the American Arb itration Association at Los Angeles, California
and judgment upon the award rendered by the Arbitrators may be entered in any court having
jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of
any claim filed or required to be filed against the City and reserves the right to conduct full
discovery.
11.1 5 NOTICES. Any notice or demand to be given by one party to the other
must be given in writing and by personal delivery or prepaid first -class, registered or certified
mail, addressed as follows. Notice simply to the City of Vernon or any other City department is
not adequate notice.
If to the City:
City of Vernon
Attention: Scott Williams, Finance Director
4305 Santa Fe Avenue
13
Vernon, CA 90058
If to the Contractor
BLX Group LLC
Attention: Craig Underwood, President
777 S. Figueroa Street, Suite 3200
Los Angeles, CA 90017
Any such notice shall be deemed to have been given upon delivery , if personally
delivered, or, if mailed, upon receipt , or upon expiration of three (3) business days from the date
of posting, whichever is earlier. Either party may change the address at which it desires to
receive notice upon giving written notice of su ch request to the other party.
11.1 6 NO THIRD PARTY RIGHTS. This Agreement is entered into for the sole
benefit of City and Contractor and no other parties are intended to be direct or incidental
beneficiaries of this Agreement and no third party shall h ave any right or remedy in, under, or to
this Agreement.
11.1 7 TERMINATION FOR CONVENIENCE (Without Cause). City may
terminate this Contract in whole or in part at any time, for any cause or without cause, upon
fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City
for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a
prorated amount based on the services satisfactorily completed and accepted prior to the
effective date of termination. Such payment shall be Contractor's exclusive remedy for
termination without cause.
11.18 DEFAULT. In the event either party materially defaults in its obligations
hereunder, the other party may declare a default and terminate this Contract by written notice to
the defaulting party. The notice shall specify the basis for the default. The Contract shall
terminate unless such default is cured before the effective date of termination stated in such
notice, which date shall be no sooner than ten (10) days after the date of the notice. In case of
default by Contractor, the City reserves the right to procure the goods or services from other
sources and to hold the Contractor responsible for any excess costs occasioned to the City
14
thereby. Contractor shall not be held accountable for additional costs incurred due to delay or
default as a result of Force Majeure. Contractor must notify the City immediately upon knowing
that non-performance or delay will apply to this Contract as a result of F orce Majeure. At that
time Contractor is to submit in writing a Recovery Plan for this Contract. If the Recovery Plan is
not acceptable to the City or not received within 10 days of the necessary notification of Force
Majeure default, then the city may can cel this order in its entirety at no cost to the City, owing
only for goods and services completed to that point.
11.19 TERMINATION FOR CAUSE. Termination for cause shall relieve the
terminating party of further liability or responsibility under this Contract, including the payment of
money, except for payment for services satisfactorily and timely performed prior to the service of
the notice of termination, and except for reimbursement of (1) any payments made by the City
for service not subsequently performed in a timely and satisfactory manner, and (2) costs
incurred by the City in obtaining substitute performance. If this Agreement is terminated as
provided herein, City may require , at no additional cost to City, that Contractor provide all
finished or unfinished documents, data, and other information of any kind prepared by
Contractor in connection with the performance of Services under this Agreement. Contractor
shall be required to provide such document and other information within fifteen (15) day s of the
request.
11.19.1 Additional Services. In the event this Agreement is terminated in
whole or in part as provided herein, City may procure, upon such terms and in such manner as
it may determine appropriate, services similar to those terminated.
11.20 MAINTENANCE AND INSPECTION OF RECORDS.
The City, or its authorized auditors or representatives, shall have access
to and the right to audit and reproduce any of the Contractor's records to the extent the City
deems necessary to insure it is receiving all money to which it is entitled under the Contract
and/or is paying only the amounts to which Contractor is properly entitled under the Contract or
for other purposes relating to the Contract.
15
The Contractor shall maintain and preserve all such records for a period
of at least three (3) years after termination of the Contract.
The Contractor shall maintain all such records in the City of Vernon. If
not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or
reimburse the City for all reasonable and extra costs incurred in conducting the audit at a
location other than the City of Vernon, including, but not limited to, such additional (out of the
City) expenses for personnel, salaries, private auditors, trav el, lodging, meals, and overhead.
11.2 1 CONFLICT. Contractor hereby represents, warrants, and certifies that no
member, officer, or employee of the Contractor is a director, officer, or employee of the City of
Vernon, or a member of any of its boards, commissions, or committees, except to the extent
permitted by law.
11.22 HEADINGS. Paragraphs and subparagraph headings contained in this
Agreement are included solely for convenience and are not intended to modify, explain or to be
a full or accurate description of the content thereof and shall not in any way affect the meaning
or interpretation of this Agreement.
11.2 3 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor
constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five
dollars ($25) for each worker employed in the execution of this Agreement by the respective
Contractor or subcontractor for each calendar day during which the worker is required or
permitted to work more than 8 hours in any one calenda r day and 40 hours in any one calendar
week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code
as a penalty paid to the City; provided, however, work performed by employees of contractors in
excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon
compensation for all hours worked in excess of 8 hours per day at not less than 1½ times the
basic rate of pay.
16
11.24 LIVING WAGES Contractor, and any Subcontractor(s), shall comply with
the City’s Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit
“C”. Upon the City’s request, certified payroll records shall promptly be provided to the City. .
11.2 5 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor
certifies and represents that, during the performance of this Contract, it and any other parties
with whom it may subcontract shall adhere to equal employment opportunity practices to assure
that applicants, employees and recipients of service are treated equally and are not
discriminated against because of their race, religi on, color, national origin, ancestry, disability,
sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that
it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal
Employment Opportunity Practices provisions as set forth in Exhibit “D”.
[Signatures Begin on Next Page].
17
IN WITNESS WHEREOF, the Parties have signed this Agreement as of the
Commencement Date stated on the cover page.
City of Vernon, a California charter City
and California municipal corporation
By: ____________________________
Carlos R. Fandino, Jr.
City Administrator
BLX Group LLC, a limited liability company
By:
Name:
Title:
ATTEST:
_______________________________
Lisa Pope, City Clerk
By:
Name:
Title:
APPROVED AS TO FORM:
_______________________________
Arnold M. Alvarez-Glasman,
Interim City Attorney
18
EXHIBIT A
CONTRACTOR'S PROPOSAL
BLX Group LLC
Response to Request for Proposal to Provide Financial Advisory Services:
CITY OF VERNON
SEPTEMBER 8, 2020
CO-PROJECT MANAGERS
Jeff Higgins
Managing Director
T 213.612.2209
E jhiggins@blxgroup.com
Glenn Casterline
Managing Director
T 213.612.2229
E gcasterline@blxgroup.com
BLX Group LLC
777 South Figueroa St, Ste 3200
Los Angeles, CA 90017-5855
Ph 213 612 2200 Fx 213 612 2499
www.blxgroup.com
September 8, 2020
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Re: City of Vernon Financial Advisory Services Request for Proposals
Ladies and Gentlemen:
On behalf of BLX Group LLC ("BLX") I am pleased to submit this response to the City of Vernon’s
(“City”) request for proposal (“RFP”) to provide Financial Advisory Services. Having worked with the
City since 2002 including serving as Financial Advisor on the City’s most recent debt financings, BLX's
technical capabilities, familiarity with the City’s debt profile along with the debt profiles similar to that
of the City, and a history of unsurpassed client service, combine to make us distinctly qualified to serve
the City's needs.
BLX possesses a unique combination of relevant resources, experience, and expertise to offer the
City. The City’s financial advisory needs are an excellent fit with BLX’s corporate philosophy and
procedures in that it acknowledges the unique characteristics of local government issued debt and
investing public funds and the necessary understanding of related statutory, bond, and tax issues. If
selected, BLX is committed to providing personalized financial advisory services in an informed,
hands-on, extension-of-staff manner.
Additionally, BLX hereby declares that the undersigned individual is authorized to bind the firm with a
Financial Advisory Services contract with the City and that the proposal will be valid for a period of at
least ninety (90) days from the date of submission. We propose that the contemplated project be
managed from our Los Angeles office and will not be subcontracted.
Partnering with BLX and taking advantage of our strong tax and analytical skill set and competitive
pricing is the best choice for a successful, yet cost-effective engagement. Glenn and I will serve as
your relationship managers and primary points of contact. In that role, we will be responsible for leading
an open dialogue between BLX and the City. We are excited about the prospect of once again working
with the City and look forward to addressing any questions you may have. I can be reached at 213-
612-2209 or via e-mail at jhiggins@blxgroup.com.
Very truly yours,
BLX Group LLC
Jeff Higgins, Managing Director
777 S. Figueroa Street, Suite 3200
Los Angeles, CA 90017
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
TABLE OF CONTENTS
COVER LETTER
CONTENTS PAGE
A. INTRODUCTION 1
B. GENERAL SCOPE OF WORK 2
C. WORK PLAN 5
D. FEES AND COSTS 7
E. ABILITY OF THE PROPOSER TO PERFORM 9
F. AFFIDAVIT OF NON-COLLUSION 17
EXHIBITS
A. CONFLICT DISCLAIMERS AND DISCOSURES
B. AFFIDAVIT OF NON-COLLUSION FORM
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
1
A. INTRODUCTION
Present an introduction of the proposal and your understanding of the assignment
and significant steps, methods and procedures to be employed by the proposer to
ensure quality deliverables that can be delivered within the required time frames and
your identified budget.
BLX is a registered municipal advisor offering financial advisory, interest rate swap advisory,
and post debt issuance compliance services associated with requirements imposed by the
IRS and SEC. As an independent and unbiased advisor, BLX's primary objectives are to
advocate for and educate our clients while assisting in structuring their financings to achieve
low cost of capital at the terms best suited to their debt policies and strategic objectives
Our financial advisory experience includes providing recommendation of different
transactional approaches according to the borrower’s best interests, including bond sales,
bank lending, and state loans. Furthermore, BLX has participated in numerous transactions,
rating presentations, and negotiations with underwriters, LOC banks, and bond purchasers,
and have observed how different types of transactions perform under different market
conditions.
Because we are independent advisors and are not in the business of underwriting bonds, we
are held to a fiduciary standard in all our engagements under the Dodd/Frank Act of 2010,
and are not considered by the MSRB to have the potential conflicts of interest which exist
between municipal borrowers and securities underwriting firms.
Further, BLX and its professionals have advised on municipal debt offerings, escrow
(re)structurings, investment products, and derivative transactions across all sectors of public
finance, including local agencies, public utilities, higher education, healthcare, and project
finance. Since 2008, BLX has placed over 400 structured investment products, including
escrow portfolios, with an aggregate notional amount in excess of $37 billion.
City of Vernon
We have been privileged to work with the City for 18 years and over that time have provided
pre-issuance and post-issuance financial advisory services, derivative advisory and
management services and investment advisory services. The City is without question one
of our firm’s most valuable clients. Our team assigned to Vernon is headed by Jeff Higgins
and Glenn Casteline, Managing Directors, along with Craig Underwood, BLX’s President, all
of which are located in our Los Angeles office. These individuals are among BLX’s most
senior and experienced professionals and have worked with the City on an absolute priority
basis.
We would enthusiastically welcome the opportunity to renew and, whenever possible at the
City’s request, expand our relationship with the City. We can unequivocally state that BLX
has an unmatched understanding of the City’s debt, derivative and investment transactions,
the historical and institutional knowledge of the City’s financings needed to provide optimal
advice, and is best positioned to provide the services outlined in Section B herein. Therefore,
we are confident that BLX will be able to seamlessly and without any delays continue its work
with the City and its staff and continue to provide structuring, pricing, and credit advice.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
2
B. GENERAL SCOPE OF WORK
Briefly summarize the scope of work as the proposer perceives or envisions it for each
Service Area proposed.
The scope of work as described in the RFP is generally consistent with the services BLX is
currently providing to the City and those which BLX regularly provides to other municipal
clients. At BLX, we generally divide financial advisory engagements into four (4) phases –
(1) ongoing general consulting, planning and advisory services not directly related to a
transaction (i.e. strategic planning); (2) pre-issuance services directly related to
debt/derivative/investment transactions (i.e. debt strategy); (3) executing a debt strategy, and
(4) post-issuance regulatory, management, and oversight services.
Specifically, the services and tasks we proposed to perform for and on the City’s behalf are
as follows:
Phase I: Ongoing General Consulting Services
1. BLX will meet with the City to update and fully develop our understanding of the City’s
objectives with regard to financing and investment matters. As has been our practice with
the City, we would expect to meet regularly with City staff to discuss new opportunities
and changes in financial policy/objectives. The BLX staff assigned to this engagement is
available to the City as its highest priority.
2. BLX will review all outstanding debt and derivative positions, identifying opportunities to
reduce debt service, provide cash flow relief, and improve the City’s overall balance
sheet.
3. BLX will be available on a priority basis to meet with City staff, City Council, committees,
commissions, and local governmental and quasi-governmental bodies as requested by
the City. We will provide support, advice, and presentation materials as requested by the
City to support its efforts to be responsive and transparent with all such entities.
Strategic Planning
Review proposed projects and
capital needs
Review and analyze cash flow
models for proposed projects
including its effects on overall debt
service
Indentify refinancing candidates
Debt Strategy
Review debt management policies
Analyze projected cash flows vs
amortization alternatives
Consider fixed and/or variable rate
debt structures
Create cash flow model of selected
financing structure
Summarize costs, savings, and risks
Execute Debt Strategy
Help establish financing team
including the selection of underwriter,
bond counsel, trustee, etc.
Evaluate and summarize projected
costs of negotiated sale vs
competitive sale
Provide daily update on tax-exempt
market including its effect on
proposed financing
Review POS and legal documents
Communicate with rating agencies
and assist with presentations to
rating agencies
Advise as to the reasonableness of
proposed bond pricing
Post-Issuance Services
Monitor IRS post-issuance
requirements (Arbitrage Rebate,
Private Use)
Assist with secondary market
disclosure requirements
Interest rate swap monitoring
services
Continue to interact with rating
agencies and investors
Deliver updates on market
conditions, financial products,
along with changes in federal and
security laws
SB1029 services
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
3
Phase II: Pre-Issuance Transactional Services
1. In the event a financing objective (e.g., reduce debt service, fund capital projects, etc.)
has been identified by the City, BLX will review the existing debt obligations and other
credit and funding commitments and how a new financing might impact those. It will also
include a preliminary forecast of the impact of any contemplated debt transaction on the
City’s credit rating, its rate structure (as it applies to enterprise funds), and overall debt
service coverage.
2. BLX will work with the City to select the optimal financing strategy, which provides the
City with the lowest cost of capital within risk parameters acceptable to and appropriate
for the City.
3. As requested by the City, BLX will present or assist with the presentation of the initial
financing plan to those public bodies charged with oversight, including City Council.
Phase III: Transactional Services
1. Once an overall financing plan has been agreed upon, BLX will provide a preliminary
step-by-step action plan, clearly identifying responsibilities and timeline for project
completion.
2. BLX will assist in the selection and formation of a financing team, including preparing a
list of services required of underwriter, trustee, verification agent (if needed), and other
professionals.
3. BLX will work with the City staff, bond counsel and financing team to determine the
appropriate size, structure, specific terms and conditions for the debt transaction, and
recommended method of sale.
4. BLX will assist bond counsel and other financing team members with the preparation of
all publicly distributed documents in connection with the financing, including the official
statement (or similar document) and related disclosures.
5. BLX will assist the City in negotiating and/or making presentations to credit rating
agencies and/or credit enhancers (e.g., bond insurers, credit banks, etc.).
6. Prior to the sale of debt securities, BLX will assist with and represent the City at
informational meetings as part of the marketing effort.
7. If a negotiated sale process is utilized, BLX will assist the City in negotiating appropriate
terms, reviewing spreads, identifying comparable transactions, analyzing market levels,
and clarifying any syndicate roles with the selected underwriter. BLX will also work side-
by-side with the underwriter to ensure the broadness and appropriateness of the
marketing and sales effort.
8. BLX will assist the City in closing the financing, including all necessary administrative and
clerical tasks and the investment of the bond proceeds.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
4
Phase IV: Post - Issuance Services
1. BLX will provide the City with ongoing compliance, monitoring, and management services
in the following areas:
A. Arbitrage Rebate Compliance Services – BLX will provide the City with annual and
final arbitrage rebate calculations on each of the City’s outstanding tax-exempt bond
issues.
B. Continuing Disclosure Services – BLX will assist the City with its required
obligations under the various continuing disclosure agreements.
C. Other Compliance Services – BLX will provide the City with ongoing bond proceeds
compliance services such as services related to the requirements established by
California Senate Bill 1029 (“SB 1029”).
2. BLX will be available on a full time basis to interact with ratings agencies and investors
on behalf of the City along with addressing any issues that arise relating to the City’s debt
issuances.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
5
C. WORK PLAN
Present concepts for conducting the work plan and interrelationship of all projects.
Define the scope of each task including the depth and scope of analysis or research
proposed.
As described in the previous section, BLX views this engagement as having four distinct, but
very much interrelated, components or phases. All four are critical to the City’s financial
success, stability, and transparency and best provided by a single firm doing so on an
integrated basis.
We propose to implement the following work plan items and tasks as a supplement to the
Scope of Services described earlier.
Phase I: Our approach to providing Financial Advisory services to the City begins with acting
as an extension of the City’s staff. That is, we have and would continue to be available to
the City on a full-time basis (and on short notice) to provide support, analysis, and advice for
all City-related financial matters. By being fully immersed in the City’s financial activities, we
are best positioned to provide the required services and timely and value-added advice.
To add some structure to this, we propose regularly scheduled weekly meeting (or call if
preferred by City) with the Finance Director to review ongoing projects, help prepare for
upcoming meetings requiring financial analysis, and generally review market conditions and
opportunities for the City to improve its financial standing and/or pursue additional capital
funding. We also recommend that as Financial Advisor, we review of the City’s financial
standing as it relates to debt, derivative, and investments. Working with the Finance Director,
BLX will develop a template for such presentations that can be readily updated and amended
on an ongoing basis.
Finally, as circumstances require, BLX’s assigned professionals will be available to the City
on a full-time priority basis. That is, should the City need BLX support and advice to address
pressing and sudden issues, we will make the necessary resources available to the City. We
believe that the availability of our assigned professionals throughout our decade of service
to the City readily demonstrates the true depth of this commitment.
Phases II and III: The services described in Phases II and III are fairly standard for financial
advisory engagements as described in the previous section. Once the City is in agreement
with the work plan, BLX will assist the City with the following:
1. Forming a financing team. Absent financing team members already being in place by
virtue of prior RFPs or other process, BLX will assist the City with identifying and securing
financing team members – utilizing a competitive process whenever possible.
3. Provide ongoing advice and recommendations to the City on how to best document
important transaction decisions regarding debt structure and important
legal/financial/credit issues.
4. Upon the close of any transaction, BLX will provide a summary report to the City. This
report will detail the final transaction structure, including the bond pricing effort and
outcome; identify the extent to which the final transaction met the original project goals;
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
6
and summarize the City’s ongoing obligations under the transaction. BLX will present or
assist in presenting these final findings to City Council.
Phase IV: BLX has provided the services proposed in this section to the City for several
years. We do not foresee any substantial changes in the work plan for how these services
are provided. However, in the spirit of creating greater transparency, we propose to provide
a formal annual report detailing the City’s post-issuance compliance efforts. This summary
will include the results of any arbitrage rebate calculations, a summary of any required
disclosure filings, and compliance with SB 1029. This annual report will be useful in
demonstrating the City’s ongoing oversight efforts to City Council, regulatory parties, and
other groups.
We strongly believe that the City is best served by a single qualified firm providing the
services proposed in this and the prior section on an integrated basis.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
7
D. FEES AND COSTS
Although an important aspect of consideration, the financial cost estimate will not be
the sole justification for consideration. Negotiations may or may not be conducted
with the proposer; therefore, the proposal submitted should contain the proposer’s
most favorable terms and conditions, since selection and award may be made without
discussion with any firm. All prices should reflect “not to exceed” amounts per item.
Proposer must offer services at a rate comparable to the rate proposer offers to other
governmental entities for similar work. Offering a higher rate to the City than the
comparable rate is grounds for disqualification of the Proposer.
BLX does not structure its fees for advisory services based on any set formula or approach.
We have provided similar services to those contemplated by the City on (i) a fixed fee basis;
(ii) an hourly basis; and (iii) a percentage of transaction-size basis.
The most important factor in determining an appropriate fee structure is the City’s comfort
that our fee is appropriate for the work and value provided and consistent with “the market”.
Therefore, while we have proposed a fee schedule as shown below, we are amendable to
negotiate alternative fee structures that may be deemed more acceptable by the City.
Our proposed fee structure is segmented in a manner consistent with our response to
Section B – General Scope of Work.
Phases I & II: Ongoing General & Pre-Issuance Transactional Services
As the depth and amount of the services required in this phase are difficult to approximate,
we believe these services are fairly compensated by an hourly billing arrangement. Our
proposed hourly fees are as follows:
Title Hourly Rate
President $500
Managing Director $450
Alternatively, we would be open to negotiating a flat annual retainer for these services. Such
an arrangement might provide greater value for the City in that it would provide a cap. In
order to determine an appropriate level for such a cap, we would need to first discuss with
the City what various projects and tasks it forecasts over the next 12 months.
Phase III: Transactional Services
Once the City has elected to pursue a specific financing, our fee for services in connection
with such a financing would then shift to a contingent arrangement. Under such an
arrangement, BLX would only be compensated upon a successful closing. Our proposed fee
for these services is as follows:
Debt Transaction: $1.00/$1,000 Bond with a cap of $250,000 and a floor of
$60,000
Derivative Transaction: The present value of .02% of the notional amount for each year
the derivative is outstanding with a cap of $200,000 and a floor
of $60,000
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
8
Contingent Fee Disclosures: Most forms of compensation for financial advisors have some
sort of potential conflict of interest inherent in the payment arrangement. Under a contingent
fee form of compensation, payment of an advisor’s fee is dependent upon the successful
completion of a financing or other transaction. Although this form of compensation may be
customary for the client, it presents a conflict because the advisor may have an incentive to
push to complete a financing or potential financing under terms that might be
disadvantageous to the client. For example, when facts or circumstances arise that could
cause the financing or other transaction to be delayed or fail to close, an advisor may have
an incentive to discourage a full consideration of such facts and circumstances, or to
discourage consideration of alternatives that may result in the cancellation of the financing
or other transaction. Under an hourly fee form of compensation, the advisor is paid an
amount equal to the number of hours worked by the advisor times an agreed-upon hourly
billing rate. This form of compensation presents a potential conflict of interest if the client and
the advisor do not agree on a reasonable maximum amount at the outset of the engagement,
because the advisor does not have a financial incentive to recommend alternatives that
would result in fewer hours worked. In some cases, an hourly fee may be applied against a
retainer (e.g., a retainer payable monthly), in which case it is payable whether or not a
financing closes. Alternatively, it may be contingent upon the successful completion of a
financing, in which case there may be additional conflicts of interest, as described above.
The City may wish to consider a continuation of the hourly rates proposed for Phase I
services for Phase II services. Should the City elect to do so, fees for Phase III services
would be non-contingent.
Phase IV: Post-Issuance Services
Our fees for the services described in the corresponding section of our response to Section
2 are as follows:
A. Arbitrage Rebate Compliance Services (on a per bond issue basis)
Annual Report Fee (per report) $2,000
B. Continuing Disclosure Services
Electric System $11,000
Redevelopment $7,000
Water System $5,000
C. Derivative Monitoring Services
Per Outstanding Derivative (swap) $2,500
D. SB 1029 Services
Report Fee $1,000
Please note that we are open to other fee arrangements and would welcome any discussion
with the City regarding our fee proposal.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
9
E. ABILITY OF THE PROPOSER TO PERFORM
Provide a detailed description of the proposer and his/her/its qualifications, including
names, titles, detailed professional resumes and past experience in similar work
efforts/products of key personnel who will be working on the assignment. Provide a
list of specific related work projects that have been completed by the proposer which
are directly related to the assignment described in this RFP. Note the specific
individuals who completed such project(s). Identify role and responsibility of each
member of the project team. Include the amount of time key personnel will be involved
in the respective portions of the assignment. Respondents are encouraged to supply
relevant examples of their professional product. Provide a list of references.
The selected firm shall not subcontract any work under the RFP nor assign any work
without the prior written consent of the City.
Firm Overview
BLX Group LLC, formerly known as Bond Logistix LLC, is a Municipal Securities Rulemaking
Board and Securities Exchange Commission registered independent municipal advisory firm,
specializing in serving governmental issuers and nonprofit entities. Our consulting services
include financial advisory, interest rate swap advisory, along with federal tax and regulatory
compliance services. We work with issuers on projects, both large and small, leveraging our
experience, resources, and expertise to design the role that best fits each client’s needs.
BLX was established in 1989 to undertake the mathematical, financial, and other technical
aspects necessary to assist public and nonprofit agencies in complying with the arbitrage
rebate regulations imposed by the Internal Revenue Service (“IRS”). Since that time, BLX
has grown to become the largest provider of such services in the country, with 30 professional
consultants and 12 support staff in 5 offices nationwide, strategically located in Dallas, Los
Angeles, Phoenix, New York, and Tampa.
BLX has a tremendous amount of experience in providing services to all types of entities
including states, counties, cities, transportation authorities, public utilities, special districts,
nonprofit organizations, and more. BLX professionals assigned to its engagement with the
City will have an average of 28 years of public finance experience. BLX is a wholly-owned
subsidiary of Orrick, Herrington & Sutcliffe LLP ("Orrick"), the premier public finance law firm
in the nation. Orrick has provided quality legal services to municipal issuers, underwriters,
and trustees for more than 100 years and has been ranked first nationally as bond counsel
for most of the last two decades (as reported in the Bond Buyer).
BLX has grown to become a full service advisory firm, offering a range of complementary
services to public sector bond issuers and nonprofit entities. The professionals in each
practice area are allocated to work primarily in their practice groups. However, our practice
areas are designed to complement each other by providing expertise in the sometimes
difficult to fill gaps commonly encountered in municipal finance. For example, our swaps
group will often assist our financial advisory practice when the proposed debt strategy
includes hedging variable rate interest rate risk with a floating-to-fixed rate swap. Similarly,
our rebate group might streamline a swap-related engagement by sharing documentation
previously supplied by the client, saving all parties time and effort. There are numerous other
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
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circumstances where we can leverage these synergies for the benefit of our clients. In this
regard, the evolution of our firm has been driven simply by the needs and priorities of our
clients.
While smaller firms may have the expertise in their area of focus, their lack in size and overall
experience not only limits synergies, but limits their flexibility in deploying resources and,
importantly, limits their ability to develop the infrastructure necessary to efficiently and reliably
deliver services. By being a full-service firm with a relatively larger client and services base,
BLX has been able to make investments, in technology for example, that benefit multiple
practice groups firm-wide. We continually invest in technology to enhance our clients’
experience, minimize labor production costs passed on to them, and supplement our multi-
tier review process with software-based quality controls: (a) BLX Digital, our team of 3 full-
time engineers, partners with our 30 consultants to deliver accurate and efficiently produced
reports. They have designed several proprietary platforms to assist our clients with bond
and compliance related activities. Such platforms advocate transparency and include:
BLXBid (secure investment bidding), BLXSwap (swap monitoring and GASB53/72
valuations), and internal platforms related to trust account data processing and extensive
private use analyses. (b) We advocate transparency and provide complimentary access to
the BLXPortal, a secure service that allows our clients to access detailed information about
their rebate engagements, view rebate reports, review scheduled computations, and upload
bond documents and investment records.
By demonstrating our ability to manage thousands of active engagements combined with our
experiences in providing financial advisory and post-issuance compliance services, and
developing web-based platforms, BLX is amply qualified to serve the City.
Since launching its advisory service practice, BLX and its professionals have advised on
municipal debt offerings, escrow (re)structurings, structured investment products and
derivative transactions with an aggregate par and notional amount in excess of $60 billion
across all sectors of public finance, including local agencies, public utilities, higher education,
healthcare, and project finance.
As you are aware, BLX served as the City’s financial advisor from 2002 through 2013 and
again from 2017 through a portion of 2020 During such period, the City embarked on a
number of complex financings that required the financial advisor to have a detail
understanding of the City, its general fund, utility system, gas system, redevelopment plan
and, most importantly an understanding of the City’s primarily industrial constituents. BLX
assisted the City with achieving those objectives, even during some of the City’s most
challenging periods of time such as the nation’s financial crisis in 2008 and State’s dissolution
of the redevelopment agencies. BLX assisted the City with the financing of numerous assets
of Light and Power and the former Redevelopment Agency, including the financing of the
Malburg Generating Station, the financing and refinancing of the City’s 15 year natural gas
prepay transaction, the acquisition and sale of the City’s Tehachapi wind land, the sale of the
certain utility assets such as Malburg Generating Station and transmission assets, to name
a few. In addition, in 2020 BLX assisted the City with the issuance of its 2020 Light and
Power and Water System financings. BLX assisted the City in developing and evaluating
financial forecasts for the utility, monitoring the City’s IRS compliance (including arbitrage
rebate and private-use) and SEC compliance requirements (such as continuing disclosure
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
11
requirements). BLX also performed investment advisory/portfolio management services for
the City during this time period. However effective April 1, 2016 BLX no longer offers such
services. Even during the period BLX did not serve as the City’s financial advisor, BLX has
continually monitored the City’s financing activities.
BLX is also the largest and most widely experienced provider of post issuance compliance
and regulatory services (i.e., arbitrage compliance services, continuing disclosure services,
etc.) in the nation. We prepare about 3,400 arbitrage rebate reports annually and have in
place the resources to address your current and future needs with no interruption to our
procedures or strain on our consultants.
Financial Advisory Team
The Project Team that BLX will assign to the City consists of BLX’s most experienced and
appropriately skilled professionals, including the firm’s president. All team members will be
available on a full-time basis. Having provided the similar services proposed herein to public
agencies across the country, including the City, these BLX professionals are widely
considered to be among the nation’s leading experts in debt, tax, derivative, and secondary
market disclosure matters relating to municipal bond financings.
We believe it is important to note that Mr. Underwood and Mr. Higgins have worked
extensively on the City’s financing matters for over a decade and in this time have become
intimately familiar with City’s outstanding debt and derivative portfolio, the City’s current
standing with the rating agencies and investors, and ongoing tax, regulatory, and compliance
efforts.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
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Personnel Role
Time
Involvement
Public Finance
Experience
Jeff Higgins
Managing Director
Co-Engagement Manager
Co-Primary Contact
Strategy and Analytics
≈ 35% 27 Years
Glenn Casterline
Managing Director
Co-Engagement Manager
Co-Primary Contact
Strategy and Analytics
≈ 35% 28 Years
Craig Underwood
President
Co-Engagement Manager
Strategy
≈ 20% 31 Years
Eric Chu
Managing Director
Strategy and Analytics
Derivatives
≈ 10% 28 Years
JEFF HIGGINS
MANAGING DIRECTOR
BLX Group LLC - Los Angeles
(213) 612-2209
jhiggins@blxgroup.com
Role
Co-Lead Municipal Advisor
Strategic Planning
Financing Structure
27 Years Public Finance Experience
Manages BLX's Municipal Continuing Disclosure practice
Served as the City’s financial advisor from 2002 to 2013
and 2017 to 2020
Manages many of BLX's most sophisticated issuer's
including Energy Northwest, Piedmont Municipal Power
Agency, State of South Carolina, Regents of the
University of California, State of Hawaii and its agencies,
and the City and County of Honolulu
Education
Arizona State University
BS in Finance, 1992
FINRA Licenses
Series 50, Municipal Advisor Rep, (2016 to Present)
Series 54, Municipal Advisor Principal (2019 to Present)
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
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GLENN R. CASTERLINE
MANAGING DIRECTOR
BLX Group LLC - Los Angeles
(213) 612-2229
gcasterline@blxgroup.com
Role
Co-Lead Municipal Advisor
Strategic Planning
Financing Structure
28 Year Public Finance Experience
Served as the City’s financial advisor from 2017 to 2020
Experience includes financial advisory engagement with
the Colburn School for Performing Arts, California
Science Center Foundation, Performing Arts Center of
Los Angeles County, Sanford Burnham Prebys Medical
Discovery Institute, and the City of Oceanside
Serves as Manager for many of BLX’s largest compliance
engagements including the California State University
System, City of Long Beach (CA), County of Riverside
(CA), the City and County of Denver, and Denver
International Airport
Education
California State University, Fullerton
BA in Business Administration, Finance, 1991
FINRA Licenses
Series 50, Municipal Advisor Rep (2016 to Present)
Series 54, Municipal Advisor Principal (2019 to Present)
ERIC CHU
MANAGING DIRECTOR
BLX Group LLC - Los Angeles
(213) 612-2136
echu@blxgroup.com
Role
Co-Municipal Advisor
Finance Structure
Interest Rate Swap Advisor
28 Years Public Finance Experience
Experience includes work on hundreds of interest rate
swap and structured investment transactions and
providing on-going monitoring and compliance
services, including for GASB and FASB accounting
rules. Clients have included Ithaca College, Master’s
University, Francisco Airport Commission, Dignity
Health, County of San Diego (CA), City of Riverside
(CA), The Colburn School, Sanford Burnham Prebys
Medical Discovery Institute
Led the development of BLXSwap, a web-based swap
monitoring platform, and BLXBid, a web-based market
bidding platform
Education
University of California, Los Angeles
BS in Applied Mathematics & BA in Economics, 1991
FINRA Licenses
Series 50, Municipal Advisor Rep (2016 to Present)
Series 54, Municipal Advisor Principal (2019 to Present)
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
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CRAIG UNDERWOOD
PRESIDENT
BLX Group LLC - Los Angeles
(213) 612-2463
cunderwood@blxgroup.com
Role
Co-Municipal Advisor
Strategic Planning
Financing Structure
31 Years Public Finance and related Experience
Heads BLX’s advisory service practice, overseeing the
firm’s debt, derivative, and capital market practices
Experience includes financial/derivative/investment
advisory services for governmental, nonprofit, and
corporate entities; designing and implementing various
compliance and administration engagements for tax
compliance, municipal disclosure, tobacco
securitizations and student housing management
Served as the City’s lead financial advisor from 2002 to
2013
Education
Princeton University
BA in Politics, 1986
FINRA Licenses
Series 50, Municipal Advisor Rep (2017 to Present)
Philosophy and Objective
As an independent and unbiased advisor, BLX's primary objective is to advocate for and
educate our clients to structure their financings to achieve the lowest cost of capital at the
terms best suited to their debt policies and strategic objectives. Our philosophy is to ensure
all financing options are identified and reviewed for the borrower. Whenever possible, BLX
aims to develop an ongoing relationship with its clients rather than a transaction based
relationship. Our market knowledge and expertise provides us with the ability to negotiate
the most attractive fees and terms with financing participants on behalf of our clients.
BLX's hands on expertise in the municipal bond trading and underwriting arena provides an
insider knowledge base to advocate for the City and bring transparency to the pricing
process. Our objective is to guide the City in balancing financing priorities with the current
market and investor demand. BLX monitors the municipal market on a daily basis and can
share market data on comparable transactions that will empower the City in selection of bond
or note sale dates and bond pricing decisions. BLX has access to all the major market
information sources such as Bloomberg, Thomson Reuters, Municipal Market Data (MMD),
and EMMA to help the City make real time decisions that may impact the City's negotiated
and competitive sales. BLX works closely with the underwriter to make sure decisions are
made in best interest of the City and will provide an independent 3rd party fair market
certification for negotiated sales.
BLX is an industry leader in tax compliance and related on-going post-issuance maintenance
of tax-exempt financings and all of our practice areas complement one another by providing
our clients with value added cross discipline expertise that has proven valuable, in particular
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
15
with respect to the analyzing the impact of swap transactions on arbitrage rebate and related
tax analyses. Throughout our 28 year history, our mission has been to exclusively serve,
and act on behalf of, our governmental and not-for-profit entity clients in areas where BLX
can leverage its combination of extensive infrastructure, depth of resources, and professional
expertise to provide best in class services.
Analytical Capabilities
The senior members of our proposed team, Mr. Higgins, Mr. Casterline, and Mr. Chu, head
up our technical modeling and quantitative analysis for BLX’s debt advisory and derivative
advisory services. They are assisted by three to five consultants who work under their
supervision to perform projects for our clients. Many of the projects require customized
models to accommodate the specific idiosyncrasies of our clients' debt, investment and
derivative strategies. Mr. Chu developed both of BLX's propriety applications for structured
investment product bidding (BLXBid.com) and online swap monitoring and valuations
(BLXSwap.com).
BLX utilizes MUNEX to size and structure bond issues, perform advance refunding
calculations, analyze the cost effectiveness of credit enhancement, confirm and validate the
true interest costs on competitive bids and to provide transaction schedules to our clients. In
addition to MUNEX, BLX routinely develops customized financial models to address the
specific information and financing strategy needs of its clients. Given BLX's technical
expertise in complex transactions, our staff is uniquely oriented toward creating specialized
financial models for our clients.
BLX possesses particular expertise and experience in complex transaction modeling and
investment product pricing. BLX utilizes a myriad of industry leading quantitative tools and
market sources that help provide our clients superior pricing transparency. Our purpose-built
modeling software programs, and in-house developed Excel models allow us the flexibility to
price and execute even the most complex transactions.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
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References
Below we have provided a brief list of references you may wish to contact. In addition to the
views of these references, BLX has had a long history working with the City including the
current City Administrator and Finance Director. Perhaps of greater value than any
recommendation of our services that you may receive from a third party, you may wish to
discuss the quality, value, and commitment of BLX to the City with those individuals.
The California Science Center Foundation
Cynthia Pygin, Chief Financial Officer
700 Exposition Park Drive, Los Angeles, CA 90037
(323) 724-3623
cpygin@cscmail.org
Performing Arts Center of Los Angeles County
William Taylor, Senior Vice President Chief Financial Officer
135 North Grand Avenue, Los Angeles, CA 90012
(213) 972-7512
wtaylor@musiccenter.org
The Colburn School of Performing Arts
Sel Kardan, President and Chief Executive Officer
200 S. Grand Avenue, Los Angeles, CA 90012
(213) 621-1003
skardan@colburnschool.edu
Subcontractor
BLX will not be subcontracting any of the proposed Financial Advisory work.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
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F. AFFIDAVIT OF NON-COLLUSION
Proposer must submit a completed and signed, “Affidavit of Non-Collusion.”
See Exhibit B.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
18
EXHIBIT A
CONFLICT DISCLAIMERS AND DISCLOSURES
General
The City is aware that BLX is a subsidiary of Orrick. BLX and/or Orrick may have client
relationships with other parties involved in some manner with the City or the proposed
financing transaction (for example, underwriters, purchasers, counterparties, trustees, rating
agencies, insurers, credit providers, lenders, contractors, developers, advisors, investment
advisors/providers/brokers, public entities and others) whether with respect to the City or
some unrelated matter(s). Those participants are and will not be clients of BLX with respect
to the financing transactions that are the subject of this engagement.
BLX and Orrick have been part of the City’s financing team for past financings, and can work
together when we are both serving the City’s interests. However, a potential conflict of
interest may arise if Orrick is engaged to provide legal services to other financing team
participants.
However, to the extent that, because of any other relationship between Orrick or BLX and
other participants, there may appear to be or is any conflict of interest, actual or potential,
with respect to the City’s engagement of BLX, absent notification by the City to the contrary,
the City is hereby deemed to waive any such conflict and consents to any such other
relationship. BLX will notify the City of any potential conflicts.
BLX has taken the following steps to identify and address potential conflicts of interest that
may impact its ability to fulfill its duties to the City under this engagement.
BLX will not participate in the City’s process in selecting legal counsel in connection with
any financings.
BLX has provided “historical continuing disclosure compliance” services for underwriters
in connection with the underwriters’ obligation to review an issuer’s S.E.C. Rule 15c2-12
compliance over the past five (5) years. Such service entails reviewing continuing
disclosure filings made by the issuers. Such reports are factual representations of an
issuer’s compliance. BLX will inform the City of any underwriters that have retained BLX
for these services prior to any selection of an underwriter for the proposed transaction.
Potential financing structures may include Wells Fargo or US Bank serving as underwriter
or as purchaser of the obligations via a direct purchase. BLX is currently engaged by
Wells Fargo and US Bank to perform arbitrage rebate compliance services in connection
with outstanding obligations issued by certain public or not-for-profit agencies that
engaged the banks to serve as trustee. BLX’s scope of services relating to its engagement
with Wells Fargo and US Bank is independent of the services described herein and will
not conflict with BLX’s engagement with the City.
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
19
Other Municipal Advisor Relationships
BLX serves a wide variety of other clients that may from time to time have interests that could
have a direct or indirect impact on the interests of another BLX client. For example, BLX
serves as municipal advisor to other municipal advisory clients and, in such cases, owes a
regulatory duty to such other clients just as it does to City. These other clients may, from time
to time and depending on the specific circumstances, have competing interests. In acting in
the interests of its various clients, BLX could potentially face a conflict of interest arising from
these competing client interests. BLX fulfills its regulatory duty and mitigates such conflicts
through dealing honestly and with the utmost good faith with City.
If BLX becomes aware of any additional potential or actual conflict of interest after this
disclosure, BLX will disclose the detailed information in writing to the City in a timely manner.
Legal or Disciplinary Events
BLX does not have any legal events or disciplinary history on BLX’s Form MA and Form MA-
I, which includes information about any criminal actions, regulatory actions, investigations,
terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and
civil litigation. The City may electronically access BLX’s most recent Form MA and each most
recent Form MA-I filed with the Commission at the following website using CIK 0001610628
in the fast search field: www.sec.gov/edgar/searchedgar/companysearch.html.
There have been no material changes to a legal or disciplinary event disclosure on any Form
MA or Form MA-I filed with the SEC. If any material legal or regulatory action is brought
against BLX, BLX will provide complete disclosure to the City in detail allowing the City to
evaluate BLX, its management and personnel.
Municipal Securities Rulemaking Board Rule G-10 Disclosure
Pursuant to Municipal Securities Rulemaking Board Rule G-10, on Investor and Municipal
Advisory Client Education and Protection, Municipal Advisors are required to provide certain
written information to their municipal entity and obligated person clients which include the
following:
BLX is currently registered as a Municipal Advisor with the U.S. Securities and Exchange
Commission and the Municipal Securities Rulemaking Board.
Within the Municipal Securities Rulemaking Board (“MSRB”) website at www.msrb.org, the
City may obtain the Municipal Advisory client brochure that is posted on the MSRB website.
The brochure describes the protections that may be provided by the MSRB Rules along with
how to file a complaint with financial regulatory authorities.
March 2013
AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
_______________________________________________________________, being first duly sworn deposes
and says that he/she is ______________________________________________________________________
(Insert "Sole Owner", "Partner", "President, "Secretary", or other proper title)
of______________________________________________________________________________________
(Insert name of bidder)
who submits herewith to the City of Vernon a bid/proposal;
That all statements of fact in such bid/proposal are true;
That such bid/proposal was not made in the interest of or on behalf of any undisclosed person,
partnership, company, association, organization or corporation;
That such bid/proposal is genuine and not collusive or sham;
That said bidder has not, directly or indirectly by agreement, communication or conference with anyone
attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or
anyone else interested in the proposed contract; and further
That prior to the public opening and reading of bids/proposals, said bidder:
a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham
bid/proposal;
b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said
bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain
from bidding or withdraw his/her bid/proposal;
c. Did not, in any manner, directly or indirectly seek by agreement, communication or conference
with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or
fix any overhead, profit or cost element of his/her bid/proposal price, or of that of anyone else;
d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or
the contents thereof, or divulge information or data relative thereto, to any corporation,
partnership, company, association, organization, bid depository, or to any member or agent
thereof, or to any individual or group of individuals, except the City of Vernon, or to any person
or persons who have a partnership or other financial interest with said bidder in his/her business.
I certify under penalty of perjury that the above information is correct
By:______________________________________ Title:________________________________
Date:____________________________________
JEFF HIGGINS
MANAGING DIRECTOR
BLX GROUP LLC
MANAGING DIRECTOR
9/8/2020
EXHIBIT B
19
EXHIBIT B
SCHEDULE
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
7
D. FEES AND COSTS
Although an important aspect of consideration, the financial cost estimate will not be
the sole justification for consideration. Negotiations may or may not be conducted
with the proposer; therefore, the proposal submitted should contain the proposer’s
most favorable terms and conditions, since selection and award may be made without
discussion with any firm. All prices should reflect “not to exceed” amounts per item.
Proposer must offer services at a rate comparable to the rate proposer offers to other
governmental entities for similar work. Offering a higher rate to the City than the
comparable rate is grounds for disqualification of the Proposer.
BLX does not structure its fees for advisory services based on any set formula or approach.
We have provided similar services to those contemplated by the City on (i) a fixed fee basis;
(ii) an hourly basis; and (iii) a percentage of transaction-size basis.
The most important factor in determining an appropriate fee structure is the City’s comfort
that our fee is appropriate for the work and value provided and consistent with “the market”.
Therefore, while we have proposed a fee schedule as shown below, we are amendable to
negotiate alternative fee structures that may be deemed more acceptable by the City.
Our proposed fee structure is segmented in a manner consistent with our response to
Section B – General Scope of Work.
Phases I & II: Ongoing General & Pre-Issuance Transactional Services
As the depth and amount of the services required in this phase are difficult to approximate,
we believe these services are fairly compensated by an hourly billing arrangement. Our
proposed hourly fees are as follows:
Title Hourly Rate
President $500
Managing Director $450
Alternatively, we would be open to negotiating a flat annual retainer for these services. Such
an arrangement might provide greater value for the City in that it would provide a cap. In
order to determine an appropriate level for such a cap, we would need to first discuss with
the City what various projects and tasks it forecasts over the next 12 months.
Phase III: Transactional Services
Once the City has elected to pursue a specific financing, our fee for services in connection
with such a financing would then shift to a contingent arrangement. Under such an
arrangement, BLX would only be compensated upon a successful closing. Our proposed fee
for these services is as follows:
Debt Transaction: $1.00/$1,000 Bond with a cap of $250,000 and a floor of
$60,000
Derivative Transaction: The present value of .02% of the notional amount for each year
the derivative is outstanding with a cap of $200,000 and a floor
of $60,000
CITY OF VERNON
PROPOSAL TO PROVIDE FINANCIAL ADVISORY SERVICES
8
Contingent Fee Disclosures: Most forms of compensation for financial advisors have some
sort of potential conflict of interest inherent in the payment arrangement. Under a contingent
fee form of compensation, payment of an advisor’s fee is dependent upon the successful
completion of a financing or other transaction. Although this form of compensation may be
customary for the client, it presents a conflict because the advisor may have an incentive to
push to complete a financing or potential financing under terms that might be
disadvantageous to the client. For example, when facts or circumstances arise that could
cause the financing or other transaction to be delayed or fail to close, an advisor may have
an incentive to discourage a full consideration of such facts and circumstances, or to
discourage consideration of alternatives that may result in the cancellation of the financing
or other transaction. Under an hourly fee form of compensation, the advisor is paid an
amount equal to the number of hours worked by the advisor times an agreed-upon hourly
billing rate. This form of compensation presents a potential conflict of interest if the client and
the advisor do not agree on a reasonable maximum amount at the outset of the engagement,
because the advisor does not have a financial incentive to recommend alternatives that
would result in fewer hours worked. In some cases, an hourly fee may be applied against a
retainer (e.g., a retainer payable monthly), in which case it is payable whether or not a
financing closes. Alternatively, it may be contingent upon the successful completion of a
financing, in which case there may be additional conflicts of interest, as described above.
The City may wish to consider a continuation of the hourly rates proposed for Phase I
services for Phase II services. Should the City elect to do so, fees for Phase III services
would be non-contingent.
Phase IV: Post-Issuance Services
Our fees for the services described in the corresponding section of our response to Section
2 are as follows:
A. Arbitrage Rebate Compliance Services (on a per bond issue basis)
Annual Report Fee (per report) $2,000
B. Continuing Disclosure Services
Electric System $11,000
Redevelopment $7,000
Water System $5,000
C. Derivative Monitoring Services
Per Outstanding Derivative (swap) $2,500
D. SB 1029 Services
Report Fee $1,000
Please note that we are open to other fee arrangements and would welcome any discussion
with the City regarding our fee proposal.
20
EXHIBIT C
LIVING WAGE PROVISIONS
Minimum Living Wages:
A requirement that Employers pay qualifying employees a wage of no less than $10.3 0 per hour
with health benefits, or $11.55 per hour without health benefits.
Paid and Unpaid Days Off:
Employers provide qualifying employees at least twelve compensated days off per year for sick
leave, vacation, or personal necessity, and an additional t en days a year of uncompensated
time for sick leave.
No Retaliation:
A prohibition on employer retaliation against employees complaining to the City with regard to
the employer’s compliance with the living wage ordinance. Employees may bring an action in
Superior Court against an employer for back pay, treble damages for willful violations, and
attorney’s fees, or to compel City officials to terminate the service contract of violating
employers.
21
EXHIBIT D
EQUAL EMPLOYMENT OPPORTUNITY
PRACTICES PROVISIONS
A. Contractor certifies and represents that, during the performance of this Agreement, the
contractor and each subcontractor shall adhere to equal opportunity employment practices
to assure that applicants and employees are treated equal ly and are not discriminated
against because of their race, religious creed, color, national origin, ancestry, handicap,
sex, or age. Contractor further certifies that it will not maintain any segregated facilities.
B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for
employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity
Employer" or that all qualified applicants will receive consideration for employment without
regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age.
C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the
performance of this Agreement, discriminated against applicants or employees because of
their membership in a protected class.
D. Contractor agrees to provide the City with access to, and, if requested to do so by City,
through its awarding authority, provide copies of all of its records pertaining or relating to its
employment practices, except to the extent such records or portions of such records are
confidential or privileged under state or federal law.
E. Nothing contained in this Agreement shall be construed in any manner as to require or
permit any act which is prohibited by law.
City Council Agenda Item Report
Agenda Item No. COV-378-2020
Submitted by: Veronica Petrosyan
Submitting Department: Health and Environmental Control Department
Meeting Date: November 3, 2020
SUBJECT
Greater Los Angeles County Vector Control District Annexation No. 2019-07
Recommendation:
Adopt a Joint Resolution of the Board of Supervisors, as the Governing Body of the County of Los
Angeles, the Consolidated Fire Protection District of Los Angeles County, the Los Angeles County Flood
Control District, and the Belvedere Garbage Disposal District, and the Board of Directors of the Greater
Los Angeles County Vector Control District, the Los Angeles County Sanitation District No. 1, the Los
Angeles County Sanitation District No. 2, the Los Angeles County Sanitation District No. 23, and the
Water Replenishment District of Southern California, and the City Council of Vernon, approving and
accepting the negotiated exchange of property tax revenue resulting from Annexation No. 2019-07 to the
Greater Los Angeles County Vector Control District.
Background:
The Greater Los Angeles County Vector Control District (GLACVCD) provides mosquito control,
surveillance, and education to residents within 35 cities and areas of unincorporated Los Angeles
County. On December 20, 2016, Resolution No. 2016-68 was approved by City Council supporting the
annexation of the City of Vernon into the GLACVCD. Since 2017, the GLACVCD has provided contract
services to the City of Vernon under an out-of-agency service agreement approved by the LAFCO in
order to assess the feasibility and scope of annexation. On June 13, 2019, the GLACVCD Board of
Trustees authorized the GLACVCD to proceed with the annexation of the City of Vernon. The
Department of Health and Environmental Control was required to file an application for annexation with
the LAFCO by August 1, 2019. Accordingly, on July 16, 2019, the City of Vernon executed the Local
Agency Formation Commission (LAFCO) application to annex the City of Vernon into the Greater Los
Angeles County Vector Control District (GLACVCD). In order to complete the annexation process, the
City of Vernon must adopt the Joint Tax Transfer Resolution with the County of Los Angeles. The joint
resolution has been reviewed and approved as-to-form by the City Attorney's Office. The City's existing
contract with the GLACVCD will be terminated upon completion of the annexation.
Fiscal Impact:
Currently, there are approximately 1,260 assessable parcels in the City of Vernon. Based on the current
rate of $12.79 per parcel, the GLACVCD will receive approximately $16,115 in tax revenue. The City of
Vernon owns 55 parcels and will have a $703.45 tax obligation annually. The City of Vernon will realize a
significant savings by completing the annexation process as the current 3-year agreement with
GLACVCD is for a not-to-exceed amount of $90,000.
Attachments:
1. Joint Tax Resolution
2. Resolution No. 2016-68 adopted December 15, 2016
3. LAFCO Application
County of Los Angeles
GHIEF EXECUTIVE OFFICE
FESIAA. DAVENPORT
Acting Chief &ecutive Officer
Kenneth Hahn Halt of Administration
500 West Temple Street. Room 713. Los Angeles. Calilomia 9O012
(213) 974-1101
http ://ceo. lacounty. gov
September 15,2020
Carlos Fandino
City of Vernon
4305 S. Santa Fe Avenue
Vernon, CA 90058
Board of Supewisors
HILDA L. SOLIS
First Dtstrict
MARK RIDLEY-THOMAS
Second Distri:t
SHEILA KUEHL
Third District
JANICE HAHN
Fourth District
KATHRYN BARGER
Fifttr DisEict
Dear Mr. Fandino
JOINT TAX TRANSFER RESOLUTION
GREATER LOS ANGELES COUNTY VECTOR CONTROL DISTRIGT
ANNEXATION NO. 2019-07
Enclosed is a complete copy of the Joint Tax Transfer Resolution (Resolution) to be adopted
by your agency, including eight (8) pages for original signatures.
The original signature pages are required to ensure that each affected agency receives a fully
executed Resolution with original signatures. Please assist our Office in facilitating the
processing of the enclosed Resolution by executing and returning all of the original signlture
pages to:
County of Los Angeles, Chief Executive Office
Economic Development and Affordable Housing Division
500 West Temple Street, Room 750
Los Angeles, CA 90012
Attention: Doyle Chow
Additionally, please email the original signature pages at your earliest convenience to
w lacoun lf you have any questions, please feelfree to contact Doyle Chow
at (213) 893-0055
Sincerely,
0mM^ €
ALLISON E. CLARK
Senior Manager
Economic Development and
Affordable Housing Division
AC:JO
DC:yy
Enclosures
HTJoII IaI TransH ftesoum - CJry 0l R&fio Palos Verde6 tlo 2019.01_VerEn_0]1t20
"To Ennch Lwes Through EffectNe And Caing Seryrce"
JOINT RESOLUTION OF THE BOARD OF SUPERVISORS, AS THE GOVERNING BODY OF
THE COUNTY OF LOS ANGELES, THE CONSOLIDATED FIRE PROTECTION DISTRICT OF
LOS ANGELES COUNTY, THE LOS ANGELES COUNTY FLOOD CONTROL DISTRICT,
AND THE BELVEDERE GARBAGE DISPOSAL DISTRICT, AND THE BOARD OF
DIRECTORS OF THE GREATER LOS ANGELES COUNTY VECTOR CONTROL DlSTRlCT,
THE LOS ANGELES COUNTY SANITATION DISTRICT NO. 1, THE LOS ANGELES
COUNTY SANITATION DISTRICT NO. 2, THE LOS ANGELES COUNTY SANITATION
DISTRICT NO. 23, AND THE WATER REPLENISHMENT DISTRICT OF SOUTHERN
CALIFORNIA, AND THE CITY COUNCIL OF VERNON, APPROVING AND ACCEPTING THE
NEGOTIATED EXCHANGE OF PROPERTY TAX REVENUE RESULTING FROM
ANNEXATION NO. 2019.07 TO THE GREATER LOS ANGELES COUNTY VECTOR
CONTROL DISTRICT
WHEREAS, pursuant to Section 99 of the Revenue and Taxation Code, for specified
jurisdictional changes, the governing bodies of affected agencies shall negotiate and determine
the amount of property tax revenue to be exchanged between the affected agencies; and
WHEREAS, the Board of Supervisors of the County of Los Angeles, as the governing
body of the County, the Consolidated Fire Protection District of Los Angeles County, and the
Los Angeles County Flood Control District, and on behalf of the Belvedere Garbage Disposal
District; and the governing bodies of the Greater Los Angeles County Vector Control District, the
Los Angeles County Sanitation District No. 1, the Los Angeles County Sanitation District No. 2,
the Los Angeles County Sanitation District No. 23, the Water Replenishment District of Southern
California; and the City Council of Vernon, have determined the amount of property tax revenue
to be exchanged between their respective agencies as a result of the Greater Los Angeles
County Vector Control District Annexation No. 2019-07 is as set forth below:
NOW, THEREFORE, BE !T RESOLVED as follows:
1. The negotiated exchange of property tax revenue between the County of
Los Angeles, Consolidated Fire Protection District, Flood Control District, Belvedere Garbage
Disposal District, the Greater Los Angeles County Vector Control District, the Los Angeles
County Sanitation District No. 1, the Los Angeles County Sanitation District No. 2, the Los
Angeles County Sanitation District No. 23, the Water Replenishment District of Southern
California, and the City Council of Vernon, as a result of the Greater Los Angeles County Vector
Control District Annexation No.2019-07 ("Annexation No.2019-07") which proposes the
annexation of said territory to the Greater Los Angeles County Vector Control District, is
approved and accepted.
2. ln the fiscal year commencing in the year after the filing of the statement of
boundary change for Annexation No. 2019-07 with the Board of Equalization pursuant to
Government Code sections 54902 and 57204, and every fiscal year thereafter, the following
ratios of the annual property tax growth in Tax Rate Areas shall be transferred to the Greater
Los Angeles County Vector Control District as a result of Annexation No. 2019-07 to the District.
The other affected taxing entities' shares of property tax growth in Tax Rate Areas shall be
adjusted as calculated by the Auditor-Controller of Los Angeles County.
Joint Resolution
Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 2 of 9
Tax
Rate
Area
Annua! Tax
lncrement
Ratio Transfer
to the District
Tax
Rate
Area
Annual Tax
lncrement
Ratio Transfer
to the District
Tax
Rate
Area
Annual Tax
lncrement
Ratio Transfer
to the District
810 0.000141937 864 0.000142479 12141 0.000150471
813 0.000141852 107 16 0 0001 43781 12382 0 0001 43781
818 0.000143781 107 17 0.000142366 12383 0.000142479
822 0.000142366 107 18 0.000142479 12681 0.000148683
839 0.00014'1953 1 0786 0.000145577 12682 0.000148683
842 0 0001 41877 1 0828 0 000145536 12683 0.000136432
3
2019-07.
There shall be no additional transfer of property taxes as a result of Annexation No.
4. lf at any time after the effective date of this resolution, the calculations used herein
to determine initial property tax transfers or the data used to perform those calculations are
found to be incorrect thus producing an improper or inaccurate property tax transfer, the
property tax transfer shall be recalculated and the corrected transfer shall be implemented for
the next fiscalyear.
S/G/VATURES ON FOLLOWING PAGE
REMAINDER OF PAGE LEFT INTENTIONALLY BLANK
Joint Resolution
Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 3 of 9
PASSED, APPROVED AND ADOPTED this
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day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN:
Secretary
Greater Los Angeles County Vector Control District
Signature
Print Name and Title
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Joint Resolution
Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 4 of 9
The foregoing resolution was on the day of , 20-.,
adopted by the Board of Supervisors of the County of Los Angeles and ex officio the governing
body of all other special assessment and taxing districts, agencies and authorities for which said
Board so acts.
CELIA ZAVALA, Executive Officer
Clerk of the Board of Supervisors of
the County of Los Angeles
By
Deputy
APPROVED AS TO FORM
MARY C. WICKHAM
County Counsel
By
Deputy
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 5 of 9
PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN:
Mayor
City of Vernon, California
City Clerk
City of Vemon
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 5 of 9
PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN
Mayor
City of Vernon, California
City Clerk
City of Vemon
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 5 of 9
PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN:
ltlayor
City of Vernon, California
City Clerk
City of Vernon
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 5 of 9
PASSED, APPROVED AND ADOPTED this _ day of
20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN:
Mayor
City of Vernon, California
City Clerk
City of Vemon
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 5 of 9
PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN:
Mayor
City of Vernon, California
City Clerk
City of Vemon
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 5 of 9
PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN:
Mayor
City of Vernon, California
City Clerk
City of Vernon
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 5 of 9
PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN:
Mayor
City of Vernon, California
City Clerk
City of Vernon
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
Page 5 of 9
PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES
ATTEST:
ABSENT:
ABSTAIN
Mayor
City of Vernon, California
City Clerk
City of Vemon
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
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PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN:
Los Angeles County Sanitation District No. 1
Signature
Print Name and Title
Secretary
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
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PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN
Los Angeles County Sanitation District No. 2
Signature
Print Name and Title
Secretary
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
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PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT:
ABSTAIN:
Los Angeles County Sanitation District No. 23
Signature
Print Name and Title
Secretary
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Greater Los Angeles County Vector Control District Annexation No. 2019-07
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PASSED, APPROVED AND ADOPTED this _ day of20- by the following vote:
AYES:
NOES:
ATTEST:
ABSENT.
ABSTAIN
Secretary
Water Replenishment District of Southern California
Signature
Print Name and Title
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Lc.l^t.(, fo6ds C6mt$ls
,or lh. Couhtt of Lor Antdci
Local Alrncy Filmalion Commission for tha County of Los Ant€h5
E0 South Lrkc Avcnue, Suitc 870, P.srdlnt, CA 91101
Telephora (626) 204€5fi, tax: (5?6) 204{50,
APPLICATION TO INITIATE PROCEEDTNG FOR CHANGE OF ORGANTZATTON/REORGANTZATTON
(Pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000,
Division 3, Title 5, Commencing with Section 56000, of the Government Code)
1. LAFCO PROPOSAL DESIGNATION NO.: Annexation # 2019-07 GLACVCD
2. PROPOSAL INITIATED BY:
!dentify the party initiating this proposal {please check one}.
LAFCO
n Public Agency
Name of Public Agency: City of Vernon
Name and title:
a. GLACVCD Annexation
b. Annexation
Attach additional sheets if necessary.
Resolution Date: 1 211512016
Landowner / Registered Voter Petition
Name of Chief Petitioner:
Name of Chief Petitioner:
Name of Chief Petitioner:
This party or parties shall be referred to herein as "the Applicant".
3. DESIGNATED CONTACT PERSON:
Name: Carlos Fandino Title: City Administrator
Address: 4305 Santa Fe Avenue
City: Vernon State: CA Zip Code: 90058
Telephone: 323-583-88'11 x266 E-Mail: cfandino@ci.vernon.ca.us
The Applicont is requested to notify UFCO immediotely of ony chonges in the designoted contoct person.
4. REI-ATED JURISDICTIONAL CHANGES "Affected local Agencies" (Cities and/or Special Districts):
V Detachment
Detachment
SOI amendment
SOI amendment
a
Page 1 of 17
LAFCO
ffi.l Aa.G, Fomrdd Cffimr3rlon
lor lhc C.ort/ ol Lor Antrrrl
e ls the affected territory (any territory for which a change of organization, reorganization, or Sphere of lnfluence
change is proposed) within the Sphere of lnfluence (SOl) of the city or special district into which it is proposed to be
annexed?Yes 7lNo
Note: lf the answer is "No," the Applicant must reguest an SOI amendment (4a-4d, above)
5. LANDOWNERS:
a. Number of landowners within the affected territory: 1,684 parcels
b. lf tess than 5 landowners, list
Name:
Name:
Name:
Name:
Name:
Assessor Parcel Number:
Assessor Parcel Number:
Assessor Parcel Number:
Assessor Parcel Number:
Assessor Parcel Number:
c. Do the boundaries of the roposal conform to existing lines of assessment?
Yes No
lf "No," explain:
d. Does the proposal create any islands or corridors of unincorporated territory?
f v"' El to
lf "Yes," explain:
e Total Assessed Land Value:
$ 4,446,589,926 Tax Roll Year: 2018-19 Date: 6/20/19
5. REGISTERED VOTERS:
Number of registered voters: 96 es of: April 2019
Note: Stote Low defines o proposed chonge of orgonization or reorgonizotion os either "Uninhabited,' in which cose
there ore fewer thon 12 registered voters in the offected territory, or "lnhobited"' in which cose there ore 72 or more
registered voters.
Page 2 of 17
LAFCO
Loo, A3.*, Fo.nrdo.r C6rr{!d6
lor drc ContT ol Lor A4;clc;
7. GENERAL INFORMATION:
a. Location of affected territory
The City of Vernon
Unincorporated Territory known as
b. Unified School District(s) name:
Los Angeles USD - East District
Elementary School District(s) name
Vernon City Elementary
d. High School District(s) name
No High School
e.
or
address:
2151 N. Soto Street, LosAngeles, CA
90032
address:
2360 E Vernon Ave, Vernon, CA 90058
address
Describe the location of the affected territory, including major thoroughfares (freeways, highways, streets, alleys)
that border or traverse the territory, natural features {water bodies, mountain ranges, etc.), man-made features
(existing development, utility corridors, flood/drainage channels or basins, railroad lines, etc.), and any other
characteristics that help identify the affected territory.
The entire city of Vernon. Vernon is located approximately 5 miles South of downtown Los
Angeles and is bounded by Alameda on the West; 25th, 26th and Washington Boulevard on
the North; the 710 freeway on the East; and 52nd, Fruitland and Slauson on the South.
Vernon contains a three miles section of the Los Angeles River.
f. Size of affected territory; 3,301 t acres
Provide a detailed description of the affected territory and existing land-uses, including, but not limited to:
commercial, industrial, multi-family or single-family residential, institutional, active recreational, and/or passive
open space.
The entire City of Vernon is zoned for General lndustry with overlay zoning that allows for
additional uses in limited locations. These additional uses include: Commercial; Emergency
Shelter; Housing; Rendering; Slaughtering; and Truck and Freight Terminal.
c
Page 3 of 17
c.
LAFCO
LcalAaaffif Fom.don C6mhrion
lor thc C,:rfirr of Lo! Ant(l(r
i.
h. Provide a detailed description of the land uses surrounding the affected territory
All land uses will be affected
Provide a detailed description of the topography (flat, sloping, mountainous, etc.) of the affected territory
Generally flat.
j. Provide a detailed description of any natural boundaries (rivers, lakes, streambeds, mountain ranges, etc.) within or
adjacent to the affected territory.
Three mile section of the Los Angeles River
k. Provide a detailed description of any proposed change of use to the affected territory, including any planned
development a nd/or on-going construction.
None
l.Provide a detailed description of any flood control facilities (dams, reservoirs, flood control channels, debris basins,
catch basins, etc.) within or adjacent to the affected territory.
Contains three mile section of the Los Angeles River
m. Explain why the proposal is necessary:
The proposal is necessary to protect public health.
Page 4 of 17
LAFCO
LGrl A6cfty Folrutlo; Cmmrrr,o
foi thc Cc.r,,ry ot L oi Anl.r(1
8. POPULATION AND HOUSING:
a. Current Population: 209 Source: caliromia Depa.lmmt or Finance E-5 Date: May 2018
b. Proposed Population (if development is proposed): N/A
c. Proximity to existing populated areas:
d. Likelihood of significant growth within the next 10 years (please circle one):
no growth modest growth significant growth
e. Likelihood of significant growth within the next 10 years (please circle one)a no growth modest growth significant growth
9. GOVERNMENTSERVICES:
"Government services" refers to governmental services, whether or not those services would be provided by the
local agency or agencies subject to the proposal. lt also includes public facilities necessary to provide those
services.
a.Estimate the present cost and describe the adequacy of government services and controls in the area:
N/A
b. Estimate the probable future need for government services (including public facilities) or controls in the area
N/A
c.lf the proposal includes incorporation, formation, or annexation, what will be the effect of this proposal or
exclusion and of alternative courses of action on the cost and adequacy of services and controls in the proposed
area and adjacent areas?
Minimalto the County
d. lf, as a result of this proposal, increased service demand exceeds the existing capacity, describe what will be done
by the service provider to increase capacity of services:
None
Page 5 of 17
LAFCO
Lc.l Arcfty Fom!(106 Commirls
,or rh. Cou.ty ot tor Ant.ler
e.List any assessments, fees, or other charges to be levied as part of this proposal and/or that may be levied in the
near future:
There will be a direct assessment
f List any Joint Powers Authorities (JPAs) or (equivalent) which may be providing services to the affected territory
and/or surrounding territory:
N/A
10. EFFECTS OF THE PROPOSED ACTION:
a. What will be the effect of the proposed action on adjacent areas?
The proposed action will ensured GLACVCD would be able to provide a comprehensive public
health protection against mosquito-borne illnesses such as West Nile and Zika viruses in Los
Angeles County.
b. What will be the effect of the proposed action on mutual social and economic interests?
None
What will be the effect of the proposed action on the local Bovernmental structure of the County of Los Angeles?
None
d. What will be the effect of the alternative action on adjacent areas, on mutual social and economic interests, and
the local governmental structure of the County of Los Angeles?
Minimalto the County
c.
Page 6 of 17
Lo^t A3.rE, FolEdo.r C6rr*!.ls
tor thc County ol Ld Aat l.r
e. What will be the effect or impact if the proposed action is denied by LAFCO?
lf the proposed action is denied by LAFCO, there would be inadequate mosquito-borne vector
surveillance, control and abatement within the city. Lack of adequate vector control services would
have the potential to cause a major health crisis that may impact Los Angeles County and beyond.
11. OPEN SPACE LAND CONVERSION:
LAFCO
a. Will the proposal result in the conversion of any open-space lands to other uses?
Yes E *o
12. AGRICUTTURAL LANDS:
Willthe proposal have any effect on maintaining the physical and economic integrity of agricultural lands?
[] v"' M *o
a
b. ls there any Prime Agricultural Land within the affected territory?
Yes
c ls any of the land within the affected territory currently utilized for commercial agricultural purposes?
Yes No
d. Was any of the land within the affected territory utilized for commercial agricultural purposes within the last ten
years?
Et"
Yes
13. GENERAT PIAN AND ZONING:
a.Existing General Plan land use designation(s):
The entire City of Vernon is zoned for General lndustry with overlay zoning that allows for additional uses in limited locations These
adclitional uses include: Commercial; Emergency Shelter; Housing; Rendering, Slaughtering; and Truck and Freight Terminal.
b. ls the proposal consistent with the existing General Plan land use designation?
fZv"'No
c. ExistingZoningdesignation(s):
The entire City of Vemon is zoned for General lndustry with overlay zoning that allows for additional uses in limited locations. These
additional uses include: Commercial, Emergency Shelter; Housing; Rendering; Slaughtering; and Truck and Freight Terminal
d. ls the proposal consistent with the existing zoning designation?
M*"
Yes No
PageT ol L7
LAFCO
Leal &oMy Fornitl6 C6ftltaifr
(or rhc CLrultl of L*l An*cl€!
e. ls the proposal within a Specific Plan?
Yes Z *"
f. Existing Specific Plan Designation(s):
Vernon only has a General Plan and does not have any specific Plan Areas
C. ls the proposal consistent with the existing Specific Plan designation?
[Zv"'No
h. lf annexation to a city is proposed, what is the City's General Plan designation of the affected territory?
N/A
i. lf annexation to a c ity is proposed, are the existing land-uses consistent with the City's General Plan designation(s)?
Yes No
j. lf annexation to a city is proposed, what is the City's Pre-Zoning designation of the affected territory?
N/A
k. lf annexation to a city is proposed, is the existing zoning consistent with the City's Pre-Zoning designation(s)?
Ero
a.
Yes
l. ls the proposal consistent with the most recent Regional Transportation Plan adopted by Southern California
Association of Govern ments?
M ves No
14. PLAN TO PROVIDE SERVICES:
Describe services to be extended to the affected territory:
Greater Los Angeles County Vector Control District (GLACVCD)willprovide an enhanced
vector control services that will include disease surveillance, monitoring and control of vectors
as well as public education.
b. Describe the level and range ofthose services to be provided
Range of services would include: Survey of vector population; Vector sampling including mosquitoes, black flies and
non-biting midges; Control strategies - source reduction, biological and chemical control measures, Public education
and outreach to help residents adopt best practices that reduces vector production and disease prevention,
Abatement process to address egregious offenders of the law pertaining to public health.
Page 8 of 17
u
LAFCO
a.
LGrrt ft, Fofrrts Cffibdo
lor 6. Cosry o, L6t Antllar
c.Describe any improvements or upgrades of structures, roads, sewer, water facilities, or other public facilities
associated with this change of organization/reorganization:
No changes
d. How will services be financed?
Direct assessment
15. TIMEIY AVAILABLILW OF WATER SUPPLIES:
How will the proposal impact the timely availability of water supplies adequate for projected needs?
No impact
b. For projects involving a proposed change in land use and/or new development - Please provide a recent will-serve
letter, water supply analysis, or equivalent, from the water provider(s) (wholesaler, retailer, private water company,
etc.) concerning the current adequacy of water supply for the project:
N/A
15. REGIONAI HOUSING NEEDS (only for city proposals):
ldentify how the proposal will affect a city or cities and the County of Los Angeles in achieving their respective fair
shares of the regional housing needs, as determined by the Southern California Association of Governments (SCAG)
N/A
b. Date of most recent approval by the State Department of Housing and Community Development (HCD) of the City's
Housing Element:
N/A
17. ENVIRONMENTAL JUSTICE:
Government Code Section 55658(p) defines environmentaljustice as "the fair treatment of people of all races,
cultures, and incomes with respect to the location of public facilities and the provisions of public services."
a.
Page 9 of 17
LAFCO
Ld.tA. E, Fodddr Cmlt.ad!
tor tho County of Lor Aagclo
a. ldentify how the proposal will promote environmental justice:
Annexation will close the criticalvector control service gap that exist around the services
provided by GLACVCD within the 35 cities and the unincorporated areas of Los Angeles
County. This will also promotes the mission of "Everyone deserves to live in a clean, healthy
environment".
18. DISADVANTAG ED UNINCORPORATED COMMUNITIES (DUCs! :
LAFCO maintains maps of all DUC's within Los Angeles County on the "Disadvantaged Unincorporated
Communities" section of LAFCO's website. Please consult these maps to determine if there are DUCs within or
adjacent to the affected territory that is the subject of your proposal,
ls the affected territory within a DUC?No n YES Give general location of DUC:
The DUC is located within the Los Angeles Basin. See
attached map.
b. ls the affected territory adiacent to a DUC?
NO YES Give general location of DUC
19. BONDED INDEBTNESS:
a. Do the whose boundaries are being changed have any existing bonded debt?
YES V NO
b. willthe proposal area be liable for payment of its fair share of this existing debt?YEs V No
ln the case of detachment requests, does the detaching agency propose that the subject territory continue to be
liable for existing bonded debt?YES M *o
c.
Page 10 of 17
a.
tr
a tr
LAFCOLc.l Aa.fiy fomdon C6n{$lon
lor thc County ol la Aa;alcr
20. CALIFORNIA ENVIRONMENTAT qUAtlW ACT (CEQA) Compliance:
a. Check one
Categorical Exemption / Statutory Exemption
CEQA Guideline Section: 15319 and 15320
Negative Declaration (ND)
Mitigated Negative Declaration (MND)
Environmental lmpact Report (ElR)
b. ldentify the Lead Agency which adopted a CEQ,A clearance for the proposal: Ci$ of Vernon
c,Date Lead Agency adopted the CEQA clearance for the proposal: 1211512016
d. Submit complete copies of CEQA compliance documents
e Submit complete copies of any Notice of Exemption (NOE) or Notice of Determination (NOD).
21. CIW PLAN FOR MUNICIPAL SERVICES (only for city proposals):
Municipal Service Current Service Provider
AnimalControl
Fire & Emergency Medical
Flood Control
Library
Mosquito and Vector Control GLACVCD
Park and Recreation
Planning
Police
Road Maintenance
Solid Waste
Street Lighting
Water
Wastewater
Proposed Service Provider
GLACVCD
Page 11 of 17
V
LAFCO
LGrl Arancy Fomrtid Commiitl@
t6r (h. aa{ihrtr ol to{ A^rrJc!
Animal Control
Describe services to be extended to the affected territory:
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities:
N/A
How will services be financed?
N/A
Fire and Emergency Services
Describe services to be extended to the affected territory
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities:
N/A
How will services be financed?
N/A
Flood Control
Describe services to be extended to the affected territory:
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities:
N/A
How will services be financed?
N/A
Page 12 of 17
LAFCO
LcJAtffi, Folfldd C6sl$ld
tor !h. Counv ot LdA^E lor
Library
Describe services to be extended to the affected territory
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities:
N/A
How will services be financed?
N/A
Mosquito & Vector Control
Describe services to be extended to the affected territory:
Greater Los Angeles County Vector Control District (GLACVCD)will provide an enhanced vector control
services that will include disease surveillance, monitoring and control of vectors as well as public education
Describe the level and range of those services to be provided:
and chemicalconlrol measures: Public eduetim and outresdr to help residents adopl best pradies that redues reclor productim ild disase preventlm: Abalcmst process to
address egregious ofiendeB ol th€ law pertaining to pLolic health
Describe any improvements or upgrades or transfers of facilities:
Annexation by GLACVCD will improve vector control services within the city and also help eliminate any service gaps that
may exist within the sunounding communities
How will services be financed?
Direct assessment
Parks and Recreation
Describe services to be extended to the affected territory:
N/A
Describe the level and range of those services to be provided
N/A
Describe any improvements or upgrades or transfers of facilities:
N/A
How will services be financed?
N/A
Page 13 of 17
LAFCO
'*' tT.':'j::i1,:Tfl ::il
Planning
Describe services to be extended to the affected territory:
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities:
N/A
How will services be financed?
N/A
Police
Describe services to be extended to the affected territory:
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities:
How will services be financed?
N/A
Road Maintenance
Describe services to be extended to the affected territory:
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities:
N/A
How will services be financed?
N/A
Page 14 of 17
LAFCO
'
*' T,T;.':fi :::,'.Tffi:il
Solid Waste Disposal
Describe services to be extended to the affected territory:
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities:
N/A
How will services be financed?
N/A
Street [ighting
Describe services to be extended to the affected territory:
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities
N/A
How will services be financed?
N/A
Water
Describe services to be extended to the affected territory:
N/A
Describe the level and range of those services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities:
N/A
How will services be financed?
N/A
Page 15 of 17
LAFCOL*rl A.atr, Foiiltl,on Cmmlrl,oa
ld tha Cdtt/ of ld A.TaI"r
Wastewater
Describe services to be extended to the affected territory
N/A
Describe the level and range ofthose services to be provided:
N/A
Describe any improvements or upgrades or transfers of facilities;
N/A
How will services be financed?
N/A
INDEMNIFTCATION / LEGAL DEFENSE
As a condition to the Local Agency Formation Commission for the County of Los Angeles' (LAFCO's) evaluation
of the Applicant's proposal, the Applicant and, if different, the Real Party ln lnterest
(i.e., the landowner) City of Vernon hereby warrant, represent, and agree
to defend, indemnify, hold harmless LAFCO and its agents, officers, commissioners, and employees from any
claim, action, or proceeding against LAFCO or its agents, officers, commissioners, and employees, relating to
or arising out of LAFCO's evaluation or processing of the proposal, including, but not limited to, any action to
attack, set aside, void, annul, enjoin, or compel LAFCO's approval, disapproval, evaluation, or processing of the
proposal, which indemnification obligation includes, but is not limited to, Applicant/Real Party ln lnterest being
required to pay for any costs and reasonable attorneys' fees incurred or anticipated to be incurred by LAFCO
in connection with any such action. This indemnification obligation shall not include intentional or willful
misconduct on the part of LAFCO, but shall include passive and/or concurrent active negligence by LAFCO.
Applicant/Real party tn lnterest agree that LAFCO has the right to appoint its own counsel for its defense and
conduct its own defense in the manner it deems in its best interest, and that such actions will not relieve or
limit Applicant,s/Real party ln lnterest's obligations to indemnify and reimburse defense costs. At the
discretion of the Executive officer, a deposit or deposits of funds by the Applicant may be required in an
amount or amounts sufficient to cover any anticipated or incurred litigation costs.
Page 16 of 17
LAFCOLerl Ajcy Formdo Cffatrlo
lor thc Corty ol Lor Ar6clcr
PROPOSAT CERTI FICATION
By my signature below, I hereby certify my understanding that:
o l/We are authorized to make these certifications and file this Proposal with LAFCO on behalf our city, special
district, corporation, landowner, and/or other party filing said Proposal, and l/we will provide written evidence
of same to IAFCO upon request.
o lt is the responsibility of the Applicant to substantiate this Proposal.
o There is no guarantee, expressed or implied, that any Proposal will be approved by LAFCO.
o Each matter must be carefully evaluated by LAFCO staff.
o LAFCO staff's recommendation may change during the course of the review based on the information
presented.
o A public hearing may be required, the proposal may be subject to a "protest" process, and the proposal may be
subject to an election.
o The environmental review (pursuant to the California Environmental Quality Act) associated with the submittal
of this application is preliminary, and, after further evaluation, additional information, reports, studies,
applications, andlor fees may be required.
o The required map and geographic description must conform to the "lnstructions of Completing Maps and
Geographic Descriptions," to the satisfaction of the Executive Officer.
. lf my proposal is denied, I amlWe are not entitled to any refund of fees paid,
. Submitting inaccurate or incomplete information may result in delays or denial of my Proposal.
o The information I have provided in this Proposal, including all attachments and supplemental information
provided, is accurate and correct to the best of my knowledge, subject to penalty of perjury.
o This proposal will not be scheduled for consideration by the Commission (LAFCO) until all required documents
are provided, to the satisfaction of the Executive Officer.
o l/We have reviewed and agree to the lndemnification/Legal Defense terms, above.
I have read and understand the foregoing, and agree to the submittal of this Proposal.
REAL PARTY IN INTEREST
Ir4 ,t
Signature/Date
ClEy of Vernon
Name of Applicant
Carlos Fandino, clry Admlnisrraror
Name & Position of Person Signing
(if different from Applicant)
A
rah Harr ngton,
Signature/Date
Name of Real Party ln lnterest
Name & Position of Person Signing
(if different from Real Party ln lnterest)
^ry\,E TO FOR}I:
Byun,
Deputy Clty AttorneyInterlm Clty Clerk
Page t7 of 17
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D i s a dv a nta g ed U n i n co rP o rated
Communites (DUCs)
Los Angeles Basin
lwr^!iii-*-31.sol;Egax.- -E=-sMroe
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Ta#rbry IAFCOOUCB - L€ss than $48,875
'l or S0% ot Meden- xocrhold lncornr
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